Pakistan’s cotton sector, once the backbone of the agricultural economy, now stands at a critical juncture. Declining productivity, deteriorating quality and deep-rooted systemic challenges are threatening its future. Without a cohesive and long-term national cotton policy, revival may become increasingly difficult.
Recent figures for the 2025–26 season reflect a sharp decline in performance. A report released by the Pakistan Cotton Ginners Association (PCGA) on 15 July 2025 has raised serious concerns. It warns that continued inaction will not only weaken Pakistan’s largest export industry, the textile sector, but also significantly increase the national import bill.
Several interlinked factors have contributed to this ongoing crisis. In Sindh, water shortages, erratic weather patterns and widespread whitefly infestations have severely affected crop health. Compounding these challenges are issues such as price uncertainty, the inactive role of the Trading Corporation of Pakistan (TCP), and the imposition of an unjustified 18 percent General Sales Tax (GST) on raw cotton and its by-products. This taxation policy places an undue burden on farmers and discourages activity in local markets.
Meanwhile, intense and unseasonal monsoon rains have further worsened the situation. Waterlogging in cotton fields and high humidity are expected to lead to increased pest attacks, compromising both crop quality and yield. This creates uncertainty in prices and may disrupt the industrial supply chain, ultimately delaying export commitments.
A major obstacle to effective policymaking is the lack of consistent and reliable national data. Various institutions including the PCGA, Cotton Crop Reporting Service (CCRS) and the Pakistan Bureau of Statistics (PBS) publish separate figures, often with significant discrepancies. This fragmentation of data hinders timely and evidence-based decision-making, highlighting the urgent need for a centralized and transparent reporting system.
The persistent delay in the issuance of Statutory Regulatory Orders (SROs), particularly those concerning imported cotton, is another pressing concern. Such delays create confusion for manufacturers, affect production planning and undermine investor confidence. Timely issuance of SROs is crucial to maintaining policy continuity and supporting the textile sector’s operational needs.
Another area of concern is the stalled restructuring of the Pakistan Central Cotton Committee (PCCC), the country’s leading cotton research institution. According to the Cabinet Division, PCCC was scheduled to merge with the Pakistan Agricultural Research Council (PARC) by 30 June 2025. However, the lack of progress on this front has left the organization in a state of uncertainty. This delay not only jeopardizes research continuity but also demoralizes the scientists, experts, and support staff involved.
Despite the seriousness of the situation, the policy response remains slow and fragmented. While seed improvement is undoubtedly important, it cannot address the broader crisis unless accompanied by a comprehensive, farmer-focused and industry-supported national cotton policy.
Cotton is more than just a crop. It sustains the economy, supports millions of rural livelihoods and powers the country’s largest industrial sector. Without strong foundations in cotton, the entire value chain becomes fragile. Policymakers must act decisively. A clear, actionable and long-term policy framework is not a luxury, it is a necessity.
Failure to act will deepen stakeholder mistrust. Farmers, researchers, and industrialists alike will continue to suffer. In the absence of coordinated national efforts, we risk being left with little more than reports and regrets.
Copyright Business Recorder, 2025