Pakistan’s Cotton Sector in Crisis Amid Conflicting Harvest Reports

Pakistan’s Cotton Sector in Crisis Amid Conflicting Harvest Reports

 Lahore, 9 August 2025 Report Ali Imran Chattha Pakistan’s cotton industry is facing one of its most severe crises in decades, with conflicting reports over this year’s harvest deepening uncertainty. While Punjab’s Agriculture Department claims a strong recovery with *609,000 bales* harvested by late July—more than double the *Pakistan Cotton Ginners Association (PCGA)*’s estimate—industry insiders warn of persistent challenges, including tax-free imports, unpaid dues, and climate risks that threaten long-term viability. The season began with grim forecasts, as analysts projected production could drop below half of total capacity, forcing the country to spend billions on cotton and edible oil imports. Despite an early start to ginning, only a few factories in Punjab and Sindh were operational by May, with new cotton selling at *Rs17,000–17,500 per maund*. The government’s decision to allow cottonseed imports for the first time in 50 years—a move prompted by past crop failures—has done little to ease concerns, given weak enforcement of crop zoning and recurring environmental stresses.

 The Punjab government attributes its optimistic harvest figures to expanded field services, early planting on *781,000 acres, and private-sector partnerships. However, ginners and textile mills remain sceptical, pointing to **200,000–250,000 unsold bales* from last season and persistent delays in payments. The widening gap between official data and ground realities has raised questions over whether the reported uptick will translate into meaningful economic relief. With tax-free imports undercutting local prices and extreme weather threatening yields, the sector’s recovery remains fragile. Industry leaders are urging the government to enforce real-time production monitoring, accelerate subsidy disbursements, and reassess trade policies to prevent further destabilisation. Without urgent intervention, Pakistan’s cotton-dependent textile industry—a cornerstone of its economy—could face even deeper turmoil in the coming months.