LAHORE: Although the new cotton ginning season began unusually early in the second week of May—marking a first in the country’s history—serious concerns are emerging about a potential economic crisis in the cotton sector.
These concerns are largely driven by the tax-free import of raw cotton and yarn, which threatens the sustainability of the local industry.
Industry experts warn that during the 2025-26 crop year, the cotton ginning and textile sectors might be forced to run at below 50% of their production capacity. Such a sharp decline could lead Pakistan to resume importing billions of dollars’ worth of cotton, in addition to the already high edible oil import bill.
Currently, three ginning factories have resumed operations in the Punjab cities of Khanewal and Burewala. Additionally, one or two ginning units in Tando Adam, Sindh, are expected to begin functioning from May 25.
Initial trade deals for the new cotton are being struck at rates between Rs17,000 and Rs17,500 per maund, while fresh Phutti (seed cotton) is being sold for Rs8,300 to Rs8,500 per 40kg.
For the first time in nearly five decades, the federal government has authorized the import of cotton seeds. However, some senior officials and private seed firms had already carried out unsuccessful trial cultivations using cotton seeds from countries such as China, Australia, the United States, and Brazil in various regions of Pakistan.
These failures are largely blamed on the lack of enforcement of crop zoning regulations, which has caused environmental damage that negatively impacts cotton cultivation.
According to Cotton Ginners Forum Chairman Ihsanul Haq, the main problem for Pakistan is not the production of cotton, but rather its consumption. Despite recording the country’s second-lowest harvest—just 5.5 million bales in the 2024-25 crop year—around 200,000 to 250,000 bales of unsold cotton are still stockpiled at ginning factories. Furthermore, ginners are awaiting payments worth millions of rupees from textile mills for cotton sold on deferred payment terms.
