Lahore, March 4, 2025 – Pakistan’s cotton production crisis has worsened, exerting immense pressure on the national economy, textile industry, and millions of farmers dependent on cotton cultivation. The Pakistan Cotton Ginners Association (PCGA) has reported a drastic decline in cotton output, highlighting a serious challenge for the sector.
According to the latest PCGA report released on February 28, cotton arrivals at factories stood at 5.524 million bales, reflecting a 34.17% decline compared to last year’s 8.393 million bales. Sajid Mahmood, Head of Technology Transfer at the Central Cotton Research Institute in Multan, emphasized that multiple factors, including climate change, water shortages, rising input costs, and policy deficiencies, have contributed to this alarming situation. The crisis has led to a severe raw material shortage for the domestic textile sector and is expected to push cotton imports to an estimated $5 billion, increasing financial strain on the country.
Punjab, the largest cotton-producing province, has witnessed an unprecedented drop in production. Last year, Punjab produced 4.778 million bales, but this year the figure has plummeted to 2.477 million bales, marking a 48.16% decline. Sindh also experienced a downturn, with cotton production falling from 3.614 million bales to 3.046 million bales, a 15.71% decrease. Balochistan, however, remained relatively stable in its output.
The textile industry remains the primary buyer, acquiring 92.55% of total cotton produced, while exporters and traders purchased only 46,700 bales, indicating reduced global demand for Pakistani cotton. The unsold stockpile has surged by 75.37%, further signaling a sluggish market. Monthly arrivals have also sharply declined, from 43,537 bales last year to 13,852 bales this year, exacerbating fears of continued production drops. Additionally, the number of operational ginning factories has reduced to 39, further highlighting the impact of the crisis on the cotton processing sector.
One of the critical issues behind Pakistan’s declining cotton production is the lack of investment in cotton research and development (R&D). Farmers lack access to improved seed varieties and modern technology, while the absence of a guaranteed support price has driven many to cultivate alternative crops. Urgent interventions are required to restore cotton production.
To revive Pakistan’s cotton sector, policymakers must introduce incentives for farmers, tackle water shortages, and enhance PCGA’s role in research initiatives. Merging institutions like the Pakistan Central Cotton Committee with the Pakistan Agricultural Research Council could create a unified cotton research body. Additionally, announcing a minimum support price for cotton is essential to secure farmers’ financial stability and encourage them to continue cultivating the crop. Without immediate and effective measures, the crisis will further threaten not only the textile industry but also Pakistan’s broader economy. A comprehensive policy framework is necessary to rescue the cotton sector from further decline.