With domestic production facing significant setbacks, Pakistan’s cotton imports are projected to rise by nearly fourfold to $1.9 billion in FY’24-25. According to Arif Habib Ltd, (AHL), local cotton production is expected to reach 6 million bales, creating a demand for 5.4 million bales through imports. This would be a dramatic rise from last year’s imports of 1.2 million bales (205,000 tons), valued at $448 million.
As per a report by Pakistan Cotton Ginners’ Association, the country’s cotton harvests declined by 37 per cent during July-Oct’24 to 4.29 million bales from 6.79 million bales in the same period last year. This decline was attributed to poor economics for farmers and delays in planting. Factors such as high inflation, increased costs, and limited resources have affected farmers' ability to invest in cotton cultivation.
Historically, Pakistan’s textile industry requires between 15-16 million bales annually to meet the demand for yarn and finished textile products, including garments for export. However, reduced global demand for textile exports due to high inflation has cut local consumption to around 12 million bales.
AHL notes, the decline in cotton production has been exacerbated by the failure of local policies, including the abrupt changes in wheat procurement in Punjab, which left farmers financially strained and unable to afford essential inputs like seeds and fertilizers. Delays in payments from textile mills to farmers have further hindered cotton sowing in the current season.
In addition to the domestic challenges, cotton prices in Pakistan have declined by Rs 1,000-1,500 over the past week, with prices now ranging from Rs 16,700 to Rs 18,200 per 40 kg.
Pakistan remains the largest buyer of cotton globally, purchasing 72,200 bales in FY25, according to the US Department of Agriculture. In response to the challenges, Naseem Usman, Former Chairman, Karachi Cotton Association, advocate the establishment of an apex committee to address cotton production issues, improve yield, and implement policies to boost domestic output and exports in the long term.
