FPCCI Policy Advisory Board Chairman Mian Zahid Hussain has fully supported the demands of cotton ginners, saying that cotton is the backbone of the country’s agricultural economy and exports, the sharp decline in its production has caused severe damage to the Pakistani economy.
He said that sugar mills operating in cotton zones should be shifted immediately, sales tax on cotton and its by-products including cotton seed and cotton seed cake should be completely abolished, fixed taxes included in electricity bills should be abolished and the Cotton Control Act should be fully implemented.
The government should start work on the ‘Grow Cotton, Save the Economy’ campaign proposed by the PCGA on an emergency basis and grant industry status to the ginning sector so that it can be provided with electricity and gas at competitive industrial rates.
He said that according to a recent report by the US Department of Agriculture, the total cotton production in Pakistan in the year 2026-2027 is likely to be only 4.9 million bales, while the production target was 9.6 million bales. The annual requirement of the local spinning industry is 10 million bales. To meet this huge shortfall, Pakistan will have to import more than 5 million bales, worth approximately $2 billion or Rs600 billion. Pakistani News
He said that due to the decrease in domestic cotton production, this huge amount will be paid to foreign farmers instead of Pakistani farmers, which will not only lead to economic exploitation of local farmers but will also put an additional burden of $2 billion on the country’s already stressed foreign exchange reserves.
He said that in the fiscal year 2024-2023, the domestic production of cotton was 7 million bales and imports remained at 3.2 million bales, however, in the fiscal year 2024-25, production fell to 5 million bales, due to which imports increased to 6.1 million bales.
According to him, in the fiscal year 2026-2025, production also remained at 5.6 million bales and the volume of imports remained at 6 million bales. He said that the main reason for the continuous decline in cotton production is the decrease in cotton production area by about 33% in the last 10 years, due to which Pakistan’s GDP has remained frozen at $452 billion and domestic exports at $30 billion, while on the other hand, our population is increasing by 6 to 7 million people annually, meaning we are giving birth to a country equal to Singapore every year.
Mian Zahid Hussain said that the cost of industrial production in Pakistan is the highest on a regional basis, which has severely affected our ginning, spinning, and textile industries. At present, industries in neighboring countries are being provided with electricity at 8 cents per unit, while in Pakistan the same electricity is being provided at 14 cents per unit.
He said that fixed charges included in electricity bills and exorbitant taxes have made business competition impossible. In addition, policies such as sales tax imposed on cotton, cottonseed cake at the local level have further distorted the market, which should be abolished immediately.
Mian Zahid Hussain said that allowing the establishment of sugar mills in cotton zones was a historical and strategic mistake, which has caused irreparable damage to the area under cotton cultivation and production capacity.
He supported the PCGA’s demand that sugar mills established in cotton zones be immediately relocated and the Cotton Control Act be fully implemented in its spirit, the main objective of which is to protect cotton zones from the intrusion of other crops and unrelated industries, provide legal protection to the supply of quality and pure seeds in the market, and restore the quality of the cotton crop to international standards by protecting it from diseases and adulterated pesticides.
He warned that if government agencies fail to provide immediate relief to the cotton ginners and textile industry and ensure access to modern climate-friendly seeds to farmers, other countries will snatch Pakistan’s remaining share in the global market and a new wave of unemployment will arise in the country.