KARACHI: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has raised serious concerns over the sharp decline in cotton production, which has significantly impacted the country’s textile exports.
Speaking at a press conference, Senior Vice President of the FPCCI Saqib Fayyaz Magoon highlighted that Pakistan’s cotton production has plummeted from 14 million bales to just five million bales over the past decade. He described the situation as alarming and called for immediate intervention.
Magoon pointed out that the shortfall has compelled Pakistan to import $2-3 billion worth of cotton annually, adding undue pressure on the country’s already precarious foreign exchange reserves.
He said that the production crisis poses a severe threat to Pakistan’s textile export sector, which heavily depends on domestically grown cotton. Criticising the taxation disparity, Magoon noted that local cotton is subject to sales tax, while imported cotton enjoys tax exemptions. This imbalance, he argued, discourages local farmers from cultivating cotton.
To address the issue, Magoon urged the government to create a level playing field for domestic and imported cotton. He also called for the introduction of a government-supported pricing mechanism to shield local farmers from market volatility and to encourage higher production.
Vice President of the FPCCI Asif Inam underscored the lack of research and innovation in cotton production as a key hurdle. He urged policymakers to promote modern farming techniques and incentivise large-scale cultivation of cotton to address the shortfall.
Chairperson of the Task Force on Agriculture Sham Lal Manglani highlighted that the area under cotton cultivation has halved in recent years, as farmers increasingly opt for more profitable crops like rice and sugarcane. This shift, he explained, has further worsened the production crisis.
Chairperson of the Pakistan Cotton Ginners Association Dr Jassu Mal mentioned the untapped potential of cotton to generate substantial foreign exchange. However, he warned that Punjab alone is facing a shortfall of four to five million bales compared to demand, underlining the urgency of addressing the issue.