Pakistan's Cotton Crisis Deepens as Imports from US and Brazil Surge

Pakistan's cotton crisis deepens as imports from US, Brazil surge: Report

New Delhi, July 23

The report from Bangladesh-based Daily Sun said Pakistan's cotton and textile industry has moved "from decline to dependence".

The import dependency increased after a sharp decline in production, with recent estimates placing output at roughly 5 million bales, well below levels that once made Pakistan self‑sufficient.

Shrinking cultivation area, poor seed quality, climate stress, pest pressure and farmers prioritising crops such as sugarcane, maize and rice led to the sharp fall in cotton production.

Textile manufacturers, who relied on domestic cotton for much of their raw material needs, have started replacing it with imported lint and consequently urged the government for tax relief.

"Producers have pressed for tax relief, lower energy tariffs and reduced levies, arguing that the sector cannot absorb the cost of import dependence and weak domestic output at the same time," the report said.

The report highlighted the scale and timing of imports, saying Pakistan's huge bale import from the United States was almost the entire quantity sold in the country within a week and that too before the local harvest.

"That is not a normal seasonal adjustment; it is evidence that the country's cotton supply chain is now structurally tied to foreign markets," the media house said.

It warned that growing dependence on cotton imports risks widening the current account deficit and undermining the competitiveness of Pakistan's export‑oriented textile industry.

"As the cotton area contracts, mills lose domestic supply, imports increase, and the foreign exchange burden rises - a cycle that now defines the sector," the report noted, blaming poor seed regulation, uneven institutional support, weak extension services and inconsistent pricing signals for the fall in domestic production.

— IANS