Cotton, often referred to as “White Gold,” plays a vital role in Pakistan’s economy. It is not only a key contributor to the national GDP but also serves as a source of livelihood for millions of farmers, laborers, and rural women. However, over the past decade, cotton production in Pakistan has witnessed a continuous decline. The textile sector is facing a shortage of raw materials, and reliance on imports is increasing, negatively impacting the national economy and undermining agricultural self-sufficiency.
One of the primary reasons behind this decline is the absence of an effective agricultural policy. Other contributing factors include poor-quality seeds, climate change, lack of water availability, insufficient investment in agricultural research, and the absence of incentive-based policies for cotton cultivation. In developed countries, modern biotechnology, genetic improvement, and digital agriculture are used by research institutions to enhance both the yield and quality of cotton. In contrast, Pakistan lacks a serious and strategic approach in this area.
Historically, Pakistan achieved record cotton production of 12.8 million bales in 1991–92, 15 million bales in 2004–05, and 14.6 million bales in 2014–15. However, due to flawed government policies, production fell drastically to just 5.5 million bales last year. Ideally, the area under cultivation and overall yield should have increased over time. When farmers do not receive fair compensation for their crops, they shift to alternative crops. As a result, the government is compelled to spend billions of dollars in foreign exchange to meet domestic cotton requirements through imports.
Adding to the disparity, local cotton is subjected to an 18% GST, while imported cotton is exempt from such taxation—highlighting a clear policy inconsistency. Moreover, the government does not announce a minimum support price for cotton. Farmers are forced to sell their crop at low prices, only for prices to increase later when the market manipulators acquires large stocks.
In addition, the high cost of agricultural inputs has become a major concern. To ensure fiber security, increasing domestic cotton production is essential, as the country’s textile industry depends on the availability of local raw materials. If research institutions are made functional, and farmers are provided with high-quality seeds and modern production technologies, along with a comprehensive policy framework, Pakistan can not only meet its domestic needs but also export surplus cotton to earn valuable foreign exchange.
However, this requires the government to recognize the global competitive challenges facing Pakistan’s cotton sector. Countries like the United States, Brazil, Australia, and those in Central Asia are posing stiff competition in international markets. With strong governmental support, modern research, and subsidies, farmers in these countries have significantly reduced their production costs. In contrast, Pakistani farmers lack both governmental support and access to advanced technology.
Therefore, it is imperative for the government to formulate a comprehensive cotton production policy involving all stakeholders. To remain competitive in export markets, modern marketing strategies and production reforms aligned with international standards must be introduced. Farmers are moving away from cotton due to low prices, delayed payments, and exploitation in local markets—factors that may lead to a severe shortage of local raw materials in the future.
Timely measures are still possible. By raising farmer awareness about modern production technologies, ensuring water availability, and implementing a stable pricing system, cotton can once again become a profitable crop. At the same time, agricultural research must be prioritized. Due to lack of funding and flawed policies, institutions like the Pakistan Central Cotton Committee have become ineffective, hindering the development of new and improved cotton varieties and negatively affecting overall yield.
If research institutions are upgraded to meet international standards and farmer-friendly policies are introduced to boost cotton production, not only will Pakistan’s textile industry thrive, but new employment opportunities will be created, and the national economy will be strengthened.
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