Pakistan’s cotton sector demonstrated a notable recovery during the 2025 season, with national cotton arrivals rising sharply on the back of improved crop inflows and steady domestic demand, according to the Pakistan Business Forum (PBF).
In a statement issued on Saturday, the Forum said consolidated data up to December 31, 2025 showed cotton arrivals reaching approximately 5.43 million bales, marking an increase of nearly 18 percent compared with about 4.55 million bales recorded during the corresponding period last year.
PBF South Punjab Chairman Malik Talat Suhail attributed the improvement primarily to higher supplies from key cotton-producing regions of Punjab, while arrivals from Sindh remained largely unchanged. He noted that the stronger inflow from Punjab played a critical role in lifting overall national arrivals during the season.
The increase in cotton arrivals also translated into enhanced ginning and pressing activity across the country. Despite the higher volumes, factory-held stocks remained below 500,000 bales, suggesting that most of the crop was being absorbed by domestic textile and spinning units. Exports of raw cotton remained limited throughout the season, reflecting a cautious strategy aimed at safeguarding local availability for the industry.
However, the PBF cautioned that despite the positive momentum, domestic cotton production continued to fall short of the country’s requirements. Pakistan’s textile and spinning sector consumes an estimated 14 to 15 million bales of cotton annually to operate at optimal capacity, far exceeding current local output.
Malik Talat Suhail said that even with the improved performance in 2025, domestic production met only a portion of total demand, leaving the country heavily reliant on imported cotton. He added that this persistent supply gap continued to exert pressure on manufacturing costs and foreign exchange reserves.
The Forum stressed that bridging the production shortfall would require sustained and long-term policy interventions rather than temporary measures. Enhancing per-acre yield was identified as a critical priority, as Pakistan’s cotton productivity remains well below its potential when compared with regional and global benchmarks.
According to the PBF, improved access to certified quality seed, stronger pest management practices, and better water-use efficiency could significantly boost output without the need to expand the cultivated area. These measures, it said, would be crucial in improving the sector’s competitiveness and resilience.
The Forum also called for steps to ease cost pressures faced by cotton growers. It suggested revisiting the existing 18 percent sales tax on cottonseed and oil cake, noting that these by-products represent an important source of supplementary income for farmers.
