3 min read
Pakistan’s cotton sector continues to struggle, with the latest figures from the Pakistan Cotton Ginners Association (PCGA) pointing to near-stagnant production and a rapid slowdown in ginning activity.
Provisional data released by the PCGA shows that 5.49 million bales of cotton reached ginning factories nationwide by January 15, 2026- only 7,000 bales more than arrivals recorded during the same period last year.
Punjab accounted for 2.58 million bales, reflecting a 4 per cent decline, while Sindh received 2.91 million bales, showing a 4 per cent increase compared to last season.
Ginning Factories Shut at Faster Pace
Industry activity has weakened sharply in recent weeks. At present, only 127 ginning factories remain operational across the country, 91 in Punjab and 36 in Sindh.
PCGA officials said that in just the past two weeks, 46 ginning units in Sindh and 50 in Punjab became non-operational, a closure rate well above market expectations.
Textile mills have so far purchased 4.84 million bales, while exporters bought 176,000 bales. Around 479,000 bales are still available with ginners.
Cotton Prices Climb on Limited Supply
Cotton prices have moved sharply upward amid shrinking availability of quality lint. Over the past week, prices rose by around Rs300 per maund, reaching nearly Rs16,500 per maund.
Market participants attribute the increase to limited domestic supply and rising international prices of cotton yarn and fabric.
Shift From Production to Consumption
Cotton Ginners Forum Chairman Ihsanul Haq said Pakistan’s cotton output has remained almost 50 per cent below annual targets for several consecutive years, but warned that the crisis has now expanded beyond production.
He blamed the unchecked expansion of sugarcane cultivation in traditional cotton zones for shrinking cotton acreage and declining crop quality, citing environmental pollution from sugar mills as a contributing factor.
As a result, many textile exporters are increasingly dependent on imported high-quality cotton, adding pressure on the country’s foreign exchange reserves.
Call for Crop Zoning Enforcement
Haq urged federal and provincial governments to strictly enforce crop zoning laws, arguing that policy enforcement would be more effective than costly cotton revival schemes.
He called for a complete ban on sugarcane cultivation and new sugar mills in cotton-growing areas, saying this could help restore national cotton production to around 15 million bales.
Industry Under Severe Stress
According to industry estimates, more than 150 textile units have shut down completely, while many others are operating at partial capacity. Hundreds of ginning factories have also fallen idle.
Haq described the sector as being “on a ventilator,” warning that without immediate relief, the broader economy could suffer further setbacks.
He highlighted high electricity and gas tariffs, steep borrowing costs, multiple taxes, and heavy regulatory intervention as key factors eroding export competitiveness.
Calling the situation the worst economic crisis in the industry’s history, he urged policymakers to prioritize industrial revival, arguing that sustainable economic growth would do more to reduce unemployment and poverty than short-term cash assistance.
