Shahid Rashid Butt, a prominent economist and former president of the Islamabad Chamber of Commerce and Industry (ICCI), warned that the rapid decline in cotton production poses a serious threat to Pakistan’s economy. While Prime Minister Shehbaz Sharif’s attention to the issues of farmers and the textile sector is commendable, mere announcements are not enough. Concrete, collaborative, and actionable measures are crucial to revive the cotton sector.
Butt appreciated the government’s move to set a support price of Rs. 8,500 per 40 kg for cotton and the formation of a highlevel committee. However, he stressed that without swift implementation, these measures would prove futile.
In a statement, Butt revealed that cotton production has plummeted by over 60% in the past decade, falling from 14 million bales to a mere 5.5 million bales. This has forced Pakistan to rely on foreign cotton, depleting precious foreign exchange reserves and significantly impacting export competitiveness. He predicted that cotton imports for FY 202425 would reach 5.4 million bales, costing $1.9 billion, further straining the current account and foreign exchange reserves.
With cotton and textiles accounting for 60% of Pakistan’s exports and 11% of its GDP, this situation jeopardizes not only national financial stability but also the livelihoods of millions of farmers, laborers, and manufacturers. The decline in production has led to the closure of over 60% of ginning plants, increasing unemployment.
Butt identified poor quality seeds, climate change, rising production costs, increased sugarcane cultivation, and inconsistent policies as the primary factors behind the cotton shortfall. He also pointed to the failure of agricultural research institutions to provide highquality seeds domestically.
Recent experiments with hybrid cotton in the public and private sectors offer a glimmer of hope. Butt urged the government to promote seed improvement and agricultural research, support farmers in reducing production costs, and enforce dedicated cotton zones. Incentives are crucial to revive ginning and spinning mills and boost textile exports. Implementing modern techniques, smart farming mobile applications, and drone technology can familiarize farmers with advanced production methods.
Butt emphasized that this issue is no longer just an agricultural problem but a national financial emergency, demanding immediate and focused action.