Pakistan’s textile industry has begun importing substantial quantities of cotton from the United States and Brazil ahead of the domestic ginning season. This move underscores a critical shortage of local cotton supplies and has pushed prices to unprecedented levels.
Industry data reveals that Pakistani textile mills purchased more than 206,000 bales of cotton from the US in the past week alone, representing nearly the entire volume of American cotton sold internationally for the 2026-27 season during that period. Concurrently, imports from Brazil have surged as manufacturers strive to secure sufficient raw materials for the country’s textile production.
In a significant development, this unexpected rise in cotton imports is projected to substantially increase Pakistan’s foreign exchange expenditure for the current fiscal year. Analysts warn that the combined import costs for cotton and edible oil may reach record highs, intensifying economic pressures.
Despite ongoing government assurances to revive domestic cotton cultivation, industry stakeholders argue that policy decisions continue to undermine the sector. The recent approval of a new sugar mill in Rahim Yar Khan—one of Pakistan’s key cotton-growing regions—has sparked criticism. Industry representatives contend that expanding sugar mills in cotton-producing areas reduces the land available for cotton farming, further exacerbating supply issues.
Meanwhile, concerns have grown over the closure of the Karachi Cotton Association since December last year due to an ownership dispute. This shutdown has left Pakistan without active representation in international cotton markets, complicating trade and advocacy efforts.
Cotton sector leaders are now urging the government to introduce relief measures in the upcoming federal budget. The Pakistan Cotton Ginners Association has called for the removal of sales tax on cotton and related products. Simultaneously, textile manufacturers are demanding lower energy tariffs, reduced taxes, and the implementation of a cotton revival strategy developed under Deputy Prime Minister Ishaq Dar.
Prices of cotton across Pakistan have surged sharply, although traders anticipate some relief after Eidul Azha as more ginning factories in Punjab and Sindh ramp up operations. This development may help stabilize the market in the near term.
