Pakistan Faces $2 Billion Cotton Shortage

Pakistan faces a cotton import bill of around $2 billion in the current financial year 2026-27 as domestic production is projected to fall to just 4.9 million bales.

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• Pakistan's Sugar Export Plan at Risk Over High $660 Reserve Cost.
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• According to a recent US Department of Agriculture report, Pakistan's cotton production is projected to remain far below the government's target of 9.6 million bales.
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• This means Pakistan may need to import more than 5 million cotton bales to meet industrial demand, with the imports estimated to cost around $2 billion, or Rs.

According to a recent US Department of Agriculture report, Pakistan's cotton production is projected to remain far below the government's target of 9.6 million bales. The local spinning industry requires around 10 million bales annually. Bill Gates Should Stay Away From Pakistan.

This means Pakistan may need to import more than 5 million cotton bales to meet industrial demand, with the imports estimated to cost around $2 billion, or Rs. 600 billion.

Discussing the report, FPCCI Policy Advisory Board Chairman Mian Zahid Hussain remarked the decline would put further pressure on Pakistan's foreign exchange reserves while the funds that could have gone to local farmers would instead be paid to foreign producers.

He remarked the administration needs to take urgent steps to revive cotton production and backing cotton ginners, farmers and the textile industry.

Pakistan's cotton production has already remained well below its earlier levels. Production stood at around 7 million bales in FY2023-24, before falling to 5 million bales in FY2024-25. While cotton imports reached regarding 6 million bales, it remained at around 5.6 million bales in FY2025-26.

Mian Zahid remarked the continuous decline is largely linked to a reduction in the area under cotton cultivation. It has fallen by around 33 percent over the past decade.

He additionally pointed to high industrial energy costs as another challenge for the sector. According to him, industries in neighboring countries receive electricity at around 8 cents per unit, compared with around 14 cents per unit in Pakistan.

He backed demands to shift sugar mills out of cotton-growing zones, remove sales tax on cotton and related by-products, eliminate fixed taxes in electricity bills and ensure full implementation of the Cotton Control Act. Pakistan's Sugar Export Plan at Risk Over High $660 Reserve Cost.

Mian Zahid Hussain additionally called on the administration to launch the proposed "Grow Cotton, Save Economy" campaign on an emergency basis and provide the ginning sector with industrial status so it can access electricity and gas at competitive industrial rates. Stay Connected with ProPakistani.

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In short, pakistan Faces $2 Billion Cotton Shortage is the central thread here, and readers can expect follow-up reporting as the picture becomes clearer.