LAHORE: Cotton arrivals at ginning factories have shown a marginal increase this season, but mounting international trade challenges and falling textile exports are raising serious concerns within the cotton and textile industry.

According to the data released by the Pakistan Cotton Ginners Association (PCGA), a total of 5.545 million bales reached ginning factories across the country by Jan 31, reflecting an increase of 35,000 bales or 0.62 per cent compared to the same period last year.

The data show that Punjab’s ginning factories received 2.63m bales, a decline of around 3pc, while Sindh and Balochistan together received 2.915m bales, marking an increase of about 4pc. The drop in Punjab has largely been attributed to a noticeable decline in output from several districts of south Punjab, whereas improved performance in districts such as Sanghar, Nawabshah and Naushahro Feroze supported higher arrivals in Sindh.

During the same period, textile mills purchased 4.987m bales from ginners, while exporters bought 178,000 bales. Around 380,000 bales remain unsold and available with ginning factories, a significant reduction compared to last year’s unsold stock of 486,000 bales, indicating relatively stronger market absorption. Currently, 16 ginning factories are operational in Sindh, while 84 factories are active in Punjab.

Despite the slight year-on-year increase, overall cotton production remains far below the official target of 10.2m bales for 2025-26. Total output is expected to hover around 5.6m bales.

Meanwhile, the industry is grappling with growing external pressures. Continuous decline in cotton and textile exports, coupled with trade concessions extended to India by major markets, has triggered alarm bells. The EU has granted duty-free access to Indian exports, while the US, after earlier announcing a 50pc tariff, has unexpectedly reduced tariffs on Indian goods to 18pc, compared to 19pc for Pakistan.

Cotton Ginners Forum Chairman Ihsanul Haq warns that these developments have created widespread anxiety across Pakistan’s cotton sector. He stressed that reducing production costs to levels comparable to those of neighbouring countries is critical for boosting exports.

Published in Dawn, February 4th, 2026