LAHORE: Pakistan may spend over $1 billion on cotton imports this year as domestic production has plunged to a four-decade low, prompting federal Minister for National Food Security and Research Rana Tanveer Hussain to assure full government support for the revival of the cotton sector during budget consultations with the Pakistan Business Forum (PBF).

A PBF delegation led by Chief Organiser Ahmad Jawad met the minister to discuss budgetary proposals aimed at providing a level playing field for Pakistan’s cotton and agriculture sectors.

The minister was quoted as saying that the government considered agriculture and cotton as key pillars of the national economy and was fully aware of the challenges confronting growers and ginners. He assured the delegation that all practical and farmer-friendly proposals aimed at reviving domestic cotton production and reducing dependence on imports would receive serious consideration.

Mr Tanveer said sustainable agricultural growth remained one of the government’s top priorities and pledged continued facilitation for the revival of the cotton sector through effective policy measures.

Pakistan faces a $1.2bn bill as domestic output hits a four-decade low

Mr Jawad said the PBF had strongly recommended the abolition of General Sales Tax (GST) on locally produced cottonseed and oilcake in its budget proposals, describing it as a long-standing demand of growers and ginners.

He said the existing taxation disparity was increasing production costs at the farmer level and discouraging cotton cultivation.

He warned that Pakistan’s cotton economy faced an alarming crisis and required urgent policy intervention to restore farmers’ confidence and revive cultivation.

PBF Punjab Chairman Malik Talat Suhail said removing GST on cottonseed and oilcake could provide farmers with an additional benefit of at least Rs600 per maund while also boosting economic activity and enhancing revenue collection for the Federal Board of Revenue.

He said nearly half of cotton ginning factories across the country had already shut down due to declining domestic production, adding that cotton cultivation had dropped to its lowest level in four decades.

He warned that the country might need to import between 7 and 7.5 million bales of cotton this year as domestic production was expected to remain between 5 and 5.5m bales.

He estimated that the cotton import bill could reach $1-$1.2bn, putting further pressure on foreign exchange reserves.

Published in Dawn, May 23rd, 2026