More than 150 textile mills and over 400 cotton ginning factories across Pakistan have become non-operational due to rising imports under liberal trade policies and declining exports caused by higher production costs, industry representatives said, warning that the domestic cotton value chain is now on “life support.”
Industry sources said increased imports, coupled with higher costs of export-oriented products, have sharply reduced export activity, pushing the cotton industry into one of its worst crises in decades. They cautioned that without timely intervention, the situation could pose serious risks to the national economy.
Chairman Cotton Ginners Forum, Ehsan-ul-Haq, told a private channel that compared to regional competitors, Pakistan’s cotton industry faces significantly higher electricity and gas tariffs, elevated interest rates, heavy taxation and interference from multiple federal and provincial departments. These factors, he said, have sharply increased production costs, eroding competitiveness in international markets and causing a continuous decline in cotton-based exports.
He said the prolonged downturn has created deep concern among all stakeholders linked to the cotton sector, which plays a central role in Pakistan’s industrial and export economy. According to him, the crisis in the cotton industry is a clear indicator of the broader weakening of the national economy.
Ehsan-ul-Haq urged federal and provincial governments to prioritize industrial revival instead of allocating massive funds, estimated at around Rs1,000 billion, to welfare schemes such as the Benazir Income Support Programme and Ramadan relief packages. He argued that reviving hundreds of industrial units would not only strengthen the economy but also help reduce unemployment and poverty in a sustainable manner.
Meanwhile, the latest data released by the Pakistan Cotton Ginners Association (PCGA) shows that as of January 15, 2026, a total of approximately 5.497 million bales of cotton had arrived at ginning factories nationwide. This figure is only 7,000 bales higher than the same period last year, indicating stagnant growth.
The report further stated that cotton arrivals in Punjab declined by 4 percent to around 2.586 million bales, while Sindh recorded a 4 percent increase, with arrivals reaching approximately 2.911 million bales during the same period.