AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Islamabad: Shahid Rasheed Butt, a noted economic expert and former President of the Islamabad Chamber of Commerce, cautioned on Wednesday that the persistent decline in cotton production is posing a significant risk to Pakistan’s economy.
Butt expressed approval of Prime Minister Shahbaz Sharif’s recent focus on the issues faced by farmers and the textile industry. However, he emphasized that mere announcements are insufficient. He insisted that without immediate, coordinated, and practical measures, the revival of the cotton sector remains elusive.
In a statement today, Butt mentioned that setting a support price of Rs 8,500 per 40 kg and forming a high-level committee are positive moves. Yet, he warned that these steps would be ineffective unless implemented promptly.
Pakistan’s cotton production has plummeted by over 60 percent in the past decade, Butt revealed. Once producing 14 million bales, the output has now fallen to 5.5 million bales. This decline has led to increased reliance on imported cotton, draining foreign exchange and reducing export competitiveness.
Projections indicate that Pakistan will import 5.4 million bales of cotton in the 2024-25 fiscal year, costing around $1.9 billion. This will further burden the current account and foreign exchange reserves, impacting the local currency.
With cotton and textiles comprising nearly 60 percent of Pakistan’s total exports and about 11 percent of its GDP, a crisis in this sector affects the broader economy. It also impacts millions of farmers, laborers, and industrialists. The production decline has resulted in the closure of over 60 percent of the country’s ginning factories and increased unemployment.
Butt identified factors such as poor seed quality, climate change, high production costs, the spread of sugarcane cultivation, and inconsistent policy as primary contributors to the cotton sector’s decline. He criticized agricultural research institutions for not providing farmers with high-quality seeds.
Despite the challenges, Butt sees promise in recent hybrid cotton experiments in both public and private sectors. He urges the government to focus on enhancing seed quality and boosting agricultural research. His recommendations include measures to help farmers reduce input costs and the establishment of designated cotton zones with strict enforcement.
Butt envisions a future of modernization for the cotton sector. He proposes reviving ginning and spinning factories through targeted incentives and subsidies. Increasing textile exports with practical support is also a priority.
Additionally, he sees potential in introducing innovative farming tools, mobile apps, and drone technology to equip farmers with advanced techniques, improve productivity, and usher in a new era for the industry.
“This is no longer just an agricultural issue. It has become a national economic crisis that demands immediate and serious attention from all relevant authorities,” Butt concluded.