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MULTAN, Jul 10 (APP): The Pakistan Central Cotton Committee (PCCC) and the All Pakistan Textile Mills Association (APTMA) have signed a long-awaited memorandum of understanding (MoU) to settle outstanding cotton cess dues owed by APTMA to the PCCC.
The landmark agreement ends years of contention and is expected to revive the PCCC’s financial stability and reinvigorate cotton research in the country.
The formal signing ceremony took place at the Ministry of National Food Security and Research (MNS\&R) on Wednesday, July 9, 2025. Federal Minister for National Food Security and Research Rana Tanweer Hussain chaired the event. The development was announced in an official press release by Sajid Mahmood, focal person for PCCC, headquartered in cotton-producing Multan.
“The initiative was a part of continuation of national agriculture policy of the government. Its not just an agreement but a decisive practical step to help farmers and revival of cotton in Pakistan,” said Rana Tanweer Hussain.
The federal minister said that government wished to harmonize national agriculture production capacity, cotton research and cotton seed improvement with the modern technological trends. “This agreement reflects this vision.” The agreement was signed by federal minister MNS&R Rana Tanweer Hussain, CEO PCCC Dr. Khadim Hussain, Chairman APTMA Kamran Arshad and secretary general Shahid Sattar.
Cotton cess is the mandatory payment that is made by textile mills to PCCC on use of cotton bales they utilize in textile production to help PCCC continue its research activities in developing better disease-resistant and high yielding cotton varieties and provide guidance to farmers on modern agriculture practices. Under the agreement APTMA will extend cooperation to ensure its member textile industries enter into agreement with PCCC, provision of data and verification of arrears of cotton cess, says the release. After verification, the arrears of cotton cess would be paid by APTMA member industries in four equal instalments. The first instalment, that would be one-fourth of the total verified amount of arrears, would be paid right 30 days after the signing of the individual agreement between industry and PCCC. The rest of the three instalments would be paid maintaining three-month intervals thereafter.
APTMA chairman Kamran Arshad welcomed the agreement as signifying the mutual trust and promised all possible support from the textile industry to cotton sector which he declared as the backbone of national economy.
PCCC CEO Dr. Khadim Hussain said the initiative not only serve as foundation for cotton cess payment but also paved the way for a strengthened, result-oriented, transparent and sustainable partnership between industry and research body.
The CEO PCCC heaped praise on federal minister Rana Tanweer Hussain for the special interest he took in finalizing the agreement.
He also appreciated efforts and consultative contributions of secretary MNS&R Waseem Ajmal Chaudhry, Chairman APTMA Kamran Arshad, secretary general Shahid Sattar, former vice president PCCC Dr. Yousuf Zafar, secretary PCCC Dr. Muhamad Idrees Khan and APTMA Cotton Consultant Dr. Javed, says the focal person.