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ISLAMABAD, Jan 03 (APP):The Pakistan Business Forum (PBF) has said Pakistan’s cotton sector showed clear signs of recovery during the 2025 season, as national cotton arrivals reached around 5.43 million bales, reflecting an approximately 18 percent year-on-year increase compared to the same period last year, supported by improved crop inflows and steady domestic absorption.
According to consolidated figures up to December 31, 2025, cotton arrivals stood at about 5.43 million bales, compared with around 4.55 million bales during the same period last year, said a press release on Saturday issued here.
PBF South Punjab Chairman Malik Talat Suhail said the improvement was mainly driven by higher arrivals from major cotton-growing areas of Punjab, while supplies from Sindh remained stable. He said the increase in arrivals also resulted in higher pressing activity, while factory-held stocks remained below half a million bales, indicating that most of the cotton was being absorbed by the local market. Limited exports during the season showed a cautious approach aimed at ensuring domestic availability.
Despite the positive trend, the Forum said domestic cotton production was still not sufficient to meet national demand. Pakistan’s textile and spinning industry requires an estimated 14 to 15 million bales of cotton annually to operate efficiently.
Talat Suhail said that even with the improved performance recorded in 2025, local production covered only part of this requirement, making cotton imports unavoidable. He added that this structural gap continued to put pressure on production costs and foreign exchange resources.
The Forum stressed that narrowing this gap would require long-term and consistent policy support rather than short-term measures. It said improving yield per acre should remain a key priority, as Pakistan’s cotton productivity was still below its potential. Better access to quality seed, effective pest management and improved water efficiency could help raise output without expanding the cultivated area.
PBF also highlighted the need to reduce cost pressures on cotton growers. It said reviewing the existing 18 percent sales tax on cottonseed and oil cake could help improve farm-level economics, as these by-products are an important source of income for growers. While not a complete solution, the Forum said such fiscal steps, combined with agronomic improvements, could encourage greater cotton cultivation and support higher output in the 2026 season.
Looking ahead, PBF said that if the current recovery trend, marked by an around 18 percent rise in arrivals, is strengthened through stable pricing, higher productivity and supportive policies, Pakistan could gradually reduce its reliance on imported cotton. This would help strengthen the textile value chain, stabilize raw material availability and improve export competitiveness.
The 2025 season has shown that cotton recovery is possible,” Talat Suhail said. “The focus now must be on sustaining this momentum through realistic policy support and productivity-led growth to ensure further improvement in 2026.