Pakistan’s textile sector turns to foreign cotton ahead of ginning season

Pakistan’s textile sector has started importing large quantities of cotton from the United States and Brazil even before the beginning of the domestic ginning season, highlighting an acute shortage of local cotton supplies and pushing prices to record levels.

According to Dawn , industry reports indicate that Pakistani textile mills bought more than 206,000 bales of cotton from the US during the past week, accounting for nearly all of the American cotton sold internationally for the 2026-27 season in that period. At the same time, imports from Brazil have also accelerated as manufacturers attempt to secure raw material for the country’s textile industry.

The unexpected surge in imports is expected to significantly increase Pakistan’s foreign exchange spending during the current fiscal year, with analysts warning that the combined import bill for cotton and edible oil could reach unprecedented levels.

Despite repeated government pledges to revive cotton cultivation, stakeholders say policy decisions continue to hurt the sector. The approval of another sugar mill in Rahim Yar Khan, one of Pakistan’s main cotton-growing regions, has drawn criticism from industry representatives who argue that the expansion of sugar mills in cotton-producing areas is reducing land available for cotton farming.

Concerns have also emerged over the closure of the Karachi Cotton Association since December last year because of an ownership dispute, leaving Pakistan without active representation in international cotton markets.

Meanwhile, cotton sector representatives are urging the government to provide relief measures in the upcoming federal budget. The Pakistan Cotton Ginners Association has proposed removing sales tax on cotton and related products, while textile manufacturers have demanded lower energy tariffs, reduced taxes and implementation of a cotton revival strategy prepared under Deputy Prime Minister Ishaq Dar.

Cotton prices across Pakistan have climbed sharply, although traders expect some easing after Eidul Azha as more ginning factories begin operations in Punjab and Sindh.

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