Pakistan may need to import nearly 7.2 million cotton bales during Cotton Year 2026-27 to meet the requirements of the local textile industry as domestic production is expected to remain significantly below consumption demand.
According to estimates cited by Cotton Ginners Forum Chairman Ihsanul Haq from the latest USDA report, Pakistan’s cotton production is expected to decline to around 6.94 million bales this year, down by approximately 272,000 bales compared to last year.
Meanwhile, domestic consumption is projected at nearly 14.15 million bales, creating a substantial supply gap for the textile sector, although final consumption levels will depend on government policies and market conditions.
The report stated that China is expected to remain the world’s largest cotton producer this year with production estimated at 45.6 million bales, followed by India with 32.6 million bales, Brazil with 23.8 million bales, and the United States with 18 million bales.
In Pakistan, six ginning factories are currently operational in Punjab, while reports suggest two ginning factories in Sindh may begin operations before Eid ul Azha.
Ihsanul Haq said the country’s main cotton ginning season is expected to begin after Eid ul Azha, while current phutti prices remain stable at around Rs. 11,500 per 40 kilograms and cotton prices at approximately Rs. 22,500 per maund.
He added that clearer price trends in local cotton markets are expected to emerge after Eid as fresh arrivals increase. The Cotton Ginners Forum chairman also criticized the tax structure imposed on the sector, stating that the cotton ginning industry currently faces an effective sales tax burden of up to 84 percent.
According to him, the high tax burden is encouraging undocumented business activity among ginners and oil mill owners, resulting in revenue losses for the national exchequer and creating disputes over Pakistan’s actual cotton production figures.
He warned that declining official production statistics are also damaging Pakistan’s image internationally and urged the federal government to include proposals from the Pakistan Cotton Ginners Association in the upcoming federal budget.
