Decrease in Cotton Cultivation Area by 33 Percent Has Destroyed the “White Gold” Economy. Adoption of ‘Grow Cotton, Save Economy’ Campaign should be the National Priority: Mian Zahid Hussain
President of the Pakistan Businessmen and Intellectuals Forum (PBIF) and All Karachi Industrial Alliance, Chairman of the National Business Group Pakistan, Chairman of the FPCCI Policy Advisory Board, and former Provincial IT Minister, Mian Zahid Hussain, has expressed his support for the demands made by the Pakistan Cotton Ginners Association (PCGA) in a meeting held in Multan on September 26. He stated that cotton is the backbone of the country’s agricultural economy and exports, and the severe decline in its production has inflicted massive damage on the Pakistani economy. Endorsing the PCGA’s demands, he urged that all sugar mills operating within cotton zones be shifted immediately, the sales tax on cotton and its by-products—including cottonseed and cottonseed cake—be completely abolished, fixed taxes included in electricity bills be eliminated, and the strict implementation of the Cotton Control Act be ensured. He further added that the government must commence work on the “Grow Cotton, Save the Economy” campaign on an urgent basis and grant industry status to the ginning sector so it can be provided electricity and gas at competitive industrial rates.
Mian Zahid Hussain highlighted that according to the September 2026 report by the United States Department of Agriculture (USDA), Pakistan’s total cotton production for the year 2026-27 is projected to be a mere 4.9 million bales, whereas the production target was 9.6 million bales. The domestic spinning industry’s annual requirement is 10 million bales. To bridge this massive shortfall, Pakistan will have to import over 5 million bales, worth approximately $2 billion or 600 billion Pakistani Rupees. Due to the decline in domestic cotton production, this hefty amount will be paid to foreign farmers instead of Pakistani farmers. This will not only lead to the economic deprivation of local farmers but also place an additional $2 billion burden on the country’s already stressed foreign exchange reserves. Mian Zahid Hussain noted that in FY 2023-24, domestic cotton production was 7 million bales with imports at 3.2 million bales; however, in FY 2024-25, production fell to 5 million bales, causing imports to increase to 6.1 million bales. In FY 2025-26, production stood at 5.6 million bales and the import volume was 6 million bales. He emphasized that the continuous downward trajectory in cotton production is primarily due to an approximate 33 percent decrease in the cotton cultivation area over the last decade, which has caused Pakistan’s GDP to stagnate at $452 billion and national exports to freeze at the $30 billion mark. On the other hand, our population is growing by 6 to 7 million individuals annually—meaning we are giving birth to a population the size of Singapore’s every single year.
Mian Zahid Hussain pointed out that industrial production costs in Pakistan are the highest in the region, which has severely crippled our ginning, spinning, and textile industries. Currently, neighboring countries are supplying electricity to their industries at 8 cents per unit, whereas the same electricity is being provided at 14 cents per unit in Pakistan. He argued that fixed charges and exorbitant taxes included in electricity bills have made business competitiveness utterly difficult. Furthermore, policies such as the imposition of sales tax on local cotton, cottonseed, and cottonseed cake have further exhausted the market, and these taxes must be abolished immediately.
Mian Zahid Hussain termed the decision to allow the installation of sugar mills in dedicated cotton zones as a historic and strategic mistake, which has caused shrinkage to the cotton cultivation area and its yield potential. Strongly endorsing the PCGA’s demand, he reiterated that sugar mills established in cotton zones may be relocated immediately and the Cotton Control Act must be implemented in its true spirit. The fundamental purpose of this Act, he explained, is to protect cotton zones from the encroachment of other crops and unrelated industries, provide legal protection for the supply of standard and pure seeds in the market, and safeguard the cotton crop from diseases and adulterated pesticides to restore its quality to international standards. He warned that if government departments fail to provide immediate relief to the cotton ginners and the textile industry, and fail to ensure farmers’ access to climate-resilient modern seeds, other countries will snatch Pakistan’s remaining share in the global market, triggering a disastrous new storm of unemployment and poverty across the country.