LAHORE: Chairman South Punjab of the Pakistan Business Forum (PBF), Malik Suhail Talat expressed grave concerns over the recent data released by the PCGA regarding the cotton season 2024\/2025. According to the final statistics, only 5,524,593 bales of cotton were recorded this season, a sharp decline from the previous year\u2019s 8,393,090 bales. Talat attributed this significant drop to various challenges faced by the cotton sector, particularly the non-modern research, export facilitation scheme (ESF), and taxation issues. He pointed out that the 18% Goods and Services Tax (GST) imposed on oil, seed cotton, and oil cake has worsened the situation, contributing to a 34% decrease in cotton production. Breaking down the numbers, Sindh\u2019s cotton arrivals stood at 2.8 million bales, reflecting a 32% year-on-year drop, while Punjab, another major cotton-growing region, saw an even sharper 36% decline, with 2.7 million bales reported. ONLINE
\nFurthermore, Talat emphasized the negative impact of the government\u2019s decision to exempt imported cotton and yarn from sales tax, which he believes is detrimental to the local cotton sector. The imported raw cotton is reportedly costing the industry around $5 billion and is was affected by market volatility.
\nHe also expressed his reservations regarding the ESF committee formed by the Prime Minister. He argued that there was no need for such a committee, referring to the minutes of the Revival of Cotton Committee meeting held under the Ministry of National Food Security and Research (MNS&R) last month. During that meeting, all relevant stakeholders had suggested eliminating the ESF, rendering any further committees unnecessary.
\nThe PBF South Punjab Chief further called for the immediate removal of the 18% GST on locally produced cotton and the ESF. He stressed that timely and decisive actions were essential to revitalize the cotton industry, particularly as the sowing season for the 2025\/2026 crop is underway in both Punjab and Sindh.
\n\u201cWe need to ensure that our cotton farmers are encouraged and supported through favorable policies. This is the only way forward for the future of Pakistan\u2019s cotton industry,\u201d Talat concluded.
\nIt may recall here Pakistan, among the top ten cotton producers globally, has been struggling to meet expectations due to unfavourable weather, pest infestations, and structural inefficiencies in the sector.<\/p>\n","protected":false},"excerpt":{"rendered":"
LAHORE: Chairman South Punjab of the Pakistan Business Forum (PBF), Malik Suhail Talat expressed grave concerns over the recent data released by the PCGA regarding the cotton season 2024\/2025. According to the final statistics, only 5,524,593 bales of cotton were recorded this season, a sharp decline from the previous year\u2019s 8,393,090 bales. Talat attributed this […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-465222","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-business"},"yoast_head":"\n