Naseem Usman
April 14, 2025
KARACHI: The cotton sector in Pakistan is grappling with a worsening crisis marked by volatile trends, declining stock market activity, and restricted business operations. The Export Facilitation Scheme (EFS) issue has further intensified, compounding challenges for stakeholders.
Despite Prime Minister’s directives to ensure a “level playing field,” industry leaders from the Pakistan Cotton Groomers Association (PCGA) and the All Pakistan Textile Mills Association (APTMA) report that 120 spinning mills and 800 ginning factories have shuttered nationwide, with government negotiations failing to yield solutions.
Cotton farmers warn that current EFS policies threaten their livelihoods, demanding immediate intervention. Experts emphasize the urgent need for a comprehensive national policy to revive cotton cultivation and stabilize the sector.
Head Transfer of Technology Central Cotton Research Institute Multan Sajid Mahmood stressed, “Policy is the key to development,” underscoring that revitalization remains impossible without structural reforms.
The government’s inaction and widespread industrial shutdowns have not only strained the economy but also deepened unemployment, sparking calls for unified action.
Amid escalating tensions, stakeholders across the industry, including farmers, mill owners, and analysts, are urging authorities to implement concrete measures to address the crisis. The situation underscores a pressing demand for cohesive strategies to rescue Pakistan’s cotton sector from collapse.
The local cotton market showed mixed trends during the past week, although spot rates were reduced. Business remained relatively better in the last two days. Cotton deals were finalized between Rs 15,500 to Rs 17,500 per maund, depending on quality and payment conditions.
Throughout the week, discussions continued regarding the Export Facilitation Scheme (EFS), as an important meeting on EFS was held on April 11, attended by Federal Minister Ahsan Iqbal, Commerce Minister Jam Kamal, cotton ginners, and APTMA officials.
In this crucial meeting, it was stated that the EFS had been abolished in principle, but Prime Minister Shehbaz Sharif would confirm this decision. Various rumours circulated throughout the week.
On Thursday, in a statement, Prime Minister Shehbaz Sharif said that increasing national revenue through exports is among the government’s top priorities. He emphasized ensuring a level playing field for local industries and consulting with industrial and business organizations for the upcoming budget, incorporating their suggestions.
The Prime Minister made these remarks while chairing a review meeting on the Export Facilitation Scheme (EFS). During the meeting, interim recommendations from the committee formed to enhance the effectiveness of EFS and ensure its benefits for the export sector were presented.
The Prime Minister directed that further consultations with sector experts be ensured regarding the committee’s recommendations to make the scheme more effective in facilitating the import of raw materials and machinery for export industries. He instructed the committee to finalize its interim recommendations after further consultations and submit the report soon.
https://www.brecorder.com/news/40357413/cotton-review-market-navigates-a-volatile-week
(Source: Business Recorder)