Cotton arrivals inch up by 0.62% as trade warns of export losses with out pressing govt motion
KARACHI:
Pakistan’s cotton trade is in a quandary after the US unexpectedly lowered tariffs on Indian items. This follows the European Union’s resolution to grant nearly duty-free entry to Indian exports, elevating considerations a few additional decline in Pakistan’s exports.
Cotton Ginners Discussion board Chairman Ihsanul Haq warned that until the federal and provincial governments take instant and focused measures for the cotton and textile sectors, Pakistan would face a pointy decline in exports. He harassed that delayed coverage motion would widen the price hole with regional opponents and weaken Pakistan’s place in world markets.
He stated in line with the newest figures launched by the Pakistan Cotton Ginners Affiliation (PCGA) on Tuesday, as of January 31, 2026, cotton arrivals at ginning factories nationwide elevated by 0.62% to succeed in 5.545 million bales. The report acknowledged that in this era, 2.63 million bales arrived at ginning factories in Punjab, whereas 2.915 million bales reached ginning factories in Sindh and Balochistan, reflecting a lower of three% and a rise of 4%, respectively.
Throughout the evaluate interval, textile mills bought 4.987 million bales from ginning factories, whereas exporters purchased 178,000 bales. Consequently, ginning factories at present maintain saleable shares of round 380,000 bales. The PCGA knowledge additional exhibits that solely 16 ginning factories are operational in Sindh, in comparison with 84 in Punjab, underscoring the uneven regional affect on the sector.
He added that though the federal authorities had set a cotton manufacturing goal of 10.2 million bales for the 2025–26 cotton yr, complete nationwide cotton output is now anticipated to be round 5.6 million bales.
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He stated the trade’s anxiousness intensified after the European Union lowered its import obligation on Indian merchandise to zero, whereas the US minimize tariffs on Indian exports from 50% to a spread of 18%–25%. In distinction, Pakistani merchandise nonetheless face a 19% tariff within the US market. In accordance with the trade, this disparity exhibits value competitiveness decisively in favour of India.
“All the cotton and textile worth chain in Pakistan is below stress,” Haq talked about expressing critical concern, urging governments to behave on trade calls for on an emergency foundation. He emphasised the necessity to align Pakistan’s manufacturing prices with these of neighbouring nations to make sure export competitiveness on value.
The Cotton Ginners Discussion board additionally renewed its demand for instant launch of billions of rupees in pending refunds owed to the textile trade or their adjustment towards tremendous tax liabilities, calling the transfer important for liquidity and survival.
Referring to the newest report by the Worldwide Cotton Advisory Committee (ICAC), Haq stated world cotton manufacturing within the 2025-26 season is estimated at 26 million tonnes, whereas consumption is projected at 25.2 million tonnes. The report expects China to stay the world’s largest cotton producer, adopted by India and Brazil. China and India will lead world consumption, with Pakistan rating third.
The ICAC report additional initiatives Brazil, the US, and Australia as the highest cotton exporters, whereas Bangladesh has emerged because the world’s largest cotton importer, adopted by Vietnam and China.
