Skip to Content

Steps Approved for Reviving Cotton Output, Chaired by Dar ISLAMABAD

Ministerial forum agrees on reforms, Cess collection through FBR, and industry-led oversight for cotton revival.

Pakistan finalizes cotton revival roadmap with FBR-led Cess, enhanced research funding, and stronger industry role to restore production levels.

  • Cotton production has fallen sharply to 6.8 million bales in the 2025-26 season

Steps Approved for Reviving Cotton Output, Chaired by Ishaq Dar

A high-level inter-ministerial session led by Deputy Prime Minister/Foreign Minister Senator Ishaq Dar has cleared a set of measures for Pakistan’s cotton recovery strategy, including Cess collection through the Federal Board of Revenue (FBR), according to officials.

Cotton production has dropped significantly to around 6.8 million bales for the 2025-26 crop year, nearly 34% below the target of over 10 million bales. The projected output stands at 6.85 million bales grown over 2 million hectares.

The Cotton Commissioner of the Ministry of National Food Security & Research (MNFS&R) delivered a comprehensive briefing on the revival roadmap developed in consultation with the All Pakistan Textile Mills Association (APTMA).

During the meeting, APTMA called for the formation of a fully independent Cotton Board, based on the governance structure followed in the U.S. However, the Minister for National Food Security explained that plans are already underway to merge the Pakistan Agriculture Research Council (PARC) with the Pakistan Central Cotton Committee (PCCC), adding that the restructuring of PCCC would address operational concerns raised by the textile sector.

The Chairperson of NSDRA underlined that quality, certification, and regulation of seeds must remain the core priority if the revival programme is to succeed. He further requested NSDRA’s inclusion in the apex decision-making body responsible for implementing the revival framework, which the forum approved unanimously.

While reviewing research gaps, the Secretary MNFSR clarified that the weak R&D outcome at PCCC is largely linked to financial constraints, pointing out that the Cess rate of Rs 50 per bale has not been revised since 2011. Supporting APTMA’s recommendation to channel Cess collection through FBR, he also highlighted the necessity of adjusting the Cess rate in line with ECC’s 2011 decision.

After detailed discussions, the following points were approved:

  1. Cess recovery will follow the existing legal provisions and the ECC’s 2011 decision.
  2. FBR will formally manage the Cess collection mechanism.
  3. An MoU between MNFS&R/PCCC and FBR will set out the SOPs governing the collection process.
  4. Representation of the cotton industry will be enhanced in PCAC or the PCCC Board, ensuring that the revival programme remains sector-driven.
  5. A major share of Cess proceeds will be earmarked exclusively for cotton-focused R&D.
  6. PCAC will include stakeholders from provinces, academia, farmers, and seed developers to ensure a broad-based revival platform.

In closing remarks, the Deputy Prime Minister reiterated that the steering role of the revival plan will remain with an industry-led council under APTMA’s leadership.