Cotton Arrivals Rise 7.5% Amid Deepening Textile Industry Crisis

LAHORE: Cotton arrivals at ginning factories have increased by 7.53% year-on-year, reaching 4.08 million bales by October 15. Despite this rise, the domestic cotton and textile industries are grappling with a severe crisis, as approximately 500 ginning factories and over 150 textile mills remain closed, with nearly half of the country’s power looms idle.

Industry representatives attribute this crisis to escalating production costs and the alleged misuse of the Export Facilitation Scheme (EFS). Reports indicate that imported yarn and fabric, intended for re-export, are being sold in the local market, exacerbating the situation. The Pakistan Cotton Ginners Association (PCGA) reported that cotton arrivals reached 4,081,265 bales, an increase of 285,628 bales from 3,795,637 bales the previous year.

In Punjab, cotton arrivals totaled 1.64 million bales, marking a 7.79% increase, while Sindh saw a 7.35% rise to 2.44 million bales. Bahawalnagar led Punjab with 418,750 bales, followed by Bahawalpur and Dera Ghazi Khan, highlighting regional disparities in cotton production.

As the textile sector faces mounting challenges, industry stakeholders are calling for urgent reforms and stricter enforcement of regulations to ensure the integrity of the EFS. The situation demands immediate attention from policymakers to prevent further deterioration of the industry.