Ginning Companies Face Alarming Decline
Staff Report:
In a pivotal meeting, Federal Minister for Commerce, Jam Kamal Khan, held discussions with the Pakistan Ginners Association, led by its Chairman, Dr. Jassu Mal, to address the challenges facing Pakistan’s cotton industry. Once a global leader in cotton production and exports, Pakistan now faces the harsh reality of importing raw cotton due to a lack of attention and resources in the sector.
The Minister highlighted the alarming decline in the number of ginning companies from 1,200 to just 400, leading to underutilization of electricity resources and disruptions in the cotton supply chain. He emphasized that cotton is not merely a commodity but a livelihood, with millions of people in Pakistan depending on its growth, harvesting, and processing.Increase witnessed in remittances at beginning of current FY
Khan acknowledged the heavy taxation across the cotton production cycle—from pesticides to ginning and oil extraction—that has made it difficult for cotton to compete with other crops. He stressed that the government is treating this issue with urgency, particularly given the $3-4 billion spent annually on cotton imports, which could be saved by reviving domestic production.
Proposing a series of seminars and workshops, the Minister expressed the government’s commitment to collaborating with industry stakeholders, including APTMA and exporters, to formulate a comprehensive action plan. He also encouraged the Association to submit proposals for funding through the Export Development Fund (EDF) to help reinvigorate the sector and boost exports.
Dr. Jassu Mal thanked the Minister for his unprecedented support and pointed out the sector’s once prestigious title of “white gold.” He warned that without intervention, the high taxation and electricity costs would continue to drive farmers away from cotton, despite its billion-dollar export potential.
The meeting concluded with a strong resolve to restore Pakistan’s cotton industry to its former glory, turning it back into a global player through urgent reforms and government support.
