EMPAK Strategies report warns of persistent risks in Pakistan’s cotton sector

2026-02-16 - 00:26

According to a new research report by EMPAK Strategies, the cultivated area of cotton in the 2024–25 season has increased, but it remains lower than the area in 2015. Despite a partial recovery this season, the cotton sector continues to face serious risks. The report reveals that structural and climate-related challenges continue to threaten the long-term stability of Pakistan’s cotton production. The report states that cotton production in 2024–25 reached 5 million bales, a modest recovery after a steep decline in previous years. Production had fallen from 7 million bales in 2015–16 to 3.9 million bales in 2022–23. The research highlights that Pakistan is no longer self-sufficient in cotton and now imports 2–3 billion dollars’ worth annually, putting pressure on foreign exchange reserves and increasing costs for the country’s largest export sector, the textile industry. Experts warn that this trend could negatively affect Pakistan’s export competitiveness. EMPAK Strategies’ research report identifies climate change as a key risk factor. Rising temperatures, erratic rainfall, water scarcity, and increasing pest resistance have reduced yields per hectare. Projections indicate that temperatures in cotton-growing regions could rise by 1.5 to 2°C by 2040, potentially exacerbating production losses. Administrative weaknesses have also intensified the crisis.