Cotton Import Bill to Rise 3.9x in FY25 As Local Production Declines by 37%

Cotton arrivals in Pakistan are down by 37 percent year-on-year (YoY) to 4.29 million bales as of October 31, 2024, compared to 6.79 million bales last year. According to Arif Habib Limited, the cotton import bill is expected to rise by 3.9x in the current fiscal year due to low production. The decrease in cotton arrivals has been attributed to poor farmer economics and the delayed planting of the cotton crop. Last year, the country imported 205,000 tons (1.2 million bales) worth $448 million. For FY25, local production is anticipated to reach 6.0 million bales, creating a demand for 5.4 million bales of imports. The cotton import bill is anticipated to reach $1.9 billion, which is 3.9x higher than last year’s import bill of $448 million.   According to the Pakistan Cotton Ginners Association (PCGA), Punjab reported only 1.842 million bales compared to 2.997 million last year. Sindh fared better, reporting 2.449 million bales—33 percent more than Punjab’s total.