Cotton Crisis Will Further Weaken Pakistan Economy

Pakistan’s economy has been in the flux for many years and the Covid pandemic dealt it a devastating blow. Pakistan has long been a cotton-textile dependent economy and it looks like a crisis is brewing in the cotton sector.

The 2020-21 cotton crop has plummeted with the production not being 10 m bales, instead of the normal average of 12 mn bales but rather 6 million. This means the country will need to import more cotton to the tune of almost $ 3billion in 2021.”

According to an Editorial in Dawn, this is not “a one-off event.” The cotton harvest “suffered setbacks in the previous two years at least, but the scale of the declines is accelerating.” If “diminishing harvests become the new normal, it will have a very damaging effect on the external account.” As a textile export dependent economy if “cotton is also added to the list of imported raw materials, it will mean even greater loss of competitiveness by the textile sector, which is already struggling to compete with its counterparts in Bangladesh and Vietnam.”

The Editorial called on the government to tackle two key problems: “First the immediate situation that has arisen from the collapse of the cotton harvest, that is leading to rising prices, which could prompt exporters to demand even greater concessions from the government to maintain the momentum behind exports. The second is the longer-term stagnation and erosion of the country’s cotton output.”

Author: Ahsan Kureshi

Latest articles

Bangladesh Record on Women Shows Where Pakistan Has Gone Wrong

        Pakistan has a terrible record when it comes to human rights, civic rights, and gender related rights. Most of the countries of South...

Bidding Farewell to I.A. Rehman, Pakistan’s Relentless Human Rights Defender

With the recent demise of I.A. Rahman, the honorary spokesperson and former secretary-general I. A. Rehman of the Human Rights Commission of Pakistan (HRCP),...

Pakistan’s ‘Environment be Damned’ Approach Having Disastrous Effects

The Ravi Riverfront Urban Development Project (RUDP) is an urban development megaproject in Lahore that runs along the Ravi River. It includes the construction...

Former Playboy Imran Khan Blames Women‘s Clothing for Rape

Leaders are supposed to set examples, not just on the political but also the social front. However, Prime Minister Imran Khan apparently does not...

Related articles

Leave a reply

Please enter your comment!
Please enter your name here

Author: Ahsan Kureshi