KARACHI (Dunya News) - Pakistan's cotton production has dropped to less than half of its historic peak, causing the country an estimated annual economic loss of $2–3 billion through higher imports and reduced export earnings, according to a new report by the Overseas Investors Chamber of Commerce and Industry (OICCI).
The findings were published in OICCI's report titled "Seeds of Growth", which is based on observations and feedback from its member companies operating in Pakistan's agriculture sector.
According to the report, agriculture contributes around 23% to Pakistan's gross domestic product (GDP) and employs approximately 37% of the country's workforce. However, the sector continues to underperform compared to regional peers due to delays in regulatory approvals and inconsistent policies rather than a lack of technology or investment.
The report noted that cotton production, which once reached a peak of around 14 million bales, fell to approximately 6.85 million bales in fiscal year 2025-26. This was 34% below the government's target of 10 million bales.
It identified climate change, pest attacks, the use of poor-quality seeds, and restrictions on certain crop protection ingredients without scientifically proven alternatives as the main reasons behind the decline in cotton output.
OICCI said reviving cotton production to between 8 million and 9 million bales could significantly reduce pressure on Pakistan's foreign exchange reserves, as the textile industry accounts for nearly 60% of the country's exports and relies heavily on locally produced cotton.
The report also highlighted the potential of Pakistan's maize sector. It noted that hybrid seeds have tripled per-acre maize yields over the past three decades. However, despite the federal cabinet's approval of the National Biotechnology Policy last month, implementation has yet to begin.
According to the report, the delay in introducing advanced biotech hybrid maize seeds is slowing the sector's development and limiting Pakistan's potential to generate billions of dollars through maize and animal feed exports.