Cotton crop occupies a unique position in the agrarian economy of Pakistan.

It
accounts for 8.2% of the value added in agriculture and about 2% to GDP. It is
realized that an increment of one million bales in cotton production in turn
translates into half a percent increase in GDP. As such, this cash crop is believed
to be the life line of the national economy. In 2004-05, the gross export receipts
were estimated at $ 14.41 billion, of which cotton and textiles accounted for $
8.68 billion or 60 percent. As a matter of fact, cotton has invariably been
important for economic growth and development in the country. In 1947-48, when
Pakistan appeared on the world map, the country was producing merely 1.1
million bales of cotton and only two textile mills were in existence. Soon after the
independence, the process of development of the textile industry had started and
in the year 1948 one more textile mill was setup. The number of cotton bales
and the textile mills thus kept on increasing in the following years. Over the
years, there has been visible improvement in cotton production and the country is
now producing long staple cotton of 1-1/8” and even longer, whereas in the early
years the bulk production was of 1” staple or less. The area under cotton has
also increased considerably to over 3 million hectares. The increase in cotton
production has also been instrumental in expanding the textile industry. Progress
made in cotton sector over the past 57 years may be seen in Table-1.

Table 1 : Cotton and Textile Sector Growth in Pakistan

1947-48 2004-05
Area (ml. ha) 1.23 3.2
Production (ml. bales) 1.1 14.6
Yield (kgs/ha) 160 769
Ginneries 31 1200
Textile Mills 2 458
Mill Consumption (ml. bales) 0.04 12.4
Yarn Production (ml. kgs) 6.2 1939*
Cloth Production (ml. sq. mtr) 29.5 683*
* Figures relate to 2003-04

In the global perspective, Pakistan is one of the largest cotton producing and
consuming countries in the world. Its placement in the global cotton scene can
well be visualized (Table-2).

Table 2 : Pakistan’s Place in World Cotton and Textiles

Percent Rank
Production 9.5 4th
Consumption 10.0 3rd
Yarn Production 9.0 3rd
Yarn Export 26.0 2nd
Cloth Production 7.0 3rd
Cloth Export 14.0 3rd
Source: International Cotton Advisory Committee, Washington D.C., USA.
 In the context of Muslim world, 29 countries produce cotton. Among these,
Pakistan is the single largest country accounting for 32 percent of the collective
cotton acreage, 30 percent of the production and 41 percent of the consumption.

An all time record cotton crop of 14.6 million bales achieved in 2004-05 is thus another
landmark. There is, however, still much scope for enhancing the cotton production to
meet the future needs of the domestic textile sector as well as the international market.
The government is, therefore, determined to accelerate the cotton research and
development process necessarily required for a quantum jump in cotton production as
well as the qualitative improvement matching the spinners’ requirements. At the same
time, it also intends to facilitate all the stakeholders, particularly the growing community
through a package of fiscal, technological, administrative and legislative measuress