Islamabad: The production of cotton in Pakistan has touched its lowest ever level, which is another indicator of the health of the country’s already fragile economy that is considerably dependent on cotton.
The textile industry is a major contributor to the economy of Pakistan. However, the low yield of cotton has created panic among the nation’s policy makers as well as cotton exporters.
According to a report published in the Pakistani media, a record decrease in the yield of cotton crop was recorded last year.
The report said ‘this is the result of not paying due attention to cotton seeds and today, countries like India have gone far ahead of Pakistan in terms of cotton production’.
The government was expecting that Pakistan would earn foreign exchange from cotton exports and this would provide some relief from the debt of the International Monetary Fund (IMF).
However, considering the current situation, the need to import cotton to meet the needs of Pakistan’s textile industry may arise.
The report said that if cotton is imported, then in a few months, more than the annual amount received from the IMF will be spent on the import of cotton.
This will have a very adverse effect on foreign exchange reserves and will not reduce dependence on the IMF, the report said.