Pakistan cotton imports set to surge as climate change hits production 

A Pakistani labourer picks cotton in a field in Qazi Ahmed in the district of Nawabshah on September 27, 2017. (AFP/File)
Short Url
Updated 12 March 2025
Follow

Pakistan cotton imports set to surge as climate change hits production 

  • Cotton production in Pakistan’s Punjab declined by over 36 percent this year, as per official data 
  • Amid production drop, analyst expects Pakistan’s cotton import bill to surge to $5 billion

KARACHI: Cash-strapped Pakistan’s cotton imports are set to surge this year as irregular weather patterns brought about by climate change effects have significantly lowered production, financial analysts and cotton experts said on Wednesday. 

According to the Pakistan Central Cotton Committee, factories in Pakistan have received 5.51 million bales of cotton as of January this year, a significant decline of 34 percent compared to last year.

Pakistan’s eastern Punjab province, which produces the most cotton out of all provinces in the country, grew 2.7 million bales, showing a decline of more than 36 percent compared to last year.

“The biggest reason for this fall [in cotton production] is climate change,” Khalid Abdullah, Pakistan’s former cotton commissioner, told Arab News. 

Pakistan is recognized as one of the world’s most vulnerable countries to climate change, where over 1,700 people were killed in 2022 after torrential rains triggered flash floods. Islamabad is negotiating for additional financing of $1 billion to $1.5 billion from the International Monetary Fund (IMF) to strengthen climate resilience. 

Abdullah said the early cotton sowing method had proved very successful in terms of production in 2023. However, he said when farmers planted cotton after Feb. 15 this year, some of the plants died as the temperature suddenly dropped and it rained in some areas.

“The farmers had to replant cotton which resulted in extra costs on account of seeds and sowing charges,” Abdullah explained

He said re-sowing cotton also resulted in delays which decreased the time window during which cotton remains free from viruses, further impacting its yield. 

Abdullah said another reason for a dismal crop yield this season was the price disruptions caused in the local market, adding that they restricted farmers from investing in cotton, with the government not offering any support price. 

Market uncertainties dampened farmers’ confidence further, who spent less on fertilizer and plant protection measures, he said. 

Financial analysts pointed out that a drop in cotton production would mean the country would spend more on cotton imports this year to support its huge textile industry. 

Textile is a massive earner for Pakistan. During fiscal year 2024, Pakistan exported a whopping $16.7 billion worth of textile goods, according to the Pakistan Bureau of Statistics. 

To attain these export figures, the country had to import $448 million of raw cotton. This figure was 73 percent lower than $1.68 billion that Pakistan spent on raw cotton imports in FY23.

“Naturally imports are going to be higher due to lower local output of cotton,” Muhammad Waqas Ghani, head of research at Karachi-based investment banking firm JS Global Capital Ltd., told Arab News. 

Naseem Usman, a cotton analyst and chairman at the Karachi Cotton Brokers Forum, said in a report that Pakistan’s cotton import bill could surge to as high as $5 billion this year. 

“This serious drop in cotton production is forcing textile spinners to increase their dependence on imported cotton,” Usman said. 

Rising imports can cause headaches for cash-strapped Pakistan, which is trying to navigate a tricky path to economic recovery from a prolonged macroeconomic crisis by undertaking financial reforms, cutting back on imports and increasing exports. 

Agriculture has an impressive contribution of about 24 percent to Pakistan’s Gross Domestic Product (GDP) and accounts for nearly half of the country’s employed labor force. 

Currently, the South Asian country has $11 billion in foreign exchange reserves, enough to finance about two months of imports only. 

The IMF, which is currently reviewing Pakistan’s economic progress as part of the $7 billion Extended Fund Facility (EFF) program, wants Islamabad to have an import cover of at least three months. 

Sensing the gravity of the situation, Prime Minister Shehbaz Sharif formed the Committee on Cotton Crop Production Enhancement, which held its first meeting in Islamabad on Mar. 11.

The food ministry said the committee’s primary focus was to take steps needed to increase cotton production in Pakistan, noting that it had decreased significantly. 


Pakistan vows retaliation, saying three bases targeted by Indian missiles

Updated 33 min 56 sec ago
Follow

Pakistan vows retaliation, saying three bases targeted by Indian missiles

  • Army says Nur Khan base, Murid base in Chakwal district and one Shorkot targeted by Indian missiles
  • Reports came after Chaudhry said in sudden statement India fired ballistic missiles that fell in Indian territory

ISLAMABAD: Pakistan Military Spokesperson Lt. Gen. Ahmed Sharif Chaudhry said on Saturday India had attacked multiple bases in Pakistan, vowing retaliation.

In the latest confrontation between the two longstanding enemies that began on Wednesday, India said it hit nine “terrorist infrastructure” sites in Pakistan in retaliation for what it says was a deadly Islamabad-backed attack in Indian-administered Kashmir on April 22. Pakistan says it was not involved and denied that any of the sites hit by India were militant bases. It said it shot down five Indian aircraft on Wednesday.

Pakistan’s military said on Friday it shot down 77 drones from India at multiple locations, including the two largest cities of Karachi and Lahore, and the garrison city of Rawalpindi, home to the army’s headquarters.

On Saturday early morning, panic rang out in Pakistan as reports emerged that Pakistan Air Force’s Nur Khan base had been hit. 

The Nur Khan air base in Rawalpindi, where the military has its headquarters, is around 10 kilometers from the capital, Islamabad.

In televised remarks, the military spokesman said three bases, Nur Khan, PAF Base Murid, an operational flying base of the Pakistan Air Force located near the village of Murid in the Chakwal District of Punjab, and one in Shorkot, had been targeted by Indian missiles. 

“Now you just wait for our response,” Chaudhry said.

The reports came after Chaudhry said India fired ballistic missiles that fell in Indian territory, announcing it in a sudden statement on national broadcaster at 1:50 a.m. local time on Saturday (2050 GMT), with no details provided to support the claim.

“I want to give you the shocking news that India fired six ballistic missiles from Adampur. One of the ballistic missiles hit in Adampur, the rest of the five missiles hit in the Indian Punjab area of Amritsar,” the army’s spokesman said in his short video statement.

Amritsar’s district commissioner in a text message between Friday and Saturday said: 

“Don’t panic. Siren is sounding as we are under red alert. Do not panic, as before, keep lights off, move away from windows. We will inform you when ready to resume power supply.”

Around 48 people have been killed since Wednesday’s conflagration, according to casualty estimates on both sides of the border that have not been independently verified. 


Pakistan military says it will not let India set precedent for cross-border strikes

Updated 09 May 2025
Follow

Pakistan military says it will not let India set precedent for cross-border strikes

  • Military spokesperson says Pakistan has ‘every right to protect its honor, integrity and sovereignty’
  • He says India has been equipping people against Pakistan while running ‘terrorist’ training camps

ISLAMABAD: Pakistan’s military said on Friday it would not allow India to “set a new norm” where it could carry out cross-border strikes at will, vowing to defend the country’s sovereignty and respond at a time and place of its choosing.

The two South Asian nuclear rivals have been on the brink of a full-scale war since India carried out strikes on multiple locations in Pakistan on Wednesday, in response to a deadly April 22 attack in Indian-administered Kashmir that left 26 tourists dead. New Delhi blamed Islamabad for the attack, a charge Pakistan has denied.

In the days since, Pakistan has claimed to have downed five Indian fighter jets and over 75 drones, while India said it had retaliated against Pakistani air and drone assaults by destroying an air defense system in Lahore.

Global powers have urged both sides to exercise restraint, but tensions remain high.

“They want to set a new norm that at their convenience, whenever they feel like it, they will go cross-border, cross-international, and hit wherever they like,” Pakistan military spokesperson Lt. Gen. Ahmed Sharif Chaudhry said in a briefing to foreign media.

“What do you think of Pakistan — that we will allow all this to happen after clearly saying we have every right to protect the honor, integrity and sovereignty of our people?”

He added that Pakistan would respond “at the time, place and method of our choosing.”

During the briefing, Chaudhry displayed images of children killed in Indian strikes and asked journalists to keep them in mind.

“Please remember these pictures when you talk about what’s happening on the ground and when you ask us what Pakistan is going to do,” he said.

Accusing India of sponsoring “terrorism,” Chaudhry alleged that Indian agencies were operating training camps inside their country and directing armed groups to increase attacks on Pakistani soil.

“They have networks of people whom they train and equip with weapons,” he said. “Instructions have been issued to terrorist groups to ramp up activities against Pakistan.”

India and Pakistan have fought multiple wars, but this is the most serious escalation since both countries became declared nuclear powers in May 1998.

The disputed Himalayan region of Kashmir, which both sides claim in full but control in part, has long been a flashpoint and the cause of repeated military skirmishes.


PM Sharif announces IMF approval of $1 billion disbursement to Pakistan under $7 billion deal

Updated 09 May 2025
Follow

PM Sharif announces IMF approval of $1 billion disbursement to Pakistan under $7 billion deal

  • The prime minister expresses satisfaction India’s ‘efforts to sabotage’ the loan program had failed
  • He says Pakistan’s economic situation is improving and it is moving toward financial progress

KARACHI: The International Monetary Fund (IMF) approved a $1 billion disbursement for Pakistan under a loan program secured by the government last year, Prime Minister Shehbaz Sharif said in an official statement late Friday.

The announcement followed an IMF Executive Board meeting to finalize staff-level agreements related to the $1 billion payout, as well as Pakistan’s new $1.3 billion arrangement under a climate resilience facility approved in March.

The meeting took place at a time when Pakistan is working to revive investment amid a gradually stabilizing macroeconomic environment, following a prolonged downturn that compelled it to seek external financing from allies and global lenders.

“Prime Minister Shehbaz Sharif expressed satisfaction over the IMF’s approval of the $1 billion tranche for Pakistan and the failure of India’s underhanded tactics against the country,” his office said in a statement issued after the board’s decision.

Media reports said recently India had attempted to pressure the IMF to block the disbursement, citing heightened military tensions between the two neighbors following a deadly April 22 attack in Indian-administered Kashmir that left 26 tourists dead.

New Delhi blamed Islamabad for the assault, an allegation Pakistani officials repeatedly denied.

Sharif said international financial institutions had “responsibly rejected” India’s narrative and reaffirmed their trust in Pakistan’s economic strategy.

“Indian efforts to sabotage the IMF program have failed,” he said, adding the disbursement would help stabilize the economy and steer it toward long-term recovery.

He praised Deputy Prime Minister and Foreign Minister Ishaq Dar, Finance Minister Muhammad Aurangzeb and other members of the government’s economic team for their role in securing the funds.

Pakistan has been working to broaden its tax base, improve energy sector efficiency, and unlock private sector growth as part of its reform commitments under the $7 billion IMF loan program.

“By the grace of God, the country’s economic situation is improving, and Pakistan is moving toward progress,” Sharif said. “The government remains committed to tax reforms, energy sector improvements and private sector development.”

He reiterated that Pakistan would stay the course on economic stabilization, effective performance and long-term planning.

The IMF funding approval comes at a critical time for Pakistan, as it seeks to reassure global investors and shore up foreign exchange reserves amid geopolitical instability and upcoming budget negotiations.


Pakistan accuses India of targeting civilians along Kashmir border amid intensifying hostilities

Updated 09 May 2025
Follow

Pakistan accuses India of targeting civilians along Kashmir border amid intensifying hostilities

  • Army spokesperson says Pakistan has limited its response to Indian military posts across the LoC
  • He denies Indian claims Pakistan launched large-scale drone and missile attacks across the border

ISLAMABAD: Pakistan’s military on Friday accused India of deliberately targeting civilians along the Line of Control (LoC), the de facto border in the disputed Kashmir region, as tensions between the two nuclear-armed neighbors escalated sharply this week.

Fighting between the South Asian rivals intensified after India carried out strikes on multiple locations in Pakistan on Wednesday, in response to a deadly April 22 attack in Indian-administered Kashmir that left 26 tourists dead. New Delhi blamed Islamabad for the attack, a charge Pakistan has denied.

In the days since, Pakistan has claimed to have downed five Indian fighter jets and over 75 drones, while India said it had retaliated against Pakistani air and drone assaults by destroying an air defense system in Lahore.

The cross-border violence also had a devastating impact on civilians living along the LoC, with both sides trading heavy fire over the past two days.

“Pakistan has been receiving the Indian artillery shelling,” the military’s spokesperson, Lt. Gen. Ahmed Sharif Chaudhry, told Türkiye’s TRT World in an interview.

“Unfortunately, they are targeting, deliberately targeting, the civilians,” he continued. “Pakistan is now firing on the posts from where the [Indian] artillery and the military are firing. We are concentrating and putting our fire only on military targets.”

Chaudhry said Pakistan’s response was defensive and restrained, limited to small arms fire against Indian military positions.

He also denied New Delhi’s claims that Pakistan had launched large-scale drone or missile attacks across the international border, calling them “fabrications” designed to fuel a “media frenzy.”

“Since last night, they [India] have created a media blitz that Pakistan has launched drones, aircraft and a massive attack across the international border,” he said, adding: “In 21st century warfare, everything has an electronic signature. If there have been attacks with missiles from the Pakistani side, there has to be an electronic signature.”

Chaudhry further accused India of “gagging” international and domestic media as well as controlling digital platforms, saying it was using its new organizations to spread disinformation hour after hour.

The LoC has long been a flashpoint between India and Pakistan, both of which claim the disputed Kashmir region in full but control only parts of it. The latest hostilities mark one of the most serious flare-ups in decades.


Pakistani stocks surge sharply on IMF optimism, hopes of easing India-Pakistan standoff

Updated 09 May 2025
Follow

Pakistani stocks surge sharply on IMF optimism, hopes of easing India-Pakistan standoff

  • The benchmark KSE-100 index rose 3,647.82 points, or 3.52 percent, to close at 107,541.45
  • India-Pakistan tensions triggered about 12 percent market decline between April 23 and May 8

KARACHI: The Pakistan Stock Exchange (PSX) rebounded sharply on Friday, climbing over 3,500 points, as investor sentiment improved ahead of an International Monetary Fund (IMF) Executive Board meeting and what some analysts described as easing tensions between Pakistan and India.

The benchmark KSE-100 index recovered 3,647.82 points, or 3.52 percent, closing at 107,541.45, after a historic plunge of 6,482 points on Thursday, the largest single-day drop in the index’s history, triggered by fears of an escalating conflict between the two nuclear-armed neighbors.

"The recovery was on account of optimism on IMF Executive Board meeting scheduled to consider Extended Fund Facility (EFF) program, where market expects smooth approval," Topline Market Review said after the end of trading. "Overall decline in cross border hostilities also provided stimulus to investor sentiment."

The EFF, a $7 billion loan program secured by Pakistan in September last year, is aimed at stabilizing the country's economy through structural reforms and fiscal consolidation.

While Pakistan’s authorities say macroeconomic indicators have improved in recent months, they view the IMF support as critical for sustaining gains and transitioning toward growth.

Some analysts also linked the improved investor confidence to what they described as a gradually easing geopolitical situation between India and Pakistan.

"Stocks staged sharp recovery as investor eye de-escalation in Pakistan-India tensions after US appeal for end to violence," Ahsan Mehanti, the Chief Executive Officer of Arif Habib Commodities, told Arab News.

Raza Jafri, the head of Intermarket Securities, said any de-escalation could extend the positive stock market trend.

"Institutional value buying, especially in blue-chip high dividend yielding stocks, saw the KSE100 rebound today," he added.

Tensions between India and Pakistan spiked this week after New Delhi launched missile strikes on multiple locations in Pakistan, blaming Islamabad for a deadly April 22 attack in Indian-administered Kashmir that killed 26 tourists. Pakistan has denied involvement.

The crisis triggered a 12 percent decline in the Pakistani market from April 23 to May 8.

The geopolitical unrest posed a major challenge for Prime Minister Shehbaz Sharif’s efforts to stabilize the economy, which depends on a number of factors including increased foreign investment, exports and revenue generation.