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KARACHI: Pakistan’s cotton output, now down by more than half from its peak, is costing the economy an estimated $2-3 billion a year in additional imports and lost export earnings.

A report titled ‘Seeds of Growth’ released on Wednesday by the Overseas Investors Chamber of Commerce and Industry (OICCI), said that regulatory delays and inconsistent policy rather than a lack of technology or investment are the main reasons Pakistan’s agricultural output continues to trail regional competitors, despite the sector contributing about 23 per cent to GDP and employing 37pc of the workforce.

Cotton output has dropped from around 14 million bales at its peak to an estimated 6.85m bales in FY26, which is 34pc below the government’s own target of 10m bales, the report highlights, attributing the decline to climate shocks, pest infestation, poor seed quality and a blanket ban on certain pesticide ingredients that was imposed without a science-based transition plan.

Report pinpoints execution, not technology, as key obstacle