LAHORE (special crosspondent) – Pakistan’s cotton and textile sector has voiced growing concern over the increasing availability of low-priced Chinese fabric in the local market, warning that it is placing additional pressure on domestic manufacturers and cotton growers already facing rising production costs and declining output. Industry experts note that the textile sector remains a cornerstone of the national economy, similar to how LCCI and Synergia Global Partner to Boost International Business Growth to enhance trade efficiency.

Concerns Over Export Facilitation Scheme

According to reports, Pakistan Cotton Ginners Forum Chairman Ihsanul Haq alleged that some fabric imported from China under the Export Facilitation Scheme (EFS) is being under-invoiced and diverted into the open market. He called on the federal government to carry out a comprehensive audit of imports under the scheme and take action against any misuse to protect the local textile industry. Stakeholders maintain that maintaining domestic manufacturing integrity is essential, much like recent administrative decisions such as when the Government Suspends Proposed e& Rebranding for Ufone and Telenor Merger to ensure market stability.

Economic Strain and Weather Risks

Industry stakeholders say Pakistan’s cotton sector is already struggling with lower crop production, high electricity and gas tariffs, expensive financing, and increased taxation. They argue that the influx of imported fabric at unusually low prices is making it even harder for local manufacturers to compete and could further discourage domestic cotton production. The industry has also expressed concern over recent heavy rains and the risk of flooding in major cotton-growing areas, warning that adverse weather could damage standing crops and reduce this year’s harvest, highlighting the need for better disaster management, as seen during the recent Emergency Response Committee Reviews Monsoon 2026 Preparedness and Response Strategies.

Calls for Urgent Government Intervention

Textile manufacturers continue to rely on imported cotton to bridge the gap created by declining local production. Industry representatives have urged the government to strengthen monitoring of the Export Facilitation Scheme, ensure fair trade practices, and introduce measures to support Pakistan’s cotton value chain and textile sector.