Lahore [Pakistan], April 5 Despite multiple high-level deliberations, formal policy approvals, and a consensus formula endorsed by the Economic Coordination Committee (ECC), the long-overdue revision in cotton cess rates remains unimplemented, intensifying concerns over the worsening financial health of the Pakistan Central Cotton Committee (PCCC) and hindering revival efforts in the cotton sector, as reported by Dawn.
According to Dawn, the sixth session of the Cabinet Committee on Essential Cash Crops, convened on October 22, 2025, under Deputy Prime Minister Ishaq Dar, reached a unanimous decision to enforce cotton cess collection in line with existing legal provisions and the ECC's 2011 framework.
The committee also approved routing collections through the Federal Board of Revenue (FBR) and supported the signing of a Memorandum of Understanding between the Ministry of National Food Security & Research (MNFS&R), the PCCC, and the FBR. The agreement included provisions for greater industry representation in key decision-making bodies and prioritising research and development funding.
However, implementation has stalled, with the MNFS&R failing to act despite repeated follow-ups from the PCCC. This inaction reflects a broader pattern of delays dating back over a decade.
In 2011, the ECC approved an increase in cotton cess and formed a committee to evaluate research funding needs. The committee recommended raising the cess from Rs 20 to Rs 50 per bale, along with periodic increases of 30 per cent every three years. This proposal was formally adopted by the federal cabinet in 2012, with scheduled increments extending through 2024, as highlighted by Dawn.
Yet, more than 14 years later, the revised rates remain largely unimplemented. Under the approved formula, the cess should now be Rs142.80 per bale, a figure reaffirmed in recent 2025 discussions. An inter-ministerial meeting in December 2025 endorsed a Cotton Revival Plan, but disagreements soon emerged. The All Pakistan Textile Mills Association (Aptma) opposed the official record and suggested limiting the cess to Rs100 per bale. Nonetheless, committee members maintained that the legally established formula must be followed, as reported by Dawn.
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