Lahore [Pakistan], April 5 (ANI) Despite multiple high-level meetings, formal approvals and a consensus formula endorsed by the Economic Coordination Committee (ECC), the long-overdue revision of cotton cess rates has not been implemented, worsening the financial condition of the Pakistan Central Cotton Committee (PCCC) and hampering efforts to revive the sector, Dawn reports.
The sixth session of the Cabinet Committee on Essential Cash Crops, held on October 22, 2025 under Deputy Prime Minister Ishaq Dar, unanimously decided to collect cotton cess in accordance with existing legal provisions and the ECC’s 2011 framework. The committee approved routing collections through the Federal Board of Revenue (FBR) and supported signing a Memorandum of Understanding between the Ministry of National Food Security & Research (MNFS&R), the PCCC and the FBR. The agreement also included greater industry representation in key bodies and prioritisation of research and development funding.
Implementation has, however, stalled, with the MNFS&R failing to act despite repeated follow-ups from the PCCC, reflecting a pattern of delays stretching back more than a decade. In 2011 the ECC approved raising the cess and formed a committee to assess research funding needs; that committee recommended increasing the cess from Rs20 to Rs50 per bale with 30 percent rises every three years. The federal cabinet adopted this formula in 2012 with scheduled increments through 2024, but the revised rates remain largely uncollected.
Under the established formula the cess should now be Rs142.80 per bale, a figure reaffirmed in 2025 discussions. An inter-ministerial meeting in December 2025 endorsed a Cotton Revival Plan, but disagreements followed: the All Pakistan Textile Mills Association (Aptma) challenged the official record and proposed capping the cess at Rs100 per bale, while committee members insisted the legally set formula must be implemented. (ANI)
(This content is sourced from a syndicated feed and is published as received. The Tribune assumes no responsibility or liability for its accuracy, completeness, or content.)
