Lahore [Pakistan], April 5 (ANI) — Despite repeated high‑level meetings, formal approvals and a consensus formula endorsed years ago, the long-delayed revision of cotton cess rates has not been implemented, further straining the Pakistan Central Cotton Committee’s (PCCC) finances and undermining efforts to revive the sector.
On October 22, 2025 the sixth session of the Cabinet Committee on Essential Cash Crops, chaired by Deputy Prime Minister Ishaq Dar, unanimously decided collections should follow existing legal provisions and the Economic Coordination Committee’s (ECC) 2011 framework. The committee approved channeling cess receipts through the Federal Board of Revenue (FBR) and backed a Memorandum of Understanding among the Ministry of National Food Security & Research (MNFS&R), the PCCC and the FBR. The agreement also called for greater industry representation in key bodies and prioritising research and development funding.
Implementation, however, has stalled. The MNFS&R has not taken the required steps despite repeated follow-ups from the PCCC, a continuation of delays that officials say stretch back more than a decade.
The background: in 2011 the ECC approved raising the cess and set up a committee to determine research funding needs. That committee recommended increasing the cess from Rs20 to Rs50 per bale with 30 percent increases every three years. The federal cabinet adopted that formula in 2012, scheduling increments through 2024, but the revised rates were largely not collected.
Under the adopted formula the cess should now be Rs142.80 per bale, a figure reconfirmed during 2025 discussions. An inter‑ministerial meeting in December 2025 endorsed a Cotton Revival Plan, but consensus broke down afterward. The All Pakistan Textile Mills Association (Aptma) disputed the official record and proposed capping the cess at Rs100 per bale, while committee members insisted the legally prescribed formula must be applied.
PCCC officials say the continued non‑collection of the higher cess has left the committee financially weakened, limiting its ability to fund research and support measures intended to boost cotton production and industry sustainability.
(This report is sourced from a syndicated feed and published as received. The Tribune assumes no responsibility for the accuracy, completeness or content of the material.)
