Pakistan

Karachi: Cotton remains the backbone of Pakistan’s economy, supporting millions of farmers and powering the country’s massive textile export industry. However, the cotton market on December 3, 2025 reflects a challenging phase marked by low international prices, heavy reliance on imports, and pressure on farmer incomes. While sowing progress for the current season has been encouraging, the economic impact of weak global demand and last year’s production shortfall is still being felt across the supply chain. This detailed cotton market update explains what is happening in Pakistan’s cotton sector today, how global trends are influencing local prices, and what it means for farmers, traders, and textile exporters. Global Cotton Prices Continue to Weigh on Pakistan: International cotton markets remain under pressure, limiting any meaningful recovery in domestic prices. The Cotlook A Index, which serves as the global benchmark, is hovering near 75 cents per pound, far below last year’s level of around 82 cents. This sharp year-on-year decline shows how weak global textile demand has become due to slow retail sales and economic uncertainty in major importing countries. Similarly, cotton futures on the New York exchange are trading in the mid-60 cent per pound range, reflecting cautious buying and the absence of strong speculative interest. Prices in China remain relatively high due to government reserve policies, while India’s Shankar-6 cotton has dropped sharply, making Indian exports more competitive in the global market. Brazilian cotton is also being offered at lower rates, adding to the pressure on Asian suppliers like Pakistan. For Pakistan, these global conditions mean that local cotton rates cannot rise significantly, even when domestic supply tightens. Karachi Cotton Market Under Pressure: In the domestic market, rates set by the Karachi Cotton Association show that lint cotton is trading around PKR 15,300 per maund, which is equivalent to nearly 61.5 cents per pound. On the same date last year, prices were close to 76 cents per pound, indicating a steep decline in farmer returns. While lower prices reduce costs for textile mills, they severely impact:• Farmer profitability• Ginners’ margins• Rural purchasing power This is one of the main reasons many farmers have been shifting away from cotton to alternative crops in recent years. Cotton Sowing Shows Improvement in 2025-26: Despite pricing pressures, the current cotton sowing season shows a relatively positive trend. Pakistan set a national target of 2.260 million hectares for the 2025-26 season. As of the latest estimates, about 89% of the total target has already been achieved.• Punjab has achieved around 90% of its target• Sindh stands close to 89%• Balochistan is near 76%• Khyber Pakhtunkhwa remains marginal in cotton cultivation This improved sowing performance reflects better early weather conditions and higher cost of alternative crops. However, final production will depend on:• Weather during picking• Pest control• Availability of quality water• Input costs such as fertilizer and diesel Last Season’s Cotton Production Shortfall Still Hurting the Economy: The negative economic impact of the 2024-25 cotton crop failure is still being felt. Against a national production target of nearly 11 million bales, Pakistan produced only about 7 million bales. This massive shortfall forced the country to import record quantities of cotton to keep textile mills running. Punjab and Sindh, Pakistan’s two main cotton-producing provinces were hit hard by:• Climate stress• Pest attacks• High farming costs• Water shortages As a result, Pakistan’s dependence on imported cotton sharply increased, directly affecting the trade balance. Seed Cotton Arrivals Remain Nearly Flat: As of mid-November 2025, total seed cotton arrivals across Pakistan are just under 4.9 million bales, almost unchanged compared to the same period last year. Most of the cotton is being bought by local textile mills, while exports of raw cotton remain negligible. Unsold stocks are still present in the market, showing that:• Mills are buying only as per immediate needs• Traders remain cautious due to uncertain price direction• Future demand is being driven strictly by export orders According to the Pakistan Cotton Ginners Association, the steady flow of arrivals suggests adequate short-term supply, which is also limiting any sharp rise in prices. Current Seed Cotton, Lint & By-Product Prices in Pakistan: Across major producing regions, seed cotton prices are moving in a wide band between PKR 6,400 and PKR 7,700 per 40 kg, depending on quality and location. Raw lint cotton is averaging around PKR 15,500 per maund nationwide. Cotton by-products are also holding steady:• Cotton seed: around PKR 3,100 to 3,200 per 40 kg• Cotton seed cake: roughly PKR 3,200 to 3,300 per 40 kg These by-products are crucial for Pakistan’s edible oil and livestock feed industries, and stable prices are helping keep inflation in check in these segments. Cotton Imports Surge, Exports Collapse: The most alarming indicator for Pakistan’s cotton economy is the sharp imbalance in trade. During the first four months of 2025-26, Pakistan imported nearly 300,000 metric tons of cotton, while exports of raw cotton were almost non-existent. For the full 2024-25 fiscal year, cotton imports crossed 680,000 metric tons, while exports dropped to only a few hundred tons. This dramatic shift has:• Increased the current account burden• Raised pressure on the Pakistani rupee• Exposed the textile sector to global price volatility Pakistan is now relying heavily on cotton from:• Brazil• The United States• Central AsiaThis import dependence is a major structural challenge for the economy. Impact on Pakistan’s Textile & Export Sector: Cotton prices directly determine the cost structure of Pakistan’s:• Spinning industry• Weaving and processing units• Garment export sector While lower cotton prices support mill profitability in the short term, they also signal weak global demand for textiles and apparel. If export orders remain slow, mills may reduce production, affecting:• Employment• Energy consumption• Tax revenues• Export earnings At the same time, low farm prices discourage cotton cultivation, creating long-term supply risks. Cotton Market Outlook for Pakistan: In the near term, Pakistan’s cotton market is expected to remain range-bound with a slightly bearish tone. Price recovery will depend on:• Improvement in global retail demand• Stability in the rupee–dollar exchange rate• Weather conditions

Karachi: Pakistan has set an ambitious target to increase its fruit, vegetable, and value-added agricultural exports from $700 million to $2 billion within the next three years, following the completion of a comprehensive export growth strategy. This was announced by Pakistan Fruit and Vegetable Exporters, Merchants Association (PFVA) Patron-in-Chief Waheed Ahmed during a press conference at the PFVA office, alongside Trade Development Authority of Pakistan (TDAP) Secretary Shehryar Taj. Waheed Ahmed said the new roadmap has been finalized with close coordination between Pakistan Horticulture Development Company (PHDC) and TDAP to strengthen Pakistan’s agricultural economy and aggressively pursue export targets. He added that all four provinces and Gilgit-Baltistan have been given representation in PHDC to ensure inclusive agricultural development. FoodAg Pakistan 2025 Delivers Strong Export Results: Highlighting the success of the recently held Food & Agriculture Exhibition, Waheed Ahmed revealed that the event generated $35 million in immediate export orders, with Pakistani exporters securing first-time shipments to the United Kingdom, Germany, and Oman. He said the exhibition played a vital role in showcasing Pakistan’s agricultural potential on the global stage. This year, 25 Pakistani fruit and vegetable exporting companies participated, while buyers from 35 countries showed strong interest in Pakistan’s fresh produce and value-added food products. Record Global Participation and Business Deals: Speaking at the same press conference, TDAP Secretary Shehryar Taj described FoodAg Pakistan 2025 as the most successful edition in the event’s history. “The exhibition not only highlighted the true global potential of Pakistan’s agro-food sector but also opened new doors for international cooperation, partnerships, and sustainable growth,” he said. According to TDAP:• Over 370 exhibitors from across Pakistan participated• More than 20 agro-food sub-sectors were represented, including fruits and vegetables, rice, agri-tech, seafood, meat and poultry, dairy, spices, processed foods, beverages, honey, dry fruits, oilseeds, and tobacco• 850+ international buyers and delegations from 80+ countries attended• A record 5,700+ B2B meetings were held• Total confirmed and expected business deals reached $730 million These figures establish Pakistan as a reliable and growing partner in the global agri-food supply chain, Taj added. Strengthening Pakistan’s Global Agri Export Position: TDAP officials said this success reflects the authority’s continued focus on innovation, sustainability, and export diversification within the agricultural sector. With consistent policy support and private sector collaboration, Pakistan is positioning itself as a competitive global exporter of high-quality horticulture and food products.

The State Bank of Pakistan (SBP) has officially implemented the exemption of the 0.25% Export Development Surcharge (EDS) on all exported goods, as per the Federal Government’s S.R.O 2335(I)/2025 dated December 1, 2025. This move withdraws previous SBP circulars immediately, providing significant relief to exporters by reducing business costs and enhancing global competitiveness. Khurram Schehzad, Advisor to the Finance Minister of Pakistan said the Federal Government has exempted all exported goods from Export Development Surcharge levied under sub section (1) of section 11 of the Finance Act 1991, with immediate effect, see the notification attached by the State Bank of Pakistan. Accordingly, the SBP’s Circular Letters stand withdrawn immediately. Decision taken by the Prime Minister in a few days of forming the focused Working Groups with the Private Sector in the lead, to revoke the Export Development Surcharge, amongst other key restructuring decision, including giving charge of hanging export development fund to the exporters, has now been implemented as well. The speed of decision and implementation has shown the will and committment of the Government of Pakistan to reduce cost of doing business while providing an enabling environment for investors and exporters.

Islamabad: Bilal Bin Saqib, Pakistan’s Minister of State for Crypto and Blockchain, has resigned from his position as Special Assistant to the Prime Minister (SAPM) owing to bureaucratic hurdles. The move stems from the Rules of Business 1973, which prohibit holding the SAPM role while chairing a statutory body like the Pakistan Virtual Assets Regulatory Authority (PVARA), of which Saqib remains chairman. Rumors of the crypto ministry’s shutdown spread rapidly on WhatsApp, but a staffer clarified that developments continue, with Saqib scheduled to speak at Binance Blockchain Week in Dubai on December 3. His profile was removed from the Cabinet Division website, igniting social media chatter. Journalist Shahzad Paracha posted on X: “Has Bilal Bin Saqib’s state minister position been revoked? Profile deleted from cabinet division website,” noting PVARA’s finalized crypto rules and impending notification. Appointed in May 2025, Saqib spearheaded Pakistan’s blockchain strategy, establishing PVARA and the Pakistan Crypto Council. With over 50 million crypto users and $300 billion in annual trading, Pakistan ranks top 5 globally in adoption, bolstered by its youthful demographic—70% under 30—and third-largest freelancer market. A Forbes Under 30 alum and MBE recipient from King Charles III for humanitarian work like One Million Meals during COVID-19, Saqib founded Tayaba to address water crises via the H2O Wheel. Reddit users speculated on his vested interests in crypto businesses, calling his tenure promotional amid unregulated markets. Analysts see this as a regulatory alignment, potentially speeding crypto legalization without performance concerns.

Karachi: Faysal Bank Limited (FBL), in partnership with PayPak and Mastercard, has unveiled Pakistan’s first PayPak–Mastercard Co-Badge Debit Card, a landmark development for the country’s payments ecosystem. The new card brings together the global acceptance and security of Mastercard with the reliability and cost-efficiency of PayPak, supporting the State Bank of Pakistan’s (SBP) vision of a robust and self-reliant domestic payments infrastructure. The launch underscores Faysal Bank’s commitment to advancing digital transformation and financial inclusion by offering customers seamless payment capabilities at home and abroad. Powered by PayPak’s homegrown infrastructure and Mastercard’s international network, the co-badge card provides secure, interoperable, and globally connected payment options. The event was attended by the Governor State Bank of Pakistan, Mr. Jameel Ahmad as Chief guest along with Mr. Saleem Ullah Deputy Governor State Bank of Pakistan and the senior leadership of Faysal Bank Limited, Paypak , MasterCard & Euronet, highlighting the strategic importance of this collaboration in shaping Pakistan’s digital payments future. Mr. Jameel Ahmad, Governor State Bank of Pakistan expressed his views;“Today’s co-badging initiative is a step forward towards developing mutually beneficial partnerships between international and domestic payments schemes that can create better value for all stakeholders. I congratulate Faysal Bank, Mastercard, and 1Link on taking this initiative. SBP would continue to ensure a level playing field for all the payment system players, including the international payment schemes. The future of our payments system lies in a strong, interoperable, secure and self-sustaining digital payments infrastructure that supports financial inclusion and facilitates sustainable and inclusive economic growth.” Speaking at the ceremony, Mr. Yousaf Hussain, President & CEO of Faysal Bank, said;“We feel honored to pave the way for fostering digital payments in Pakistan by launching PayPak Mastercard Co-Badge Debit Card at Faysal Bank, that marks the next chapter in Pakistan’s payments evolution. This is another industry first product similar to Faysal Bank’s flagship Noor card, the only Shariah-compliant credit card available in the market. This milestone reflects the growing strength of our domestic payments ecosystem, the value of collaboration between local institutions and global partners, our commitment as a bank and as a wider industry to provide customers with secure, modern, internationally accessible digital payment solutions as envisioned by the State Bank of Pakistan.” Through this initiative, Faysal Bank continues to lead in Shariah-compliant and digitally innovative banking, reinforcing its mission to provide future-ready solutions that empower customers and strengthen Pakistan’s evolving payments landscape.

Karachi: The Pakistani rupee appreciated 0.09% or Re0.26 against the US dollar in early inter-bank trading on Tuesday, reaching 280.25 by 10:00 AM. The local currency had closed at 280.51 on Monday. The greenback remained under pressure globally after US manufacturing contracted for a ninth straight month, with the ISM PMI falling to 48.2 in November. Weak new orders, employment, and persistent tariff drag intensified bets on a Federal Reserve rate cut. Markets now assign an 88% probability of a 25-bp reduction at the Fed’s December 10 meeting, up from 63% a month ago. The US Dollar Index slipped to 99.408, marking its seventh straight decline. Meanwhile, oil prices rose for a second day amid Ukrainian strikes on Russian energy infrastructure and escalating US-Venezuela tensions, indirectly supporting emerging-market currencies including the rupee.

Lahore: Federal Interior Minister Mohsin Naqvi on Tuesday categorically stated that no passenger possessing complete and genuine travel documents is being offloaded or will ever be stopped from travelling abroad.During a surprise visit to Allama Iqbal International Airport, Lahore, the minister reviewed FIA immigration counters and issued strict instructions: passengers carrying bogus or incomplete documents will “absolutely not” be allowed to travel. “Pakistan’s honour is the honour of all of us. Anyone who brings dishonour to the country cannot be permitted to leave,” Naqvi declared.The statement comes amid recent social media allegations of arbitrary offloading, which the FIA has already termed “fabricated and misleading.” The agency clarified that only travellers with legitimate purpose and verified documents are cleared.Minister Naqvi praised the FIA’s newly integrated high-speed system linking travel history with CNIC and passport data, reducing clearance time to as little as two minutes. Interacting directly with departing and arriving passengers, he received widespread appreciation for the improved experience.Commending FIA Director Ali Zia and his team, Naqvi stressed continued vigilance against human trafficking and illegal agents while ensuring genuine travellers face no inconvenience.

Islamabad: Pakistan’s trade deficit ballooned by 32.8% year-on-year to $2.855 billion in November 2025, marking the second-highest monthly deficit in the last five months, according to data released by the Pakistan Bureau of Statistics (PBS) on Tuesday.The sharp widening came on the back of a 15.4% annual drop in exports to $2.398 billion from $2.833 billion in November 2024, while imports rose 5.4% to $5.253 billion from $4.983 billion a year earlier.On a month-on-month basis, however, the trade gap narrowed 11.9% from $3.239 billion in October 2025, as both exports and imports declined sequentially.For the first five months of FY2025-26 (July–November 2025), the cumulative trade deficit swelled 37.2% to $15.469 billion compared with $11.277 billion in the corresponding period last year. During this period:Exports contracted 6.4% to $12.844 billion from $13.721 billionImports jumped 13.3% to $28.313 billion from $24.998 billionThe latest monthly figures place November 2025’s deficit just behind the $3.0 billion-plus gap seen earlier in the fiscal year, underscoring persistent pressure on the external account despite some monthly improvement.Analysts attribute the export decline to weak global demand, energy shortages, and competitiveness challenges, while import growth continues to be driven by machinery, petroleum, and food items despite administrative curbs.The deteriorating trade balance has also contributed to a sharp widening of the current account deficit, which surged 256% in the first four months of FY26.The State Bank of Pakistan and the Ministry of Commerce are expected to face renewed calls for urgent export-boosting measures and import rationalization to arrest the rapid depletion of foreign exchange reserves.

KARACHI: Chairman Businessmen Group (BMG) Zubair Motiwala and President Karachi Chamber of Commerce & Industry (KCCI) Muhammad Rehan Hanif have expressed profound grief, shock, and deepest sympathies with the bereaved family of three-year-old Ibrahim, who tragically lost his life after falling into an open manhole near NIPA Chowrangi in Gulshan-e-Iqbal.In a joint statement, Zubair Motiwala and Rehan Hanif said that the horrifying manner in which the innocent child disappeared in front of his parents has shaken the conscience of the entire city, adding that this tragedy is not merely an unfortunate incident but a glaring example of the criminal negligence and administrative collapse that Karachi continues to suffer.They lamented that despite the incident occurring around 11 p.m., the rescue operation remained painfully slow and disorganized, with authorities failing to provide adequate machinery or timely assistance. The family and locals, they noted with distress, were forced to arrange machinery on their own, while the official rescue teams stood helplessly without equipment. The operation was even suspended during the night due to lack of resources, and only after public protest and outrage did heavy machinery finally arrive at the scene. They termed it heartbreaking and unforgivable that the child remained unlocated for fourteen long hours, only to be recovered nearly one kilometer away after being swept through the drainage system. They further noted that this is not an isolated case as Karachi has witnessed numerous similar deaths over the past few years due to open manholes, broken covers, and unsafe drainage points, resulting in an estimated fifteen to twenty casualties annually, many of them young children. They said that these recurring incidents expose the deep-rooted structural negligence in Karachi’s civic management, where public safety is consistently ignored and accountability is nonexistent. Every year, families are destroyed, children are buried, and yet nothing changes. Karachi has become a city where even a walk on the road has become a life-threatening risk, they added with deep frustration.They further said that this tragedy must serve as a wake-up call for the authorities. They stressed that those responsible for the negligence that led to Ibrahim’s death must be immediately identified and held accountable, without excuses or political maneuvering. They urged the government to initiate a comprehensive citywide inspection of all manholes, drains, and open pits across Karachi, irrespective of which agency controls which jurisdiction. Strong, tamper-proof covers must be installed immediately and the government must streamline responsibilities among civic bodies to eliminate confusion during emergencies.Zubair Motiwala and Rehan Hanif said that the tragic death of young Ibrahim is a painful reminder of how unsafe and poorly managed Karachi has become. They stated that the business community of Karachi stands firmly with the bereaved family and demands urgent reforms to prevent such incidents in the future. They further voiced grave concerns over the horrendous condition of major arterial roads, particularly University Road, Bara Board, Yasinabad and Karimabad Underpass etc. which he said have virtually ceased to exist due to prolonged and unplanned excavation, broken surfaces, standing water and abandoned construction work. They emphasized that these unsafe and chaotic road conditions are directly contributing to fatal accidents, injuries, and loss of precious lives as citizens navigate dangerously damaged stretches amidst speeding dumpers, water tankers, and unregulated traffic.Chairman BMG and President KCCI appealed Mayor Karachi Barrister Murtaza Wahab to immediately expedite all incomplete development work and publicly announce a clear and specific timeline for the completion of these critical road projects.