Climate damage to Pakistan’s cotton crop hits economy

About 2 percent of the estimated 25 million people whose livelihoods are linked with cotton and the textile sector are at risk of losing their jobs this fiscal year. (AFP)
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Updated 19 December 2019

Climate damage to Pakistan’s cotton crop hits economy

  • Erratic weather has crippled the textile sector, resulting in lost revenue and jobs that could cost more than $3 billion

LAHORE: Mahboob Ahmad was so sure he would have a bumper crop of cotton last season that he was planning to finally fix the date of his eldest son’s wedding.

Then unusually heavy rains pelted Khanewal district in eastern Pakistan’s Punjab province, destroying the cotton plants just as they were fruiting.

“All my dreams and plans were shattered,” said Ahmad. “I am so disappointed with this year’s loss that I may quit cotton cultivation from next year.”

Another season of erratic weather has crippled Pakistan’s already ailing cotton sector, resulting in lost revenue and jobs that could cost the economy more than $3 billion by the end of the fiscal year in June 2020, industry experts have warned.

Heavy rains and high temperatures during the whole of the cotton-growing season from April to September severely damaged the crop, said Khalid Abdullah, cotton commissioner and vice president of the Pakistan Central Cotton Committee.

That has put a strain on the entire textile industry.

Most of Pakistan’s cotton is grown in the southern part of Punjab province which experienced unexpectedly high temperatures in August and September, even at night, Abdullah explained.

The rest is mainly cultivated in Sindh province in the southeast.

Together, the heavy rains and dry spells destroyed over a third of the country’s expected cotton harvest, according to the state-run Central Cotton Research Institute (CCRI) in Multan, southern Punjab.

Yet again, Pakistan’s cotton farmers have seen their cash crop devastated by climate extremes, said Abdullah. “The farmers are continuously hit by changing weather conditions,” he said.

Last year the culprit was unusual heat which parched crops and dried up rivers in the two regions.

Cotton is a major driver of the economy, contributing almost 1 percent of GDP, according to the Pakistan Bureau of Statistics.

But this fiscal year, cotton farmers will fall drastically short of the government’s target of 15 million bales.

To meet the demands of its textile industry, Pakistan regularly imports cotton — mainly from Turkmenistan, Uzbekistan and the US, according to the CCRI. By June, the country will have to bring in at least 6 million bales — almost double what it imported last financial year, said Shahid Sattar, executive director of the All Pakistan Textile Mills Association (APTMA).

Importing cotton is expensive, which pushes up the overall cost of textile production, he explained.

Figures from the APTMA show that cotton, the main raw material for the textile industry, accounts for about 70 percent of the basic cost of the final garment.

“Failure of the cotton crop translates into damage to the country’s economy,” Sattar said.

Pakistan’s Economic Survey 2018-2019, published in June this year, said climate change poses “a serious challenge” to agriculture.

For the past decade or so, Pakistan’s cotton industry has been struggling to adapt. Production fell by more than a quarter from 2011 to 2019, according to the CCRI.

This year, Pakistan’s ranking among cotton-producing nations dropped from fourth to fifth behind Brazil, the US, China and India, showed data from the Washington-based International Cotton Advisory Committee.

Employment will also take a hit, Sattar warned.

About 2 percent of the estimated 25 million people whose livelihoods are linked with cotton and the textile sector are at risk of losing their jobs this fiscal year, he said. “This low (cotton) production will definitely ... result in a burden on our fragile economy,” said Abid Qaiyum Suleri, executive director of the Sustainable Development Policy Institute, an independent think-tank in Islamabad.

Much of that burden falls on farmers, Suleri noted, as one poor cotton crop after another eats away at their standard of living.

Farmers often rely on the money they make from cotton to procure what they need to cultivate other crops for the rest of the year, he explained.

“If one crop is affected, it affects other crops as well because farmers have to buy inputs like seeds, fertilizers and water,” he said.


MoU signed to facilitate investment in Saudi Arabia

Updated 21 February 2020

MoU signed to facilitate investment in Saudi Arabia

RIYADH: The Saudi Arabian General Investment Authority (SAGIA) and the Diriyah Gate Development Authority (DGDA) signed a memorandum of understanding (MoU) to step up cooperation, the Saudi Press Agency reported on Thursday.

Under the MoU, the two authorities will establish a joint working group to boost cooperation in several areas including facilitation provided to investors, conducting economic studies of the market, building partnerships with commercial and industrial bodies and local companies, launching businesses, promoting the ease of doing business, providing logistic support, participating in local and international exhibitions, forums and special visits and exchanging knowledge and information.

All this will predominantly be in aid of attracting local and foreign investors. 

“SAGIA believes in the importance of such cooperation that can unify and multiply the efforts in a way that sets the world’s attention on the Kingdom’s cultural and heritage treasures and investment opportunities,” said SAGIA Gov. Ibrahim Al-Omar.

“This is done through close cooperation with DGDA to highlight these opportunities and market them internationally and locally. This MoU is a step in the right direction to achieve the objectives and directives of both bodies.”

Jerry Inzerillo, CEO of the DGDA, said: “Cooperating with SAGIA is one of the most important international investment motors to attract local and international investments to the Kingdom. This comes at a time where developing the Kingdom’s investment infrastructure is found within the objectives of its Vision 2030.

“At DGDA, we aim at attracting the best technologies and regional and international investments to the Kingdom. This will contribute to the improvement of the local economy and promote our objectives seeking to turn Diriyah into the Kingdom’s gem and an international economic tourist destination,” he added.