logo
Punjab ministers praise provincial budget

Punjab ministers praise provincial budget

LAHORE: The provincial ministers have stressed that the Punjab Budget 2025-26 is not merely a collection of numbers but a concrete commitment to public welfare, prosperity and transparent governance; significant relief has been provided to the people in the Punjab Budget 2025-26
During a post-budget press conference here on Tuesday, Punjab Finance Minister Mujtaba Shuja-ur-Rehman and Punjab Senior Minister Marriyum Aurangzeb reiterated the Chief Minister's clear directives for the timely completion of every project, full transparency, and maximum benefit to the public. The total budget amounts to Rs 5,335 billion, with Rs 1,240 billion allocated specifically for development projects, they added.
Punjab Finance Minister Mujtaba Shuja-ur-Rehman said that, similar to last year, Punjab has once again presented a tax-free budget, with the development outlay amounting to 23 percent of the total provincial budget. He averred that no new taxes will be imposed in the budget for the upcoming fiscal year 2025-26. He described the budget as a historic package for public services. He added that the budget is expected to set new records in development.
He emphasised that the budget was prepared under the direct supervision of CM Maryam Nawaz, ensuring that the needs of all social classes were carefully considered. He further assured that no new taxes have been imposed on the public. 'Measures are underway to expand the tax net through the modernisation of the Punjab Excise and Taxation Department. Additionally, transparency is being enhanced through the implementation of e-governance, e-auctions, and e-tendering to curb corruption,' he added.
Punjab Senior Minister Marriyum Aurangzeb noted that this is the largest development budget in Punjab's history; the CM has introduced an unprecedented development budget, increasing it from Rs 832 billion (allocated in the 2024-25 budget) to Rs 1,240 billion. The Chief Minister has also brought all major development projects under public accountability, setting new standards for good governance, she added.
According to her, significant allocations include Rs 81.1 billion for education, Rs 56.3 billion for healthcare and Rs 81.29 billion for agriculture. Special focus areas, based on the Chief Minister's priorities, include healthcare, education, agriculture, clean drinking water, sanitation and environmental protection. Moreover, as part of the 'Apni Chhat, Apna Ghar' initiative, 50,000 families have already received homes, with construction underway on an additional 100,000 housing units.
On transport, she said that rapid progress is being made on the Automated Rapid Transport (ART) and e-bus projects in Lahore, Faisalabad, and Gujranwala. The Chief Minister has also directed that every city should have access to clean, quality public transport, with 1,100 new buses being added to the fleet this year; 24 electric buses are currently operating in Lahore.
In the education sector, she said, Rs 40 billion is being utilised via school management councils to provide additional classrooms, IT labs and other facilities. Higher education will receive Rs 25 billion, the laptop scheme Rs 15 billion, scholarships for talented students Rs 15 billion, and the school meal programme Rs 7 billion, she added.
'In healthcare, Rs 181 billion has been allocated, including Rs 14.5 billion for the Nawaz Sharif Institute of Cancer Treatment and Research in Lahore, and Rs 8 billion for a new state-of-the-art children's hospital in Rawalpindi. Centres of excellence in nursing will be established in Lahore, Multan, and Rawalpindi, with an allocation of Rs 23 billion,' she stated.
According to her, under social protection, Rs 40 billion has been allocated for a ration card programme, along with prioritised schemes such as Himmat Card, Minority Card and Labour Card to provide immediate relief to vulnerable segments of society. Moreover, the CM Punjab Parwaaz Programme continues to offer technical training and respectable employment opportunities for youth.
Aurangzeb further highlighted that improving the environment has become a mission for the Chief Minister, with Rs 795 billion allocated for this purpose. 'Funds have been designated for the installation of 25 air quality monitoring stations, climate observatories, and the creation of an environmental protection force.'
In a move to revive the film industry, a Rs 7 billion fund has been established. For the welfare of journalists, a Rs 1 billion Journalist Endowment Fund and Rs 400 million for the Journalist Housing Foundation have been allocated, she said, adding that the Punjab Higher Education Commission will allocate Rs 18 billion to universities this year. Rs 40 billion has been earmarked for advanced IT laboratories in schools.
Additionally, Aurangzeb mentioned that the School Nutrition Programme will be expanded to eight districts, with an investment of Rs 148 billion in health and education. 'Rural Health Centres (RHCs) and Basic Health Units (BHUs) will be transformed into Maryam Nawaz Health Clinics. The first Nawaz Sharif Cancer Hospital is also under construction in Lahore.
Copyright Business Recorder, 2025
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Federal govt and provinces: Senate body seeks ‘out of box' fix for NHP dispute
Federal govt and provinces: Senate body seeks ‘out of box' fix for NHP dispute

Business Recorder

time5 hours ago

  • Business Recorder

Federal govt and provinces: Senate body seeks ‘out of box' fix for NHP dispute

ISLAMABAD: The Senate Standing Committee on Power headed by Senator Mohsin Aziz is scheduled to meet on Monday (today) to find out an 'out of box' solution on the dispute on Net Hydel Profit (NHP) between Federal Government and provinces, particularly Khyber Pakhtunkhwa. The Water and Power Development Authority (WAPDA) has reportedly distanced itself from the proposal of out of box solution of current controversy on NHP. Minister for Planning, Development and Special Initiative, Ahsan Iqbal is also heading a committee on this issue. Ministry of Energy (Power Division) is represented by the CEO of CPPA-G and the MD of PPMC The Committee has convened five meetings attended by the representatives of all four Provinces, the Ministry of Energy (Power Division), the Finance Division. Further update on the finalisation may be shared by the Ministry of IPC. KP formulates strategy aimed at recovering NHP dues According to WAPDA, the Council of Common Interests (CCI) based on Article 161(2) of the Constitution determines the sale rate at Bus Bar of hydel power stations. However, calculating NHP has been tricky due to conflicting claims and interpretations of the Kazi Committee Methodology. Various attempts have been made to resolve this, including ad-hoc payments and arbitration, but a long-term solution remains unresolved. After power sector restructuring and becoming NEPRA licencee, WAPDA paid Rs. 6 billion annually to the Govt, of KP as NHP until FY 2014-15, which was later uncapped at Rs 1.10 per kWh by NEPRA in FY 2015-16, following GoKP's request for settlement of all previous NHP arrears by making payments of Rs.70 billion in four installment and notification of uncapped NHP rate of Rs 1.10/kWh-an MoU was signed between Govt of Pakistan and Govt. of KP on February 25, 2016. The MoU was also approved by CCI on February 29, 2016 and later the settlement of Govt of Punjab's claims of Rs.82.71 billion and payment of regular NHP at uncapped rate was also agreed and approved by CCI on December 16, 2016. Despite paying NHP at the uncapped rate that was further enhanced by NEPRA from Rs.1.10/kWh to Rs.1.155/kWh in FY 2017-18 and CCI's overriding of its earlier decision of Jan 1991 regarding KCM through approving the said MoU, the GoKP again raised the issue in CCI and asked for payment of NHP as per KCM. WAPDA argues that considering Deputy Chairman, Planning Commission's report (suggesting WAPDA's replacement with CPPA-G for NHP obligations), ECC's decision of January 24, 2019 (Power Division to lead efforts to secure financing for NHP payments to provinces) and Finance Minister's remarks during 49th CCI meeting (Finance Division is working on clearing NHP outstanding dues of KPK and Punjab, and in future CPPA-G will directly pay NHP to provinces), the Power Division and CPPA-G are in better position to propose an out of box solution for NHP payment . WAPDA doesn't profit from selling power at hydel stations, as NHP is a pass through item and makes the NHP payment to provinces as per government guidelines and regulations. WAPDA's outstanding recovery from CPPA-G against power sales invoices has sharply increased due to delayed payments, hindering WAPDA's ability to make timely NHP payments to provinces, despite regular billing at NEPRA-determined rates. Currently, WAPDA has to pay NHP of Rs.49.565 billion to GoKP and Rs. 114.584 billion (including Rs. 13.617 billion as NHP arrears) to GoPb. WAPDA maintains that Power Division and CPPA-G are in better position to propose an out of box solution for NHP payment. Power Division (Power Planning & Monitoring Company): PPMC has offered the following comments: (i) Article 161(2) of Pakistan's 1973 Constitution requires that net profits from hydroelectric power generation be paid to the province where the power station is located, calculated by deducting operating expenses from bus bar revenue, and explicitly excludes Net Hydel Profit (NHP) as a pass-through cost to electricity consumers ;(ii) KCM calculates NHP by aggregating power generation income, but this approach, formulated in 1985-86 was based on a unified and unbundled WAPDA being the sole power producer and distributor. Now, Pakistan's energy landscape has changed significantly including WAPDA's unbundling, emergence of IPPS, and shifts in the power mix wherein hydro power contributes 27% (approx.) ;(iii) NHP payments should be made through the federal budget or covered by WAPDA's profits from hydropower sales, rather than consumers; (iv) commenting on GoKP's proposal, PPMC is of the view that the transfer of hydropower plants to provinces is governed by the Power Generation policies of 1995 and 2015 that is applicable to BOOT-based IPP projects developed within a province by private sponsors. The WAPDA Act lacks provisions for transferring hydropower plants constructed under its mandate to the provinces, and its projects are primarily financed through PSDP, donor loans, and internal funds, after accounting for NHP; (v) NHP payment through ESCROW account, does not align with the legal and regulatory framework and the constitutional scheme. Regarding wheeling of power from PEDO and wheeling charges determination, B2B electricity supply through wheeling arrangements will be integrated into IGCEP and TSEP under the CTBCM Directive No. 7. NEPRA's periodical regime, determined water usage charges should be reviewed based on the mechanism applied in various countries. Government of Sindh: The Provincial Government submitted proposal regarding transferring Hydro Electric Stations to the respective provinces in lieu of NHP requires clarification as presently no hydro power station is managed in IPPs mode. It further stated that the hydro-electric power generation is a bi-product of 'Water Reservoir Projects (Dams)'. While framing any such proposal, the basic purpose of construction of these reservoirs be considered and IRSA be included in the committee. Govt of Sindh further contended that transfer of Hydro Electric Stations to provinces requires careful consideration of the primary purpose of water reservoir projects. To ensure a comprehensive approach, it is suggested to include representatives from IRSA, Finance Division, and Economic Affairs Division in the committee to provide technical, financial, and economic expertise. Govt of Sindh has reiterated its earlier stance on NHP, reflected in the minutes of 49th CCI meeting which is as follows; 'Chief Minister, Punjab endorsed views of DCPC and asked for early payment of Rs. 58 billion dues of NHP owned to Punjab. The Chief Minister, Sindh, endorsed the NHP claim of Chief Ministers of Khyber Pakhtunkhwa and Punjab being constitutional. He, however, did not support increase in tariff and its passing on to consumers. He said that since profit was utilized by WAPDA it should now be accounted for'. Copyright Business Recorder, 2025

Federal government and provinces: Senate body seeks ‘out of box' fix for NHP dispute
Federal government and provinces: Senate body seeks ‘out of box' fix for NHP dispute

Business Recorder

time7 hours ago

  • Business Recorder

Federal government and provinces: Senate body seeks ‘out of box' fix for NHP dispute

ISLAMABAD: The Senate Standing Committee on Power headed by Senator Mohsin Aziz which is scheduled to meet on Monday (today) to find out an 'out of box' solution on the dispute on Net Hydel Profit (NHP) between Federal Government and provinces, particularly Khyber Pakhtunkhwa. The Water and Power Development Authority (WAPDA) has reportedly distanced itself from the proposal of out of box solution of current controversy on NHP. Minister for Planning, Development and Special Initiative, Ahsan Iqbal is also heading a committee on this issue. Ministry of Energy (Power Division) is represented by the CEO of CPPA-G and the MD of PPMC The Committee has convened five meetings attended by the representatives of all four Provinces, the Ministry of Energy (Power Division), the Finance Division. Further update on the finalisation may be shared by the Ministry of IPC. KP formulates strategy aimed at recovering NHP dues According to WAPDA, the Council of Common Interests (CCI) based on Article 161(2) of the Constitution determines the sale rate at Bus Bar of hydel power stations. However, calculating NHP has been tricky due to conflicting claims and interpretations of the Kazi Committee Methodology. Various attempts have been made to resolve this, including ad-hoc payments and arbitration, but a long-term solution remains unresolved. After power sector restructuring and becoming NEPRA licencee, WAPDA paid Rs. 6 billion annually to the Govt, of KP as NHP until FY 2014-15, which was later uncapped at Rs 1.10 per kWh by NEPRA in FY 2015-16, following GoKP's request for settlement of all previous NHP arrears by making payments of Rs.70 billion in four installment and notification of uncapped NHP rate of Rs 1.10/kWh-an MoU was signed between Govt of Pakistan and Govt. of KP on February 25, 2016. The MoU was also approved by CCI on February 29, 2016 and later the settlement of Govt of Punjab's claims of Rs.82.71 billion and payment of regular NHP at uncapped rate was also agreed and approved by CCI on December 16, 2016. Despite paying NHP at the uncapped rate that was further enhanced by NEPRA from Rs.1.10/kWh to Rs.1.155/kWh in FY 2017-18 and CCI's overriding of its earlier decision of Jan 1991 regarding KCM through approving the said MoU, the GoKP again raised the issue in CCI and asked for payment of NHP as per KCM. WAPDA argues that considering Deputy Chairman, Planning Commission's report (suggesting WAPDA's replacement with CPPA-G for NHP obligations), ECC's decision of January 24, 2019 (Power Division to lead efforts to secure financing for NHP payments to provinces) and Finance Minister's remarks during 49th CCI meeting (Finance Division is working on clearing NHP outstanding dues of KPK and Punjab, and in future CPPA-G will directly pay NHP to provinces), the Power Division and CPPA-G are in better position to propose an out of box solution for NHP payment . WAPDA doesn't profit from selling power at hydel stations, as NHP is a pass through item and makes the NHP payment to provinces as per government guidelines and regulations. WAPDA's outstanding recovery from CPPA-G against power sales invoices has sharply increased due to delayed payments, hindering WAPDA's ability to make timely NHP payments to provinces, despite regular billing at NEPRA-determined rates. Currently, WAPDA has to pay NHP of Rs.49.565 billion to GoKP and Rs. 114.584 billion (including Rs. 13.617 billion as NHP arrears) to GoPb. WAPDA maintains that Power Division and CPPA-G are in better position to propose an out of box solution for NHP payment. Power Division (Power Planning & Monitoring Company): PPMC has offered the following comments: (i) Article 161(2) of Pakistan's 1973 Constitution requires that net profits from hydroelectric power generation be paid to the province where the power station is located, calculated by deducting operating expenses from bus bar revenue, and explicitly excludes Net Hydel Profit (NHP) as a pass-through cost to electricity consumers ;(ii) KCM calculates NHP by aggregating power generation income, but this approach, formulated in 1985-86 was based on a unified and unbundled WAPDA being the sole power producer and distributor. Now, Pakistan's energy landscape has changed significantly including WAPDA's unbundling, emergence of IPPS, and shifts in the power mix wherein hydro power contributes 27% (approx.) ;(iii) NHP payments should be made through the federal budget or covered by WAPDA's profits from hydropower sales, rather than consumers; (iv) commenting on GoKP's proposal, PPMC is of the view that the transfer of hydropower plants to provinces is governed by the Power Generation policies of 1995 and 2015 that is applicable to BOOT-based IPP projects developed within a province by private sponsors. The WAPDA Act lacks provisions for transferring hydropower plants constructed under its mandate to the provinces, and its projects are primarily financed through PSDP, donor loans, and internal funds, after accounting for NHP; (v) NHP payment through ESCROW account, does not align with the legal and regulatory framework and the constitutional scheme. Regarding wheeling of power from PEDO and wheeling charges determination, B2B electricity supply through wheeling arrangements will be integrated into IGCEP and TSEP under the CTBCM Directive No. 7. NEPRA's periodical regime, determined water usage charges should be reviewed based on the mechanism applied in various countries. Government of Sindh: The Provincial Government submitted proposal regarding transferring Hydro Electric Stations to the respective provinces in lieu of NHP requires clarification as presently no hydro power station is managed in IPPs mode. It further stated that the hydro-electric power generation is a bi-product of 'Water Reservoir Projects (Dams)'. While framing any such proposal, the basic purpose of construction of these reservoirs be considered and IRSA be included in the committee. Govt of Sindh further contended that transfer of Hydro Electric Stations to provinces requires careful consideration of the primary purpose of water reservoir projects. To ensure a comprehensive approach, it is suggested to include representatives from IRSA, Finance Division, and Economic Affairs Division in the committee to provide technical, financial, and economic expertise. Govt of Sindh has reiterated its earlier stance on NHP, reflected in the minutes of 49th CCI meeting which is as follows; 'Chief Minister, Punjab endorsed views of DCPC and asked for early payment of Rs. 58 billion dues of NHP owned to Punjab. The Chief Minister, Sindh, endorsed the NHP claim of Chief Ministers of Khyber Pakhtunkhwa and Punjab being constitutional. He, however, did not support increase in tariff and its passing on to consumers. He said that since profit was utilized by WAPDA it should now be accounted for'. Copyright Business Recorder, 2025

Weekly Cotton Review: Market witnesses price fluctuations
Weekly Cotton Review: Market witnesses price fluctuations

Business Recorder

time7 hours ago

  • Business Recorder

Weekly Cotton Review: Market witnesses price fluctuations

KARACHI: During the past week, cotton prices witnessed fluctuations of nearly Rs1,000, while trading volumes showed improvement. However, a concerning 30 percent decline in cotton production has raised alarms within industry circles. In response to the situation, the government has announced the permanent removal of taxes and excise duties on the cotton ginning industry, a move being hailed as positive by stakeholders. Officials from the Pakistan Cotton Ginners Association (PCGA) and the Punjab Crop Reporting Service have emphasized the need for an urgent meeting to address discrepancies in cotton data. Experts stress that accurate data is crucial for stabilizing the market. Meanwhile, new hopes have emerged following a meeting chaired by Ishaq Dar to revive the cotton sector. Head Transfer of Technology Central Cotton Research Institute Multan Sajid Mahmood said that better coordination between the government and industry could help restore stability to the sector. Estimates suggest that import contracts for approximately 65 lakh bales (155 kg each) have been finalized for the 2024-25 season, with an additional 10 lakh bales secured in advance for 2025-26. Agents representing cotton importers say that despite the drop in local production, efforts are underway to meet demand through imports. Several ginning factories are operating partially due to low supply of Phutti caused by unfavourable weather conditions over the past week, leading to relatively lower cotton production. This has left ginners anxious as the season appears to be prolonged. During the week, cotton prices fluctuated by nearly Rs 1,000 per maund. The Pakistan Cotton Ginners Association (PCGA) released production data up to 31st July, indicating a nearly 30 percent decline compared to the same period last year. The Pakistan Business Council (PBC) has demanded the government reconsider the 18% sales tax imposed on cotton yarn and fabric. Due to persistent efforts by APTMA, FPCCI, PCGA, and PBF, the government had imposed the tax on imported cotton yarn and fabric, leading to a rising trend in local cotton prices. Meanwhile, cotton farmers claim they are facing losses at current phutti rates due to high input costs. In Sindh the rate of cotton is in between Rs 16,000 to 16,400 per maund, while the rate of Phutti is in between Rs 6,500 to Rs 7,500 per maund. The rate of cotton in Punjab is in between Rs 16,000 to Rs 16,500 per maund. The rate of Phutti is in between at Rs 6,800 to 7,500 per maund. In Balochistan the rate of cotton is in between Rs 16,000 to 16,300 per maund, while phutti rates stood between Rs 6,800 to Rs 7,400 per maund. The Karachi Cotton Association's Spot Rate Committee closed the spot rate at Rs 16,300 per maund. Karachi Cotton Brokers Forum Chairman Naseem Usman reported mixed trends in the international cotton market. New York cotton futures traded between 66 to 70 cents per pound. According to the USDA's weekly production and sales report, 39,100 bales were sold for the 2024-25 season. Vietnam emerged as the top buyer, purchasing 27,100 bales, while Turkey secured the second position with 13,200 bales. Pakistan ranked third, acquiring 5,800 bales. For the 2025-26 season, sales reached 71,700 bales. Vietnam again led with purchases of 27,400 bales, followed by Honduras in second place with 13,800 bales. Pakistan maintained its third position, buying 5,900 bales. Sajid Mahmood, Head of the Technology Transfer Department at the Central Cotton Research Institute (CCRI) Multan, revealed in a conversation with Business Recorder that this year, cotton arrivals have declined by over 30 percent, reflecting the deteriorating condition of the crop and growing hardships faced by farmers. Sajid Mahmood stated, 'According to the report released by the Pakistan Cotton Ginners Association (PCGA) as of August 1, 2025, only 593,821 bales of cotton have been recorded across the country, compared to 844,257 bales during the same period last year; a deeply concerning drop.' Sajid Mahmood noted that cotton arrivals in Sindh have fallen by 47 percent, with only 292,340 bales recorded this year compared to 551,702 bales last year. 'The situation in Punjab is not much better, where 301,481 bales were reported, indicating a decline of nearly 24 percent from the previous year.' He explained that 'continuous and unexpected rainfall during July severely damaged the cotton crop. The forecast of intensified monsoon activity in August has further added to farmers' concerns. Moisture weakens the plant roots, leads to boll rot, and increases the spread of pests and diseases.' He further pointed out that extreme heat, humidity, attacks by whitefly and other sap-sucking insects, along with the distribution of substandard seeds, are major contributing factors to this year's production decline. Highlighting economic challenges, Sajid Mahmood said, 'The imposition of 18% sales tax on local cotton has drastically reduced farmers' profit margins, while the withdrawal of tax exemptions on imported cotton, yarn, and fabric has benefited spinning mills; but provided no relief to the growers.' Meanwhile, the Agriculture Department of Punjab released its cotton production estimates as of July 31, 2025, highlighting that the figures are derived using internationally recognized, scientifically proven methods. These include randomized sampling and ground truthing techniques widely adopted for yield estimation across various countries. The Crop Reporting Service (CRS) employs GPS-enabled tools and FAO-endorsed methodologies, supported by a real-time digital dashboard that ensures transparency and facilitates evidence-based policy decisions. According to the Crop Reporting Service (CRS), seed cotton in Punjab is projected to reach 609,000 bales based on harvesting data recorded up to July 31, 2025. In contrast, the Pakistan Cotton Ginners Association (PCGA) reports only 301,000 bales, which reflect only the cotton arriving at operational ginning factories in Punjab, regardless of its origin. Moreover, these figures do not account for cotton still held at the farm level, transferred to other provinces, or stored by stockists. Additionally, persistent under-invoicing reports in recent years have also significantly distorted the sanctity of cotton reporting figures at ginning factories. This year, Punjab has achieved remarkable success in cotton cultivation, with early planting carried out on 781,000 acres, contributing to a total sown area of 3.16 million acres. Extensive efforts have been made to support the crop, including enhanced field services, active participation of universities, agricultural interns, and the private sector through the cotton campaign. Additionally, Sahulat Bazaars were established to ensure the timely availability of quality seeds, fertilizers, and pesticides to farmers. Barring slight to moderate impacts from heat waves, rainfall, and localised pest attacks at certain sites, the overall condition of the cotton crop is satisfactory. All-out efforts are being made and will continue to ensure the health of the crop and to secure better prices for farmers. Moreover, to avoid any confusion, the Federal Board of Revenue (FBR) has been requested to implement a foolproof mechanism at all operational ginning factories to ensure accurate and real-time reporting of the cotton received and processed. This step is essential for enhancing transparency, strengthening data integrity, and supporting coordinated efforts across institutions involved in cotton monitoring and policy formulation. The Punjab Agriculture Department has emphatically clarified that the official record of national cotton production is based on crop reporting estimates compiled from all provinces. Therefore, drawing comparisons with the fortnightly data of cotton arriving at ginning factories lacks justification. The Department has reaffirmed its commitment to constructive collaboration with all institutions, including the Pakistan Cotton Ginners Association (PCGA), to safeguard the interests of the public, private stakeholders, and cotton farmers, and to support the development of evidence-based agricultural policies. The full leadership of the Pakistan Cotton Ginners Association (PCGA) met with Provincial Minister for Excise and Narcotics, Mukesh Kumar Chawla, at his office to express their gratitude. The delegation included Vice Chairman Raja Ramesh Kumar Utwani, former Chairman Mahesh Kumar, FPPCI Task Force Chairman Sham Lal Manglani, former Vice Chairman Harish Kumar Vedani, Chandar Lal, Kishan Hamrajani, Dilip Kumar, Ladu Mal, Thal Ram Ladkani, Rajesh Kumar Newand Rai, Sham Lal Mirpurmthelo, and Besham Lal. During the meeting, Mukesh Kumar Chawla announced the permanent abolition of professional tax and excise tax on cotton ginning industries, a move for which the PCGA expressed deep appreciation. The association had also requested the elimination of the market committee fee, to which the minister responded positively, giving hope for a favourable outcome. Sajid Mahmood, Head of the Technology Transfer Department at the Central Cotton Research Institute (CCRI) Multan, in a telephonic conversation with renowned cotton analyst Naseem Usman, stated that cotton is the backbone of Pakistan's economy. Unfortunately, this vital crop has been in steep decline for the past several years. He welcomed the Cabinet Committee meeting held on August 7, 2025, chaired by Senator Ishaq Dar, terming it a positive development. He said the meeting featured comprehensive discussions on cotton production, seed quality, modern technology, climate challenges, and the role of research institutions. The focus on translating policy recommendations into actionable steps rather than mere paperwork reflects the government's serious intent. Sajid Mehmood stressed that research and innovation are indispensable for reviving the cotton sector and emphasized the urgent need for financial support to institutions like the Pakistan Central Cotton Committee (PCCC). He termed the recent MoU signed between PCCC and the All Pakistan Textile Mills Association (APTMA) a significant step forward, noting that its full implementation could help reactivate research activities. Furthermore, he supported the proposed merger of PCCC with the Pakistan Agricultural Research Council (PARC), arguing that this would unify resources, experts, and infrastructure to enable the development of disease-resistant and climate-resilient cotton varieties. Highlighting the central role of seed quality in cotton production, he called for a strict ban on the sale of substandard and uncertified seed varieties. He proposed the establishment of a 'Seed Quality Surveillance System' incorporating DNA fingerprinting, germination tests, varietal purity checks, and a digital traceability system from seed development to market availability. He also stressed the importance of subsidies for small farmers on inputs such as fertilizers, pesticides, and machinery, along with the timely announcement and enforcement of a support price to protect farmers from market uncertainty. In conclusion, Sajid Mehmood emphasized that the textile industry should not be viewed merely as a consumer of cotton but as a collaborative partner in research and development initiatives. He also recommended forming an independent monitoring commission comprising agricultural experts, farmer representatives, and relevant institutions to ensure that cotton revival policies translate into tangible results rather than remaining confined to paper. Copyright Business Recorder, 2025

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store