4 days ago
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- Business Recorder
Punjab seeks tax relief for cotton industry
LAHORE: Punjab Agriculture Minister Syed Ashiq Hussain Kirmani disclosed on Wednesday that talks are underway with the federal government and the prime minister to remove income and sales tax from the cotton industry.
He hoped that these taxes will be removed in the 2025-26 budget with the aim to make cotton farming more profitable for growers. The Minister was addressing a delegation of the Pakistan Cotton Ginners Association which called on him at the Agriculture House. Sharing the strategy adopted by the Punjab government this year to enhance sowing of cotton, the Minister informed the delegation that one million acres of land previously used for rice have been shifted to cotton this year.
The Minister also threw light on Cotton Campaign 2025–26, early sowing, early operation of ginning factories, cotton pricing, taxation on local cotton, and the enforcement of the Cotton Control Act.
During the meeting, the Cotton Ginners Association shared the challenges currently facing the industry. Member of Provincial Assembly Rana Saleem and Punjab Agriculture Secretary Iftikhar Ali Sahoo were also present.
Speaking on the occasion, Minister Kirmani said that cotton is Pakistan's main cash crop. Following the vision of Punjab Chief Minister Maryam Nawaz Sharif, the Agriculture Department has introduced effective measures across the province, especially in South Punjab, to revive and stabilize cotton production. As a result, cotton cultivation has improved significantly, and the area under cultivation has increased. He declared this year as the 'year of cotton revival.'
To promote cotton farming, the Agriculture Department launched a strong awareness campaign. Between February 15 and March 31, an ambitious goal of sowing cotton on one million acres was set and successfully achieved - a milestone not reached in the last 10 years. So far, cotton has been cultivated on 3.3 million out of the targeted 3.5 million acres, and efforts continue to reach four million acres. The department conducts third-party verification to ensure transparency in meeting targets.
The Minister urged ginners to adopt modern technology, noting that many factories still use outdated methods that reduce the international demand for Pakistani cotton. He stressed the need to upgrade ginning processes and assured full government support for introducing new technology in the sector.
Punjab Agriculture Secretary Iftikhar Ali Sahoo said that this year, demonstration plots were established in South Punjab where Integrated Pest Management (IPM) techniques were fully implemented. He also noted that the private sector took responsibility for supporting cotton farming at the tehsil level, setting a positive example.
Copyright Business Recorder, 2025
