A historic heatwave, compounded by zero rainfall and severe water shortages, is pushing Pakistan's cotton sector toward an unprecedented collapse. Ginning factories and textile mills are shutting down across the country, raising fears of a massive surge in expensive imports and widespread job losses. Main Developments Record-breaking temperatures have caused widespread wilting and severe pest infestations—including mites and lice—that are stunting plant growth and compromising both yield and fibre quality. The supply shock has sent lint prices skyrocketing, with a jump of Rs400 per maund in a single week, reaching Rs18,200 in Punjab and Rs17,700 in Sindh. In Tando Adam, a major cotton hub in Sindh, ginning factories have closed just a month after starting operations. Meanwhile, in Rahim Yar Khan—Punjab's second-largest cotton zone—not a single ginning factory is operational by the second week of July, a bleak first in fifteen years. Read also: Re-polling Confirms PPP, IPP Wins in Gilgit-Baltistan Seats Background The crisis is rooted in a combination of extreme weather and longstanding structural issues. Soaring temperatures, zero rainfall, and severe canal water shortages—particularly in Sindh—have pushed the cotton crop to the brink. Compounding the environmental disaster is a staggering 86% sales tax burden on the ginning sector, which went entirely unaddressed in the new federal budget. Cotton Ginners Forum Chairman Ihsanul Haq has criticized the government's fiscal priorities, noting that while governments worldwide promote domestic production, Pakistan has allocated over Rs800bn for charity schemes instead of industrial development. He argues that this capital could have fully revitalized over 1,600 major industrial units in a single year. Why It Matters The collapse of cotton production threatens Pakistan's textile backbone, a critical source of exports and employment. As more textile mills go dysfunctional, industry experts warn of a looming wave of mass unemployment. The sudden need for expensive imports will further strain the economy, deepening reliance on external lenders like the International Monetary Fund. The Punjab Agriculture Department has issued an emergency advisory, urging farmers to shorten irrigation intervals, reduce water volume per cycle, and apply micronutrients like boron and potassium nitrate to shield plants from heat stress. But these measures may only offer limited relief against a systemic crisis. What's Next Brokers warn of further price hikes in the coming days as cotton arrivals at processing centres remain scarce. The Cotton Ginners Forum has urged federal and provincial authorities to pivot toward business growth, arguing that reviving the industrial sector is the only sustainable way to repair the economy. Without immediate policy intervention, the sector faces a historic plunge that could reshape Pakistan's agricultural and industrial landscape.