US Cotton, Soybean imports likely to rise in Pakistan

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US Cotton, Soybean imports likely to rise in Pakistan
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Islamabad: Pakistan is considering increasing its imports of cotton and soybean from the United States to meet rising domestic demand and counter agricultural shortfalls caused by climate-related challenges, officials familiar with the matter said.

The move comes as Pakistan’s textile and livestock sectors face supply pressures due to erratic weather conditions, lower-than-expected crop yields, and global commodity price fluctuations. According to industry sources, the government is currently in talks with U.S. trade representatives to secure larger volumes of high-quality cotton and soybean under favorable trade terms.

"Given the challenges in our agricultural output, particularly in cotton and oilseed production, increasing imports from the U.S. is a practical step to ensure raw material availability for our key industries," a senior official at Pakistan’s Ministry of Commerce said on condition of anonymity.

Cotton remains a vital raw material for Pakistan’s textile sector, which accounts for more than 60% of the country’s exports. However, domestic cotton production has declined in recent years due to pest attacks and flooding, prompting the government to look overseas to fill the gap. The United States is one of the world’s largest exporters of raw cotton and soybean, making it a strategic supplier.

Meanwhile, demand for soybean is also surging, driven by the poultry and livestock industries. Soybean meal is a key ingredient in animal feed, and Pakistan’s local production does not meet its growing consumption needs.

Analysts say that deepening trade ties with the U.S. in agriculture could be mutually beneficial. “Pakistan can stabilize input prices for its industries, while U.S. exporters gain greater access to a significant market in South Asia,” said Dr. Asma Shahid, an agricultural economist at the University of Punjab.

The talks are expected to continue over the coming weeks, with announcements likely after final agreements on volume, pricing, and logistics. If finalized, the expanded imports could begin as early as the second half of 2025.

 

Pakistan State Time is a versatile digital news and media website that covers all latest news developments on 24/7 basis.

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