ILO report exposes challenges in Pakistan’s cotton supply chain

Pakistan’s cotton sector is struggling with low yields, climate change, and outdated farming practices, according to a new International Labour Organization (ILO) report. The study highlights how small farmers and workers remain vulnerable despite the industry’s economic significance.

Cotton arrivals fell 34 per cent year-on-year to 5.51 million bales till January 31, 2025, as per Arif Habib Limited. Punjab saw a 36 per cent decline, while Sindh’s arrivals dropped 32 per cent but, for the first time, surpassed Punjab’s output. Rising costs, weak policies, and poor farmer economics are driving the crisis.

The report reveals that many farmers depend on informal credit, lack modern equipment, and are shifting to crops like wheat and sugarcane for better returns. Workers face low wages, job insecurity, and unsafe conditions, with female workers bearing additional burdens. Child labour remains prevalent, and forced labour practices persist in parts of the supply chain.

While policy efforts have improved yields, human resource development remains neglected. The ILO urges stronger interventions, social protections, and investment in workers’ welfare to ensure fair labour conditions and long-term sustainability in Pakistan’s cotton industry.