Pakistan Pakistan Economy Updates

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Cotton’s yield challenges

Increasing seed productivity requires new genetic material and certification to protect existing varieties.

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Independent data bears out the scale of the productivity gap. According to the International Cotton Advisory Committee’s 2025 data book, covering the 2024 harvest, Pakistani farmers produce roughly 1.7 tonnes of seed cotton per hectare, against 6.6 tonnes in China and 5.1 tonnes in Australia. In lint terms, the country’s average yield is about 734kg per hectare, or less than a third of China’s 2,125kg and Australia’s 2,265kg. Closing even part of that gap, without adding a single acre, could substantially lift national output, argues Malik.

His argument is that Pakistan has largely exhausted the yield potential of its existing cotton germplasm and needs new genetic material from abroad. He points to South Xinjiang in China, where — according to Guard Agri’s research — cotton varieties yield between 75 and 100 maunds per acre under summer temperatures comparable to South Punjab’s. “We need to test their adaptability here,” he says, cautioning that soil and climatic differences mean nothing can simply be transplanted without local trials.

“It is essential to introduce varieties yielding over 50 maunds in Pakistan,” he says. “We need a revival here, a revolution in cotton where varieties yielding above 50 maunds start coming in. We are working on that.”

Corruption and Adulturation is the biggest hurdle to overcome.

 

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Exports raise food security fears | The Express Tribune

Exports raise food security fears

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LAHORE:
Punjab, long regarded as Pakistan's food basket, remains directly in the spotlight for international markets seeking long-term food security. Middle Eastern destinations, Central Asian economies and China continue to press local policymakers and private entities for diversified agricultural and livestock shipments. Yet a fundamental question lingers: as foreign demand swells, is Pakistan truly ready to step up as a global supplier without starving its own population?

 

[Fatman17]

The government on Tuesday raised the price of petrol by Rs1.08 per litre and that of high-speed diesel (HSD) by Rs0.51 per litre.

Following the revision, petrol will retail at Rs343.87 per litre while HSD will cost Rs370.92 per litre. The government continues to levy Rs114 per litre in taxes and duties on petrol and Rs100 per litre on diesel.

According to the Petroleum Division’s notification, the new prices will be applicable on September 2 (Wednesday).

Read more: https://www.dawn.com/news/2026676

30% are taxes

 

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Inflation rebounds to 11pc in August

Food and fuel costs put pressure on household budgets.

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ISLAMABAD: Consumer inflation rose to 11.1 per cent in August from 9.2pc a month earlier, driven mainly by higher food and energy prices, according to data released by the Pakistan Bureau of Statistics (PBS) on Tuesday.

The reversal in inflation, measured by the Consumer Price Index (CPI), after two consecutive months of decline indicates that last month’s increase in petrol and diesel prices pushed up transportation costs. The daily price adjustments are, in fact, accelerating overall inflationary pressures. On a month-on-month basis, inflation increased by 1.2pc compared to the previous month.

In FY26, inflation was recorded at 7.05pc, up from 4.49pc in FY25. This higher rate was recorded despite the high base effect from the previous year. For FY27, the government has projected an inflation target of 8.2pc. Inflation between July and August stood at 10.17pc, as against 3.56pc over the corresponding period of last year.