Pakistan’s textile mill cuts production over rising raw material costs, cotton shortage

Pakistani textile manufacturer Idrees Textile Mills Limited will reduce production capacity for at least four weeks due to rising raw material costs, shortages of local cotton and delays in imported cotton shipments linked to the ongoing Middle East crisis.

In a notice filed with the Pakistan Stock Exchange (PSX), the company said “prevailing unfavorable market conditions” had disrupted operations and forced management to slow production activities from May 18.

The company said operational capacity would remain reduced for approximately four weeks, or until imported cotton consignments arrive and the new cotton crop season begins.

Idrees Textile said shortages of locally available cotton and delays in imported shipments had significantly affected production planning.

Pakistan’s textile industry, a key export sector for the country, has faced mounting pressure in recent months from supply chain disruptions, volatile global commodity prices and higher input costs.

The industry is expected to import around 7.2 million bales of cotton during the 2026-27 cotton year to meet domestic demand, as local production is projected to fall short of consumption.

According to Cotton Ginners Forum chairman Ehsan ul Haq, the domestic production is projected at 6.94 million bales, while consumption is estimated at 14.15 million bales.

Pakistan's cotton production has been on a declining trend for years.

In 2026, the output is expected to fall by 272,000 bales from last year, deepening the country's reliance on global cotton supplies, according to Haq.