Karachi: The government has set an ambitious target for cotton production, aiming for 9.6 million bales by the fiscal year 2027, marking a 37% year-on-year increase. This goal requires a 7% increase in the sowing area and a 27% improvement in crop yields. The rise in domestic cotton prices, currently up 18% this calendar year, has been encouraging for local growers, aligning with international trends and an improved export outlook.

According to JS Global, global cotton demand is expected to grow by 2% in the 2026-27 period, driven mainly by the United States and the European Union. However, global output is forecast to decline by 3.8% year-on-year, which is likely to sustain higher cotton prices. These trends present a near-term opportunity for Pakistani exporters, though the India-EU Free Trade Agreement (FTA) could challenge Pakistan's competitiveness in the future. Interloop Limited is highlighted as a company well-positioned to thrive within this evolving global landscape.