The government is evaluating two proposals for the future of the Pakistan Central Cotton Commission (PCCC), a major cotton research institution, which faces severe financial challenges. Options include transferring the PCCC to the All Pakistan Textile Mills Association (Aptma) or the National Agricultural Research Center (NARC).
According to a news report, the Economic Coordination Committee (ECC) described the PCCC as ineffective and recommended its dissolution.
The PCCC’s financial problems stem from textile mills’ refusal to pay the cotton tax, which funds the committee’s research activities. Mill owners filed 65 lawsuits over the rebate payments, citing complaints about price increases and duties on imported cotton.
The government has allocated Rs 656 million in the federal budget for the financial year 2024-25 to meet expenses related to PCCC staff. Earlier, supplementary grants and loans – such as Rs 419 million in May 2021 and Rs 300 million in June 2023 – were approved but were not enough to stabilize the committee’s finances.
PCCC was established in 1948 under the Cotton Tax Act of 1923, and operates under the supervision of the Department of National Food Security and Research. Its mandate includes conducting cotton research, promoting production, and improving marketing, funded by a tax of INR 50 per bundle of cotton.
However, resistance to cessation payments since 2016 has led to a significant decline in the committee’s profits, forcing it to pay partial salaries and pensions for the past two years.
In response, the ECC commissioned the Ministry of National Food Security to prepare a case for the CRI, which sets out the way forward for cotton research following the potential dissolution of the ECC.
The Ministry was also directed to consult with the Attorney General and regional public defenders to expedite the settlement of cases before the court.
Despite winning 63 of the 65 legal cases, the PCCC was unable to recover sufficient funds. This shortage has led to significant cuts in employee salaries (50%) and pensions (80%) since June 2022.
The European Coordinating Committee has proposed that cotton research should be transferred to the private sector. Handing over the PCCC to Aptma, a major textile industry body, could align research with industry needs. Alternatively, moving the committee to NARC would integrate its work into broader agricultural research efforts.
