The government is evaluating two proposals for the future of the Pakistan Central Cotton Committee (PCCC), a key institution for cotton research, which is facing severe financial challenges. The options include transferring the PCCC to the All Pakistan Textile Mills Association (Aptma) or the National Agricultural Research Centre (NARC).
According to a news report, the Economic Coordination Committee (ECC) has described the PCCC as inefficient and recommended its dissolution.
The financial troubles of the PCCC stem from the refusal of textile millers to pay the cotton cess, which funds the committee’s research activities. Millers have filed 65 lawsuits against cess payments, citing grievances over increased rates and levies on imported cotton.
The government has allocated Rs656 million in the federal budget for FY2024-25 to cover the PCCC’s employee-related expenses. Earlier, supplementary grants and loans—such as Rs419 million in May 2021 and Rs300 million in June 2023—were approved but were insufficient to stabilize the committee’s finances.
The PCCC, established in 1948 under the Cotton Cess Act 1923, operates under the Ministry of National Food Security and Research. Its mandate includes cotton research, production enhancement, and marketing improvement, funded by a cess of Rs50 per cotton bale.
However, the resistance to cess payments since 2016 has drastically reduced the committee’s earnings, forcing partial salary payments and pensions for the past two years.
In response, the ECC has tasked the Ministry of National Food Security with preparing a case for the Cabinet Committee on Rightsizing, outlining the way forward for cotton research after the PCCC’s potential dissolution.
The ministry has also been directed to consult the Attorney General and provincial advocate generals to expedite court case settlements.
Despite winning 63 of the 65 legal cases, the PCCC has not been able to recover sufficient funds. This shortfall has led to significant reductions in employee salaries (50%) and pensions (80%) since June 2022.
The ECC has suggested that cotton research should shift to the private sector. Handing over the PCCC to Aptma, a major textile industry body, could align research with industry needs. Alternatively, transferring the committee to NARC would integrate its work into broader agricultural research efforts.
