The Pakistan Central Cotton Committee (PCCC) and the All Pakistan Textile Mills Association (APTMA) have signed a memorandum of understanding (MoU) to resolve outstanding cotton cess dues owed by APTMA to PCCC.
This long-awaited agreement ends years of dispute and is expected to strengthen the financial stability of PCCC while reinvigorating cotton research in the country.
The formal signing ceremony took place at the Ministry of National Food Security and Research (MNS&R) on Wednesday, July 9, 2025, and was chaired by Federal Minister for National Food Security and Research, Rana Tanweer Hussain. The development was announced in an official press release by Sajid Mahmood, the focal person for PCCC, based in cotton-producing Multan.
“The initiative is part of the continuation of the national agriculture policy. It’s not just an agreement but a decisive step to support farmers and revive cotton production in Pakistan,” said Rana Tanweer Hussain.
The minister emphasized that the government aims to align national agricultural production, cotton research, and cotton seed improvement with modern technological trends. “This agreement reflects that vision.”
The MoU was signed by Federal Minister Rana Tanweer Hussain, CEO of PCCC Dr. Khadim Hussain, Chairman of APTMA Kamran Arshad, and Secretary General Shahid Sattar.
Cotton cess is a mandatory payment made by textile mills to PCCC for using cotton bales in textile production. The funds help PCCC continue its research on developing better disease-resistant and high-yielding cotton varieties and providing guidance to farmers on modern agricultural practices.
Under the agreement, APTMA will assist in ensuring that its member textile industries enter into agreements with PCCC, provide data, and verify the arrears of cotton cess. After verification, the dues will be paid by APTMA member industries in four equal installments. The first installment, one-fourth of the total verified amount, is due 30 days after the signing of individual agreements. The remaining three installments will be paid in three-month intervals thereafter.
APTMA Chairman Kamran Arshad welcomed the agreement, highlighting the mutual trust it signifies and assuring full support from the textile industry to the cotton sector, which he described as the backbone of the national economy.
PCCC CEO Dr. Khadim Hussain called the initiative the foundation for cotton cess payment and an opportunity to build a strong, transparent, and sustainable partnership between the industry and research body.
Dr. Hussain also praised Federal Minister Rana Tanweer Hussain for his special interest in finalizing the agreement and expressed appreciation for the efforts of Secretary MNS&R Waseem Ajmal Chaudhry, Chairman APTMA Kamran Arshad, Secretary General Shahid Sattar, former Vice President PCCC Dr. Yousuf Zafar, Secretary PCCC Dr. Muhammad Idrees Khan, and APTMA Cotton Consultant Dr. Javed in reaching this agreement.
