The article discusses the severe impact of the 18% sales tax on Pakistan's cotton ginning sector, leading to factory shutdowns and plummeting cotton prices.Cotton ginning factories in Tando Adam and other towns have closed just a month after opening, marking a historic crisis.

The federal government's failure to reduce the tax burden has caused domestic cotton prices to drop sharply, with spot rates falling by Rs4,000 to Rs17,500 per maund.Downstream products like cottonseed and oil cake have also seen significant price declines.Environmental factors like extreme heatwaves have further damaged cotton quality and yield.

The Pakistan Cotton Ginners Association (PCGA) has accused digital platforms of manipulating market data, leading to legal actions against fake information spreaders.The tax crisis has created a production gap, with official records showing only 5.5 million bales compared to an estimated 7 million.The PCGA plans to release official production data for the 2026-27 cotton year on July 18.The crisis threatens the survival of the textile industry and could lead to widespread shutdowns in Sindh's cotton-producing districts.