By Samia Khalid ISLAMABAD, Oct 29 (INP-WealthPK): Cotton, also known as white gold, contributes a sizable share to the gross domestic product GDP, but unfortunately its production has dwindled in the past few years. According to the Economic Survey of Pakistan, cotton output fell by 22.8% to 7.064 million bales from 9.148 million bales in FY2020-21, resulting in a drop of 15.58% in cotton ginning. Reduction in the planted area, severe monsoon rains, and insect attacks accounted for crop losses. Pakistan produced only 7,063.9 tonnes of cotton during the FY2020-21, down 22.8% from the previous year 2019-20, according to the Pakistan Bureau of Statistics (PBS). There was also a decrease of 12% in the area devoted to cotton during FY2020-21. The crop suffered mostly due to reduction in the area seeded, insufficient technology and financial resources, and climate change problems. Source: Pakistan Bureau of Statistics (PBS) Owing to the changing weather patterns, insect attacks, and scarcity of certified seeds, the cost of cotton production has grown steadily in recent years, prompting many farmers to move to more profitable crops such as maize, rice, and sugarcane. As a consequence, in the FY2020-21, the area dedicated to cotton decreased by 12%. Furthermore, during the crucial month of September, high temperatures hindered the formation of fruit bodies. To combat global warming, heat-tolerant cotton types are required, but there is still a long way to go. The decision of the federal government not to import cotton from India and give direct subsidies to farmers in a phased manner will encourage the growers. At the same time, the federal and provincial governments will ensure strict action against those responsible for selling substandard medicines to cotton farmers. The recent steps taken by the government will help achieve the target. The government announced Rs5,000 per 40kg cotton support price this year (EOP, 2020-21). Compared with Pakistan, China produced around 6.42 million metric tons of cotton during 2020-21, becoming the largest cotton producer in the world (Statistica, 2021). Following substantial adjustments like subsidies on planting high quality seeds and direct support from the government for spinning, China has reached the top spot. In order to overcome the losses and shore up the foreign exchange reserves, Pakistan can benefit from the Chinese technology and financing to modernize its production. Technological support from China will surely help tackle challenges like low quality seeds and pest attacks etc, reduce the cost of inputs and improve production. China has been aiding Pakistan in improving its cash crop output by transferring important expertise and technology. During the biggest locust attack last year, China offered Pakistan an unprecedented help by providing specialists, equipment, and pesticides, sparing the country from a severe food shortfall. China also has an advantage to avail itself of low-cost production resources available in Pakistan. Because there is an abundance of labour available at low wages that Chinese companies can use to produce cost-competitive products. To combat the climate change challenges, there is a need to evaluate the varieties of best seeds available by planting them across different locations in both countries with mutual cooperation. This will help turn out the best quality seeds having the ability to grow well with high-yield cotton and fibre quality under diverse climate conditions in both countries, especially in Pakistan. Trade relations between China and Pakistan have the potential to be synergistic. Furthermore, because there is a high demand for Chinese items in Pakistan, improved trade facilitation will result in a rise in Chinese exports. Chinese investment has the potential to offer much-needed financing for a variety of initiatives in Pakistan. It will also provide the local cotton producers with an opportunity to learn from the experience of Chinese investors. Both countries can benefit from improved connectivity by using their comparative advantages. As part of the China Pakistan Economic Corridor (CPEC), the Ministry of National Food Security and Research is also aiding in the acquisition of Chinese seed technology and supply of high-quality seeds to farmers across the country.