APTMA, PCGA sign MoU to launch cotton sales, purchase contract

June 23, 2026 (MLN): The All Pakistan Textile Mills Association (APTMA) and the Pakistan Cotton Ginners Association (PCGA) have signed a landmark Memorandum of Understanding (MoU).

This came through at APTMA House, Lahore, for the formal launch and implementation of the Cotton Sales and Purchase Contract aimed at bringing transparency, quality-based pricing, and discipline to Pakistan's cotton value chain.

The MoU was signed by Kamran Arshad, Chairman APTMA, and Sham Lal Manglani, Chairman PCGA, in the presence of senior leadership from both the textile and ginning sectors, said a press release issued.

From APTMA, the ceremony was attended by Khwaja Anees, Mahmood Group; Haroon Elahi, Nagina Group; M. Ali, Rasham Textile; Raza Baqir, Secretary General APTMA; and Dr. Muhammad Javed, Cotton Advisor APTMA.

From PCGA, attendees included Ch. Waheed Arshad, Ex-Chairman PCGA; Sohail Haral, Ex-Chairman PCGA; Mahesh Kumar, Ex-Chairman PCGA; Salman Maqbool, Maqbool Group; M. Ashfaq Ramay, Vice Chairman PCGA; and Abdullah Salman, Maqbool Group.

Speaking on the occasion, Kamran Arshad said Pakistan's cotton crop has witnessed a historic decline, forcing the textile industry to import millions of bales every year at a cost of billions of rupees.

He said the Cotton Sales and Purchase Contract will bring transparency and clarity in cotton transactions by clearly defining quality parameters, sampling procedures, weighment, delivery terms, payment arrangements, insurance responsibilities, bale marking, packing requirements, and dispute resolution mechanisms.

He added that quality cotton must receive its due premium and poor-quality cotton must no longer be treated at par with better cotton, saying quality-based pricing would encourage growers and ginners to focus on clean picking, better storage, improved ginning, contamination control, and proper moisture management.

Sham Lal Manglani appreciated APTMA for taking the initiative and said the standardised contract will protect the legitimate interests of ginners by ensuring agreed quality specifications, neutral weighment, transparent sampling, timely payments, and proper dispute settlement.

He said PCGA is fully committed to working with APTMA for the successful implementation of the contract.

Ch. Waheed Arshad, Ex-Chairman PCGA, appreciated APTMA for inviting PCGA and taking the initiative to bring both organisations on one platform.

He said the MoU will remove long-standing gaps between buyers and sellers by creating a mutually agreed and documented system for cotton trade, terming the initiative a positive step towards trust-building, quality improvement, and reduction of disputes in cotton transactions.

Sohail Haral, Ex-Chairman PCGA, thanked APTMA for hosting the signing ceremony and appreciated the practical approach behind the contract.

He said the cotton sector needs collaborative initiatives where all stakeholders sit together and resolve issues through consultation, mutual respect, and shared responsibility, adding that the success of the contract will depend on its smooth implementation and continuous engagement between APTMA and PCGA.

Salman Maqbool, Maqbool Group, termed the Cotton Sales and Purchase Contract a practical and much-needed reform for Pakistan's cotton trade.

He said Pakistan must learn from successful cotton-producing countries such as Brazil and India, where cotton marketing systems are based on quality parameters, transparent documentation, proper bale identification, grading, sampling, and dispute resolution mechanisms.

He said that with consistent implementation, regular review, and capacity building of concerned staff, the contract can become an effective national mechanism for promoting quality-based cotton trading, fair premiums, reduced disputes, and improved transparency across the entire cotton value chain.

Khwaja Anees Mehmood, Mahmood Group, said Pakistan's textile industry cannot remain competitive without reliable, clean, and quality domestic cotton.

He appreciated the MoU as a practical reform that will help bring quality cotton back into the formal and transparent marketing system, adding that textile mills are ready to support quality-based premiums where cotton is supplied according to agreed specifications.

Haroon Elahi, Nagina Group, said the Cotton Sales and Purchase Contract will create better understanding between ginners and textile mills by clearly defining the responsibilities of both buyers and sellers.

He said transparent contract enforcement, neutral weighment, proper sampling, and documented quality parameters will help reduce disputes and improve the overall efficiency of the cotton trade.

M. Ali, Rasham Textile, said the contract will help the textile sector procure domestic cotton with greater confidence.

He said Pakistan must improve cotton quality from farm to gin and from gin to mill, appreciating the joint effort of APTMA and PCGA as an important step towards strengthening domestic cotton utilisation and supporting the national economy.

Dr. Muhammad Javed, Cotton Advisor APTMA, briefed participants on the key features of the Cotton Sales and Purchase Contract and the broader cotton revival efforts being pursued by APTMA, explaining that the contract provides a professional framework for quality specifications, staple length, grade, and related parameters.

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