Climate Pressure Forces a Reckoning Across Pakistan's Cotton Belt

The roundtable highlighted the need to better capture and apply research and field learning. Where does knowledge currently break down between researchers, extension services and farmers, and what changes are needed to close that gap?
Abou Bakar: Research and field learning breaks down when we don’t understand how regenerative practices are playing out on-the-ground. If we’re not consistently capturing what’s happening at field level and translating this data and insights into learnings that can be easily shared, then there is a break in the chain of knowledge that needs to be addressed. One of the tools we are using to tackle this is CottonConnect’s farmers app, which has been designed to capture farmer level data on sustainable and regenerative agricultural practices to help drive impact calculation. There is also an e-learning element to the app providing farmers with access to tools like weather forecasts, pest and disease management information videos and other practical regenerative agriculture advice and information.

The level of transparency provided by capturing data at farm level from tools such as this helps to establish better supply chain links and increase traceability across the supply chain to the benefit of both farmers and brands. This data and knowledge then need to be fed into extension systems so that all farmers are able to receive up-to-date guidance. On the other side, formal research should be converted into practical advice and insights that farmers can act on and be used to inform a well-structured educational and promotion programme for regenerative farming that can help turn individual insights into practice at scale.

CottonConnect cites a near 35 per cent profit increase among regenerative farmers in 2024–25. What were the principal drivers of that improvement, and how consistent were the results across different regions and farm sizes?
Abou Bakar: The majority (99.2%) of our farmers are enrolled in our REEL Regenerative programme, with over 260,000 trained on regenerative practices in 2024-25. In this time, trained farmers achieved a 34.9% increase in profit compared to control farmers, demonstrating that regenerative agriculture can strengthen both environmental outcomes and farm-level economics.

The near 35% profit increase was driven primarily by a reduction in input costs, which fell by 15.4% among participating farmers, combined with a 7.5% increase in yield. Cost savings were achieved through the adoption of organic compost, improved soil management, and reduced reliance on synthetic fertilisers and pesticides.

While the scale of benefits varied across regions and farm sizes due to differences in agro-climatic conditions, soil health, water availability, and adoption levels, positive results were recorded across the programme. Larger farms often realised greater absolute savings due to their scale, while smallholder farmers benefitted significantly from lower input expenditures and improved resilience. Farmers who consistently implemented regenerative practices over multiple seasons generally experienced stronger improvements in productivity, profitability, and soil health, demonstrating that the benefits of regenerative agriculture can be achieved across diverse farming contexts when supported by the appropriate training and technical assistance.

Farmers are being asked to change long-established cultivation practices. Which regenerative interventions have seen the highest adoption rates, and which continue to face resistance on the ground?
Abou Bakar: In Pakistan, regenerative practices that offer immediate agronomic and economic benefits have generally seen the highest adoption rates. These include integrated pest management (IPM), improved irrigation and water stewardship practices, soil testing, the use of organic compost, and crop residue management. Farmers are often more willing to adopt interventions that reduce input costs, improve resource efficiency, and deliver visible results within a single season.

Practices requiring more fundamental changes to farming systems particularly reducing dependence on synthetic fertilisers and pesticides, adopting diversified cropping systems, and making longer-term investments in soil regeneration continue to face greater resistance. This is largely due to concerns around yield stability, pest pressure, and short-term financial risk. The roundtable also highlighted broader challenges such as smallholder fragmentation, limited access to finance and technical support, and the need for sustained capacity building.

Regenerative practices that deliver quick wins tend to scale faster, while deeper system changes require stronger incentives, demonstration of results, and long-term stakeholder support.

The discussion stressed the need for clearer commercial incentives. What forms of long-term sourcing commitments or risk-sharing arrangements are most likely to persuade smallholders to make the transition?
Abou Bakar: The roundtable made clear that farmers will only transition at scale if the commercial model evolves alongside the production model. That means long-term sourcing commitments from brands, clearer expectations of future demand, and stronger commercial signals such as price premiums, so farmers can invest with confidence. There was also strong alignment on the need for risk-sharing mechanisms, whether through pricing structures, contracts or blended finance, to help farmers manage short-term yield variability and cost spikes during the transition. Regenerative programmes in Pakistan have delivered increased farmer profitability, but scaling this requires sustained buyer engagement alongside government-backed incentives such as subsidies or concessional finance to reduce the upfront risk and unlock adoption at scale.

The roundtable described farm-to-fibre traceability as increasingly non-negotiable for global sourcing. How close is Pakistan’s cotton value chain to delivering end-to-end traceability at scale, and where are the biggest bottlenecks today?
Abou Bakar: Pakistan has made significant progress towards end-to-end cotton traceability, with platforms such as TraceBale demonstrating that the technology and systems required to track cotton from farm to finished product already exist. However, achieving traceability at scale across the entire sector remains a work in progress.

The primary bottlenecks are operational rather than technical. These include the fragmented nature of the cotton value chain, varying levels of digital capability among supply chain actors, inconsistent data capture and record-keeping practices, and the need for greater alignment and participation from ginners, spinners, and other downstream stakeholders. Maintaining segregation of traceable cotton throughout processing stages and ensuring consistent compliance with chain-of-custody requirements also remain key challenges.

The roundtable concluded that scaling traceability will require stronger industry-wide collaboration, harmonised standards, continued investment in digital systems, and capacity building across the supply chain. With growing regulatory and brand requirements for transparency, accelerating adoption of traceability systems is becoming progressively important for maintaining Pakistan’s competitiveness in global cotton markets.

Ginners and mills reportedly face difficulties meeting international reporting requirements. Are these challenges primarily technological, financial or administrative, and how much risk do they pose to Pakistan’s export competitiveness?
Abou Bakar: The challenges facing ginners and mills are primarily operational and administrative, although financial and technological constraints can also play a role, particularly for smaller businesses. Delivering traceability and meeting international reporting requirements requires consistent data capture, robust record-keeping, chain-of-custody documentation, and verification at every stage of the supply chain. The roundtable highlighted that fragmented systems, varying levels of digital readiness, and misalignment between local practices and evolving global standards often create additional complexity.

As international regulations and buyer expectations increasingly require verified sustainability and traceability data, suppliers that are unable to demonstrate compliance may face reduced market access or lose opportunities with leading global brands. Participants agreed that strengthening digital systems, harmonising reporting frameworks, and building the capacity of supply chain actors will be essential to maintaining Pakistan’s position as a trusted sourcing destination in the years ahead.

The discussion assumes that stronger traceability, regenerative practices and compliance systems will help preserve Pakistan’s position as a preferred sourcing destination. What evidence suggests global buyers are willing to reward these investments with sustained purchasing commitments rather than simply imposing additional requirements?
Abou Bakar: There is clear evidence that global sourcing expectations are shifting, although the market is still evolving in how it rewards sustainability investments. Increasingly, brands are prioritising suppliers that can provide verified traceability, demonstrate environmental and social compliance, and supply cotton with measurable sustainability credentials. In practice, suppliers that invest in these capabilities are often better positioned to secure preferred supplier status, participate in strategic sourcing programmes, and strengthen long-term relationships with international buyers.

For Pakistan, investments in regenerative agriculture and traceability are becoming essential for maintaining market access and competitiveness. The roundtable highlighted that while compliance is becoming a prerequisite rather than a differentiator, there are encouraging examples of buyers supporting the transition through sustainability programmes, traceable sourcing partnerships, organic cotton premiums, and longer-term engagement with suppliers capable of meeting evolving requirements. Participants agreed that further progress will depend on strengthening the link between sustainability performance and commercial incentives, including multi-year sourcing commitments, risk-sharing mechanisms, and value distribution across the supply chain.