The widespread use of Bt crops reduces the outbreaks of certain targeted pests and the need for insecticide use, leading to enhanced biocontrol of other potential pest species in the Bt crops; neighbouring non-Bt crops may also benefit.

Despite widespread adoption of genetically modified crops in many countries, heated controversies about their advantages and disadvantages continue. Especially for developing countries, there are concerns that genetically modified crops fail to benefit smallholder farmers and contribute to social and economic hardship. Many economic studies contradict this view, but most of them look at short-term impacts only, so that uncertainty about longer-term effects prevails. We address this shortcoming by analyzing economic impacts and impact dynamics of Bt cotton in India.

Pakistan is ranked fourth among the top five cotton-producing countries in the world. About 70–80% of the cultivated
area is under Bt cotton in Pakistan. Bollworm (Helicoverpa armigera) is the major pest of cotton. It causes 31.73–
36.45% yield losses and these are reduced by heavy pesticide application. There has been a tremendous increase in
the import and use of pesticides. Consequently, about 7.7 billion rupees is spent on pesticides every year. Considering
the total pesticide usage (94,265 metric tonnes in 2007–08), 70% is being used exclusively on cotton.