KCCI seeks immediate reopening of cotton market

KARACHI: The Karachi Chamber of Commerce and Industry has called for the immediate reopening of the historic Cotton Exchange building, saying its continued sealing and alleged forcible occupation have severely disrupted Pakistan’s cotton trade and affected hundreds of businesses linked to the sector.

In a statement issued on Saturday, KCCI President Rehan Hanif said the chamber had been receiving a large number of complaints from member firms directly impacted by the sudden closure of the Cotton Exchange. He said 209 commercial offices operating from the building had effectively stopped functioning overnight.

According to Hanif, the affected offices include importers, exporters, cotton brokers, traders, commission agents, textile-related firms and other businesses associated with the country’s cotton value chain. He said the closure had halted commercial activity and led to financial losses, contractual issues and damage to business reputations.

Concerns over trade disruption

Hanif said the Cotton Exchange, where the Karachi Cotton Association also operates, has historically served as a central institution in Pakistan’s organised cotton marketing system. He said it played a key role in connecting growers, ginners, textile manufacturers, exporters, brokers and other stakeholders through what he described as a transparent trading framework.

The KCCI chief said many of the offices affected by the sealing had been operating since the creation of Pakistan in 1947. He added that the disruption had created uncertainty that could affect the country’s exports and broader investment environment.

Property and court order cited

Referring to the history of the property, Hanif said records showed the land on which the Cotton Exchange building stands was originally leased in 1883. He added that the Karachi Cotton Association formally obtained the property through a registered conveyance deed in 1936, and that the lease was later renewed until 2081.

Hanif also raised concern over what he described as non-compliance with a Sindh High Court order dated June 18, 2026. According to him, the court had allowed the Karachi Cotton Association to continue conducting its business activities from the Cotton Exchange building until the matter is finally decided.

He urged the relevant authorities to ensure implementation of the court’s directions and said the rule of law should be upheld. The chamber maintained that reopening the building without delay was necessary to restore normal business activity in a sector it said remains important to the national economy.