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One year on, exchange sealing paralyses trade, sends negative signals to foreign investors
KARACHI:
The Karachi Chamber of Commerce and Industry (KCCI), while expressing deep concern over the continued sealing and forceful occupation of the historic Cotton Exchange building, has stated that it has inflicted severe damage on Pakistan’s cotton trade, disrupted hundreds of businesses and created an atmosphere of uncertainty that threatens the country’s exports and investment climate.
In a statement issued on Saturday, KCCI President Rehan Hanif said that the chamber was receiving an overwhelming number of complaints from its member firms, which had been directly affected by the abrupt closure of the Cotton Exchange. A total of 209 commercial offices, many of which had been operating since the creation of Pakistan in 1947, have been rendered dysfunctional overnight. These offices comprise importers, exporters, cotton brokers, traders, commission agents, textile-related businesses and numerous enterprises associated with Pakistan’s cotton value chain.
The sudden sealing has not only brought their commercial activities to a standstill but has also caused enormous financial losses, contractual complications and reputational damage.
The KCCI president noted that the Cotton Exchange, where the Karachi Cotton Association (KCA) also operated, had historically remained the backbone of Pakistan’s organised cotton marketing system and played an indispensable role in bringing together growers, ginners, textile manufacturers, exporters, brokers and other stakeholders under a transparent trading framework.
Hanif noted that historical records clearly indicated that the land upon which the Cotton Exchange building was standing was originally leased in 1883, while the Karachi Cotton Association formally acquired the property through a registered conveyance deed in 1936, with the lease subsequently renewed until 2081.
He also expressed concern over the reported non-compliance with the Sindh High Court’s order dated June 18, 2026, which had allowed the Karachi Cotton Association to continue its business activities from the Cotton Exchange building until final adjudication of the matter. He urged the authorities concerned to ensure immediate implementation of the court’s directives and uphold the rule of law.