Emergency Closure Disrupts Karachi Cotton Exchange Operations
The Karachi Cotton Exchange building remains sealed for the fifth consecutive day, severely impacting cotton brokers and the wider market. Consequently, the Karachi Cotton Association (KCA) has been unable to issue crucial cotton spot rates, essential for trade.
The Evacuee Property Trust Board (EPTB), supported by the Federal Investigation Agency (FIA), sealed the premises last Friday. This historic building, a vital hub for Pakistan’s cotton trade, has housed the exchange since 1936, reflecting its long-standing significance.
Operational Standoff at the Cotton Exchange
Brokers and traders are experiencing significant losses due to the ongoing closure. A former KCA office-bearer stated the EPTB had not communicated with the association, leaving the building’s status unclear. Its chairman, Khwaja Zubair, has reportedly been unreachable for comment.
Exporters, importers, and cotton brokers occupy 152 offices within the sealed premises, all currently inaccessible. A veteran broker, active for over 40 years, criticized the situation, stating, “The EPTB may seize the association’s office, but closing our offices is unfair.” SindhNews.com highlights the broad disruption. Brokers suggest the association, which has not been banned, could still issue spot rates from an alternative location. “The chairman can issue spot rates from his other offices,” another broker pointed out, indicating viable temporary solutions.
The prolonged closure of the Karachi Cotton Exchange building continues to disrupt the national cotton market, placing significant pressure on all stakeholders awaiting a definitive resolution and resumption of normal operations.