The Karachi Chamber of Commerce and Industry (KCCI) has expressed deep concern over the continued sealing and forceful occupation of the historic Cotton Exchange building, stating that it has inflicted severe damage on Pakistan's cotton trade. The closure has disrupted hundreds of businesses and created an atmosphere of uncertainty that threatens the country's exports and investment climate.
Impact on Businesses
In a statement issued on Saturday, KCCI President Rehan Hanif said that the chamber was receiving an overwhelming number of complaints from member firms directly affected by the abrupt closure. 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 include 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.
Historical Significance of Cotton Exchange
The KCCI president noted that the Cotton Exchange, where the Karachi Cotton Association (KCA) also operated, has historically remained the backbone of Pakistan's organised cotton marketing system. It played an indispensable role in bringing together growers, ginners, textile manufacturers, exporters, brokers, and other stakeholders under a transparent trading framework.
Hanif pointed out that historical records clearly indicate the land upon which the Cotton Exchange building stands was originally leased in 1883. The Karachi Cotton Association formally acquired the property through a registered conveyance deed in 1936, with the lease subsequently renewed until 2081.
Court Order and Rule of Law
Hanif 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.
