KARACHI: A serious situation has emerged concerning the building of the Karachi Cotton Association when, since 12th December 2025, the Evacuee Property Trust Board suddenly took possession of the Karachi Cotton Association building with the assistance of the Federal Investigation Agency.
Due to this action, 320 registered cotton brokers and tenants are facing extremely difficult circumstances. The affected individuals have demanded that the premises be unsealed and tenants be allowed to conduct business, as losses worth millions of rupees are being incurred on a daily basis.
The most alarming aspect of this situation is that for the first time in the 52-year history of the Karachi Cotton Association, the daily Cotton Spot Rate could not be issued. This spot rate is of utmost importance in the cotton markets and provides essential guidance to traders. Concerned circles have demanded its immediate restoration. Currently, negotiations are ongoing between the Evacuee Property Trust Board and the Karachi Cotton Association administration to find a resolution to this dispute.
Head Transfer of Technology Central Cotton Research Institute Multan Sajid Mahmood said that the daily cotton spot rate has not been issued for the past 21 days, which has become a major challenge for the industry. On another hand, the Pakistan Cotton Ginners Association has emphasized in its report the need for strict monitoring in cotton production, research and ginning processes to maintain quality standards.
The local cotton market maintained overall price stability for quality cotton during the past week, although trading volume remained low. Since the previous week marked the final week of 2025, the market experienced an increased financial crisis due to bank closures.
According to the data released by the Pakistan Cotton Ginners Association (PCGA) on January 3, 2026, a total of 5,434,044 bales of cotton had been recorded in Pakistan as of December 31, 2025.
The Federal Board of Revenue has been conducting raids on ginning factories and has seized registers and records from several ginners for tax payment purposes, which has caused anxiety among the ginners. According to the ginners, the Pakistan Cotton Ginners Association should take notice of this matter.
On the other hand, the All Pakistan Textile Mills Association has directed the Federal Board of Revenue to install camera monitoring systems at ginning factories to oversee cotton transactions. According to their statement, unregistered transactions take place at ginning factories.
Approximately 320 registered cotton brokers and tenants have strongly condemned the action taken by the Evacuee Property Trust Board with the assistance of the Federal Investigation Agency to seal the Karachi Cotton Exchange Building since December 12th and take it into possession. They demand that the seal be removed immediately and permission be granted to resume business operations. Negotiations between the Karachi Cotton Association and the Evacuee Property Trust Board should continue because the sealing of the entire building is affecting business worth millions of rupees daily. The tenants are in great distress as approximately five thousand people have become unemployed.
In the provinces of Sindh and Punjab, cotton prices ranged from 14,000 to 16,200 rupees per maund depending on quality and payment conditions.
Phutti, which is available in limited quantities, is priced between 6,000 to 8,000 rupees per 40 kilograms according to quality.
In Balochistan province, cotton prices ranged from 15,500 to 16,200 rupees per maund, while Phutti prices ranged from 7,800 to 8,500 rupees per 40 kilograms.
The prices of cottonseed cake and oil remain generally stable.
Naseem Usman, Chairman of the Karachi Cotton Brokers Forum, stated that international cotton prices show a mixed trend. The New York cotton futures price is moving between 65 to 68 American cents per pound.
Karachi Mayor Barrister Murtaza Wahab has clearly stated in his declaration, which has been broadcast across all print and electronic media outlets in Pakistan, that the Karachi Cotton Association building is the property of the Karachi Metropolitan Corporation. According to the mayor, the KMC has owned this property since 1936.
The Karachi Cotton Association paid its lease until 2081, but after that period, according to the Karachi mayor, the Evacuee Trust Property Board, with the assistance of the Federal Investigation Agency, has maintained illegal occupation of the premises since December 12.
The Federal Investigation Agency has issued a detailed response letter rejecting the concerns raised by Karachi Mayor Murtaza Wahab regarding the sealing of the Karachi Cotton Exchange Building, identified as Property Number SR-4/6. The FIA has revealed that the occupation of the aforementioned property by the Karachi Cotton Association and its lease documents appear to be fraudulent and bogus.
In the letter sent to the Karachi mayor, the FIA has clarified that this action is not the result of political pressure or haste, but rather compliance with the Supreme Court of Pakistan’s orders from November 2021, which directed the vacation of properties belonging to the Evacuee Trust Property Board.
Furthermore, we, the approximately 320 cotton brokers and other tenants who have been conducting business at the KCA for several decades, are suffering severe mental and financial losses due to this action by the Evacuee Trust Property Board and the FIA. We are experiencing daily losses amounting to millions of rupees. Our employees and thousands of people have become idle and unemployed, and this is also causing losses to the government in terms of revenue that previously brought in millions of rupees.
Additionally, due to the suspension of the daily cotton spot rate issued by the KCA, the cotton trade is being affected throughout Pakistan and at the international level. The absence of daily cotton spot rates is severely impacting bankers, insurance companies, textile mills, ginners, and cotton farmers.
We demand from the ETPB and FIA that the seal placed on the KCA building, which according to the Karachi mayor is illegally imposed, be removed immediately and that we be allowed to conduct business in our offices.
Head Transfer of Technology Central Cotton Research Institute Multan Sajid Mahmood said that according to the data released by the Pakistan Cotton Ginners Association (PCGA) on January 3, 2026, a total of 5,434,044 bales of cotton had been recorded in Pakistan as of December 31, 2025. During the same period last year, the total cotton arrival was 5,452,250 bales, indicating that no significant increase or decrease in arrivals was observed. According to available data, textile mills consumed 4,708,380 bales this year, while exporters and market players received 176,000 bales. In comparison, textile mills had utilized 4,650,000 bales last year, and exporters and market players received 180,000 bales.
At present, the total cotton stock in the country stands at 549,664 bales, including 481,966 pressed bales and 67,698 loose bales. Last year at this time, the total stock was 588,531 bales, indicating a slightly lower stock level this season.
This year, cotton flow has been recorded at 132,636 bales, compared to 84,916 bales last year, reflecting a notable change in the movement of cotton. Currently, 223 ginning factories across the country are operational and utilizing available cotton.
The total annual cotton demand of Pakistan’s textile industry is approximately 16 million bales. However, for several years, available figures have remained limited to 11 to 12 million bales. To bridge this gap, around 5 million bales are imported annually, costing billions of dollars. This highlights the importance of enhancing domestic cotton production to strengthen the textile sector’s capacity and contribute positively to the national economy.
Investment in research and development is essential to improve cotton production, effectively addressing challenges related to climate change, crop diseases, seed quality and farmers’ production constraints. In addition, rigorous monitoring and the implementation of video surveillance at the ginning stage are crucial to accurately account for 2 to 3 million unregistered bales each year and to ensure alignment between PCGA and the Punjab Agriculture Department’s Crop Reporting Service data.
APTMA’s position is fully valid and commendable, that video monitoring and strict oversight should be applied at the ginning level. This will ensure transparency, provide accurate estimates of cotton stocks, market transactions and production, and identify unregistered bales. Implementing APTMA’s recommendation will not only enhance domestic production but also strengthen the capacity of the textile sector and contribute to national economic stability.
Sajid said just as the textile industry emphasizes a level playing field to remain competitive in the region, requiring affordable electricity, reliable energy and lower taxes as seen in Bangladesh, Vietnam, India and China, the same principle applies to the foundational cotton sector. It is universally acknowledged that the sustainable growth of the textile industry directly depends on the availability of cotton, higher yields and quality fiber. A strong raw material base naturally strengthens the entire value chain.
Major cotton-producing countries, including China, the United States, Australia and India, have treated cotton as a strategic crop. These countries have consistently invested heavily in cotton research and development, established advanced research facilities and strengthened scientific human resources. This policy continuity has resulted in increased yields per acre, introduction of superior quality varieties and adaptation of cotton to changing climatic conditions.
In Pakistan, the Pakistan Central Cotton Committee (PCCC) serves as the principal institution for cotton research, playing a pivotal role in national agricultural research. In the past, PCCC’s annual budget was limited to approximately PKR 25 to 30 crore, restricting research and development capacity. It is encouraging that, with the efforts of APTMA’s current leadership and the Ministry of National Food Security & Research, the budget has recently increased to approximately PKR 70 to 80 crore, although it remains modest compared to international standards. Furthermore, the current workforce represents only 27 percent of the sanctioned strength of 758 scientists and staff, highlighting the need for further strengthening.
The Government of Pakistan’s decision to merge the PCCC with the Pakistan Agricultural Research Council (PARC) is timely and constructive. This merger will facilitate institutional coordination, optimize resource utilization, provide access to modern research facilities and enhance integration of agricultural research at the national level. Completing this process promptly will enable scientists and researchers to perform their responsibilities with greater focus and efficiency.
Modernizing PCCC’s research infrastructure is a critical part of this initiative. Cutting-edge biotechnology, genomics, marker-assisted breeding, digital agriculture and climate-resilient research can significantly improve cotton yield and quality. Enhancing workforce capacity and linking research directly to farmers and the industry will further ensure future success.
Investment in cotton research and development is, in effect, a direct investment in the future of Pakistan’s textile industry and national economy. Recent government initiatives reflect a positive trajectory and consistent implementation of these policies can help Pakistan enhance cotton production and strengthen its competitive position in the region.
Copyright media, 2026
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