KCCI President calls for immediate restoration of historic cotton exchange building

KARACHI: The Karachi Chamber of Commerce and Industry (KCCI) has raised serious concern over the sealing and takeover of the historic Cotton Exchange Building.

President KCCI Muhammad Rehan Hanif said the action has badly affected Pakistan cotton trade and created uncertainty for hundreds of businesses linked to the sector. He said around 209 offices have become inactive after the sudden closure. These include importers, exporters, cotton brokers, traders, commission agents, and textile related businesses.

Many of these firms have operated from the building for decades, some since the early years of Pakistan. The shutdown has caused financial losses, broken contracts, and growing business uncertainty. Rehan Hanif said the cotton exchange has long served as a key platform for Pakistan cotton trade.

APTMA Calls for Immediate Restoration of Possession of Cotton Exchange Building to KCA and Its Tenants

For more than nine decades, the Karachi Cotton Association (KCA) has served as a cornerstone of Pakistan’s cotton economy, supporting trade facilitation, market transparency,… pic.twitter.com/MsovLeHSx8

— All Pakistan Textile Mills Association (@APTMAofficial) June 25, 2026

It helped bring together farmers, ginners, textile mills, exporters, and brokers under a single system. He added that the exchange also played a major role in daily cotton price setting, which guided the entire supply chain.

He warned that Pakistan is now facing an unusual situation where it no longer has a functioning cotton exchange. He said this sends a negative signal to international buyers and investors about the stability of the country cotton and textile sector. Over 300 brokers were linked to its operations, and its closure has disrupted price transparency and market confidence.

KCCI also expressed concern about the KCA HVI laboratory, which is known for cotton quality testing and has international recognition. The chamber said its closure could harm Pakistan textile exports and reduce global competitiveness.

The chamber has urged the government to take immediate action to restore access to the building for lawful users. It also called for a legal and transparent resolution to protect business rights and stabilize the cotton sector.