Karachi [Pakistan] December 28 (ANI): The prolonged closure of the Karachi Cotton Exchange (KCE) has raised serious concerns across Pakistan’s textile and export sectors, prompting questions about policy
direction and governance at a time when economic stability remains fragile. The shutdown, now stretching beyond two weeks, has effectively stalled cotton trading nationwide after the Evacuee Property Trust Board (EPTB) took control of the KCE premises without prior warning, as reported by Dawn. According to Dawn, the unexpected move has led to the suspension of operations at an institution that has operated uninterrupted for more than five decades. Over 320 registered cotton brokers have been left without a platform to conduct business, with industry representatives warning that financial losses have already reached billions of rupees. The absence of official cotton spot rates since December 12 has created severe complications for textile manufacturers, particularly spinning mills that rely on these rates to secure working capital from banks. The disruption comes at a critical time for Pakistan’s economy, as the cotton and textile sector contributes nearly 60 per cent of national export earnings and supports around 70 per cent of direct and indirect employment. Analysts warn that prolonged uncertainty could undermine export performance and erode investor confidence, dealing a fresh blow to an already struggling economy. Industry stakeholders have expressed frustration over what they describe as administrative apathy. One senior broker, speaking on condition of anonymity, questioned why the federal government and finance ministry have failed to intervene despite the scale of the crisis. “It is difficult to understand how such a vital institution could be shut down without an immediate resolution mechanism,” the broker stated, as highlighted by Dawn. Concerns are also growing over the silence of the Karachi Cotton Association’s leadership, as its chairman has neither issued a public statement nor responded to media queries regarding the takeover. Observers fear that the lack of coordination and urgency could further destabilise the cotton market and disrupt supply chains nationwide, as reported by Dawn. (ANI)
