KARACHI: Nearly 17 days have passed since the Karachi Cotton Exchange (KCE) was shut, raising serious concerns under a government that claims to promote business, economic growth and an export target of $60 billion.
The unexpected move by the Evacuee Property Trust Board (EPTB) to take over the KCE premises has forced the closure of an institution that had remained operational for 52 years, affecting around 320 registered cotton brokers.
Brokers say they are incurring losses running into billions of rupees due to the complete halt in trading, while the textile industry, particularly spinning mills, is struggling to obtain working capital from banks because cotton rates are unavailable.
No cotton spot rates have been issued since the EPTB took possession of the building on Dec 12. The cotton and cotton-based textile sector contributes about 60 per cent to the country’s export earnings and provides up to 70 per cent of direct and indirect employment nationwide.
“I do not understand why the federal government and the finance minister have not intervened to resolve this issue,” said a senior broker, requesting anonymity.
Brokers warned that if the KCE closure persists, it could trigger a crisis across the textile sector, severely undermining export targets and overall GDP growth.
“It is incomprehensible why policymakers allowed such a drastic action, the confiscation of the building, and have shown no urgency in resolving an issue that is fast turning into a crisis,” the broker said.
Meanwhile, the chairman of the Karachi Cotton Association could not be reached for comment. He has neither responded to calls nor publicly spoken against the takeover of the KCE premises.
