LAHORE: Pakistan has been left without representation in global cotton markets for more than four-and-a-half months after the Karachi Cotton Association (KCA) was sealed over a property dispute, halting the issuance of cotton spot rates and triggering widespread disruption across the textile and financial sectors.
The Federal Investigation Agency (FIA) had sealed the historical KCA building on Dec 12, 2025, over an ownership dispute that remains pending before the Karachi High Court. As a result, the association has been unable to release daily cotton spot rates, considered a key benchmark for the entire industry.
The prolonged suspension has not only sidelined Pakistan from international cotton pricing but has also created serious challenges for banks and financial institutions that rely on spot rates to extend daily credit to textile mills and ginning factories. Insurance companies are also facing difficulties in settling cotton-related fire claims, compounding problems for the business community.
Industry representatives warn that the absence of spot rates has effectively deprived Pakistan of its voice in global cotton markets, exposing the country to reputation damage and uncertainty in trade.
Weather factor pushes cotton sector to early start of new season
Cotton Ginners Forum Chairman Ihsanul Haq has urged the KCA authorities to establish a temporary office at an alternative location before the start of the new cotton ginning season to resume the issuance of spot rates and ease stakeholders’ concerns.
Meanwhile, developments in the cotton sector suggest an unusually early start to the new season. Due to rising temperatures and recent rains affecting sowing in several cotton zones, coupled with early picking in Sindh’s coastal areas, Pakistan’s new ginning season may begin by mid-May, potentially the earliest in the country’s history.
Advance trading activity has already picked up in parts of Sindh, Sanghar, and Burewala, with earlier deals for new crop cotton ranging between Rs10,000 and Rs10,500 per 40kg, while lint prices are around Rs21,500 per maund. Market sources now report an upward trend, partly driven by disruptions in cotton imports linked to regional geopolitical tensions.
Globally, Pakistan’s cotton sector faces additional pressure as India expands its textile exports. Reports indicate a surge in Indian cotton yarn shipments to China, significantly increasing monthly export volumes. Domestically, a sharp decline in cotton production, from around 15 million bales to below 6 million, has been attributed to the expansion of sugarcane cultivation and environmental factors affecting crop quality.
Despite mounting challenges, stakeholders say no concrete steps have yet been taken to revive the struggling cotton sector, raising concerns about its future competitiveness in international markets.
Published in Dawn, April 27th, 2026
