KARACHI: A bullish trend prevailed in quality cotton prices at the Karachi Cotton Exchange, where an increase of three hundred to five hundred rupees per maund was recorded, although trading volume remained limited.
Renowned industrialist S M Tanveer, and President of the Federation of Pakistan Chambers of Commerce and Industry Atif Ikram Sheikh has issued a warning stating that nearly the entire industrial sector, including textile and spinning, has reached the ventilator and there is an urgent need to impose an economic emergency in the country.
Renowned industrialist Gohar Ejaz has stated that the cross-subsidy on electricity for industries is tantamount to a death warrant.
READ MORE: APTMA Cotton Revival Plan: Agri dept delegation visits APTMA
A mixed trend was observed at Heimtextil, the international home textile exhibition held in Germany. Pakistani trader Muhammad Adil Usawala, present at the exhibition, reported that Pakistani companies are expected to receive reasonable orders.
Meanwhile, a dispute continues over the building of the Karachi Cotton Association, where the Evacuee Property Trust Board has taken control of the Karachi Cotton Exchange building with the assistance of the Federal Investigation Agency since December thirteenth.
The 320 registered cotton brokers and tenants of the Karachi Cotton Association are demanding that their offices be opened and they be allowed to issue daily cotton spot rates, as business is being severely affected due to the closure of spot rates. The closure of business worth millions of rupees conducted daily at the Karachi Cotton Association is causing immense financial losses, while approximately five thousand people have become jobless and unemployed.
During the past week, quality cotton prices in the local cotton market increased by 300 to 500 rupees per maund. Textile and spinning mills are showing interest in purchasing quality cotton. Due to the daily decline in quality cotton stock, ginners are demanding higher rates which had resulted in the recorded price increase. The arrival of raw cotton has virtually stopped, and the business volume remains limited.
On another front, the Evacuee Trust Property Board (ETPB), with assistance from the Federal Investigation Agency (FIA), took possession of the Karachi Cotton Exchange building on December 13 and sealed the entire building. A total of 209 business offices, including those of 320 registered cotton brokers located in the building, have also been sealed. This has brought daily business worth millions of rupees to a standstill. The 320 cotton brokers and other tenants have been left helpless and without support, resulting in approximately 5,000 people becoming unemployed and without work.
Karachi Mayor Barrister Murtaza Wahab has filed a case in the Sindh High Court on behalf of the Karachi Metropolitan Corporation (KMC), claiming that the Karachi Cotton Exchange building is the property of KMC. The Karachi Cotton Exchange has deposited its lease with KMC until 2081. The Sindh High Court has issued a stay order. The 320 cotton brokers and tenants state that this is a mutual dispute between KMC, ETPB, and the Karachi Cotton Association, but they question why the cotton brokers’ offices have been sealed.
The Home Textile Exhibition held in Frankfurt, Germany, witnessed participation from approximately 3,000 companies representing 66 countries. Attendance on the second day of the exhibition showed improvement compared to the first day, indicating growing interest among industry stakeholders.
A significant number of Pakistani home textile producers participated in the exhibition as exhibitors. The Pakistani contingent included prominent manufacturers such as Gul Ahmed Textile, Feroze 1888, Younus Textile, Zaman Textile, Alkaram Towel, Naveena Exports, Liberty, Orient, Fashion Net, Mustaqeem, Meco, Fazal Cloth, Fazal Cotton, Kohinoor, Nishat Group, Alkaram, and several other established institutions from the country’s textile sector.
The robust attendance observed on the second day has generated optimism among industry participants. There are expectations that Pakistan will secure substantial orders from international buyers, which would provide positive support to the Pakistani economy during these times.
In domestic market developments, cotton prices in Punjab and Sindh provinces have experienced an increase ranging from 300 to 500 rupees per maund, depending on quality and payment conditions. Current rates are now running between 14,500 to 16,900 rupees per maund across these regions.
Meanwhile, prices for cottonseed, cottonseed cake, and cottonseed oil have remained stable in the market.
Karachi Cotton Brokers Forum Chairman Naseem Usman has reported that international cotton prices showed a mixed trend. The New York cotton futures price is currently trading between 65 to 68 American cents per pound.
Meanwhile, textile exports are continuously declining, which is a serious issue, according to the APTMA Chairman. Kamran Arshad, Chairman of the All Pakistan Textile Mills Association, has stated that textile exports are continuously declining, and this is a serious problem that poses a threat to Pakistan’s industry, economy, and employment.
While addressing a press conference in Islamabad, the Chairman of the All Pakistan Textile Mills Association said that textile exports have been decreasing from October to December, with textile exports falling by 8.55 percent in December alone.
He mentioned that the textile industry accounts for a 60 percent share in the country’s exports. The tariff for domestic industries has reached 34 rupees, and industries cannot operate under this tariff regime. The burden of other consumers is being placed on the industries, and the burden of cross subsidy is being imposed on the industrial sector.
The chairman stated that the load factor of power plants that are operational should be examined, while charges are also being collected for power plants that are not even running.
Furthermore, former federal minister for Commerce and Patron-in-Chief of the All Pakistan Textile Mills Association (APTMA), Dr Gohar Ejaz, has warned the government in unequivocal terms that Pakistan’s industrial sector has reached the brink of a severe crisis, as the escalating costs of electricity and gas continue to undermine the competitiveness of Pakistani products in international markets. He stated that Pakistan is rapidly losing its export orders to regional competitor countries where electricity rates average around 9 US cents per unit, whereas Pakistani industry has to pay 12 cents or more. He emphasised that no exporter can operate with such structural weakness, noting that success or failure in the global market today is determined by energy costs, and unfortunately Pakistan is losing this battle.
Meanwhile, according to informed sources, the Special Investment Facilitation Council (SIFC) is holding a meeting with business leaders today (Thursday), where concerns regarding taxes as high as 60 percent, poor governance, and excessive energy costs will reportedly be heard.
Additionally, the Pakistan Textile Council has written to the government demanding the elimination of the 160 billion rupees electricity cross-subsidy and surcharge. The council argues that unnecessary additional electricity charges on the industry have significantly increased production costs, thereby weakening exports and affecting the country’s export competitiveness.
The industry also objects that factories required to operate in three shifts are paying more expensive electricity due to the Time-of-Use (TOU) tariff structure. The council has expressed concern that if immediate action is not taken, exports will decline further and losses in the textile sector will increase. The entire textile industry is linked to cotton production.
Copyright Business Recorder, 2026
Comments
Comments are closed for this article.