The Karachi Cotton Association (KCA) has expressed concern over the continued sealing of the historic Cotton Exchange Building, nearly a month after the Sindh High Court ordered that the association be allowed to resume operations without interference.
According to KCA officials, the Evacuee Trust Property Board (ETPB) has yet to implement the court’s June 18, 2026 ruling, which directed that the association retain possession of the building and continue its activities while the ownership dispute is being resolved.
Building Remains Closed Since December 2025
The Cotton Exchange Building has remained sealed since December 12, 2025, after a joint operation by the Federal Investigation Agency (FIA) and the ETPB. The closure has brought the association’s administrative operations to a standstill.
KCA stated that important office records, computers, and other equipment seized during the operation have still not been returned, preventing the association from carrying out its routine functions.
Cotton Industry Facing Financial Losses
The prolonged closure has also disrupted the businesses of cotton traders, ginners, spinners, exporters, and other tenants operating from the building.
KCA Secretary General Aftab Ahmed said the continued suspension has caused significant financial losses to stakeholders and negatively affected Pakistan’s cotton trade.
Established in 1933, the Karachi Cotton Association plays a vital role in the country’s cotton sector. Besides representing the industry, it publishes Pakistan’s official daily cotton spot rates, provides arbitration services, conducts cotton quality testing, and organizes technical training for industry participants.
Background of the Dispute
The controversy began in December 2025, when the FIA and ETPB sealed the Cotton Exchange Building after declaring it an evacuee trust property. Authorities also registered an FIR, alleging that forged documents had been used to claim ownership of the property.
The Karachi Cotton Association, along with the Karachi Metropolitan Corporation (KMC), tenants, and other stakeholders, subsequently challenged the action before the Sindh High Court.
High Court Ordered Possession to Remain with KCA
In its June 18, 2026 judgment, the Sindh High Court suspended a 1963 notification regarding the property’s status and referred the ownership dispute to the ETPB chairman for a fresh decision within 90 days.
The court also directed that the Karachi Cotton Association should remain in possession of the building and continue its operations until a final decision is reached. Additionally, it quashed the FIA case related to the ownership dispute.
KCA Seeks Contempt Proceedings
Despite the court’s directions, KCA alleges that the ETPB has not complied with the ruling. The association has approached the Sindh High Court once again, requesting contempt proceedings against ETPB officials for failing to hand over possession of the Cotton Exchange Building in accordance with the court’s order.
