Karachi’s Cotton Exchange Still Sealed Despite Court Order

The Karachi Cotton Association (KCA) has expressed concern that the historic Cotton Exchange Building remains sealed nearly a month after the Sindh High Court ordered that the association be allowed to regain possession and continue its operations without interference.

According to the KCA, the Evacuee Trust Property Board (ETPB) has yet to implement the court’s June 18, 2026 judgment, which stated that the association should enjoy possession of the property and continue its business activities while the ownership dispute is being resolved.

The association said the building has remained sealed since December 12, 2025, bringing its administrative operations to a complete halt. It added that documents and computers seized during the closure have not been returned, leaving the organization unable to carry out its day to day functions.

The prolonged closure has also disrupted businesses operating from the building, including cotton traders, ginners, spinners, exporters, and other tenants, causing significant financial losses to stakeholders and affecting Pakistan’s cotton trade, according to KCA Secretary General Aftab Ahmed.

Established in 1933, the Karachi Cotton Association plays a central role in Pakistan’s cotton market. Besides representing the industry, it publishes the country’s official daily cotton spot rates, provides arbitration services for commercial disputes, conducts cotton quality testing, and organizes technical training for participants across the textile value chain.

The dispute began in December 2025, when the Federal Investigation Agency (FIA) and the ETPB jointly sealed the Cotton Exchange Building after declaring it an evacuee trust property and also registered an FIR over alleged forged documents used to claim ownership.

The Karachi Cotton Association, the Karachi Metropolitan Corporation, tenants, and other stakeholders subsequently challenged the action before the Sindh High Court.

In its June 18 judgment, the Sindh High Court suspended a 1963 notification relating to the property’s status, referred the ownership dispute to the ETPB chairman for a fresh determination within 90 days, and ordered that the KCA should retain possession of the building and continue its business activities until a final decision is made. The court also quashed the FIA case linked to the ownership dispute.

However, the KCA later moved the court again, alleging that the ETPB had failed to comply with the ruling and seeking contempt proceedings against its officials for refusing to hand over the building despite the court’s clear directions