Karachi (Commerce Desk): Along with the impact of rising tensions between the United States and Iran, the suspension of cotton spot rate issuance in Pakistan due to the continued sealing of the Cotton Exchange building has affected domestic cotton trade and export activities.
According to details, the absence of spot rate issuance by the Karachi Cotton Association for the past four and a half months has resulted in Pakistan, despite being a major cotton-producing country, losing its representation in the global cotton market.
Experts say that due to this situation, the banking sector is facing difficulties in issuing loans to textile mills and ginning factories, while insurance companies are also encountering obstacles in settling cotton-related claims.
According to the Chairman Cotton Ginners Forum, the Cotton Exchange building was sealed on December 12, 2025 due to a property dispute and remains under judicial proceedings. Due to the closure, the issuance of spot rates has not been restored.
The report further states that rising temperatures have affected cotton sowing in various cotton-growing zones, while early sowing in coastal areas of Sindh may lead to the ginning season starting in mid-May this year, which could improve early cotton availability for the textile industry.
