January 26, 2026
Prices stable amid business activity decline
Cotton prices have remained stable while a decline in business volume has been observed.
The Federation of Pakistan Chambers of Commerce and Industry has demanded that the government impose an industrial emergency in the country.
The Pakistan Business Forum states that due to production cost exceeding thirty-four percent, our industry has become unable to sell goods, which has caused the economy to become imbalanced. Malik Talat Sohail says that exports are not progressing beyond the levels of two thousand twenty-two, and the closure of manufacturing continues with more than four hundred ginning factories and one hundred fifty textile industries among all manufacturing units shutting down.
APTMA states that due to high energy prices, elevated interest rates, and an overwhelming burden of various excessive taxes, not only the textile sector but all industries of the country are becoming inactive in such circumstances.
According to sources, approximately eight to nine hundred thousand bales of Afghan cotton were imported to Pakistan, which has stopped being imported due to the closure of Afghanistan’s borders, and now this cotton is being exported to Bangladesh and China.
For the past forty-five days, the Evacuee Property Trust Board, with the assistance of the Federal Investigation Agency, has sealed the building of the Karachi Cotton Association, due to which the highly important daily cotton spot rate could not be issued.
Three hundred twenty registered cotton brokers appeal that the building of the Karachi Cotton Association, which earns and provides billions of dollars to the country, has been seized and sealed for forty-five days, therefore the authorities should intervene.
During the past week in the local cotton market, the prices of quality cotton continued to remain stable. Quality cotton is becoming increasingly scarce with each passing day. Major textile groups are occasionally acquiring quality cotton selectively, and it appears that quality cotton may soon be depleted. Several ginners are holding cotton stocks and demanding higher prices, although APTMA is complaining almost daily about the continuous deterioration of the textile sector.
In such circumstances where there are high energy costs, elevated interest rates, and a multitude of various taxes, not only the textile industry but all industries across the country are becoming inactive.
According to FPCCI, if industries in the country are to be saved, an industrial emergency should be implemented immediately. Industries have reached this critical point, but it seems that those in authorities are in deep slumber, as if they have no concern whatsoever for this dire situation.
Daily newspapers and electronic media convey the message that everything is fine and the country is on the path of progress, whereas in reality the situation is quite the opposite.
For several years we had been importing approximately eight to nine hundred thousand bales of cotton from Afghanistan, which were lower in price and deliveries were also almost immediate. Considering our cotton requirements, approximately seventy-five to eighty ginning factories were established in Afghanistan. Cotton from Afghanistan was imported only by Pakistan. For several months now, trade with Afghanistan has been suspended.
The Afghan government is providing subsidies to ginners there, and cotton is being exported to Bangladesh and China.
According to received information, export agreements have been made with Bangladesh and China for two thousand tons of cotton each, and export agreements have also been concluded with Turkey and Iran. Thus the cheap cotton that was being imported for our textile industry and was available for the domestic textile sector has now been discontinued.
This is because for the past forty-five days EPTB, with the assistance of FIA, has sealed the KCE building, due to which the highly important daily cotton spot rate could not be issued.
In the provinces of Sindh and Punjab, cotton prices have been recorded at 15,000 to 16,700 to 16,900 rupees per maund, depending on quality and payment conditions. Ginned cotton is also available in limited quantities. The prices of cottonseed, cottonseed cake, and cottonseed oil are showing an increasing trend.
Naseem Usman, Chairman of the Karachi Cotton Brokers Forum, reported that the international cotton market has shown a mixed trend. The New York cotton futures price is ranging between 64 to 68 American cents per pound. According to the USDA’s weekly export and sales report, sales of 412,500 bales were recorded for the year 2025-26.
Vietnam topped the list of buyers by purchasing 220,700 bales. Bangladesh ranked second with purchases of 38,600 bales. Pakistan secured third position by purchasing 31,800 bales. For the year 2026-27, sales of 25,900 bales were recorded. Nicaragua led with purchases of 9,900 bales. Turkey ranked second by purchasing 8,500 bales. Indonesia came third with purchases of 7,500 bales. Pakistan ranked fourth with purchases of 2,700 bales.
Exports totalled 187,800 bales. Vietnam topped the import list by importing 62,300 bales. Pakistan ranked second by importing 45,900 bales. Indonesia came third by importing 16,600 bales.
Furthermore, the cotton industry generates billions of dollars in exports for the country and earns billions of dollars in foreign exchange. The Cotton Exchange houses offices of major institutions and exporters linked to cotton who contribute billions of dollars to the national economy and are patriotic entities.
The Cotton Exchange has been operating for 85 years and is a building connected to international business.
However, the EPTB has sealed it for the past 45 days with the assistance of the FIA. There are 320 registered cotton brokers whose offices conduct business worth millions of rupees daily. They handle thousands of cotton bales daily for textile mills and ginners.
The KCA’s daily cotton spot rate holds significant importance for commercial organizations, banks, insurance companies, textile mills, and ginning factories. This building has been owned by the KMC for decades, and the KCA has been regularly paying lease amounts. The lease has been paid up to 2081.
The question arises as to how the EPTB is now claiming ownership of the KCE building after approximately 85 years. Karachi Mayor Barrister Murtaza Wahab clearly stated in the Sindh High Court that this building is the property of the KMC, and the Sindh High Court has also issued a stay order.
There is a dispute between the KMC and the EPTB, and the Sindh High Court has ruled in favour of the KMC. If a stay order has also been issued, then why has the EPTB sealed the KCE building for the past 45 days and closed 209 offices? A petition has been filed in the Sindh High Court, and now the court will decide the matter.
Meanwhile, the economy is suffering from imbalance as the industry is unable to sell its products in the world market due to production costs that are 34 percent higher than those in the region.
President Khawaja Mehboob-ur-Rehman, Chief Organizer Ahmed Jawad, and Chairman for South and Central Punjab Talat Sohail criticized government policies, stating that exports have not progressed beyond the levels of 2022. The closure of more than 400 ginning factories, 150 textile industries, and all manufacturing industries continues.
Agriculture and industry are suffering from decline due to excessive taxes. They argued that production can be increased by immediately eliminating the general sales tax imposed on cotton products, cottonseed cake, cottonseed oil, and raw cotton. They urged the government to urgently review policies in consultation with stakeholders on an emergency basis so that industries can operate and the country’s exports can increase.
Moreover, more than 150 factories have already closed, and more are on the verge of closure. To save the textile industry, the government should immediately reduce electricity and gas prices, lower the interest rate to below ten percent, and eliminate unjustified taxes. This demand was made by Kamran Arshad, Chairman of the All Pakistan Textile Association, who was addressing a press conference alongside officials from other textile organizations. He stated that the government should provide electricity to the industry at 9 cents, end cross-subsidies, eliminate peak hour rates, and establish flat rates. The interest rate should be reduced to single digits between seven to eight percent, and unjustified taxes should be eliminated.
Exports have decreased from 16.5 billion dollars to 15 billion dollars since October. The government should include stakeholders in policy-making. He remarked that the government is making claims about economic improvement based on assumptions, but if there is economic growth, why are multinational companies leaving the country?.