The Karachi Cotton Association (KCA) has withdrawn its petition in the Sindh High Court challenging the evacuation of the Karachi Cotton Exchange Building on I.I. Chundrigar Road, which it claims to legally own.
Background
On December 12, KCA released a statement condemning what it described as an “unlawful raid” by the Evacuee Trust and FIA, despite KCA holding a valid lease from the Karachi Municipal Corporation (KMC) extending until 2081.
KCA Chairman Khawaja Mohammad Zubair told Dawn that discussions would be held in Islamabad to resolve the issue.
The sudden confiscation caused uncertainty in the cotton and textile sector, which is already affected by a goods transport strike.
Role of KCA
KCA is central to Pakistan’s cotton economy, with the trade—including banks, insurance, textiles, exporters, ginners, and growers—relying on its daily cotton price fixation under approved regulations.
Despite the dispute, Mr. Zubair confirmed that cotton spot rates are being issued from Wednesday onward.
Legal and Historical Context
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KCA was incorporated under the Indian Companies Act, 1913 before Partition.
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The property was initially leased by KMC to Seth Osman Saleh Mahome, Seth Haji Abdul Rahim, and Seth Abdul Gani.
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KCA purchased the land in 1936.
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After the lease expiry, it was renewed for 99 years from 1982 to 2081 following an application to KMC.
Some traders in the building are uncertain about its current status and may consider paying rent to the government if the Evacuee Trust acquires the property.
Next Steps
KCA plans talks in Islamabad to resolve the matter, aiming to stabilize confidence in the cotton market and ensure smooth operations in Pakistan’s pivotal cotton trade.
