The FIA’s controversial takeover of the Cotton Exchange Building in Pakistan has halted the daily cotton spot rate, significantly impacting the entire supply chain. The takeover coincides with ongoing legal proceedings and a corruption crackdown that resulted in multiple arrests.
As of early Tuesday, cotton prices in Sindh and Punjab are trading between Rs 19,500 and Rs 21,000 per maund. The daily cotton spot rate has remained suspended since December 12, 2025. This disruption affects not just local traders but also international markets.
International cotton markets are currently experiencing strong bullish momentum. New York Cotton Futures have reached 85 US cents, indicating a robust global demand for cotton. However, local textile manufacturers face challenges due to rising energy costs and interest rates.
Recent Developments:
- The FIA Anti-Corruption Circle arrested 10 accused individuals in April 2026.
- Pakistan’s textile industry showcased its capabilities at Techtextil and Texprocess exhibitions in Frankfurt.
- Nissan Formula E Team’s Oliver Rowland secured podium finishes in Berlin.
Officials have noted that these arrests reflect the FIA’s commitment to accountability and taking decisive action against corruption. Meanwhile, local textile producers expressed concerns over how these legal troubles will further impact their operations.
Mohd Noman Qadir from the textile sector stated, “The fair was highly productive, with strong orders from European buyers.” Yet, uncertainty looms as stakeholders await clarity on how the FIA’s actions will reshape the cotton market.
