Meeting of member's of Karachi Cotton Broker's Forum (KCBF) and members of Broker's Advisory Committee (BAC) was held on Wednesday in trading hall of the Karachi Cotton Exchange Building. The meeting was chaired by Chairman Naseem Usman and it discussed the various points and decided to send following proposals to the government and also requesting for earliest implementation. The government is requested to include below proposals in the Cotton policy, federal budget which is expected to be announced shortly.
To re-open hedge trading of raw cotton in Karachi Cotton Association (KCA), the government has already accorded its approval on 24-03-05, for the commencement of cotton futures trading under the KCA. The SECP ex-chairman, Razi Ur Rehman stated in a APTMA meeting held on the 28th February 2008 in Lahore that hedge trading contract of lint cotton should be resumed in about 03 to 04 month time. We therefore request that the government should ensure the resumption of cotton futures trading at the earliest. In the absence of hedge trading, cotton market has seen wild & wide fluctuations in price, which resulted in defaults in local and also in export trade. Naseem Usman, Chairman, Cotton Brokers Forum has expressed his concern over the decision of the SECP for granting permission to the Pakistan Mercantile Exchange Limited for introduction of future trading in cotton.
Naseem Usman urged upon the government to allow the KCA to manage the Cotton Futures Market the suspension of Notification issued for introduction of future trading in cotton at the PMEX in order to discourage speculations. Naseem Usman urged upon the government to suspend the notification issued for introduction of futures trading in PMEX and emphasised allow the KCA to resume hedge trading in Cotton Exchange under aegis of the KCA We therefore appeal to the honourable president of Pakistan, Prime Minister, Federal Ministers of Finance, Commerce, Agriculture and Textile to look into the matter. Seriously to get rid of crisis.-PR