Industrial, trading activities turn idle: Massive revenue loss
By Aamir Shafaat Khan
KARACHI, April 12: All the industrial and trading activities in the city came to a grinding halt on Wednesday in the wake of Tuesday’s Nishtar Park tragedy. More than 80 per cent industrial units in almost all the industrial estates could not operate for a very low turnout of workers and non-availability of goods transporting services.
All the major markets remained closed through out the day and even small time petty shopkeepers, in various localities, kept their shutters down. The Karachi Stock Exchange (KSE) also suspended trading and announced the normal business would resume from Thursday.
There was thin attendance at the private and public sector offices due to absence of public transport while many motorists opted to stay home in view of the uncertain situation in the city.
Containers and trawler owners also kept their vehicles parked at terminals. Majority of the petrol pumps were seen covered with tents and iron barricades and consumers, mainly two-wheeler owners, were seen requesting the petrol dealers for the fuel. A large number of daily-wagers industrial or otherwise stayed homes.
Site Association of Industry chairman Ameen Bandukda said that 80 per cent industries out of 3,000 units in the Site area couldn’t operate on Wednesday.
He said that workers and labour particularly from the morning to afternoon shifts could not reach the industries due to non- availability of public transport.
“Export of goods remained halted through out the day as no containers or trawlers were available,” he said, adding that supplies of finished goods to the market and procurement of raw material from the wholesale markets remained suspended.
The exchequer might have suffered a loss of Rs200 million in the shape of various taxes which were raised only from Site industrial area every day, he said.
“A very negative impression is being developed among the foreign buyers under the prevailing conditions. Exporters may have to face the music in future due to deteriorating law and order situation,” Ameen said.
Korangi Association of Trade and Industry (KATI) chairman Gulzar Firoz said that 80 per cent units out of over 2,500 units failed to run their operations on Wednesday due to complete absence of workers and labour.
“Some industries that were operational had hardly 20 per cent attendance of workers,” he said, adding even those who could attend the office preferred to stay at home owing to natural sympathy towards the tragic deaths.
He said that exports of textile, leather garments, leather goods, tanneries, etc., had been affected badly. “KATI contributes Rs250 million in the shape of taxes and duties to the national kitty on a single day,” Firoz said, adding that the loss in exports was phenomenal on Wednesday.
“Poor law and order situation gives a very wrong signal to the foreign buyers,” he remarked.
Chairman North Karachi of Trade and Industry (NKATI), Dawood Usman Jhakoora said that about 90 per cent industries remained closed on Wednesday which means that production in the area hit the bottom rock in a single day. A large number of workers did not turn up to their respective units, he added.
Executive Member of F.B. Area Association of Trade and Industry (FBATI), Muzzamil Hussain said that almost 100 per cent work in 2,500 units in the area remained suspended for the whole day as labour could not turn up to their work owing to absence of transport. The F.B. Area pays Rs25 million per day in duty and taxes to the exchequer.
Port Qasim Association of Trade and Industry (PQATI) chairman Naeem Ilyas Khanani said that workers’ attendance in the big units ranged between 50-60 per cent, while in small units attendance was recorded between 30-40 per cent. There were many units that remained closed through out the day. The area has 90 industrial units.
He said in big units’ (multinationals) production did not affect to the large extent but small and medium-sized units faced problems in running their units on full capacities.
Few years back, the Karachi Chamber of Commerce and Industry (KCCI) had conducted a study which revealed that the exchequer suffers Rs1 billion loss in terms of revenue if trading and industries activities come to a halt on a single day.
Federation of Pakistan Chambers of Commerce and Industry (FPCCI) president Ch Muhammad Saeed had condemned the terrorist bomb attack on the Eid-e-Miladun Nabi (SAW) congregation. He said that the ugly incident was one of worst in the history of Pakistan and hoped that those responsible for lapses in vigilance and security would be taken to task.
