August 04, 2006	Friday	Rajab 8, 1427

KARACHI, Aug 3: Industrial activities in Karachi remained paralysed for the fifth consecutive day on Thursday, as the power supply to five major industrial areas remained cut off or was irregular that hampered the normal production activity. It has been so since last Sunday when rains started to lash the city.

All the industrial areas -– Site, Korangi, North Karachi, F.B. Area and Landhi, housing around 2,000 to 2,500 units each -- are involved in the production for exports. Power supply interruptions in particular affect such units, as they have deadlines to meet failing which they incur losses sometimes amounting to billions of rupees.

With each passing day industrial losses are rising, as most of the export-oriented industries are apprehending to lose their export contracts or cancellation of L/Cs. The situation will impact negatively on future prospects.

“We have already missed shipping schedules but are still trying to renegotiate with our foreign buyers for rescheduling our L/Cs timeframe,” asserted a leading textile exporter. He said Pakistan was facing a tough competition from exporters of Bangladesh, India and China and was losing markets owing to high input cost and this situation would further weaken the country’s position in the world market.

Capt A Moiz Khan, patron-in-chief of the North Karachi Association of Trade and Industry, lamented that due to unabated power failure since Sunday, the entire industrial area of North Karachi remained affected.

He said shipments were being delayed, thereby causing colossal financial losses to exporters and estimated that around Rs2.5 billion loss had been suffered during the last five days of power breakdown.

There are around 2,500 small and medium sized industrial units in the North Karachi industrial area and many are export oriented. Mr Khan said that 35 per cent units belonged to garment manufacturing where mostly female workers were engaged. However, since the power breakdown the production activity almost came to a halt in these units.

He was highly critical about the KESC management and said some reports suggested that preference had been given to residential and commercial consumers for rectifying faults developed after heavy downpour. Mr Khan said this was against the interest of the country because by halting industrial activity not only exports suffered but industrial workers also lost their daily wages. He appealed to Sindh Chief Minister Dr Arbab Rahim and Governor Dr Ishratul Ibad to take serious notice of the situation and put things right before it was too late.

A similar situation was observed in the Korangi industrial area where around 2,000 industrial units of large and medium sized are located, including two oil refineries. This area earns around Rs250 million per day in taxes for the country and provides jobs to millions of industrial workers.

Korangi Association of Trade and Industry chairman Gulzar Feroz told Dawn that there had been no power supply to the entire industrial area since last Sunday. The power supply was restored to some parts on Thursday but yet many areas are without power.

“Even today most of the industries are running at 50 per cent capacity and some are still using generators to which there is a limit,” he observed. Furthermore, he said even telephones were dead and roads were almost non-existence, as most of them swept under heavy rains.

“There are around 170 tannery units, 300 textiles and a number of pharmaceuticals and chemical industries and the area industries have suffered a production loss to the tune of Rs3 billion during the last five days,” he added.

Site Association chairman Ameen Bandukda said there was hardly any change in the situation on Thursday, as the power supply had not been restored so far. He said a meeting was held with high officials of KESC on Thursday afternoon and assurances were given to rectify the situation at the earliest.

Former Site Association chairman Majyd Aziz said the KESC distribution system was in a mess and could not bear even a little shower what to talk about four days continuous rains. He said his industrial units had been out of production since Sunday and KESC staff had been trying to restore the power supply.He said after finding fault in cables running between feeders, the utility staff was unable to find fault running between feeders and his industries. As a result of this situation, he said there was no water in the industry and telephones were also out of order.

In general almost all the industrial areas complain of non-existence of basic infrastructure, such as roads, sewerage, power and telephones. They feel that such factors add to their cost of production and also make their products of poor quality. They urged upon the authorities to work on war footings to provide these facilities if the country had to see progress and employment was to be created.