The overall estimate of loss incurred in a day in Karachi owing to closure has been projected by the media at Rs2.5 — 3 billion. Qazi Masood, chief economist, planning department Sindh, considers the figure to be a gross understatement. – File Photo

MARRIUM, a young mother in early 20s, sits tight on a wooden frame, her hands moving like  a lever of an automatic machine, clipping extra threads on Banarsi material fitted on the loom. She works from home and earns Rs50 per piece of five meters silk.

On a good day, with steady supplies she can complete up to six pieces, working for straight eight hours. She was contacted by Dawn at her home near Banaras colony during a survey to assess the economic impact of the current wave of violence in Karachi.

Marrium said, she has to work harder to make up for the loss in family income as Karachi plunged into mindless violence. Her husband Riaz and her two brothers— all contract workers— lost income for days as they were unable to report for duty.

“Collectively, we hardly earn enough to make both ends meet. Believe it or not, any disruption in earning cycle for us means missing our meals”, Marayam said commenting on the impact of violence on her joint family.

“It is hardest to be a mother in this city”, Jehan Ara a middle aged haggard neighbour said. “I do nothing but worry. All day, I keep shouting trying to keep everyone indoors and all night dread for some horrific news about my loved ones. I do not care for income. Let my family be safe”.

Marrium was an exception in the locality as most other women home workers did not get deliveries because of the lean market and idle looms during the current month. Many small silk factory owners, whole sellers and retailers interviewed counted losses running in millions and expressed great anxiety over livelihood prospects if tension persists that too during the peak season for their business. The sales are highest during the current Islamic month of Shaban, the prelude to Ramazan that culminates in Eid—- the biggest Muslim festival.

The overall estimate of loss incurred in a day in Karachi owing to closure has been projected by the media at Rs2.5 — 3 billion. Qazi Masood, chief economist, planning department Sindh, considers the figure to be a gross understatement.

“Sindh contributes 33 per cent to the national GDP. If you account for the huge informal sector in Karachi and undocumented contribution of the service sector, the number would be many times more than the projection. I have no ready estimate with me but there is no denying the fact that the violence in Karachi is almost crippling the national economy,” he said.

“Besides, about 63 per cent of the labour force is located in Karachi. Consider the impact of income loss on working class families and the picture gets more depressing”, Masood added.

He did not know of any exercise by the planning department of Sindh to assess even the tangible cost of closure of Karachi to the economy of the province. He said he would try to persuade the economic hierarchy to let the planning department initiate a study to get a realistic assessment of the cost of business closure during these turbulent days.

Many business leaders of the city expressed their disgust over the conduct of leaders and mishandling of the situation by the government. That, they said, was making the country drift towards the edge. The looming uncertainty, rising costs, depleting profit margins, loss of credibility with trading partners because of missed delivery deadlines and threat to life and assets, have driven businesses to the wall.

They complained that the politicians were failing the democratic principles/ process and the people by playing petty politics, hurting the teetering economy.

“It is a terrible mess. What is sad is the fact that those in power do not seem to care. We are struggling to keep the boat floating”, Iqbal Ibrahim, former president All Pakistan Textile Association, said over phone commenting on the situation.

“Instead of focusing on strategy to expand my business, a better part of my day was consumed arranging for additional warehousing facility to ensure steady supply of raw material to my industrial unit and to meet export orders on time. Instead of two days, I intend to maintain inventory for a month for the time being. It most certainly pushed the cost up, eating into my margins”, he complained.

“It may just take a year to turn the economic situation around if people in power so wished. There are 2000 possibilities, all you need is sincerity and commitment”, Ibrahim commented on the prospects.

The leaders of Karachi Chamber of Trade and Industry were thoroughly disappointed. “I have to struggle hard to stay in spirits, for the tales that one gets to hear all day at the KCCI are scary enough to wear you down. I find the apathy of the leadership of the country amazing. How can you let the country’s commercial hub be paralysed?” Shafique Saeed president KCCI asked.

Shafique focused on linkages of Karachi, particularly cargo movement in and out of the port city and service industry with the rest of the country. “The national economy can simply not function if Karachi freezes”, he said.

The experts blame immaturity of the political leadership for the current pass. “If in the past, Pakistan Peoples Party government did not deliver because they did not enjoy free hand, this time round the party has started misfiring as it gained space in the power structure,” said an expert.

“It is commendable what the PPP achieved through NFC, Eighteenth Amendment, and in successful Swat operation, etc. If the party gained in rural Pakistan it is good for it. It must, however, remember that countries such as Pakistan cannot possibly be ruled on the strength of rural vote bank.

The government and the country face chaos if Karachi is not handled carefully and the economy is not put back on track”, she concluded.

“I see lack of social cohesion/internal security the most critical development challenge for policymakers over the period ahead. A government that fails to provide protection, an economy that fails to offer jobs, and a crises-ridden society that suffers from perpetual mistrust and widening gulf between conflicting interests, have no future. Pakistan currently scores low on all these counts. Anyone listening?” commented another expert.

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