PESHAWAR, Jan 27: A significant part of local economy has seen regression as commercial activities in Peshawar have recorded a sharp decline due to suspension of supplies to Nato forces in Afghanistan, according to businessmen.

Thousands of daily wagers, truckers, helpers and hundreds of mobile-crane operators associated with small enterprises that popped up because of a growing business of supplies to Nato troops in Afghanistan via Peshawar, are risking loss of employment in case the current situation continues.

“If this situation (loss of business) continues for another month or two it’ll become impossible for us to sustain Rs200,000 monthly expenditure, forcing us to lay off at least half of our 10-member staff,” said Imran Khan, who runs a private truck terminal on Peshawar’s outskirts.

The unplanned semi-developed urban localities of Peshawar, including Hazarkhawani, Garhi Qamer Din, and Pishtakhara saw a sudden decline in commercial activities after the Defence Committee of Cabinet decided to block supplies to Nato in a tit-for-tat response to the allied forces’ deadly attack on two Pakistani posts at Salala, Mohmand Agency, on
November 26.

Jehanzeb Khan Afridi, president of Khyber Trailer Drivers and Workers Union (KTDWU), told Dawn that some 4,000 workers associated with the business directly and indirectly were at verge of losing jobs.

“Unemployment is looming for many as employers cannot afford to pay them salaries for a longer period,” said Mr Afridi.

Many entrepreneurs are worried about their investments because of the stalemate.

Aalam Sher, owner of a truck terminal on Ring Road, said that he bought seven mobile cranes at Rs10 million each and made investment to set up the terminal on his priced agriculture land, giving up farming as the new business promised huge returns.

“It (business) has become unpredictable as cranes remain stationed on most of the days except when someone needs moving heavy machinery or lifting vehicles smashed in road accidents,” said Mr Sher.

He said that around 80 per cent of business activities on Ring Road had vanished due to suspension of Nato supplies.

He said that most of his about 250 cranes, each involving Rs10-15 million investment, had become idle. Many people bought trucks and trailers to benefit from the growing business
opportunity triggered by the start of supplies to Nato via Pakistan in 2001.

Peshawar has seen a large quantum of Nato supplies channeling through its 35 sloppy truck terminals that popped up on the Ring Road with substantial investment by unorganised businessmen with deep pockets.

Mr Afridi said that between 400 and 600 trailers of different sizes used to leave Ring Road’s truck terminals daily with supplies (unspecified military hardware and non-military items) to Nato troops in Afghanistan.

“These days not even 100 trucks originate daily from Peshawar and those, too, with export goods to Afghanistan,” said the truckers’ leader.

The decrease in demand for Afghanistan-bound trailers had brought down the transportation charges. “A trucker that earlier charged Rs120,000 per trip to Afghanistan now charges Rs70,000 for the same,” said Mohammad Yousuf, vice president of KTDWU.

Mr Afridi, the union president, said that many small investors were at the verge of bankruptcy and drivers who had borrowed money to own and operate their own trucks were
unable to pay loan installments due to loss of business.

“Some of them have disinvested their vehicles to return the loan. In some instances, the lenders have forcefully taken over the trucks after the borrowers failed to pay the installments since the stoppage of the Nato supplies,” said Mr Afridi.

The investors like Mr Sher have been looking towards the government amidst uncertainty about the future. Mr Sher said that he had been waiting for the revival of normal
relationship between Pakistan and Nato.

“Otherwise, I’ll pack up from here and start farming,” he said.

Insaaf Hotel, a small-time roadside eatery catering to truckers close to Mr Sher’s terminal, has recently been shut down. Several vendors selling fresh fruits on wooden carts have also left because there are not many buyers these days.