KARACHI: City’s business community has expressed serious concerns over an alarming surge in cases of extortion and demanded the provincial government and law enforcement agencies to ensure fool-proof security to traders and industrialists.

The Korangi Association of Trade and Industry (Kati) and All City Traders Ittehad Association have issued their separate statements, expressing profound concern over the escalating crisis, calling upon the government and law enforcement agencies to implement immediate and effective measures to combat the serious issue.

“The climate of fear and insecurity is not only alarming for the business community but poses a serious threat to the entire industrial structure,” said Kati President Mohammad Ikram Rajput.

He stated that industrialists in Karachi, already grappling with business challenges, now face a growing sense of uncertainty and instability that threatens to paralyse economic activity.

Kati, traders’ alliance urge govt, law enforcers to make joint strategy to dismantle extortion networks

He highlighted the severe intimidation tactics being used, noting that traders and industrialists are receiving constant threats. In several instances, extortion slips have been dispatched with bullets, creating a pervasive fear that prevents many victims from filing official complaints.

“This situation is a red alert not only for entrepreneurs but for the entire industrial framework, as an environment of fear and uncertainty is poison for both investment and employment,” he warned.

Citing reports, the Kati president provided a breakdown of the 96 extortion cases registered this year, with district Central being the most affected (37 cases), followed by district West (20), district East (15), and district City (12). The data also indicated five cases in district Malir and three in Korangi.

In response, security and police operations have led to the arrest of 33 alleged extortionists, while four suspects were killed in police encounters.

The atmosphere of dread is particularly palpable in industrial zones, including Korangi, where factory owners are operating under a constant shadow of fear. Recent incidents, such as firings at under-construction buildings, demonstrate the audacity of these criminal elements.

Mr Rajput remarked that the business community had previously alerted the government to the worsening situation, but a lack of decisive action has allowed the menace to grow.

“The extortion networks in Karachi are reportedly operated by various organised groups. There are also reports suggesting that the illicit funds extorted from the business community are being transferred abroad, adding another layer of complexity to the criminal enterprise,” he said.

Describing the situation as deeply troubling, Mr Rajput cautioned that if timely and concrete steps are not taken, the productivity of Karachi’s industries will be severely impacted, leading to negative consequences for the national economy.

He formally appealed to the Sindh governor, the chief minister, the director general of Rangers and the inspector general of police to devise a joint strategy to dismantle these extortion networks. He urged them to provide fool-proof security to traders and industrialists and to take stringent action against those involved in such crimes.

The Kati president affirmed that the business community stands ready to fully cooperate with the government to restore Karachi’s status as a secure hub for business, employment and investment.

Separately, patron-in-chief of the All City Traders Ittehad Association Sharjeel Goplani said in a statement that extortion in Karachi had never truly ended and continued to exist in different forms.

He stated that various business organisations and traders are still being forced to pay extortion money, and recently, the head of a major institution also received threats.

Mr Goplani said this ongoing situation reflects the failure of the system, the weakness of the police, and the negligence of law enforcement agencies. “Influential criminals continue to receive protection, while victims are pressured instead of being supported,” he added.

He revealed that affected traders are compelled to pay bribes at multiple levels — from the police to special task forces, and even during court proceedings.

“It seems as if extortion has become Karachi’s destiny. What was once settled for thousands has now reached demands of crores,” he remarked.

He urged the government and law enforcement authorities to take serious and practical measures to eliminate extortion and restore a sense of safety for the business community.

Published in Dawn, October 8th, 2025