KARACHI, April 21: The setting up of commercial units in Site and Korangi industrial areas is gaining momentum as owners are either renting out their existing units or selling them out for trading activities.

However, the F.B. Area and North Karachi industrial areas have not witnessed any such activity.

When the industrialists feel that their production operations have turned unprofitable they prefer to commercialise their units by giving them on rent or selling for a handsome amount. These also include units closed for many months.

The sprawling commercial activities in Site industrial area, includes opening of warehouses and godowns, CNG and petrol filling stations, commercial offices and showrooms, and commercial banks, etc. Currently, around 120 of such commercial units have been set up replacing industrial units, while many other commercial units are in the offing.

Recently, an industrialist sold his spinning mill, which would be turned into a huge commercial centre, while a supermarket chain, Makro, has already become operational on a huge plot in Site area.

Many industrialists have rented out their specific space for the opening of CNG and petrol pumps. As a result, like in some residential areas, four to five CNG pumps are in operation within a short distance of two km. All big and small commercial banks have opened their branches in Site area.

Sources said that many industrialists in the area had been active in investing in the booming property business in Dubai. Some have set up their offices there and pay fortnightly or weekly visit.

Chairman Site Association of Industry Nisar Shiekhani said that the industrial activity in the Site industrial area is now heading for a big transformation which is replacing industrial units with trading, which is a bad sign for the industrial development of the country.

Besides, commercialisation a composite weaving unit had already shifted to Rahim Yar Khan, while an export oriented textile dying and printing unit had suspended its operation from April 15, owing to lingering crisis in the textile resulting into thin orders.

Sheikhani said that the commercial activities did not generate higher employment as compared to an industrial unit, which provides both direct and indirect job opportunities.

He recalled that as per the memorandum and article of Site Limited, the main aim of establishing the Site Industrial area was to encourage and support the industrial activities. Now the situation has almost become reverse.

The Site chairman said that the industrialists seek permission from the SITE Limited for change of trade and they have to pay extra amount for the land to be used for commercial activity.

He said that the Site Limited should discourage such kind of commercial activities, otherwise time is not far when the country’s oldest estate would be called a commercial hub rather than an industrial hub of Karachi.

However, he said it is really not possible for any body now to invest in Site area where there is hardly any plot available. In case there is a plot or one being sold by the industrialist, the rate of plot ranges between Rs50-70 million depending on the location.

Chairman Korangi Association of Trade and Industry (Kati) Shaikh Fazl-e-Jalil said that the owners of three big textile mills on the main road are seeking permission for commercialization. They have approached the Kati so that it could put up their case before the City government. They are planning to rent out their units.

These textile units owners feel that running mills under the current economic circumstances is, too, costly to cover the rising cost of production. He said that many industrialists situated on the main roads have been active in renting or selling out their units.

He said many industrialists have rented out their units for setting up go-downs and warehouses, some of which are illegal. The commercial activities in Korangi area have picked up pace in the last one year,” he added.

Chairman North Karachi Association of Trade and Industry (Nkati) Noor Ahmed said that his area had not seen yet any prominent commercial activity. However, industrialists have their own godowns, which are the basic requirements.

Banks have also opened up their branches, which is also a necessity. Few CNG stations have become operational.

Senior Vice Chairman F.B. Area Association of Trade and Industry Muzammil Hussain said that there were no significant commercial activities taking place in the area. Factory owners, having two to three storey buildings, are renting out to only those, who plan to set up industrial units.