KARACHI, Aug 7: Industrialists are cautiously busy in expanding their businesses to meet future challenges of post-WTO regime after January 2005. They, however, appear worried over uncertain law and order situation both locally and globally.
Except for the chairman, Korangi Association of Trade and Industry (KATI), Mian Zahid Hussain, other representatives of the industrial bodies do not show much enthusiasm in their attitude. They voice concerns over Wana and Balochistan tremors of which are being felt in Karachi through acts of terror here. Domestic political disturbances also haunt them.
Perhaps industrialists, whose products mainly sell in local markets, are more worried over the city situation as compared to exporters.
"Investments, expansion and balancing, modernization and renovation (BMR) are currently taking place in the area amid uncertain political and law and order situations," the chairman, Site Association of Industry, Mohammad Nisar Sheikhani said.
Due to scarcity of plots in the area, many industrialists are now engaged in vertical expansion of their businesses. There are many businessmen who are now upgrading and replacing their machines and plants to meet the requirements of future challenges from the post-WTO regime, starting from January 1. Many industrialists are also considering to make plans for expansion after January 1, 2005 in order to ascertain the business environment, he said.
He said many industrialists, having bigger plots, are bifurcating them and inviting entrepreneurs to set up small and medium enterprises.
So far, every exporter, particularly of textile and value added items, have been busy in upgradation and modernisation of their units to equip themselves for the competition with the expiry of Multi Fibre Agreement (MFA) from January 1, 2005 when the quota regime would end and the WTO would come into effect.
Besides law, order situation and political situations, the physical infrastructure in Karachi particularly is in absolute shambles, he said the government rectifying the situation but the pace is too slow to meet the future challenges of the WTO, which is set to usher in an era of "survival of the fittest."
It may be recalled here that 63 people lost their lives in May, 2004 alone in various acts of violence following 11 people in June in an attack on the convoy of Corp Commander while July as compared to May and June remained less violent.
On Saturday, two persons were killed and four others injured when a remote controlled bomb, planted in a car, exploded in Defence Authority area.
The chairman, Korangi Association of Trade and Industry (KATI), Mian Zahid Hussain offers a very different view. He said business expansion and modernisation of plants and machinery are being going on swiftly.
"There is virtually no fear factor among industrialists over the current political and law and order situation," he said adding that businessmen are confident that the government is doing its utmost to improve the political and law and order situation.
Opening of various bank branches (local and private) in almost every industrial area at a much faster pace as compared to previous years is a clear indication of rising business activities, BMR and vertical business expansion otherwise banks would have not taken risk of opening branches in the areas, he said.
He said that currently many countries are in the grip of various political tensions and its related violent activities and the same is going on in our country. He claimed that businessmen in his area have a very pragmatic approach to face the situation and help the government in improving the situation.
Industrialists and exporters are also ready to face the stiffening competition of post-WTO era. Situation relating to political and other violence activities will improve but the main challenge ahead is WTO which has to be fought by every businessmen, he said.
Currently businessmen in the area are perturbed over poor infrastructure facilities coupled with high cost of utilities that increases cost of doing business. These issues are to be addressed by the government in order to protect the industries so that it could face WTO challenges, Zahid added.
Vice Chairman F.B. Area Association of Trade and Industry, Idris Gigi said business expansion and extension are currently going on in a hope that conducive business environment will prevail.
"Industrialists in the area are worried over the Karachi's situation and working in a panicky situation," he said adding that the association has been continuously pointing out the lawlessness to the federal government and senior police officials. F.B. Area comprises 95 per cent of export-oriented industries.
The chairman, North Karachi Association of Trade and Industry (NKATI), Sadiq Mohammad said that people in their respective units are investing and expanding their business but with a slight fear in their minds over current city situation.
"How long this uncertain law and order situation will prevail. What is going to be future reaction in the city of various terrorist hunt operations being conducted in the neighbouring province," he said adding that security problems are rising.
In spite of all these scary outlook, industrialists and exporters are busy in BMR and replacement of old equipments in a hope that situations will improve.
He said his industrial area has not seen any new set up of industrial units with a big investment in the last three to four years.
Some areas have still got a few plots but prospective investors are reluctant to set up units due to poor infrastructure. The entire FB Area industrial area has infrastructure problem, Sadiq said.