Karachi losses estimated at Rs 20 billion
KARACHI (May 15 2007):
Economy faces losses over Rs 20 billion, as the trading and industrial activities in the economic hub of the country, Karachi, were suspended completely for the last three days due to political unrest and violence across the city.
Karachi being the major engine of country's economy, where around more than 14,000 large industrial units are operating and contribute 68 percent to the national exchequer.
"Out of 14,000 industries, none has been operating since Friday evening, halting production process completely in all the five major industrial areas including SITE, Korangi, F.B area, North Karachi and Landhi industrial area of Karachi due to unavailability of labour," an industrialist said.
Pakistan's per day economic activities generate around $500 million out of which Karachi contributes at least 25 percent or $150-175 million per day, therefore, Karachi has faced with around $300-350 million (Rs 18-21 billion) due to suspension of two days' economic activities, said economist Muzamil Aslam.
Shahid Hasan Siddique another economist said,
"Karachi's industries suffered production losses over Rs 12 billion due to violence, deteriorating law and order situation for the last three days, tarnishing country's image internationally."
He forecasts that economy faces further direct and indirect financial losses in the shape of dim prospects of foreign investment due to political turmoil and increasing security concerns.
"Twelve billion rupees is the estimated figure of financial losses, while the long-term losses are higher than these," he added. He said that international media have widely covered the Karachi violence on Saturday that has confirmed Western media reports that Karachi is an unsafe city for investment.
It is also expected that now foreign investors will also avoid visiting Pakistan especially Karachi due to new travel advise issued by different countries, he added.
"Karachi contributes Rs 1.25 billion per day in term of taxes to the national exchequer and during the last three days not a single penny has been paid in taxes," said Zubair Motiwala former chairman SITE Association of industry. He said that national exchequer has suffered loses of Rs 3 billion only due to the suspension of industries and trading activities in the metropolitan.
Political activities in the city have badly hit the export process and shipments have not been dispatched since Friday due to political tension in the city, he added.
Masood Naqi chairman Korangi association of industry said that export oriented industries of Korangi industrial area remained completely shut during the last three days. He claimed that Korangi industrial area has faced financial losses over Rs 3.5 billion in the terms of production, besides Rs 750 million taxes.
Small traders have claimed that they have suffered losses over Rs 5 billion in terms of sales. Atiq Mir chairman Alliance of Market Associations said that
more than 500 trading market and around 25,000 shops remained closed since Friday, while more than 10 shops of small traders have been torched during the violence. Other than traders, the daily wagers have been affected losing source of income during the period.
Transporters also have suffered huge financial losses as more than 25 busses have so far been set ablaze by the mob during the violence in the city on Saturday and Sunday. They informed that we are compiling exact figures and will release them today, which approximately stand at Rs 20 billion. The port sources also confirmed that port activities have come to a halt as not a single export shipment has yet reached the harbour for export during the last three days.
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