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  • Oct 21st, 2010
  • Comments Off on Industry suffers huge production losses
Industrial production in the five industrial estates of the city suffered around 70-75 percent production losses owing to thin attendance of workers who failed to report on duty due to fear of violence and non-availability of public transport. The country also lost billions of rupees in revenue, as workers and officials preferred to stay at home.

Karachi on Wednesday mourned the death of 29 people, 12 of them in an attack on a scrap market in Shershah. Muttahida Qaumi Movement (MQM) had given a call of mourning for the day. As tension and panic gripped the city, public transport generally remained off the roads and people were unable to reach their workplaces and industrial units.

Industrialists claimed that one day's closure of industrial units in Karachi causes around Rs 5 billion production and revenue losses. Industrialist demanded of the government to establish a permanent squad in police to start surprise snap checking of vehicles. The squad must keep changing its place of snap checking so that the criminals should not know where the checking is going on. It should continue throughout 365 days of a year. Performance of the squad should be monitored on weekly basis.

The industrialists once again said that Karachi, which generates about 65 percent revenue, is rapidly becoming a "no-business and no-trade city", as there is no protection for life and property. Site, Federal 'B' Area, North Karachi and Korangi Industrial areas were the most affected.

A Karachi Chamber of Commerce and Industry(KCCI) meeting, scheduled to be held with Sindh Assembly Speaker Nisar Ahmed Khuhro on Wednesday, was postponed owing to pervading tense condition in the city. Korangi Association of Trade and Industry (KATI) Chairman Johar Ali Qandhari said that 70 to 75 percent workers opted to stay at home rather than taking risk to report on duty.

He said supply of finished goods to the wholesale and retail markets meant for exports from industry remained suspended throughout the day due to non-availability of transport and closure of markets. The worst affected was the North Karachi Industrial Estate. Former chairman of North Karachi Association of Trade and Industry (NKATI) Moiz Khan said that 100 percent industrial units in the area remained closed.

He said that continuing target killings in Karachi had made business community nervous, and added that running business is becoming impracticable day by day. He said that every day violence results in absence of labourers, delay in container shipments and loss of industrial production. He said that country suffers a loss of Rs 5 billion for a day owing closure of industry and port.

Giving breakup of losses, he said that the industry suffers production losses to the tune of Rs 2.5 billion, and port suffers revenue loss on imports and exports to the tune of Rs 2.5 billion. Site industrialists said that this is the biggest industrial estate of the country where around 5,000 industrial units produce goods worth Rs 3 billion daily, out of which goods worth Rs 1 billion are for export. Industry suffers production and export losses of Rs 3 billion a day.

Meanwhile, Siraj Kassam Teli, Chairman of Businessmen Group & former president of KCCI, Tahir Khaliq, Zubair Motiwala (Advisor to CM Sindh), Haroon Farooki, Anjum Nisar, Vice Chairmen & former presidents of KCCI, Talat Mahmood, acting president of KCCI, Junaid Ismail Makda, vice president of KCCI and managing committee members, in press statement expressed deep concern on the prevailing deteriorating law and order situation in the largest metropolis, industrial & financial capital of Pakistan, Karachi, and condemned the relentless waves of bloodshed and violence while vehemently criticising the failure of the government to control the situation.

They said that it is the business and industrial community which is the real stakeholder generating revenue to run the national affairs and the business and industrial community of Karachi generates the lion's share of 67 percent for the national exchequer and 35 percent of the GDP, but the government and the political stakeholders never recognised its importance.

They lamented that it is a great irony that in the present grave economic scenario, fatally stabbed economy by internal and external threats, the business community of Karachi is steadfast to fortify the industrial and commerce activities. However, in the prevailing difficult situation of increased target killings, kidnapping for ransom, extortion of money (bhatta), crimes against properties, decoities, car thefts, street crimes, etc, it has become impossible to continue doing business in Karachi.

They strongly urged the government to control the deteriorating law and order situation as it is the prime responsibility of the government to provide protection, safety and security. They said that deteriorating law & order situation stops the wheels of industry and disturbs the trading circles, incurring colossal losses of Rs 3 billion to Rs 5 billion per day and it takes 4 to 7 days for normalising the situation.

They said that the industries were the mainstay of nation's economy. Due to law and order situation more than 50 percent attendance of workers and manpower, owing to unavailability of transport, cannot reach industries. There are over 15,000 industries in Karachi's five industrials zones that are compelled to close due to law and order situation. Such closures also bring hunger for workers on daily wages and their family members are deprived of their basic needs of life, they added.

Commenting on the irresponsible news in the electronic media, they quoted an example and said that one news channel broadcasted closure of all educational institutions of the city while others reported otherwise, and this created hardships for students. They urged the press and electronic media to give authenticated news only. They said that the news regarding closing of businesses shall only be published or broadcasted with the verification from concerned trade body/chamber or association which are their genuine registered representatives and registered bodies.

They added that the business community, for the larger interest of the nation, despite extending co-operation at all times to all the political governments, has witnessed frail reciprocal. However, they urged the government to recognise the business and industrial community as the real stakeholders and control the situation of chaos, lawlessness and disaster otherwise the business and industrial community would be compelled to close down their businesses because they cannot work any more with constant threat to life and property. They also requested the print and electronic media not to publish or broadcast any news regarding closure of any schools/educational institutions or businesses without proper authentication.

Copyright Business Recorder, 2010


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