Patriots
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Karachi is the largest city and economic hub of Pakistan, which is also called revenue engine of the country owing to its contribution of about 70 percent of the total revenue. The city, which has two of the three seas ports of the country, has a stunning ethnic diversity, with representation of each and every ethnicity and community living in Pakistan.
Peace in Karachi is considered crucial for economic growth and stability of the country, which accounts for the lion's share of GDP. Karachi produces about 42 percent of value added in large scale manufacturing and 25 percent of the GDP of Pakistan. In 1960s Karachi has been an economic role model for many countries in the world. Many countries sought to emulate Pakistan's economic planning strategy and one of them, South Korea, copied the country's second "Five-Year Plan". The World Financial Center in Seoul is said to be designed and modelled after Karachi. In February 2007, the World Bank identified Karachi as the most business-friendly city in Pakistan. According to economists, Karachi's contribution to GDP amounted to around 16 billion rupees a day.
The city remained largely safe from the worst kind of militancy, suicide attacks, bomb and blasts that wracked the country especial the northern parts during the last four years. But the city has been bedevilled with targeted killings, ethic and secretarial clashes, turf war by different political and criminal groups, extortion activities, bank dacoities, robberies and other street crimes.
Last year nearly 1,800 people were killed in the port city while about 400 people have been killed and score other injured in first three and half month of 2012. With each political or sectarian killing, the whole or parts of the city plunged into chaos, leading to closures of business, trade and industry, taking a heavy economic toll on the city and the country.
According to trade and industry circles, the unabated violence and chronic energy crisis have made the city, which was dubbed just five years ago as 'most business-friendly city in Pakistan', not so viable for trade, business and industrial activities. They said that the recurring ethno-sectarian violence and unchecked activities of different mafias are deterring investors from investing in the country especially in the city. The situation has assumed such an alarming proportion that industrialists have started relocating their units to different countries including Sri Lanka, Bangladesh, Malaysia and even Cambodia.
Chief of Citizen Police Liasion Committee (CPLC) Karachi Ahmed Chinoy, who is himself a prominent businessman, acknowledges that the continuing violence was shying away the investors from investing in the country especially in the city. He added that the violence and subsequent closures of industrial units not only caused huge losses to the industrialists but also jacked up the cost of doing business.
Sources said that the chronic law and order situation in Karachi, which is the economic heartbeat of the country, has caused large-scale relocation of industrial units in the city to other countries. They added that the big industrial units have set up their units in Sri Lanka, Bangladesh and even in some African countries and some are in process of expanding their business to abroad. They are of the opinion that not only new industries unit are not being set up in the city but the existing units have ceased expansion due to the persistent law and order situation that hamper smooth and consistent operation of industrial and business concerns.
Market sources said the deteriorating law and order situation in Karachi were also affecting foreign investment as well. Foreign investment in Pakistan was $5.4 billion four years ago, which slid to $1.6 billion last year and is expected to further reduce to a maximum of $1 billion in the financial year ending on June 30.
President, Karachi Chamber of Commence and Industry (KCCI), Mian Abrar Ahmad, says that a single day closure of industry cost the industrialists about Rs 40 billions. Apart from the industrial sector losses, a day closure of business and trade amount for Rs 3.5 to 4 billions, while the Federal Board of Revenue summarizes the cost of one day closure of Karachi to national exchequer in term of revenue losses in billion rupees.
According to a report inBusiness Recorder, the FBR has estimated revenue loss due to closure of trade and industry owing to violence on March 27 at Rs 13 billion. This speaks of itself that how important peace in Karachi is for economic growth and prosperity of the country.
As the ongoing energy crisis has had its detrimental impact on the economy of the country, the persistent law and order situation in the port city of the country has taken and is still taking a punishing economic toll. Mian Abrar says that the deteriorating law and order situation is inflicting colossal financial losses and will widen the trade deficit due to failure in meeting export commitments, cause flight of capital, huge labour layoffs, and increase in crime rates besides decline in the revenue of the government.
He explained that the closure of industry lead to increase in cost of doing business, as they industrialists had to pay salaries, electrify tariff and other payment without any production, subsequently rendering Pakistani products uncompetitive in the global markets against the regional competitors.
He deplored that the government and law enforcement agencies have failed in providing safety and security to business and industrial community. He said that during last few months, the illicit activities of extortion, murder and street crimes have been on the rise, leading to disenchantment among business and industrial communities. The traders and industrialists are skeptic about government commitment and will to provide safety and security to the citizens, traders and industrialists.
The weakening writ of the government and its non-seriousness has complicated the law and order situation of Karachi. The common people, traders and industrialists are losing faith in the state apparatus especially in the capability and strength of law enforcement agencies to provide security to their lives and properties.
The citizens, traders and industrialists of the violence hit city have become so sensitive and cautious about their security that after a single incident of targeted killing or violence they rushed to their homes for safety. Chairman Alliance of Market Association Atiq Mir says that just 10 armed men are enough to shut the whole city.
He added there is new trend as only a handful of miscreants shut the city of about 20 million people. "A few miscreant resorts to aerial firing in city areas, put on fire public transport and private vehicles and ask the citizen and traders to remain indoor next day, then the whole city remain shut the other day, as the law enforcement agencies presence and effectiveness as a deterrence against arsonists and miscreant have diluted," headed.
He said that the law enforcement agencies are seemed have become helpless against the criminals and extortionists, who are operating with impunity in the city. He came down hard on the government for lack of political will and concerted efforts to maintain law and order situation in the most important city of the country. He says there is no consistency in government efforts to contain violence and provide the businessmen and trader an enabling environment to flourish business and industrial activities.
To a question, Mir said that 200 to 250 traders of the city received calls and 'chit' demanding extortion. He said these are the cases which the affected traders conveyed to them, while numerous cases go untold as the traders fear for their life and pay the extortion quietly.
However, Sindh Home Department Consultant Sharfuddin Memom says that the government had taken and was taking a number of steps to contain violence, targeted killings, extortion, dacoities and street crimes. He said that under the directives of home minister, as many as 15 centres of Madadgar-15 had been reactivated. Each centre has been equipped with a police mobile and four motorcycles, besides manning with 50 policemen to quickly respond to the complaints of citizens, traders and industrialists.
Police and Rangers check pots have been set up in the affected areas of the city, he told BR Weakened. On the directives of President Asif Ali Zardari, the strength of Karachi police was being enhance to effectively deal with the law and order situation, he said, adding that 10 thousands new policemen would be recruited. He maintained that at least eight thousand policemen would be given special training.
Memon, who has also been CPLC chief, said that the home department would setting up command and control system with 900 close circuit TV (CCTV) cameras to monitor the city in order to curb criminal activities, violence and street crimes. He said that the system would be functional within month.
Regarding the traders' complaint about extortion, he said that an Anti Extortion Cell has been established in Special Investigation Unit (SIU) of police. To a question, Memon said that the department has prepared a Witness Protection Plan, which has been approved by the cabinet and would be tabled in the Sindh Assembly soon for giving it a legal shape.
He pointed out that even when police arrest the people involved in targeted killing, extortion, dacoities, terrorism and other crimes, they managed to get bail from court due to loopholes in legal system. He said that there was an urgent need to revamp the criminal justice system of the country. The home department consultant said that police have arrested 150 accused involved in targeted killings and 300 alleged extortionists.
He pledged that the law enforcement agencies would soon establish complete peace in the city, providing enabling and conducive environment for trade and industrial activities.
On the other hand, CPLC chief Ahmed Chinoy says that the CPLC was actively playing its role to eradicate crimes from the city. He said that CPLC has a supportive role, which help law enforcement agencies and police in combating crime and arresting criminals.
Regarding extortion, he said that CPLC was playing important role in combating the illicit activity. Had CPLPC not been there, the cases of kidnapping for ransom and extortion would have been much higher.
How important is Karachi to Pakistan? | Business Recorder
Peace in Karachi is considered crucial for economic growth and stability of the country, which accounts for the lion's share of GDP. Karachi produces about 42 percent of value added in large scale manufacturing and 25 percent of the GDP of Pakistan. In 1960s Karachi has been an economic role model for many countries in the world. Many countries sought to emulate Pakistan's economic planning strategy and one of them, South Korea, copied the country's second "Five-Year Plan". The World Financial Center in Seoul is said to be designed and modelled after Karachi. In February 2007, the World Bank identified Karachi as the most business-friendly city in Pakistan. According to economists, Karachi's contribution to GDP amounted to around 16 billion rupees a day.
The city remained largely safe from the worst kind of militancy, suicide attacks, bomb and blasts that wracked the country especial the northern parts during the last four years. But the city has been bedevilled with targeted killings, ethic and secretarial clashes, turf war by different political and criminal groups, extortion activities, bank dacoities, robberies and other street crimes.
Last year nearly 1,800 people were killed in the port city while about 400 people have been killed and score other injured in first three and half month of 2012. With each political or sectarian killing, the whole or parts of the city plunged into chaos, leading to closures of business, trade and industry, taking a heavy economic toll on the city and the country.
According to trade and industry circles, the unabated violence and chronic energy crisis have made the city, which was dubbed just five years ago as 'most business-friendly city in Pakistan', not so viable for trade, business and industrial activities. They said that the recurring ethno-sectarian violence and unchecked activities of different mafias are deterring investors from investing in the country especially in the city. The situation has assumed such an alarming proportion that industrialists have started relocating their units to different countries including Sri Lanka, Bangladesh, Malaysia and even Cambodia.
Chief of Citizen Police Liasion Committee (CPLC) Karachi Ahmed Chinoy, who is himself a prominent businessman, acknowledges that the continuing violence was shying away the investors from investing in the country especially in the city. He added that the violence and subsequent closures of industrial units not only caused huge losses to the industrialists but also jacked up the cost of doing business.
Sources said that the chronic law and order situation in Karachi, which is the economic heartbeat of the country, has caused large-scale relocation of industrial units in the city to other countries. They added that the big industrial units have set up their units in Sri Lanka, Bangladesh and even in some African countries and some are in process of expanding their business to abroad. They are of the opinion that not only new industries unit are not being set up in the city but the existing units have ceased expansion due to the persistent law and order situation that hamper smooth and consistent operation of industrial and business concerns.
Market sources said the deteriorating law and order situation in Karachi were also affecting foreign investment as well. Foreign investment in Pakistan was $5.4 billion four years ago, which slid to $1.6 billion last year and is expected to further reduce to a maximum of $1 billion in the financial year ending on June 30.
President, Karachi Chamber of Commence and Industry (KCCI), Mian Abrar Ahmad, says that a single day closure of industry cost the industrialists about Rs 40 billions. Apart from the industrial sector losses, a day closure of business and trade amount for Rs 3.5 to 4 billions, while the Federal Board of Revenue summarizes the cost of one day closure of Karachi to national exchequer in term of revenue losses in billion rupees.
According to a report inBusiness Recorder, the FBR has estimated revenue loss due to closure of trade and industry owing to violence on March 27 at Rs 13 billion. This speaks of itself that how important peace in Karachi is for economic growth and prosperity of the country.
As the ongoing energy crisis has had its detrimental impact on the economy of the country, the persistent law and order situation in the port city of the country has taken and is still taking a punishing economic toll. Mian Abrar says that the deteriorating law and order situation is inflicting colossal financial losses and will widen the trade deficit due to failure in meeting export commitments, cause flight of capital, huge labour layoffs, and increase in crime rates besides decline in the revenue of the government.
He explained that the closure of industry lead to increase in cost of doing business, as they industrialists had to pay salaries, electrify tariff and other payment without any production, subsequently rendering Pakistani products uncompetitive in the global markets against the regional competitors.
He deplored that the government and law enforcement agencies have failed in providing safety and security to business and industrial community. He said that during last few months, the illicit activities of extortion, murder and street crimes have been on the rise, leading to disenchantment among business and industrial communities. The traders and industrialists are skeptic about government commitment and will to provide safety and security to the citizens, traders and industrialists.
The weakening writ of the government and its non-seriousness has complicated the law and order situation of Karachi. The common people, traders and industrialists are losing faith in the state apparatus especially in the capability and strength of law enforcement agencies to provide security to their lives and properties.
The citizens, traders and industrialists of the violence hit city have become so sensitive and cautious about their security that after a single incident of targeted killing or violence they rushed to their homes for safety. Chairman Alliance of Market Association Atiq Mir says that just 10 armed men are enough to shut the whole city.
He added there is new trend as only a handful of miscreants shut the city of about 20 million people. "A few miscreant resorts to aerial firing in city areas, put on fire public transport and private vehicles and ask the citizen and traders to remain indoor next day, then the whole city remain shut the other day, as the law enforcement agencies presence and effectiveness as a deterrence against arsonists and miscreant have diluted," headed.
He said that the law enforcement agencies are seemed have become helpless against the criminals and extortionists, who are operating with impunity in the city. He came down hard on the government for lack of political will and concerted efforts to maintain law and order situation in the most important city of the country. He says there is no consistency in government efforts to contain violence and provide the businessmen and trader an enabling environment to flourish business and industrial activities.
To a question, Mir said that 200 to 250 traders of the city received calls and 'chit' demanding extortion. He said these are the cases which the affected traders conveyed to them, while numerous cases go untold as the traders fear for their life and pay the extortion quietly.
However, Sindh Home Department Consultant Sharfuddin Memom says that the government had taken and was taking a number of steps to contain violence, targeted killings, extortion, dacoities and street crimes. He said that under the directives of home minister, as many as 15 centres of Madadgar-15 had been reactivated. Each centre has been equipped with a police mobile and four motorcycles, besides manning with 50 policemen to quickly respond to the complaints of citizens, traders and industrialists.
Police and Rangers check pots have been set up in the affected areas of the city, he told BR Weakened. On the directives of President Asif Ali Zardari, the strength of Karachi police was being enhance to effectively deal with the law and order situation, he said, adding that 10 thousands new policemen would be recruited. He maintained that at least eight thousand policemen would be given special training.
Memon, who has also been CPLC chief, said that the home department would setting up command and control system with 900 close circuit TV (CCTV) cameras to monitor the city in order to curb criminal activities, violence and street crimes. He said that the system would be functional within month.
Regarding the traders' complaint about extortion, he said that an Anti Extortion Cell has been established in Special Investigation Unit (SIU) of police. To a question, Memon said that the department has prepared a Witness Protection Plan, which has been approved by the cabinet and would be tabled in the Sindh Assembly soon for giving it a legal shape.
He pointed out that even when police arrest the people involved in targeted killing, extortion, dacoities, terrorism and other crimes, they managed to get bail from court due to loopholes in legal system. He said that there was an urgent need to revamp the criminal justice system of the country. The home department consultant said that police have arrested 150 accused involved in targeted killings and 300 alleged extortionists.
He pledged that the law enforcement agencies would soon establish complete peace in the city, providing enabling and conducive environment for trade and industrial activities.
On the other hand, CPLC chief Ahmed Chinoy says that the CPLC was actively playing its role to eradicate crimes from the city. He said that CPLC has a supportive role, which help law enforcement agencies and police in combating crime and arresting criminals.
Regarding extortion, he said that CPLC was playing important role in combating the illicit activity. Had CPLPC not been there, the cases of kidnapping for ransom and extortion would have been much higher.
How important is Karachi to Pakistan? | Business Recorder
