So you say you want investment, eh?
Pre-Eid sales fall by 70% due to killing spree
By Tanveer Sher
KARACHI: In the wake of uncertain law and order situation and incessant cycle of violence in Karachi, Pre-Eid sales in major markets and shopping centres in the port city nose-dived to around 70 percent of last year sales.
Amid the third week of holy month of Ramazan, dismal sales of male and female garments, shoes, wide varieties of clothes of all ages of children ranging from 3 to 13 years, cosmetics and many other items, have spelled gloom for an overwhelming majority of traders and businessmen, who had invested billions of rupees in the hope of capturing seasonal hike in sales.
With no end in sight of the current wave of violence, which has so far claimed more than 70 lives during last three to four days, majority of shopkeepers and traders at some big markets expressed pessimism over better sales prospects before the Eid.
Some of the traders replying to a question of the scribe claimed that pre-Eid sales had started gaining momentum from 10th of Ramazan sparking a ray of hope of better business prospects for them until the end of the holy month.
The unexpected surge, however, in violence in some parts of Karachi during the last four to five days coupled with a menace of steep rise in extortion had shattered all their hopes and optimism leaving them at the mercy of terrorists and extortionists.
Atiq Mir, Chairman of Alliance for Market Association, Karachi expressing his disgust over the prevailing law and order situation warned to pull shutters of all Karachi markets if the government failed to act promptly and take measure to reverse the deteriorating situation.
“We are left with no choice but to close down our trades as present critical situation have left no option for us,” Mir said.
Suspension of large-scale trade would not only hurt interests of traders but national exchequer would also eventually suffer colossal financial losses. In the holy month of Ramazan an additional amount of trade of Rs 40 had been anticipated, which would have definitely strengthened the national kitty.
Replying to another question, Mir said that majority of Karachi markets wore a deserted look as buyers have been reluctant to visit them for the fear of potential violence putting their lives at risk.
In response to a question, he said even on Friday, when the situation was returning to normalcy, the old city area was forcibly shut down by some unscrupulous elements, which caused an estimated staggering loss of Rs one billion to the national exchequer.
Mir blamed that the present government had squarely failed to discharge its duty to restore law and order in the port city as it has become a party in the ongoing cycle of violence giving rise to a dangerous trend.
Furthermore, the administration has also failed miserably to control rampant cycle of extortion in Karachi markets spelling financial hardship for traders.
China says US eco remains ‘resilient’
BEIJING: China’s leader-in-waiting said America’s economy was “highly resilient” but stressed the need to restore confidence in global markets Friday, after holding talks with the visiting US vice-president.
Xi Jinping, who is widely expected to be named as the country’s next leader in 2012, made the comments during a five-day visit to China by Joe Biden, who is trying to shore up the reputation of his country’s battered economy in Asia.
China is the largest foreign holder of US debt and Biden, who will hold talks with Chinese President Hu Jintao later Friday, is visiting after a historic downgrade of the US credit rating earlier this month.
“The US economy is highly resilient and has a strong capacity of self repair. We believe the US economy will achieve even better development as it rises to challenges,” Vice President Xi told a roundtable of American and Chinese business leaders.
Xi also stressed that China’s economy — which is shifting towards a greater reliance on domestic demand — would be a boon for the United States.
“In the next five years, China is expected to import over $8 trillion of commodities and by 2015, total retail sales are expected to reach 32 trillion yuan ($5 trillion),” he said.
“That will create greater business opportunities for American businesses.”
Xi also stressed the need to restore confidence in the global markets, as stock markets plummeted after Wall Street investment bank Morgan Stanley warned that the US and eurozone economies were close to a double-dip recession. “Destabilising factors confronting world recovery have intensified, posing new challenges to economic growth and the businesses of our two countries,” he said.
“Under such circumstances, what is most important is to reinforce confidence, as confidence is more precious than gold.”
Xi said China would “strike a proper balance between fast and steady growth, adjustment of economic structure and managing inflation expectations”, adding his country’s booming economy would not suffer a “hard landing.” Beijing has been struggling to tame inflation, which last month hit a three-year high, fuelling international concerns about instability in the Chinese economy at a time of renewed global financial peril.
Xi also called on the United States to ease trade restrictions and provide for fair treatment of Chinese firms, pledging that Beijing remained committed to opening up its markets.
The United States and China “should not politicise or sensationalise trade issues”, he added.
Biden’s talks with Hu and Premier Wen Jiabao later Friday will take place against a backdrop of intense criticism in China over Washington’s handling of the debt crisis. afp
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