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   Karachi violence hits industrial output, exports

As tension and panic gripped the city, public transport and goods-carriers generally remained off the roads resulting in low attendance and loss of production for most businesses. - Online photo

KARACHI: The ethnic violence has crippled industrial and business activity in the metropolitan city resulting in the loss of billions of rupees in production and revenue.

As tension and panic gripped the city the public transport generally remained off the roads on Thursday and the people were unable to reach their workplaces and industrial units.

The movement of goods from industrial units to the ports for export shipments was also badly affected as owners of goods-carriers did not ply their vehicles fearing arson and looting. The five industrial estates of the city suffered badly as most of the units faced production losses owing to poor attendance of workers. On an average the attendance in factories was 40 to 50 per cent but the industries located close to disturbed areas of North Karachi totally remained out of production.

However, big industrial units in Landhi industrial area worked at full capacity as they mostly house their workers within the premises .MA Jabbar, chairman Site Association of Industry (SAI) said that most of the industries were affected by poor attendance of workers and non-availability of goods carriers. In the absence of goods carriers, inward and outward movement of goods came to a halt. He said that the industry brings in raw material for processing and needed transport for taking out finished goods from the factory for export or for local sale.

Since the Wednesday violence created tension in the city with reports of some fresh killings on Thursday the entire business climate was marred in the absence of poor security .Jabbar said that the Site area is the biggest industrial estate of the country where around 5,000 industrial units of medium and large size are operating but the area police had only four vehicles for patrolling with only 250 policemen .The Site chairman said that industries located in this area produce goods worth Rs3 billion daily out of which goods worth Rs1 billion are for export .Zahid Hussain, chairman Korangi Association of Trade and Industry (Kati) said that as tension gripped the city on Wednesday workers did not turn up at work. Furthermore, he said as the public transport also remained off the road after a large number of vehicles were torched people faced difficulty in reaching their work places.

As the goods could not leave from industrial units of the Kati there were no exports resulting in huge losses to exporters who failed to meet their shipping schedule. There was an estimated 40 per cent loss in production on Thursday, he maintained.

Usman Jhakora senior vice-chairman Landhi Association of Trade and Industry (Lati), however, said that industry in his area functioned normally and worked at full capacity because most of the units located in Landhi normally provide housing facility to their workers within the factory premises .The worst-affected was the North Karachi Industrial Estate as it fell close to the area of Wednesday’s bloody violence. Mohammad Younus Khamisani, chairman of the association said that most of the industrial units in his area remained closed because there was no public transport .Masroor Ahmed Alvi, chairman F B Area Association of Trade and Industry said industrial activity in the area almost came to a grinding halt as workers did not turn up. There was only 30 to 40 per cent attendance in factories.

Dawn.Report by  Parvaiz Ishfaq Rana:Friday, 01 May, 2009