Arab Today, arab today karachi violence takes economic toll
Last Updated : GMT 20:05:56
Arab Today, arab today
Arab Today, arab today

Karachi violence takes economic toll

Arab Today, arab today

Arab Today, arab today Karachi violence takes economic toll

Karachi - AFP

A bloody wave of violence sweeping Karachi has claimed hundreds of lives this year, and experts say it is also taking a punishing financial toll on the city that is Pakistan’s economic heartbeat. Pakistan’s biggest city has escaped the worst of the four-year Islamist bombing campaign that has plagued other parts of the country, but it is wracked with crime and political and ethnic bloodshed. Last year nearly 1,800 lives were lost as drug, land, gun and extortion mafias linked to ethnically-based political parties threatened to plunge the city of 17 million people into urban anarchy. More than 300 people have been killed in violence in Karachi in the last three months, according to the Human Rights Commission of Pakistan. With each political or sectarian killing, parts of the city go into lockdown as armed men take to the streets seeking reprisals, prompting residents to flee to safety and shops, markets and schools to close. Ateeq Mir, the chairman of the Karachi Markets Alliance, said the city was closed for “six full days” last week — when at least 24 people were killed in violence and the Muttahida Qaumi Movement (MQM), the city’s main political party, called a day of mourning for a slain activist. “Our traders have lost the business of more than 20 billion rupees ($220 million) while our industrialists lost at least 45 billion ($495 million),” he told AFP. Karachi is vital to Pakistan’s economy, contributing 42 percent of GDP, 70 percent of income tax revenue and 62 percent of sales tax revenue, but Mir compared the situation to the country’s insurgency-wracked northwest. “Karachi has become an urban Waziristan where the government has lost its writ,” he said. “The city is divided among several areas, each is governed by the dominant militant mafia.” Economist A.B. Shahid said Karachi’s contribution to GDP amounted to around 16 billion rupees a day, and its daily tax revenues to two billion. “Karachi is Pakistan’s economic engine, whenever it shuts, it affects the whole economy. Its taxes and industrial and services sectors feed the exchequer and its port being the gateway gives life to the rest of the country,” he told AFP. “If one wants to cripple Pakistan’s economy, one should do nothing but to get Karachi paralysed.” Market analysts say disturbances in Karachi are affecting foreign investment as well. “Most multinationals are based in Karachi, and it has a negative impact when their bosses watch pitched battles on their TV screens in the streets of Karachi,” said Mohammad Sohail, the head of Topline Securities brokerage. He said foreign investment in Pakistan stood at $5.4 billion four years ago, which shrank 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. Officials admit growing security concerns and targeted killings tarnish Karachi’s attraction for foreign investors and risk driving business away. The American raid that killed Osama bin Laden in the town of Abbottabad last May was another punishing blow to Pakistan’s depleted image, raising renewed questions about whether anyone in authority had colluded with Al-Qaeda. “Local industrialists, mainly textile businessmen, are shifting their investments to Bangladesh, Sri Lanka and Malaysia because of law and order and energy shortages,” said a government minister on condition of anonymity. The authorities say they are doing their best to tackle the rampant unrest, but admit they have limited means at their disposal. Sharfuddin Memon, spokesman for the home department of Sindh province, of which Karachi is capital, admitted there were not enough policemen in the city but said they punch above their weight in terms of foiling crime and attacks. The decades since independence in 1947 have seen Karachi transformed into a patchwork of Pakistan’s different ethnic groups — Mohajirs, Sindhis, Pashtuns, Punjabis and Baloch — as migrants from all over the country have come in search of a better life. Millions in the city rely on daily piece work to make a living, and every day lost to violence or shutdowns is a day without income. Fruit seller Mohammad Haleem, 34, said the unrest was making it hard to make ends meet. “I could not earn livelihood for my five kids for most of the last week as it was dangerous to go outside,” said Mohammad Haleem, 34, a fruit vendor. “It is getting too difficult for me to take a loan to feed my kids as the lenders are themselves in distress.”

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today karachi violence takes economic toll Arab Today, arab today karachi violence takes economic toll

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today karachi violence takes economic toll Arab Today, arab today karachi violence takes economic toll

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today Ryanair's O'Leary: Could ground more planes

GMT 06:49 2017 Friday ,22 September

Ryanair's O'Leary: Could ground more planes
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Huthis stage defiant rally 3 years

GMT 05:29 2017 Friday ,22 September

Huthis stage defiant rally 3 years
Arab Today, arab today Saudi Arabia to unblock internet calling apps

GMT 11:31 2017 Wednesday ,20 September

Saudi Arabia to unblock internet calling apps
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Ministry seeks to improve education

GMT 14:49 2017 Sunday ,17 September

Ministry seeks to improve education
Arab Today, arab today All eyes on May as she prepares

GMT 10:16 2017 Friday ,22 September

All eyes on May as she prepares
Arab Today, arab today Puerto Rico, Virgin Islands brace

GMT 12:01 2017 Wednesday ,20 September

Puerto Rico, Virgin Islands brace
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Mercedes pumps 1 bln euros    

GMT 06:04 2017 Friday ,22 September

Mercedes pumps 1 bln euros    
Arab Today, arab today Intel chips loaded in Waymo

GMT 14:43 2017 Wednesday ,20 September

Intel chips loaded in Waymo
Arab Today, arab today Youssra prepares for launching her  program

GMT 08:59 2017 Wednesday ,20 September

Youssra prepares for launching her program
Arab Today, arab today France hopeful of persuading Trump

GMT 06:21 2017 Wednesday ,20 September

France hopeful of persuading Trump

GMT 09:40 2017 Tuesday ,19 September

Actress Ream Hhagag prepares for a new film

GMT 18:09 2017 Thursday ,21 September

China lifts 10-year travel ban

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 19:18 2017 Monday ,18 September

5,000 'Dieselgate' deaths in Europe per year

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 18:03 2017 Thursday ,21 September

Alarm over flesh-eating ulcer cases

GMT 07:00 2017 Wednesday ,20 September

A no-frills business success

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 12:46 2017 Thursday ,21 September

Google likely to buy stake in Taiwan smartphone maker HTC

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday