BMG chief calls for relief package: Business community decries damages caused by rains to Karachi’s infrastructure

KARACHI: Leaders of the business community of Karachi, including Businessmen Group (BMG) Chairman Zubair Motiwala and Karachi Chamber of Commerce and Industry (KCCI) President Muhammad Idrees, have expressed deep concerns over the devastation in the city after recent rains.

Zubair Motiwala lamented that even after 75 years of the country’s independence, the largest industrial hub and commercial capital of Pakistan that contributes 54 percent to the country’s total exports, 65 percent to the national exchequer and 95 percent to the total provincial taxes and levies is in a mess.

He said that no city can be sustained this way. Karachi’s average rainfall of 85.5 mm in July 2021 is much less than the rain recorded in Mumbai (800 mm) and Kolkata (411 mm), but the devastation here was much greater in magnitude.

He said, “I request Prime Minister Mian Shehbaz Sharif, Sindh Chief Minister Syed Murad Ali Shah, Sindh Minister (for) Local Government Syed Nasir Hussain Shah and Administrator (of) Karachi Barrister Murtaza Wahab to visit KCCI and discuss issues of Karachi.”

He urged the ministers to explain how long would it take to complete the restoration of debilitated infrastructure of Karachi and what were the medium-term and long-term measures being taken for the next monsoon season. “Even though the Karachi package of Rs 1.1 trillion was announced to revive the city and manage disasters, the progress on this package is not visible in the city at all and requires an audit of where the fund was spent.”

“The KCCI should be taken on board on issues pertaining to Karachi for a sustainable solution of the never-ending miseries of Karachiites,” he added.

He appealed that Karachi be declared a calamity-hit area and accordingly a major relief package be announced for its people and businessmen who have suffered great losses due to the devastation caused by the recent heavy spell of monsoon rains.

The payment dates of bills of K-Electric and Sui Southern Gas Company can be extended to provide some respite to the Karachiites. Relief should be announced on provincial taxes to compensate for the immense losses on account of the rain disaster, he added.

Other leaders of the Businessmen Group — including Tahir Khaliq, Haroon Farooki, Anjum Nisar and Jawed Bilwani — also stressed upon the need to improve the situation in Karachi by properly managing it as an important revenue-generating city.

KCCI President Muhammad Idrees pointed out that the city’s citizens, particularly members of its business community, had sent piles of complaints to the chamber, asking when would the situation of Karachi get any better, what the government is doing and what has KCCI done to resolve the basic issues.

A significant area of Karachi is still in darkness as over a hundred feeders of K-Electric tripped after rains. “It is so unfortunate that the rainwater channels have been allowed to be encroached upon by slums, builders, in some cases even by elite colonies like DHA Phase VII-Extension through land plotting which resulted in constriction and at some places complete blockage of natural drainage system,” said the KCCI president.

“Land reclamation on natural rainwater channels was recently witnessed in DHA Phase VIII Creek Lane where a marriage hall has been set up as well. Consequently, the sewerage system collapsed in the recent rain spell and the dirty sewerage water flooded many roads and houses in Karachi even after the rain had stopped.”

Rainwater has also inundated some areas at port terminals which is restricting port activities. This is a very serious issue hampering trade activities, he added.

The National Finance Commission (NFC) awards 2009 as a result of the 18th Amendment bestowed more powers and funds to the provinces, said Muhammad Idrees. As per Budget FY23, Sindh will receive Rs 1.029 trillion under the NFC while allocation for Karachi-based development schemes has been kept at a meagre Rs 118 billion. The Sindh Revenue Board (SRB) also managed to collect 21 percent higher sales tax on services amounting to Rs 132 billion during first 11 months (July-May) of FY22.

However, Karachi remained deprived of the required infrastructure development funds even though Sindh also collected billions of rupees under Infrastructure Cess in 2020-21.

The issues of Karachi remain unresolved as the provincial and federal governments resort to blame game on the matters involved, said the KCCI chief.

The provincial and federal authorities manage only 30 percent of the city while the remaining 70 percent is under the control of cantonment boards, which is akin to having a state within a state. The city remains mismanaged due to overlapping authority and unclear scope of work.

He warned that if the problems of the people are not addressed amicably and promptly, they will be compelled to opt for citywide demonstrations as the city has come to a standstill after the recent spell of rains.

President of the SITE Association of Industry Abdul Rasheed said that the infrastructure of Karachi was already in tatters, which has been further destroyed by the monsoon rains.

The situation due to urban flooding has severely impacted upon the businesses and industries as they are finding it impossible to function and keep their businesses operational.

President of the North Karachi Association of Trade and Industry Faisal Moiz Khan said that industrialists are suffering due to intense rainfall and urban flooding due to which production has not restarted yet and does not appear to start anytime soon.

Amir Hasan Lari, the president of SITE Super Highway, lamented that people are suffering due to a host of issues, as there is no petrol in the pumping stations, no electricity at homes, shops and offices, and no decent infrastructure to commute. People are also facing shortages of water and gas.

He called for a proper solution to the host of issues being faced by the people of Karachi.

Nisar Palla, the president of Landhi Association of Trade and Industry, appealed to the government to ensure provision of all the basic amenities and improvements in the city’s infrastructure.

Copyright Business Recorder, 2022