Government yet to compensate December 27 riot losses

18 Jul, 2008

The government has yet to compensate the business community, which suffered Rs 50 billion losses following the December 27 incident. The business community claimed that the government had fixed January 21 as last date for submitting claims and both the President and then Prime Minister had promised that the government would compensate all those who suffered losses during riots after the killing of PPP chairperson Banazir Bhutto.
Out of the total claims, Karachi Chamber of Commerce and Industry (KCCI) received around 70 claims of losses worth Rs 15 billion, which were forwarded to the concerned authorities for verification and payments. Likewise, North Karachi Association of Trade and Industry (NKATI) received and submitted around Rs 25 billion worth claims.
The Issani Commission established by the government to ascertain the losses had submitted its report about five months before. Taking to Business Recorder, Senior Vice President KCCI Iftikar Ahmed Shaikh said the claimants had completed all the required formalities and submitted their claims on prescribed forms. So far no compensation has been made on the recommendations of the commission established for the purpose.
He said last meeting for payment of compensation was held in February and since than there was no progress made on this issue. Pattern-in-Chief of NKATI, Captain Moiz Khan said the association had made several representations for early payment of compensation but there was no response from the government side.
Korangi Association of Trade and Industry (Kati) Chairman Shaikh Fazl-e-Jalil said total losses incurred in Korangi industrial estate were around Rs 20 billion but clams were made for around Rs 10 billion. Some companies had filed claims independently, he added. He said besides government, the insurance companies were also reluctant to pay compensation.
He said the association has approached SBP to use its power and pressurize the insurance companies to make full payments of losses. Some of the insurance companies had made payments but less than the actual claims, he added. He pointed out that management of USA based multination company operating in Pakistan, which was burned and ransacked during lawlessness in the city on December 27, has already windup its operation in Pakistan.

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