The consecutive terrorist incidents of suicide bombing and deteriorating law and order situation had brought business activities in the provincial metropolis of the province to standstill, business and trade circles told Business Recorder on Thursday.
Peshawar, the provincial metropolis of the NWFP, has been in the grip of the terrorist strikes for the period of the last two years. But, the intensity of the strikes has increased during the last two months and particularly after launching of military operation in Malakand Division.
Since May 16, 2009 five terrorists incidents have been observed in different parts of the city. The first incident was that of car-bomb blast at Kakhshal, followed by deadly attacks at busy Cinema Road, historic Qisa Khwani and targeting of the lone five-star hotel, Pearl Continental (PC Hotel) on Tuesday night.
The killing of more than 50 people rendering hundreds of people injured had frightened both trading community and common men. Most of the busy bazaars like Saddar Road, Qisa Khwani, Shuba Bazaar, Hashtnagri and University Road, are presenting deserted look as people are opting for remaining indoor than daring to come out for shopping and other activities.
'The situation has affected all business and trading sectors of the province. Those who had obtained credit from the banks are concerned for the depositing of their instalment,' Javed Iqbal Khattak, provincial chief Small and Medium Enterprises Development Authority (Smeda) told on contact.
The industrial units, he said showing failure to complete operation of two-shift. A number of industrial units, he said have laid-off hundred of workers, while labourers had stopped attending their shifts to duty security concern. They are not even meeting export target to their foreign buyers.
Furthermore, the influx of more than two million internally displaced persons (IDPs) from Swat, Buner and Dir Lower have further aggravated the trading activity in the local market. The cooking oil and ghee and different food products from all over the country had flooded the local market pushing all food items manufacturing units into trouble.
According to sources in the industrial sector, more than 50 percent industrial units have already been closed down. 'The sale of our store had registered a decline of 50 to 60 per cent as fears of the terror had heightened in the bazaars,' confided Sulman Wadood, proprietor of Wadood Sons, a known wearing store on the Saddar road.
Although the situation, he said, has been bad since the last two years, now it has further deteriorated. The frightened people, he said now prefer to remain indoor resulting in the decline of the business activities. He further said that peace is prerequisite for the business and trading activities, saying only the restoration of peace would help bring the people out into the bazaars.
Asghar Ali, an accountant in Ammarat Hotel, Namak Mandi, Peshawar said that the current waves of terrorist incidents had played havoc with the hotelier and restaurant industry. The halt of the arrival of the tourists from different parts of the country in general and Punjab in particular had started biting the industry. He said that people prefer to remain indoor due to uncertain law and order situation.
Similarly, Izhar-ul-Haq, an owner of a parking lot on busy Saddar road also confirmed decline in the business. He said that in the prevailing situation people had stopped visiting busy shopping malls. He said that till the return of peace, the people would not regain their confidence.
Regarding suggestion to the government for resolution of the security problem, he demanded the sealing of Pak-Afghan border to control the crossover of the terrorists to the country. He said that due to lack of strict check on the movement at border, the agents of Indian intelligence agency RAW and Mosad of Israel are coming to Pakistan.
He was of the view that the sealing of the border with Afghanistan would not only help restore peace in NWFP, but in the whole country. A former senior official of the Sarhad Chamber of Commerce and Industry (SCCI), Haji Mohammad Israr Saraf, said that business activities in the city had come to standstill or nothing. Haji Israr, who is president of the Jewellery market, said that they remained idol for the whole day and spending on food and tea.
He linked the promotion of business and trading activities with the establishment of durable peace. Behram Khan, who is running a guesthouse in the University Town said that the recent terrorist strike at Pearl Continental Hotel as last nail in the coffin of the hoteliers and restaurant industry of the province. He was hopeful that the efforts of the government would bear fruit within three to four months to restore peace in the province.
A property dealer, who identified himself as Faiq Khan said that the heightened fears had halted investment in the sector. Investment in the sector, he said, it had registered 90 per cent decline during the last two months. He linked the re-establishing of the confidence of the people in the government to the success of the military operation against militants in Swat.
SCCI, the apex trade body of the province has also launched efforts for announcement of a special package for the revival of the trade and industrial development of the province. During a recent meeting with the President Asif Ali Zardari, the SCCI office bearers had called for declaring NWFP as war affected area to get relief for the traders and businessmen of this part of the country from different taxes.