Karachi’s Economic Status Declines Amid Rising Crime and Investor Concerns

Karachi, Sindh Governor Kamran Khan Tesori has voiced concerns that Karachi, once Pakistan’s economic hub, is now facing significant challenges that include rising crime rates and dwindling investor confidence, leading to industrialists relocating from the city. These comments were made during a meeting at the Korangi Association of Trade and Industry (Kati).

According to Korangi Association of Trade and Industry, Governor Tesori addressed the need for urgent, decisive action to revitalize Karachi’s industry. He highlighted disparities in government support, noting that unlike Sialkot, which benefits from the Export Development Fund, Karachi has been overlooked, which exacerbates the city’s economic challenges. The governor called for a collaborative effort to address these issues and invited industrialists to discuss solutions directly, promising to escalate matters to the Prime Minister if necessary.

The meeting also covered the broader economic pressures on Karachi’s industries, including high utility costs and interest rates, which Kati President Johar Kandahari noted are among the highest in the region. Kandahari also pointed out that local industrialists are increasingly taking on roles typically handled by the government, such as area rehabilitation, due to the lack of sufficient support. He emphasized the need for comprehensive economic policies and tax reforms to ease the burdens on businesses.

Deputy Patron-in-Chief Zubair Chhaya expressed concern over the job losses in the private sector, suggesting that up to 40% of employees in some industries have been laid off. He remarked on the slow establishment of new industries and the importance of restoring confidence among local investors to attract foreign investment.

Zahid Saeed, CEO of Kite Limited, criticized the inequitable distribution of federal development funds and highlighted that Karachi, despite its substantial contributions to Pakistan’s exports, receives less support compared to other cities like Sialkot.

The discussions underscored a critical period for Karachi’s economic landscape, with leaders calling for targeted governmental interventions to restore its status as a leading economic center in Pakistan.

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