SITE Industries Face Crisis as Water Shortage Halts Production, Exports at Risk

KARACHI: A severe water shortage in the SITE Industrial area of Karachi has forced factories to halt operations, threatening the country’s export capabilities and economic standing. Key industry leaders, including Zubair Motiwala, Ahmed Azeem Alvi, and Anwer Aziz, have voiced concerns over the inadequate water supply from the Karachi Water and Sewerage Corporation (KWSC), which is failing to deliver the required 8 million gallons daily.

The water scarcity has compelled industries to rely on costly water tankers, significantly increasing production costs amid fierce global competition. The SITE Association of Industry and the All Pakistan Textile Processing Mills Association convened an urgent meeting to address the crisis, forming a committee led by Saleem Parekh to negotiate with federal and Sindh authorities.

Textile processing, a cornerstone of Pakistan’s export sector, is among the hardest hit. Anwer Aziz highlighted the dire situation, noting that 40% of Pakistan’s textile processing units are in the SITE area, dependent on water as a key raw material. The ongoing shortage threatens to close these units, risking massive unemployment and industrial unrest.

The escalating costs, exacerbated by new reciprocal tariffs, could further diminish Pakistan’s textile market share in the USA. Aziz called on national leaders to urgently address the crisis, emphasizing the strategic importance of resolving the water supply issues to maintain production and fulfill international orders.

The crisis underscores the critical need for infrastructure improvements to support Karachi’s industrial sector, which contributes significantly to the national economy. As industry leaders push for immediate government intervention, the resolution of this water shortage remains crucial for the stability and growth of Pakistan’s industrial output and export performance.