Karachi violence cost Rs 20 billion, further repercussions foreseen

The economists have forecast that Pakistans economy would face further direct and indirect financial losses, besides an estimated-rupees 20 billion lost in the three-day long weekend violence that left 48 persons dead and over 150 injured.

Karachi, May 15 : The economists have forecast that Pakistan's economy would face further direct and indirect financial losses, besides an estimated-rupees 20 billion lost in the three-day long weekend violence that left 48 persons dead and over 150 injured.

According to Shahid Hasan Siddique, an economist, the losses will be in the form of dim prospects of foreign investment due to political turmoil and increasing security concerns.

"Twelve billion rupees is the estimated figure of financial losses, while the long-term losses are higher than these," Business Recorder, Pakistan's financial daily, quoted Siddique, as saying.

Karachi, the economic hub of Pakistan, has lost estimated rupees 20 billion in the weekend violence that erupted between the supporters of Pakistan President Pervez Musharraf and suspended Chief Justice Iftikhar Muhammad Chaudhry on Friday evening.

It is also expected that now foreign investors will also avoid visiting Pakistan especially Karachi due to new travel advice issued by different countries, Siddique said.

The reports in Western media that Karachi is an unsafe city for investment, have been further confirmed by the international media covering Saturday's Karachi violence widely, he added.

"Karachi's industries suffered production losses over Rs 12 billion due to violence, deteriorating law and order situation for the last three days, tarnishing country's image internationally," Siddique was quoted as saying.

During the clashes the trading and industrial activities were suspended completely.

Over 14,000 large industrial units operating in Karachi contribute 68 percent to Pakistan's national exchequer.

According to an industrialist, out of the 14,000 industries, production stopped in all the five major industrial areas of Karachi, including SITE, Korangi, F B area, North Karachi and Landhi industrial areas, due to the non-availability of labour since Friday evening.

According to former chairman SITE Association of industry, Zubair Motiwala, the national exchequer has suffered loses of Rs three billion due to the suspension of industries and trading activities in the metropolitan.

The export process and shipments remained without dispatch since Friday. The port activities also came to a halt.Small traders suffered losses over Rs 5 billion in terms of sales. More than 500 trading market and around 25,000 shops remained closed and over 10 small-shops were torched during the violence.

The daily wagers were also badly affected during the period.

At least 25 busses were set ablaze by the mob on Saturday and Sunday.

ANI