Karachi, Pakistan’s Economic Hub: Prey of Gross Negligence Needs
Immediate Attention
Dr. Syed Mehboob
Political and Economic Analyst
http//:www.thenewslark.com
[email protected]
Karachi is the largest
city of Pakistan, its economic and financial capital, a cosmopolitan
city, hub of economic, industrial and business activities. It covers
3,527 square kilometers and has a population of about 25 million, making
it the 7th largest city in the world and the 3rd largest in Asia. Its
GDP is about US$ 102 billion (nominal), and its per capita GDP is US$
5,400. It has two ports, Karachi Port and Bin Qasim Port, and Pakistan’s
largest stock exchange, alongside the headquarters of nearly all major
national and international banks. It has the head offices of all the
major media houses, including print and electronic media. Major
manufacturing zones like the Sindh Industrial and Trading Estate ( SITE)
and the Korangi Association of Trade and Industry (KATI) support massive
textile, automotive, pharmaceutical, and steel production.
Approximately 25% of Pakistan’s entire GDP is shared by Karachi, 30%
industrial output, its ports handle about 95% of Pakistan’s Foreign
Trade, about 90% of multinational corporations are here. It is also a
transport hub of Pakistan. Jinnah International Airport is the busiest
airport in Pakistan. It accounts for 95% of Sindh’s GDP and about 80% of
revenue. According to the Federal Board of Revenue (FBR), Karachi was
responsible for 70% to 75% of direct taxes, 33.65 % of Federal Excise,
and 23.8% of domestic sales tax. Karachi also accounts for about 75 % of
customs duty and 79% of sales tax on imports. Karachi collects a
significant 53.8% of the total collection of FBR's revenue. Karachi is
also a textile and fishing hub of Pakistan. The largest textile
companies, like Gul Ahmed Textile Mills, Al Karam Textiles, Youns
Brother, and Grace Fabric, are in Karachi. SITE Manghopir has the
largest Industrial Park comprising about 4,000 factories. Pakistan Stock
Exchange started from a humble beginning, with 5 companies listed with a
market capitalization of Rs 37 million. In 1960, there were 81 companies
with a market capitalization of Rs 1.86 billion. Now it has 535 ( +5 GEM
board) companies listed on the bourse with a market capitalization of Rs.
19,830 billion. The listed companies are distributed among 37 sectors/
group of industries. The KSE 100 recorded a staggering return of 43.5%
in 2025-26.
Despite its enormous importance and its contribution
to the national exchequer and Sindh revenue, it is badly neglected, and
it is ranking among the bottom ten cities in the world in terms of
livability. In terms of cleanliness, fresh air availability, education,
and sewerage amenities, it is one of the worst cities in the world.
According to the Global Livability Index, Karachi is ranked 170 out of
173. According to the World Bank’s estimate, US$ 10 billion in capital
investments were needed to bridge key infrastructure gaps and to improve
the region’s economic potential. The capital investment alone would not
be sufficient to address the challenges, but a shared vision of
transformation and long-term commitment is also required.
Residents and businesses of Karachi are witnessing a city unable to keep
pace with its physical growth or to equitably meet the basic needs of
residents and local businesses. Water and sewage networks, for instance,
meet only roughly half of the city’s needs. As a result, water is
available for only a few hours per day. Most sewage is discharged into
the ocean untreated. More than 60 percent of solid waste is openly
dumped, with dramatic impacts on drainage and urban environment. The gap
in affordable housing is acute, with an estimated 50 percent of the city
residents forced to live in informal settlements. Streets and public
spaces, which directly support the livelihood of many of Karachi’s
residents, have been progressively disappearing. Karachi’s
infrastructure is highly vulnerable to climate-related disasters. Poor
residents suffer the most from these challenges. Fragmented city
management has led to ineffective institutions, with little coordination
among them, leading to insufficient planning and investments, and
declining public confidence.
Karachi faces critical challenges,
including an acute water crisis, severe traffic and public transport
shortages, widespread pollution, and crumbling infrastructure.
Water Shortage
• The city needs about 1,300 million gallons of
water daily, but gets only about half that amount.
• Outdated
pipelines and delayed projects like K-4 cause massive shortfalls.
•
Residents rely heavily on expensive private water tankers.
Public
Transport and Traffic
• Public buses are old, broken down, and
overcrowded.
• Major traffic jams happen daily because roads are
damaged and too narrow for the heavy traffic.
Pollution and Waste
Management
• Garbage piles up uncollected in many neighborhoods due
to poor municipal services.
• Air and water quality are poor, with
raw sewage often flowing into the sea and unmanaged industrial waste
polluting the environment.
Utilities and Security
• Frequent
electricity load shedding disrupts daily life and local businesses.
• High rates of street crime, such as mobile and cash snatching, create
ongoing safety concerns for citizens.
Also there is a problem of
Open Manholes,” which were actually some large, sizable tunnels
constructed for new drainage lines. When one goes near them to see any
precautionary signboard, there is neither a barrier nor a warning sign.
Just an empty space waiting for a pedestrian, with lines of trenches and
broken road surfaces as a consequence of them. Karachi is said to be
making progress by installing new drainage lines. However, the holes
remained available for the whole duration. Not a single orange cone, no
tape. In the road, just a black mouth. I, myself, watched a rickshaw
driver make a last-minute lane change to avoid falling into a manhole at
the center of Main Road. I think that progress is not supposed to be an
obstacle, and we have to raise our voices for this issue.
There is
an urgent need to address Karachi’s problems and to resolve them. It is
already too late. There is a discussion of new provinces and
administrative units. People of Sindh don’t want the division of Sindh,
and I agree with them, but if our rulers continue to neglect Karachi,
then this division, which in reality exists, will be further widened.
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