KARACHI: Claims of a big success were overshadowed by the economy’s significant trade losses caused by a nationwide strike called by the business community on Wednesday against high power bills and rising tax burdens. Meanwhile, industrial operations showed a mixed trend because of a variety of causes.
Organizations representing industrialists encouraged the government to amend agreements with independent power producers (IPPs) without pledging to keep their facilities closed, while simultaneously endorsing the traders’ walkout.
It is impossible to ignore the effects of the nonstop rains and the port city’s transit disruptions, which drove a large number of employees to remain at home.
On Wednesday, Markazi Tanzeem-i-Tajiraan President Kashif Chaudhry calculated that the disruption of transactions between different business factions would result in a daily trade loss of Rs 500 billion.
Additionally, he asserted that the majority of industrial hubs in different cities remained closed despite the fact that industrial organizations, unlike stores and markets, were not forced to close their units despite having completely backed the traders’ strike.
As far as the Overseas Investors Chambers of Commerce and Industry are concerned, the traders’ strike did not impair the operations of our members, albeit the rains may have caused some areas to be affected, according to M Abdul Aleem, Secretary General/CEO.
Ehsan Malik, CEO of the Pakistan Business Council, claimed that the industry was hardly affected by the strike. Rather, it was most inconvenient for everyday buyers with lesser incomes. According to him, the monthly buying cycles of consumers would likely last until the fifth of the following month, making it unlikely that merchants will have to worry about losing revenue. When perishable commodities spoil, traders will lose money.
Shutdown strikes, according to Mr. Ehsan, are an assessment of the government’s commitment to bringing traders under the tax net, underscoring the significance of upholding this pledge to increase the size of the tax base. He issued a warning, saying that the industry would have to pay more in taxes if the government softened its position.
About 70% of the 8,000 industrial units, ranging in size from small to large, remained closed, according to North Karachi Association of Trade and Industry President Faisal Moiz Khan, while 30% of export-oriented businesses continued to operate in order to meet export deadlines.
On Wednesday, he projected a production loss of Rs20 million, pointing out that the 300,000 workers in the region were disproportionately affected by daily wagers due to the disruption of local supply chains caused by the shutdown of companies.
Syed Raza Hussain, president of the F.B. Area Association of Trade and Industry, stated that while export-oriented companies carried on with their activities, between 50 and 60 percent of the 1,800 industrial units in the area remained shuttered. He continued by saying that Karachi’s industries suffer a number of difficulties, such as unfair taxes and levies when compared to other provinces, which could eventually force them to close.
He claimed that the cost of power has increased dramatically in recent months and that, in comparison to other cities, Karachi residents are unfairly taxed a high fuel cost adjustment (FCA).
According to Mr. Hussain, the province government has imposed fees on subsurface water, which has increased production expenses, and water shortage still exists in certain industrial zones, adding to the problems.
He cautioned that the current state of affairs encourages businessmen to close their doors, flee the nation, or move to Punjab, and he said that the government ignores small and medium-sized businesses.
President of the Korangi Association of Trade and Industry Johar Qandhari stated that decreased worker attendance brought on by insufficient public transit and rain also affected export shipments, resulting in 30-35 percent lower production activity in 4,500 units.
