Business activity dwindles as Karachi observes protest

Traders criticise government for closure of businesses.

KARACHI:

Attendance at offices and factories suffered on Friday as business activity remained sluggish on the back of a strike called by the Sindh chapter of Pakistan Peoples Party.

Banks, shops and markets in specific areas of the city were shut down, while in other areas, an uneasy calm prevailed, following reports of rioting and arson overnight. Public transport was largely unavailable through the day, which in turn affected attendance at offices.

Gulistan-e-Johar, Gulshan-e-Iqbal and other areas that had witnessed scenes of arson the previous night were the most affected. “Even though there was no official announcement, banks in our area were mostly closed,” reported a resident of Gulistan-e-Johar.

“At a branch that was open, the shutters had been dropped down so it looked like the place was closed, while the bank’s staff was directing account holders to enter from the side entrance rather than the front door,” she added.

Many other offices sent home non-essential staff and female members of the workforce early, while others chose to end the week before Friday prayers. “Initially, we were asked to come to work like any other day, but by 11am, the management decided to send all the women home,” said Aatika Ahmed, an employee at a Karachi-based national company.

Similarly, the industrial zones of the city remained operational, however many factories reported lower turnout of workers due to security concerns and lack of public transport. “Absentee rate was slightly higher at about 10 per cent today (Friday), compared with an average of five to seven per cent,” said Hub Leather Director Asfandyar Farrukh.

The industrialist stated, “Although the day passed fairly peacefully, there was a tense feeling because of the incidents that took place on Thursday night.” He expressed concern that the widening rift between members of the coalition government and the looming confrontation between the judiciary and the political government could bring further unrest to the city.

“All markets and shopping centres of the city have been completely shut since Thursday evening,” said Karachi Traders Action Committee Chairman Siddiq Memon. He asserted that the city’s businesses suffered “billions in lost revenue, along with thousands of daily wagers having to go without any wages because of the strike.”

Memon criticised the strike call, calling on legislators to “register their protest in ways that do not hurt the economy at a time when businesses are already fighting a losing battle against electricity shortages, lawlessness and high cost of borrowing.”

He also pointed out that current deterioration in relations between various political parties, as well as state institutions, could further jeopardise business activity in the city.

Published in The Express Tribune, March 12^th, 2011.