Water crisis shuts down Karachi's key auto hub

Over 50 industries demand urgent action as water supply is cut off over unpaid dues

KARACHI:

Over four dozen industrial units, primarily from Pakistan's automotive sector, have reached out to the Ministry of Industries & Production (MoI&P), Federal Minister for Industries and Production Rana Tanveer Hussain, Sindh governor, and Karachi mayor, urging them to address persistent issues at the Pakistan Steel Industrial Estate, home to the Steel Mill Downstream Industrial Units.

Speaking to The Express Tribune, industrialists revealed that the estate has been without water supply for nearly a month, from August 27 to September 24, due to a standoff between Pakistan Steel Mills (PSM) and the Karachi Water & Sewerage Corporation (KWSC) over unpaid dues. PSM owes approximately Rs10 billion to KWSC, and until these dues are settled, the water supply to the industrial units will remain cut off.

This estate is a key hub for the country's automotive sector, yet it faces multiple challenges. Industrialists highlighted that for the past decade, there has been no maintenance of essential infrastructure, despite their collective contribution of an estimated Rs100 million annually to PSM in maintenance fees and ground rent. This is in addition to water and sewerage charges, which range from Rs50,000 to over Rs5 million depending on consumption. The road infrastructure and sewerage systems have collapsed, and law and order issues are on the rise.

Zainul Abidin Shariq, Chairman of the Downstream Units & Industrial Park Owners Welfare Association, expressed frustration, stating, "If there are pending dues to KWSC from PSM, we have nothing to do with that since we have been paying our bills on time. Whichever authority assumes control, we will continue to pay our dues to them. All we demand is for a government department to take ownership of the water supply and infrastructure so we can contribute our charges accordingly and ensure services are maintained."

The Steel Mill Industrial Estate houses over 50 companies, including major automotive manufacturers such as Pak Suzuki Motors Company Limited (PSMCL), Master Motors Limited, KIA Lucky Motors, Yamaha Motor Pakistan, and many others. Notably, Pak Suzuki Motors alone operates on a 200-acre leased portion of PSM's total 19,000 acres.

In addition to Pak Suzuki, other key industries in the zone include Techno Glass, Alsons Auto Parts Private Limited, Yousuf Auto Industries Private Limited, Jinkwang JAZ Private Limited, Shaheen Automotive Private Limited, Rubatech Manufacturing Company Private Limited, Synthetic Products Enterprises Limited, Envicrete Limited, Loads Limited, Aisha Steel Mills Limited, and several others.