logo
Severe water shortage triggers an alarm among manufacturers

Severe water shortage triggers an alarm among manufacturers

KARACHI: A severe water shortage is gripping Karachi's key industrial areas, sparking alarm among manufacturers as production slows and the country's export capacity faces potential disruption.
Industries in major areas, including the Federal B Area industrial area are reporting a drastic drop in water availability both through the sub-soil system and commercial water tankers. The concerned department disconnected sub-soil connections whereas the restricted day timings for the movement of water tankers reduced the supply of water to industrial units substantially.
'The shortage is not just inconvenient it's crippling,' said President Federal B Area Association of Trade and Industries (FBATI) Shaikh Muhammad Tesheen. 'Industries cannot function properly without a stable water supply. If this situation continues, it will directly impact production timelines, delay international shipments, and put Pakistan's export reliability at risk.'
Industries involved in textiles, leather, chemicals, pharmaceuticals, food processing, and other high-water-consumption sectors are already reporting scaled-down operations. Export orders worth millions of dollars are potentially on the line, jeopardizing foreign exchange earnings at a critical time for Pakistan's economy.
'Water is the backbone of our industrial production. We strongly urge the provincial and federal governments to address this crisis without delay,' added the FBATI President. 'This is not just an industrial issue — it is a national economic concern.'
The Federal B Areas Associations of Trade & Industry (FBATI) has raised serious concerns over the declining water supply, urging immediate government intervention to avert a full-blown industrial crisis. Over 70 percent of industries in Federal B areas are exporters directly and indirectly, Tehseen further said.
He warns that continued neglect of this issue could have far-reaching consequences, not only for industrial performance but also for employment and investor confidence.
President FBATI has recommended short-term emergency measures, including prioritized water supply to industrial zones and regulatory action to monitor and improve tanker operations. In the longer term, the association advocates for investments in sustainable industrial water infrastructure, including recycling and desalination projects.
He appealed to CM Murad Ali Shah and Mayor Karachi Murtaza Wahab to resolve the issues of industries in Karachi immediately.
Copyright Business Recorder, 2025

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

FCCI urges govt to protect environment
FCCI urges govt to protect environment

Business Recorder

time3 days ago

  • Business Recorder

FCCI urges govt to protect environment

FAISALABAD: 'Environment Protection has emerged as one of the most critical issues after economy and defence and government in collaboration with the private sector must play pivotal role to save the environment on a sustained basis,' said Rehan Naseem Bharara, President Faisalabad Chamber of Commerce & Industry (FCCI). Addressing a function on World Environment Day, he appreciated the vision of Chief Minister Punjab Maryam Nawaz and Senior Provincial Minister Marriyum Aurangzeb, and said that tangible results could be achieved to reduce and ultimately eliminate the excessive use of plastic in the province. The topic of the seminar was 'Zero Plastic, Zero Pollution'. He lauded the environment-related legislation and said that implementation on it is equally important to protect this only known living planet for coming generations. Copyright Business Recorder, 2025

KCCI urges govt to re-evaluate its energy procurement & pricing strategies
KCCI urges govt to re-evaluate its energy procurement & pricing strategies

Business Recorder

time5 days ago

  • Business Recorder

KCCI urges govt to re-evaluate its energy procurement & pricing strategies

KARACHI: President Karachi Chamber of Commerce & Industry (KCCI), Muhammad Jawed Bilwani, has called upon the government to urgently re-evaluate its energy procurement and pricing strategies to safeguard Pakistan's industrial sector and support economic growth. Bilwani emphasized the need to continue purchasing Regasified Liquefied Natural Gas (RLNG) under existing agreement with Qatar but suggested that it be sold to industries at a reduced rate. The pricing gap, he proposed, can be bridged by supplying indigenous gas to captive power plants at lower rates. This, in turn, would ensure sufficient gas supply to industries at affordable rates, enhance productivity, create employment opportunities and prove favourable for the economy. Bilwani highlighted that the import of RLNG, via six vessels per month, costs the country approximately Rs50.5 billion monthly. He proposed that this gas be provided to industries at Rs40 billion, while the remaining Rs10.5 billion be offset through the supply of locally available lower-cost gas. 'The current energy pricing structure is unsustainable for our industries,' he said. 'With soaring energy tariffs, elevated taxes, and high interest rates, our industries cannot compete effectively on the international stage.' He warned that suspending the supply of 400 million cubic feet per day (mmcfd) of indigenous gas to regions under the Sui Northern Gas Pipelines Limited (SNGPL), including Punjab and Khyber Pakhtunkhwa while relying more on expensive RLNG, poses a serious threat to the industrial sector and the national economy. Bilwani stressed the urgent need to foster an enabling environment to promote industrial growth and enhance exports. He noted that due to the sharp rise in gas tariffs, many industrialists have been forced to revert to biomass sources like rice husk, mustard, sunflower, maize waste, and even cow dung to generate steam, finding it more economical than using industrial gas connections. 'Pakistan currently has among the highest industrial gas rates globally,' Bilwani said. 'It's unfortunate that, to deal with load-shedding and erratic electricity supply, the government itself advised industrialists to invest in captive power plants. Following this advice, businesses spent billions on gas generators, boilers for waste heat recovery, and chillers that utilized jacket water to produce free steam and cooling. All of these installations are now rendered ineffective and financially wasteful.' Bilwani also criticized the government's over reliance on International Monetary Fund (IMF) conditions, stating that such policies are being used to justify decisions that severely harm the industrial base. He urged for meaningful consultation with stakeholders to devise balanced, sustainable energy strategies that consider both fiscal constraints and industrial needs. 'We need a clear roadmap that prioritizes the viability of our industrial sector,' he asserted. 'It's time to move beyond temporary fixes and focus on long-term, strategic planning that ensures economic stability and global competitiveness.' Bilwani concluded by stressing that expecting industries to compete internationally while being burdened with the most expensive energy, excessive taxes, and high interest rates is simply unrealistic. 'If the government or the Prime Minister wants us to compete globally, they must first provide a conducive environment,' he said. 'In the current scenario, I cannot understand how industries are expected to survive let alone thrive.' Copyright Business Recorder, 2025

KCCI praises faceless customs assessment system
KCCI praises faceless customs assessment system

Business Recorder

time02-06-2025

  • Business Recorder

KCCI praises faceless customs assessment system

KARACHI: President Karachi Chamber of Commerce & Industry (KCCI) Muhammad Jawed Bilwani has said that only those individuals who are engaged in mis-declaration, under-invoicing, or other malpractices have faced difficulties under the new system. For the vast majority of compliant importers and exporters, the FCA has made processes faster, simpler, and more transparent; hence, all types of rumours circulating about the rollback of this system must be fully discouraged.' While strongly praising the performance of the Faceless Customs Assessment (FCA) system and calling for its immediate implementation across the country, Bilwani commended the Federal Board of Revenue (FBR) and Pakistan Customs for launching the FCA system in Karachi, which he described as a model of effective reform that has brought far-reaching benefits to the business community. The system, which leverages Information Technology (IT) and Artificial Intelligence (AI) to eliminate physical interaction in customs assessment, has drastically curtailed corruption, enhanced transparency, reduced losses on account of demurrage & detention and restored confidence among genuine traders. He noted that the introduction of FCA has significantly improved the efficiency of customs operations by expediting clearance times and simplifying documentation. With reduced dependence on clearing agents and elimination of discretionary powers, businesses now experience faster processing, fewer delays, and greater predictability in their import-export operations. The adoption of self-clearance by a growing number of traders has led to a considerable reduction in their cost of doing business, empowering them to manage their shipments independently through a digital interface. Bilwani emphasised that one of the most commendable achievements of the FCA system is the minimisation, almost complete elimination of physical visits to Customs House. This not only saves valuable time and operational resources but also reduces the opportunities for malpractices historically associated with manual assessment systems. As a result, legitimate businesses are finally operating in a more secure and equitable environment. Highlighting the success of the Karachi rollout, he stressed the need for swift nationwide replication. 'The outstanding results in Karachi clearly demonstrate that Pakistan's trade infrastructure can be modernised when technology is implemented with integrity and vision. There is no reason to delay its expansion to other cities and ports.' He further urged the government and relevant authorities to introduce similar IT and AI-enabled systems in all other departments linked with trade, taxation, and regulatory approvals. By reducing human involvement, he stated, the government can eliminate the root causes of corruption and inefficiency across the board. He also called for full digitisation of the entire trade process, from documentation and submission to assessment, approvals, and final clearance so that the entire ecosystem functions with greater transparency, accountability, and speed. Jawed Bilwani also appreciated the Customs officials in Karachi for their commitment to ensuring the success of the FCA system. He reiterated KCCI's full support for all initiatives that aim to simplify trade, reduce bureaucratic hurdles, and foster an environment conducive to fair and transparent business practices. Copyright Business Recorder, 2025

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store