Over 10,000 jobs, Rs30bn lost to arson in Karachi

KARACHI: Over 10,000 people have lost their jobs because of a blaze that gutted between 2,000 and 3,000 shops located between Light House and Boulton Market in the old city area on Monday, causing an estimated loss of Rs30 billion.

“Thousands will have nothing to do on Wednesday when they return to markets. They were employed in shops destroyed when certain elements reacted violently after the suicide attack on the Ashura procession,” a shop-owner in the affected locality told Dawn on Tuesday.

About an equal number of people, indirectly associated with the shops, would also be either out of work or face difficulty in finding new work for some time.

Most shops in the area were on ‘pagri’ system, instead of full-fledged ownership. They were also not insured.

Initial estimates of losses were about Rs30 billion, but traders were still updating figures in the hope of getting compensation after Interior Minister Rahman Malik set up a Boulton Market Victims’ Fund on Tuesday with the help of the Karachi Chamber of Commerce and Industry (KCCI).

The affected shopkeepers cried at a meeting held at the KCCI with Mr Malik. Senior MQM leader Farooq Sattar was also present.

KCCI President Abdul Majid Haji Mohammad said that survey forms had been given to the affected shopkeepers to file details of losses, nature of business, ownership, rent and pagri, CNIC and income tax details.

“These details will be provided to Nadra to ascertain whether the claims are genuine before payment of compensation,” he said.

He said the interior minister did not mention the amount of the fund as he was waiting for the prime minister’s approval.

The KCCI president said that more than 10,000 people working in the shops had lost their jobs.

He, however, recalled that the government had not compensated the traders who had suffered heavy losses on Dec 27, 2007, after the assassination of former prime minister Benazir Bhutto and destruction of the plastic market by a fire a few years ago.

“Only those companies or units were compensated which were insured,” he added. It is difficult to predict the impact on the supply of various items, including medicines, plastic, paper and artificial jewellry, to the retail market after the devastation. Traders said that supply would definitely be hit, especially of plastic and medicines.

Mohammad Ilyas, owner of Chandna Opticals at Light House which was burnt to ashes, said his shop was not insured but the setting up of the fund gave him some hope of getting compensation for his loss.

The chairman of the Old City Traders’ Alliance, Mohammad Jamil Paracha, said the government should rebuild the shops or provide a sufficient amount to the owners for reconstruction.

He said that although most of the shops were on a pagri basis, the shopkeepers were paying taxes and, therefore, there was no question of coming into the tax net after seeking compensation.

Death toll rises to 40 as Karachiites survey blast damage

KARACHI: Shop owners surveyed gutted premises and security forces patrolled nearly empty streets in Karachi on Tuesday, a day after a suicide bomber killed 40 people and triggered a city-centre riot.

The bombing of a Shia procession in Karachi underscored multiple security challenges facing Pakistan at a volatile time for embattled President Asif Ali Zardari.

The government launched a security crackdown last October against al-Qaeda-linked Taliban militants in their tribal strongholds in northwest Pakistan and retaliatory bombings since have killed hundreds of people across Pakistan.

A security official arrives at the scene after a suicide bomb attack on a procession of Shias commemorating Ashura in Karachi, December 28, 2009. — Reuters

Karachi Mayor Syed Mustafa Kamal told Reuters the death toll had risen to at least 32, with dozens of injured still in hospitals.

“We have arrested some people and are investigating,” Karachi police chief Waseem Ahmed told Reuters.

“According to our initial investigation, the suicide bomber was aged between

18 and 20, and he used 8-9 kilograms of explosives.”

He said at least 500 shops and nine buildings had been set ablaze in the aftermath of the attack.

The attack may have just been part of a series of bombings designed to spread panic or an attempt to ignite sectarian violence to pile more pressure on security forces.

“It is clear that the terrorists are very well organised. They want to destabilise the country,” said Anjum Naqvi, who was part of the bombed procession.

Transport idle, shops closed

The provincial government of Sindh, of which Karachi is the capital, declared a public holiday, though banks and the stock market remained open. Public transport was out of service and most shops and petrol pumps were shut after religious and political parties called for a day of mourning.

“Our office and the whole building is completely burnt. Everything has been destroyed,” said Saleem Khan, who runs a car rental business along what is normally a busy road.

A spokesman for the paramilitary rangers, Major Aurangzeb, said his forces were “on 100 per cent deployment and will take every possible step to maintain peace”.

Some grieved before attending funerals, which can be risky — militants have bombed funerals for their victims, usually in the northwest. Others said their lives had been shattered.

“I know it's a huge loss for the families of those who were killed. But what about our families? We are alive and have lost everything,” said Muhammad Shams, owner a shop which makes plastic.

A teeming city of 18 million, Karachi has a long history of ethnic and factional violence, although it has been spared the brunt of Taliban attacks over the past couple of years.

Investors have factored in the violence. But sustained troubles could hurt financial markets in an economy in virtual recession. The stock market opened over one per cent lower.

In Monday's bloodshed, the assailant blew himself up at a march by thousands of people marking the climax of Ashura, the Shia calendar's biggest event, despite heavy security.

The attack was the third in as many days in Karachi.

“Karachi is the heart of the country and any incident here does have a negative impact on investor sentiment,” said Mohammed Sohail, chief executive of brokerage Topline Securities.

Aside from al-Qaeda linked militants bent on toppling his government, the president is also under political pressure.

Some of Zardari's closest aides and thousands of members of his party could face renewed corruption charges which could weaken him further at a time when the United States is pushing his government for tougher action against militants.