By Amir Zia
Sunday, April 17, 2011
The News
One does not have to be an economist or a financial guru to know that the foremost requirement for any business to flourish and grow is security and rule of the law
Big promises, tall claims and a barrage of allegations and counter allegations -- that's what appears to be the outcome of the April 5 shutter down by traders and shopkeepers against the politically-connected crime mafias operating in the countryís financial hub of Karachi.
Interior Minister Rehman Malik, who at least has mastered the art of domestic diplomacy if not the ability to maintain law and order in the country, again dashed to Karachi this week with a bag full of promises to calm the nerves of the weary business community that remains the prime target of extortionists, kidnappers and all types of thugs.
In his meeting with leaders of the Karachi Chamber of Commerce and Industry (KCCI) at Governor House on April 14, he again made a string of bombastic promises that range from the controversial statement of shooting extortionists and bandits at sight to that of providing cellular telephone monitoring equipment to the police for tracing criminals. More security pickets, patrolling and snap checking in the volatile areas have also been ordered.
Keeping scepticism aside, have we not heard such empty announcements many times before and yet seen the city plunging deeper into the cycle of lawlessness, violence and crime? For instance, on March 17, Malik vowed a crackdown on criminals, including the Peoples’ Amn Committee of Lyari — blamed for the recent surge in crime and extortion in the main business and trade centres of Karachi. However, no action followed this announcement as criminals continue to strike at will. This forced small traders and shopkeepers to go for a shutter down on April 5, defying the KCCI leaders, who wanted to postpone this protest to give time to the government for a crackdown on the crime mafias.
Although the shutter down led to bitter divisions within the business community over the protest strategy, it remains a fact that extortion has become the number one problem for small and big traders, shop keepers, businesspeople and industrialists alike.
“If the government wants to prevent an economic collapse, it has to restore law and order in Karachi which is Pakistan’s industrial and commercial hub,” said Siraj Kassim Teli, chairman of KCCI’s Businessmen group. “The situation is grave. Operating even a small shop has now become a risky business because of the rampant crime.”
Atiq Mir, leader of the All Karachi Traders’ Alliance, which led the April 5 shutter down, said that the business of extortion blooms as usual. “Everyone is afraid of these invisible bandits, who demand money on the phone and threaten dire consequences if one refuses to meet their demand.”
It has been months now since the KCCI has been urging both the federal and provincial governments to tackle the crime mafias, but thanks to political expediency, they have got nothing but hollow promises and false assurances. Background interviews with business leaders show that people remain reluctant to put money and open new businesses in Karachi. The problem is not restricted to one or two neighbourhoods. The entire city of more than 17 million people appears hostage to criminals and an uncaring government.
For all practical purposes, the police and paramilitary Rangers are powerless, while the all-knowing Intelligence Bureau and the much-dreaded Federal Investigation Agency clueless when it comes to dealing with the vast empire of extortionists, kidnappers and bandits. One has to live in Karachi to feel the dread of criminals and politically-connected mafias. The irony is that most criminals operate under the banner of this or that political party. While all the political forces, even the partners in the ruling coalition, discreetly point fingers at one another, there remains a callous apathy toward the plight of the people.
Indeed, Karachi has a history of violence and crime, but there has been an explosion in cases of extortion, kidnappings for ransom, robberies and murders since Pakistan Peoples’ Party (PPP)-led government assumed power in March 2008. The breakdown in law and order has hit hard all sections of the society, but small shopkeepers, traders and businesses are among the worst affected.
The fear of receipt or “parchi” as called in the local lingo, or a threatening text message on one’s mobile telephone demanding money, brings a shudder in the spines of those who receive them. The demand could start from a few thousand rupees to that of tens of millions.
One does not have to be an economist or a financial guru to know that the foremost requirement for any business to flourish and grow is security and rule of the law. Insecurity and lawlessness force capital to fly to safer destinations as has been happening in Pakistan from where many business concerns have shifted abroad for expansion including places like Bangladesh, Malaysia, Dubai and South Africa. When even locals are afraid to make investments because of insecurity, crime and terrorism, one can't expect foreign investors to enter the land of the pure. KCCI President Muhammad Saeed Shafiq appears right when he says that tackling crime in Karachi is no longer just an administrative issue.
It requires immense political will and commitment to beat the crime mafias, starting from reforms not just in the state institutions — from the police to judiciary — but also a process of cleansing within the political parties, which have armed goons in their ranks.
The blame game will not end Karachi’s law and order woes, which are having a crippling affect on the business climate. The need of the hour is establishing the rule of the law. Karachi needs actions not words. Are the political parties ready to rise to the challenge to ensure that the economic pulse of Pakistan keeps beating?
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