Heavy Rains Disrupt Karachi’s Industrial and Business Activities

By Business Desk | Published August 22, 2025 | 11:36 am

Heavy rains and urban flooding have brought industrial and commercial activities in Karachi to a standstill, causing severe disruption in domestic production and export consignments. The city’s fragile infrastructure and drainage system collapsed under the torrential downpour, leading to heavy financial losses for businesses and industries.

Utilities and Production Severely Affected

According to representatives of the business community, utilities such as electricity, internet, and telecommunication services were suspended in many industrial areas, small and medium enterprises (SMEs), and commercial hubs.

Shaikh Muhammad Tehseen, President of the Federal B Area Association of Trade and Industries (FBATI), stated that numerous factories and warehouses in low-lying zones were inundated with rain and sewage water. Stored goods were destroyed, and production lines were halted for several days. Workers also struggled to reach workplaces due to flooded roads and lack of public transport.

He urged the government to collaborate with the private sector to create an emergency rescue and relief plan to address the recurring issue of urban flooding in Karachi.

Goods Transport and Logistics Face Delays

Masood Pervaiz, President of the SITE Superhighway Association of Industries (SSHAI), highlighted that rainwater still remains stagnant in several industrial areas and highways. This has delayed the transportation of raw materials and finished goods across Karachi. He warned that industrial production and logistics may take up to a week to normalize in the most affected areas.

Pervaiz further added that the breakdown of infrastructure and communication networks tarnishes Karachi’s image as an economic hub with strong investment potential. He called for immediate government investment in modern infrastructure and suggested forming a dedicated industrial task force to maintain business continuity during emergencies.

Karachi’s Economic Engine at Risk

Muhammad Jawed Bilwani, President of the Karachi Chamber of Commerce & Industry (KCCI), expressed grave concerns over the worsening crisis. He said that torrential rains have plunged Karachi into chaos, with both businesses and citizens suffering unbearable hardships.

Despite Karachi’s role as Pakistan’s economic engine, contributing billions to the national exchequer, the city continues to face government neglect and minimal reinvestment in infrastructure. Bilwani demanded immediate financial compensation for small shopkeepers whose businesses were destroyed and urged the Sindh Government to freeze provincial taxes until conditions improve.

He also suggested deferring electricity and gas bill payments for industries and households, as the suspension of K-Electric’s power supply for over 36 hours has left factories and residential areas paralyzed.

Call for Immediate Action

Business leaders unanimously agreed that the Karachi rains and flooding crisis highlight the urgent need for:

• Long-term investment in infrastructure and drainage systems

• Collaboration between government and industrial associations

• Relief packages for traders and SMEs

• A disaster management task force to ensure economic continuity

Karachi, being the backbone of Pakistan’s economy, cannot afford repeated shutdowns every monsoon season. Without timely reforms, both domestic and foreign investors may lose confidence in the city’s business environment.