Water crisis threatens Karachi's industrial sector, major factories face production shutdowns
Sep 18, 2024
Karachi [Pakistan], September 18 : The Karachi industrial sector is experiencing a significant crisis due to water shortages that jeopardize the operations of major factories in the Steel Mill and Port Qasim Industrial Area, according to Samaa TV.
A report from last month indicated that industries have been struggling due to the cut in water supply by the Karachi Water and Sewerage Board (KWSB), affecting numerous production facilities, including global automotive manufacturers.
The issue stems from a financial dispute between the water board and Pakistan Steel Mills. The Water Board cut off the water supply to industrial units in the area, citing unpaid debts by the Steel Mill, even though the company has paid millions in water bills over the years.
Pakistan Steel has requested the KWSB to take control of the water management system; however, the Water Board rejected the proposal, citing the significant debts owed by the Steel Mill.
The report further stated that the Federation of Pakistan Chambers of Commerce & Industry (FPCCI) and the Industrial Park Owners Association have expressed concern about the situation. In correspondence with the Federal Minister of Industry and Production, they underscored the substantial effects on production and called for urgent intervention. Zainul Abedin Shariq, Chairman of the Industrial Park Owners Association, emphasized that the conflict between the two parties has jeopardized the operations of numerous industries.
The letter states that the Steel Mill has continued to collect millions in ground rent and other fees from the industrial units, despite the water supply being cut off. Nevertheless, the factories are compelled to cease production due to the water shortage.
The Water Board administration has stated that no water will be supplied until the Steel Mill settles all outstanding dues. As a result, many industries, particularly in the auto sector, are facing a crisis, with production lines halted.
