Expensive Land!

Industrial land in four successful industrial estates in Karachi is
more expensive
than the real estate available in industrial estates of
China, Malaysia, Thailand, UAE, Sri Lanka and India!

And we wonder why industries are so slow in getting up here!

On a side note, a recent story narrated by a harried businessman, who was put out of business by CIVIC agencies goes something like this. He setup a soap factory is Korangi industrial area, after obtaining the available permits and approvals from the ‘visible’ agencies. After an expensive setting up procedure, he finally opened the factory for business and hired workers. On that first day, he was served with violation notices from almost TWENTY SIX ‘hidden’ civic agencies, whose officers then came around to harass and bribe the poor owner.

After months of fruitless negotiations, he was forced to close up shop and move back to the states, where he originally hailed from. His fault? He didn’t have the requisite ‘connections’ to keep these agencies at bay.

And land is STILL so expensive?! Doesn’t really makes sense, does it?

Anyone have more ‘horror stories’ to share while dealing with the civic agencies for business purposes?

5 Comments so far

  1. IUnknown (unregistered) on December 26th, 2007 @ 11:28 am

    thats the reason our bizness is going down and down and they are still yelling “TARAQI TARAQI”.

    We hush away new and big investments like this. This might not be the only story in karachi,im sure.


  2. Jamal Shamsi (unregistered) on December 26th, 2007 @ 12:04 pm

    OUR fabrication unit handling exhaust & intake manifolds for Suzuki & Honda automobiles at 2.5 acres of land in SITE is closed since 1991. Machinery is sold out and we are paying SITE tax for ownership of place, which is increased 15% every 3 years.

    SITE, KITE, HUB are Legal extortion authorities plus:

    a. EOBI – Federal Authority
    b. Firebrigade – Federal Agency under city govts
    c. Civil Defence – Federal Authority under city govts

    d. City District Govt Trade Licence section
    e. City District Govt Health section
    f. City District Govt Advertisment section
    g. City District Govt Public Safety section
    h. City District Govt Sanitation section
    i. City District Govt Encroachment section
    j. City District Govt Vigilance section

    OUR fabrication unit handling exhaust & intake manifolds for Suzuki & Honda automobiles at 2.5 acres of land in SITE is closed since 1991. Machinery is sold out and we are paying SITE tax for ownership of place, which is increased 15% every 3 years.

    SITE, KITE, HUB are Legal extortion authorities plus:

    a. EOBI – Federal Authority
    b. Firebrigade – Federal Agency under city govts
    c. Civil Defence – Federal Authority under city govts

    d. City District Govt Trade Licence section
    e. City District Govt Health section
    f. City District Govt Advertisment section
    g. City District Govt Public Safety section
    h. City District Govt Sanitation section
    i. City District Govt Encroachment section
    j. City District Govt Vigilance section < – harami tareen dept of CDG
    k. Provincial Govt excise & taxation dept
    l. Provincial Govt professional tax dept
    m. Provincial Govt trade licence dept
    n. Provincial Govt labor welfare dept
    o. Provincial Govt health dept
    p. Provincial Govt conservancy dept

    q. Sales Tax – Federal Govt
    r. Income Tax – Federal Govt

    These are names of section with files and challans and correspondence our accounts section maintained to justify expenses., and yet failed to get relief.

    – abroad – people are getting all done at ONE central building at one window [ all above apply but handled at single window called Investors relation counter ] 3 sheets are given, presentend at bank, One cheque of total amount deposit with original and 2 copies stamped returned, one submitted back to the window, one for office record & accounts.

    All peace, and everyone happy.

    the whole zone of 3.5 sq KM area was established in 1993 and become operational since 1995, now the area is thiriving and space is booked till after 2011, –

    Ham kiss gali ja rahay hain!


  3. IUnknown (unregistered) on December 26th, 2007 @ 12:57 pm

    @jamal: nice work.

    Yeh foriegn countries promote bizness thats why they are ahead. My manager registered his company in UK in just 45 minutes. That is, in 45 minutes, he got all docs in his hand.

    And here we are trying to register our company as branch office (remember, its a PLC company in UK), but still unable to register, even wid the help fergouson.

    Ah!! total disaster, and moreover , we call it taraqi. Untill we admit our mistakes, we cant go ahead and improve.


  4. d0ct0r (unregistered) on December 26th, 2007 @ 1:27 pm

    in our country land is being used as commodity item.. people buy n sell files and that naturally jack up the prices when the demand is there and supply is short.. if they increase the NUF(non utilization fee) and make it mandatory for owner of plots to build on their plot within 3~5 years then many investor would rightaway sell their plots.. and then it’ll show the true pic and the phenomenon will reverse i.e. more supply n less demand.. that’ll ease up prices..


  5. TURAB (unregistered) on December 27th, 2007 @ 12:08 pm

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