KARACHI, Nov 19: A number of Pakistani businesses have marked their presence in the industrial landscape of Malaysia, Bangladesh, Sri Lanka and some of African countries. Their leaders, however, seem to be reluctant to admit to the persisting trend of relocation and expansion overseas.

The office-bearers of various industrial bodies contacted to solicit comments gave mixed views. It was however confirmed in conversation that local businessmen were keenly exploring options beyond borders while many had already entered these countries.

The industrialists were, however, more alarmed over the rising trend of closure of units in Karachi over the last few years.

They maintained that street crimes persisted in Karachi despite patrolling of Rangers.

Industrial bodies of the four main estates of Karachi were not willing to disclose the names their members or non-members who have expanded their business abroad after closing down their units or for any other reasons.

Site Association of Industry Chairman Mohammad Irfan Moton cited law and order being the major reason for relocating of business abroad. He said many big industrialists have set up textile units in Sri Lanka, Bangladesh and Malaysia and many are actively considering moving abroad while a number of businessmen have opened their offices in these countries.

“If an industrialist is not expanding or reducing his business in this city then he is definitely moving out of the country,” he said.

He said business activities were already shrinking and industrialists were not taking risk for business expansion.

However, businessmen with options are moving abroad.

He said businessmen who had purchased industrial units in the Site area were reluctant to invest in any commercial projects.

However, they had opened offices in their industrial units while over 100 units had been converted into warehouses.

“No new unit has come up in the last three years in the Site area,” Irfan Moton said, adding that out of 4,000 units around 1,600-1,800 units have closed down in the last five to six years and only 2,200-2,400 units are operational.

When asked about the improvement in law and order after deployment of Rangers in the industrial area, he said the extortion cases had come to a halt followed by only 30 per cent decline in cases of snatching at gun-point and robbery, while cases of kidnapping has declined by 70 per cent.

Chairman Korangi Association of Trade and Industry (KATI), Ehteshamuddin said after testing Bangladesh, Malaysia, etc., industrialists and exporters were now more focused on Sri Lanka, which is considered as a hot destination.

Besides offering security and incentives to the foreign investment, one can export its item to India also from Sri Lanka, he said adding that from Bangladesh and Malaysia exporters have a huge market access option. He said big Pakistani exporters cannot afford to lose their regular buyers due to power and gas shortages while in these countries at least they do not have such kind of problems.

Ehteshamuddin said many industrialists and exporters, who have not winded up their units in Karachi completely, were paying more attention to their businesses in Sri Lanka, Bangladesh and Malaysia.

“Industrialists and exporters are going from Korangi industrial area but I cannot confirm their names right now,” he said, adding that many entrepreneurs have also taken local labour abroad especially in textile related businesses.

On law and order situation, he claimed substantial decline in cases of street crimes, robbery and extortion of money. On closure of industries, KATI chief said that many industries had shut down and a number of industrialists turned their units into godowns or rented out them to other parties.

Chairman North Karachi Association of Trade and Industry (NKATI), Abdul Rasheed Fodderwala said many industrialists had started their business activities in Bangladesh and Malaysia he however declined to disclose the names of such industrialists belonging to NKATI. He added that no new industries were added in the area.

He said businessmen were relocating to other countries due to zero-duty access to America and European Union from Bangladesh while Malaysian government is offering 10-year visa. He said many have moved to these destinations by closing down their units here while many had expanded their business.

Fodderwala said some 16 textile related and dyeing units (member of NKATI) have packed up their business in North Karachi area in the last two years due to financial problems, recession in world markets, fluctuations in yarn prices and law and order situation.

He said now industrialists were facing problems due to prolonged power outages and sharp increase in water tariff.

The NKATI chief said despite Rangers’ presence and its patrolling cases of street crimes like snatching at gun point had increased while there were no cases of extortion.

Chairman F.B. Area Association of Trade and Industry (FBATI), Masroor Ahmed Alvi reckoned that businessmen were moving to Bangladesh, Sri Lanka and African countries by further expanding their business but said he has no report about any flight of capital or business expansion by any industrialists from the F.B. Area.

He said no new units had been set up in the area and in the last two to three years some 30-35 units relating to textile and garments had closed down. The existing units, he claimed, are operating at 40-50 per cent capacity.

On Rangers’ presence, he said street crimes still exist but other criminal activities like extortion has disappeared.

Meanwhile, market is abuzz with reports that an estimated Rs27 billion have found way into Malaysia in the last six months.