Pakistani business body urges traders to boost security as extortion threats rise in Karachi

Pakistani business body urges traders to boost security as extortion threats rise in Karachi
People walk along a path next to closed shops at a partially deserted market area during an evening lockdown imposed to curb the spread of Covid-19 coronavirus cases in Karachi on July 30, 2021. (AFP)
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Updated 3 min 46 sec ago

Pakistani business body urges traders to boost security as extortion threats rise in Karachi

Pakistani business body urges traders to boost security as extortion threats rise in Karachi
  • Traders report receiving extortion notes accompanied by bullets and threats to family members
  • Security experts say organized criminal gangs, not militants, are behind the latest extortion wave

ISLAMABAD: A top business body in Pakistan’s commercial capital, Karachi, has issued an urgent security advisory to its members following a sharp uptick in extortion threats, warning traders to install CCTV systems as cases of intimidation and violence rise across the city.

In a circular dated October 4 and seen by Arab News, the Karachi Chamber of Commerce and Industry (KCCI) said business owners have reported receiving “extortion chits accompanied by bullets, with demands for heavy extortion money,” describing the situation as “extremely alarming.”

“The recordings of such CCTV footage may be shared with KCCI, enabling the Chamber to escalate the matter to the concerned authorities with concrete evidence to ensure swift action and the arrest of those involved in such heinous crimes,” the letter read.

The advisory comes amid growing concerns from Karachi’s trader and industrialist community, many of whom say extortion attempts once quelled by years of security operations have made a troubling comeback in recent weeks.

“There has been a surge in the incidents of extortion in recent weeks, which prompted us to bring the issue to the attention of the authorities as well as alert our members and ask them to install CCTV cameras,” Javed Bilwani, President of

KCCI, told Arab News. “But we believe that the menace of extortion cannot be eliminated until the Safe City project is completed.”

Bilwani said complaints had been received from a broad cross-section of Karachi’s business community, including traders, builders and industrialists, with extortion threats targeting both commercial and residential premises.

“They advised us to issue a circular and raise awareness among our members,” Bilwani said, referring to security officials without naming anyone. “That they should install cameras in their houses, in their businesses, in their industries. Builders should install cameras in their buildings.”

In a video statement shared with the media, Atiq Mir, President of the Karachi Tajir Ittehad (Traders Alliance), warned that Karachi’s merchants were again “at the mercy of extortionists.”

“Most of the shops and shopkeepers are getting calls. Bullets are being wrapped in sheets and sent,” Mir said, adding that the callers even threaten children of members of the business community.

Mir called on senior officials, including the Sindh chief minister and the Inspector General of Police, to take urgent action.

 “In the past, thousands of people left Karachi and went away,” he added. “Even now, it should not be the case that relocation resumes and this city becomes a complete jungle.”

Former senior counterterrorism officer Raja Umar Khattab said authorities must investigate such calls systematically.

“The police should not simply label these incidents as hoax calls. They need to classify and investigate them,” Khattab told Arab News. “Questions the police should ask include how genuine the threat is, how the money was demanded, what was delivered, and what message was received.”

Khattab noted that while modern-day extortionists often operate on a smaller scale than in the past, they still pose a serious challenge.

“Nowadays, they sometimes simulate violence,” he said. “They may show a picture of a bullet to intimidate people.”

According to Khattab, many threats are now issued through WhatsApp using foreign SIMs, especially from Iran and Afghanistan, making them harder to trace.

“Calls from Iranian or Afghan SIMs are hard to stop at the source, but local operatives, the ‘foot soldiers’ who collect money here can be caught.”

He dismissed any current involvement of militant groups, saying the extortion racket is being driven by organized criminal gangs, some led by known ringleaders who have rebuilt networks after being released from jail.

 “These are criminal gangs,” he emphasized. “This is an extortion and organized crime issue, not terrorism.”

A Karachi police spokesperson did not respond to repeated requests for comment.


Pakistan confirms release of ex-senator captured by Israel in Gaza aid flotilla raid

Pakistan confirms release of ex-senator captured by Israel in Gaza aid flotilla raid
Updated 07 October 2025

Pakistan confirms release of ex-senator captured by Israel in Gaza aid flotilla raid

Pakistan confirms release of ex-senator captured by Israel in Gaza aid flotilla raid
  • Deputy PM Ishaq Dar says Mushtaq Ahmed Khan is safe at the Pakistan embassy in Jordan
  • Islamabad thanks all friendly nations who assisted Pakistan in securing ex-senator’s release

ISLAMABAD: Deputy Prime Minister Ishaq Dar said on Tuesday former senator Mushtaq Ahmed Khan had been released and moved safely to the Pakistan embassy in Jordan after being detained by Israeli forces during the interception of an aid flotilla bound for Gaza.

The Global Sumud Flotilla, which carried activists from several countries, was stopped by Israeli naval forces last week as it sailed toward Gaza to deliver humanitarian assistance. The operation led to the detention of hundreds of participants, sparking protests in several countries, including Pakistan, and prompting diplomatic appeals for their release.

Khan was among those on board the convoy, which departed from European ports carrying medical supplies and food for civilians in Gaza, where the humanitarian crisis has deepened amid months of Israeli bombardment and aid restrictions.

“I am pleased to confirm that former Senator Mushtaq has been released and is now safely with Pakistan Embassy in Amman,” Dar said in a post on X.

“He is in good health and high spirits,” he added. “The embassy stands ready to facilitate his return to Pakistan in accordance with his wishes and convenience.”

Dar extended his gratitude to friendly nations that actively engaged and assisted the government in its efforts to secure the ex-senator’s release.

In a video posted on X after his release, Khan said he had arrived in Jordan with about 150 companions after being held in Israeli detention for five to six days.

“During this time, our hands were cuffed behind our backs, chains were fastened around our legs, our eyes were blindfolded, dogs were set upon us, guns were aimed at us and we were subjected to brutal torture,” he said.

“We went on a three-day hunger strike to press our demands, with no access to fresh air, drinking water or medicine,” he continued, vowing not to give up his struggle for Palestinian independence.

Khan said the group would keep trying to break Israel’s aid blockade and continue efforts to help Gaza, adding that he would share details of the flotilla raid and his detention in Israel after returning to Pakistan.

The flotilla incident has drawn international condemnation, with rights groups calling for the immediate release of detainees and renewed humanitarian access to Gaza.

On Sunday, thousands of pro-Palestinian demonstrators rallied in Pakistan’s eastern city of Lahore to protest Israel’s interception of the aid convoy, condemning what they described as threats to Palestinian land and rights.

The flotilla comprised 40 civilian boats carrying about 500 parliamentarians, lawyers and activists, including Swedish climate campaigner Greta Thunberg, who was also released on Monday.


Seven injured as blast derails Jaffar Express train in southern Pakistan

Seven injured as blast derails Jaffar Express train in southern Pakistan
Updated 07 October 2025

Seven injured as blast derails Jaffar Express train in southern Pakistan

Seven injured as blast derails Jaffar Express train in southern Pakistan
  • Explosion struck in Sindh’s Shikarpur district as train was en route from Peshawar to Quetta
  • Jaffar Express has been targeted multiple times this year, including hijacking and IED attacks

ISLAMABAD: Seven people were injured and four coaches of the Quetta-bound Jaffar Express passenger train derailed after an improvised explosive device (IED) went off in the southern Sindh province, police said on Tuesday.

The incident happened near Sultan Kot Railway Station in Shikarpur district as the train was traveling from Peshawar to Quetta.

The bomb disposal squad assessed that around five pounds of explosives were used in the IED blast, according to a senior police official who spoke on condition of anonymity.

“At least seven people were injured, one of them seriously, when four bogies overturned as a result of a blast near Sultan Kot Railway Station this morning,” he told Arab News over the phone.

“The injured were moved to a hospital for treatment.”

So far, no group has claimed responsibility for the attack.

Sindh Home Minister Zia-ul-Hassan Lanjar directed the police to begin an investigation and submit a report immediately.

“Terrorists involved in damaging the railway track will soon be brought to justice,” he said. “We will reach the culprits through concrete evidence and a thorough investigation.”

Earlier this year in March, the Balochistan Liberation Army (BLA), a separatist militant group, hijacked the Jaffar Express with about 400 passengers on board. The hijacking in the rugged Bolan mountain range ended after an hours-long military operation that killed 33 militants, while 23 soldiers, three railway staff and five passengers also lost their lives.

Last month, an IED blast derailed five coaches of the same train in Balochistan’s Mastung district. A similar attack also targeted the passenger train in August Quetta’s Spezand Railway Station.

Balochistan, which borders Iran and Afghanistan, has long been the center of an insurgency waged by Baloch separatist groups who frequently target government officials and foreigners.

The separatists accuse the central government of exploiting the province’s natural resources to fund development elsewhere in the country. Islamabad denies the allegation, saying it is working to improve livelihoods and promote development in Balochistan.
 


Karachi crowds gather on beaches as first supermoon of 2025 brightens night sky

Karachi crowds gather on beaches as first supermoon of 2025 brightens night sky
Updated 07 October 2025

Karachi crowds gather on beaches as first supermoon of 2025 brightens night sky

Karachi crowds gather on beaches as first supermoon of 2025 brightens night sky
  • Pakistan’s space agency says the October supermoon appeared larger and brighter than usual
  • The brightest supermoon of the year will appear in November as the moon moves closer to Earth

KARACHI: A “Harvest Supermoon,” one of the year’s largest and brightest celestial events, lit up the skies over Pakistan’s port city of Karachi on Monday night, drawing crowds eager to photograph the glowing lunar spectacle from beaches and waterfronts.

The phenomenon occurs when a full moon coincides with the moon’s closest point to Earth in its elliptical orbit — a position known as perigee — making it appear noticeably larger and brighter.

According to Pakistan’s national space agency SUPARCO, the October supermoon was about 6.6 percent larger and 13 percent brighter than an average full moon, reaching its peak at 8:47 p.m. local time (0347 GMT).

Residents flocked to popular viewing spots such as Sea View and Clifton Beach, where the moon rose above the Arabian Sea and cast a golden reflection across the water.

“It’s not every day you get to see this view,” said Umair Aslam, a Karachi resident. “This opportunity only comes once a year, so we came to enjoy the season, see the supermoon, and take some selfies.”

“We had an amazing time,” he added.

Another local, Mohammad Qaisar, said the sight drew nature enthusiasts from across the city.

“For those who love nature and keep their eyes on the sky, the first supermoon of 2025 was a deeply charming event,” he said. “It brought great happiness to everyone who witnessed it over Karachi.”

SUPARCO said this was the first of three supermoons expected in 2025, with the next two forecast for November 5 and December 5.

The brightest supermoon of the year is expected in November, when the moon will come as close as 221,817 miles (357,067 kilometers) to Earth, offering another luminous spectacle for skywatchers worldwide.


Pakistan PM vows easier investment climate in talks with Malaysian venture capital group

Pakistan PM vows easier investment climate in talks with Malaysian venture capital group
Updated 07 October 2025

Pakistan PM vows easier investment climate in talks with Malaysian venture capital group

Pakistan PM vows easier investment climate in talks with Malaysian venture capital group
  • Gobi Partners, with over $1.6 billion in assets, invests in tech startups across emerging Asian markets
  • Shehbaz Sharif receives honorary doctorate for leadership and governance from Malaysian university

ISLAMABAD: Prime Minister Shehbaz Sharif told a leading Malaysian venture capital group on Tuesday Pakistan and Malaysia were working to strengthen business-to-business links, with his administration pledging to make it easier to invest and operate in the country, particularly in the digital economy.

Sharif made the remarks during a meeting in Kuala Lumpur with Gobi Partners, a Malaysia-based firm that invests across Asia’s emerging markets. He welcomed the firm’s interest in Pakistan’s startup ecosystem and said the government was committed to improving the ease of doing business and supporting early-stage investors through targeted reforms.

Sharif is on a three-day visit to Malaysia, where he held wide-ranging talks a day earlier with his Malaysian counterpart Anwar Ibrahim.

The two countries announced a new $200 million halal meat trade quota and pledged to deepen cooperation in the digital economy, agriculture and education, in what both leaders described as a renewed effort to expand economic and strategic ties between the two Muslim nations.

“We are determined to create a business-friendly environment and improve the ease of doing business,” Sharif said, according to a statement from his office, during the meeting. “Our priority is to mobilize domestic and international capital to build a sustainable startup ecosystem.”

He said the Special Investment Facilitation Council (SIFC), a hybrid civil-military body set up two years ago to fast-track decisions in key economic sectors, was actively working to provide all necessary support to foreign investors.

Sharif also highlighted that Pakistan’s digital economy — including fintech, e-commerce and IT services — occupied a central place in the country’s national development strategy.

Gobi Partners, founded in 2002, has more than $1.6 billion in assets under management, investing across emerging markets in and around Malaysia’s immediate neighborhood, particularly in startups.

The visiting delegation expressed interest in collaborating with Pakistani firms in the financial technology and online commerce sectors, according to the statement.

Later in the day, the prime minister received an honorary doctorate in leadership and governance from the International Islamic University Malaysia.

Sharif spoke about the Islamic paradigm of leadership while addressing the occasion and thanked the participants of the event.

“Today, the Muslim Ummah confronts formidable challenges,” he said in his acceptance speech. “Conflicts, poverty, disunity and more than ever, it is in these testing times that we need to hold on together to our values and ethics guided by our religion, Islam, to be able to reclaim our lost place in the comity of nations.”

“Our responsibility as servants and as leaders is to provide them the right platforms to serve the cause of suffering humanity with compassion and with great commitment,” he added.

The prime minister said he also hoped his visit would strengthen academic cooperation between Pakistan and Malaysia and praised IIUM as one of the Muslim world’s most respected institutions that integrate knowledge, and ethics.


Pakistani textile giant eyes Gulf, Western markets with $35 million Egypt manufacturing plant

Pakistani textile giant eyes Gulf, Western markets with $35 million Egypt manufacturing plant
Updated 55 min 42 sec ago

Pakistani textile giant eyes Gulf, Western markets with $35 million Egypt manufacturing plant

Pakistani textile giant eyes Gulf, Western markets with $35 million Egypt manufacturing plant
  • Interloop facility at Suez Canal Economic Zone to cut shipping time by 20 days and production costs by 10 percent
  • Plant to use Pakistani yarn, target $40 million in exports to US, Europe, Africa and GCC within three years

FAISALABAD: Interloop, a Pakistani textile firm that manufactures socks for Nike, Adidas and other global apparel brands, is building a hosiery manufacturing hub in Egypt to boost exports to the West and Gulf Cooperation Council (GCC) markets, its chairman said.

Interloop has the capacity to produce about one billion socks annually through its manufacturing plants in Pakistan, China, Sri Lanka and Bangladesh. It supplies socks and leggings to brands such as Nike, Adidas, Puma, Target, H&M, Marks & Spencer, Zara and M&S, according to Interloop Chairman Musadaq Zulqarnain.

The textile firm is investing $35 million in its textile manufacturing facility at Egypt’s Suez Canal Economic Zone, which is expected to be completed in next 18 months. The facility will initially target $40 million in exports to its retail customers in the US, Europe, Africa and Gulf markets within three years of its operationalization.

“Egypt has a duty-free agreement with USA. And also, you can supply to EU and UK duty-free from Egypt,” Zulqarnain told Arab News in an interview in Faisalabad, when asked why his firm chose to establish the facility in Egypt.

The plant will use Pakistani yarn.

Interloop exploring new markets augurs well for Pakistan that has been struggling to boost exports which declined 12 percent to $2.5 billion last month. This, coupled with 14 percent hike in imports, widened the country’s trade deficit by 46 percent to $3.3 billion in Sept., according to the Pakistan Bureau of Statistics (PBS) data. Overall, this year through September, Pakistan’s trade gap widened by 33 percent to $9.4 billion.

Zulqarnain said the Egyptian plant will reduce Interloop’s shipping time across the regions by 20 days.

“It has a very close proximity to Europe and the shipping times from Egypt to US are much shorter,” he said, adding their production costs in Egypt would drop by 10 percent and the company will have 22 percent less trade tariff than Pakistan’s.

“From Pakistan the duty into US is 13 to 14 percent on top of that we have a 19 percent reciprocal tariff, while from Egypt they just have a 10 percent reciprocal tariff so if somebody is importing goods from Egypt his or her duty as compared to Pakistan will be 20 to 22 percent lower so that’s a huge advantage out of Egypt.”

SQUEEZED MARGINS

Interloop is seeking economies of scale, given what Zulqarnain said “higher” taxation, energy and labor costs and unavailability of value-added raw materials at home and a short-term compression in global demand specially from Europe, where consumers were shifting to Chinese products because of US tariffs.

“We have seen ups and downs in demand because of the changing market conditions, especially the US tariffs have brought in a lot of uncertainty,” he said, adding his clients were “being very cautious” in building up inventories.

“Our margins have been squeezed,” said Zulqarnain, whose firm employs more than 40,000 people.

Interloop reported its earnings for fiscal year 2024-25 in a filing to the Pakistan Stock Exchange (PSX) last month, showing 13 percent hike in sales to Rs179 billion ($638 million).

The textile giant’s profits, however, declined threefolds, or by 66 percent, to Rs5.6 billion ($20.1 million) from Rs16.5 billion ($59 million) of the previous year, with the cost of sales surging 25 percent to Rs143 billion ($507 million).

Its shareholders got one-rupee dividends.

“Because of the labor wage adjustment and the energy… at least 5 percent hit has been taken on the cost of production,” Zulqarnain told Arab News.

Finance Minister Muhammad Aurangzeb is trying to get Pakistan’s debt-ridden economy out of what he has said the frequent boom-and-bust cycles and was recently able to strike a trade deal with the US, which slashed the initial 29 percent tariffs to 19 percent. The new rate is expected to make Pakistan’s exports competitive.

Unaware of what her company is facing, 24-year-old Esha-tur-Razia was busy supervising a group of staffers at the Interloop manufacturing facility in Faisalabad, which produces 8,000 pairs of socks daily.

“We do socks production here and we do packing and finishing in here,” she said. “Our daily target is 1,200 pairs [of socks in our eight-hour shift].”

GULF MARKET

According to PBS data, Interloop exported goods worth $500 million in fiscal year 2023-24, compared to Pakistan’s total textile exports of $1.6 billion that year. It seeks $700 million exports this year.

The company has now set sights on $35 billion Gulf market that is expected to grow to as much as $45 billion in the next five years.

“Half of it is and half is rest of the GCC countries,” Zulqarnain said. “The current retail for apparel and clothing in GCC alone is $35 billion.”

Interloop’s business development teams are working on the GCC market and its chairman plans to export $50 million denim jeans, knitwear and socks to the region over next few years.

“It will make more sense for us to export from Egypt to or GCC if we are able to develop that demand,” he said.

To materialize these projects, Zulqarnain plans to issue rights shares to his firm’s shareholders in the next couple of years.

In March 2019, Interloop raised more than Rs5 billion ($17.7 million) through Pakistan’s largest private sector Initial Public Offering (IPO), something Zulqarnain said all of his group companies, including dairy, IT and logistics, would do in the next three years.

“We might invite one of the international development finance institutions to come with us as equity partners,” he said.

Maira Javeed, a deputy general manager sales and merchandise at Interloop, keeps looking for new customers.

“We are in touch with some of the customers in the Gulf market,” Javeed said. “We are aiming to bring new customers on our portfolio to increase our revenue.”