Construction being done by the Association of Builders and Developers. Photo: REUTERS
The Association of Builders and Developers has issued a one-month ultimatum to the government over rising incidents of extortion and kidnapping for ransom, warning that construction activities across the city will be shut down from January 15, 2026, if the situation does not improve.
The warning was issued during a press conference addressed by Association of Builders and Developers (ABAD) Chairman Hasan Bakhshi, Patron-in-Chief Mohsin Sheikhani, Senior Vice Chairman Afzal Hameed, Karachi Chamber of Commerce representative Hafeez Aziz, and others.
Addressing the media, Mohsin Sheikhani said that a decision had been taken to shut down businesses in Karachi after January 15 due to worsening insecurity. He said police appeared helpless in the face of criminals involved in extortion and kidnapping for ransom, adding that nothing would change unless red warrants were issued against these elements.
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He said details had already been shared with all relevant institutions and law enforcement agencies. “Maintaining law and order is the responsibility of security agencies. Why is the federal interior minister not issuing red warrants against the identified extortionists?” he asked. Sheikhani said the “bhatta (extortion slip) culture” exists only in Karachi and not in Lahore or other cities.
He added that unless the federal government takes ownership of the issue, it will not be resolved. “If we have a personal dispute with someone, does that mean we should be killed? Personal rivalries should not be used as an excuse to shirk responsibility,” he said.
ABAD Chairman Hasan Bakhshi said extortion had reached alarming levels in the city. “Ten of our members have received extortion calls from Dubai and Iran. They demanded Rs50 million, and when the money was not paid, their staff were shot and injured,” he said.
He named Ahmed Ali Magsi, Jameel Chhanga, Samad Katiyhawari and Aziz Lakho as being involved in extortion, alleging that 15 to 20 ABAD members are paying them monthly extortion. He questioned why the police and Rangers were not issuing red warrants against these elements and asked why the Interior Ministry was failing while people were being killed and looted in Karachi.
Bakhshi said extortionists were openly providing bank account numbers for traceable money transfers, yet no action was being taken. “There are over 60 cases registered against Waseem (Wasay) Lakho, yet no red warrant has been issued — why?” he asked.
He said Karachi’s traders and builders had been left defenceless and were personally fighting land grabbers and extortionists. “Will the state come forward to protect Karachi’s traders and builders?” he asked, appealing to the IG Sindh, Corps Commander, Mohsin Naqvi and the Field Marshal to intervene as representatives of the state.
He said the situation had gone beyond the tolerance of the city’s business community. “This is not just ABAD; members of the Karachi Chamber and the Federation are also deeply concerned. Businesses are now relocating from Karachi,” he said.
He added that after the Field Marshal’s intervention, land grabbing had reduced, but institutions themselves had now become involved in land grabbing and were unwilling to even comply with court orders.
Bakhshi said shrinking business activity had reduced Karachi’s contribution to national tax revenue from 65% to 54%, warning that ABAD members would shut down operations in the city. He added that Senior Vice Chairman Hameed had also received extortion calls, prominent industrialist Salim Ghaudel had been targeted, and firing had occurred at Naeem Mirani’s premises.
He said applications against extortion had been submitted to Bilawal Bhutto and the Sindh Chief Minister, adding that no one could now claim ignorance. “Without sustained corrective measures, conditions will not improve. Legal businesses are shutting down while informal settlements are being promoted,” he said, warning that crime was increasing under the cover of katchi abadis (informal settlements).
He said if conditions did not improve within a month, ABAD would move towards protest sit-ins. “Issuing red warrants against criminals is the authority of the federal government,” he said, adding that Karachi’s economy was being destroyed by five or six individuals who were traceable yet allowed to roam free.
ABAD Senior Vice Chairman Hameed said he had never paid extortion in the past and never would in the future. He called the situation a conspiracy to sabotage the economy, saying he would neither leave Karachi nor the country. He questioned why Karachi was being deliberately targeted and warned that if Karachi’s real estate industry collapsed, remittances into the country would also decline.
Karachi Chamber of Commerce representative Hafeez Aziz said a case for issuing red warrants against Waseemullah Lakho had been sent to the police, but no action had been taken so far. “Law and order is our fundamental right. Extortion must be eliminated, and the protection of traders and builders is the government’s responsibility,” he said.
He said traders in Jodia Bazaar were being forced to pay extortion — some paying lakhs, others Rs50,000 monthly. He challenged Waseemullah Lakho to come to Karachi instead of making threats from Iran.
He said law-enforcement agencies were fully aware of who was running the extortion network and from where. “It seems policies are being made to prevent Karachi from functioning,” he said, adding, “We are businessmen, not politicians. We want to work. Lifting criminals from Iran is not impossible for the government.”
“Our hearts are burning, our lives are not safe. Security is our right — not a favour,” he concluded.
