Karachi’s business community reported estimated losses of around $18 million on Tuesday following a massive fire at a major shopping plaza. Rescue teams continue to search the site, amid fears that more victims may still be trapped under the rubble.
The blaze erupted late Saturday at Gul Plaza, a multi-story shopping complex in Karachi’s busy Saddar area. The fire spread quickly through the building, which houses over 1,200 shops, trapping workers and shoppers inside. Recovery efforts have been slow due to severe structural damage and concerns about potential collapses, officials said.
Dr. Summaiya Syed, Karachi’s chief police surgeon, confirmed that 27 people have died so far, with several more bodies still being identified.
Karachi has a long history of deadly fires in commercial buildings, often blamed on overcrowding, aging infrastructure and weak enforcement of fire safety regulations in a city of more than 20 million people.
Atiq Mir, president of the Karachi Tajir Ittehad, which represents around 600,000 small traders across the city, said assessments by traders now put the financial damage from the Gul Plaza fire at nearly Rs5 billion ($18 million), far higher than initial estimates.
“The plaza had at least 8000-10,000 laborers and then those affiliated to them. We can easily say nearly 10,000 families have been affected by this fire,” Mir told Arab News.
He urged the government to announce a compensation grant of at least Rs5 billion ($18 million) and said the Karachi Chamber of Commerce and Industry would be the most appropriate body to oversee transparent distribution of relief funds.
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On Monday, the provincial government of Sindh said it would provide Rs10 million ($36,000) in compensation to the family of each person killed in the Gul Plaza fire.
Chief Minister Murad Ali Shah also announced the formation of a joint committee involving provincial officials and the Karachi Chamber of Commerce and Industry (KCCI) to assess losses and oversee rehabilitation of affected traders. He said authorities were exploring temporary arrangements to relocate 1,000 to 1,200 shops so businesses could resume operations as quickly as possible.
Citing past precedents such as the Bolton Market arson and the Cooperative Market fire, Shah said similar compensation and recovery mechanisms had previously helped traders rebuild their livelihoods and would guide the current response.
On Tuesday, Karachi Mayor Murtaza Wahab said heavy machinery had been deployed to clear debris and allow access to Gul Plaza’s basement, where search teams believe victims may still be trapped.
“Under all circumstances, the rescue operation must be completed and the search for victims further accelerated,” Wahab said during a visit to the site, according to a statement.
“All departments of the Karachi Metropolitan Corporation will remain on alert until every missing person is traced and the operation is concluded.”
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As rescue operations intensified at Gul Plaza, emergency services were dispatched to another fire at Karachi’s New Vegetable Market, officials said, underscoring persistent safety challenges.
Deputy Mayor Salman Abdullah Murad said fire brigade units and Rescue 1122 teams were immediately deployed and the blaze was brought under control.
“The fire is under control and there is no danger,” Murad said, adding that the affected area had been secured and cooling operations were underway.
Police officials said no casualties were reported in the vegetable market incident.
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