Builders in Karachi are facing an alarming surge in extortion demands from alleged foreign-linked criminal gangs. The Association of Builders and Developers (Abad) has voiced a grave warning: operations will halt from January 15, 2026, if the government fails to address the escalating crisis.
Builders Allege Intimidation by ‘Foreign Gangs’ Amid Surge in Extortion Cases in Karachi
Karachi’s business landscape is under siege, with developers reporting an unprecedented wave of extortion and harassment. Abad members have detailed receiving threatening calls originating from Iran and the United Arab Emirates. These demands for “protection money” can reach as high as Rs50 million.
At least ten builders have formally reported these threats to authorities. SindhNews.com has learned that the situation has escalated to the point where individuals refusing demands face armed intimidation. This alarming trend follows similar concerns previously raised by the Korangi Association of Trade and Industry and the All City Traders Ittehad Association.
Abad’s Members Receive Calls from International Numbers
Speaking at a press conference, Abad officials highlighted the systematic targeting of their members. Chairman Muhammad Hassan Bakshi stated, “We are receiving calls from Iranian and Dubai-based numbers, demanding up to Rs50 million in extortion.” He added, “Those who refuse are shot at.”
Crimes are allegedly perpetrated by both local and international criminal networks. Abad has identified specific individuals they claim are involved in extortion and land grabbing. Despite registered cases, some alleged perpetrators remain at large, a point of significant frustration for the association. SindhNews.com notes that law enforcement’s response is under scrutiny.
Warning of Business Shutdown
The association’s patron-in-chief, Mohsin Sheikhani, appealed directly to the army chief for intervention, warning of economic collapse if the situation persists. Abad has submitted written complaints to national and provincial leadership, emphasizing that ensuring law and order is a constitutional obligation.
The potential shutdown of the real estate sector could have far-reaching economic consequences. Karachi’s contribution to national revenue, currently around 50%, could decline further. This situation threatens investments, tax collection, and overall economic stability in Pakistan.