Karachi braces for weekend rains as billions lost to drenches this week

Men push a truck through a flooded road during monsoon rain, as the outbreak of the coronavirus disease (COVID-19) continues, in Karachi on Aug. 25, 2020. (REUTERS)
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Updated 26 August 2020
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Karachi braces for weekend rains as billions lost to drenches this week

  • Losses from Tuesday's flooding estimated at Rs5 billion ($30 million), Karachi traders say
  • Met agency says floodwater in Karachi must be drained immediately to prevent further flooding on Saturday

KARACHI: Another spell of heavy rain is expected to lash the port city of Karachi on Saturday, Pakistan's meteorological department warned, as it called on the city's authorities to drain water from flooded neighborhoods to avoid further damage and casualties.

Rain-related incidents in the past few days killed dozens of people in the coastal metropolis of Sindh province, while streets, homes and factories were flooded with sewage water, causing losses of billions of rupees in the city where the drainage and sewage systems are outdated.

"There will be a gap of two days (in rains). If it is not utilized to drain out the water from the affected areas, a light to moderate spell on Saturday will drown them again," Sardar Sarfraz, chief metrological officer of the Pakistan Meteorological Department, told Arab News.

On Tuesday, he said, a record 345 millimeters of rainfall flooded most of the city.

As flooding brought operations at the city's industrial zones to a standstill, Karachi Chamber of Commerce and Industry (KCCI) president Agha Shahab Ahmed Khan said the government should declare the rains a national disaster to allow people to be compensated.

Shaikh Umar Rehan, president of the Korangi Association of Trade and Industry (KATI) told Arab News that work has been heavily disrupted at the city's factories which normally operate non-stop.

“The factories work round the clock, but on Tuesday, even one shift couldn’t be completed,” he said.

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

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According to Atiq Mir, president of the Karachi Traders Association, losses from damages to the markets in the old city area alone are estimated to be Rs1 billion.

"As trade volume is Rs4 billion per day, both direct and indirect losses make it Rs5 billion ($30 million). On Wednesday, as the markets could not open completely, the (trade) community will have to bear another Rs2.5 billion losses."

The Sindh government and the military say teams are on the ground to drain the water and rescue the affected.

“It has broken an 89-year record and it was continuously raining for eight hours but as soon as the rain stopped teams were on ground to clear the areas. Most of the city’s thoroughfares were cleared by the Tuesday evening. The entire Sindh government was in the field to supervise the relief work,” Sindh Labor Minister Saeed Ghani told Arab News.

He added that the problem will not be resolved within days.

The military's media wing said in a statement that relief and rescue efforts were underway in the heavily flooded Malir Nadi, Kohi Goth and Dur Muhammad Goth areas of the city.


Pakistan, global crypto exchange discuss modernizing digital payments, creating job prospects 

Updated 05 December 2025
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Pakistan, global crypto exchange discuss modernizing digital payments, creating job prospects 

  • Pakistani officials, Binance team discuss coordination between Islamabad, local banks and global exchanges
  • Pakistan has attempted to tap into growing crypto market to curb illicit transactions, improve oversight

ISLAMABAD: Pakistan’s finance officials and the team of a global cryptocurrency exchange on Friday held discussions aimed at modernizing the country’s digital payments system and building local talent pipelines to meet rising demand for blockchain and Web3 skills, the finance ministry said.

The development took place during a high-level meeting between Finance Minister Muhammad Aurangzeb, Pakistan Virtual Assets Regulatory Authority (PVARA) Chairman Bilal bin Saqib, domestic bank presidents and a Binance team led by Global CEO Richard Teng. The meeting was held to advance work on Pakistan’s National Digital Asset Framework, a regulatory setup to govern Pakistan’s digital assets.

Pakistan has been moving to regulate its fast-growing crypto and digital assets market by bringing virtual asset service providers (VASPs) under a formal licensing regime. Officials say the push is aimed at curbing illicit transactions, improving oversight, and encouraging innovation in blockchain-based financial services.

“Participants reviewed opportunities to modernize Pakistan’s digital payments landscape, noting that blockchain-based systems could significantly reduce costs from the country’s $38 billion annual remittance flows,” the finance ministry said in a statement. 

“Discussions also emphasized building local talent pipelines to meet rising global demand for blockchain and Web3 skills, creating high-value employment prospects for Pakistani youth.”

Blockchain is a type of digital database that is shared, transparent and tamper-resistant. Instead of being stored on one computer, the data is kept on a distributed network of computers, making it very hard to alter or hack.

Web3 refers to the next generation of the Internet built using blockchain, focusing on giving users more control over their data, identity and digital assets rather than big tech companies controlling it.

Participants of the meeting also discussed sovereign debt tokenization, which is the process of converting a country’s debt such as government bonds, into digital tokens on a blockchain, the ministry said. 

Aurangzeb called for close coordination between the government, domestic banks and global exchanges to modernize Pakistan’s payment landscape.

Participants of the meeting also discussed considering a “time-bound amnesty” to encourage users to move assets onto regulated platforms, stressing the need for stronger verifications and a risk-mitigation system.

Pakistan has attempted in recent months to tap into the country’s growing crypto market, crack down on money laundering and terror financing, and promote responsible innovation — a move analysts say could bring an estimated $25 billion in virtual assets into the tax net.

In September, Islamabad invited international crypto exchanges and other VASPs to apply for licenses to operate in the country, a step aimed at formalizing and regulating its fast-growing digital market.