KARACHI: A local consultancy firm has taken an initiative to hold an awareness conference in the United Arab Emirates (UAE) in September to persuade overseas Pakistanis to utilize banking channels while sending money to their home country, confirmed its top official on Monday.
Dellsons Associates, a Karachi-based financial advisory company, will organize the event in collaboration with Pakistan’s diplomatic mission in the UAE and some of the leading commercial banks.
Remittances from overseas Pakistanis constitute a major source of earning for the country, though they have taken a substantial nosedive more recently.
“We plan to sensitize Pakistani diaspora about the importance of remitting their hard-earned money through official channels which have witnessed a drop in recent years,” Tufail Ahmed Khan, the CEO of the firm, told Arab News.
Khan informed that The Pakistan Remittance Summit will be held in Dubai on September 28, 2023, with the help of the Pakistan embassy and major commercial banks.
The South Asian country received $14.28 billion from Gulf Cooperation Council (GCC) countries in the last fiscal year as compared to $17.22 billion immediately before that. This accounted for a decline of 17 percent or $2.94 billion, according to the official statistics compiled by the State Bank of Pakistan (SBP).
More than half of the country’s remittances were sourced from GCC states during the outgoing financial year, with Saudi Arabia making the top contribution of $6.44 billion.
Pakistan has exported over 1.7 million workers to GCC, including one million to Saudi Arabia and 331,340 to the UAE between 2020 to July 2023, according to the Pakistan Bureau of Emigration & Overseas Employment.
Khan said the remittance inflow did not match the number of Pakistanis exported to the region during last couple of years.
“If these over a million Pakistanis merely remit an average of $100, which is around Rs30,000, per month through banking channels, the country can easily receive $100 million per month and $1.2 billion per year,” he pointed out.
The Dellsons Associates CEO added there was a huge potential above $100 million per month since an average Pakistani worker was earning 2,000 Dirham and Riyal per month.
He maintained the remittances from overseas Pakistanis could easily increase by an additional $5 billion per year, considering the upsurge in manpower exports to these countries.
Pakistan’s major chunk of remittance inflows is channelized through unofficial Hundi and Hawala networks which offer comparatively higher exchange rates and continue to thrive.
Based on the element of social trust, Hawala is an alternative remittance channel that exists outside of traditional banking system. In the Hundi system, an order is written by a person directing another to pay a certain sum of money to a person named in the order. The money received through these methods is not counted toward the country’s official remittances.
Khan acknowledged that unofficial channels were offering higher rates which are attractive for overseas workers, but he also hoped the event in Dubai would help create awareness about the importance of official channels and risks associated with the unofficial mechanisms.
Karachi survivor recounts ‘doomsday’ mall inferno as records show warnings ignored
Fire engulfed Karachi’s multi-story Gul Plaza on Jan. 17, killing at least 73 people
Survivors say escape was hampered by locked doors, poor ventilation, crowded corridors
Updated 8 sec ago
Reuters
REUTERS, KARACHI: Muhammad Imran did not take the fire seriously at first, thinking it was another small spark at the Karachi mall that would be quickly extinguished by fellow shop owners.
But smoke seeped through ducts and blackened the air in seconds. The lights went out soon after and phone flashlights turned useless, people could no longer see their own hands, he said.
Imran, who has diabetes and has undergone heart surgery, managed only a few steps before nearly giving up.
“It felt like doomsday,” he said. “I felt my lungs collapsing. I could not breathe.”
Rescue workers search for bodies among the rubble after a massive fire broke out at a shopping mall in Karachi on January 21, 2026. (AFP/File)
The blaze would rage for nearly two days and reduce Gul Plaza, a multi-story complex of 1,200 family-run shops selling children’s clothes, toys, crockery and household goods, to ash.
At least 67 people were killed, with 15 still missing and feared dead, police official Asad Ali Raza said, in the January 17 blaze, the Pakistani port city’s largest in over a decade.
Imran’s escape from the inferno, along with more than a dozen others who spoke to Reuters, was hampered by locked doors, poor ventilation, and crowded corridors. When they eventually got out, the survivors watched Gul Plaza crumble as rescue efforts faced delays and poor resources.
Police said the fire appeared to have started at an artificial flower shop and may have been caused by children playing with matches. They added that all but three of the 16 exits were locked, which was routine practice after 10 p.m.
Documents reviewed by Reuters showed Gul Plaza, located on a major artery in Karachi’s historic city center and built in the early 1980s, had violated building regulatory standards for over a decade, with authorities warning the situation was dire in the last review two years ago.
Gul Plaza’s management did not respond to repeated requests for comment.
Records from the provincial Sindh Building Control Authority showed court cases filed over Gul Plaza’s lack of safety compliance in 1992, 2015 and 2021, as well as records of unauthorized construction.
The files reviewed by Reuters do not detail the outcomes of those cases, including whether fines were imposed or whether violations were fully remedied. SBCA did not respond to queries on enforcement action taken.
A Nov. 27, 2023, survey by the fire department, covering more than 40 commercial buildings in the area, cited inadequate firefighting equipment, blocked escape routes, faulty alarms, poor emergency lighting and a lack of fire safety training for occupants and staff.
A follow-up audit by the fire department in January 2024 placed Gul Plaza among buildings that failed to meet regulations, with inspectors marking key safety categories, including access to firefighting equipment, alarm systems and electrical wiring conditions, as “unsatisfactory.”
Separately, documents describing inspections by Karachi’s Urban Search and Rescue teams in late 2023 and early 2024 that were reviewed by Reuters also showed Gul Plaza was among several markets and commercial buildings flagged for deficiencies in one or more fire safety categories.
“Young boys aged 12, 13, 14, they were coughing and fainted. I was trying to encourage them. Those young boys had almost given up,” Imran said.
Workers operate heavy machinery to remove rubble, following a massive fire that broke out in the Gul Plaza Shopping Mall in Karachi, Pakistan, January 20, 2026. (Reuters/File)
Others smashed doors and locks as they moved through the darkness, holding hands and forming human chains to avoid getting lost.
With no way down, they ran to the roof, where 70 people, including families and children, were trapped for nearly an hour, survivors said. The smoke was even worse there, funneled upward by the building’s design, making it impossible to see even the neighboring buildings.
Then the wind changed.
A sudden gust pushed the smoke aside, revealing Rimpa Plaza next door. Young men crossed first, found a broken ladder and began ferrying people across one by one, Imran said.
An ambulance from the Edhi Foundation charity was waiting on the other side.
Many survivors said the response by the fire brigade was delayed and inadequate. Imran and other shop owners said they had escaped from the building and watched Gul Plaza turn into a molten inferno as the first firefighters arrived.
“Light was gone and the doors were closed. Where could people go? The fire brigade came late,” Imran said.
The first emergency call came at 10:26 p.m. from a teenager, with two fire vehicles reaching the site within 10 minutes and classifying the blaze as a Grade 3 fire, “the highest category for an urban area,” said a provincial government spokesperson Sukhdev Assardas Hemnani.
A citywide emergency was declared by 10:45 pm, triggering the mobilization of resources from across Karachi, he said.
“As soon as the first call was received, two fire vehicles had reached the site within 9 minutes. At 10:45 we announced in fire brigade group that two fire vehicles were not sufficient classifying this is a Category 3 fire, “the highest category for an urban area,” he said.
Shopkeepers said the first engine soon ran out of water and left to refill but Hemnani said those allegations were inaccurate.
Rescue workers walk past a damaged building, following a massive fire that broke out in the Gul Plaza Shopping Mall in Karachi, Pakistan, January 22, 2026. (Reuters/File)
Firefighters used “water, foam, chemicals and sand,” he said, adding the blaze was difficult to control because the building contained more than 50 gas cylinders and flammable material such as perfumes, generator fuel and car batteries.
Many of the shops were stocked to the brim because of the holy month of Ramadan in February-March, Pakistan’s biggest shopping season.
The first fire truck was not delayed, Hemnani said, but later arrivals were slowed by heavy traffic on a busy Saturday night and a crowd of over 3,000 people that had gathered outside the mall.
The fire department did not respond to requests for comment.
Survivors said many of the missing were shop employees and traders who tried to help others escape — or went back inside looking for family members.
“We thought it was a small fire and will extinguish soon. But this is not understandable that it spread all over within 5, 10 minutes. This is not understandable how it engulfed all shops within 5 minutes,” said shop owner, Mohammad Amin, speaking at the site.
Several shopkeepers said the losses have scarred the market’s tightly knit community.
“All of this keeps replaying in front of my eyes. Those children, those shopkeepers who died, May Allah forgive them and raise their place in heaven. I cannot sleep. I still feel the bitter taste of toxic smoke in my mouth,” said Imran.