Pakistan police detain eight Sindh building authority officials after Karachi building collapse

Members of the media report from the ground near a five-storey residential building that collapsed on Friday, July 4, in Karachi, Pakistan July 7, 2025. (REUTERS)
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Updated 10 July 2025
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Pakistan police detain eight Sindh building authority officials after Karachi building collapse

  • Twenty-seven people died when dilapidated building in Lyari collapsed last Friday 
  • Incident exposes issue of unsafe housing in city home to over 20 million people

KARACHI: Eight officials of the Sindh Building Control Authority (SBCA) and the owners of a building that collapsed in Karachi last week have been detained in connection with the incident, Pakistani police said on Thursday. 

A five-story residential building, Fotan Mansion, collapsed last Friday around 10 am in the impoverished Lyari neighborhood of Karachi, trapping dozens under the rubble and prompting a large-scale rescue operation. Rescue officials recovered 27 bodies from the rubble after three days. 

The collapse of the dilapidated building once again exposed the persistent issue of unsafe and poorly regulated housing in Karachi, Pakistan’s most populous city, which is home to over 20 million people. The rapid urbanization and weak enforcement of building codes have put countless residents at risk.

“We have detained eight officials of the SBCA and the owners of the building in connection with the first information report regarding the building collapse in Lyari,” Senior Superintendent of Police (SSP) City Arif Aziz told Arab News. 

The complaint was registered under criminal sections covering public servant misconduct, negligence in building safety, unintentional death, intentional bodily harm and property damage. These offenses carry penalties ranging from fines and short-term imprisonment to financial compensation and long-term jail.

Sindh Chief Minister Murad Ali Shah suspended Director General SBCA Ishaque Khuhro and ordered an inquiry over the incident on Monday. 

He also directed the SBCA to carry out safety inspections of all buildings in the city. The Sindh government announced Rs1 million ($3,513) in compensation for the families of the 27 victims.

Many of the building’s occupants were members of the low-income Hindu minority community, and residents estimated that around 40 people were inside when the structure collapsed.

Fotan Mansion had been declared unsafe three years ago, according to the SBCA. This incident is the latest in a series of deadly building collapses in Karachi.

In February 2020, a five-story building in Rizvia Society collapsed, killing at least 27 people. The following month, another residential structure in Gulbahar came down, claiming 16 lives.

In June 2021, a three-story building in Malir collapsed, resulting in four deaths. Just last year, in August, a building collapse in Qur’angi killed at least three people.


IMF hails Pakistan privatization drive, calls PIA sale a ‘milestone’

Updated 10 January 2026
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IMF hails Pakistan privatization drive, calls PIA sale a ‘milestone’

  • Fund backs sale of national airline as key step in divesting loss-making state firms
  • IMF has long urged Islamabad to reduce fiscal burden posed by state-owned entities

KARACHI: The International Monetary Fund (IMF) on Saturday welcomed Pakistan’s privatization efforts, describing the sale of the country’s national airline to a private consortium last month as a milestone that could help advance the divestment of loss-making state-owned enterprises (SOEs).

The comments follow the government’s sale of a 75 percent stake in Pakistan International Airlines (PIA) to a consortium led by the Arif Habib Group for Rs 135 billion ($486 million) after several rounds of bidding in a competitive process, marking Islamabad’s second attempt to privatize the carrier after a failed effort a year earlier.

Between the two privatization attempts, PIA resumed flight operations to several international destinations after aviation authorities in the European Union and Britain lifted restrictions nearly five years after the airline was grounded following a deadly Airbus A320 crash in Karachi in 2020 that killed 97 people.

“We welcome the authorities’ privatization efforts and the completion of the PIA privatization process, which was a commitment under the EFF,” Mahir Binici, the IMF’s resident representative in Pakistan, said in response to an Arab News query, referring to the $7 billion Extended Fund Facility.

“This privatization represents a milestone within the authorities’ reform agenda, aimed at decreasing governmental involvement in commercial sectors and attracting investments to promote economic growth in Pakistan,” he added.

The IMF has long urged Islamabad to reduce the fiscal burden posed by loss-making state firms, which have weighed public finances for years and required repeated government bailouts. Beyond PIA, the government has signaled plans to restructure or sell stakes in additional SOEs as part of broader reforms under the IMF program.

Privatization also remains politically sensitive in Pakistan, with critics warning of job losses and concerns over national assets, while supporters argue private sector management could improve efficiency and service delivery in chronically underperforming entities.

Pakistan’s Cabinet Committee on State-Owned Enterprises said on Friday that SOEs recorded a net loss of Rs 122.9 billion ($442 million) in the 2024–25 fiscal year, compared with a net loss of Rs 30.6 billion ($110 million) in the previous year.