Traders say Karachi plaza fire caused $54 million losses as search for bodies continues

Shopkeepers react as they rest on a pavement in the aftermath of a massive fire that broke out at a shopping mall in Karachi on January 20, 2026. (AFP)
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Updated 23 January 2026
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Traders say Karachi plaza fire caused $54 million losses as search for bodies continues

  • Authorities say at least 67 people died in January 17 blaze at Gul Plaza complex
  • Recovery teams search unstable debris, Sindh government announces compensation

ISLAMABAD/KARACHI: A deadly fire at a major shopping plaza in Pakistan’s largest city of Karachi has caused estimated losses of up to Rs15 billion ($53.6 million), a traders representative said this week, as authorities continue rescue and recovery operations and struggle to identify dozens of victims killed in the blaze.

The fire broke out on Jan. 17 at Gul Plaza, a densely packed commercial building in the heart of Karachi and home to over 1,200 shops, trapping workers and shoppers inside and burning for more than 24 hours before being brought under control. At least 67 people have been confirmed dead, officials say, while recovery teams remain at the site amid fears of further structural collapse.

Tanveer Pasta, president of the Gul Plaza Market Association, said all shops in the plaza were destroyed, estimating total losses at up to Rs15 billion ($53.6 million).

“There were big importers sitting here,” he told Arab News on Thursday. “Just three days before this fire, 31 [shipping] containers were unloaded.”




Rescue workers clear debris outside the charred shopping mall in Karachi on January 23, 2026 following a massive fire that broke out on January 17. (AFP)

Earlier this week, the Sindh government had announced compensation of Rs10 million ($35,720) for each person killed in the fire and said affected shopkeepers would also receive financial assistance.

Karachi Mayor Murtaza Wahab said the city administration remained focused on rescue operations and on handing over victims’ remains to their families as quickly as possible. His remarks came after he visited the homes of several victims, according to a statement from his office.

“Rescue personnel of the Karachi Metropolitan Corporation are still engaged in the rescue operation, while the administration is making every effort to hand over [remains] of the victims, loved ones to their families at the earliest,” Wahab was quoted as saying.

Identification has been significantly slowed by the condition of the bodies recovered from the site, Karachi Police Surgeon Dr. Summaiya Syed said.

Most remains were found in fragments, she said, complicating forensic identification and prolonging the process for families waiting for confirmation.




Rescue workers clear debris inside the charred shopping mall in Karachi on January 23, 2026 following a massive fire that broke out on January 17. (AFP)

Relatives of more than a dozen missing persons have remained near the destroyed plaza and at hospitals even after providing DNA samples. Some families have criticized what they describe as the slow pace of recovery and identification.

Wahab said the provincial government had committed to supporting affected families and rehabilitating victims.

“The Sindh government would also not sit back until the victims are fully rehabilitated and that all possible support would be provided [to them],” he said.

Authorities have not yet confirmed the cause of the fire. Police have said preliminary indications point to a possible electrical short circuit, though officials stress conclusions will only be drawn after investigations are completed.

Deadly fires are a recurring problem in Karachi, a city of more than 20 million people, where overcrowded markets, aging infrastructure, illegal construction and weak enforcement of safety regulations frequently contribute to disasters. Officials say a blaze of this scale is rare.


Police lodge case over Karachi mall blaze under mischief, negligence and murder clauses

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Police lodge case over Karachi mall blaze under mischief, negligence and murder clauses

  • The fire broke out at the densely packed Gul Plaza in the heart of Karachi on Jan. 17 and has so far claimed 71 lives
  • Traders have estimated losses at $53.6 million, while the government has announced $35,720 for family of each victim

ISLAMABAD: Police in Pakistan’s southern port city of Karachi have registered a case over a deadly blaze at Gul Blaza, which has so far claimed 71 lives, under mischief, negligence and murder clauses, a senior police official said on Saturday.

The fire broke out at the densely packed commercial complex in the heart of Karachi on Jan. 17, trapping workers and shoppers inside. It burnt for over 24 hours before being brought under control, leaving the building structurally unsafe.

Authorities have not yet confirmed the cause of the fire. Police said preliminary indications pointed to a possible electrical short circuit, though officials stress conclusions will only be drawn after investigations are completed.

A week after the incident, police have registered the first information report (FIR) of the incident under sections 427, 436, 337-H (i) and 322 of the Pakistan Penal Code, according to Deputy Inspector General (DIG) Karachi South Asad Raza.

“The FIR of the Gul Plaza tragedy has been registered under the government’s prosecution, with case number 08/2026 at Nabi Bux police station,” Raza told Arab News.

Section 427 relates to mischief causing damage, 436 concerns mischief by fire or explosive substance, 337-H (i) details punishment for rash or negligent act, and 322 details punishment for homicide.

Deadly fires are a recurring problem in Karachi, a city of more than 20 million people, where overcrowded markets, aging infrastructure, illegal construction and weak enforcement of safety regulations frequently contribute to disasters. Officials say a blaze of this scale is rare.

Identification has been significantly slowed by the condition of the remains recovered from the site, Syed said, noting that many bodies were found in fragments, complicating DNA analysis and prolonging the process for families waiting for confirmation.

Traders have estimated total losses from the fire at up to Rs15 billion ($53.6 million). The Sindh provincial government this week announced compensation of Rs10 million ($35,720) for the family of each person killed in the blaze and said affected shopkeepers would also receive financial assistance.

Separately on Saturday, the Muttahida Qaumi Movement-Pakistan (MQM-P) party urged Prime Minister Shehbaz Sharif to constitute an inquiry commission to hold those accountable whose negligence led to the Gul Plaza inferno.

“Incapability, mistake, apathy, shamelessness, impudence — these should be exposed,” MQM-P’s Farooq Sattar said, calling for an “independent judicial inquiry” into the Gul Plaza tragedy to ensure the truth comes to light.

LAHORE HOTEL FIRE

Meanwhile, a fire erupted at a hotel in the eastern city of Lahore in Pakistan’s most populous Punjab province, according to Rescue 1122 service.

Six people were injured due to the blaze at the hotel in the city’s Gulberg area who were shifted to hospital.

“All necessary steps be taken to quickly control the fire, instructions,” Deputy Commissioner Muhammad Ali Aijaz directed authorities. “Immediate evacuation of all people from the building be ensured.”