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.


Pakistan deputy PM speaks with Iranian FM as Saudi Arabia intercepts missiles and drones

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Pakistan deputy PM speaks with Iranian FM as Saudi Arabia intercepts missiles and drones

  • Ishaq Dar expresses concern over evolving regional situation as both officials agree to remain in contact
  • Pakistan earlier reminded Tehran of its mutual defense pact with Saudi Arabia during diplomatic outreach

ISLAMABAD: Pakistan’s Deputy Prime Minister and Foreign Minister Ishaq Dar spoke with Iranian Foreign Minister Seyyed Abbas Araghchi on Friday amid escalating tensions in the Gulf, including recent missile and drone attacks targeting Saudi Arabia that were intercepted by the Kingdom’s air defenses.

The call comes as Islamabad remains in contact with both Tehran and Gulf states to prevent the widening Iran conflict from spilling further across the region, particularly after attempted strikes on Saudi territory, a sensitive development for Pakistan, which signed a mutual defense pact with the Kingdom last year.

Pakistan’s foreign ministry said Dar raised concerns about the evolving regional situation during the conversation.

“Deputy Prime Minister/Foreign Minister Senator Mohammad Ishaq Dar spoke this evening with the Foreign Minister of Iran, Seyyed Abbas Araghchi,” the ministry said in a statement.

“The DPM/FM expressed concern over the evolving regional situation. The two agreed to remain in touch on the developments,” it added.

The ministry did not share details of the conversation, though it came amid fast-moving developments in the region, with Saudi Arabia saying its air defenses intercepted multiple missiles and drones early on Friday.

Earlier this week, Prime Minister Shehbaz Sharif’s adviser on political affairs Rana Sanaullah said Pakistan was in contact with Iran to discourage attacks on Gulf countries and prevent misunderstandings.

“Such attacks should not be carried out from Iran’s side,” he told Geo TV.

Prior to that, the deputy prime minister told Pakistan’s Senate that Islamabad had engaged both Iran and Saudi Arabia at the outset of Iran’s retaliation in the region, reminding Tehran of its defense agreement with Saudi Arabia and conveying assurances from Riyadh that Saudi territory would not be used against Iran.

Pakistan says its administration is striving to end the conflict, though the United States-Israeli strikes on Iran, which triggered the war and led to its spillover, have only intensified.

Iranian President Masoud Pezeshkian said on Friday some countries had begun mediation efforts but insisted Tehran would defend its sovereignty.

Meanwhile, US President Donald Trump has called for Iran’s “unconditional surrender” on his Truth Social platform as the confrontation shows little sign of easing.