KARACHI: Real-estate developers have warned of suspending business activities in the city after January 15, 2026, alleging a sharp rise in extortion and harassment by organised criminal gangs. They said the deteriorating law and order situation has created fear among builders, developers, and the wider business community.
Read More: Karachi Extortion Threats Push Builders Toward Shutdown
The warning was issued by the Association of Builders and Developers (Abad) during a press conference on Wednesday. The concerns echo earlier alarms raised by the Korangi Association of Trade and Industry and the All City Traders Ittehad Association, which had urged authorities to ensure stronger security for traders and industrialists.
Former Association of Builders and Developers of Pakistan (ABAD) Chairman Mohsin Sheikhani said extortion threats are made via phone calls from Iran, with warnings of firing at sites if demands are not met within a week. #TOKReports #ABAD pic.twitter.com/amicjji2Vb
— Times of Karachi (@TOKCityOfLights) December 17, 2025
The Association of Builders and Developers (ABAD) has issued a one-month ultimatum to the government, warning that construction activities across Karachi will be shut down
Read More: https://t.co/Wp0wpSpHii pic.twitter.com/n8wQQBmKnE
— ProPakistani (@ProPakistaniPK) December 17, 2025
Abad office-bearers said criminal networks, operating both locally and from abroad, were systematically targeting businessmen through extortion calls, threats, and shooting incidents. According to Abad Chairman Muhammad Hassan Bakshi, extortion demands have surged over the past five months, with at least 10 association members formally reporting threats.
He claimed that callers using Iranian and Dubai-based numbers were demanding extortion amounts of up to Rs50 million. “Those who refuse are shot at. This is happening on the ground,” he said, adding that builders were living under constant fear.
Bakshi also named individuals he alleged were involved in extortion, land grabbing, and intimidation. He said threatening notes often carried the extortionists’ names, phone numbers, and bank details, yet effective action had not followed despite dozens of registered cases.
Abad patron-in-chief Mohsin Sheikhani said the situation had left the real estate sector with no option but to consider shutting down operations. He described law enforcement agencies as appearing helpless and appealed for federal intervention to prevent further economic damage.
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Senior member Syed Afzal Hameed termed the situation a conspiracy to undermine the economy and urged authorities to act swiftly. He warned that a collapse of the real estate sector would further reduce Karachi’s contribution to national revenue, remittances, and tax collection.