Karachi’s industrial sector is facing a severe crisis as water shortages threaten the production of large factories in the Steel Mill and Port Qasim Industrial Area.

For the past month, industries have been struggling due to the suspension of water supply by the Karachi Water and Sewerage Board (KWSB), impacting several production units, including international auto manufacturers.

The issue arose from a financial dispute between Pakistan Steel Mills and the Water Board. The Water Board shut off the water supply to the industrial units in the area, citing outstanding debts owed by the Steel Mill, despite the steel company paying crores in water bills over the years.

Pakistan Steel has written to the KWSB, urging them to take over the water management system. However, the Water Board declined, pointing to the substantial debts owed by the Steel Mill.

The Federation of Pakistan Chambers of Commerce & Industry (FPCCI) and the Industrial Park Owners Association have raised alarm over the situation.

In letters to the Federal Minister of Industry and Production, they highlighted the severe impact on production and urged immediate action.

Chairman of the Industrial Park Owners Association, Zainul Abedin Shariq, emphasized that the dispute between the two entities has put the operations of many industries at risk.

According to the letter, the Steel Mill has continued to collect millions in ground rent and other dues from the industrial units, even as the water supply was cut. Despite these payments, the factories are being forced to halt production due to lack of water.

The Water Board administration has made it clear that no water will be provided until all outstanding dues are cleared by the Steel Mill. This has left several industries, especially in the auto sector, in a state of crisis, as the production lines come to a standstill.

The FPCCI has called on the federal government to intervene, as the standoff between the two organizations jeopardizes not only industrial output but also the livelihoods of many workers.