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JULY 2008

 

 

ISSUES:

 

 

 

 

 

The Proposed Densification of Karachi

 

From press reports, a number of emails and visits from fellow architects, I gather that the government of Sindh has decided to get the KBCA to revise its building byelaws and zoning regulations to increase Floor Area Ratios (or FAR as they are called) all over Karachi in general and in the business and commercial districts in particular. A report in the press also mentions that the Chief Minister favours the construction of even 100 storey buildings in Karachi!

 

In layman’s language FAR lays down the area one can construct on a plot of land. For example, if FAR is 1:6 then on 1,000 square yards one can construct six times the plot area (or 6,000 square yards) and the building can be any number of storeys, unless under the byelaws, there is a height restriction.

 

The reason that is being given for increasing FAR is that its increase will make investment in building and real estate more attractive. It is hoped that this step will also led to foreign investment and reverse the trend of a decline in the real estate and construction business. However, it has to be understood that the real reason for this decline has less to do with a low density FAR and more to do with political uncertainty, a looming economic crisis, lucrative opportunities in the UAE for real estate investments, and graft, corruption and complicated and time consuming procedures in getting building approvals.

 

Increasing FAR means the increasing of densities. It can be argued that Karachi is a low density sprawl as compared to other mega-cities, except for certain areas of Gulistan-e-Jauhar, Lyari Town and certain parts of Liaquatabad. The later two have high densities in complete violation of building byelaws and zoning regulations. It is also true that large low density decentralised cities, especially large ones like Karachi, have comparatively expensive to operate and difficult to manage transport systems and utilities. Also, transport systems in such cities are less likely to be efficient as compared to high density centralised cities.

 

An increase in density means an increase in the number of persons living or working per unit of area (which in our case is calculated per acre). This increase requires a corresponding increase in infrastructure in terms of water, sewage and electricity. It can be argued that this can be augmented overtime as has been done in many other cities of the world. However, it is difficult to understand how we will manage this given the financial and managerial constraints faced by our planning and implementation agencies and the absence of political will and a consensus between the different actors in our urban drama to overcome these constraints.

 

However, the increase in density means an increase in vehicular and pedestrian traffic and it requires additional road space and improved transport systems. The question therefore is how much more traffic can the existing road network in the areas which the KBCA wishes to densify take (if it all), before clogging them up completely? Also, can the existing transport system take care of the additional number of people that will move in and out of the densified areas or will they remain stranded on the roads for hours? If available data is to be believed (and there is no reason why it should not be). Karachi’s central business district (CBD) at present requires transport systems that can cater to at least 20,000 passengers per hour. This can only be provided by segregated light rail, metro or through bus rapid transit systems. At present, Karachi’s transport system in the CBD caters to no more than 3,000 to 4,000 persons per hour and is under increasing pressure. Therefore, increasing FAR has to be accompanied by the building of high capacity mass transit systems in the transport sector and improved traffic management. The provision of appropriate transport systems to cater to high densities will require at least a decade to plan and complete after decisions regarding them are taken.

 

Normally, questions related to densification and the nature of linkages it requires with transport and utilities are determined by an urban design exercise which takes place as part of the structure or development plan for the city. Such an exercise is carried out separately for different area. For Karachi’s commercial districts, this would require at least a year of work (after TOR have been developed and consultants appointed) and another six months of analysis and stakeholder consultation before byelaws can be framed and may be another few months before they become law. From the looks of it this process will not be followed and ad-hoc decisions will be taken as they have been taken in the past. It is therefore suggested that the increase in FAR that the politicians are seeking should be determined (if an urban design exercise is not politically possible) on the number of vehicles that an area can accommodate and the existing transport facilities of that area. These two things are not difficult to calculate and the city government has very competent planners and technocrats who are capable of doing this and more.

Since byelaws are being revised for the business districts as well, it is essential that at least 30 per cent or even more of all built up area should be reserved for residential accommodation. This is because of two reasons. One, it will reduce the use of cars and public transport if persons working in the area also live there. And two, the area will not die at night as it does today and in the process expensive infrastructure and utilities are not fully utilised.

 

Cities that have grown without proper urban design exercises and hence or without rational FAR controls during their periods of economic growth and investments, like Bangkok and Manila in the 80’s and 90’s, have immense traffic and transport related problems which even mass transit systems, building of scores of kilometres of expensive expressways and signal-free roads have not been able to overcome. Karachi must not be allowed to suffer such a fate. We still have time.

(By Arif Hasan, Dawn-7, 19/07/2008)

 

 

 

 

 

Shershah bridge reconstruction contract okayed: No action against ‘culprits’

 

Although the government has so far failed to penalise anyone for criminal negligence or culpability in last year’s collapse of Shershah Bridge, it has awarded a Rs274 million contract for the reconstruction of the structure.


The responsible parties have neither been identified nor prosecuted despite the completion of the inquiry into the September 1 incident, when the 70-metre Baldia loop of the bridge collapsed a mere 20 days after having been inaugurated by President Pervez Musharraf.


Meanwhile, the executive board of the National Highways Authority (NHA) recently approved a Rs274.33 million bid to start construction next month, said senior officials in the ministry of communications and sources close to the formalities.


“The approved bid was the lowest amongst those received in response to the tender issued by the NHA for the reconstruction of Shershah Bridge,” said a source. “The work is likely to start in the third week of August and should be completed within nine months, according to the terms of reference of the contract.”


The source informed Dawn that land near Paracha Mills was being acquired in line with the directives of the Sindh High Court at a total cost of Rs63 million, including expenses for the relocation of silos, and this sum had already been paid by the government. “The land was to be vacated and handed over to the NHA within 120 days of the payment being made, and more than 45 days have already elapsed since the sum was handed over,” he added.


Govt silent on inquiry findings

Over half a dozen people were killed when the Baldia loop collapsed, while dozens of others remained trapped in the mangled mass of concrete for over seven hours before being rescued. The tragedy also brought to a dead halt the Rs3.5 billion-plus Northern Bypass project.


Despite the gravity of the incident and its implications, the government has not made public the findings of experts deputed to investigate the reasons behind the collapse. While officials confirm that the ministry of communications has received the final report of the inquiry ordered by the president and the prime minister within hours of the tragedy, this has not been made public and the government appears very far from taking action against the responsible parties.


“We have received the report, and it does identify the quarters responsible for the tragedy,” said the secretary communications, Saifullah Khan Sherwani. “We are considering the findings and the action to be taken against the people or organisations involved. The government will decide whether or not to make the report public,” he told Dawn, refusing to elaborate on the government’s intentions. While he added that the inquiry report put most of the blame on a private consultant who finalised a faulty, geometrically inaccurate design for the structure, he could offer no justification about the delay in penalising the consultant.

 

Plea to involve the public

Independent construction and architecture experts believe that as a confidence building measure, the government must make the inquiry findings public.


“The report should be made public,” said architect and city planner Arif Hasan when approached by Dawn. “I could have commented on the issue if I had known what the findings were.” He suggested that the citizenry’s involvement during the finalisation of mega-projects would make the process more transparent, saying that “there should be public participation in even the appointment of consultants for major projects.” Aside from the government’s silence over the parties responsible for the collapse of Shershah Bridge’s Baldia loop, the imminent reconstruction of the structure is generally being viewed as a positive move, particularly by the business and industrial communities.


“Traffic to and from the industrial area became a big issue after the bridge collapse, and snarls became routine,” said Nazim F. Haji, the Sindh coordinator for the Peoples’ Business Forum which recently took up the issue with the ministry of communications. According to Mr Haji, the forum asked the ministry to direct the NHA to start immediate work on the temporary carpeting of the affected area, so that a proper diversionary road could be provided to mitigate inconvenience.

(By Imran Ayub, Dawn-17, 25/07/2008)

 

 

 

 

 

Traffic woes continue to plague motorists despite efforts

 

City District Government Karachi (CDGK) and the traffic police have taken measures to improve the traffic flow on a few important and busy thoroughfares in the city. The changes made on these roads have brought about some improvements in the traffic.


The CDGK has installed barricades on I. I. Chundrigar Road to resist the random turning of vehicles that cause traffic gridlocks. The traffic police have declared it a no-parking zone and to some extent, proper implementation is also being carried out. As a result, things have improved on this highly busy road. Gridlocks and jams used to be an everyday sight but proper planning and its enforcement have changed the situation.


Similarly, the traffic police and the CDGK have blocked the right turning on the Muhammad Ali Society intersection for vehicular traffic and made it signal-free for the traffic on Sharea Faisal. That also resulted in easing out the traffic congestion at this intersection.


Recently, the traffic police declared the road behind the Civil Hospital Karachi as one-way to ease out the traffic congestion on the same. However, it would be too early to comment if this exercise has produced better results.


The city government, Pakistan Steel (PS) and Karachi Port Trust (KPT) has also built several flyovers and underpasses that have helped in maintaining the traffic flow. It is commendable that these agencies have brought some improvement in the traffic situation of the metropolis but at the same time one should question them for ignoring the city’s outskirts where heavy vehicles cause severe traffic jams frequently. For example, a large number of commuters have to undergo hectic traffic jams on Mauripur Road, especially near the Gulbai Weigh Bridge. Traffic police is totally helpless at this point since heavy vehicles driven on this road cause hurdles for the traffic flow which at times takes hours to clear up. Despite being reported in local newspapers several times, no arrangements have been made to streamline the traffic flow.


Moving further on to Hawkes Bay Road, the situation becomes even worse due to the poor infrastructure and unavailability of policemen along the long stretch of the road. If a vehicle breaks down on the narrow road, it is easy to foresee that the resultant traffic jam on the narrow road would be a massive one.


Similarly, the uncontrolled movement of these heavy vehicles frequently causes prolonged traffic gridlocks at the Dawood Chowrangi in the Landhi Industrial Area. Due to the dilapidated condition of the main road beyond that round about, heavy vehicles frequently use the Dawood Chowrangi Railway Crossing Bridge instead of running through the industrial zone. The drivers bribe the policemen with Rs20 to Rs30 at the roundabout to let them change their route. The failures of the city government to provide them with proper infrastructure and the malpractices of traffic sergeants have both made the intersection a traffic nuisance.


The railway crossing bridge which is under maintenance at present has been damaged severely due to the movement of heavy vehicles. It is also worth mentioning here that last year a taxi driver died after a container fell off an unfit trailer on this very bridge which does not allow these heavy vehicles. The main reason why heavy vehicles choose to use the railway crossing bridge is that the civic authorities have not completed the construction of the bridge in the Bin Qasim industrial zone which leads to the Manzar Pump National Highway (the original route for heavy vehicles). These heavy vehicles play an important role in the economic activities of the city and then ultimately, the country. The companies operating in these areas pay high taxes, but even then the infrastructure has not improved to the desired level. As a result, these heavy vehicles have no option but to ply on roads and bridges that have not been built for them, or create traffic disorders due to the unavailability of truck stands and the dilapidated conditions of the roads.

(By Farooq Baloch, The News-19, 08/07/2008)

 

 

 

 

 

No check on activities of illegal hydrants

 

A large number of private hydrants operating illegally in various parts of the city are selling subsoil unhygienic water to the residents of water-deficient pockets while over three dozen hydrants using unauthorised connections from the KWSB water trunk mains are providing piped water to their clients.


The act of acquiring connections from water trunk mains on the part of the owners of these illegal hydrants not only amounted to water theft and damage to the major pipelines but was also posing a threat to the citizens’ health as the possibilities of contamination could not be ruled out owing to the sewage seeping into the trunk mains through their punctured portions from where the hydrants had acquired connections, well-placed sources in the water utility told Dawn.


Referring to a survey undertaken by the Karachi Water and Sewerage Board (KWSB), sources said that there were more than 80 illegal hydrants, which were selling subsoil unhygienic water to the residents of various water-starved localities mainly because they were situated near the embankments of both the Lyari and Malir rivers while around 40 hydrants hooked to trunk mains were operating at Manghopir, Landhi, Korangi and Sohrab Goth.


Most of the private hydrants doing boring water business are located at Pak Colony, Malir, Korangi, Orangi, Shershah and Baldia.


Admitting that owners of private tankers have managed to get unauthorised connections from different trunk mains allegedly in connivance with the relevant officials of the KWSB and the area police, sources said that these illegal hydrants were causing losses to the KWSB by damaging its trunk mains and stealing its water and on the other hand posing a risk to the health of those people whose localities were being supplied with water from these trunk mains.


They further said that the hydrants’ act of stealing water from the trunk mains also affected the normal pressure in the pipelines. “Despite the fact that the city’s water distribution system which is, on an average, 40 to 45-years-old and in an advanced stage of disrepair, is only pressurized for a few hours a day and the continuous pressurization and depressurization already often results in increased wear and tear on the pipes,” they said. They said that thousands of tankers drawing water from all these illegal hydrants were also causing extensive damage to the roads and on the other hand often found indulging in rash and negligent driving, resulting in fatal accidents.


Action planned

When asked about the measures taken by the water utility against these illegal hydrants, the sources said that since their previous attempts to close down all these illegal hydrants had not yielded results as they reappeared after some time, the authorities had now decided to select some sites for setting up its own police stations so that an effective action could be taken against them.


In this regard, they disclosed that the KWSB authorities would soon request the Sindh minister for local government to help the KWSB in getting permission from the provincial home department for the establishment of its owns police stations or police kiosks at all those places where illegal hydrants were operating.

(Dawn-18, 02/07/2008)

 

 

 

 

 

55,000 out of 160,000 immigrants in Pakistan registered in Karachi

 

Approximately 160,000 illegal immigrants, including their dependents, have been registered across Pakistan by the National Aliens Registration Authority (NARA). Out of these, 55,000 are in Karachi, NARA Additional Deputy Director Syed Nayab Hasan Zaidi told The News.


Unofficial estimates suggest that out of an estimated 3.35 million illegal immigrants in Pakistan, 1.88 million can be found in Karachi. These immigrants belong to 79 different countries, including Australia, Canada, China, France, Germany, Russia, Saudi Arabia, South Africa, Switzerland, the United States of America, the United Arab Emirates, and other countries in Asia and Africa.


A majority of them, however, are from Bangladesh. Out of a total of 48,000 illegal Bangladeshi immigrants in Pakistan, 46,000 are in Karachi alone.


Afghans form the second largest proportion of immigrants. Zaidi believes NARA is “an especially good thing” for Bangladeshis in particular. “If Bangladeshi immigrants get themselves registered, they will be allowed to apply for Pakistani nationality under the 1978 ordinance,” he said. Headed by the Minister of Interior, NARA was founded in 2000 to enable illegal immigrants to get themselves registered in the country. According to Zaidi, the rate of registering immigrants has gone up by 35 percent since February 2007.


Once immigrants are registered, they are issued an Alien Registration Card (ARC), allowing them to have their own bank accounts and conduct businesses and have the same wages as local people.


Zaidi went on to highlight the importance of collecting information on all illegal immigrants on record. If this is not done, illegal immigrants can, for example, use facilities such as electricity, water and sewerage connections, but without paying any taxes. Even more importantly, unregistered people involved in crime are impossible to track down.


This has reportedly happened in the past. Zaidi said that NARA was also attempting to register alien students at madressahs, but lamented the lack of cooperation on the part of madressah administrations, despite the fact that there an estimated 75 to 80 percent of the students there are illegal immigrants.

(By M. Zeeshan Azmat, The News-14, 3/07/2008)

 

 

 

 

 

Government will repent the privatization of KESC, says MD


The government needs to stabilize power tariffs for at least two to three years and focus on future power projects, utilizing coal reserves and exploring oil reserves, said former Senator Taj Haider, while addressing engineers and members of the civil society at a seminar on the “Power Crisis of Karachi and Its Solution”.


The Institute of Engineers, Pakistan (IEP), Karachi Centre, and the Institute of Electrical and Electronics Engineers, Pakistan (IEEEP), Karachi Centre jointly organized the seminar.


“We have enough nuclear fuel available in the country to export to foreign countries. Two of Pakistan’s provinces, Sindh and Balochistan, are abundant in natural gas, coal and oil and can fulfill the country’s energy needs for centuries, therefore we need to develop projects that we can operate on our own,” said Haider.


He said that the Sindh Coal Development Authority has been established within three months of the Pakistan Peoples Party’s government coming into power and informed the house that a suggestion has also been submitted to Prime Minister Yousuf Raza Gillani that since Sindh has huge oil, gas and coal reserves, there should be an independent energy authority to explore, use and export energy sources to neighboring countries, with the first priority being the export of coal to India.


Haider was critical of the use of Uninterruptible Power Supply (UPS) systems, stating that although these provide continuous power supply during hours of load shedding, they add an extra load on the Karachi Electric Supply Company (KESC) grid when being recharged. He requested industrialists of the city to establish coal- or gas-operated captive power generation plants at all industrial sites of the city, as it will help in overcoming the economic crisis and improve Pakistan’s ability to compete in the international market.


Talking to Daily Times, former Karachi Chamber of Commerce and Industry President Majeed Aziz said that the ongoing power crisis will not let up before 2009, as KESC is subject to no accountability. “The handover of KESC to a foreign company was a pre-planned move to keep the local private sector away from the power sector. However, the utility was sold out to foreign hands without ascertaining whether they were capable of running it. The foreign owners also sold out the company’s shares four times but the government turned a blind eye. When the situation spiraled out of control, they sold the shares to Abraj Capital, a good company, and I am positive that Abraj can improve the situation,” said Aziz. He said that the government has been sleeping for the past three years and only now has the National Electric Power Regulatory Authority asked KESC to submit a detailed report, within 7 days, on possible steps to improve the power situation. “However, the seven members appointed to the committee do not have the technical knowledge to resolve these issues,” claimed Aziz.


KESC Managing Director Tanzeem Hussein Naqvi said that the government will regret its decision to force the utility to bear heavy financial deficits, in order to create grounds for privatization. “I applied my past experience to control the escalating losses and replaced 170,000 faulty meters, gaining around Rs 5 billion,” said Naqvi.


IEP Chairman Sami Ashraf said that a dependable power supply is essential for economic growth. According to Ashraf, it is due to mismanagement and the lack of proper technical expertise, rather than lack of resources, that the KESC has obsolete and faulty power generation units and cited the example of the Hub Power Company (HUBCO) units which, although 12 years old, are operating smoothly. He also criticized KESC’s priority to operate power units through furnace oil, as oil prices are constantly fluctuating.


Wali Jan, an engineer, said that the government proposed a Rs 1 billion campaign to distribute energy savers throughout the country but the World Bank refused to loan the money. As it is, the campaign would have only saved 1.3 percent power, which is a minute amount. “Using private generators is not the solution as many factors have to be taken into account. Firstly, the cost of a 7.0 kVA generator is around Rs 90,000 and the fitting charges are around Rs 12,000. On top of that, the cost of petrol comes to around Rs 25 per KW/h, therefore, it will be much more beneficial if one contributed Rs 11,000 to KESC for commercial power supply as this will help the utility to overcome its financial crisis and consumers will enjoy continuous power supply,” said Jan.


IEEEP Chief Executive Engineer Tahir Saleem stressed the need for KESC to improve its power supply, as it was causing tremendous losses. He explained that the rectangular supply of voltage provokes a 20 percent increase in losses, while voltage with THDV causes 10 percent losses, transformer problems cause 10 to 15 percent losses, degradation of generators cause 10 percent and overloading of non-linear characteristics cause 30 percent losses.


Ahmed Kamran, a banker, said that the KESC has a lot of potential as a profit-making company. According to him, the utility has around 22,000 industrial, 425,000 commercial and 1.5 million domestic consumers. He also informed this correspondent that the increase in power demand is around 7 to 8 percent per year.


“In the past, federal governments summoned bankers to Islamabad and threatened them to provide the KESC with loans or face disconnection and reopening of tax files. However, bankers were able to threaten them back as the government has always been a defaulter of the KESC and if this news made its way into international financial newspapers, it would have been a great embarrassment for the government,” said Kamran.

(By Irfan Aligi, DailyTimes-B1, 25/07/2008)

 

 

 

 

 

Rupee’s plunge swells external debt by $5.4bn

 

Pakistan’s economy has to bear a $5.4 billion increase in external debt as a result of rupee’s depreciation against world’s major currencies. This came due to mismanagement on the part of government’s economic planners as they neither hedged the currency nor took risk management measures, The News has learnt. Due to this huge rise in liabilities, the country’s external debt during July-March 2007-08 increased to $44.6 billion. Interestingly, this huge increase was not because of increased borrowing from external sources but was due to negligence of the economic policy-makers. Ironically, the finance ministry’s Debt Office, established for risk management associated with government borrowing, has not adequate experts. The risk management side of the Debt Office is manned by two financial analysts and both reportedly lack expertise in the subject or exposure to financial markets.


The irony is that the economy has to absorb a double blow in the shape of rupee depreciation against the US dollar and the greenback losing value against world’s major currencies like Japanese yen, euro and others which multiplied the burden. Economic pundits believe that with one rupee appreciation in the US dollar, Pakistan’s external debt increases by Rs45 billion. It is interesting to note that during fiscal year 2007-08, the greenback appreciated against the rupee by more than seven rupees.


Dollar depreciation against major world currencies was also worsening the country’s debt position and piling up the stock of external debt in dollar terms.


Pakistan’s external debt is contracted and thus denominated in multiple currencies but for accounting purposes, it is reported in equivalent US dollars. Thus, shifts in cross exchange rates among various currencies, especially against the dollar, are translated into changes in the dollar value of the outstanding stock of external debt.


Though the government was experiencing a huge current account deficit and each month it was rising by more than a billion dollars and there was strong anticipation of rupee depreciation against major currencies, the government was unaware of its implications on the debt stock or made no efforts to manage it. During July-May 2007-08, the current account deficit stood at an all-time high of $13.38 billion (about 7.8 per cent of the GDP).


It is also interesting to note that the government was also noticing huge twin deficits (current and budget deficit) of the US economy and it was projected that the dollar would shed value against hard currencies like Japanese yen, euro, SDR and others.


On the other hand, economic managers of the government did not assess its impact on the local economy and especially on external payments and debt or had no experience to manage the hit on the economy.


In the inter-bank market, the rupee depreciated against the dollar by Rs7.69 or (12.67 per cent) for buying and selling at Rs68.40 and Rs68.45 as compared to the corresponding period last year when the dollar stood at Rs60.72 (buying) and Rs60.74 (selling).

 

In the open market, it depreciated by Rs7.65 (12.56 per cent) against the US dollar during the period under review at Rs68.55 and Rs68.70 against Rs60.90 and Rs60.99 in the last fiscal.


During July-March 2007-08, total disbursements amounted to $2.065 billion and repayment of principal was $878 million. The net impact of these two factors increased the stock of public and publicly guaranteed debt by $1.187 billion.


The rest of the net addition of $4.163 billion in the total addition in the external debt stock of $5.4 billion was the result of depreciation of the US dollar against hard currencies like Japanese yen, euro, SDR and others.


Pakistan benefited from the exchange rate fluctuations for many years in the past, particularly when major currencies were depreciating against the dollar. Unfortunately, in FY 2007-08, Pakistan was on the receiving end.


During these nine months, the US dollar depreciated against the Japanese yen, euro and SDR by 18.7 per cent, 14.9 per cent and 8.2 percent, respectively. Thus the exchange rate movements during the period have caused changes in the reported US dollar equivalent amount of $4.2 billion while net new disbursement impact was just $1.2 billion.


The outstanding stock in yen alone witnessed a rise of $2.2 billion because of massive appreciation of yen against the US dollar. The exchange rate variation in the euro cost an additional $915 million to the external debt.

(By Israr Khan, The News-15, 09/07/2008)