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Redefining Pakistan’s Industrial Future: The Need for Industrial Parks in Karachi

Introduction

At the PropTech Convention ’24, Mr. Muhammad Patel, representing Patel Group, delivered an insightful speech on the challenges and future of industrial growth in Karachi. With 45 years of experience in real estate development and construction, Patel Group has played a crucial role in shaping Karachi’s urban landscape.

In his speech, Mr. Muhammad Patel highlighted how Karachi’s industrial sector, particularly small and medium enterprises (SMEs), has been operating without structured planning, leading to severe infrastructure challenges. He emphasized the urgent need for dedicated SME-focused industrial parks to address these growing concerns.

The Industrial Growth Challenge in Karachi

Over the past 40 years, Karachi’s population has surged from 10 million to nearly 30 million, but no master plan has been developed to accommodate this expansion. While large industries were allocated designated areas such as SITE Karachi, SITE Super Highway, and Korangi Industrial Area, there has been no structured planning for SMEs, which form a crucial part of the city’s industrial economy.

According to Mr. Muhammad Patel, SMEs in Pakistan contribute 20% to the GDP and 80% of non-agricultural employment. Despite their significant economic impact, SMEs lack proper industrial infrastructure, forcing them to operate within residential areas.

How SMEs Are Operating in Karachi

Mr. Muhammad Patel outlined how, in the absence of designated SME industrial zones, businesses have had to adapt and grow informally, leading to several urban challenges:

  1. Conversion of Residential Areas into SME Hubs
    • Many areas such as Korangi, North Karachi, and Baldia Town were originally designed for residential use.
    • Over time, industries grew alongside large factories, creating unplanned industrial clusters.
  2. Inadequate Infrastructure
    • Roads in these areas were never designed for industrial use, leading to rapid wear and tear.
    • No dedicated power, water, or waste management systems exist, making it difficult for SMEs to scale.
  3. Traffic and Logistics Issues
    • As SME activity increased, workers and businesses moved to areas like Gulshan and Gulistan-e-Jauhar.
    • The lack of formal industrial planning worsened traffic congestion and logistics management.

He pointed out that Pakistan has over 5 million SMEs, but Karachi still does not provide properly planned infrastructure to support these enterprises.

The Need for SME-Focused Industrial Parks

During his speech at PropTech Convention ’24, Mr. Muhammad Patel emphasized the importance of creating dedicated industrial parks for SMEs, stating that:

  • Large industries have designated spaces, but SMEs continue to operate in unstructured environments.
  • The government has not prioritized SME infrastructure, leaving businesses to struggle in informal zones.
  • Karachi’s economic future depends on structured SME growth, requiring proper planning and investment in industrial real estate.

To address these challenges, he stated that Patel Group decided to develop modern industrial parks tailored for SMEs.

Patel Group’s Vision: Modern Industrial Parks for SMEs

Recognizing the gap in industrial planning, Mr. Muhammad Patel announced that Patel Group is actively working on building industrial parks specifically for SMEs.

These industrial parks in Karachi will focus on:

  • Proper road infrastructure – Designed to handle industrial traffic and logistics.
  • Essential utilities – Dedicated power supply, water management, and waste disposal systems.
  • Secure, gated industrial zones – Organized layouts that separate residential and industrial activities.
  • Affordable industrial spaces – Allowing SMEs to operate efficiently without infrastructure limitations.

He stressed that this initiative is not just about real estate—it’s about reshaping Karachi’s industrial economy and ensuring sustainable business growth.

Conclusion: A Step Toward Sustainable Industrial Growth

In his PropTech Convention ’24 speech, Mr. Muhammad Patel highlighted that Karachi’s industrial sector cannot progress without structured planning for SMEs. The development of SME-focused industrial parks is a crucial step in solving:

  • Infrastructure deficiencies
  • Traffic congestion
  • Lack of planned industrial zones

Patel Group’s initiative will ensure that Karachi’s SMEs have the proper environment to grow, ultimately contributing to Pakistan’s economic future. As Karachi continues to expand, investing in sustainable industrial parks is the only way forward. The future of Karachi’s industrial growth begins with structured planning today.

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