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Monday, April 29, 2024  
20 Shawwal 1445  

Karachi street vendors help economy with no legal status

Street vendors may appear to be a marginalized segment of the commercial market, but they contribute a significant 72 percent to the income generated in Karachi.
Photo /File
Photo /File

Street vendors who contribute a significant part to the economy in Karachi have no constant place to stay and earn.

Although, they are considered part of the informal economy but street vendors in Karachi often face encroachment operations without any notice.

Thousands of carts in Karachi operate regularly, in the markets, streets, roads, and other parts of the city, but most of them are considered illegal because they are occupying extra spaces, disturbing the traffic, and encroaching on public property.

These street carts have no legal space and do not fall under any economic legislation in Pakistan. The administration of the Karachi Metropolitan Department has the authority to remove them to provide space for traffic and other activities.

Research conducted by the Pakistan Institute of Development Economy in 2021, disclosed that in Karachi 72 percent of employees were working under the umbrella of an informal economy. The number proves that the economic hub not only generates income from industries or small businesses but street vendors also play a great role in creating revenue for the country.

Karachi’s district south is the biggest hub for hawkers where a large number of carts operate in front of shops, footpaths, parks, and open spaces.

In the same district, in Empress Market, the administration had conducted a mega operation on the order of the Supreme Court of Pakistan in 2018 when a large number of illegal spaces, shops, and other encroachments were demolished.

According to the data and news publications, more than two thousand shops were demolished in November 2018 in a bid to restore the market to its actual condition in accordance with the British era.

During that operation, thousands of carts had been removed from Saddar town, however, after four years since operation these carts are still operating and often KMC often tries to dismantle their activities.

As per data provided by the KMC anti-encroachment department stated that in compliance with the order of the Supreme Court and under the directives of the administrator Karachi, the department had removed 4,625 carts from district south from Nov. 5, 2018, till July 2023.

The data depicts that KMC had also removed 3877 thailas from District Central, 2951, and 1910 from District East and Korangi respectively.

In the last four and a half years, the anti-encroachment cell ejected 13,660 carts that were allegedly operating unlawfully.

Street vendors may appear to be a marginalized segment of the commercial market, but they contribute a significant 72 percent to the income generated in Karachi.

Additionally, they were reportedly making weekly or monthly payments to individuals allegedly associated with the KMC and other affiliated public offices.

Several street vendors, under the condition of anonymity, revealed that they make payments to avoid having their carts (‘thailas’) confiscated.

“During the month of Ramzan-ul-Mubarak, I used to take time off from work. However, when I returned to my business after Eid, I found myself knocking on the doors of different departments such as KMC, DMC, the police station, and others just to reclaim my cart,” a 61-year-old man who earns his livelihood by selling toffees and various items shared.

“Unfortunately, this process requires me to pay a certain amount about Rs500 to Rs2000 or more to get my cart back,” he said.

“Apart from these challenges, we also have to pay an additional amount of about Rs500 to 1000 per week to ensure that our ‘Thailas’ will remain in the same location. The frequent displacement and changes in destination have a detrimental impact on our already limited business.”

Meanwhile, some street vendors who set their stalls near Empress Market said they have not paid any amount to the police or other organizations as they have been working there for almost four generations.

Some claim that there are no laws for street vendors in Karachi, there are no specific spaces for them.

During the operation in Empress Market, many petitions were filed by street vendors in the Sindh High Court which directed the authorities to present the law regarding the matter if any.

Despite there are no clear laws for street vendors in Karachi, they exist in such large numbers that they need to be regularized not only for the country but also for their safety.

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