JANG, GEO AND THE NEWS REVEAL

www.geo.tv/kaalabudget - www.thenews.com.pk/kaalabudget

DISCLAIMER: The report deals with illegal activities where documentation is sparse and not easily available for a host of obvious reasons. The research, conducted under dangerous circumstances, may not be completely accurate but it does give us a fairly credible picture of the amount of black money that is extorted by various mafias, often in connivance with functionaries of the state , from the hapless citizens of this megapolis. Great care was taken in compiling the data and assessing the credibility of our sources to try and make the report as unimpeachable as possible. We may have erred on the side of caution as the amounts could be much larger than reflected in the report. The figures quoted in the report are therefore estimates and not sensational guesstimates because they were collected and analysed by a team with expertise on the ground. The figures tell a sordid story of the power of the mafias and their nefarious tentacles. The tragic state of Karachi cannot be understood without comprehending the interplay of politics and a black economy that holds it hostage.

Kaala Budget of Karachi

2012/13

Kaala Budget
Karachi is in the grip of several mafias. These crime networks have taken advantage of the abdication of responsibility by the state and have insinuated themselves into virtually every aspect of the life of the citizens of this metropolis. They offer services, protection, illegal entertainment and instant justice. They tax the citizens and operate at times under the protection of political parties and with the connivance of rogue elements within the civil and military bureaucracy. They have set up sanctuaries, no-go areas and spheres of influence across the city and are now challenging the very writ of the state. In order to understand Karachis rapid descent into chaos and dysfunctionality and to make sense of the daily killings that blight the city, it is imperative to investigate the money trail that allows the mafias to flourish. It is estimated that a sum of over Rs. 830 million is extracted from the citizens of Karachi through, extortion, kidnapping for ransom, encroachments, land grabs, street crimes, electricity thefts, gambling dens, bribery and other nefarious means. This is the Kaala Budget a drain on the exchequer and a strain on the nerves of the inhabitants of the city. Much of what goes on is known but is rarely spoken about because of fear. This report attempts to quantify the extent to which the city is entangled in a web of deceit, terror and anxiety spun by gangsters. Karachi must find a voice and a resolve to combat this menace. Presenting these stark facts is the first step in that direction. There are broadly 15 categories of crime that are highlighted in this report. The report will endeavour to show the methodology employed by the mafia and the various kinds of threats, intimidation and harassment faced by the citizens. It will reveal who switched-off the lights in this, once bright city.

Kaala Budget of Karachi

2012/13

METHODOLOGY
OF REPORT
Every year in the National Assembly and the provincial assemblies, finance ministers present annual budgets. The black or informal budget is rarely mentioned nor has there been an attempt to document its enormity and insidious nature. Geo News decided to focus on this Kaala Budget, especially in Karachi. Precise data has been compiled from investigative reports undertaken by our reporters in the field. These reports are supplemented by surveys of experts, interviews with politicians, opinions of former judges, senior police officers (of DIG and IG rank), discussions with the victims of extortion, and observations of officials from the civil and military bureaucracy. Our reporters have also witnessed first-hand the operation that bleeds the citizens of this city hour by hour and day by day. The tentacles of terror and crime are spread far and wide. A parallel government exists based on coercion and crime and corruption.

Kaala Budget of Karachi

WHERE THE MONEY GOES
Vehicle

2012/13

PKR 828 MILLION DAILY

Kaala Budget of Karachi

2012/13

COMPONENTS
AND HEADS OF KAALA BUDGET
The major components of Kaala Budget are as follows:Qabza Mafia (Land Grabbing) Police Mafia Jowa Adda Pani Mafia Ransom Vehicle Theft Bijli Kunda Public Transport Bhatta Pathara / Thela Goods Movement Street Crime Hospitals Short-term Kidnapping Parking

LAND GRABBING
(Rs. 212 Million Daily)
Land is the most precious commodity in a city of 20 million inhabitants. Using muscle and the connivance of the bureaucracy, this mafia first encroaches on state and private land and then stakes a claim on it. Once occupied the land is rarely recovered and can go into litigation for generations. Very often land is acquired or leased without any payment or at nominal rates with help from officials. It is estimated that this land grab deprives Karachi of Rs. 212 million a day. On an average 30,000 acres of land in Karachi are lost to these land grabbers. Political clout and financial strength allows this mafia to operate with impunity. The National Highway, Malir, Gadap Town and the various entry and exit points of the city are the prime targets of this mafia which parades under the guise of builders, developers and real estate agents. The state ends up becoming real estate.

Kaala Budget of Karachi

2012/13

POLICE MAFIA
(Rs. 211 Million Daily)
Police Staff

32
Police Station

9 2

Beaters

168

Police Chowki

Kaala Budget of Karachi

Police Stations:

2012/13

The police has become totally contaminated by crime and are now viewed as part of the problem. The Sindh government allocates Rs. 39.30 billion (Rs. 3 billion a month) to the police force. This amount is not considered sufficient by the police who use their powers to extort money from the citizens using a host of methods. Arbitrary use of these powers have them an institution that is despised, reviled and not trusted. Honest policemen are transferred out, sidelined or eliminated. It is estimated that 317 police officers are involved in making the `Kaala budget and the chain of corruption extends from the Head Muharer to the SP. Their contribution to the Black Budget is approximately 1% daily. It amounts to Rs. 9 million daily. The auction of police stations is part of this nefarious operation.
Police Station SHO SO Head muhrer Zila SSP Divisional SP Number of Staff 112 60 112 5 19 Rate 1,500,000 500,000 150,000 5,000,000 1,500,000 Frequency 1 Monthly 1 Monthly 1 Monthly 1 Monthly 1 Monthly Total 168,000,000 34,500,000 16,800,000 25,000,000 28,500,000 272,800,000 Per Day 5,600,000 1,150,000 560,000 833,333 950,000 9,093,333

Police Chowkies:

There are 22 police chowkies or hubs located in different areas of Karachi. Ostensibly set up to prevent street crime, murders and extortion. Tragically these chowkies serve as collection points for the Kaala Budget. They contribute approximately 0.3 % daily to the Budget a whopping Rs. 2.2 million (Rs. 67 million monthly). Innocent citizens are routinely targeted and stripped of their assets by these law enforcers.
Police Chowkies: Incharge Number of Stations 224 Rate 300,000 Frequency 1 Monthly Total 67,200,000 Per Day 2,240,000

Police Staff:
Police Staff Police

It is commonly known that the 16000 police staff recruited in the service have to contribute approximately Rs. 32 million daily (4 % of the budget) to their superiors as thanksgiving for their jobs. The money naturally comes from the pockets of the citizens.
Number of Staff 16,000 Rate 2,000 Frequency 30 Days Total 960,000,000 Per Day 32,000,000

Beaters:

Beaters is the name given to middle-men who work on the behalf of their masters in the police service. These individuals help protect the reputation of senior police officers who are the beneficiaries of the crime. There are 336 Beaters on the pay-roll and they are known for their efficiency and ruthlessness. Plausible deniability is their creed. They contribute a 20% share in the Kaala Budget which amounts to a staggering 168 million daily (Rs. 5 billion a month)!
Beater Beater Number of Staff 336 Rate 500,000 Frequency 30 Days Total 5,040,000,000 Per Day 168,000,000

Kaala Budget of Karachi

2012/13

GAMBLING DENS
(Rs. 150 Million Daily)
Gambling, officially banned, is rampant in the city under protection of the mafia. It is estimated that over Rs. 150 million is turned over each day by 15,000 gambling dens and the narco trade each day. Pakistan hosts Asias largest gambling den in Ghas Mandi, where more than 5,000 dens operate. The law enforcing agencies are aware of this but turn a blind eye because they are paid off by the gambling mafia or are part of the operation. The vast variety of games played in this area are greater than those in Sri Lanka. Alongside gambling other illicit trades, i.e. prostitution, bootlegging, drugs, etc. are also managed by mafias. Who can bet that the police will look the other way for a price.

Kaala Budget of Karachi

2012/13

WATER MAFIA
(Rs. 100 Million Daily)
Water theft is the major source of black money in the city. Mafias control the source, transportation and delivery of water. In connivance with the bureaucracy and with protection from vested interests this mafia creates scarcity and steals from hydrants to make money. The tanker mafia operates with impunity and sells 272 million gallons to residents. A sum of Rs. 100 million daily leaks out of the national exchequer and quenches the thirst of the mafia!

VEHICLE THEFT
(Rs. 25 Million Daily)
Theft in the city is also at an all-time high, with an average of 40-50 motorcycles and 20-25 cars being lifted daily by the culprits which translates into an average daily loss of Rs. 25 million.

Kaala Budget of Karachi

2012/13

KIDNAPPING FOR RANSOM

(Rs. 50 Million Daily)
Kidnapping for ransom, like bank robbery, in Karachi has become the most lucrative crime for the past few years. Such crimes do not surface because of fear, and the fear of becoming well-known among the criminals. Traders and industrialists are compelled to pay millions of rupees daily on this count. Each kidnapping generates millions of rupees ransom. This money comprises about Rs. 50 million daily in the Kaala Budget. The port city having fame for its industries has now given birth to a unique yet frightening industry of kidnapping for ransom, and within few months this industry has generated huge money at the cost of life and peace in metropolis. According to the data available to the sources in Citizens Police Liaison Committee (CPLC), from January to June 2013 about 74 cases have been registered. While in year 2012 the kidnappings done for ransom money broke all the records as 132 cases were registered at various police stations of the city. It is pertinent to mention here that more than 50 percent of affectee's never complain or report the incident. They prefer to pay a huge amount for the safe recovery of their loved ones. The number of unreported cases is much higher than those being reported. Sources privy to the matter said that areas including Super Highway, Northern Bypass, Gulshan-e-Iqbal, Defence, Gulistan-e-Jauhar, Shah Latif Town, Gadap Town and Bin Qasim Town are most hit by this menace.

Kaala Budget of Karachi

2012/13

10

ELECTRICITY THEFT
(Kunda System)
(Rs. 15 Million Daily)
Power outages have crippled our economy and affected our quality of life. Power theft contributes to this. The so- called kunda system flourishes in Karachi in the open and is protected by mafias of various kinds. These parasite connections suck electricity from legal power users. It is also possible to get an illegal connection by paying an agreed amount to a KESC (Karachi Electric Supply Company) official. Electric meters are also tampered with in connivance with officials to deflate charges. It is estimated that over 450,000 illegal kundas are installed all over Karachi which steal Rs.15 million every day from the coffers of the government. Thieves pay upto Rs. 1,000 per kunda every month for free electricity.

PUBLIC TRANSPORT
(Rs. 14.8 Million Daily)
Twenty-five thousand buses, wagons and coaches pay Rs. 200 to 300 daily. A Gunda Tax of Rs. 40 daily is paid by 4000 Chingchi rickshaw owners, 20,000 autorickshaw drivers and 7,000, taxis. Overall Rs. 14.8 million is paid out to the mafia by these public transport operators.

Kaala Budget of Karachi

2012/13

11

(Bhatta Mafia)

PROTECTION RACKET

(Rs. 20 Million Daily)

Twenty million rupees are being collected as extortion from 550 small and big markets of the city. Often a person, who receives a threat loses his life in case of nonpayment or a delay in payment. Those who lead a lavish life out of this black budget are unknown, and the people keep mum afraid to reveal the unknown to save their lives.

(Pathara / Thela)
(Rs. 8.25 Million Daily)

ENCROACHMENTS

There are more than 55,000 roadside stalls in the bazaars of the city. Each stall pays approximately Rs. 100 to Rs. 200 daily to the beaters. About Rs. 8.25 million is collected daily through this practice and the one who pockets this money is not known.

Kaala Budget of Karachi

2012/13

12

HOSPITALS
(Rs. 3 Million Daily)
Over 20,000 patients visit public hospitals in Karachi on a daily basis. They are entitled to free medicines and consultancies. However, unless they pay Rs. 20 to the hospital staff as a bribe they are not given the prescribed medicines. Almost Rs. 3 million a day is paid out to this mafia which preys on the sick and desperate.

GOODS MOVEMENT
(Rs. 7.5 Million Daily)
Goods transport trucks, containers, and oil tankers each pay between Rs. 1,000 to Rs. 3,000 to the mafia which amounts to Rs. 7.5 million daily.

Kaala Budget of Karachi

2012/13

13

STREET CRIMES
(Rs. 5.2 Million Daily)
Street crime is rampant in the city and virtually everyone has a tale to tell about it. Street criminals loot around 125-150 mobile phones, cash, jewelry and other valuables worth Rs. 5.2 million daily.

SHORT-TERM KIDNAPPING
(Rs. 3 Million Daily)
Short-term kidnapping in which the abductees are held at gunpoint and driven around the city for several hours generates over Rs. 3 million. Approximately 10-15 such kidnappings are reported from the citys posh localities every day.

Kaala Budget of Karachi

2012/13

14

PARKING MAFIA
(Rs. 2.4 Million Daily)
The illegal parking charges system is rampant in various commercial areas of the metropolis as Karachi Metropolitan Corporation (KMC) has not taken any steps to stop them and an organized mafia is minting money. KMC has already built a parking Plaza near Empress Market worth billion of rupees to facilitate the citizens. But unfortunately, the Plaza is not in use because of bad governance and planning by KMC. It seems as if the illegal charging for parking and the plazas disuse go hand in hand. This mafia is mostly patronized by the traffic police; who also support the fake parking attendants. It is also claimed that the police takes huge bribes on a daily basis for vehicles which are never lifted from the demarcated no parking zones. The parking mafia has marked more than 500 parking areas in the city. Such parking lots generate Rs. 2.4 million daily by extending parking facilities to citizens illegally.

Mode Car Motorcycle

Number 40 60

Rate 30 20

Plots 500 500

Frequency 2 Daily 2 Daily

Total 1,200,000 1,200,000 2,400,000