Who Is Behind the New Wave of Extortion in Karachi?

Who Is Behind the New Wave of Extortion in Karachi?

Karachi, Pakistan’s economic hub, is once again grappling with a renewed wave of extortion threats, particularly in the Old City Area — the heart of its commercial activity. This area, home to decades-old marketplaces like Alam Cloth Market near Memon Mosque, is considered the economic engine of the city. When it thrives, the city moves; when it stalls, Karachi slows down.

A Marketplace Full of History and Commerce

Despite its name, the “Old City Area” hosts a vast range of businesses — from low-cost goods to high-end merchandise. Among these, Alam Cloth Market is one of the country’s major textile trading hubs.

There was a time when shopkeepers earned little but paid hefty amounts in extortion. Things changed after a major law enforcement operation in Karachi significantly weakened the influence of criminal gangs and extortionists. For a while, peace returned, and businesses flourished.

Threats Resurface: Extortion Notes and Bullets

In recent weeks, traders from Alam Cloth Market have once again begun receiving extortion notes and threatening messages accompanied by bullets. According to S.M. Alam, President of the Old City Traders’ Alliance, this alarming trend started about two weeks ago.

“Several traders received WhatsApp messages demanding Rs 1 to 2 million in extortion, with death threats if they refused,” he said.

The traders reported the matter to Kharadar Police Station, and a suspect has since been arrested. Preliminary investigations revealed that the messages were sent using SIM cards registered overseas. The accused was tracked down and apprehended in an injured condition.

S.M. Alam also recalled a 2013 incident when a hand grenade was thrown at him for refusing to pay extortion. “Back then, bodies used to fall on the streets. If timely action is not taken now, the situation could deteriorate again,” he warned.

Police Statement: Internal Information Leak Suspected

SHO Kharadar, Panhwar Kumar, stated that police have increased security in the area and advised traders to submit complete employee records. Authorities suspect that the extortionists are receiving information from insiders within the markets.

“This doesn’t appear to be a large, organized gang war,” he said. “It looks like a new, inexperienced group. One arrest has been made, and more arrests are expected soon. Traders will be fully protected.”

Demand for Rangers’ Involvement Resurfaces

Prominent trader leader Atiq Mir has called for restoring the active role of the Rangers, a paramilitary force that played a significant role in eliminating extortion from Karachi in the past.

He believes that while earlier gang wars sponsored extortion, now overseas actors are hiring local collaborators — often those who work within the markets or live nearby.

“These people know exactly which trader can afford to pay, who is vulnerable to threats, and even what time to call. In some cases, they tell traders where they are and who they’re with — even their children — which confirms that the information is coming from within,” he added.

According to Mir, not everyone is mentally strong enough to resist such threats. Many traders end up paying out of fear, which only emboldens the extortionists.

What Do the Numbers Say?

A report by AIG Operations presented to the IG Sindh revealed that in the current year:

• 118 cases of extortion were reported in Karachi.

• 44 of these were verified as genuine extortion cases.

• The remaining 74 were linked to business or personal disputes.

• Of the 44 real cases, 39 were resolved, marking an 87% success rate.

• 78 suspects were identified, 43 arrested, and 5 killed in police encounters.