Deadly Gul Plaza fire causes Rs100 billion in economic losses: report

A catastrophic fire that broke out at Gul Plaza in Karachi on January 17, 2026, has caused an estimated Rs100 billion in economic losses. The fire, which engulfed the multi-storey building, has left at least 26 people dead, dozens injured, and more than 60 missing, according to a news report. 

The blaze destroyed over 1,000 shops in a market known for serving low- and middle-income households, highlighting severe safety failures and regulatory lapses that have left the city’s infrastructure vulnerable to such disasters.

Experts point to systemic issues in building safety and oversight, while the fire’s economic toll continues to rise as traders face staggering losses.

While authorities point to a suspected electrical short circuit as the fire's cause, experts argue the disaster highlights deep-rooted failures in building safety and regulations. A health, safety, and environment organisation described the disaster as a "textbook case" of systemic negligence, emphasising that in Pakistan, safety measures are often seen as financial burdens rather than necessities, leading to unsafe structures like Gul Plaza, which was originally approved for 500 shops but housed nearly 1,400.

The organisation identified three critical levels of failure contributing to the tragedy. First, the government’s failure to conduct effective safety audits and enforce building codes. Second, the neglect by building owners and unions to implement basic safety measures, such as fire alarms and sprinklers. Third, the collapse of emergency response infrastructure, with delayed and inadequate firefighting efforts exacerbating the situation.

At the time of the fire, the entire complex relied on just 200 fireballs and 144 fire extinguishers, with one extinguisher for every ten shops, which indicates that Karachi’s emergency response capabilities are woefully under-equipped. Despite the city’s population of approximately 30 million, there are only 28 fire stations and 15 active fire trucks. 

International standards require 300 stations and 1,200 trucks. Response times are further delayed by poor road infrastructure and traffic congestion, leaving firefighting teams to arrive too late often.

The fire also highlighted severe gaps in enforcement. The Sindh Occupational Safety and Health (SOSH) Act 2017, which was intended to enforce strict safety audits, has seen little action, with corruption allowing buildings to bypass necessary safety checks. 

At Gul Plaza, 13 out of 16 gates were locked, hampering evacuation efforts during the first critical minutes of the fire. The lack of a trained Emergency Response Team (ERT) left the public to handle evacuations.

As the Sindh government declares the fire a "national tragedy" and offers Rs10 million in compensation to victims' families, experts are calling for comprehensive reforms. They advocate for a shift from individual shop-level safety to centralised, integrated safety systems, including smoke detection, power management, and coordinated firefighting strategies.