Karnak's citizens lead comfortable lives, and the cost of items and weapons are low thanks to the Fire Crystal, which is hooked up to an amplification machine created by Cid, extracting the powers of the Crystal.
Karnak is a strong country with a great armory, all thanks to the power of the Fire Crystal. When Cid discovers that the machine he created to enhance the power of the Crystals is overusing it, he tries to deactivate it, but is caught by the Karnak militia and put in jail. This encourages Queen Karnak to demand a wall to be built, blocking the way of any scholars from the Library of the Ancients that may follow Cid's example.
Later, the Karnak Meteorite falls near Tule. Bartz Klauser and the other Warriors of Light reach the country of Karnak via a warp device in the Walse Meteorite, that takes them directly to the Karnak Meteorite. From there, they head to the town of Karnak, where they are arrested, since a witness saw them leaving the alien rock.