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Business Challenges in Sindh / Pakistan. Karachi Chamber of Commerce & Industry Nisar A. Memon August 23, 2005. Business Challenges in Sindh / Pakistan Historic Perspective. Pre & Post Independence: Industrialization & Trade Muslim businessmen funded generously for Pakistan

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business challenges in sindh pakistan

Business Challenges in Sindh / Pakistan

Karachi Chamber of Commerce & Industry

Nisar A. Memon

August 23, 2005

business challenges in sindh pakistan historic perspective
Business Challenges in Sindh / PakistanHistoric Perspective
  • Pre & Post Independence: Industrialization & Trade
    • Muslim businessmen funded generously for Pakistan
    • Karachi as port city during pre-independence days
    • Karachi pioneered industrialization in post-independence era
    • Local entrepreneurs welcomed migration and investment
    • Karachi’s 19th Century Chamber became mother of all Chambers
    • In 60’s power shifts from Karachi to Islamabad
  • Disturbance of 1980’s & Post Oct 1999
    • Political events of 80’s and lack of infrastructure development:
      • Flight of capital from Karachi
      • Airlines moving out of Karachi to alternatives like Dubai
    • October 1999 political stability and economic recovery
      • Industry and Trade revives and Capital Market grows
      • President’s Rs 29B Karachi package implemented2
business challenges in sindh pakistan historic perspective continued
Business Challenges in Sindh / PakistanHistoric Perspective (continued)
  • Political & Social
    • Political leadership lacked business vision & suspicious of business
    • Business relationship with decision makers * 70’s: Breakdown in post nationalization * 80’s: Lack of focus * 90’s: Politicized interest * 2000: Professional
  • Government and Business Today
    • Chamber contacts revived with President in July 2005
    • Follow up commenced with Governor & Fed. Minister 3
business challenges in sindh pakistan other perspectives
Business Challenges in Sindh / PakistanOther Perspectives
  • ConstitutionalPreamble, Fundamental Rights & Principles of Policy
    • Article 9: No person shall be deprived of life or liberty
    • Article 18: Every citizen shall have the right to enter upon any lawful profession of trade, commerce & industry
    • Article 24: No person shall be deprived of his property, save in accordance with law4
business challenges in sindh pakistan other perspectives continued
Business Challenges in Sindh / PakistanOther Perspectives (continued)
  • Federal Budget
    • Chambers participation in the process: Research & Think Tanks
    • Preliminary Revenues June 2005: Contribution by Provinces and Cities & Analysis
      • Direct Taxes: 176 B o/w Karachi 84B, Isl 43B, Lahore 20B
      • Customs Duty: 115B o/w Karachi 93B, Lahore 14B, F’bad -1B
      • Sales Tax: 240B o/w Karachi 133B, Pindi 51B, Lhr 35B
      • Total Taxes: 584B o/w Karachi 320B, Lahore 70B, Pindi 71B, Islamabad 43B Sindh 58%, Punjab 36%, NWFP 4%, Baluchistan 2%
  • Infrastructure Investment
    • Public and Private sector
    • Performance of business v/s government departments 5
business challenges in sindh pakistan challenges
Business Challenges in Sindh / PakistanChallenges
  • National Economy
    • Sustain macro economic achievements
    • Strengthen micro economics
      • Poverty Alleviation Programs
      • Control Inflation & Price Hike
  • National Politics
    • Decency, free from coercions and state interference
  • Social Focus
    • Education, Health, Safe Drinking Water
  • Security
    • Free from terrorism and extremism6
business challenges in sindh pakistan challenges continued

Business Challenges in Sindh / PakistanChallenges (continued)

Business Challenges in Sindh / PakistanChallenges (continued)
  • Governance
    • Law and Order: Battas, thefts, kidnapping, political disruption
    • Infrastructure: Roads. Electricity, Gas, Water
    • Civic Facilities: Fire Brigade
    • Government support: Federal, Provincial & Local
    • Recognition: Institutional and not personal
  • Business
    • Stakeholders: Unity amongst stakeholders including legislative
    • Revive pioneer’s traditions: Social responsibility programs
    • Diversification: Agro Based
    • Opportunities: Outside &Alternate Energy – Solar, Wind
    • Planning Process 7
business challenges in sindh pakistan challenges continued1

Business Challenges in Sindh / PakistanChallenges (continued)

Business Challenges in Sindh / PakistanChallenges (continued)
  • International:
    • Agreements / WTO
    • Opportunities: Forums – WEF
    • Image
      • Child Labour
      • Quality
      • Industrial Waste
      • Disruption
      • Human Rights, Minorities & Women
  • Regional Demands & Routes:
    • Neighbors: India, Iran, China & Afghanistan8
governance challenges in pakistan past present and future agenda for change

Business Challenges in Sindh / PakistanProposed AGENDA for CHANGE

Governance Challenges in Pakistan: Past, Present and FutureAGENDA for CHANGE
  • Strengthen Chamber / Association Institutions
  • Integrate Karachi with Interior Sindh
  • Focus on Agro based Industries
  • Unite for Sindh’s Industrial & Trade growth
  • Zero tolerance for Corruption
  • Continue close relationship with President & PM
  • Liaise with Govt., Legislative, Educ. & Research
  • Participate in Planning and Execution
  • Institutionalize Social Welfare support
  • CAN we do it ???9
governance challenges in pakistan past present and future agenda for change1

Business Challenges in Sindh / PakistanProposed Next Steps

Governance Challenges in Pakistan: Past, Present and FutureAGENDA for CHANGE
  • Can we do it? YES, YES, YES
  • How?
    • Resolve by us all
    • Leadership in all areas
  • Who?
    • U: Committee of 3:
      • Present & Incoming KCCI Presidents + Siraj K.Teli
    • Government at all levels
      • LG, Provincial and Federal
    • UR Representatives:
      • Begin with …..Senator from Karachi & & & 10
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