Business challenges in sindh pakistan
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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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