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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. Pre & Post Independence: Industrialization & Trade Muslim businessmen funded generously for Pakistan

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Business Challenges in Sindh / Pakistan

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  1. Business Challenges in Sindh / Pakistan Karachi Chamber of Commerce & Industry Nisar A. Memon August 23, 2005

  2. 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

  3. 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

  4. 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

  5. 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

  6. 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

  7. 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

  8. 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

  9. 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

  10. 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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