Karachi Chamber of Commerce

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
• Karachis 19th Century Chamber became mother of
  all Chambers
• In 60s power shifts from Karachi to Islamabad
• Disturbance of 1980s Post Oct 1999
• Political events of 80s 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
• Presidents Rs 29B Karachi package implemented
  2

3
Business Challenges in Sindh / PakistanHistoric
Perspective (continued)

• Political Social
• Political leadership lacked business vision
  suspicious of business
• Business relationship with decision makers
  70s Breakdown in post nationalization
  80s Lack of focus 90s 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

• Constitutional Preamble, 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 law
  4

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,
  Fbad -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 extremism 6

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 pioneers traditions Social
  responsibility programs
• Diversification Agro Based
• Opportunities Outside Alternate Energy
  Solar, Wind
• Planning Process 7

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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 Afghanistan 8

9
Governance Challenges in Pakistan Past, Present
and FutureAGENDA for CHANGE
Business Challenges in Sindh / PakistanProposed
AGENDA for CHANGE

• Strengthen Chamber / Association Institutions
• Integrate Karachi with Interior Sindh
• Focus on Agro based Industries
• Unite for Sindhs 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
Governance Challenges in Pakistan Past, Present
and FutureAGENDA for CHANGE
Business Challenges in Sindh / PakistanProposed
Next Steps

• 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
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