BE AN ECONOMIC ROLE MODEL

SYED FAZL-E-HAIDER
(feedback@pgeconomist.com)
July 11 - 17, 20
11

Karachi is the financial and commercial capital of Pakistan. It accounts for a lion's share of Pakistan's revenue generation.

Karachi generates 70 percent of the total national revenue (federal and provincial taxes, customs and surcharges), although a larger part than this amount accounts for as indirect tax contribution.

Karachi produces about 42 percent of value added in large scale manufacturing and 25 per cent of the GDP of Pakistan. In February 2007, the World Bank identified Karachi as the most business-friendly city in Pakistan.

Karachi is the nerve center of Pakistan's economy. The economic stagnation due to political anarchy, ethnic strife, and resultant military operation during late 80s and 90s led to efflux of industry from Karachi. Despite this severe shock, Karachi claims the highest per capita income in South Asia, with a GDP per capita greater than $8,000 today.

Most of Pakistan's public and private banks are headquartered on Karachi's I.I. Chundrigar Road, while most major foreign multinational corporations operating in Pakistan have their headquarters in Karachi.

The Karachi Stock Exchange is the largest stock exchange in Pakistan, and is considered by many economists to be one of the prime reasons for Pakistan's 8 percent GDP growth across 2005. During the 1960s, Karachi was seen as an economic role model around the world, and there was much praise for the way its economy was progressing.

Many countries sought to emulate Pakistan's economic planning strategy and one of them, South Korea, copied the city's second "Five-Year Plan" and World Financial Centre in Seoul was designed and modeled after Karachi.

Rapid industrialization in Karachi has led to various problems including environmental problems, pollution, traffic woes, and emergence of slums. Besides, there are a series of troubles branched out of political instability. Every political party as well as civil society would have to play their due role for peace in Karachi. Peace in Karachi means promotion of trade and industry and growth of Pakistan.

Cooperation and coordination of city district government, provincial and central governments, and public can only address the problems. Karachi is a vital part of national economy and social fabric. We can preserve the peace and trade activities in the city by contributing at all levels.

Karachi has several large industrial zones such as SITE, Korangi, Northern Bypass Industrial Zone, Bin Qasim and North Karachi located on the fringes of the main city. The primary areas are textiles, pharmaceuticals, steel, and automobiles. In addition, Karachi has a vibrant cottage industry and there is a rapidly flourishing Free Zone.

Karachi has branches of major motor companies such as BMW, Audi, Porsche, Mercedes, Rolls Royce, Ferrari, Land Rover, Rexton, Lexus, Chevrolet, Toyota, Honda, Dodge, General Motors, Hummer, Nissan, UD Nissan Diesel, Daihatsu, Suzuki, Kia, Mitsubishi, Hyundai, Daewoo, Isuzu, Renault, Bedford, FAW, Geely, Proton, Chery, several automotive companies of china as well as the Adam Motor Company and HinoPak.

Sine Karachi is mini Pakistan, we need to set aside our petty differences and strive for peace, brotherhood and harmony.