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

2. 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 19 th 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 implemented 2 Business Challenges in Sindh / Pakistan Historic Perspective

3. 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 Historic Perspective (continued)

4. 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 Business Challenges in Sindh / Pakistan Other Perspectives

5. 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 Other Perspectives (continued)

6. 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 Business Challenges in Sindh / Pakistan Challenges

7. 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 (continued)

8. 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 Business Challenges in Sindh / Pakistan Challenges (continued)

9. Governance Challenges in Pakistan: Past, Present and Future AGENDA 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 Business Challenges in Sindh / Pakistan Proposed AGENDA for CHANGE

10. Governance Challenges in Pakistan: Past, Present and Future AGENDA 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 Business Challenges in Sindh / Pakistan Proposed Next Steps