The Economic Genocide of Karachi
The Economic Genocide of Karachi
Majyd Aziz
Peaceful environment is vital for economic growth and national prosperity. Citizens need an assurance of quality of life and this is possible thru income generation, social and physical infrastructure, security and safety, and political stability in their locality. At the same time, foreign and domestic investors, business and industrial community, and banking and stock exchange clients and customers want solid surety that their investment would be safe and profitable.
Karachi is the largest city of Pakistan with an estimated population of around 20 million and has the largest informal sector as well as the largest number of home-based workers. It accounts for a lion’s share in Pakistan’s revenue generation by contributing about 68% (KCCI annual report 2010-11) or 65% (as per City District Government Karachi report) to the national exchequer. All national and international surveys, reports, and analyses confirm that Karachi is the mainstay of the Pakistani economy.
Karachi contributes about 55% to Pakistan's GDP, that is, about US$ 98 billion, projected to reach $130 billion by 2015 provided peace is restored in the city and suburbs. Of course, Karachi’s high share in GDP is due to its large industrial base. Karachi has 15,000 formal industrial units in its 5 industrial zones while there are 360 markets spread all over the city. It is estimated by this writer that the daily loss to the national GDP is Rs 2 billion for every hour that Karachi remains non-operational.
During the previous government’s tenure, the policies of Premier Shaukat Aziz encouraged substantial bullish activity at the Stock Exchanges. This led to a huge cash surplus that needed to be channelized to productive usage. At the same time Dubai witnessed a construction boom. Thus a formidable flight of capital was witnessed as billions of dollars were transferred thru Hundi and Hawala or thru couriers from Pakistan to UAE. This was done
Majyd Aziz
Peaceful environment is vital for economic growth and national prosperity. Citizens need an assurance of quality of life and this is possible thru income generation, social and physical infrastructure, security and safety, and political stability in their locality. At the same time, foreign and domestic investors, business and industrial community, and banking and stock exchange clients and customers want solid surety that their investment would be safe and profitable.
Karachi is the largest city of Pakistan with an estimated population of around 20 million and has the largest informal sector as well as the largest number of home-based workers. It accounts for a lion’s share in Pakistan’s revenue generation by contributing about 68% (KCCI annual report 2010-11) or 65% (as per City District Government Karachi report) to the national exchequer. All national and international surveys, reports, and analyses confirm that Karachi is the mainstay of the Pakistani economy.
Karachi contributes about 55% to Pakistan's GDP, that is, about US$ 98 billion, projected to reach $130 billion by 2015 provided peace is restored in the city and suburbs. Of course, Karachi’s high share in GDP is due to its large industrial base. Karachi has 15,000 formal industrial units in its 5 industrial zones while there are 360 markets spread all over the city. It is estimated by this writer that the daily loss to the national GDP is Rs 2 billion for every hour that Karachi remains non-operational.
During the previous government’s tenure, the policies of Premier Shaukat Aziz encouraged substantial bullish activity at the Stock Exchanges. This led to a huge cash surplus that needed to be channelized to productive usage. At the same time Dubai witnessed a construction boom. Thus a formidable flight of capital was witnessed as billions of dollars were transferred thru Hundi and Hawala or thru couriers from Pakistan to UAE. This was done