Pakistan as an economy and political entity is in a mess. However, a handful of financially stable corporations do give some hope. But are they really up to it or is this just another political-business nexus?
It is sometimes rather baffling to think how the belief of a single man can transform the fate of millions, once and forever. Despite being an independent country for 64 years, Pakistan stands as one of those unique experiments in policy and geopolitics which well, still remains an experiment. If one wants to gauge the difference between this nation torn apart by whimsical fancies and India, then it would be advisable to flick through the data compiled by Center for Research & Security Studies based out of Islamabad in 2009. The independent think tank reveals that “the two Ambani brothers can buy 100% of every company listed on the Karachi Stock Exchange (KSE) and would still be left with $30 billion.” Further, the entire Pakistani produce of a year can be purchased by the four richest Indians with $60 billion still left over to spare!
However, while US drones continue to bombard the federally administered tribal areas of the beleaguered state, Mian Muhammad Mansha (Pakistan’s richest man with a net worth of $1 billion), Founder and Chairman of Nishat Group (one of Pakistan’s top five business houses) sits in his plush office based out of Lahore planning the future strategic orientation of his $5 billion empire. In fact, Nishat Group is the face of a coin which the world never attempts to notice. What started as a single textile mill in 1951 has now grown in to a conglomerate with interests in banking, textiles, cement, aviation and energy. Today, the group’s annual sales have surpassed Rs.2.2 billion and the corporate giant now employees a work force of 30,000.
A robust machinery on the face of a failed state gives rise to what is both a question and hope – are companies like Nishat Group Pakistan Inc.’s last hope? After all, at the end of the day, it is business which runs your economy (given you have a sturdy political structure in place). Nevertheless, it would be a futile effort to address this predicament without dwelling into the finer nuances of Pakistan’s unique genetic makeup. Since 1947, upheavals witnessed by Pakistan’s economy can be broadly broken into six definitive periods each lasting approximately a decade. The first one started with this country emerging on the world map and lasted till about 1958. This was a phase marred by issues which any newly formed state would face. Ayub Khan (apart from being Pakistan’s first ruthless dictator) was also a shrewed strategist. Aided by advisors from Harvard University, Pakistan was exposed to one of the most healthy cycles of economic development in the country’s short and chequered history. While agriculture grew at 4%, manufacturing took off at a phenomenal rate of 9% per annum. This had a direct impact on GDP which doubled to 6% from 3% in the 1950s. Astonishingly, by 1969, Pakistan was exporting more manufactured goods than Thailand, Malaysia and Indonesia put together.
However, while US drones continue to bombard the federally administered tribal areas of the beleaguered state, Mian Muhammad Mansha (Pakistan’s richest man with a net worth of $1 billion), Founder and Chairman of Nishat Group (one of Pakistan’s top five business houses) sits in his plush office based out of Lahore planning the future strategic orientation of his $5 billion empire. In fact, Nishat Group is the face of a coin which the world never attempts to notice. What started as a single textile mill in 1951 has now grown in to a conglomerate with interests in banking, textiles, cement, aviation and energy. Today, the group’s annual sales have surpassed Rs.2.2 billion and the corporate giant now employees a work force of 30,000.
A robust machinery on the face of a failed state gives rise to what is both a question and hope – are companies like Nishat Group Pakistan Inc.’s last hope? After all, at the end of the day, it is business which runs your economy (given you have a sturdy political structure in place). Nevertheless, it would be a futile effort to address this predicament without dwelling into the finer nuances of Pakistan’s unique genetic makeup. Since 1947, upheavals witnessed by Pakistan’s economy can be broadly broken into six definitive periods each lasting approximately a decade. The first one started with this country emerging on the world map and lasted till about 1958. This was a phase marred by issues which any newly formed state would face. Ayub Khan (apart from being Pakistan’s first ruthless dictator) was also a shrewed strategist. Aided by advisors from Harvard University, Pakistan was exposed to one of the most healthy cycles of economic development in the country’s short and chequered history. While agriculture grew at 4%, manufacturing took off at a phenomenal rate of 9% per annum. This had a direct impact on GDP which doubled to 6% from 3% in the 1950s. Astonishingly, by 1969, Pakistan was exporting more manufactured goods than Thailand, Malaysia and Indonesia put together.
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
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IIPM: Indian Institute of Planning and Management
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
IIPM Best B School India
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM's Management Consulting Arm-Planman Consulting
IIPM Prof. Arindam Chaudhuri on Internet Hooliganism
Arindam Chaudhuri: We need Hazare's leadership
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
