Economy of Karachi
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Karachi is the financial capital of Pakistan. It accounts for the lion's share of Pakistan's GDP and generates about 65% percent of the national revenue providing a Gross Metropolitan Product of $263 Billion and a GMP per capita of $21,917 rivaling Western European and American cities. Most of Pakistan's public and private banks have their head offices in Karachi. Besides banking and finance, Karachi also hosts the offices of foreign multinational corporations as well as corporations based in Pakistan. It is home to the largest stock exchange of Pakistan: the Karachi Stock Exchange.[1]. This financial boom helped Pakistan to achieve its ambitious goal of exceeding a seven per cent growth in GDP for the fiscal year 2004-05.
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[edit] Business Districts
Before there was only one business district in Karachi called I.I. Chundrigar Road (old M'Cleod Road) but now the businesses are shifting to Sharah-e-Faisal, Clifton and Defence. A reason of it attributes to the traffic congestion which makes it problematic to travel to the center of the city in a timely manner. Sharah-e-Faisal which some years ago depicted an isolated look is now fuming with high rise buildings, show rooms and institutions which prefer it because of its proximity to the Karachi Airport. Dozens of new manufacturing units are also coming up near the Pakistan Steel Mill. Farm businesses are well sprouted in the SuperHighway route. SITE Manghopir is the biggest industrial area of Pakistan with more than 4000 factories. New Industrial zones have come in the past like Landhi, Korangi, FB Area, North Karachi, Dhabeji and Port Qasim.
[edit] IT Trends
The recent trend of ICT (information and communications technology), electronic media and call centers has become a significant part of Karachi business hierarchy. Call centres for foreign companies have been targeted as a significant area of growth, with the government making efforts to reduce taxes by as much as 80 per cent in order to gain foreign investments in the IT sector.The city has also firmly established itself as the electronic media capital of the country as most Pakistan's Media Television Channels are headquartered here including CNBC Pakistan, ARY Digital, AAJ TV and GEO TV. They generate huge revenues for the city in advertising and provide jobs and entertainment. As a sign of the growing strength of the electronic media sector GEO TV is planning to start a further 10 channels and for this purpose is setting up a 50 acre studio in the city.
[edit] Industrial Revolution
Karachi also has a huge industrial base. There are large industrial estates on most of the fringes of the main city. The main industries are Textiles, Pharmaceuticals, Steel, and Automobiles. Apart from these, there are many cottage industries in the city as well. Karachi is also known as software outsourcing hub of Pakistan. It also has a rapidly flourishing Free Zone with an annual growth rate of nearly 6.5 per cent. An expo center has also been set up in Karachi and is now available to host many regional and International exhibitions.
Karachi is also home of major automobile manufacturing companies. Toyota is in the process of increasing production capacity to over 120,000 units per annum. Suzuki Motor Company is also located in Karachi. The manufacturing plant located in Bin Qasim has a production capacity of 50,000 vehicles per year. Among others Millat Tractors, Adam motors, HinoPak Buses and Trucks manufacturing plants are also located in Karachi
[edit] Banking Sector
The Sector which has reaped the benefits of industrialization in the real sense is the Banking and Insurance Sector in Karachi. One may see new branches of local and international banks all over Karachi. From bank to credit cards, paper money is becoming the order of the day in this city. Car loans from numerous banks have allowed the younger generation to go for the hot cars.
[edit] Transportation
Despite the growth and development of transport infrastructure elsewhere in the country Karachi remains the country's transport hub. Currently the city's 2 ports, Port of Karachi which is Pakistan's largest and Port Qasim, are central to nearly all shipping in Pakistan. The airport of Karachi, Jinnah International Airport, also known as Quaid-e-Azam International Airport]], is the largest & busiest airport in Pakistan and handles 10 million passengers a year. The airport also receives the largest number of foreign airlines, a total of 27 airlines fly to Jinnah International predominantly from the Middle East and South East Asia. All of Pakistan's airlines use Karachi as their Primary hub including Pakistan International Airlines, Aero Asia International, Airblue and Shaheen Air.
[edit] Fisheries
Karachi is the biggest fisheries hub in Pakistan. Fishery plays an important role in the Karachi's economy. It provides employment to about 300,000 fishermen directly. In addition, another 400,000 people are employed in ancillary industries. It is also a major source of export earning. The Karachi Fish Harbour and Korangi Fish Harbour are two major fish harbours in Karachi.
[edit] Resulting Problems
- Environmental Problems
Karachi is the center of all business activities. Thousands of Vehicles roll on the roads of Karachi. The City Administration is trying to introduce CNG Buses and Rickshaws in the city in the coming years.
- Industrial Pollution
- Social Problems
- Traffic woes
- Immigration
- Emergence of Slums
