business Importance of karachi

Karachi is the financial and commercial capital of Pakistan; it accounts for a lion's share of Pakistan's revenue generation. It generates 70% of the total national revenue (federal and provincial taxes, customs and surcharges), Although a larger part than this amount account for as indirect tax contribution.[10] Karachi produces about 42 percent of value added in large scale manufacturing and 25% 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% GDP growth across 2005.[12] 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 is designed and modeled after Karachi.

Recently, Karachi has seen an expansion of information and communications technology and electronic media and has become the software outsourcing hub of Pakistan. 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 10% in order to gain foreign investments in the IT sector

Many of Pakistan’s independent television and radio channels are based in Karachi including world popular Business Plus, GEO TV, KTN,[17] Sindh TV,[18] CNBC Pakistan, Samaa TV, TV One, ARY Digital, Indus Television Network and Dawn News as well as several local stations.

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 with an annual growth rate of nearly 6.5%.

The Karachi Expo Centre hosts many regional and international exhibitions.

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.

There are many development projects proposed, approved and under construction in Karachi. Among projects of note, Emaar Properties is proposing to invest $43bn (£22.8bn) in Karachi to develop Bundal Island, which is a 12,000 acre (49 km²) island just off the coast of Karachi.[23] The Karachi Port Trust is planning a Rs. 20 billion, 1,947 feet (593 m) high Port Tower Complex on the Clifton shoreline. It will comprise a hotel, a shopping center, an exhibition center and a revolving restaurant with a viewing gallery offering a panoramic view of the coastline and the city.