About Karachi City

Karachi is the largest city, main seaport and the financial capital of Pakistan and the capital of the province of Sindh. It is the 20th largest city of the world in terms of metropolitan population, and is Pakistan's premier centre of banking, industry, and trade. Karachi is also the home of Pakistan's largest corporations that are involved in textiles, shipping, automotive industry, entertainment, arts, fashion, advertising, publishing, software development and medical research. It also serves as a major hub of higher education in South Asia, and the wider Islamic World . Karachi has been ranked as a Beta world city, as of 2009.

Karachi enjoys its prominent position due to its geographical location on a bay, making it the financial capital of the country. It is one of the fastest growing cities in the world. It was the original capital of Pakistan until the construction of Islamabad, and is the location of the Port of Karachi, Port Bin Qasim, one of the region's largest and busiest ports. The city's population has increased dramatically at the time of Partition when hundreds of thousands of refugees from India came to settle in the city. Since independence from Britain in 1947, the city's vibrant economy has attracted migrants from all over Pakistan, surrounding countries such as Iran, Tajikistan, Myanmar, Sri Lanka, China, Bangladesh, Afghanistan and further beyond. Despite a history of political turmoil, the city continues to attract those seeking prosperity and has shown consistent growth .

Karachi city is spread over 3,530 km² (2,193 sq mi) in area. It is locally known as the "City of Lights" for its liveliness, and the "City of the Quaid", having been the birth and burial place of Quaid-e-Azam Muhammad Ali Jinnah, the founder of Pakistan, who also made the city his home after Pakistan's independence.

Architecture

Karachi has a rich collection of buildings and structures of various architectural styles. The downtown district of Saddar contains a rich collection of early 20th century architecture, ranging in style from neo-classical KPT building to the Sindh High Court Building. During the British rule, Britishers wanted to model their Empire along the lines of ancient Rome and classical architecture was considered most appropriate for built monuments of the Raj.

Karachi acquired its first neo-Gothic or Indo-Gothic building when Frere Hall, Empress Market and St. Patrick's Cathedral were completed. English Tudor style was introduced in Karachi Gymkhana and the Boat Club. Italian Renaissance was very popular and was the language for St. Joseph's Convent (1870) and the Sindh Club (1883). Classical style made a comeback in the late nineteenth century as seen in Lady Dufferin Hospital (1898) and the Cantonment Railway station. While 'Italianate' buildings remained poplar, an eclectic blend termed Indo-Saracenic or Anglo-Mughal also began to emerge in some locations.

(1925) and The local mercantile community began acquiring impressive mercantile structures. Zaibunnisa Street in Saddar area (known as Elphinstone Street in British days) is an example where the mercantile groups adopted the 'Italianate' and Indo-Saracenic style to demonstrate their familiarity with western culture and their own. The Hindu GymkhanaMohatta Palace are the example of Mughal revival buildings. The Sindh Wildlife Conservation Building, located in Saddar, served as a Freemasonic Lodge until the time it was taken over by the government. However, there are talks of it being taken away from this custody and being renovated and the Lodge being preserved with its original woodwork ad ornate wooden staircase.

In recent years, a large number of architecturally distinctive, even eccentric, buildings have sprung up throughout Karachi. Notable examples of contemporary architecture include the PSO Headquarter building and the FTC Building. The city has numerous examples of modern Islamic architecture, including the Aga Khan University hospital, Tooba Mosque, Faran Mosque, Bait-ul Mukarram Mosque and Quaid's Mausoleum. One of the unique cultural elements of Karachi is that the residences, which are two- or three-story townhouses, are built with the front yard protected by a high brick wall. I. I. Chundrigar Road displays a wide range of supertall buildings. The most prominent examples include the Habib Bank Plaza, PRC Towers and the MCB Tower which is the tallest skyscraper in Pakistan. Perhaps one of the most spectacular buildings of modern times, Port Tower Complex, a supertall skyscraper is proposed in the Clifton District of the metropolis. At 593 metres, the building will comprise a hotel, a shopping centre, an exhibition centre and a revolving restaurant with a viewing gallery offering a panoramic view of the coastline and the city.

History of Karachi City

The area of Karachi was known to the ancient Greeks by many names: Krokola, the place where Alexander the Great camped to prepare a fleet for Babylonia after his campaign in the Indus valley; 'Morontobara' (probably Manora island near Karachi harbour), from where Alexander's admiral Nearchus set sail; and Barbarikon, a port of the Indo-Greek Bactrian kingdom. It was later known to the Arabs as Debal, the starting point for Muhammad bin Qasim and his army in 712 CE. Karachi was founded as "Kolachi" by Baloch tribes from Balochistan and Makran who established a small fishing community in the area. Descendants of the original community still live in the area on the small island of Abdullah Goth, which is located near the Karachi Port. The original name "Kolachi" also survives in the name of a well-known Karachi locality named "Mai Kolachi." The city was visited by Ottoman Admiral Sidi Ali Reis in 1550s and mentioned in his book Mirat ul Memalik (The Mirror of Countries), 1557 CE. The present city started life as a fishing settlement when a Balochi fisherwoman called Mai Kolachi took up residence and started a family. The village that later grew out of this settlement was known as Kolachi-jo-Goth (Village of Kolachi in Sindhi). By the late 1700s the village was trading across the Arabian Sea with Muscat and the Persian Gulf region. A small fort was constructed for its protection, armed with cannons imported from Muscat. The fort had two main gateways: one facing the sea, known as Kharra Darwaaza (Brackish Gate) (Kharadar)and the other facing the Lyari River known as the Meet'ha Darwaaza (Sweet Gate) (Mithadar). The location of these gates correspond to the modern areas of Kharadar.

After sending a couple of exploratory missions to the area, the British East India Company conquered the town when an American ship the Wellesley anchored off Manora island on 1 February 1839. Two days later the little fort surrendered without a shot being fired on either side. The town was later annexed to the British Indian Empire when Sindh was conquered by Charles James Napier in Battle of Miani on 17 February 1843. On his departure in 1847, he is said to have remarked, "Would that I could come again to see you in your grandeur!". Karachi was made the capital of Sindh in the 1840s. On Napier's departure it was added along with the rest of Sindh to the Bombay Presidency, a move that caused considerable resentment among the native Sindhis. The British realised the importance of the city as a military cantonment and as a port for exporting the produce of the Indus River basin, and rapidly developed its harbour for shipping. The foundations of a city municipal government were laid down and infrastructure development was undertaken. New businesses started opening up and the population of the town began rising rapidly. The arrival of troops of the Kumpany Bahadur in 1839 spawned the foundation of the new section, the military cantonment. The cantonment formed the basis of the 'white' city where the Indians were not allowed free access. The 'white' town was modeled after English industrial parent-cities where work and residential spaces were separated, as were residential from recreational places. Karachi was divided into two major poles. The 'black' town in the northwest, now enlarged to accommodate the burgeoning Indian mercantile population. In 1857, the First Indian War for Independence broke out in the subcontinent and the 21st Native Infantry stationed in Karachi declared allegiance to rebels, joining their cause on 10 September 1857. Nevertheless, the British were able to quickly reassert control over Karachi and defeat the uprising.

In 1864, the first telegraphic message was sent from India to England when a direct telegraph connection was laid between Karachi and London.In 1878, the city was connected to the rest of British India by rail. Public building projects such as Frere Hall (1865) and the Empress Market (1890) were undertaken. In 1876, Muhammad Ali Jinnah, the founder of Pakistan, was born in the city, which by now had become a bustling city with mosques, churches, courthouses, markets, paved streets and a magnificent harbour. By 1899 Karachi had become the largest wheat exporting port in the east. The population of the city was about 105,000 inhabitants by the end of the 19th century, with a cosmopolitan mix of Muslims, Hindus, Zoroastrians, Christians and Jews. There were also various linguistic groups such as Urdu speakers, Punjabis as well as Pashtuns and Balochis. The multi-ethnic mix can be imagined from the fact that there are more Pashtuns in Karachi than in any city of the North-West Frontier Province,In addition to local groups there were also immigrants of Persian, Lebanese, and European background. By the turn of the century, the city faced street congestion, which led to South West Asia's first tramway system being laid down in 1900. British colonialists embarked on a number of public works of sanitation and transportation - such as gravel paved streets, proper drains, street sweepers, and a network of trams and horse-drawn trolleys. Colonial administrators also set up military camps, a European inhabited quarter, and organised marketplaces, of which the Empress Market is most notable.

By the time the new country of Pakistan was formed in 1947, after which the majority of Karachi's Hindu population were forced to flee to India, Karachi had become a bustling metropolis with beautiful classical and colonial European styled buildings lining the city’s thoroughfares. Karachi was chosen as the capital of Pakistan, which at the time also included modern day Bangladesh, a region located more than 1,000 km away and not physically connected to Pakistan. In 1947, Karachi was the focus for settlement by Muslim immigrants from India, who drastically expanded the city's population and transformed the demographics and economy. In 1958, the capital of Pakistan was moved from Karachi to Rawalpindi and then to the newly built Islamabad in 1960. This marked the start of a long period of decline in the city, marked by a lack of development.

The 1970s saw major labour struggles in Karachi's industrial estates. The 1980s and 1990s saw an influx of refugees from the Afghan war into Karachi, they were also followed in smaller numbers by refugees escaping from Iran. Political tensions between the Muhajir groups (descendants of migrants from the partition era) and otherative n groups (eg. Sindhis, Punjabis Pashtos, and others) also erupted and the city was wracked with political and racial violence.The largest urban population of Pashtuns is interestingly found in the city of Karachi, The period from 1992 to 1994 is regarded as the bloodiest period in the history of the city, when the Army commenced its Operation Clean-up against the Mohajir Qaumi Movement. Most of these tensions have now simmered down. Today, Karachi continues to be an important financial and industrial centre and handles most of the overseas trade of Pakistan and the central Asian countries. It accounts for lions share of the GDP of Pakistan and a large proportion of the country's white collar workers.

Karachi Stock Exchange

Karachi Stock Exchange 100 Index (KSE-100 Index) is a stock index acting as a benchmark to compare prices on the Karachi Stock Exchange (KSE) over a period of time. In determining representative compaines to compute the index on, companies with the highest market capitalization are selected. However, to ensure full market representation, the company with the highest market capitalization from each sector is also included.

History

The index was launched in late 1991 with a base of 1,000 points. By 2001, it had grown to 1,770 points. By 2005, it had skyrocketed to 9,989 points. It then reached a peak of 12,285 in February 2007. KSE-100 index touched the highest ever benchmark of 14,814 points on December 26, 2007, a day before the assassination of former Prime Minister Benazir Bhutto, when the index nosedived. The index recovered quickly in 2008, reaching new highs near 15,500 in April. However, by November 22, 2008 during the global financial crisis of 2008 it had fallen to 9,187.

Top 30 KSE 100 Index companies

The following is a list of 30 companies with the highest market capitalization volume and their respective weightages in the index and account for over 80% of the KSE index as of February 20, 2008:

Number	Company Name	Weightage (%)	Market Capitalization (PKR)
1	OGDCL	14.14	550,948,930,000
2	MCB	7.17	279,583,150,000
3	National Bank of Pakistan	5.43	211,726,900,000
4	Pakistan Petroleum	5.06	197,201,080,000
5	Standard Chartered Bank	4.41	171,704,800,000
6	PTCL	4.28	166,810,800,000
7	United Bank Limited	4.13	161,025,160,000
8	Jahangir Siddiqui & Company	2.66	103,600,000,000
9	Pakistan State Oil	2.08	81,034,440,000
10	Allied Bank Limited	2.01	78,371,670,000
11	Nestlé Pakistan	1.93	75,280,250,000
12	Pakistan Oilfields	1.71	66,824,220,000
13	Fauji Fertilizer Company	1.68	65,607,390,000
14	ABN AMRO	1.63	63,666,370,000.
15	Engro Chemical	1.45	56,492,990,000
16	Arif Habib Securities	1.40	54,660,000,000
17	NIB Bank	1.27	49,320,250,000
18	Kot Addu Power Company	1.19	46,565,400,000
19	EFU General Insurance	1.16	45,300,000,000
20	Bank of Punjab	1.13	43,869,030,000
21	Fauji Fertilizer Bin Qasim	1.06	41,474,480,000
22	Bank Alfalah	1.03	39,975,000,000
23	Adamjee Insurance	1.01	39,258,300,000
24	Pakistan Tobacco Company	0.99	38,707,280,000
25	Sui Northern Gas Pipelines	0.98	38,300,100,000
26	Hub Power Company	0.98	38,128,240,000
27	Dawood Hercules Chemicals	0.91	35,549,620,000
28	Habib Metropolitan Bank	0.91	35,354,280,000
29	EFU Life Assurance	0.89	34,750,000,000
30	Lucky Cement	0.86	33,593,480,000

Market Indices

KSE began with a 50 shares index. As the market grew a representative index was needed. On November 1, 1991 the KSE-100 was introduced and remains to this date the most generally accepted measure of the Exchange. The KSE-100 is a capital weighted index and consists of 100 companies representing about 90 percent of market capitalization of the Exchange. In 1995 the need was felt for an all share index to reconfirm the KSE-100 and also to provide the basis of index trading in future. On August 29, 1995 the KSE all share index was constructed and introduced on September 18, 1995.

Monthly Performance

Market monthly performance during the period January 2006 to April 2009 is given under with high rated index showing in bold text. The highest ever closing for KSE 100 Index was achieved at 15,676.34 points on 18 April, 2008.

Following a staggering loss of 42 per cent in four months (April 2008 to August 2008), the regulators had put planks under the KSE-100 index at 9,144 points on August 28, 2008 to prevent a further fall. The floor was finally removed on December 15, 2008 that had brought the bourse to a virtual halt for more than 100 days.

Number	Volume	Index	Date
1	402,639,040	9,672.47	02/01/2006
2	805,494,080	10,497.07	01/02/2006
3	761,960,000	11,473.99	01/03/2006
4	387,000,896	11,573.94	03/04/2006
5	331,884,928	11,572.94	02/05/2006
6	251,317,072	10,183.77	01/06/2006
7	152,448,096	9,603.71	03/07/2006
8	284,526,880	10,507.09	01/08/2006
9	171,682,624	10,170.97	01/09/2006
10	224,694,528	10,616.24	02/10/2006
11	310,985,696	11,011.13	01/11/2006
12	172,052,400	10,388.19	01/12/2006
13	39,200,120	10,066.68	03/01/2007
14	480,905,216	11,349.44	01/02/2007
15	229,188,400	11,207.64	01/03/2007
16	73,447,224	11,277.13	02/04/2007
17	431,508,448	12,433.76	02/05/2007
18	460,166,784	12,933.66	01/06/2007
19	471,708,992	13,929.70	02/07/2007
20	326,983,008	13,689.03	01/08/2007
21	179,963,648	12,233.14	03/09/2007
22	367,242,752	13,737.74	01/10/2007
23	328,071,488	13,932.41	01/11/2007
24	137,879,220	13,925.59	03/12/2007
25	375,074,240	13,666.85	01/01/2008
26	151,358,160	13,974.40	01/02/2008
27	196,083,660	14,816.50	03/03/2008
28	218,399,820	15,210.17	01/04/2008
29	257,965,456	14,956.82	02/05/2008
30	169,125,456	12,281.20	02/06/2008
31	60,751,820	12,221.53	01/07/2008
32	72,835,000	10,171.39	01/08/2008
32	23,691,000	9,210.15	01/09/2008
34	1,560,000	9,178.97	06/10/2008
35	457,000	9,183.14	03/11/2008
36	102,000	9,187.10	01/12/2008
37	75,434,000	5,753.18	01/01/2009
38	177,668,000	5,333.95	02/02/2009
39	85,351,000	5,681.29	02/03/2009
40	207,282,000	6,931.90	01/04/2009
41	123,539,000	7,062.25	04/05/2009

Impact of 2008 Economic/Political Crisis on KSE 100 Index

• April 20 : Karachi Stock Exchange achieved a major milestone when KSE-100 Index crossed the psychological level of 15,000 for the first time in its history and peaked 15,737.32 on 20 April, 2008. Moreover, the increase of 7.4 per cent in 2008 made it the best performer among major emerging markets.
• May 23: Record high inflation in the month of May, 2008 resulted in the unexpected increase in the interest rates by State Bank of Pakistan which eventually resulted in sharp fall in Karachi Stock Exchange.
• July 17 :Angry investors attacked the Karachi Stock Exchange in protest at plunging Pakistani share prices.
• July 16 : KSE-100 Index dropped one-third from an all-time high hit in April, 2008 as rising pressure on shaky Pakistan's coalition government to tackle Taliban militants exacerbates concern about the country's economic woes.
• August 18: KSE 100 Index rose more than 4% after the announcement of the resignation of President Pervez Musharraf but Credit Suisse Group said that Pakistan's Post-Musharraf rally in Stock Exchange will be short-lived because of a rising fiscal deficit and runaway inflation.
• August 28 :Karachi Stock Exchange set a floor for stock prices to halt a plunge that has wiped out $36.9 billion of market value since April.
• December 15: Trading resumes after the removal of floor on stock prices that was set on August 28 to halt sharp falls.

Culture of city

Karachi is home to some of Pakistan's important cultural institutions. The National Academy of Performing Arts, located in the newly renovated Hindu Gymkhana offers a two year diploma course in performing arts that include classical music and contemporary theatre. The All Pakistan Music Conference, linked to the 45-year old similar institution in Lahore, has been holding its Annual Music Festival since its inception in 2004. The Festival is now a well-established feature of the city life of Karachi that is attended by more than 3000 citizens of Karachi as well as people from other cities. The National Arts Council also has musical performances and Mushaira (poetry recitations). The Kara Film Festival organized annually showcases independent Pakistani and international films and documentaries.

Karachi has many museums including the Mohatta Palace Museum that regularly has exhibitions as well as the National Museum of Pakistan. Karachi Expo Centre hosts many regional and international exhibitions.

The everyday lifestyle of Karachi differs substantially from that of other Pakistani towns. The culture of Karachi is characterized by the blending of South Asian and Western influences, as well as the status of the city as a major international business centre. Karachi also hosts the largest middle class stratum of the country.

GDP information

a) GDP

A substantial chunk of Sindh’s GDP is attributed to Karachi (the GDP of Sindh as a percentage of Pakistan’s total GDP has traditionally hovered around 29%/30%). Karachi’s GDP is around 20% of the total GDP of Pakistan. A PricewaterhouseCoopers study released in 2007, that surveyed the GDP (2005) of the top cities in the world, calculated Karachi’s GDP(PPP) to be $55 billion (projected to be $127 billion in 2020 at a growth rate of 5.9%). It confirmed Karachi’s status as Pakistan’s largest economy, well ahead of the next two biggest cities Lahore and Faisalabad having a reported GDP(PPP) of $29 billion and $10 billion, respectively. Karachi's high GDP is based on its mega industrial base, with a high dependency also on Financial sector. Textile, Cement, Steel, Heavy machinery, chemicals, food, Banking, Insurance are the major segments contributing to Karachi's GDP.

b) Revenue Collection

In line with its status as a major port and the country's largest metropolis, it accounts for a lion's share of Pakistan's revenue generation. According to the Pakistan Federal Board of Revenue's 2006-2007 year book tax and customs units in Karachi was responsible for 46.75% of direct taxes, 33.65% of federal excise tax, and 23.38% of domestic sales tax. Karachi also accounts for 75.14% of customs duty and 79% of sales tax on imports. Therefore, Karachi generates collects a significant 53.38% of the total collections of the Federal Board of Revenue, out of which 53.33% are customs duty and sales tax on imports (Note: Revenue collected from Karachi includes revenue from some other areas since the Large Tax Unit (LTU) Karachi and Regional Tax Offices (RTOs) Karachi, Hyderabad, Sukkur & Quetta cover the entire province of Sindh and Baluchistan). Karachi's indigenous contribution to national revenue is 25%.

c) Business districts

View of the I.I.Chundrigar Road skyline, heart of the financial district of Karachi

I I Chundrigar Road (formerly McLeod Road) was once the main business district of Karachi, but in recent years many businesses have moved to other areas such as Sharah-e-Faisal, MT Khan road, Mai Kolachi, Clifton and Defence. The traffic congestion in I.I. Chundrigar Road has made it difficult to travel to the center of the city in a timely manner.

Sharah-e-Faisal has seen a spate of building with high rises, show rooms and institutions. Its proximity to Karachi Airport has been a significant factor.

c) 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.

d) Karachi Stock Exchange

Karachi Stock Exchange is Pakistan's largest and oldest stock exchange, with many Pakistani as well as overseas listings. It has been declared as the “Best Performing Stock Market of the World for the year 2002”.

KSE has been well into the 4th year of being one of the Best Performing Markets of the world as declared by the international magazine “Business Week”. Similarly the US newspaper, USA Today, termed Karachi Stock Exchange as one of the best performing bourses in the world.

e) 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.

Dozens of new manufacturing units are also being built near the Pakistan Steel Mill. Farm businesses line 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 and Port Qasim.

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 150,000 vehicles per year. Among others, Millat Tractors, Adam Motor Company, Daihatsu, HinoPak Buses and Trucks manufacturing plants are also located in Karachi.

f) Banking sector

The banking and insurance sector in Karachi has reaped the benefits of industrialization. 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.

g) Transportation

Despite the growth and development of transport infrastructure elsewhere in the country Karachi remains the country's transport hub. Currently the city's two 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 6 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.

h) 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.

i) 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

Economy in Karachi

Karachi is the financial and commercial capital of Pakistan. In line with its status as a major port and the country's largest metropolis, it accounts for a lion's share of Pakistan's revenue. According to the Federal Board of Revenue's 2006-2007 year book, tax and customs units in Karachi were responsible for 46.75% of direct taxes, 33.65% of federal excise tax, and 23.38% of domestic sales tax. Karachi also accounts for 75.14% of customs duty and 79% of sales tax on imports. Therefore, Karachi generates a significant 53.38% of the total collections of the Federal Board of Revenue (since renamed as the Central Board of Revenue), out of which 53.33% are customs duty and sales tax on imports (Note: Revenue collected from Karachi includes revenue from some other areas since the Large Tax Unit (LTU) Karachi and Regional Tax Offices (RTOs) Karachi, Hyderabad, Sukkur & Quetta cover the entire province of Sindh and Balochistan). Karachi's indigenous contribution to national revenue is 25%.

Karachi produces about 30 percent of value added in large scale manufacturing. A substantial chunk of Sindh’s GDP is attributed to Karachi (the GDP of Sindh as a percentage of Pakistan’s total GDP has traditionally hovered around 28%/30%). Karachi’s GDP is around 20% of the total GDP of Pakistan. A PricewaterhouseCoopers study released in 2007, that surveyed the GDP (2005) of the top cities in the world, calculated Karachi’s GDP(PPP) to be $55 billion (projected to be $127 billion in 2020 at a growth rate of 5.8%). It confirmed Karachi’s status as Pakistan’s largest economy, well ahead of the next two biggest cities Lahore and Faisalabad having a reported GDP(PPP) of $28 billion and $10 billion, respectively. Karachi's high GDP is based on its mega industrial base, with a high dependency also on the financial sector. Textile, Cement, Steel, Heavy machinery, chemicals, food, Banking, Insurance are the major segments contributing to Karachi's GDP. 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. 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. 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 centers 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, AAJ News,GEO TV, KTN, Sindh TV,CNBC Pakistan, 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. 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.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.

Mayor of City syd.Mustafa Kamal

Mustafa Kamal is the District City Nazim (Mayor) of Karachi. Mr. Kamal is one of the well-known members, Muttahida Qaumi Movement (MQM), which is the second largest political party in Pakistan after PPP (PML(N) second biggest but being considered Punjabi Nationalist and confined to Punjab only).

Biography

He was born in 1971 in Karachi,Sindh. He studied in Karachi till Intermediate and left for Malaysia where he completed an Associate Diploma in Business Executive studies. He earned his MBA in Marketing from the University of Wales (UK). Before becoming the Mayor of Karachi, he served as a minister for Information Technology with the Sindh government.

Involvement with MQM

He has been associated with the Muttahida Qaumi Movement (MQM) for more than a decade. He was working as a call operator in 90, which is the main office of MQM in Azizabad, Karachi. He was nominated as Mayor (City Nazim) by the Haq Parast panel, in local bodies election. He won by 1,493 votes against 800 votes obtained by his main rival, former city nazim Naimatullah Khan, fielded by the Tameer-i-Karachi Ittehad of the combined opposition parties.

August 2007

Residents of Defence Housing Authority (DHA),the most prestigious neighborhood of Karachi, wished to pay taxes to CDGK. They even praised City government's efforts to carry out relief operations in their area.

The city government has started work on 3 multistoried parking plazas two in Saddar Town and one in Clifton area and these would be unique and one of its kind projects in Pakistan.

Achievements

• The International Organization for Standardization (ISO) Geneva has granted ISO certification 9001 to City Government Karachi for providing best services to its citizens.

• Mustafa Kamal was praised by the Supreme Court of Pakistan for his efforts to make Karachi a mega city and to carry out relief operations.

• Reputed journal, Foreign Policy in its report has declared Karachi Nazim, Syed Mustafa Kamal among the three enerjatic mayors in the world of the year 2008 .

• The Foreign Policy magazine of the United States has chosen Karachi Nazim Syed Mustafa Kamal as the second among the best three mayors in the world for 2008.

Education in the City

Education in Karachi, Pakistan, is divided into five levels: primary (grades one through five); middle (grades six through eight); high (grades nine and ten, leading to the Secondary School Certificate); intermediate (grades eleven and twelve, leading to a Higher Secondary School Certificate); and university programs leading to graduate and advanced degrees.

Karachi has both public and private educational institutions from primary to university level. Most educational institutions are gender based from primary to university level.

All academic education institutions are the responsibility of the provincial governments. The federal government mostly assists in curriculum development, accreditation and some financing of research.

Pre-school

A child may begin his/her schooling at a pre-school at the age of 3. Over the last few years, many new kindergarten (sometimes called montessori) schools have also sprung up in Karachi. Usually pre-school Muslim children get Islamic education of Quran and Hadis at home or local Masjid or Madrasahs.

Primary Education

There are many private and public schools in Karachi.

Secondary Education

There are many secondary schools in Karachi. The City School has a wide variety of branches of Secondary Education in North Nazimabad, Gulshan-e-Iqbal, PECHS, PAF Chapter, Clifton and Darakshah.

Universities

Most universities of Karachi are considered to be amongst the premier educational institutions of Pakistan. For 2004-05, the city's literacy rate was estimated at 65.26%, Highest in Pakistan with a GER of 111%.

List of colleges in Karachi

• Pakistan Swedish Institute of Technology, Karachi, Sindh, Pakistan.

• Govt. Polytechnic Institute Liyari, Karachi, Sindh, Pakistan.

• Govt. Monotechnic Institute, New Karachi, Karachi, Sindh, Pakistan.

• Govt. Monotechnic Institute Orangi Town, Karachi, Sindh, Pakistan.

• Pakistan Shipowners' College, North Nazimabad.
• Adamjee Government Science College, Jamshed Town. (English Medium)
• Dayaram Jethamal Sindh Government Science College (D.J. Science College), Saddar Town. (English Medium)
• Government Aisha Bawani College, Saddar Town. (Morning & Evening)
• Government Allama Iqbal College for Boys, Shah Faisal Town. (Morning & Evening)
• Government Boys College Konkar Village, Gadap Town.
• Government Boys College Korangi-2½, Korangi Town.
• Government Boys College Landhi-4, Landhi Town.
• Government Boys College Surjani Town, Gadap Town.
• Government City College Musa Colony, Gulberg Town. (Morning & Evening)
• Government College for Boys Asifabad, S.I.T.E. Town.
• Government College for Boys Baldia Town, Baldia Town.
• Government College for Men Nazimabad, Liaquatabad Town. (English Medium)
• Government College of Commerce & Economics, Saddar Town. (English Medium)(Morning & Evening)
• Government Degree Commerce College Malir, Malir Town. (Evening)
• Government Degree Arts & Commerce College Landhi, Landhi Town (Evening)
• Government Degree Boys College Gulzar-E-Hijri, Gulshan Town.
• Government Degree Boys College Jungle Shah, Kemari Town.
• Government Degree Boys College New Karachi, New Karachi Town.
• Government Degree Boys College Razzaqabad, Bin Qasim Town.
• Government Degree Boys College Shams Pir, Kemari Town.
• Government Degree College for Boys North Karachi, New Karachi Town.
• Government Degree College Gulistan-e- Johar, Gulshan Town.
• Government Degree College Gulshan-e-Iqbal, Gulshan Town
• Government Degree College Malir Cantt., Malir Cantt. (English Medium)
• Government Degree College Mango Pir, Karachi, Gadap Town.
• Government Degree College Murrad Memon Goth, Gadap Town.
• Government Degree College Quaidabad, Bin Qasim Town.
• Government Degree College SRE Majeed Stadium Road, Gulshan Town. (English Medium)
• Government Degree Science & Commerce College Landhi, Landhi Town (Morning)
• Government Degree Science & Commerce College, Lyari Town.
• Government Degree Science & Commerce College, Orangi Town.
• Government Degree Science College Buffer Zone, North Nazimabad Town.
• Government Degree Science College Liaquatabad, Liaquatabad Town
• Government Degree Science College Malir, Malir Town. (Morning)
• Government Delhi College, Karimabad. (English Medium)
• Government Islamia Arts & Commerce College, Jamshed Town. (Morning & Evening)
• Government Islamia Science College, Jamshed Town. (English Medium)
• Government Jamia Millia Degree College, Shah Faisal Town. (Morning & Evening)
• Government Jinnah College, North Nazimabad Town.
• Government Nabi Bagh College, Saddar Town.
• Government National College, No. 1. (Morning), Gulshan Town. (English Medium)
• Government National College, No. 2. (Evening), Gulshan Town.
• Government P.E.C.H.S. Education Foundation Science College, Jamshed Town.
• Government Sirajudallah College, Liaquatabad Town. (Morning & Evening)
• Government Superior Science College, Shah Faisal Town. (Morning & Evening)
• Haji Abdullah Haroon Government College, Lyari Town. (Morning & Evening)
• Liaquat Government College Malir, Malir Town. (Evening)
• Premier Government College, North Nazimabad Town. (Morning & Evening)
• Quaid-e-Millat Government College, Liaquatabad Town. (Evening)
• S.M. Government Arts & Commerce College, Saddar Town. (Morning & Evening)
• S.M. Government Science College, Saddar Town.
• ZAM ZAMA GARAMER SCHOOL & COLLEGE (GIZZRI TOWN ZAMZAMA)

Karachi Ports

The Port of Karachi is Pakistan's largest and busiest seaport, handling about 60% of the nation's cargo (25 million tons per annum). The port is located between the towns of Kiamari and Saddar, close to the heart of old Karachi, the main business district, and several industrial areas. The geographic position of Karachi places the port in close proximity to major shipping routes such as the Strait of Hormuz. The administration of the port is carried out by the Karachi Port Trust which was established in the nineteenth century.

History

The history of the port is intertwined with that of the city of Karachi. Several ancient ports have been attributed in the area including "Krokola", "Morontobara" (Woman's Harbour) (mentioned by Nearchus), Barbarikon (the Periplus of the Erythraean Sea, and Debal (a city captured by the Muslim general Muhammad bin Qasim in 712 CE). There is a reference to the early existence of the port of Karachi in the "Umdah", by the Arab navigator Suleiman al Mahri (AD 1511), who mentions "Ras al Karazi" and "Ras Karashi" while describing a route along the coast from Pasni to Ras Karashi. Karachi is also mentioned in the sixteenth century Turkish treatise "Muhit" (The Ocean) by the Ottoman captain Seydi Ali Reis, which is a compilation of sailing directions from the Portuguese island of Diu to Hormuz in the Persian Gulf. It warns sailors about whirlpools and advises them to seek safety in "Kaurashi" harbour if they found themselves drifting dangerously.

There is a legend of a prosperous coastal town called Kharak in the estuary of the Hub River (west of modern Karachi) in the late seventeenth and early eighteenth century. In 1728 heavy rains silted up the harbour and resulted in the merchants of Kharak relocating to the area of modern Karachi. In 1729, they built a new fortified town called Kolachi (also known as Kalachi-jo-Kun and Kolachi-jo-Goth) on high ground north of Karachi bay, surrounded by a 16-foot (5 m) high mud and timber-reinforced wall with gun-mounted turrets and two gates. The gate facing the sea was called "Kharadar" (salt gate), and the gate facing the Lyari River was called "Mithadar" (sweet gate). The modern neighbourhoods around the location of the gates are called Mithadar and Kharadar. Surrounded by mangrove swamps to the east, the sea to the southwest, and the Layari river to the north, the town was well defended and engaged in a profitable trade with Muscat and Bahrain.

From 1729 to 1783 the strategic location of Kolachi saw the town change hands several times between the Khans of Kalat and the rulers of Sind. In 1783, after two prolonged sieges the town fell to the Talpur Mirs of Sind, who constructed a fort mounted with cannons on Manora island at the harbour entrance. The prominence of the port attracted the British, who opened a factory in Karachi at the end of the eighteenth century but disagreements with the Mirs on trade tariffs led to the closure of the factory. The British were concerned about Russian expansion towards the Arabian Sea, so in 1839 they occupied Karachi and later the whole of the Sindh. The port served as a landing point for troops during the First Afghan War.

The potential of Karachi as a natural harbour for the produce of the Indus basin led to rapid development. The Indus Steam Flotilla and the Orient Inland Steam Navigation Company were formed to transport cotton and wheat down the Indus river to Karachi. A number of British companies opened offices and warehouses in Karachi and the population increased rapidly. By 1852, Karachi was an established city with a population of 14,000 and a prosperous overseas trade. The modern port began to take shape in 1854, when the main navigation channel was dredged and a mole or causeway was constructed to link the main harbour with the rest of the city. This was followed by construction of Manora breakwater, Keamari Groyne, the Napier Mole Bridge and the Native Jetty. The construction of the wharves started in 1882, and by 1914 the East Wharf and the Napier Mole Boat Wharf were complete while 1927 and 1944, the West Wharf, the lighterage berths and the ship-repair berths were constructed between 1927 and 1944.

From the 1861 the Sindh Railway line connected Karachi to the cotton and wheat producing areas of the Sindh and northern British India and by 1899 Karachi was the largest wheat and cotton exporting port in India. The period between 1856 and 1872 saw a marked increase in trade, especially during the American Civil War when cotton from Sindh replaced American cotton as a raw material in the British textile industry and the opening of the Suez Canal in 1869. Another major export was oil brought by rail from the Sui region in Balochistan.

Karachi's importance as a gateway to India increased in 1911 when the capital of British India was moved to Delhi. The city was an important military base during the First World War (1914-18) because it was the first Indian port of call for ships coming through the Suez Canal and was the gateway to Afghanistan and the Russian Empire. In 1936 the Sindh district of the Bombay Presidency was reorganised as a new province with Karachi as the capital instead of the traditional capital of Hyderabad. This led to new public services and buildings, thus increasing its population and importance.

Karachi was again a military base and port for supplies to the Russian front during the Second World War (1939-1945). In 1947, Karachi became the capital of the new nation of Pakistan, resulting in a growth in population as it absorbed hundreds of thousands of refugees. Although the capital moved to Islamabad in 1959, Karachi remains the economic center of Pakistan, accounting for the largest proportion of national GDP based in part on the commerce conducted through the Port of Karachi and Port Qasim. The port was targeted by the Indian Navy (codenamed Operation Trident) during the hostilities of the 1971 war.

Port Facilities

The port comprises a deep natural harbour with an 11 kilometre long approach channel which provides safe navigation for vessels up to 75,000 metric tons deadweight (DWT). The main areas of port activity are two wharves; East Wharf with seventeen vessel berths and West Wharf with thirteen vessel berths. The maximum depth alongside the berths is currently 11.3 metres. The two wharves extend in opposite directions along the upper harbour – the East Wharf northeast from Kiamari Island and the West Wharf southwest from Saddar town. The two wharves each include a container terminal:

A Frieghtliner at the dock.

• Karachi International Container Terminal (KICT) opened in 1996 at West Wharf berths 28-30. It has a handling capacity of 300,000 TEUs per annum and handles container ships up to 11-metre draught. The total quay length is 600 metres divided into two container berths. The terminal is equipped with three Panamax cranes and one post-Panamax crane.

• Pakistan International Container Terminal (PICT) in 2002 at East Wharf berths 6-9. It has a handling capacity of 350,000 TEUs per annum and handles container ships up to 11.5 metre draught. The total quay length is 600 metres divided into two container berths. The terminal is equipped with two Panamax cranes.

• KICT and PICT have a nearby competitor in the privately operated Al-Hamd International Container Terminal (AICT), which opened in 2001 at a site west of the Layari river. AICT is situated next to the Sindh Industrial Trading Estate, the new truck stand at Hawkes Bay Road and close to the RCD Highway, Super Highway and the future Layari Bypass.

There are also three liquid cargo-handling berths (oil piers), two ship repair jetties and a shipyard and engineering facility. The shipyard carries out shipbuilding and repair for both commercial and military customers on a 29-hectare (70 acres) site at the West Wharf. The facilities include a large shipbuilding hall, three shipbuilding berths, two dry-docks and three foundries.

Expansion

The flow of cargo to and from the port is hampered by severe congestion in the harbour with several other maritime facilities located close to the port. Adjacent to the West Wharf is the Karachi Fishing Harbour, which is administered separately from the port and is the base for a fleet of several thousand fishing vessels. The West Wharf also hosts a ship repair facility and shipyard and a naval dockyard at the tip of the wharf, while to the south of the port are the Karachi Naval Base and the Kiamari Boat Club. The Port of Karachi also faces competition from a new private terminal located 5 kilometres to the west. In recent years the federal government has attempted to alleviate the increased congestion by constructing a second port in Karachi thirty kilometres to the east at Port Qasim and a third major port at Gwadar, about 650 kilometres west of Karachi. The Karachi Fishing Harbour has been upgraded recently, and a second fishing harbour has been built 18 kilometres away at Korangi. The transfer of some naval vessels to the new naval base at Ormara has brought about further reductions in congestion.

Further deepening of the port has been planned by the Karachi Port Trust in order to enhance facilities. The channel is being dredged initially to 13.5 metres deep to cater for 12 metre draught vessels at all tides. At Kiamari Groyne, located at the outer tip of the harbour, dredging will be to 16.5 metres to enable vessels up to 300 metres long to dock. Other projects to expand the port include:

• An increase the handling capacity of KICT from 300,000 TEUs to 400,000 TEUs per annum
• Two new berths at KICT with 14 metres depth alongside and an additional 100,000 m² terminal/stacking area
• Installation of modern facilities at PICT (completed in April, 2004)
• A new bulk cargo terminal at East Wharf
• Reconstruction of the oldest oil pier to allow tankers of 90,000 metric tons deadweight (DWT) to berth
• A new 100-acre (0.4 km²) cargo village to cater for containers and general and bulk cargo
• Reconstruction of the 100-year old NMB Wharf to enhance the berthing of passenger vessels
• The purchase of a new dredger, two hopper barges, two harbour tugs, two water barges, an anchor hoist vessel, two pilot boats, and a dredger tender
• A new desalination plant to address the city's water shortage problem
• A 500-foot (150 m) high Port Tower for commercial and recreational use including a revolving restaurant
• The construction of a 500 acre (2 km²) Port Town with 13,000 homes for port workers at nearby Hawkes Bay
• A new Port Club at Chinna Creek adjacent to the East Wharf

On November 9, 2007, the Karachi Port Trust signed a US$1 billion agreement with Hutchison Port Holdings to construct a new terminal called the "Pakistan Deep Water Container Port", which would begin operations by 2010, and would have ten berths capable of handling Super Post Panamax container ships.

Environmental Concerns

The area around the harbour includes several mangrove forests which are constantly under threat from human activities. To the east of the port lies Chinna Creek, which covers about 6 km² and is dotted with mangrove islands. To the southwest of the port is another much larger mangrove forest in the bay formed by several islands and Manora breakwater; the river Layari flows into this bay, bringing waste from upstream suburbs.

The beach immediately east of the harbour was the scene of a significant oil spillage when the Greek-registered Tasman Spirit ran aground on July 28 2003. The environmental impact included large numbers of dead fish and turtles and damage to a key mangrove forest, as well as dozens of people suffering nausea.

Labour relations

The Karachi Dock Labour Board (KDLB) is responsible for labour relations between employees and the Karachi Port Trust. In October 2006, the Pakistan government decided to close down Karachi Dock Labour Board by the end of the year as part of its port strategy and under the National Trade Corridor (NTC) programme. The closure of KDLB would cost around Rs 4.2 billion ($70 million) to the national exchequer.