tag:blogger.com,1999:blog-8278279504304651957.post8702791770551523343..comments2024-03-26T19:25:43.970-07:00Comments on South Asia Investor Review: Evolution and Growth of Oligarchy in India and PakistanRiaz Haqhttp://www.blogger.com/profile/00522781692886598586noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-8278279504304651957.post-84095372101796067202018-05-13T16:55:45.191-07:002018-05-13T16:55:45.191-07:00https://twitter.com/FaseehMangi/status/99466702866...https://twitter.com/FaseehMangi/status/994667028664471552<br /><br />According to the infographic (tweeted by Faseeh Mangi) , at the top of the group is the IGI Group, which includes IGI insurance, IGI Life, Nestle. Tri-Pack Films, and Sanofi-Aventis with a combined total market cap of Rs677 billion which makes up 7.4 per cent of KSE.<br /><br />Coming in second is the Hussain Dawood Group which includes companies such as Engro Corp, Engro Foods, Engro Fertilisers, Engro Polymer, Engro PowerGen, Dawood Hercules, and Dawood Lawrencepur with a total combined market cap at Rs442 billion and 4.8 per cent of KSE.<br /><br />Fauji Foundation is ranked in the third spot with companies such as Fauji Fertilizer, Fauji Foods, Fauji Fertilizer Bin Qasim, Fauji Cement, Askari Bank, and Mari Petroleum. The Fauji Foundation Group, according to the report, has a total market capitalisation of Rs432 billion, and a a total KSE share of 4.6 per cent.<br /><br />Mian Mansha’s Mansha Group follows with a total market capitalisation at Rs408 billion, and 4.4 per cent share of KSE. Mansha Group includes names such as Nishat Mills, MCB Bank, DG Khan Cement, Adamjee Insurance, Nishat Chunian, Lalpir Power, and Nishat Power.<br /><br />At number 5 in terms of market capitalization is the Habib Group which includes companies such as the Indus Motor Company, Thal Limited, Habib Insurance, Habib Sugar Mills, Bank Al-Habib, Habib Metro, and Shabbir Tiles. Total market capitalisation for the group stands at Rs326 billion and its total share in the stock exchange is at 3.6 per cent.<br /><br />Bestway Group, which includes United Bank Limited (UBL) and Bestway Cement come in next with a market capitalization of Rs310 billion and a 3.4 per cent share of KSE.<br /><br />Tabba Group, at number 7 boasts of a total market capitalisation of Rs298 billion and KSE percentage share of 3.3 per cent. The group includes companies such as Lucky Cement, ICI Pakistan, and Gadoon Textiles.<br /><br />With a total market capitalisation of Rs143 billion, the Atlas Group which includes companies such as Honda Atlas Cars, Atlas Honda, Atlas Battery, and Atlas Insurance, has a 1.6 per cent share in KSE.<br /><br />Chinoy Group, Saigol Group, and JS Group come in last in the list of the 11 groups which own 35 per cent of market capitalisation of Pakistan’s Stock Exchange with total market caps at Rs90 billion, Rs79 billion, and Rs43 billion respectively, and a respective percentage share of 1 percent, 0.9 per cent, and 0.5 percent. The Chinoy Group includes Pakistan Cables, International Industries, and International Steel. The Saigol Group includes companies such as Pak-Elektron, Maple Leaf Cement, and Kohinoor Textile Mills. JS Group includes Jahangir Siddique Company, JS Bank, BankIslami, JS Investments, and JS Global.<br /><br /><br />https://profit.pakistantoday.com.pk/2018/05/14/who-owns-pakistan-11-business-groups-that-own-35pc-of-kses-market-cap/Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-8278279504304651957.post-20403106521127052502011-09-29T09:44:08.729-07:002011-09-29T09:44:08.729-07:00Here's an interesting comparison between the c...Here's an interesting comparison between the coffee elite of Central America and sugar elite of Pakistan by Dr. Adeel Malik in <a href="http://thenews.com.pk/TodaysPrintDetail.aspx?ID=198042&Cat=9&dt=9/12/2009" rel="nofollow">The News</a>:<br /><br /><i>In his famous book, Coffee and Power, Jeffrey Paige provides a vivid illustration of how a single commodity, coffee, is sufficient to explain the power structure of Central America. Despite the varying political complexions of its regimes, Central America has one thing in common: they are all ruled by coffee elites. For decades, Central America's coffee elites have thrived on state patronage, rent seeking, and distortion of private markets. As Jeffrey Paige concludes, these elites have generated in this process "unprecedented wealth for the few at the expense of the general impoverishment of the many". Despite this, the coffee elites have been remarkably resilient in Central America, surviving periods of both revolutions and authoritarian rule.<br /><br />In terms of its links with political power, sugar is Pakistan's parallel for coffee. Sugar industry is Pakistan's second largest agro-based industry. Its linkage with politics, patronage and protection sets it apart from other industries. Available evidence suggests that it is economically inefficient, enjoys one of the highest rates of protection, and is dominated by a small number of political influential owners, making it an excellent illustration of the interconnection between business and politics. The analysis of sugar markets in Pakistan, and their manipulation therefore opens up a fascinating window into how the economic interests of our political elites are strongly entrenched in the current power structure. The operation of sugar markets in Pakistan offers a telling story of how both markets and public policy are routinely captured by vested political interests. </i> <br /><br />http://thenews.com.pk/TodaysPrintDetail.aspx?ID=198042&Cat=9&dt=9/12/2009Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-8278279504304651957.post-31780255336776058842011-08-18T09:35:58.612-07:002011-08-18T09:35:58.612-07:00Here's an excerpt from Dr. Ishrat Husain's...Here's an excerpt from <a href="http://www.iba.edu.pk/News/speechesarticles_drishrat/Economic_policies_under_Shaoib.pdf" rel="nofollow">Dr. Ishrat Husain's lecture</a> remembering Pakistan finance minister Shoaib in 2009:<br /><br /><i>The period from 1958 to 1969 during which President Ayub ruled and Mr.<br />Shoaib served as Finance Minister for most of these years is considered as the<br />golden era of Pakistan’s economic history. The period had strong macro<br />economic management and the economic indicators were extremely impressive.<br />Agriculture grew at a respectable 4 percent while remarkable rates were<br />achieved in manufacturing (9 percent) and trade (7 percent) GNP growth rates<br />exceeded 6 percent on average throughout the period. Economic growth was<br />very strong on all fronts.<br />Structural changes that took place under the stewardship of Mr. Shoaib<br />laid the foundation for Pakistan’s subsequent economic performance.<br />Manufacturing sector which was quite nascent increased to nearly 15 percent of<br />DGP. Pakistan’s economic model was considered a benchmark for the<br />developing countries. By the end of the decade, Pakistan’s manufactured<br />exports wee higher than the combined manufactured exports of the Philippines,<br />Thailand, Malaysia and Indonesia. It is purely a matter of conjecture as to where<br />Pakistan would have stood today in terms of per capita incomes if it had<br />continued the economic policies of 1960s.<br />A country’s economic outcomes depend upon a host of factors (a) Initial<br />resource endowment; (b) External environment; (c) Strategy and policy<br />framework; (d) Administration capacity; (e) Political stability.<br />Pakistan inherited a weak resource endowment as the part that<br />constituted India was relatively advanced in terms of natural, human and physical<br />resources while the two wings of Pakistan separated by 1,000 miles of Indian<br />territory were quite backward.<br />Delivered as the 19th Shoaib Memorial <br />External environment facing Pakistan in the decade of the 1960s was<br />mixed. The war of 1965, however, caused immense economic damage to<br />Pakistan and foreign aid flows did suffer in the post 1965 period.<br />The strength of the economic performance in this decade can mainly be<br />explained by the strategy and economic policies pursued during this period, the<br />efficiency with which these policies were executed due to improvement in<br />administrative capacity and the political continuity and stability that prevailed until<br />late 1968.<br />------------<br />Economic policies pursued by Ayub-Shoaib administration in the 1960s<br />were outward-oriented, liberal and supportive of the private sector. State played<br />a facilitating and enabling role by providing incentives, supplying infrastructure<br />(particularly in irrigated agriculture), institutions and technology. Macroeconomic<br />management was sound and prudent and fiscal and external balances were<br />managed well. Inflation remained in check and the annual rate of growth in<br />prices was only 3.3 percent. However, rapid economic growth and<br />industrialization resulted in income inequalties and regional disparities that had<br />serious political repercussions subsequently. Social sectors were neglected and<br />industries for capital goods were not set up. Import substitution strategy had a<br />positive pay off but also nurtured rent-seeking and pressures for protection<br />against external competition thus masking the inefficiencies of domestic<br />industries. Exchange rate policies created distortions and arbitrage<br />opportunities. But the positive contribution that made Pakistan self-sufficient in<br />wheat and rice was the adoption and diffusion of Green Revolution technologies<br />that also helped uplift the living standards of the rural population.<br /></i>Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-8278279504304651957.post-32756987065423105682011-08-18T09:22:15.447-07:002011-08-18T09:22:15.447-07:00Here's an excerpt from Dr. Ishrat Husain's...Here's an excerpt from <a href="http://www.iba.edu.pk/News/speechesarticles_drishrat/Economic_policies_under_Shaoib.pdf" rel="nofollow">Dr. Ishrat Husain's lecture</a> remembering Pakistan finance minister Shoaib in 2009:<br /><br /><i>The period from 1958 to 1969 during which President Ayub ruled and Mr.<br />Shoaib served as Finance Minister for most of these years is considered as the<br />golden era of Pakistan’s economic history. The period had strong macro<br />economic management and the economic indicators were extremely impressive.<br />Agriculture grew at a respectable 4 percent while remarkable rates were<br />achieved in manufacturing (9 percent) and trade (7 percent) GNP growth rates<br />exceeded 6 percent on average throughout the period. Economic growth was<br />very strong on all fronts.<br />Structural changes that took place under the stewardship of Mr. Shoaib<br />laid the foundation for Pakistan’s subsequent economic performance.<br />Manufacturing sector which was quite nascent increased to nearly 15 percent of<br />DGP. Pakistan’s economic model was considered a benchmark for the<br />developing countries. By the end of the decade, Pakistan’s manufactured<br />exports wee higher than the combined manufactured exports of the Philippines,<br />Thailand, Malaysia and Indonesia. It is purely a matter of conjecture as to where<br />Pakistan would have stood today in terms of per capita incomes if it had<br />continued the economic policies of 1960s.<br />A country’s economic outcomes depend upon a host of factors (a) Initial<br />resource endowment; (b) External environment; (c) Strategy and policy<br />framework; (d) Administration capacity; (e) Political stability.<br />Pakistan inherited a weak resource endowment as the part that<br />constituted India was relatively advanced in terms of natural, human and physical<br />resources while the two wings of Pakistan separated by 1,000 miles of Indian<br />territory were quite backward.<br />Delivered as the 19th Shoaib Memorial Lecture organized by the Institute of Cost and<br />Management Accountants at Karachi on August 18, 2009<br />2<br />External environment facing Pakistan in the decade of the 1960s was<br />mixed. The war of 1965, however, caused immense economic damage to<br />Pakistan and foreign aid flows did suffer in the post 1965 period.<br />The strength of the economic performance in this decade can mainly be<br />explained by the strategy and economic policies pursued during this period, the<br />efficiency with which these policies were executed due to improvement in<br />administrative capacity and the political continuity and stability that prevailed until<br />late 1968.<br />The philosophy and policy directions can be gauged from the following<br />statement made by President Ayub Khan.<br />“ It has long been one of the cardinal policies of the government to allow free<br />enterprise full play in the development of the country. Experience has fully<br />justified the governments in private enterprise as is evident from the progress<br />Pakistan has made in the field of commerce and industry. The government<br />proposes not only to maintain this policy but reinforce it and try to give it still<br />greater scope, for we are satisfied that private enterprise can under appropriate<br />conditions bring the greatest good to the greatest number.””</i>Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.com