Author Archives: Moin Fudda

Pakistan and Afghanistan Work to “End the Blame Game” and Increase Trade Ties

The Afghan-Pakistan border. (Photo: EPA)

The Afghan-Pakistan border. (Photo: EPA)

Afghanistan, being a landlocked country, depends on its trading route with neighboring Pakistan to get its exports to world markets. However, these two countries have an unstable political relationship.

Due to increase in political instability between the two countries in the last couple of months, Pakistan’s top foreign policy adviser Sartaj Aziz paid a visit to Afghanistan in order to reduce the ongoing friction between the two countries.

The foreign affairs adviser to the prime minister visited the Afghan capital Kabul on September 4 for a regional economic conference and also held meetings with the president, foreign minister and national security adviser.

In his statement on state television about his meeting with Ghani, he said,  “The main thing that the both side agreed upon was to restore trust, end the blame game against each other and create a positive atmosphere.”

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Rising Corruption in Karachi


Corruption in Pakistan is not a new issue, but as of late it has had a detrimental effect on the country’s economic fortunes and its ability to attract foreign investment. A 2014 report by Transparency International Pakistan found over Rs. 8.5 trillion ($94 billion) was wasted due to corruption and bad governance from 2009-2013, during the previous administration led by the Pakistan People’s Party.  Pakistan currently ranks 126 out of 175 nations in Transparency International’s Global Corruption Perception Index, and lags behind neighboring countries in economic development due in part to rampant public sector corruption at both the national and provincial level.  According to Fasih Bokhari, former chairman of the National Accountability Bureau, five to seven billion rupees ($51 million to $72 million) are wasted per day due to corruption and overall inefficiency.

Major General Bilal Akbar, Director General of Pakistan Rangers, Sindh, a border security and law enforcement agency, estimated that over Rs. 230 billion ($2.3 billion) is illegally extorted or otherwise collected in Karachi each year.  General Akbar also stated that political party members, city and district government officials, and law enforcement personnel are complicit in these illegal activities, and that the money extorted is frequently used to fund terrorist and gang-related criminal activities.

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Gender Diversity on Pakistan’s Corporate Boards

When it comes to gender diversity, too many boards still look like this in 2015 (Photo: Wikimedia Commons)

When it comes to gender diversity, too many boards still look like this in 2015 (Photo: Wikimedia Commons)

Corporate boards have historically been comprised mainly of men. However, a number of countries have begun imposing quotas for the number of women on the boards of publicly traded or state-owned companies — an idea that is now being considered as a European Union-wide rule. This is likely to compel businesses elsewhere in the world, including Pakistan, to consider the gender diversity of their own corporate boards.

According to the International Finance Corporation, just 13 percent of 303 companies surveyed in Pakistan in 2010 had more than one woman director — a sample that included publicly listed companies, large family-owned firms, and private, unlisted companies. 

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What’s Stopping Pakistan from Reaping its Demographic Dividend?


Photo: Dawn

“In the absence of adequate job creation by the public or private sectors, it is more important to enhance financial inclusion, which can help create greater opportunities for self-employment instead of salaried employment.” Tameer Microfinance Bank CEO Nadeem Hussain

Pakistan is one of the top ten most populous countries in the world. Youth make up over 36 percent of the Pakistani labor force, and that proportion is projected to rise to 50 percent by 2050. According to the World Bank there will be 1.7 million Pakistanis entering the country’s labor force every year, yet, worryingly, the Pakistan labor force survey also finds that over 3.7 million people are currently unemployed. The yearly upsurge in the unemployment rate is putting additional weight on the shoulders of the Pakistan government. The government must reassess and make needed reforms in order to change the current trajectory and allow Pakistan to reap the benefits of its demographic dividend.

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Pakistan Seeks Potential Solution to Political Protests


For the past several weeks, Pakistan has faced a set of dual protests that have sparked a political crisis. One protest, led by former cricket star turned politician Imran Khan, head of the PTI party, draws on Khan’s allegation of widespread rigging in the landmark 2013 elections. Khan’s demands include electoral reforms, a redo of the election, and, controversially, the resignation of Prime Minister Nawaz Sharif of the PML-N party.

The other protest, led by Sufi cleric Muhammad Tahir-ul-Qadri, who heads the PAT party, seeks justice for followers killed and injured in a June incident at his headquarters. Qadri has demanded a full investigation, and also seeks the resignation of Punjab Chief Minister Shahbaz Sharif, the Prime Minister’s brother. After marching to Islamabad and holding daily rallies, the protests eventually turned violent. While the violence subsided, and the army has mediated talks among the government, Khan and Qadri, the situation has not yet abated.

These crises come at a difficult time for Pakistan. The country is dealing with massive floods after heavy monsoon rains. Furthermore, because of the protests, the center of Islamabad has been shut down for more than month, freezing legislative and ministerial activity in the capital. As a result, the government has been unable to make any progress on meeting an extensive set of conditions to keep badly-needed funds flowing under an IMF loan facility. Moreover, the much-awaited visit of Chinese President Xi Jinping has been postponed.

Over the past year, as shown by CIPE’s partner PRIME, an Islamabad-based think tank, the government has made only limited progress toward implementing an ambitious economic reform agenda, thus engendering widespread frustration. Against this backdrop, many observers worried that the military could seize power again, as it has done in the past, or at least seek greater influence. Citing a report from the US Congressional Research Service, there was fear that this could cause the US to withdraw crucially needed support.

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Business Community Unites on Pakistan Budget Proposal

kcci presidents conference

“In a rare show of strength, top representatives of all the country’s chambers of commerce and industry gathered in Karachi and asked the government to revamp the tax collection system if it wants to increase revenue collection in the country.”Express Tribune

For the past five years, CIPE Pakistan has been supporting the All-Pakistan Chamber Presidents’ Conference organized by Rawalpindi Chamber of Commerce & Industry. This conference has provided the business community an opportunity to assemble and a platform to advocate for policy reforms in the country with one voice.

Following in the footsteps this conference, Pakistan’s largest chamber, the Karachi Chamber of Commerce & Industry, organized a Chamber Presidents’ Conference focusing on bringing together leading chambers to submit a joint proposal for the forthcoming federal budget.

Considering the fact that Pakistan has one of the lowest tax to GDP ratios, which results in the government falling short of revenue and burdening those who already pay heavy taxes, participants of this conference remained focused on a single-point agenda “to work with government on increasing tax collection and reducing dependence on IMF loans.”

Zubair Motiwala, Co-President of the Pakistan-Afghanistan Chamber of Commerce & Industry said, “Our successive governments have followed a policy of divide and rule. But now that we are united here on one platform, no government can ignore us anymore.”

The conference was attended by the presidents of more than 18 chambers including those from Faisalabad, Lahore, Multan, Islamabad, Rawalpindi, Khyber Pakhtunkhwa, Gilgit Baltistan, Lasbela, Sukkur, and other cities and regions.

This was the first time that leading chambers have agreed to develop a unified budget proposal at least two months ahead of budget preparation. The proposal will be finalized at the next meeting, which will be hosted by Faisalabad Chamber of Commerce & Industry in April of this year.

The business community showed its determination to keep advocating for policy reforms to encourage economic revival in the country. Speaking at the occasion, Dr. Shimail Daud, President of the Rawalpindi Chamber of Commerce and Industry, said;

“The unnecessary power of the bureaucracy should be curtailed for the good of the country’s economy. The business community from all four provinces of the country is working together for the most implementable and serious budget proposals and this time it will definitely bring results.”

Moin Fudda is Country Director for CIPE Pakistan.

Political Parties Ask Business Community to Present Economic Manifesto for Pakistan

President Conference 1

The Chambers President’s Conference provides an excellent opportunity for business community leaders to focus on a single key agenda point – how to advocate for business-friendly policy reforms – This is the only such event in Pakistan that brings business community leaders together under one roof for intense and constructive discussions.” – Manzar Khurshid Shaikh, President, Rawalpindi Chamber of Commerce & Industry

For the fifth year in a row, on February 25-26, 2013, leaders of Pakistan’s business community assembled at Bhurban near Islamabad to participate at the Fifth All Pakistan Chamber Presidents Conference. Thirty-three chamber presidents representing large and small chambers from across Pakistan deliberated on how the next government should act on improving conditions for doing business in Pakistan. The Rawalpindi Chamber of Commerce and Industry spearheads this event in collaboration with CIPE Pakistan.

This year’s conference was unique as, for the first time in this history of Pakistan, representatives from five key political parties faced direct questions from business leaders. Pakistan Peoples’ Party, Pakistan Muslim League (N), Pakistan Muslim League (Q), Muttehda Qaumi Movement (MQM) and Pakistan Tehreek-e-Insaf (PTI) attended the meeting. There was an agreement from politicians that the next government must improve the conditions for doing business in the country, which will not only stop capital flight, but also provide employment opportunities.

Interestingly, they arrived on a consensus on the business community’s demand for an effective business-focused manifesto. It was agreed that after the elections, key political players will again sit down with business community leaders to get feedback on specific reform agenda.

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