Corporate sector of Pakistan

The Corporate sector of Pakistan (otherwise attributed as the Corporatization; or/ simply referred to as the Pakistan Inc.) is an elite business sector expanded in financial cities of Pakistan, and a policy measure programme in the economic period of Pakistan. This programme is also regarded as "Pakistan Inc.", which is a drive common term used by the mass-media of Pakistan to refer to the corporate sector of the nation.[1][2][3][4] This policy measure programme was first conceived, envisioned and implemented then-Finance Minister Ghulam Ishaq Khan and President General Zia-ul-Haq in order to lay the foundation of Western styled corporate sector. President Zia-ul-Haq issued the decree, the Companies Ordinance No. 1984, in 1984 that legally allows a variety of formations in the mixed economy of Pakistan.

The programme was started on 8 October 1984 in a vision to promote Western-styled corporate sector, and business activities development in Pakistan.[5] The corporate sector came in direct response to nationalization programme of executed Prime Minister Zulfiqar Ali Bhutto and the Pakistan Peoples Party to promote . This programme was integrated in Privatization programme of Prime minister Nawaz Sharif in 1990 who gave free hand to private sector to expand the economical activities in the country. The corporate sector remained to expand in Prime minister Benazir Bhutto's government who promoted the nationalization and privatization at once. In 2004, in a programme initiated by Prime minister Shaukat Aziz, the corporate sector further enhanced and matured; it had built a strong and sizeable sector in the financial hubs of the country.

Under Aziz, many of state-owned megacorporations along with private sector had been registered in stock exchanges of the country in order to promote business competition in the country.

Growth trend

The Securities and Exchange Commission of Pakistan has registered 920 new companies in the first quarter of 2005. The Company Registration Office at Lahore registered the most number of companies at 324, CRO Karachi 285 companies, and CRO Islamabad 211 companies.

Of the 920 companies, 898 were limited by shares comprising 21 public unlisted companies, 840 private companies, and 37 single member companies. In addition, the Commission also registered 11 foreign companies, 9 associations not-for-profit and 2 companies limited by guarantee. Total authorized capital and paid up capital of the companies limited by shares amounted to Rs.50 billion and Rs.2 billion, respectively.

The services sector recorded 161 new incorporations, followed by 121 in trading, 64 in Information Technology, 59 in communication, 50 in fuel and energy, 49 in the real estate development, 38 in construction and 37 in textile sector. The SECP encourages and facilitates corporatisation of all businesses so that the corporate sector contributes towards the economic development of the country.

As of 2005, the Board of Investment estimates that there were 43,965 corporate enterprises registered in Pakistan as detailed below:

Companies Incorporated 43,618 Financial Services Companies 244 Insurance Companies 56 Banking Companies 47
Private companies limited by share 39,628 Modaraba companies 64 Local general insurance companies 48
Public non-listed companies 2,214 Investment advisors 57 Local life insurance companies 3
Public listed companies 687 Modarabas 47 Foreign general insurance companies 3
Foreign companies 643 Close-end mutual funds 37 Foreign life insurance companies 2
Welfare organisations and associations 357 Leasing companies 30
Trade companies limited by guarantee 83 Asset management companies 4
Unlimited companies 6 Open-end mutual funds 3
Credit rating companies 2

See also

References

  1. ↑ PAKISTAN Inc
  2. ↑ Pakistan Inc wants to dance with India Inc. Will the Indians oblige?, The Economic Times
  3. ↑ Pakistan, Inc.: Indians not allowed, The Economic Times
  4. ↑ Pakistan Inc, Pakistan Today
  5. ↑ E-Govt., Electronic Government. "The Companies Ordnance Act, 1984" (PDF). Security and Exchange Commission. Government of Pakistan. Retrieved 12 June 2012.

Documentation

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