Top Business Families in Pakistan

by: Rizwan Qamar

Economic development as a conscious mechanism in Pakistan is a recent post colonial phenomenon.

Growth happens when policy and management at every level in the economy turns entrepreneurial. Easterly (2003 and 2005)

Entrepreneurship need not always be wealth-creating and growth. Tulllock (1989),

Krueger (1974) have shown that entrepreneurship can be directed towards the accumulation of wealth through unproductive enterprise.

Today we found many enterprises groups in our country including some important as:

Saigal group Dewan group Habib group etc. The domestic production of

manufacturing good was established and flourished in Ayub Khan’s era of mid 50’s.

He gave extensive incentives to the local business man.

This led to the development of a class of industrialists, later known notoriously as the twenty-two families

“The Ayub Khan era was the 22 families’ heyday. They flourished mightily in that era, setting up one industry after another and expanding into sector after sector, until it seemed that they virtually controlled the economy. Banking, insurance, textiles, consumer goods - everything

was grist for their mill.” (Omer)

Later on the nationalization by Bhutto become a tragic story for these wealthy families

After coming in power from one of those rich family into politics (Sharif Family) they started returning back these assets to them.

Rejuvenation of business scenario in private sector

Business friendly era during1990’s As a result new business families emerged

and the existing families resuscitated themselves

Military regime of Pervaiz Mushraf continued the process of liberalization by privatizing the state-owned enterprises

Current Govt. is also following the same policies of Privatization.

1947-58

Era of emerging exchange rate and trade policies and import substitution industrialization.

1953-64

Virtually all imports into Pakistan were regulated by some form of quantitative controls

1950-55

Large scale sector experienced phenomenal growth rates of over 20%

1950’s Introduction and active functioning of “Import Licensing System”

1958-68

The “decade of development”, industry experienced a relatively higher growth rate

1958-70

65% of total loans disbursed by PICIC, went to 37 monopoly houses, with the largest 13 of these accounting for about 70% of the loans

1972-77

Bhutto’s regime characterized by Nationalization. Caused some dent in elite power.

Still however banks continued to lend on the basis of political and governmental influence.

1977-88

Zia years of encouragement of private sector,preference still given to large scale sector

1988-present

Privatization and liberalization of state owned enterprisesInto the private sector. (rich families)

Short-listing Pakistan's most influential business magnates or Groups has never been an easy task

Among these gifted individuals, you will find politicians-turned-businessmen, businessmen-turned-politicians or even the businessmen-cum-politicians.

Thus we take the pride of announcing these names with focusing on Business men’s only

Worth: £1.25b ($2.5billion) Mansha has around 40 companies on board

Nishat Textile Nishat Power MCB Bank D. G Khan Cement Adamjee Inssurance

Nishat Group was country's 15th richest family in 1970, 6th in 1990 and Number 1 in 1997

He give the bid for UBL He also offer a bid PSO along with Patronas There is no stopping Mansha and he is still

on the move. The Govt. of Pakistan has Awarded Sitara-e-

Imtiaz (The Honor of Distinction) to Mansha

Worth: £750m ($1.5billion) The Bestway Group started in 1976 with its

first Bestway cash and carry warehouse opened in London

Bestway Group ventured into Pakistan's huge the cement business in 1995 and set up cement manufacturing plant in Pakistan at a cost of $120 million.

They also acquired a 25.5% stake in United Bank Limited in 2002

He is still on the move!

Habib is a prominent Muslim Khoja business family in Pakistan

A profile of Rafiq Habib in an Economic Review stated that the Habib group has owned over 90 companies

Habib group's most famous and successful subsidiary is its Banking and Finance division.

Indus Motors assembling Corolla cars and many dozens of units in sectors such as jute, paper sack, minerals, steel, tiles, synthetics sugar, glass, construction, concrete, farm autos, banking, oil, computers, music, paper, packages, leasing and capital management

Habibs today are headed by Rafiq Habib and Rashid Habib in two distinct groups

What makes them extremely influential players of all times is the fact that for dozens of top businessmen today, Habib were a myth once.

Having many companies outside Pakistan

Saddaruddin Hashwani is Chairman Hashoo Group with a net worth of Worth: £550m ($1.1billion)

Hashwanis are involved in trading of cotton, grain and steel

Today, this group has excelled in export of rice, wheat, cotton and barley. It owns textile units, besides having invested billions in mines, minerals. hotels, insurance, batteries, tobacco, residential properties, construction etc

Worth: £425m ($850) Industry pioneer of the Saigol dynasty in 1890 was Amin

Saigol who established a shoe shop that eventually transformed into Kohinoor Rubber Works

In 1948, Saigols established the Kohinoor Textile Mills with a cost of Rs 8 million

They bought the United Bank in 1959 and then witnessed five of their units getting nationalized

They lived in Saudi Arabia during the Bhutto regime Their portfolio includes Kohinoor Textile Mills, (PEL),

Kohinoor Power, Kohinoor Energy, Kohinoor Motors etc

Dewan Mushtaq Group is one of the Pakistan's largest industrial conglomerates in sectors like polyester acrylic fiber, manufacturing and automotives

Dewan Farooqui Motors assembles around 10,000 cars annually under technical license agreement with Hyundai and Kia Motors of Korea

The Dewan Salman Fiber is the pride of this empire as it ranks 11th in the world in total production capacity

They also have the franchise license for BMW in Pakistan and now Rolls Royce showrooms.

The group owns three textile units, a motorcycle manufacturing concern and the largest sugar unit in the country

Mr Yakoub is a prominent Pakistani expatriate businessman based in Dubai.

He is the president ARY group ($1.5Billion turnover) and World Memon Organization (WMO)

Pakistan's biggest media barons controlling around 7 channels

Besides this he has a huge property holdings in Karachi, Islamabad and Dubai amounting to over $200m

He is major in the gold market also having around 20 outlets in Asia.

Not having the biggest Business like Men They were having less opportunities Mainly engaged in Clothing, Designing,

Boutiques, Beauty Salons, Jewelry etc Here we will discuss some one else who

really did something daring

Varan Tours, Sadar , Rawalpindi She established a transport company initially with

only one bus Then No increased to 75 She dispel the notion that woman entrepreneurs

restrict themselves to certain traditional businesses

Big problem was inconsistency in the transport policies of successive governments

Along with the profit motive, she wanted to start a quality transport service for the working women

Pappasalis, Islamabad She did a Diploma in Hotel and Restaurant

Management from the Conrad Hilton College, University of Houston

After doing many jobs, she realized that there is no future in seeking a good job.

She started her own first original Italian restaurant in Islamabad

It was as a big risk, as Islamabad was not an easy city for a food business

She won a legal case against her Business

Robina and her family underwent severe financial distress 10 years ago

She then started a business of assembling toys, plastic clips and artificial jewelry with the help of her father and brother.

The crucial step was to get her first order, which proved to be a really difficult task.

She hired two women and trained them to market her products

The business has graduated from its infancy stage I have built a network now on the basis of the trust that we have developed over the last ten

years

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