A textile and financial magnate is a Pakistani icon. A risk-taker. A trailblazing entrepreneur. A poster boy for ‘Corporate Pakistan’. He has his ears close to the ground. He hears the thunder and the whispers. The recently announced results for his Bank have been outstanding all along. The only comparable tycoon could be the reclusive chairman of company ‘D’. He has not been seen in public for some time. His current whereabouts are unknown, except to the famous cricketer.
The other comparable tycoon could be the famous real estate developer who rules the waves. Notwithstanding their current net worth, none of them make it to the ultra-rich list – compiled separately by Forbes, Fortune, Economist, WSJ, and other copycat publications. To be taken seriously the bar is set at $10 billion. Musk, Gates, Bezos are at the pinnacle. China has produced so many ultra-high net worth (UHNW) individuals that it is impossible to keep track.
The main task of a country is to generate wealth. Only then can the country undertake the social reforms and provide the basics of life to its citizens. America has gone to the extreme with its Capitalistic Cannibalism.
The EU operates on benign Capitalism. It’s easy for them to do so – after all the European colonization since 1500 has generated enough wealth for these countries to last another 250 years. Pakistan must re-embrace Capitalism. The national slogan should be “Pakistan is open for business”. I started my corporate career in 1967 with Imperial Chemical Industries. At that time the 22 families were still in business, although the dark clouds were overhead.
As a salesperson for ICI, and 57 other British Manufacturing organizations, I was a vendor to most of these industries. They were smart business savvy, patriotic and nationalist. The “22 families” slogan was first floated by Dr Mahbub-ul-Haq at the platform of the Management Association of Pakistan. Much later, I was Executive Director of MAP (2000-9).
Dr Haq had a penchant for grand posturing. Later, under Zia-ul-Huq, he (Dr Haq) was the economic czar of Pakistan. Concurrently, he held the portfolio of Finance, Economic Affairs, and Commerce. Around 1969 a frenzy was whipped up against these 22 families. Pakistan People’s Party (PPP) came to power and virtually wiped out any “Mojo” for Business. In comparison, South Korea was also growing. The growth was spearheaded by 7 Chabals, Hyundai, LG, Samsung, etc. The 7 Chabals have formed the nucleus around which the South Korean economy has grown. Some South Korean numbers (pre-pandemic): Human Development Index 90.3. GDP $ 1.531 trillion. Per capita GDP $31,346. Export billion $ 572.9.
For entrepreneurs to grow mega-rich, the national economy must be big and growing bigger. Businessmen should be regarded as heroes. People who generate and produce the wealth should have a special status — from the taxi wala and pan wala to the corporate chieftains. The wealth produces vs the wealth consumers. Pre-Pandemic the world economy was estimated at US$ trillion 85. The top 5 economies were: $ trillion USA 19.5, China 12.23, Japan 4.82, Germany 3.69 and India 2.65.
On the Purchasing Power Parity, the index changes. Regional GDP is as follows euro area (19) $ trillion 13.66, other Asia $trillion 19.146. Latin America/Caribbean $5.247. It stands to reason that the richest people emerge from the rich economics. And there is a Rah-Rah Factor — the hero worship, the adulation. American celebrities usually are from showbiz, sports, and business. Lee Iacocca launched the Ford Mustang in 1962 and went on to lead Ford and later rehabilitate Chrysler to health by launching the Minivan. He became so popular that he was considering a presidential run. The current “Tech” tycoons in the USA are near demi-gods. In China, the entrepreneurs had become so rich and aspirational that the Communist Party had to undertake course correction 2 years ago. People like Jack Ma are currently keeping a low profile. After 1991, the rise of the oligarchs in Russia is a case study in wealth accumulation. The oligarchs (100 or so) control assets in excess of US$ one trillion. The Accord reached between Vladimir Putin and the oligarchs, for mutual support, is worthy of a historic treaty. How the current Ukraine crisis pans out is anybody’s guess. The Celebrities of Pakistan are casting informed opinions. I would listen to them. After all, Mahira Khan knows more than the Foreign Office.
Back to Pakistan! The entrepreneurs of Pakistan are still not comfortable. The nationalization fear is still embedded in their psyche. If the business becomes too large, it is open to attack. The famous hotel entrepreneur had to take up residence in Dubai. I know one famous family from yesteryears who believe in setting up a number of small units rather than 2 or 3 large entities. Below the radar, low profile. Given the wealth that Pakistani citizens have accumulated, if fully deployed, can make a substantial difference to the economic trajectory of Pakistan.
(The writer is a former Executive Director, Management Association of Pakistan)
Copyright Business Recorder, 2022