Karachi, the first capital city of the newly independent Islamic republic of Pakistan; the city of birth of the founder of the nation Quaid-e-Azam, Mohammad Ali Jinnah, and the only port city of the nascent country, was deprived of its status in the 1960s.
Initially, Rawalpindi served as an interim Capital from 1959 to 1976. Officially, the capital shifted to Islamabad on 14th August, 1967. This movement was a consequence of whims of an individual (or maybe few individuals). It is recorded in history that President Ayub for health reasons preferred living in northern Pakistan and also he found the sea climate of Karachi unhealthy.
The decision to move the capital city to a place/area towered by the overlooking Margalla Hills was also dominated by reasons of national security. God alone knows if that be the truth. The fact remains that the city of Karachi was deprived of its status given to it by no less than the father of the nation.
Nations that distorted history through such movements have largely revisited the decision — from Bonn to Berlin is a classic case in point. Bonn was an example of burying history and restoration of Berlin is a resurrection of truthful history.
There are many claimants to how they helped baptise and christen the new city’s name as Islamabad. The best I have read is the claim of Pillo Mody, a childhood friend of Zulfiqar Ali Bhutto (Bombay days) who in his book, ‘My Friend Zulfi’ has stated that ZAB took him to meet President Ayub and during the course of conversation.
Ayub mentioned about his intention of shifting capital to a brand new city which as per him was yet to be named, and he spontaneously suggested ‘Islamabad’. President Ayub fell for it for good reasons; it had religious connotation and appeal. He thought it would go down well with people, and it did!
By an administrative action, the political capital was shifted but nothing could be done to deprive Karachi of its status as the only “Commercial Capital” of the country. The city continues to contribute the most to the GDP of the country, despite the treatment that is meted out to it. (On a lighter note, to change the direction and placement of the Arabian Sea up north was considered to be a difficult option, maybe!! Otherwise it would have been done).
Even the die-hard opponents to Karachi’s importance admit without reservation that if Karachi spins its economic wheels then only will the country’s economy moves forward. Any stoppages or impediments only go towards either damaging or slowing down of the economic impetus.
All this is not some new information, but only a recount — and everyone knows the significance of this city, to Pakistan’s economic potential and growth; so why is there a complete disdain to its current plight? The answers are aplenty — from serious deliberate ignorance to alleged theories of conspiracy to defang its otherwise literate population that has a very high BAQ (Business Attitude Quotient) — a new indices this scribe uses to describe and distinguish Karachi from other cities.
Karachi, till about the late 1970s, was still a promising city of South Asia. ‘In the decade of development’, it played the most significant role.
The country was recognised as the ‘rising star of South Asia’, largely due to the active economic participation of Karachi. In my childhood years, Karachi was Hong Kong — a city of lights and neon signs. Can we not let the laughter that echoed in its air be returned back to its people? All roads of Pakistan must lead to the port/commercial capital of Pakistan — Karachi. Will this become a pipe dream?
However, starting with the mid 1980s, when with the creation and promotion of ethnic politics in the city severely damaging riots followed, that destroyed irrevocably the social fabric of the otherwise city of peaceful coexistence.
The original residents of Sindh Province have always welcomed people from all over with open arms. They showed no resistance to either the migrants from India or from the multitude of job seekers that descend upon it from the length and breadth of Pakistan. The city was a great melting pot of tolerance, where the ensuing culture was of to live and let live.
Political intrigues and machinations annihilated the semblance of peaceful co-existence. Each ethnic group (party) killed the other mercilessly. Brothers were rendered enemies overnight.
The city has not recovered from that political divide — if anything, it has further splintered into more smaller groups, which are no more than an irritating presence of nuisance value.
Beginning from the decade of 1950s, Karachi has been what the ‘Somnath Temple’ was for Mahmoud Ghaznavi — it has been politically, socially and economically plundered with brute force and with ease.
The flight of domestic capital began and naturally so because entrepreneurs need peace and security to make any business flourish. To make matters worse, many industrialists moved their production facilities to Bangladesh. This was enough salt to be rubbed into the wounds of having earlier lost East Pakistan.
(To be continued)
Copyright Business Recorder, 2026
The writer is a Senior Banker & Freelance Contributor