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Amir Zia: Wasted Energies

Amir Zia: Wasted Energies

Wasted Energies

By Amir Zia
Weekly Money Matters
The News
October 3, 2011

While the KESC-SSGC dispute is taking its toll on the people of Karachi, fundamentally it remains a policy issue, which the government needs to resolve

It is a tussle between two vital public utilities – the privately-run Karachi Electric Supply Company (KESC) and the state-run Sui Southern Gas Company Limited (SSGC) – which daily punishes millions of residents of the teeming port city of Karachi in the form of frequent and prolonged power outages.

The KESC accuses the SSGC of “unjust and inadequate” supply of natural gas -- the cheap and clean fuel source for power generation. The KESC management says that against the “approved quota” of 276 MMCFD of gas, it is being supplied only 160 MMCFD for power generation, which remains well below its needs. This forces the KESC to use three time costlier furnace oil for power generation, which makes its operations financially unfeasible and results in a sharp increase in tariffs.

The SSGC management says that it has no formal agreement with the KESC for the gas supply. “Without an agreement, we are not bound to ensure gas supplies to the KESC,” says SSGC’s Managing Director Azim Iqbal Siddiqui. “They (the KESC) keep referring to the ECC (Economic Coordination Committee) decision, but there is nothing in writing. But still we keep supplying gas to the power utility in the larger public interest.”

The problem between the two companies is aggravated due to the fact that the KESC owes SSGC a staggering 30 billion rupees worth in outstanding dues, which is almost one-fourth of the gas company’s total balance sheet, according to SSGC officials.

However, the KESC says that its total payable to SSGC remains around 23.3 billion rupees to-date. The power utility remains unable to clear this outstanding amount because of its dues worth 81.5 billion rupees out of which nearly 50 billion rupees are owed by the government and its various departments. The Karachi Water & Sewerage Board alone owes 15 billion to KESC. "But the KESC has paid SSGC 22.6 billion rupees against the gas purchase of 25.6 billion over the last 12 months," says Ghufran A. Khan, KESC’s chief marketing and communication officer.

The issue of non-payment of dues by one energy company to the other is part of a much larger problem of accumulated circular debt worth 284.4 billion rupees as on September 14, 2011, according to government figures. This is having a crippling affect on the entire energy sector.

Siddiqui, the SSGC’s managing director, says that when KESC was a state-run company, there was no need for a written agreement or guarantees. But being a private company now, the KESC has to operate under some framework, he said.

The cash-strapped SSGC has to perform a high-wire act to clear dues of its suppliers – especially the foreign oil and gas companies operating in Pakistan, including the ENI and British Petroleum, which have been given sovereign guarantees by the government.

The KESC and SSGC managements have a long list of complaints against one and another, but the fact of the matter remains that the current crisis stems from poor management and planning and lack of vision in the energy sector, which is now hurting each and every segment of society and taking its toll on the country’s already battered economy.

The way this government has been handling the energy sector in general and affairs of the KESC in particular sends negative signals to foreign investors around the world, underling the country’s inconsistent policies and unpredictable pattern of decision-making. This comes on top of the chronic problems of political instability, terrorism, crime and insecurity which infest Pakistan today and discourages both foreign and local investment.

Those foreign investors, who have somehow landed in our country despite all these odds, are given a rough deal. The KESC, which earlier faced the wrath of government-backed trade unions for months that adversely affected its power generation, distribution and maintenance operations, is just one example of how foreign investors are being treated in the country. The government assured the KESC a gas supply of 276 MMCFD for its existing plants when the Dubai-based Abraaj Capital took its management control in late 2008, and later committed an investment of $361 million. The government also promised an additional 130 MMCFD for KESC’s under construction 560 megawatts capacity power plant worth $450 million, but failed to deliver on any of these commitments.

The SSGC says that lower gas production from some fields forced it to slash KESC’s supplies. On paper, it may seem a fair excuse, but a deeper analysis shows that the woes of KESC and the people of Karachi are linked to the highly flawed gas allocation policy for private captive power plants. It is a known fact that most captive power plants, which are run on low-cost gas, benefits industries of the high, mighty and politically connected of this land. These industrialists get uninterrupted gas supplies on lower rate than the KESC.

Considering the fast depleting gas fields, the government needs to review its gas allocation policy keeping in mind the interests of the larger section of the population rather than small pressure and interest groups. Yes, industries are important and they need uninterrupted power supplies to keep the wheels of the economy moving, but this needs to be done in a fair and transparent manner and certainly not at the cost of the larger public interest.

According to estimates, SSGC supplies around 300 MMCFD of gas to commercial entities and industries, including around 175 MMCFD to captive power plants in Karachi alone. The quantum of gas supply remains higher than that of the KESC, which has to meet the electricity demands of more than 15 million people of Karachi.

The KESC management says that if an additional 175 MMCFD gas is diverted to its power plants, the utility would be in a position to significantly reduce power outages in Karachi and stem the rising tide of electricity bills.

“This would also help the government to significantly reduce payment on account of Tariff Differential Claim that in turn would help to eliminate the ongoing circular debt crisis,” said Ghufran A. Khan of KESC.

It is not just the KESC, but the entire power sector that has been suffering because of the controversial gas allocation policy despite the fact that it pays the highest gas tariff.
The industrialist lobby maintains that they had been forced to go for captive power because of KESC’s inability to ensure electricity supplies, while the SSGC says that it has to honour its commitment for the gas supply to these plants.
If the government wants to mitigate the negative fallout of the scarce gas resources, it will have to review and prioritize the use of gas and ensure parity of price between the power sector and the captive power plants.

On June 30 this year, the ECC decided to implement the uniform gas load management policy and observe two days per week gas holiday in industries and CNG stations with a view to divert gas supplies for power generation. But this decision was never implemented due to the pressure of the vested interests.

“It is ironic that the KESC’s flagship 560 MW new power plant is suffering and its testing phase is being compromised due to insufficient gas supply while industries and CNG stations are enjoying uninterrupted supplies,” said Khan of the KESC.

The SSGC supplies 80 MMCFD gas to 670 stations, which is around eight percent of its total supplies of 1.1 billion MMCFD. The Sui Northern Gas Pipelines Limited (SNGPL) supplies gas to nearly 4,000 CNG stations and allocates much higher quota of gas for the transport sector.

The government needs to rethink and revisit its flawed policy of encouraging the use of CNG for road transport purposes. The use of CNG for passenger buses and public transport make sense as it benefits the low-income group and remains environmentally friendly. But the policy of subsidizing, the fuel cost of the middle and upper middle classes and their cars needs to be revisited and changed. One way is to increase the CNG price and bring it at par with that of petrol. But will the vested interests allow the government to take any right steps?

While the KESC-SSGC dispute is taking its toll on the people of Karachi, fundamentally it remains a policy issue and not a row between two institutions on small technical matters, which the government needs to resolve. So far it has only allowed matters to deteriorate. That’s what we call the tragedy of delay in typical Pakistani style.

The Threat of Civil Unrest in Pakistan and the Davis Case

The Tehrik-i-Taliban Pakistan (TTP) issued a statement demanding that the government of Pakistan execute U.S. government contractor Raymond Davis or turn him over to the TTP for judgment. Davis, a contract security officer for the CIA, has been in Pakistani custody since a Jan. 27 incident in which he shot two men who reportedly pointed a pistol at him in an apparent robbery attempt.

Pakistani officials have corroborated Davis’ version of events and, according to their preliminary report, Davis appears to have acted in self-defense. From a tactical perspective, the incident appears to have been (in tactical security parlance) a “good shoot,” but the matter has been taken out of the tactical realm and has become mired in transnational politics and Pakistani public sentiment. Whether the shooting was justified or not, Davis has now become a pawn in a larger game being played out between the United States and Pakistan.

When one considers the way similar periods of tension between the Pakistanis and Americans have unfolded in the past, it is not unreasonable to conclude that as this current period plays out, it could have larger consequences for Davis and for American diplomatic facilities and commercial interests in Pakistan. Unless the Pakistani government is willing and able to defuse the situation, the case could indeed provoke violent protests against the United States, and U.S. citizens and businesses in Pakistan should be prepared for this backlash.

Details of the Case

One of the reasons that the Pakistanis have been able to retain Davis in custody is that while he may have been traveling on a “black” diplomatic U.S. passport, not everyone who holds a diplomatic passport is afforded full diplomatic immunity. The only people afforded full diplomatic immunity are those who are on a list of diplomats officially accredited as diplomatic agents by the receiving country. The rest of the foreign employees at an embassy or a consulate in the receiving country who are not on the diplomatic list and who are not accredited as diplomatic agents under the Vienna Convention are only protected by functional immunity. This means they are only protected from prosecution related to their official duties.

As a contract employee assigned to the U.S. Consulate in Lahore, Davis was likely not on the diplomatic list and probably did not enjoy full diplomatic immunity. He was probably considered a member of the administrative or technical staff. Protecting himself during a robbery attempt would not be considered part of his official function in the country, and therefore his actions that day would not be covered under functional immunity. So determining exactly what level of immunity Davis was provided will be critical in this case, and the information provided by the Pakistani Foreign Ministry will have a big impact on the Pakistani judge hearing the arguments.

In all likelihood, Davis was briefed regarding his legal status by his company and by the CIA prior to being assigned to post. He also would have been told that, while he had limited immunity, the U.S. government would do its best to take care of him if some incident occurred. However, it would have been made clear to him that in working as a protective contractor he was running a risk and that if there was an incident on or off duty, he could wind up in trouble. All security contractors working overseas know this and accept the risk as part of the job.

At the time of the shooting, of course, Davis would not have had time to leisurely ponder this potential legal quagmire. He saw a threat and reacted to it. Undoubtedly, the U.S. government will do all it can to help Davis out — especially since the case appears to be a good-shoot scenario and not a case of negligence or bad judgment. Indeed, on Feb. 15, U.S. Sen. John Kerry flew to Islamabad in a bid to seek Davis’ release. However, in spite of American efforts and international convention, Davis’ case is complicated greatly by the fact that he was working in Pakistan and by the current state of U.S.-Pakistani relations.

Tensions

Over the past few years, relations between the United States and Pakistan have been very strained. This tension has been evidenced not only by public opinion but also by concrete examples. For example, in mid-December, the CIA station chief in Islamabad was forced to leave the country after his name was disclosed in a class-action lawsuit brought by relatives of civilians killed by unmanned aerial vehicle strikes in the Pakistani tribal badlands.

It was no coincidence that the Pakistani lawsuit against the CIA station chief occurred shortly after the head of Pakistan’s Inter-Services Intelligence directorate, Lt. Gen. Ahmed Shuja Pasha, was accused in a civil lawsuit of being involved in the 2008 attacks in Mumbai. The suit was brought in U.S. District Court in Brooklyn by family members of the American rabbi killed alongside his wife in Mumbai by Pakistan-based Islamist militants.

Like Iraq, Pakistan is a country that has seen considerable controversy over American security contractors over the past several years. The government of Pakistan has gone after security contractor companies like DynCorp and its Pakistani affiliate InterRisk and Xe (formerly known as Blackwater), which has become the Pakistani version of the bogeyman. In addition to the clandestine security and intelligence work the company was conducting in Pakistan, in 2009 the Taliban even began to blame Xe for suicide bombing attacks that killed civilians. The end result is that American security contractors have become extremely unpopular in Pakistan. They are viewed not only as an affront to Pakistani sovereignty but also as trigger-happy killers.

ASIF HASSAN/AFP/Getty Images

Activists from the Pakistani Islamist party Jamaat-e-Islami during a protest rally in Karachi on Feb. 11

And this is the environment in which the Davis shooting occurred. Even though some Pakistani civilians apparently came forward and reported that they had been robbed at gunpoint by the men Davis shot, other Pakistani groups like the Jamaat-ud-Dawah (JuD) — the successor to the Lashkar-e-Taiba, which was presumably banned by the Pakistani government — have demanded that Davis be hanged. The Jamaat-e-Islami (JeI), an Islamist political party, has also demanded that Davis be hanged and has called for large protests if he is released without a court order. As noted above, TTP spokesman Azam Tarik made a statement demanding that the Pakistani government either hang Davis or hand him over to them. Interest in this issue is not just confined to Islamist groups. There are some right-wing conservative nationalists and even some secular liberals who are asking: “If the United States can give CIA shooter Mir Amal Kansi the death penalty, why can’t Pakistan do the same thing to Davis?”

The result is that the Davis case has aroused much controversy and passion in Pakistan. This not only complicates the position of the Pakistani government but also raises the distinct possibility that there will be civil unrest if Davis is released.

Civil Unrest in Pakistan

Like many parts of the developing world, civil unrest in Pakistan can quickly turn to extreme violence. One example that must certainly be on the minds of the security personnel at the U.S. Embassy and the U.S. consulates in Pakistan is the November 1979 incident in which an enraged mob seized and destroyed the U.S. Embassy in Islamabad. While there were only two Americans killed in that incident — a Marine security guard shot as he stood on the roof of the embassy and an Army warrant officer who died when an apartment building on the embassy compound was torched — the fire that the mob set inside the building very nearly killed all the employees who had sought shelter in the embassy’s inner safe-haven area. Two local Pakistani staff members were also killed in the fire.

The 1979 attack was said to have been sparked by reports that the U.S. government was behind an assault on the Grand Mosque in Mecca by Saudi militants the day before. In reality, the mob that stormed and torched the U.S. Embassy was at least tolerated, if not orchestrated, by the Pakistani government, which was angry that the United States cut off financial aid to the country in April 1979. Not only did the Pakistani government facilitate the busing of large numbers of protesters to the U.S. Embassy, its security forces also stood aside and refused to protect the embassy from the onslaught of the angry mob. The embassy assault was Pakistan’s not-so-subtle way of sending a message to the U.S. government.

But U.S. diplomatic facilities have not been the only targets of civil unrest in Pakistan. Following the assassination of former Pakistani Prime Minister Benazir Bhutto, angry mobs attacked not only security forces but also foreign businesses, banks, shops and gasoline stations in the cities of Karachi, Rawalpindi, Islamabad and Quetta and throughout the province of Sindh, Bhutto’s home province.

Similarly, in February 2006 during the unrest generated by the Prophet Mohammed (SAW) cartoon fiasco, mobs in Islamabad, Peshawar, Karachi and Lahore attacked a wide range of Western business targets. The worst of this violence occurred in Lahore, where a rampaging mob burned down four buildings housing the four-star Ambassador Hotel, two banks, a KFC restaurant franchise and the regional office of Telenor, a Norwegian cell phone company. The protesters also damaged about 200 cars and several storefronts and threw stones through the windows of a McDonald’s restaurant, a Pizza Hut and a Holiday Inn. Lahore, incidentally, is where the Davis shooting occurred.

Forecast

Based on this history, the current tension between the United States and Pakistan, public sentiment in Pakistan regarding U.S. security contractors and the possibility of groups like JuD and JeI attempting to take advantage of the situation, there is a very real possibility that Davis’ release could spark mob violence in Pakistan (and specifically Lahore). Even if the Pakistani government does try to defuse the situation, there are other parties who will attempt to stir up violence.

Due to the widespread discontent over the issue of U.S. security contractors in Pakistan, if protests do follow the release of Davis, they can be expected to be similar to the protests that followed the Prophet Mohammed (SAW) cartoon case, i.e., they will cut across ethnic and sectarian lines and present a widespread threat.

Physical security measures such as concrete barriers, standoff distances and security cameras can add to a facility’s defenses against a terrorist attack, but they really do not pose much of an obstacle to an angry mob intent on overrunning a property — especially if local and indigenous security forces are unwilling or unable to intervene in a timely fashion and the mob has the time and latitude to assault the facility for a prolonged period. The protesters can scale barriers and their overwhelming numbers can render most security measures useless. Barriers such as hard-line doors can provide some delay, but they can be breached by assailants who possess tools and time.

Additionally, if protesters are able to set fire to the building, as happened at the U.S. Embassy in Islamabad in 1979, a safe-haven can become a death trap, especially if the mob can take control of the secondary escape hatch as it did in that incident, trapping the Americans inside the safe-haven.

Commercial facilities are, by their very nature, far more accessible — and far more vulnerable — to mob violence than diplomatic facilities. A commercial facility can present a tempting soft target to those who wish to attack a symbol of America without tackling a hard target like a U.S. diplomatic facility, which is designed and built to comply with stringent security standards. If a mob storms a hotel, the local staff will be unable to protect the guests, and conceivably could leave the guests to fend for themselves in the confusion and chaos of a riot. Even worse, they could even facilitate attacks against Americans by pointing them out or providing their room numbers.

Any person identified as an American by such an angry mob could quickly find himself or herself in dire danger. While Americans working for the U.S. government can expect to have some security assistance in getting back to the embassy or to another secure location, non-officials may be left to fend for themselves, especially if they are not registered with the embassy. Non-officials are also not required to abide by the same security rules as officials. While many non-officials consider the U.S. State Department’s security rules to be onerous at times, during troubled periods these conservative security rules often serve to keep diplomats out of harm’s way.

Once a mob attacks, there often is little that can be done — especially if the host government either cannot or will not take action to protect the facility being attacked. At that point, the focus should be on preventing injuries and saving lives — without regard to the physical property. In most cases, when a mob attacks a multinational corporation, it is attacking a symbolic target. KFC restaurants, for example, have been frequent targets of attacks in Pakistan because of the company’s association with the United States. In many cases, multinational franchises such as KFC and even some hotels are owned by locals and not Americans, but that does not matter to the mobs, which see nothing but a U.S. symbol.

When an issue such as the Prophet Mohammed (SAW) cartoons, the Bhutto assassination or the release of Raymond Davis spirals into violent protests, the only real precaution that many companies can take is to escape the area and avoid loss of life. The best defense is to use good intelligence in order to learn about the protests in advance, to track them when they occur and then to evacuate personnel before they can be affected by the violence.

U.S. diplomatic facilities and business interests in Pakistan are almost certainly reviewing their contingency plans right now and planning for the worst-case scenario. During such times, vigilance and preparation are vital, as is a constant flow of updated intelligence pertaining to potential demonstrations. Such intelligence can provide time for an evacuation or allow other proactive security measures to be taken. With the current tension between Pakistan and the United States, there might not be much help coming when the next wave of unrest erupts, so keeping ahead of potential protests is critically important.

The Threat of Civil Unrest in Pakistan and the Davis Case is republished with permission of STRATFOR.

Digital Ecosystem Convergence between IT, Telecoms, Media and Entertainment: Scenarios to 2015

Digital Ecosystem Convergence between IT, Telecoms, Media and Entertainment: Scenarios to 2015 

To understand how the Digital Ecosystem could plausibly evolve in the coming 10 years, we need to look at the critical uncertainties and those factors shaping the ecosystem’s evolution. 

The scenarios leading to 2015 reflects mixed realities with convergence from the nexus of telecom, media and entertainment, redefining interactions in the socio-economic and political spheres.

 

Broadband adoption, technological advances and decreased operating costs have pushed the IT, Telecommunications and Media and Entertainment industries into a period of great flux. As they converge, they are forming a space we could call the Digital Ecosystem. This emerging Digital Ecosystem is generating many risks and challenges for government policies, as well as presenting new opportunities for creating social and economic value. Just as any healthy ecosystem enables its stakeholders to interact to the benefit of all, a healthy Digital Ecosystem will simultaneously enable its commercial participants to create economic value and deliver well-being to society. The critical uncertainties we focus on are user empowerment, market structure, market regulation, Intellectual Property Rights, security and privacy.

The Digital Ecosystem is forming as the Information Technology, Telecommunications, and Media and Entertainment industries converge, users evolve from mere consumers to active participants, and governments face policy and regulatory challenges. Its stakeholders are questioning the shape and size it will take. They are aware of their inter-dependencies necessary to enable the Digital Ecosystem to evolve into a healthy environment that both creates economic value and adds well being to society.

US Ambassador Munter Hosts the Record Breaking Pakistan Fast Growth 25 Winners

DSC_0255
Originally uploaded by U.S. Embassy Pakistan

The Pakistan 25 entrepreneurs take the world stage

The Pakistan 25 entrepreneurs, who broke records for eight countries in the Middle East, South Asia and Africa for year-over-year growth, stepped onto the world stage at an event hosted by US Ambassador Cameron Munter. To recognize the achievements of the entrepreneurs, the Ambassador was joined by Pakistan’s Minister of Finance, Revenue, Economic Affairs and Statistics Dr. Adbul Hafeez Shaikh and AllWorld Co-Founder Anne Habiby.

The Pakistan Fast Growth 25, a ranking of fast growth entrepreneurial companies, is a program of AllWorld Network in partnership with Harvard Business School Professor Michael Porter and was launched in collaboration with JS Bank Limited. Also joining Ambassador Munter was JS Bank’s Director of Communications, Knowledge Partner Mishal (Pvt.) Ltd. and Pakistan 25 Nominating Partners from SME Committee of FPCCI, Rawalpindi Chamber of Commerce & Industry, TiE-Lahore, and P@sha.

Ambassador Munter stated, “Tonight we have come together to celebrate the 25 fastest growing companies in Pakistan. They represent companies in areas as diverse as telecommunications, agriculture, and textiles. They represent high growth rates and the creation of 12,000 jobs. But most importantly, they represent innovation and entrepreneurship – and a bright future for this great nation.”

Finance Minister, Dr Abdul Hafeez Shaikh, commented on the occasion, “the power of the Pakistan 25 is to surface new horizons for growth, to quicken the pace of economic development, and to be a catalyst for transparency and progress. The AllWorld Pakistan 25 Entrepreneurs set a new benchmark for entrepreneurship and progress in Pakistan as well as in other developing countries.”
As a group, the Pakistan 25 broke AllWorld records for eight countries, posting a 81% annual growth rate between 2007 and 2009 with an average size of 400 employees per company.

“The dynamic Pakistan 25 entrepreneurs are the country’s economic heroes and tonight they step on to the world stage as Pakistan’s Ambassadors of progress and prosperity,” says Anne Habiby, co-founder of AllWorld Network. “Building on the stunning success of the Pakistan 25, we are inviting all growth entrepreneurs to apply to the Pakistan 100 to gain the worldwide visibility they need and deserve.”

Peter Tichansky, President of Business Council for International Understanding, an AllWorld Global Partner who helped initiative the Pakistan 25 said “Pakistanis needs jobs. These entrepreneurs and others like them may be Pakistan’s best hope in creating them. As AllWorld winners, they become role models for aspiring entrepreneurs throughout the country.”

In August all private companies from any part of the country was invited to apply. Close to 100 companies competed for a spot on the Pakistan 25. Only the fastest growing private companies make the list, and each company is credentialed by AllWorld based on strenuous international standards. Applicants much complete a detailed survey of business strategy and operations and provide audited statements or an audit letter to verify revenues. While only a ranking of 25 companies, 30 companies were credentialed as AllWorld Entrepreneurs. Twenty-four companies older than three years old made the ranking and an additional 6 younger companies are Companies to Watch. Of the 30 companies that made the Pakistan 25, Lahore had the most number with 12 winners and Karachi came in a close second with 10 winners.

As AllWorld Entrepreneurs, the Pakistan 25|100 will have the opportunity to network with other AllWorld winners from the Middle East, Asia and Africa and the top winners of the Pakistan 25|100 are invited to the AllWorld Summit at Harvard University in November 2011.

AllWorld was co-founded by Deirdre Coyle, Anne Habiby and Porter. Professor Porter was described by the Times of London as the world’s “most influential management guru” and is widely regarded at the foremost authority on company and country competitiveness. AllWorld aims to advance ALL the growth entrepreneurs of the emerging world, and building the largest entrepreneurship information system in the world.

Companies are invited to apply for the Pakistan 100 at AllWorldLive.com at the Asia 500 section. For more information on the Pakistan 25|100 visit www.allworldlive.com

Why Pakistan 25?
• The Pakistan 25 companies are led by dynamic men and women who represent a new future of the country. They send a message around the world that Pakistan is a strong country for entrepreneurship.
• The Pakistan 25 will put Pakistan’s growth entrepreneurs on the global radar screen.
• The Pakistan 25 will highlight the role of the private sector in generating new ideas, new jobs and new industries. The Pakistan Fast Growth 25 will help identify entrepreneurship path for others to follow.
• The solution to Pakistan’s economic challenges lies not in foreign lands, but in the entrepreneurial talent of its own citizens. Pakistani entrepreneurs have flourished in spite of some of the most restricting economic and security environments in the world. The Pakistan Fast Growth 25 is recognition of the spirit of these dynamic men and women who are a great resource and the best bet for Pakistan’s future.

The New Economic Ambassadors

• Several Pakistan 25 winners and our sponsor JS Bank briefed the US Chamber of Commerce and the State Department on growth entrepreneurship in Pakistan. One US Government official declared - "this was the most dynamic group of Pakistan's representatives we have ever met".

Additional Background

• ALLWORLD NETWORK PARTNERS IN PAKISTAN
- JS Bank Limited www.jsbl.com
- FPCCI Standing Committee on SME www.fpcci.com.pk
- Rawalpindi Chamber of Commerce & Industry www.rcci.org.pk
- TiE-Lahore - www.tie.org
- P@SHA
- Mishal (Pvt.) Ltd. www.mishal.com.pk


• PAKISTAN 100 QUALIFYING CRITERIA

- Be an independent, private, for-profit, corporation or partnership, or proprietorship.

- Must NOT be a non-profit, holding company, franchise, bank or utility company. Private companies established by government or where government is a majority stakeholder, are also NOT eligible.

- Have 10 or more full-time employees in 2009.

- Have a minimum 3-year operating history, and revenue (USD) of at least $100,000 in 2007 and $500,000 in 2009. Younger companies can compete to be a “Company to Watch.”

- Provide audited statements or an audit letter to confirm your company's revenues.

AllWorld Network announces Pakistan Fast Growth 25 winners

The Pakistan Fast Growth 25 companies have grown an average of 81% a year for the past three years.  They paint Pakistan in a new light, suggesting that Pakistan is a strong country for entrepreneurship

The AllWorld Network announced in Pakistan and world-wide the winners of the Pakistan Fast Growth 25, a ranking of fast growth entrepreneurial companies.  The Pakistan Fast Growth 25 is a program of AllWorld Network in partnership with Harvard Business SchoolProfessor Michael Porter and was launched in collaboration with JS Bank Limited.  Joining the Pakistan 25 were Nominating PartnersFPCCI, Rawalpindi Chamber of Commerce; Industry, TiE, P@sha and Knowledge PartnerMishal (Pvt.) Ltd. 


As a group, the Pakistan 25 broke AllWorld records for high growth of 8 countries in the Middle East, Africa and South Asia.  The companies who made the Pakistan 25 posted a 81% annual growth rate between 2007 and 2009 with an average size of 400 employees per company, and since inception they have created 12,000 jobs.  On average the entrepreneurs are 41 years old, with a number having founded other successful companies.  Leading the Pakistan 25 growth rankings are companies in High-Tech and Telecommunications, and Agriculture and Textiles.  Many of these rising Pakistan 25 companies are not just serving local markets, but are competing globally. 

“These results despite all odds project the force and sheer passion of these vibrant business leaders. At JS Bank, we have always supported entrepreneurs and have taken initiatives that create an environment friendlier for within the entrepreneurship space. We are pleased to see our partnership with Allworld bring to frontline such amazing success stories of these compelling entrepreneurs.” Kalim ur Rehman, President JS Bank.

Added Malik Ahmad Jalal, AllWorld’s Director of the Pakistan 25 “Pakistani entrepreneurs have flourished in spite of some of the most restricting economic and security environments in the world. These dynamic men and women are a great resource and the best bet for Pakistan’s future.  We are honored that US Ambassador Cameron Munter will host the Awards Celebration for the winners at his residence on 24 January 2011.  Also joining Ambassador Munter to recognize the winners will be Pakistan Minister Abdul Hafeez Shaikh and other VIPS.” 

In August all private companies from any part of the country was invited to apply.  Close to 100 companies competed for a spot on the Pakistan 25.  Only the fastest growing private companies make the list, and each company is credentialed by AllWorld based on strenuous international standards.  Applicants much complete a detailed survey of business strategy and operations and provide audited statements or an audit letter to verify revenues.  While only a ranking of 25 companies, 30 companies were credentialed as AllWorld Entrepreneurs.  Twenty 24 companies older the three years old made the ranking and an additional 6 younger companies are Companies to Watch.   Of the 30 companies that made the Pakistan 25, Lahore had the most number with 12 winners and Karachi came in a close second with 10 winners.

The top three companies were founded by a tribal leader, three friends from university, and Pakistani-American from Silicon Valley. Leading the Pakistan 25 is #1 company Exceed (Pvt.) Ltd of Islamabad, with a revenue growth rate of 1,350% between 2007 and 2009.  Exceed was founded by Mr. Sardar Hayaat Muhammed Khan Mandokhel in 2004 when he was 24 years old.  Exceed is  primarily a construction company and is best known for the Saidpur Model Village which Exceed restored as an 18th Century city-museum.  The founder of Exceed, now 30-years old, is also the youngest entrepreneur on the Pakistan 25.

At #2 on the Pakistan 25 is NayaTel, established in 2004 and now with over 500 employees.  After many years in government service and industry, three university friends joined forces to found NayaTel.  NayaTel launched South Asia's first fiber to the home (FTTH)/fiber to the user (FTTU) network in Islamabad in 2006. This state of the art fiber wiring now serves 6,000 home and company users, and is key to providing the country’s capital city with a robust telecom infrastructure. 

At #3 on the Pakistan 25 is Arpatech, which like the top two winners was also established in 2004.  Arpatech was founded by Pakistani-AmericanJamal Khan who studied in the US and worked for five years with a leading Silicon Valley technology firm.  He established Arpatech which now employs a team of 70 in Pakistan and is one of the most successful software houses serving companies all over the world with services from application development to network security.

CLICK HERE TO SEE THE FULL LIST OF THE PAKISTAN 25.

As a group, the Pakistan 25 report their major constraint to growth is finding qualified manager and employees.  This is the number one constraint experienced by growth companies the world over.  The second major constraint to growth is Government Red Tape.

AllWorld was co-founded by Deirdre Coyle, Anne Habiby and Porter.  Professor Porter was described by the Times of London as the world’s “most influential management guru” and is widely regarded at the foremost authority on company and country competitiveness.   “The Pakistan 25 companies, led by dynamic men and women, represent the leading edge of a new approach to Pakistan’s competitiveness” says Porter. As AllWorld Entrepreneurs, the Pakistan 25 will have the opportunity to network with other AllWorld winners from the Middle East, Asia and Africa and the top winners of the Pakistan 25|100 are invited to the AllWorld Summit at Harvard University in November 2011.

AllWorld is also launching the Pakistan 100, and companies are invited to apply at AllWorldLive.com at the Asia 500 section.  AllWorld aims to advance ALL the growth entrepreneurs of the emerging world, and building the largest entrepreneurship information system in the world.

The Innovation Journalism Blog: Amir Jahangir on InJo in Pakistan - Interview by V...

The Innovation Journalism Blog: Amir Jahangir on InJo in Pakistan - Interview by V...: "Amir Jahangir is working on introducing InJo in Pakistan. He is on Stanford University InJo advisory board, where Innovation Journalism fir..."