100-546: The Cowasjee family is one of the oldest families settled in Karachi , Sindh , Pakistan . They owned the East & West Steamship Company , the oldest shipping company in Pakistan, established in 1883. The Cowasjees are a family. Till his death on 24 November 2012, Veteran newspaper columnist Ardeshir Cowasjee was the chairman of the group and patriarch of the family. Ardeshir Cowasjee
200-565: A desert climate , dominated by a long "Summer Season" while moderated by oceanic influence from the Arabian Sea . The city has annual average precipitation levels (approx. 296 mm (12 in) per annum), the bulk of which occurs during the late June–September monsoon season. Summers are hot and humid, and Karachi is prone to deadly heatwaves. Over the past 20 years, rainfall has become more abundant. Tropical storms and thunderstorms, as well as flooding are becoming more common, especially during
300-533: A coastal plain with scattered rocky outcroppings, hills and marshlands. Mangrove forests grow in the brackish waters around the Karachi Harbour (see: Chinna Creek ), and farther southeast towards the expansive Indus River Delta . West of Karachi city is the Cape Monze , locally known as Ras Muari , which is an area characterised by sea cliffs, rocky sandstone promontories and beaches. Karachi lies very close to
400-637: A comparatively lower rate of 10% per annum. Despite challenges, Pakistan achieved an impressive average annual GDP growth rate of 6.7% throughout the 1960s. In the fiscal year 1969–70, the poverty incidence rate decreased to 46%. Per Capita GNP was Rs. 504 in West Pakistan and Rs. 314 in East Pakistan, indicating a widening regional economic disparity. The economic landscape in the early 1970s witnessed growing disparities between East and West Pakistan, leading to East Pakistan's declaration of independence and
500-506: A decline in the annual growth rate of agriculture. By the late 1950s, Pakistan achieved self-sufficiency in cotton textiles, emphasizing export development. The influx of US military and economic aid amounting to US$ 500 million during 1955–58 contributed to Pakistan's growth reliant on foreign aid. In 1959, after a military coup d'état in 1958 , the martial law regime introduced export bonus vouchers as import licenses and exempted certain goods from licensing. During this period, Pakistan faced
600-465: A dramatic shift in population and demography with the arrival of hundreds of thousands of Muslim immigrants from India, coupled with an exodus of most of its Hindu residents. The city experienced rapid economic growth following Pakistan's independence, attracting migrants from throughout the country and other regions in South Asia. According to the 2023 Census of Pakistan , Karachi's total population
700-567: A foreign-currency denominated debt/GDP ratio of 25%. Amid these economic dynamics, Pakistan underwent a structural transition. The GDP share of agriculture declined from 53% in 1947 to 21.2% in 2010, while the GDP share of industry rose from 9.6% in 1949–50 to 25.4% in 2010. Additionally, the GDP share of the services sector increased from 37.2% in 1950 to 53.4% in 2010. The 2000s encapsulated a multifaceted economic narrative for Pakistan, marked by challenges, crises, and significant structural shifts, reflecting
800-602: A growing economic disparity between the two regions. In the 1960s, amid a substantial influx of American aid, Pakistan enjoyed political stability, fostering robust economic growth. Poverty, measured by the poverty headcount ratio, fluctuated from nearly 50% in the early 1960s to 54% in 1963–64. During the 1960s, Pakistan achieved an impressive annual agricultural growth rate of 5%, driven by substantial investments in water resources, increased farmer incentives, mechanization, greater use of fertilizers and pesticides, and expanded cultivation of high-yielding rice and wheat varieties in
900-411: A heavy dependence on agriculture, particularly the textile industry relying on cotton production. Primary export commodities include textiles, leather goods, sports equipment, chemicals, and carpets/rugs. Pakistan is presently undergoing economic liberalization, including the privatization of all government corporations , aimed at attracting foreign investment and reducing budget deficits. However,
1000-505: A large portion of Karachi's economy, with the city home to several of Pakistan's largest companies dealing in textiles, cement, steel, heavy machinery, chemicals, and food products. The city is home to approximately 30 percent of Pakistan's manufacturing sector, and produces approximately 42 percent of Pakistan's value added in large scale manufacturing. At least 4500 industrial units form Karachi's formal industrial economy. Karachi's informal manufacturing sector employs far more people than
1100-605: A large portion of its manufacturing base, Karachi contributes a large share of Pakistan's collected tax revenue. As most of Pakistan's large multinational corporations are based in Karachi, income taxes are paid in the city even though income may be generated from other parts of the country. As home to the country's two largest ports, Pakistani customs officials collect the bulk of federal duty and tariffs at Karachi's ports, even if those imports are destined for one of Pakistan's other provinces. Approximately 25% of Pakistan's national revenue
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#17328553891651200-467: A large-scale manufacturing growth rate of 4.8% per annum throughout the 1990s. However, the era witnessed a significant increase in poverty incidence, reaching 30.6% in 1998–99. The decade encapsulated a complex economic narrative, as Pakistan navigated external debt burdens, fiscal imbalances, inflation, and rising unemployment. Amid these difficulties, there were positive aspects, including growth in key sectors like agriculture and manufacturing. Nonetheless,
1300-668: A major fault line, where the Indian tectonic plate meets the Arabian tectonic plate . However, Karachi lies near the western edge of the Indian Plate, on the Indo Gagnetic Plain. Within the city of Karachi are two small ranges: the Khasa Hills and Mulri Hills , which lie in the northwest and act as a barrier between North Nazimabad and Orangi . Karachi's hills are barren and are part of
1400-481: A major port increased even further. In 1878, the British Raj connected Karachi with the network of British India's vast railway system . In 1887, Karachi Port underwent radical improvements with connection to the railways, along with expansion and dredging of the port, and construction of a breakwater. Karachi's first synagogue was established in 1893. By 1899, Karachi had become the largest wheat-exporting port in
1500-539: A number of households (1.3 million households) with annual income above $ 20,000 measured at PPP exchange rates by 2025. The Global FDI Intelligence Report 2017/2018 published by Financial Times ranks Karachi amongst the top 10 Asia pacific cities of the future for FDI strategy. According to Anatol Lieven the economic growth of Karachi is a result of the influx of Muhajirs to Karachi during late 1940s and early 50s. Most of Pakistan's public and private banks are headquartered on Karachi's I. I. Chundrigar Road , which
1600-405: A pivotal political development. The country experienced a commendable average annual GDP growth rate of 6.3% between 1980 and 1990. The 1980s saw a surge in manufacturing exports, with an annual large-scale manufacturing growth rate of 8.8%, and solid growth in agriculture, with an annual agricultural growth rate of 5.4%. These highlights underscore a transformative and recovering economic period in
1700-453: A population of over 400,000. The city had a slight Hindu majority, with around 51% of the population being Hindu. Partition resulted in the exodus of much of the city's Hindu population, though Karachi, like most of Sindh, remained relatively peaceful compared to cities in Punjab. Riots erupted on 6 January 1948, after which most of Sindh's Hindu population fled to India, with assistance of
1800-460: A result of the operation, Karachi went from being ranked the world's 6th most dangerous city for crime in 2014, to 128th by 2022. In 2022 at least one million flood affectees from Sindh and Balochistan took refuge in Karachi. Karachi is located on the coastline of Sindh province in southern Pakistan, along the Karachi Harbour , a natural harbour on the Arabian Sea . Karachi is built on
1900-472: A rise in poverty incidence to 34.5% in 2000–01. However, a subsequent decrease to 22.3% in 2005–06 offered a nuanced perspective on the decade's economic trajectory. The unemployment rate saw fluctuations, rising to 7.8% in 2002 but later declining to 5% by 2008. Efforts to enhance education and literacy rates were evident as adult literacy stood at 55% in 2007–08. Nevertheless, challenges persisted, and economic crises hit Pakistan in 2008, primarily influenced by
2000-586: A shortened and corrupted version of the original name Kolachi-jo-Goth , was used for the first time in a Dutch report from 1742 about a shipwreck near the settlement. The region around Karachi has been the site of human habitation for millennia. Upper Paleolithic and Mesolithic sites have been excavated in the Mulri Hills along Karachi's northern outskirts. These earliest inhabitants are believed to have been hunter-gatherers , with ancient flint tools discovered at several sites. The expansive Karachi region
2100-612: A third wave of Balochi settlers who arrived from central Sindh and southern Punjab. The Talpurs built the Manora Fort in 1797, which was used to protect Karachi's Harbour from al-Qasimi pirates. In 1799 or 1800, the founder of the Talpur dynasty, Mir Fateh Ali Khan, allowed the East India Company under Nathan Crow to establish a trading post in Karachi. He was allowed to build a house for himself in Karachi at that time, but by 1802
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#17328553891652200-501: A transport hub, and contains Pakistan's two largest seaports, the Port of Karachi and Port Qasim , as well as Pakistan's busiest airport, Jinnah International Airport . Karachi is also considered to be Pakistan's fashion capital, and has hosted the annual Karachi Fashion Week since 2009. Known as the "City of Lights" in the 1960s and 1970s for its vibrant nightlife, Karachi was beset by sharp ethnic, sectarian, and political conflict in
2300-543: A worsening trade balance, with deficits increasing from −831 million Rupees in 1950/51 to −1043 million Rupees in 1959/60. Economically, agriculture grew at an annual rate of 1.6%, while manufacturing expanded impressively at 7.7% per annum during the 1950s. In the fiscal year 1959–60, the Per Capita Gross National Product (GNP) stood at Rs. 355 in West Pakistan and Rs. 269 in East Pakistan , indicating
2400-463: A yearly growth rate of 5.5%. Karachi contributes 90% of Sindh's GDP and accounts for approximately 25% of the total GDP of Pakistan. The city has a large informal economy which is not typically reflected in GDP estimates. The informal economy may constitute up to 36% of Pakistan's total economy, versus 22% of India's economy, and 13% of the Chinese economy. The informal sector employs up to 70% of
2500-432: Is generated in Karachi. Economy of Pakistan The economy of Pakistan is categorized as a developing economy . It ranks as the 24th-largest based on GDP using purchasing power parity (PPP) and the 46th largest in terms of nominal GDP. With a population of 241.5 million people as of 2023, Pakistan's position at per capita income ranks 161st by GDP (nominal) and 138th by GDP (PPP) according to
2600-442: Is a metropolitan city and is considered Pakistan's most cosmopolitan city, and among the country's most linguistically, ethnically, and religiously diverse regions, as well as one of the country's most progressive and socially liberal cities. The region has been inhabited for millennia, but the city was formally founded as the fortified village of Kolachi as recently as 1729. The settlement greatly increased in importance with
2700-573: Is believed to have been known to the ancient Greeks , and may have been the site of Barbarikon , an ancient seaport which was located at the nearby mouth of the Indus River . Karachi may also have been referred to as Ramya in ancient Greek texts. The ancient site of Krokola , a natural harbour west of the Indus where Alexander the Great sailed his fleet for Achaemenid Assyria , may have been located near
2800-576: Is known as "Pakistan's Wall Street", with a large percentage of the cash flow in the Pakistani economy taking place on I. I. Chundrigar Road. Most major foreign multinational corporations operating in Pakistan have their headquarters in Karachi. Karachi is also home to the Pakistan Stock Exchange , which was rated as Asia's best-performing stock market in 2015 on the heels of Pakistan's upgrade to emerging-market status by MSCI . Karachi has been
2900-594: Is the capital city of the Pakistani province of Sindh . It is the largest city in Pakistan and 12th largest in the world, with a population of over 20 million. It is situated at the southern tip of the country along the Arabian Sea coast and formerly served as the country's capital from 1947 to 1959. Ranked as a beta-global city , it is Pakistan's premier industrial and financial centre , with an estimated GDP of over $ 200 billion ( PPP ) as of 2021 . Karachi
3000-436: Is the largest in the country. Karachi collects 35% of Pakistan's tax revenue , and generates approximately 25% of Pakistan's entire GDP . Approximately 30% of Pakistani industrial output is from Karachi, while Karachi's ports handle approximately 95% of Pakistan's foreign trade . Approximately 90% of the multinational corporations and 100% of the banks operating in Pakistan are headquartered in Karachi. It also serves as
3100-439: The 2007–2008 financial crisis . Despite these adversities, economic growth in 2009–2010 reached a respectable 4.1%, with positive contributions from various sectors, including a 2% growth in agriculture, 4.9% growth in industrial output, 4.4% growth in large-scale manufacturing, and a 4.6% expansion in the services sector. By March 2010, public debt had accumulated to Rs. 8,160 billion, with a total public debt/GDP ratio of 56% and
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3200-506: The 2010 Pakistan floods . By this point Karachi had become widely known for its high rates of violent crime, usually in relation to criminal activity, gang-warfare, sectarian violence, and extrajudicial killings. Recorded crimes sharply decreased following a controversial crackdown operation against criminals, the MQM party, and Islamist militants initiated in 2013 by the Pakistan Rangers . As
3300-554: The First Anglo-Afghan War . The Portuguese Goan community started migrating to Karachi in the 1820s as traders. The majority of the estimated 100,000 who came to Pakistan are primarily concentrated in Karachi. Sindh's capital was shifted from Hyderabad to Karachi in 1840 when Karachi was annexed to the British Empire after Major General Charles James Napier captured the rest of Sindh following his victory against
3400-535: The Green Revolution . Large-scale manufacturing experienced significant growth, expanding at a remarkable rate of 16% per annum from 1960/61 to 1964/65, fueled by protective measures for domestic industries, including export subsidies. However, the Pakistan-India War of 1965 led to reduced foreign economic assistance, impacting the growth rate of large-scale manufacturing. From 1965–70, this sector grew at
3500-636: The International Monetary Fund (IMF). In its early years, Pakistan's economy relied heavily on private industries. The nationalization of a significant portion of the sector, including financial services, manufacturing, and transportation, began in the early 1970s under Zulfikar Ali Bhutto . During Zia-ul Haq 's regime in the 1980s, an "Islamic" economy was adopted, outlawing economic practices forbidden in Sharīʿah and mandating traditional religious practices. The economy started privatizing again in
3600-517: The Korean War (1950–1953) brought substantial merchant profits to Pakistan's public and emerging private sectors, fueling industrialization. In 1952, Pakistan imposed bans on the imports of cotton textiles and luxury goods, followed by comprehensive import regulations in 1953, propelling the country into the ranks of the fastest-growing nations. However, biased policies against agriculture and unfavorable trade terms between agriculture and industry led to
3700-618: The Mughal administrator of Sindh, the development of coastal Sindh and the Indus River Delta was encouraged. Under his rule, fortifications in the region acted as a bulwark against Portuguese incursions into Sindh . In 1553–54, Ottoman admiral Seydi Ali Reis , mentioned a small port along the Sindh coast by the name of Kaurashi which may have been Karachi. The Chaukhandi tombs in Karachi's modern suburbs were built around this time between
3800-664: The Soviet–Afghan War . This was followed by refugees escaping from post-revolution Iran . At this time, Karachi was also rocked by political conflict, while crime rates drastically increased with the arrival of weaponry from the War in Afghanistan . Conflict between the MQM party , and ethnic Sindhis , Pashtuns , Punjabis and Balochis was sharp. The party and its vast network of supporters were targeted by Pakistani security forces as part of
3900-641: The Talpurs at the Battle of Miani . Following the 1843 annexation, on 17 February the entire province was amalgamated into the Bombay Presidency for the next 93 years, and Karachi remain the divisional headquarter. A few years later in 1846, Karachi suffered a large cholera outbreak, which led to the establishment of the Karachi Cholera Board (predecessor to the city's civic government). The city grew under
4000-413: The nationalization policies of the 1970s and fostering private sector industrial investment, which greatly contributed to robust economic growth. Notable developments in this era included a drop in the poverty headcount ratio to 29.1% in 1986–87, showcasing a decline in poverty incidence. The unemployment rate exhibited a positive trend, decreasing from 3.7% in 1980 to 2.6% in 1990. Between 1985 and 1988,
4100-501: The 15th and 18th centuries. The first port was established by the Kalhoras near Karachi in the mid-18th century, known as Kharak Bander. 19th century Karachi historian Seth Naomal Hotchand recorded that a small settlement of 20–25 huts existed along the Karachi Harbour that was known as Dibro , which was situated along a pool of water known as Kolachi-jo-Kun. In 1725, a band of Baloch settlers from Makran and Kalat had settled in
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4200-411: The 1970s. The remaining 25% of value-added came from small-scale manufacturing. Overall, this period was marked by significant political and economic changes, driven by challenges posed by economic disparities, political shifts, and efforts to address issues such as inflation, fiscal deficits, and trade imbalances. The 1980s brought substantial changes to Pakistan's economic landscape, moving away from
4300-403: The 1980s with the large-scale arrival of weaponry during the Soviet–Afghan War . The city had become well known for its high rates of violent crime, but recorded crimes sharply decreased following a crackdown operation against criminals, the MQM political party , and Islamist militants, initiated in 2013 by the Pakistan Rangers . As a result of the operation, Karachi dropped from being ranked
4400-493: The 1980s, characterized by a shift in economic policies, improved fiscal performance, and substantial progress in poverty reduction and employment. The era also witnessed efforts to align financial practices with Islamic principles and significant economic growth in the manufacturing and agricultural sectors. The 1990s posed a formidable economic landscape for Pakistan, marked by a series of challenges and developments. Declining worker remittances and escalating external deficits set
4500-408: The 1980s. To address increasing budget deficits in the early 1980s, the government heavily relied on non-bank domestic borrowing, resulting in substantial domestic debt growth. Consequently, the public debt/GDP ratio surged to 77.1% in 1988, 81.9% in 1989, and 82.6% in 1990, leading to significant interest payments and persistent fiscal deficits. In 1985, democracy was restored in Pakistan , marking
4600-454: The 1990s also brought forth a looming threat of debt default, magnified by economic sanctions in response to nuclear tests. The 2000s witnessed a period of substantial economic challenges and transformations for Pakistan. The impact of high public debt gained prominence, identified by the official Debt Reduction and Management Committee in 2001, contributing to a decline in the growth rate to less than 4% per annum. Despite an initial upturn in
4700-500: The 1990s. The economic growth centers in Pakistan are located along the Indus River ; these include the diversified economies of Karachi and major urban centers in Punjab (such as Faisalabad , Lahore , Sialkot , Rawalpindi , and Gujranwala ), alongside less developed areas in other parts of the country. Pakistan was classified as a semi-industrial economy for the first time in the late 1990s, albeit an underdeveloped country with
4800-510: The British into Bandar Road, which was renamed Muhammad Ali Jinnah Road . The name Karachee was used for the first time in a Dutch document from 1742, in which a merchant ship de Ridderkerk is shipwrecked near the settlement. In 1770s, Karachi came under the control of the Khan of Kalat , which attracted a second wave of Balochi settlers. In 1795, Karachi was annexed by the Talpurs , triggering
4900-695: The East. In 1901, Karachi's population was 117,000 with a further 109,000 included in the Municipal area. Under the British, the city's municipal government was established. Known as the Father of Modern Karachi , mayor Seth Harchandrai Vishandas led the municipal government to improve sanitary conditions in the Old City, as well as major infrastructure works in the New Town after his election in 1911. In 1914, Karachi had become
5000-523: The Indian government. Karachi became the focus for the resettlement of middle-class Muslim Muhajir refugees who fled India, with 470,000 refugees in Karachi by May 1948, leading to a drastic alteration of the city's demography . In 1941, Muslims were 42% of Karachi's population, but by 1951 made up 96% of the city's population. The city's population had tripled between 1941 and 1951. Urdu replaced Sindhi as Karachi's most widely spoken language; Sindhi
5100-481: The administration of its new Commissioner, Henry Bartle Edward Frere , who was appointed in the 1850s. Karachi was recognized for its strategic importance, prompting the British to establish the Port of Karachi in 1854. Karachi rapidly became a transportation hub for British India owing to newly built port and rail infrastructure, as well as the increase in agricultural exports from the opening of productive tracts of newly irrigated land in Punjab and Sindh . By 1856,
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#17328553891655200-411: The arrival of the East India Company in the mid-19th century. British administrators embarked on substantial projects to transform the city into a major seaport, and connect it with the extensive railway network of the Indian subcontinent . At the time of Pakistan's independence in 1947, the city was the largest in Sindh with an estimated population of 400,000 people. Afterwards, the city experienced
5300-590: The best-performing stock market index in the world by the international magazine "Business Week". The stock market capitalization of listed companies in Pakistan was valued at $ 5,937 million in 2005 by the World Bank . On 11 January 2016, with the aim of reducing market fragmentation and creating a strong case for attracting strategic partnerships necessary for providing technological expertise, all three stock exchanges, including Karachi Stock Exchange, Lahore Stock Exchange, and Islamabad Stock Exchange, were inducted into
5400-508: The capital of Sindh shifted again Hyderabad to Karachi until the national capital was shifted to Rawalpindi in 1958. While foreign embassies shifted away from Karachi, the city is host to numerous consulates and honorary consulates. Between 1958 and 1970, Karachi's role as capital of Sindh was ceased due to the One Unit programme enacted by President Iskander Mirza . Karachi of the 1960s
5500-480: The city's most desirable properties. The aforementioned historic areas form the oldest portions of Karachi, and contain its most important monuments and government buildings, with the I. I. Chundrigar Road being home to most of Pakistan's banks, including the Habib Bank Plaza which was Pakistan's tallest building from 1963 until the early 2000s. Situated on a coastal plain northwest of Karachi's historic core lies
5600-430: The city's workforce. In 2018 The Global Metro Monitor Report ranked Karachi's economy as the best performing metropolitan economy in Pakistan. Today along with Pakistan's continued economic expansion Karachi is now ranked third in the world for consumer expenditure growth with its market anticipated to increase by 6.6% in real terms in 2018 It is also ranked among the top cities in the world by an anticipated increase of
5700-507: The city, resulting in major flooding. Karachi's highest recorded temperature is 48.0 °C (118.4 °F) which was recorded on 22 and 23 April 2017, and the lowest is 0 °C (32 °F) recorded on 21 January 1934. The city first developed around the Karachi Harbour, and owes much of its growth to its role as a seaport at the end of the 18th century, contrasted with Pakistan's millennia-old cities such as Lahore , Multan , and Peshawar . Karachi's Mithadar neighbourhood represents
5800-959: The city. Following the Rebellion, British colonial administrators continued to develop the city's infrastructure, but continued to neglect localities like Lyari , which was home to the city's original population of Sindhi fishermen and Balochi nomads. At the outbreak of the American Civil War , Karachi's port became an important cotton-exporting port, with Indus Steam Flotilla and Orient Inland Steam Navigation Company established to transport cotton from rest of Sindh to Karachi's port, and onwards to textile mills in England. With increased economic opportunities, economic migrants from several ethnicities and religions, including Anglo-British, Parsis , Marathis , and Goan Christians , among others, established themselves in Karachi, with many setting-up businesses in
5900-567: The colonial era, when silting in led to them being connected to the mainland. In 711 CE, Muhammad bin Qasim conquered the Sindh and Indus Valley and the port of Debal , from where he launched his forces further into the Indus Valley in 712. Some have identified the port with Karachi, though some argue the location was somewhere between Karachi and the nearby city of Thatta . Under Mirza Ghazi Beg ,
6000-690: The controversial Operation Clean-up in 1992 – an effort to restore peace in the city that lasted until 1994. Anti-Hindu riots also broke out in Karachi in 1992 in retaliation for the demolition of the Babri Mosque in India by a group of Hindu nationalists earlier that year. In 1996, two (02) more districts created in the Karachi division named Central and Malir districts. The 2010s saw another influx of hundreds of thousands of Pashtun refugees fleeing conflict in North-West Pakistan and
6100-472: The country continues to grapple with challenges such as a rapidly growing population, high illiteracy, political instability, a hostile neighborhood, and heavy foreign debt. In the late 1940s, upon its establishment, Pakistan had an agrarian-based economy. Agriculture constituted 53% of the country's GDP in 1947 and slightly increased to 53.2% in 1949–50. With a population of approximately 30 million, including around 6 million residing in urban areas, about 65% of
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#17328553891656200-802: The debt service ratio (from 18% to 27%). A deteriorating external debt profile led to a rise in domestic debt, reaching Rs. 909 billion, and a domestic debt/GDP ratio of 42%. The late 1990s witnessed a severe debt crisis, with the public debt/GDP ratio skyrocketing from 57.5% in 1975–77 to 102% in 1998–99. The public debt/revenues ratio surged to 624%, and the interest payments/revenues ratio reached 42.6%, rendering Pakistan's public debt unsustainable. Concerns over external debt default emerged in 1996 and 1998, triggered by Western economic sanctions in response to Pakistan's nuclear tests in May 1998, causing massive capital flight. Despite these challenges, Pakistan managed to sustain an agricultural growth rate of 4.4% per annum and
6300-451: The emergence of Bangladesh in 1971. Subsequently, Pakistan underwent notable transformations in both its political and economic spheres. Under martial law authorities, amidst challenging macroeconomic conditions, the socialist Pakistan People's Party gained empowerment. This period grappled with numerous economic challenges, including a surge in poverty incidence to 55% during 1971–72. Pakistan also confronted heightened import costs due to
6400-428: The establishment of a martial law regime that initiated denationalization, deregulation, and privatization policies. Agriculture experienced modest growth at a rate of 2.4% per annum, while large-scale manufacturing expanded at a rate of 5.5% per annum during the 1970s. Large and medium-scale private manufacturing played a significant role, contributing 75% of the total value-added and investment in manufacturing during
6500-433: The extent of Kolachi prior to British rule. British Karachi was divided between the "New Town" and the "Old Town", with British investments focused primarily on the New Town. The Old Town was a largely unplanned neighbourhood which housed most of the city's indigenous residents and had no access to sewerage systems, electricity, and water. The New Town was subdivided into residential, commercial, and military areas. Given
6600-410: The fiscal year 1949–50, Pakistan recorded a national savings rate of 2%, a foreign savings rate of 2%, and an investment rate of 4%. Manufacturing contributed 7.8% to the GDP, while services, trade, and other sectors accounted for a significant 39%, reflecting a policy centered around import-substituting industrialization . The trade balance of payments indicated a deficit of 66 million Rupees (Rs) during
6700-583: The formal sector, though proxy data suggest that the capital employed and value-added from such informal enterprises is far smaller than that of formal sector enterprises. An estimated 63% of the Karachi's workforce is employed in trade and manufacturing. Karachi Export Processing Zone, SITE, Korangi , Northern Bypass Industrial Zone, Bin Qasim and North Karachi serve as large industrial estates in Karachi. The Karachi Expo Centre also complements Karachi's industrial economy by hosting regional and international exhibitions. As home to Pakistan's largest ports and
6800-678: The global oil price shock in October 1973 , a severe global recession from 1974 to 1977, cotton sector failures in 1974–75, pest infestations affecting crops, and massive floods in 1973, 1974, and 1976–77. One significant economic issue during this time was high inflation, with prices increasing by an average of 15% per annum between 1972 and 1977. The fiscal deficit/GDP ratio averaged 8.1% during 1973–77, indicating substantial fiscal challenges. Trade imbalances were apparent, with trade deficits rising from US$ 337 million in 1970–71 to US$ 1,184 million in 1976–77. The military coup d'état of 1977 , leading to
6900-466: The government endeavored to implement an Islamic interest-free banking system , introducing business partnerships based on profit and loss sharing. The national savings/GDP ratio reached a notable 16% in 1986–87, largely due to significant worker remittances from the Middle East. Despite this growth, challenges emerged, including negative public savings and a declining public investment/GDP ratio throughout
7000-508: The government of President Zulfikar Ali Bhutto from 1972 onwards. To appease conservative forces, Bhutto banned alcohol in Pakistan, and cracked-down of Karachi's discotheques and cabarets - leading to the closure of Karachi's once-lively nightlife. The city's art scene was further repressed during the rule of dictator General Zia-ul-Haq . Zia's Islamization policies lead the Westernized upper-middle classes of Karachi to largely withdraw from
7100-698: The greater Defence Housing Authority project. Karachi's city limits also include several islands, including Baba and Bhit Islands , Oyster Rocks, and Manora , a former island which is now connected to the mainland by a thin 12-kilometre long shoal known as Sandspit . Gulistan-e-Johar , Gulshan-e-Iqbal , Federal B. Area , Malir , Landhi and Korangi areas were all developed after 1970. The city has been described as one divided into sections for those able to afford to live in planned localities with access to urban amenities, and those who live in unplanned communities with inadequate access to such services. 35% of Karachi's residents live in unplanned communities. Being
7200-415: The growth rate, the decade unfolded with persistent macroeconomic crises. Although achieving a noteworthy growth rate of 8.6% in 2004–05, subsequent years were marred by a series of setbacks, including a growth slowdown, low growth, high inflation, an energy crisis, and worsening fiscal and balance of payments positions. The economic landscape reflected the complexities faced by the population, illustrated by
7300-470: The hamlet after fleeing droughts and tribal feuds. A new settlement was built in 1729 at the site of Dibro , which came to be known as Kolachi-jo-Goth ("The village of Kolachi"). The new settlement is said to have been named in honour of Mai Kolachi , a resident of the old settlement whose son is said to have slain a man-eating crocodile. Kolachi was about 40 hectares in size, with some smaller fishing villages scattered in its vicinity. The founders of
7400-405: The labor force was engaged in agriculture. The agricultural sector played a crucial role, contributing to 99.2% of exports and making up nearly 90% of foreign exchange earnings. Despite possessing significant land and mineral resources in both East and West Pakistan , including natural gas, crude oil, coal, limestone, and marble, Pakistan faced numerous challenges. In 1950, its per capita income
7500-553: The larger Kirthar Range , and have a maximum elevation of 528 metres (1,732 feet). Between the hills are wide coastal plains interspersed with dry river beds and water channels. Karachi has developed around the Malir River and Lyari Rivers , with the Lyari shore being the site of the settlement for Kolachi . To the east of Karachi lies the Indus River flood plains. Karachi has a tropical semi arid climate ( Köppen : BSh ), formerly
7600-494: The largest city, Karachi is also Pakistan's financial and commercial capital. Since Pakistan's independence, Karachi has been the centre of the nation's economy, and remain's Pakistan's largest urban economy despite the economic stagnation caused by sociopolitical unrest during the late 1980s and 1990s. The city forms the centre of an economic corridor stretching from Karachi to nearby Hyderabad , and Thatta . As of 2021 , Karachi had an estimated GDP (PPP) of $ 190 billion with
7700-644: The largest wheat-exporting port of the entire British Empire, after large irrigation works in Sindh were initiated to increase wheat and cotton yields. By 1924, the Drigh Road Aerodrome was established, now the Faisal Air Force Base . Karachi's increasing importance as a cosmopolitan transportation hub leads to the influence of non-Sindhis in Sindh's administration. Half the city was born outside of Karachi by as early as 1921. Native Sindhis were upset by this influence, and so on 1 April 1936, Sindh
7800-531: The mid-1960s, Karachi began to attract large numbers of Pashtun , Punjabis and Kashmiris from northern Pakistan. The 1970s saw a construction boom funded by remittances and investments from the Gulf States , and the appearance of apartment buildings in the city. Real-estate prices soared during this period, leading to a worsening housing crisis. The period also saw labour unrest in Karachi's industrial estates beginning in 1970 that were violently repressed by
7900-525: The mouth of Karachi's Malir River , though some believe it was located near Gizri . No other natural harbour exists near the mouth of the Indus that could accommodate a large fleet. Nearchus , who commanded Alexander's naval fleet, also mentioned a hilly island by the name of Morontobara and an adjacent flat island named Bibakta , which colonial historians identified as Karachi's Manora Point and Kiamari (or Clifton ), respectively, based on Greek descriptions. Both areas were island until well into
8000-409: The nation's resilience and adaptability. The table below displays key economic indicators from 1980 to 2022. Inflation rates below 5% are highlighted in green. (Billion US$ PPP) (US$ PPP) (Billion US$ nominal) (US$ nominal) (Real) (Percent) (Percent) (% of GDP) In the first four years of the twenty-first century, Pakistan's KSE 100 Index was declared
8100-523: The new commercial district of Saddar . Muhammad Ali Jinnah , the founder of Pakistan, was born in Karachi's Wazir Mansion in 1876 to such migrants from Gujarat . Public building works were undertaken at this time in Gothic and Indo-Saracenic styles, including the construction of Frere Hall in 1865 and the later Empress Market in 1889. With the completion of the Suez Canal in 1869, Karachi's position as
8200-519: The new fortified settlement were Sindhi Baniyas , and are said to have arrived from the nearby town of Kharak Bandar after the harbour there silted in 1728 after heavy rains. Kolachi was fortified, and defended with cannons imported from Muscat, Oman . Under the Talpurs, the Rah-i-Bandar road was built to connect the city's port to the caravan terminals. This road would eventually be further developed by
8300-487: The period spanning 1949/50 to 1950/51. The 1950s marked the initiation of planned development in Pakistan, with the introduction of the Colombo Plan in 1951 leading to a series of Five-Year Plans from 1955 to 1998. Concurrently, a Ten-Year Perspective Plan was implemented, complemented by a rolling Three-Year Development Plan. During the 1950s, Pakistan pursued a policy of import-substituting industrialization. Notably,
8400-622: The pioneer in cable networking in Pakistan with the most sophisticated of the cable networks of any city of Pakistan, and has seen an expansion of information and communications technology and electronic media . The city has become a software outsourcing hub for Pakistan. Several independent television and radio stations are based in Karachi, including Business Plus , AAJ News , Geo TV , KTN , Sindh TV , CNBC Pakistan , TV ONE , Express TV , ARY Digital , Indus Television Network, Samaa TV , Abb Takk News , Bol TV , and Dawn News , as well as several local stations. Industry contributes
8500-466: The public sphere, and instead form their own social venues that became inaccessible to the poor. This decade also saw an influx of more than one million Bihari immigrants into Karachi from the newly made country Bangladesh which separated from Pakistan in 1971. In 1972, the Karachi district divided into three districts, East , West and South districts. The 1980s and 1990s saw an influx of almost one million Afghan refugees into Karachi fleeing
8600-701: The sea maintains humidity levels at near-constant levels year-round. Thus, the climate is similar to a humid tropical climate, except for the low precipitation and occasional temperatures well over 100 F (38 C) due to the influence of the Thar Desert nearby, close to the border with India. The city's highest annual rainfall was about 750-850 mm, recorded in the late 1970s. The city's highest monthly rainfall, 19 in (480 mm), occurred in July 1967. The city's highest rainfall in 24 hours occurred on 7 August 1953, when about 278.1 millimetres (10.95 in) of rain lashed
8700-499: The sprawling district of Orangi . North of the historic core is the largely middle-class district of Nazimabad , and upper-middle-class North Nazimabad , which were developed in the 1950s. To the east of the historic core is the area known as Defence , an expansive upscale suburb developed and administered by the Pakistan Army . Karachi's coastal plains along the Arabian Sea south of Clifton were also developed much later as part of
8800-548: The strategic value of the city, the British developed the Karachi Cantonment as a military garrison in the New Town to aid the British war effort in the First Anglo-Afghan War . The city's development was largely confined to the area north of the Chinna Creek prior to independence, although the seaside area of Clifton was also developed as a posh locale under the British, and its large bungalows and estates remain some of
8900-532: The summer monsoon. On the other hand, cool sea breezes typically provide relief during hot summer months. A text message-based early warning system alerts people to take precautionary measures and helps prevent fatalities during an unusually strong heatwave or thunderstorm. The winter climate is dry and lasts between December and February. It is dry and pleasant in winter relative to the warm hot season that follows, which starts in March and lasts until October. Proximity to
9000-447: The tone for economic strains. Simultaneously, the decade witnessed the second-worst inflation in Pakistan's history, driven by diminishing GDP growth rates. Unemployment surged, reaching 5.9% in 1991 and escalating further to 7.2% in 2000. Pakistan's external debt tripled, soaring to US$ 30 billion by 1995. The external debt/GDP ratio rose from 42% to 50%, accompanied by increases in the external debt/exports ratio (from 209% to 258%) and
9100-529: The value of goods traded through Karachi reached £855,103, leading to the establishment of merchant offices and warehouses. The population in 1856 is estimated to have been 57,000. During the Sepoy Mutiny of 1857, the 21st Native Infantry, then stationed in Karachi, mutinied and declared allegiance to rebel forces in September 1857, though the British were able to quickly defeat the rebels and reassert control over
9200-419: The world's 6th-most dangerous city for crime in 2014, to 128th by 2022. Modern Karachi was reputedly founded in 1729 as the settlement of Kolachi-jo-Goth during the rule of Kalhora dynasty . The new settlement is said to have been named in honour of Mai Kolachi , whose son is said to have slain a man-eating crocodile in the village after his elder brothers had already been killed by it. The name Karachee,
9300-453: Was 20.3 million. Karachi is one of the world's fastest-growing cities, and has significant communities representing almost every ethnic group in Pakistan . Karachi holds more than two million Bengali immigrants , a million Afghan refugees , and up to 400,000 Rohingyas from Myanmar . Karachi is now Pakistan's premier industrial and financial centre. The city has a formal economy estimated to be worth $ 190 billion as of 2021 , which
9400-593: Was also known as a philanthropist, social activist and a businessman. Some charities Ardeshir donated to are The Citizens Foundation affiliated TCF school in Lyari , Lady Dufferin Hospital , Sindh Institute of Urology and Transplantation (SIUT) and National Institute of Cardiovascular Diseases (NICD) – all in greater Karachi area. Karachi Karachi ( / k ə ˈ r ɑː tʃ i / ; Urdu : کراچی ; Sindhi : ڪراچي ; IPA: [kəˈraːtʃi] )
9500-514: Was an estimated 8,000 to 14,000, and was confined to the walled city in Mithadar , with suburbs in what is now the Serai Quarter . British troops, known as the "Company Bahadur" established a camp to the east of the captured city, which became the precursor to the modern Karachi Cantonment . The British further developed the Karachi Cantonment as a military garrison to aid the British war effort in
9600-433: Was around $ 360 (in 1985 international dollars), and the literacy rate was only 10%. The nation encountered a lack of economic infrastructure, financial resources, and an industrial foundation, particularly with poverty rates ranging from 55% to 60% in the West Pakistan region. Due to limited capital in the small private sector, the government opted to focus on the public sector to foster economic and industrial development. In
9700-546: Was established as a province separate from the Bombay Presidency with Karachi was once again made capital of Sindh. In 1941, the population of the city had risen to 387,000. At the dawn of independence following the success of the Pakistan Movement in 1947, On 15 August 1947 Capital of Sindh shifted from Karachi to Hyderabad and Karachi was made the national capital of Pakistan. Karachi was Sindh's largest city with
9800-452: Was ordered to leave the city. The city continued to be ruled by the Talpurs until it was occupied by forces under the command of John Keane in February 1839. The British East India Company captured Karachi on 3 February 1839 after HMS Wellesley opened fire and quickly destroyed Manora Fort , which guarded Karachi Harbour at Manora Point . Karachi's population at the time
9900-556: Was regarded as an economic role model around the world, with Seoul , South Korea, borrowing from the city's second "Five-Year Plan". Several examples of Modernist architect were built in Karachi during this period, including the Mazar-e-Quaid mausoleum, the distinct Masjid-e-Tooba , and the Habib Bank Plaza (the tallest building in all of South Asia at the time). The city's population by 1961 had grown 369% compared to 1941. By
10000-419: Was the mother tongue of 51% of Karachi in 1941, but only 8.5% in 1951, while Urdu grew to become the mother tongue of 51% of Karachi's population. 100,000 Muhajir refugees arrived annually in Karachi until 1952. Muhajirs kept arriving from different parts of India till 2000. Karachi was selected as the first capital of Pakistan, and was administered as a federal district separate from Sindh beginning in 1948,
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