“PAK STUDY”

Current Social, Economic and Political Challenges related to Industrial Sector of

Pakistan since Partition

ALCOHOL INDUSTRY:
Murree brewery
Murree brewery is a multinational industry in Pakistan that
produces alcoholic and non-alcoholic beverages. It is Pakistan’s oldest industry as
it was built by the British in 1860 for its purpose of serving alcohol to the throne
in subcontinent. It produces malt whisky, Scotch whisky vodka and brandy. In
2013, it was declared as one of Asia’s best company by Forbes and in 2014 it
established a store in New York City. In 2007, Murree brewery became
the Muslim world’s first brewery industry to make 20-year-old malt whisky named
"Rarest Malt Whisky".

Social challenges:
Social challenges to Murree brewery is in all regards of culture,
religion, societies, casts and a much more related mentalities. It is not absolutely
right to serve alcohol to the Muslims but the fact of the matter is that don’t utilize
it in the country to Muslims but export it to foreign countries and earn credit as
Pakistan is lacking credit. If it is served to even tourists and non-Muslims well with
authenticity can do well. On 19th October 2016 the Lahore High Court Lahore
heard the case between Kingsway Capital LLP and Murree Brewery Co. Ltd.,
where Kingsway Capital LLP petitioned the Murree Brewery Co. Ltd. EOGM of
29th September 2016 to be declared as invalid and unlawful. The petition was
thereafter allowed. On 7th September 2016 Kingsway Fund replied to
the Pakistan stock exchange regarding allegations in the "Murree
Letter” published by the Pakistan Stock Exchange on 3rd September 2016.Rattling
and clinking along the production line, it's bottle after bottle of beer, here in a
country where booze is banned for all but a very few. Earnings per share
improved to Rs27.30 from Rs18.04 last year. The company’s board announced a
cash dividend of Rs10 per share, in addition to the already paid Rs5. Net sales
grew 31pc to Rs4.16bn in the latest period, from Rs3.17bn last year.

Economic challenges :
Pakistan is a Muslim country. It was born on the foundation of
Islam, named as Islamic Republic of Pakistan. Being an Islamic country, alcohol is
prohibited in the country. Having basis on Islam it is not whelmed to serve alcohol
to its majority population that is Muslim. Hence, it is the best industry in the
country but due to economic reasons cannot bring its best. Producing tons of
alcohol with no proper strategy to export is an ache to the industry. It is being
huge barrier in the way to its fullest. In 1977, the Murree Brewery suffered a
significant drawback when Zulfiqar Ali Bhutto imposed a total alcohol prohibition
in Pakistan. Subsequently, the government of General Zia ul Haqq amended this
law, requiring anyone wishing to consume alcohol to present credentials
demonstrating that they were non-Muslim. The small communities were not
large enough to support the enterprise, and production had to be scaled back.
However, CEO of Murree claims that "99 per cent of his customers are Muslims".
The Murree Brewery is one of the oldest public companies of South Asia. Its
shares were traded on the Calcutta Stock Exchange as early as 1902, and it is now
the oldest continuing industrial enterprise of Pakistan and among the top 25
performing public companies on the Karachi Stock Exchange. In 2013, Murree
Brewery opened a franchise in India to a Bangalore-based entrepreneur, allowing
the brewing, bottling and marketing of the beer in India. On June 6, 2012, Scout
Willis, the daughter of Hollywood actor Bruce Willis, was arrested in New York
City and jailed overnight for drinking a beer manufactured by Murree Brewery.
Thus this industry can bring up credit in the country a lot if it is set free of all its
economic challenges. Its credit as an annual estimation with these challenges is
698 million.

Murree brewery did tremendously well in under the British crown and
till 1977 when Pakistan's then leader Zulfikar Ali Bhutto banned alcohol as a way
to court the support of conservative Muslims. Under the law, only non-Muslim
Pakistanis and foreigners are allowed to purchase alcohol. And they're only able
to buy it in a handful of gloomy bars that are hidden away in the corners of five-
star hotels. It's just one of the rules that more than frustrates CEO Isphanyar
Bhandara given the amount of bootlegged booze that enters the country.
"Imported alcohol — I mean beer and spirits — is coming into Pakistan being
smuggled into Pakistan free of duty, the government does not earning a penny.
That is coming and no one is making hue and cry." Despite Bhandara's loud
complaints, despite persistent lobbying by his late father, who was a well-
connected politician in addition to being a brew master, the laws are not about to
change. Indeed, as conservative Islam has gained influence in Pakistan, the
number of legal liquor outlets has shrunk.

No doubt, this industry can bring a huge attention of credit in the country
and therefor it should be set on all authenticity to bring up the fullest of it
economic credit in foreign markets. It's those kinds of compromises and quiet
understandings that have allowed the beer to continue to rattle down the
bottling lines inside the brewery, quenching the thirst of so many in a nation
that's officially dry. Murree Brewery Company Ltd.’s profit after tax (PAT) soared
51 per cent year-on-year to Rs629 million for the year ended Dec 31, 2017. To
guard against such headaches in future, Murree is expanding its range of soft
drinks, including Murree Spark Letts, a mineral water. Freer liquor markets abroad
also appeal. Attempts to brew Murree in neighboring India (Pakistan’s law forbids
exporting it outright) have foundered, the result of sour diplomatic relations. Yet
the firm soon hopes to offer British citizens the chance, once again, to “have a
Murree with your curry”. A worldwide distribution deal is being negotiated
through a Czech brewery that produces its beer.

https://en.wikipedia.org/wiki/Murree_Brewery
https://www.pri.org/stories/2012-02-07/pakistans-murree-brewery-thrives-
despite-muslim-laws
https://www.dawn.com/news/1391150
https://www.economist.com/business/2018/03/10/pakistans-murree-brewery-
shrugs-off-restrictions-on-its-products