How do you see structure of Pakistani corporate sector?

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highlighting the attributes of Pakistani corporate sector in the light of above discussion.
1. Pakistan Corporate Structure:
There is a mix system in Pakistan’s corporate sector. We find all open, closed and industrial
models in Pakistan. There are state owned corporations as well as private limited companies
and large industrial groups. There are companies listed in the stock exchange. There are three
stock exchanges in Pakistan (Lahore, Karachi and Islamabad). Karachi’s stock exchange is
often ranked on of the best performing stock-markets in Asia.
Pakistan follows the European model where Television, Railways and other major institutions
are state-owned. In Pakistan there are various state-owned companies like PTCL, WAPDA,
PIA, RAILWAYS, STEEL MILL, SNGP, SSGP, PTV and HMC. Sectors like heavy
industries, banking and finance, food and agriculture also have SOE presence alongside a
vibrant and healthy private sector growth. State owned Enterprises constitute a considerable
portion of the country’s macro economy, employing 423,254 people, yielding a considerable
5.5% contribution in non-tax revenue in the form of dividends, with a significant asset base
worth Rs 9,633 billion, with a turnover of Rs 5,257 billion contributing a 20.7% to the
country’s Gross Domestic Product (GDP), almost as important as the agriculture sector
contributing 21% to GDP There is a state-monopoly in these businesses, however there are
some state-owned businesses where privatization is done like Electricity companies and
PTCL. Most state-owned institutions are going in losses.
2. Attributes of Pakistani Corporate sector:
Closed Market:
 The stock market usage in Pakistan is less compared to banks, banks are preferred
generally for the capital.
 Small companies are not traded in stock market, businesses generally do not list on
stock exchange.
 Companies prefer to not disclose information to general public
 Large proportion of the company is generally owned by the owners unlike open
markets where only 1-2% is owned by the owner.
 Owners generally don’t share company ownership to raise capital, mostly banks are
utilised.
Example:
 English Biscuit Manufacturers
English Biscuit Manufacturers, previously known as Peek Freans Pakistan, is a Pakistani
biscuits manufacturer based in Karachi, Pakistan. According to Nielsen survey, EBM
enjoys a 45% market share. Sooper, a brand of EBM accounts for almost half of the
company revenues. In 2013, Sooper crossed the Rs 10 billion mark.
 CA Sports
CA Sports is a Pakistani sports equipment manufacturing company headquartered in
Sialkot, Punjab, focused on cricket clothing and equipment. Founded in 1958, the
 company's name refers to the first initials of its founder's name, Charaghdin Abdul
Rasheed
Both of these companies are examples of closed corporate models, these are private
companies not liable to general public to release any information.
3. Large Industrial groups:
 In the industrial groups there are many industrial groups that exist in Pakistan like
Nishat group, Dawood Group and Lakson Group.
 These industrial groups are generally diversified in many industries, like food,
banking, media, chemical, electricity and Textile.
 In these large industrial groups, they have their own banks they do not take financial
help from outside. E.g. Nishat Group owns MCB.
 Managers do not own shares in the company. They are professional managers hired
specifically for their special field.
 Most Large groups enjoy close relationship with the government E.G. Jahangir
Tareen’s group is close with Imran Khan’s government and in past Mian Mansha’s
group was close with Nawaz Sharif’s government.
 Large industrial groups play a vital role in Pakistan’s economic growth, through
exports.
 Dawood Group:
Dawood Hercules Corporation Limited is a Pakistani conglomerate and investment company
which is based in Karachi, Pakistan. It has diversified holdings in Energy and Foods.
Company has a 37% ownership of subsidiary company Engro Corporation Limited. In July
2017 Dawood Hercules announced its intention of divesting its holding in Hub Power
Company and cease involvement in management.
 DYL Motorcycles: DYL Motorcycles was founded in 1976 as Dawood Yamaha
limited as a joint venture between the Dawood Group of Companies and Yamaha
Motor Company. In 2008, the company re branded itself to DYL Motorcycles. DYL's
manufacturing plants are located in Hub where its sister company Balochistan
Engineering Works produces the frame, fuel tank, rear arm, fenders, gears, hubs,
leavers, crank and cover case. The manufacturing plant for DYL motorcycles is based
in Uthal (Balochistan).
 Engro Corporation: is a Pakistani multinational conglomerate company with
subsidiaries involved in production of fertilizers, foods, chemicals, energy and
petrochemicals. Founded as a fertilizer company in 1965 by an American company
Esso on the Mari Gas field near Daharki, Sindh, with 75% of the shares owned by
Esso and 25% by the general public. The construction of a urea plant commenced at
Daharki in 1966 and production began in 1968. At US $43 million with an annual
production capacity of 173,000 tons, it was the single largest foreign investment by a
multinational corporation in Pakistan at the time.
 NISHAT Group is a Business Conglomerate Headed by Country's Richest Man Mian
Muhammad Mansha Yahya. Mian Muhammad Mansha has attained Position of
Richest Pakistani for last 15 Years. Mansha owns around 60 Companies. Bought of
MCB Bank Played a Pivotal Role in Building his Vast Financial Empire. Mansha,
 who owns the Muslim Commercial Bank has also setup a $ 17m Paper Mill, Nishat
Shuaiba.
After 1979, Mian Mansha Set Up Pakistan's Largest Textile Complex of 7 Mills at
Nishat-Abad in the City of Faisalabad. Mian Mansha Possess Unmatched Influence in
Textile Industry of Pakistan.Nishat Group is Pakistan's Largest Textile Exporter with
Exports of above $1 Billion. Mian Mansha's Tussle with Big Business Groups Like
Adamjee, Monnoo and Tawakkal is all known fact.
Nishat Group was country's 15th richest family in 1970, 6th in 1990 and Number 1 in
1997. Mansha is on the board of nearly 50 companies. He is deemed to have made
investments in many bourses, currency and metal exchanges both within and outside
Pakistan. He could have bought the United Bank too, but then who doesn't have
adversaries. Nishat Group comprises of Textiles, Cement, Leasing, Insurance
Management and Real Estate Companies. If Mansha was bitten by Bhutto's
nationalization stint of 1970, Business Analysts suggest he was hugely benefited from
Nawaz Sharif's Privatization Program.
The Group owns one of The Biggest Companies of Pakistan, which include:
 MCB Bank
MCB Bank is one of the four largest banks of Pakistan. It is considered as 'Big 4' of
Pakistan. The bank was incorporated by Adamjee Group and it was nationalized by then
Prime Minister Zulfikar Ali Bhutto. In 1990s, it was privatized by then Prime Minister
Nawaz Sharif's government and came under Nishat Group. In 2015, the bank generated
around ₨66.43 billion which makes it one of the well performing banks of Pakistan.
 DG Khan Cement
DG Khan is a major Pakistani cement manufacturer which the group acquired in 1992
under privatization scheme. It has three active plants in the country. It generates around
Rs. 2.2 billion per year. It has a production capacity of 24,000 tons per day.
 Nishat Automobile
In February 2017, it was announced that both companies are venturing to assemble cars in
Pakistan. In March 2017, it was announced that Nishat Group will setup their first plant in
Faisalabad, Pakistan which will assemble electric cars. Nishat Group will have 42% stake
in the venture.
Other lists of companies owned by Nishat Group companies is as follows:
 Nishat Textiles
 Nishat Power
 Nishat Properties
 Nishat Hotels
 Hyundai Nishat Motors
 Nishat Emporium
 Nishat Linen
 Adamjee Life Assurance Limited
 Nishat Dairy (Private) Limited
  Nishat Hospitality (Private) Limited
 Nishat Papers Products Company Limited
 Pakistan Aviators & Aviation
 Security General Insurance Company Limited
 Nishat Hotels and Properties Limited
 Nishat (Aziz Avenue) Hotel and Properties Limited
 Nishat (Gulberg) Hotel and Properties Limited
 Nishat (Raiwind) Hotel and Properties Limited
 Nishat Agriculture Farming (Private) Limited
 Nishat Automobile (Private) Limited
 Nishat Developers (Private) Limited
 Nishat Commodities (Private) Limited
 Lalpir Solar Power (Private) Limited
 Nishat Real Estates Development Company (Private) Limited
 Nishat Farms Supplies (Private) Limited
 Nishat International FZE
 Nishat Global China Company Limited
 Nishat UK (Private) Limited
 Nishat Linen Trading LLC
 Nishat USA Inc.
4. Open corporate model:
 In Pakistan there are many listed companies in the stock exchange, they like to do
business with public money and issue dividends. There are 540 companies registered
in the PSX.
 Company listed means they have to comply with the rules and regulation so they have
to release the Reports publically.
 These companies are controlled professionally
 Large shareholders of the company hold large shares usually 50% -60% unlike the
American system where there is 1-2% share of the majority shareholder.
 Compare to closed system it is very liquid model.
 Companies have to follow strict SECP laws.
 Bank role is limited in this type of model.
Example:
Bank Al Habib Limited is a Pakistani commercial bank owned by the Dawood Habib
family. It is based in Karachi, Pakistan. Bank Al Habib is planning to add 200 more branches
by the end of 2020. Bank Al Habib has wholesale branches in Bahrain, Seychelles and
Malaysia and offices in UAE, Istanbul, Beijing, and Kenya. As of August 2020, the assets of
the bank grew up to Rs. 1.36 Trillion.
Habib Group's involvement in banking services dates back to 1930s. The original Habib
Bank began modestly in Bombay in 1941 when it commenced operations with a fixed capital
of 25,000 rupees. Impressed by its initial performance, Quaid-e-Azam Muhammad Ali Jinnah
asked the Habib Bank to move its operations to Karachi after the independence of Pakistan.
HBL Pakistan was nationalized in 1971 and is still one of the largest banks in Pakistan. After
the privatization scheme announced in 1991 by the Pakistani Government, Habib Group were
the first to be granted permission to start a private bank, the Bank AL Habib Limited.