Economy of Karachi

Most major foreign multinational corporations operating in Pakistan have their headquarters in Karachi. The Karachi Stock Exchange is the largest stock exchange in Pakistan, and is considered by many economists to be one of the prime reasons for Pakistan's 8% GDP growth across 2005. A recent report by Credit Suisse on Pakistan's stock market is a testimonial to its strong fundamentals, estimating Pakistan’s relative return on equities at 26.7 percent, compared to Asia’s 11 percent.

Karachi has seen an expansion of information and communications technology and electronic media and has become the software outsourcing hub of Pakistan. Call centres for foreign companies have been targeted as a significant area of growth, with the government making efforts to reduce taxes by as much as 10% in order to gain foreign investments in the IT sector. Many of Pakistan’s independent television and radio stations are based in Karachi, including world-popular Business Plus, AAJ News, Geo TV, KTN, Sindh TV, CNBC Pakistan, TV ONE, ARY Digital, Indus Television Network, Samaa TV and Dawn News, as well as several local stations.

Karachi has large industrial zones such as Karachi Export Processing Zone, SITE, Korangi, Northern Bypass Industrial Zone, Bin Qasim and North Karachi, located on the fringes of the main city. Its primary areas of industry are textiles, pharmaceuticals, steel, and automobiles. In addition, Karachi has a cottage industry and there is a Free Zone with an annual growth rate of nearly 6.5%. The Karachi Expo Centre hosts regional and international exhibitions. There are development projects proposed, approved and under construction in Karachi. Among projects of note, Emaar Properties is proposing to invest $43bn (£22.8bn) in Karachi to develop Bundal Island, which is a 12,000 acres (49 km) island just off the coast of Karachi. The Karachi Port Trust is planning a Rs. 20