It is no secret that a group within the Memon community of Karachi harbours a grudge against the Manshas of Lahore.
After all, many of the businesses that the former built — and then lost to the disastrous policy of nationalisation in the 1970s — were eventually acquired and turned around by Mian Muhammad Mansha, Chairman of the Nishat group, one of Pakistan’s largest business houses, with interests in textiles, cement, banking, energy, insurance, aviation and agriculture.
Attribute it to his relentless hard work spanning over half a century or call it a result of the privatisation policy that ultimately proved favourable to his group of companies, the fact remains that Mian Mansha is undoubtedly the face of corporate Pakistan today — an icon of the rising private sector of the country whose counsel government officials feel obliged, and perhaps even privileged, to seek.
Thus, it was least surprising to see nearly all big shots of the country’s financial services industry stand in awe as Mian Mansha walked into the ballroom of a Karachi hotel on Friday evening to speak about the offer for sale of shares in a Nishat group subsidiary, Lalpir Power Limited.
However, commensurate with the stature that he has attained in the last two decades, Mian Mansha chose to speak about larger issues confronting the economy of Pakistan.
“This country has changed forever. We’re going to have reverse immigration. The future looks really bright,” said Mian Mansha, who is known to have a close working relationship with Prime Minister Nawaz Sharif, another Mian from Lahore.
He is currently part of a high-profile, albeit informal, team that the prime minister has tasked with the resolution of the energy crisis.
“The government is going to pay off the circular debt, hopefully once and for all, maybe during this financial year. We want to get rid of the circular debt before June 30, so we can start anew from July,” he said. “We’ll have to increase the tariff, and then decrease it later on. We’ll have to increase it because of the inefficient system we have, the wrong energy mix that we have.”
When one member of the audience, apparently a stock analyst covering the energy sector, stood up and asked him whether anybody in the government actually knew what the exact amount of the circular debt was, Mansha responded with clarity. “As of last evening, the exact amount of the circular debt was Rs503 billion.”
Responding to a question, he confirmed that the government is indeed planning on issuing treasury bills to the tune of Rs500 billion to raise money needed to free the energy sector from circular debt.
“Issuing T-bills to settle the circular debt makes sense. The government is paying power companies’ dues at Kibor plus 4%, or whatever their contract says. But if you borrow through T-bills, your interest rate on this Rs500 billion goes down immediately by 4%,” he said.
Trade with India
He spoke passionately about opening trade with India. Noting that the Indian economy is currently seven times bigger than Pakistan’s and is set to become 40 times bigger by 2030, Mansha said now is the best time to sort out issues with the neighbouring country. “I’m willing to give you in writing that if we open the borders today, the price of every property in Lahore will double within one year.”
Saying that 65% of Pakistan’s trade was with India before 1965, he said smaller countries invariably benefit from opening trade with neighbours. “Pakistan should not be afraid of competition,” he said, repeatedly.
Foreign investment
For a number of stock analysts sitting in the audience, listening to one of the most successful business tycoons of Pakistan, Mian Mansha had some interesting news to share. He said he would have breakfast on coming Tuesday with Mark Mobius – the emerging markets fund manager at Franklin Templeton Investments, a global investment firm – who he referred to as the ‘guru’ of the emerging markets. Look out for a surge in foreign portfolio investment!
Published in The Express Tribune, June 9th, 2013.
COMMENTS (48)
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@Murali Nair: "IF ONLY INDIA AND PAKISTAN CAN BE FRIENDS! " ++++++++++++++++++++++++++++++++++++++++++++++++++++ India and Pakistan need only follow the example set by India China Trade: Politics apart from business. But can Pakistan detoxify its blood of Kashmir?
Property prices will double in Lahore? Do we need such a person formulating Pakistan's economic policy? Mr Mansha is just in for the kill, the government will its assets and Mr Mansha will buy. This government's reform agenda is misguided and will result in the worst kind of crony capitalism in the history of Asia.
If everything is so rosy, why are you selling your shares? They're only bound to rise in price if your liquidity is improved.
@Adnan Qamar: Dear Adnan, you only need to look at history pre-1700 to get it. Yet, I appreciate your view point. Historically, India and Pakistan were, are and must remain the ones whose great grandfathers were on either side of Indus and Saraswati. This is no rocket science after all! Can you think what was a "current day India" and "current day Pakistan" culture was pre-47?
Plans for exports ?
@ Murali Nair I agree with everything but one - "Pakistan is also a part of true Indian culture!'' NO! NO! NO! We are not! We are different. Pashtuns are no where in India. You don't find Balochs in India. You don't meet Sindhis and Seriakis and Gilgitis and Baltistanis and Hazaras in India. Punjabis in India are SIKHS and constitute less than 3% of the population. Punjabis in Pakistan are Muslims (religion plays a big role in the lives of Muslims). But yes, we can have normal relations. If we can't be friends let us not indulge in war and blood shed either.
@Farrukh Aslam: Dear Farrukh, read it from Mian Mansha. 65% of Pakistani trade was with India before 1965. So, what changed after 65? The fact is that we can be together again. I do not belong to Punjab or for that matter anywhere associated with east of Indus; I am from the South of India. I guess I have read well Mateen and Asifbhai. Still my question remains: If Pre-65 (19 years after independence) 65% of Pakistani trade was with India, what went wrong post 65? Politics? Religion? Military aggression? OR political aggression? If both or either or neither is true, still there is a way to go with friendship. As I said, I cannot clout politically, but I believe between people we can develop trust and then the Administration on both sides will follow. All said and done when the borders are open, India is not going to consume Pakistan! If that was the case, India could have consumed Sri Lanka, Nepal, Bhutan and Burma a long time back, is it not? INDIAN CULTURE IS SUCH THAT IT DOES NOT GRAND A SINGLE INCH OF ANOTHER'S LAND! After all, Pakistan is also a part of the true Indian culture! Please understand, IT IS ALSO TRUE TO PAKISTAN. So, I am saying, forget all the past, work for the future, if not for us, at least for our children and our grandchildren! Let us bury the hatchet forever friend!
I agree with Mr. Murlai Nair with one addition that the sincerity at both ends of the boarder is a key with a realization of existance of the two countries. If this can be done, the commoners in both the countries can surely defeat the decades built up of fear from each others resulting into mistrust & hatered. However SINCERITY at BOTH ENDs holds the KEY as one part alone cannot do enough.....
@Syed A. Mateen: Very well organised response.Easier said than being done.
@zee what is wrong with Malik Riaz and Mian Mansha? Either of them could pack their bags and go somewhere else with their money and talent and both of them put food on the table of thousands of families and either could succeed anywhere. It is not their fault that system is rotten. Malik Riaz is most effective in employing the tactics that work best in our society. You have to have think skin and a lot pava to succeed in Pakistan where every person is out there to create a hurdle...If he doesn't give wheels to his files then they would sit there forever.
I wish we had more Manshas and Maliks who can make things happen. Mansha is the first person to say that he is not afraid of the competition when most business talk about protection.
One can do business with a friend, not with a by birth enemy.
When I write this, I am not being conservative, but I am talking about a fact which is still existing since our independence.
Good to see that Optimism finally comes back to the country, with Pakistan being on the radar-screen of investment gurus. Mian Mansha has the credit of bringing in Millions of Dollars of foreign investment through May Bank. With business-friendly PMLN government in the Centre and in 2 provinces, we can foresee good days ahead in terms of jobs creation, income opportunities, reduction in poverty and improvement in the living standards of very large number of Pakistanis InshaAllah.
One totally disagrees with Mr.Mansha.What is he talking about,to increase electricity tariff further & decrease it later.During Good times East Pakistan flood tax of Rs. one on fuel was levied with the same understanding & ironically we are even today paying that Rs.one. Mr. Mansha is part of IPP cartel.He is the richest man of Pakistan,how much more does he want to earn to be richer than Bill Gates?
@Ali Tanoli: Thanks Ali. Just note that Lalu only took credit after 5 years of hard work done by Ananth Kumar and Nithish. Love, Murali
Another Malik Riaz in the making. Zardari had Malik now shareefs are gonna have mansha!!
feels good to know something good, with real businessmen of Pakistan. i see a bright future of pakistan too.
With due respect, Mansha is talking nonsense. His figure on circular debt is wrong. It is close to a trillion rupees. No the energy crisis won't be solved just increasing tariffs. He is just pushing his agenda driven by his own selfish interests.
@Asif Butt: Asifji, Kashmir was, has been, is and will remain a "false fox cry" politically. If it cannot be resolved in 65 years, it cannot be solved ever. History tells us that the British partition of India was done in a hurry; even the Drurrand Line agreement expiring in 1993 was not really accounted for. We in India and Pakistan need not be victims of a "hurried partition" by the British and we need not any more waste time on "why and how" of partition. 47 is gone for ever. Let 2013 begin a new dawn for both countries. I do not think India will leave J&K for Pakistan nor will Pakistan leave POK for India ever in our grandchildrens' life time. I am a firm believer that both countries must declare the LOC as a permanent border and forget the past as past. Yet, let me tell you I enjoy interacting with people like you on ET than many papers in India itself. Good luck and love you. Regards, Murali
I disagree with Mian Mansha on India trade. If he is selfishly and short sightedly looking at increasing his Net worth by India Trade then he is right. I mean the comment on Lahore property prices is a classic example. However, he is totally wrong if he is talking of longer term national interests of Pakistan. Finish whatever competitive advantage we have and totally destroy our Medium and Heavy Industry.
@Ali: Well said. It's a hoarder monopolist mentality, like any other business person in Pakistan. Total interest in wealth making and absolutely no interest in a global brand name. Does Mian Mansha support government intervention in fair and equal distribution, as in China and India? Will he support that a Pakistani citizen shall not be able to legally own two properties, or more than 5 acres agricultural land?????? HA! Talk about economic progress! It's not the tycoons who make a nation, it's the hands and feet of the ordinary citizen, the small business man.
The same hoarder manipulater monopolist class system mentality just like any other businessman or elite of Pakistan!!!
Is incereae in property prices a positive or negative sign? If it's so positive than why worldover people concentrate on productivity, industry, economic output? I know people in Pakistan who have worked hard all life, provided livelyhood to thousands directly and hundreds of thousands indirectly through productive value added manufacturing, but today they regret so much hard work and say if they would have just purchased property they would have been better off!!!!
This nation will remain a nation of speculators, lazy hoarders, class elites.
2Murali Nair, wish u best of luck and I admired one thing from india which is Railway under lalu yadev ji and hope to see in Pakistan too.
By seeing election results I have no trust any more in any good progress
@Murali Nair: Mr mural I Nair. I am wholeheartedly with you on opening trade with india. As a Pakistani I now firmly believe in forgetting about the past and turning a new leaf with our Indian cousins. I live in Malaysia and clearly see the benefits of close asean ties that Malaysia enjoys with its neighbours. There is a similar huge potential here among India Pakistan Bangladesh even afghanistan .
@Pakistani:Oh we had no tolerance five years back now... massage of tolerance.. good PMLN voter
@Syed A. Mateen: Mateen sab , you may not realize that you may be touching the lid of another Pandora box here.
What government servants enjoy , regardless of their lack of merit , is a totally horrible side of the reality.
The least I think of it , the better for my mental health.
But I cant believe how these govt. employees keep getting raises annually without doing anything new,additional,exceptional or progressive.
And if you ever try to talk to some of these employees over the topic , its another mission Kashmir to fulfill.
Pakistan ka ALLAH he hafaz hai.
Trade always help. And this non-sense that is sold by foolish journalists that India is a bigger and would some how eat up the economy of Pakistan, they should have a look at India-China Trade, Russia-China and Russia-Turkey trade pattern. In all these cases both the countries favoured themselves and for India- China, India has a bigger share of trade with China.
As for Mian Mansha, the raise of his business and others like him, will benefit the economy of Pakistan and shell in new Companies to invest in the country, and perhaps may lead to foreign investment, but for foreign investment we need to sort out the Law and Order situation, or atleast manipulate our dumb folded media to give out a perception that Law & Order is getting better in Pakistan.
Business and Economy is the crux of Better Pakistan, the slogan raised by PML-N for election campaign, and they just know it so better.
@Murali Nair: Murali sab , its nice to see you take out time to express your precious sentiments.
India has populated itself diversely. And Pakistan has enriched itself fundamentally.
But the current tangible issues are only at the Political and "Intelligence" level.
Indian politicians need to patch up with Pakistani counterparts and RAW needs to start communicating with ISI.
Since that is least probable to happen , we have taken the easiest task. To build upon national economic interests. Then shift to socio-economic interests. The ever cautious method.
Lets give it a go , but I think both you and me we know that if alternately we just address and resolve the Kashmir issue first , every other issue may disappear. And the world might keep pondering to the mystery that how two nations have suddenly become one.
There is no current difference between the practical Indian and the practical Pakistani.
Our history is the only difference/hurdle.
And only one tangible part of history still persists. Kashmir. Lets kill this tension and see how the body recovers to complete health.
Alleviating the circular debt crisis by issuing treasury bonds will only address part of the problem. the other part is enforcing fiscal discipline across various government departments so that they pay their bills on time and in full. What does Mr Mansha have to say about that?
The solution of issuing T-bills is under discussion everywhere and largely appraised by business tycons. If government issue T-bills to like-minded businessmen the government will pay them interest rate from the taxes of general public. This way the transfer of money will be done to businessmen. It will solve energy problem for few months but it will benefit businessmen in long-term.
Is he talking about his own future?
@sm he is not a man he The Man
The future will always look bright for the Mansha's, Sharif's, Zardari's, Kayani's, Gilani's, etc etc...............nothing new. If it does not..................then they have Dubai, UK, Canada, Malaysia, Australia, USA etc.
@Asif Butt: Friend Asif, shall I need to remind you (guess no need), that we can always change our friends but we cannot change our neighbors? KH is right.
@Salman: You should compare the electricity rates on the basis of five years of individual income of a common man and the electricity tariff had gone up during the last five years.
The calculations should be made on overall inflation in the country during five years, increase in a common man's salary working in private sector and increase in electricity tariff, you will get the net figure as what I am talking about.
While talking about inflation in electricity tarrif, I am not taking into account of the salaries of the Government Servants which has been raised by the Goverment.
In addition to this, a government servant is also benefitted by taking illegal gratification, whether in cash or kind, whereas, this facility is not generally available with the people working in the private sector.
how u can say a common man paying high tarrif of electricity?@Syed A. Mateen:
What I see is a new beginning with the advent of the new government. But we must realize that the government is not the minsters it is the respective secretaries and their team of officers, which is the greater challenge for NS govt to cleanse and place right person for right job, keeping in mind and at the same time realizing that Mr. Right is not a good subordinate at many occasions so the freedom to work should be given to the right man only then NS can deliver.
Mian Mansha talks sense... Only thing is that he should not be the one talking about "competitiveness". Notice how his group is invested only in commodities and takes keen interest in businesses where rent seeking is rampant or the potential for cartelization high except for textiles. I would salute his genius if he built a global brand known for its quality and competitiveness. Hope he does.....
comment form one man makes such a big headline, and every one goes around jumping.When IMF and other international agencies employing hundreds of analysts and experts caution Pakistan over civilian,economic,terrorism crisis...painting a bleak future,no one is bothered.
just goes on to say how gullible the public is,more like frog in the well.
@KH: Dear KH, Thank you and I appreciate. The problem between India and Pakistan have always been mired in power politics mired in religion, a tool which has been used by both sides for petty personal political gains. Matter of fact, if we can forget this old age belief of politics being mixed with religion, my country called India and your country called Pakistan can together go wherever we want to go! India, Pakistan and China form a corridor of economy that nobody in the world, including US can forget today. The game is to come out of our political, religious and all other so called "animosity". We need two strong administrations; one in India and one in Pakistan. And we need people from both of our countries like I and you to voice a sense of "cultural reunification". And then China will follow suit. And Asia becomes the true world power in 100 years from now! After all, if US and Canada can do it, England and Ireland can do it, why India and Pakistan cannot do it? Love, Murali Nair, Bangalore
@Syed....Please think positive....since many years we are only discussing problems we have never discussed the solutions....play your part in the development of your country and leave the rest
@Murali Nair: I share the same opinion, and there is no solution other than finding a solution to be friends. Because we cant just pack and take our countries anywhere else.
Mian Mansha, you are spot on! I do not know and hence, I do not want to comment on internal power crisis in Pakistan; but as for trade, here is my take as an Indian: 1965 was a sadly defined moment. A generation has passed away and half the next generation since then! 2013 is different. If only we opened the borders with no fear on either side (that of course will need a political note), Pakistan will gain a 4 Billion USD imports to India year on year. India will gain from transit routing through Dubai and that will be about 9 Billion USD paid only for taxes and duties to third countries which benefit can be passed on to the ordinary citizens of Pakistan. IF ONLY INDIA AND PAKISTAN CAN BE FRIENDS! As a Business Management Professional in India, I can tell you the possibilities are endless - India's import from Pakistan can be textiles, sugar, cotton, jute, vegetables, fruits, carpets, and of course cement - cement alone will constitute three times more import from Pakistan as of today's trade. India can help Pakistan with investments in Automobile, Locomotives, IT, BPO, Business Consulting, Scientific Research, Education, and whatever else we in India are known for (Matter of fact, Indian Railways is sitting with a cash surplus of Rs. 1,20,000 Crore a part of which can be invested in Pakistan)! We have a new regime in Pakistan and we will soon have a new regime in India too, fate of which is unknown but one hopes it will be a sensible new regime. Without recourse to party politics, I am sure Mian Mansha is right, the DAYS ARE BRIGHT. All who would want to criticize me - can just be told that I am an eternal optimist when it comes to the two countries being brothers again!
Inshallah things will change...this nation has shown tremendous patience and love for this great country in times of disaster and distress....hard time has gone now Inshallah
As a commoner, I do not agree what Mr. Marsha has spoken on various issues:
Electricity: He said that "We have to increase the power tariff and the decreased it later on".
Didn't Mr. Mansha knows that a common man is already paying high tariff of electricity, then why the power tariff has to be increased and then decreased, which will give a bad name to newly elected PML(N) government.
Had power rate increased in Pakistan ever been decreased in the past?
Issuing T-Bills is some thing else. These bills will be purchased by the well to do people, but not by a common man.
Trade with India: Pakistan and India do not have normal relation after the creation of Pakistan. We already have three wars with India and with every passing day tension with India is increasing.
Thanks to Al-Mighty Allah that after 1971 Pakistan became nuclear state, otherwise, by now India must have eaten-up the rest of the Pakistan, like India cut our one arm, former East Pakistan and created Bangladesh on the world map.
Normal trade relations with India is only possible when issues between Pakistan and India are resolved 100%, otherwise, doing trade with India is a great risk for Pakistan's business community.
Foreign Investment: Every one knows that why foreign investment is not coming to Pakistan. It is because law and order situation, not only in Karachi, but in the entire country.
Unless government will not control law and order situation completely, foreign investments will not come to Pakistan.
Let's talk reality and should not start day dreaming.