SUBMITTED BY:-ROMAH SAMEUL FA09-BBA-077SAMIYA KAZMI FA09-BBA-081

KARACHI STOCK EXCHANGE

2

PART A

TABLE OF CONTENTS

Executive summary………………………………………………………………………………..4

Part 1: Stock Exchange……………………………………………………………………………5

KARACHI Stock Exchanges of Pakistan…………………………………………..5

KSE-100 Index Profile………………………………………………………………………….....6

Categories and ratings of Stock……………………………………………………..8 KSE stock analysis: 2012………………………………………………………………..9

Performance of KSE versus BSE……………………………………………………………….11

High and Low performance of stock exchange…………………………………………12

Stock Market Crash………………………………………………………………………………….14

Examples of stock market crash………………………………………………………14

Interesting information…………………………………………………………………………….15

Conclusion: Part 1…………..………………………………………………………………………..15

List of abbreviations………………………………………………………………………………….16

3

EXECUTIVE SUMMARY

The first part of the project comprises of what a stock exchange market is really, and its worth

for the health of an economy. However, The major focus in this project would be on the stock

exchanges of Pakistan, and more prominently on the KSE Karachi Stock Exchange, as it is one of

the most 'happening and prominent' stock exchanges of Pakistan. In the beginning of the

project different categories of stocks that are listed as well as their categories and rankings are

given . Moreover it will include the ratings and performance over the last month as well as the

previous year. Further to get a deeper insight into practices of stock exchange, we will be

comparing the KSE with an International stock exchange that is BSE (Bombay stock exchange).

Moreover , this report highlights various reasons as to why the performance of stocks

fluctuates in the exchange and what are the factors which will effect the performance of the

stock exchange market of any country and how its link to the economy of that country.

This report also looks at the performance of the KSE over the past year 2012 .Lastly the project

looks into the reasons for a stock market crash, and why it occurs. This also, highlights the

prominent market crashes in the past. There is also some interesting information about the KSE

is given at the end.

4

STOCK MARKET

A stock market is also known as equity market which is a public entity for the trading of

companystock (shares). The stocks which are listed and traded on stock exchanges are entities

of a corporation or mutual organization which have specialized in the business of bringing

buyers and sellers of the organizations to a listing of stocks and securities together at the same

place.

Some exchanges have physical locations where transactions are carried out on a trading floor,

by a method known as open outcry. This type of auctionis used in stock exchanges

and commodity exchanges where traders may enter "verbal" bids and offers instantaneously.

The other type of stock exchange is a virtual kind, collected of network of computers where

trades are made electronically via traders.

At the beginning of October 2008 the total size of the world stock market was estimated at

about $36.6 trillion.(http://en.wikipedia.org/wiki/Stock_market )

KSE KARACHI STOCK EXCHANE.

Karachi stock exchangeKSEwas established in September 18, 1947 . It is owned by 200

members/brokers.It has 1850 terminals exist at brokers end.At KSE trading currently takes

place through a electronic system.

Market capitalization of KSE is worth US 26.48 billion $ listed capital is US 9.65 billion.

It showed return of 40.19% in 2007

There are 651 companies listed at KSE

There are four indices

I. KSE 100

II. KSE 30

III. KSE all shareindice

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IV. KMI 30

INDEX PROFILE INFORMATION FOR KSE100

The Karachi Stock Exchange KSE100 Index comprises the top company from each of the 34 sectors on the KSE, in

terms of market capitalization. The rest of the companies are picked on market cap ranking, without any

consideration for the sector to make a sample of 100 common stocks with base value 1,000.

TOP GAINERS & LOSERS IN KSE100

TOP GAINER

%

Change

Lafarge Pakistan Cem... +9.83%

Hum Network Ltd +5.00%

Allied Rental Modara... +4.80%

Engro Corp Ltd/Pakis... +4.68%

DG Khan Cement Co Lt... +4.05%

Shell Pakistan Ltd +3.63%

National Foods Ltd/P... +3.51%

Kohinoor Energy Ltd +3.43%

NishatChunian Power... +3.14%

PAK Suzuki Motor Co ... +3.01%

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TOP LOSER

%

Change

Standard Chartered B... -9.68%

Bankislami Pakistan ... -6.16%

Colgate Palmolive Pa... -5.00%

Pakistan Tobacco Co ... -4.62%

Bank of Khyber/The -4.35%

Pakistan Telecommuni... -3.25%

Lotte Pakistan PTA L... -2.58%

Pakistan Internation... -2.30%

Clariant Pakistan Lt... -2.00%

Unilever Pakistan Lt... -1.91%

(source:http://www.bloomberg.com/quote/KSE100:IND)

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RATINGS OF STOCK EXCHANGE

The stocks are rated on the basis of their performance compared to the other stocks.

A (Excellent) - The stock has an excellent track record for maximizing performance while

minimizing risk, thus delivering the best possible combination of total return on investment

and reduced volatility.

B (Good) - The stock has a good track record for balancing performance with risk. Compared to

other stocks, it has achieved above-average returns given the level of risk in its underlying

investments

C (Fair) - In the trade-off between performance and risk, the stock has a track record which is

about average. It is neither significantly better nor significantly worse than most other stocks.

With some funds in this category, the total return may be better than average, but this can be

misleading since the higher return was achieved with higher than average risk.

D (Weak) - The stock has underperformed resulting in a weak risk-adjusted performance.

This fund has proven to be a bad investment over the recent past.

E (Very Weak) - The stock has significantly resulting in a very weak risk-adjusted performance.

This fund has proven to be a very bad investment in the recent past.

U (Unrated) - The stock is unrated because it is too new to make a reliable assessment of its

risk-adjusted performance. Typically, a fund must be established for at least three years before

it is eligible to receive a TheStreet Investment Rating.

A & B Ratings - Are considered to be a Buy.

C Ratings - Are considered to be a Hold.

D & E Ratings - Are considered to be a Sell.

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(http://www.marketwatch.com/commentary)

RATINGS OF STOCK EXCHANGE OVER THE PAST YEAR 2012

During years 2011 and 2012 the performance of KSE had been remarkable. KSE was declared best emerging

market for financial year 2011-12, this development and reduction of discount rates by 2 % by SBP has led the way

to index striking historical level of 16,630 at 3 December 2012.

(http://www.tradingeconomics.com/pakistan/stock-market )

The KSE-100 index galloped by an incredible 5,545 points during the year, starting out at

11,347 points at the beginning of the year and scheduled to end at around 17,000 points. The

index has long since crossed its all-time high. Pushed by the latest 50bps cut in the DR to 9.5%

and release of US$688mn in CSF flows, the KSE-100 gained 2% in Dec’12 to bring 2012 gains to

49%. While the year started off with relations with the US at a trough (closure of NATO supply

routes), gradual improvement saw ultimate release of pending Coalition Support Funds. On the

domestic front, robust share price performance arose on a meeting of positive factors including

strong corporate results, monetary easing (DR cut by a cumulative 450bps since Jul’11) and

capital gains tax reforms, the latter resulting in the highest average daily volumes (135.6mn

shares) and value (US$49.78mn) in 3yrs. Despite the PKR depreciating by 8.42% vs. the US$,

foreign investors remained key players – net FIPI in CY12 came in at US$130mn.

The textile sector provided an unbelievable return of 99 % in 2012.

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Analysts list many reasons for the rejuvenation of the textile sector. The growth of foreign

demand and the weakening of rupee are said to be biggest factors. But of equally important to

most corporate, mainly in the textile sector, is the heavy plunge in their financial expenses.

That has direct relationship with the cost of borrowing.

As the monetary policy eased with interest rates cuts, corporates managed to retain money

that they paid in on debt serving and even retire huge loans. The benefit has travelled down to

the bottom-line of many highly-leveraged corporates in all sectors.

While the large cap stocks such as those in the oil and gas exploration and banking posted a

slower growth, cement stocks were the top performers this year, with the sector giving out an

aggregate of a mind-boggling 152 per cent return during the year.

Investors re-rated the sector on account of improved earnings, constantly growing local and

foreign demand and firm prices.

“All of that went to improve margins of cement producers. Further, reducing cost pressures

due to decline in coal prices and interest rates also helped.” says a sector watcher at a large

brokerage house.

In regard to the phenomenal rise in prices of equities, Arif Habib, former chairman of KSE

argues that in the low interest rate scenario there is ease of valuation, which, in turn, raises

equity values. The demand for risk-free return investment avenues decreases and investors

turn to stock exchanges in search of higher returns.

For corporates, the borrowing appetite increases with lower interest rates. Habib says that

with low interest rates, consumer is comfortable with cash, which raises demands for goods

and help fast moving consumer goods companies and others post a healthier top and bottom

line.Yet most people believe that there is the need to bring bigger companies and bigger floats

into the market and to expand the investor base. The number of companies registered with the

Securities and Exchange Commission of Pakistan exceeds 60,000. Yet the number of listed

companies is around 573. Only three companies made Initial Public Offering (IPOs) during 2012

to seek listing.

(http://oly.com.pk/how-our-stock-exchange-perform-in-2012/ )

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PERFORMANCE OF KSE VS BSE (BOMBAY STOCK EXCHANGE)

The BSE is the oldest stock exchange in Asia with a market capitalisation of over $1 trillion

witharound 5,000 listed companies, making it the world's 14th largest stock exchange. The KSE has

a market capitalisation of $40 billion with 652 listed companies.

Indians usually compare their economic performance with their giant neighbor China. But a

comparison with Pakistan, at least of the stock markets, throws up some unexpected results.

Shares on the Karachi Stock Exchange (KSE) have outperformed Indian stocks over the past five

years.

It has gained 44.3% in the past one year while the BSE (Bombay stock exchange) sensex, the

barometer of the Indian stock market, has slipped 9% at 2,976.

If an investor would have invested in an index fund that tracks the KSE index, his investment

would have appreciated 23% over the past two years, 50% over the past three years and 87%

over a four-year period.

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By comparison, a similar investment in the sensex would have resulted in a depreciation of 48%

over the past two years and 65% over the past three years.

The comparison between the Indian and Pakistani bourses has to come with a number of

caveats. The size of the Pakistani market is very small. However, Pakistani shares have surged

following significant economic backing by the US in exchange for the Pakistani support in the

war against terrorism. The KSE index is at an all-time high due to this support, despite the

economic differences between the two countries.

A partnership between the two exchanges would be significant since it is happening in the

backdrop of both India and Pakistan announcing a series of measures to boost bilateral trade as

goodwill gestures. The Reserve Bank of India is considering Pakistan's Habib Bank's application to

set up a branch in Mumbai. Its counterpart State Bank of Pakistan is contemplating allowing Punjab

& Sind Bank to set up its office in Karachi. Moreover, Pakistan has decided to grant India the Most

Favoured Nation status from January 1 and has also expanded the list of items to be exported to

and imported from India.

If the MoU between the two exchanges is signed by November-end, it could set the stage for more

confidence building measures related to trade and business between the two countries. India's

Commerce Minister Anand Sharma has already said that India is committed to improving relations

with Pakistan. (http://businesstoday.intoday.in/story/bombay-stock-exchange-karachi-stock-

exchange-to-form-alliance/1/190002.html)

(Source: http://articles.economictimes.indiatimes.com/2002-08-12/news/27334632_1_kse-

index-fund-karachi-stock-exchange)

REASONS OF HIGH AND LOW PERFORMANCE OF STOCK EXCHANGE

Inflation: Inflation is a rise in prices across the board. Inflation causes your dollar/ currency to

be worth less. Inflation is the reason a car costs $7,000 in 1981 and $17,000 in 2001. Over the

long term, inflation is good because it means consumers are spending a lot of money and the

economy is robust. When inflation is too high thoughconsumers pull back and spend less. After

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all, $5 is a lot of money to spend on a candy bar. When consumers spend less, companies don't

make as much money. When companies don't make money, investors lose confidence in those

companies. Many investors sell their stock because they believe the stock is worth less and is

only going to decrease in price. As the demand for the stock decreases, the price of the stock

decreases. When this happens to many companies in the stock market, the stock market

experiences a downward shift.

Interest Rates: To bring inflation under control, the Federal Reserve System can raise the

federal funds interest rate, which is the interest rate banks pay on loans they take from the

Federal Reserve. Think of the Federal Reserve as a credit card for banks. When banks have to

pay a higher interest rate, they often raise their own interest rates on loans and credit card

accounts for businesses and individuals. This means that businesses and consumers must pay

higher interest on borrowed funds. This usually causes consumers to spend less and businesses

to borrow less. When businesses don't borrow money to develop that new widget, they tend

to grow at a slower rate. When consumers don't buy things , businesses don't grow companies'

and profits decrease, causing a stock price decrease. Conversely, when the Federal Reserve

cuts the interest rate, investors tend to get excited. The cut means banks will be borrowing and

lending more and at better rates. Businesses will grow and consumers will spend. Company

profits will go up. Investors tend to buy, buy, buy!

Earnings: Profit means the company is doing well but due to Inflation and interest rates, when

a company reports lower profits, investors lose confidence in the company and sell their stock,

which decreases the value of the stock.

Energy Prices: People always need energy. Electricity and natural gas to keep us warm, cook

our food and keep our computers happy. Therefore, the demand for energy is pretty constant.

Only major changes in energy costs have a significant effect on the stock market.

Oil Prices: People almost always need oil, in the form of gasoline. When gas prices are high,

however, some people look to alternative methods of transportation, carpools, public

transportation, bikes, etc. Others keep paying the high price but, as a result, buy fewer

consumer goods. The stock market tends to react negatively to high oil prices.

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International and Domestic Issues: War tends to affect the stock market negatively. The same

goes for crime, fraud, and domestic or political unrest. Consumers worry when CEOs steal

money, terrorists kill innocent people, or politicians are involved in serious scandals. Who

knows what will happen next? Consumers save their money. Businesses make less money.

Investors tend to dump their stocks, causing a fall in the market.

Fear: Besides being afraid of the market consequences of war, oil prices or a federal interest

rate hike, investors are afraid of losing their money. Investors tend to dislike seeing their

money dwindle as the price of their shares decreases.

(http://money.howstuffworks.com/personal-finance/financial-planning/stock-market-

trends1.htm )

STOCK MARKET CRASH MEANS

A stock market crash is usually defined as a sharp dint in share prices of equities listed on the

stock exchanges. In corresponding with various economic factors, a reason for stock market

crashes can also be due to panic and investing public's loss of confidence. Often, stock market

crashes end hypothetical economic bubbles.

There have been famous stock market crashes that have ended in the loss of billions of dollars

and wealth damage on a massive scale.The social security and retirement plans are being

increasingly privatized and linked to stocks and bonds and other elements of the market and

also An increasing number of people are involved in the stock market increases the risk of its

crash.

There have been a number of famous stock market crashes like the Wall Street Crash of 1929,

the stock market crash of 1973–4, the Black Monday of 1987, the Dot-com bubble of 2000, and

the Stock Market Crash of 2008.

Examples of Stock market crashes:

One of the most famous stock market crashes started October 24, 1929 on Black Thursday.

The Dow Jones Industrial lost 50% during this stock market crash. It was the beginning of

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the Great Depression. Another famous crash took place on October 19, 1987 – Black Monday.

The crash began in Hong Kong and quickly spread around the world.

By the end of October, stock markets in Hong Kong had fallen 45.5%, Australia 41.8%, Spain

31%, the United Kingdom 26.4%, the United States 22.68%, and Canada 22.5%. Black Monday

itself was the largest one-day percentage decline in stock market history – the Dow Jones fell

by 22.6% in a day. The names "Black Monday" and "Black Tuesday" are also used for October

28–29, 1929, which followed Terrible Thursday—the starting day of the stock market crash in

1929.

(http://en.wikipedia.org/wiki/Stock_market )

INTERESTING INFORMATION

The KSE is one of Pakistan’s largest tax payer and in the fiscal year 2006-2007 it

contributed over 4 billion towards the national exchequer.

All listed companies contribute over 10% of total revenue collected by the Government

of Pakistan.

All KSE brokers on average pay more than 50% of their profit before tax as presumptive

tax

All investors pay 10 % tax on dividends.(http://www.kse.com.pk/ )

CONCLUSION

Stock market is a public entity for the trading of company stock .Therefore, based on the study

so far, it can be without a doubt said that stock market is an important part of the economy of

a country. It plays a pivotal role in the growth of the industry and commerce of the country

that eventually affects the economy of the country to a great extent. There is a set of rating

methods through which each stock can be rated A for Excellent, B for Good etcwhich guide the

investors to invest in which stock or not . Stock markets are also a good indicator of how the

business and overall economy of a country works and whether any country is a good place to

15

invest or not .This helps to attract the foreign investors There are certain factors which effect

the stock markets trends which include the inflation rate in a country, interest rate , oil

pricesetc . All of this can have a negative impact and eventually can end up in a stock market

crash and the economy of the country will go in recession .whereas rising stock market is the

sign of a developing industrial sector and a growing economy of the country.

LIST OF ABBREVIATIONS

IPO: Initial Public Offering

KESC: Karachi Electric Supply Company

PKR Pakistani rupee

BSE SUNSEX Bombay stock exchange

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FINANCIAL INSTITUION

PROJECT

IQBAL ALI LAKHANI17

PART B

QUESTION

WRITE ABOUT ANY SUCCESSFUL OR INFLUENTIAL ENTREPRENEUR OF

PAKISTAN WHO MADE A MAJOR IMPACT ON ECONOMY.

18

CONTENTS

Executive summary 20

Introduction 21

Businesses Owned and Managed by Mr. Lakhani & Lakson Group of Companies 23

Details of the major businesses 25

COLGATE-PALMOLIVE PAKISTAN 26

EXPRESS NEWS 27

EXPRESS TRIBUNE 27

LAKSON INVESTMENT LIMITED 28

CYBERNET 29

CENTURY PAPER AND BOARD MILLS LTD 30

GROUP OF COMPANIES 30

LAKSON GROUP 30

Interesting Information 31

Impact on the economy 32

Lakson Group and Corporate social Responsibility 32

Conclusion 33

List of abbreviations 34

References 35

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EXECUTIVE SUMMARY

Iqbal Ali Lakhani is a major business tycoon of Pakistan and ranked sixth amongst the richest

people of Pakistan. He is currently the chairman of Lakson Group of companies accompanied

by his other brothers. Mr. Lakhani owns a variety of business units and faces lot more problems

as well. His group's collection consists of detergents and soaps, toothpaste, food products, fast

food restaurants, insurance, internet services, software, paper and board, printing, powdered

beverages and tea, packaging, publications, surgical instruments, and textiles. Mr. Lakhani has

brought in many International Businesses lately like Mc Donald’s and Kraft foods. Together

with his other brothers they always tend to have strong rivalry with Hashoo Groups. Moreover

if we have a look Lakhani group of companies have made it easy for Pakistani nation the access

to major international manufacturers and brands in Pakistan.

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INTRODUCTION

Iqbal Ali Lakhani is a Pakistani entrepreneur belonging to Karachi's well-off Lakhani family unit

that is reported to be amid the peak 22 richest families in the motherland. He is one of four

brothers controlling the Lakson Group and he is the faction chairman.

Their businesses are extremely varied. Their flagship business was the Lakson Tobacco

Company which is the biggest tobacco exporter in Pakistan. The company was lately sold to

Phillip Morris International.

Lakhani, is the majority well-known of all Ismaeli tycoons. Their stakes vary from media,

tobacco, paper, chemicals and surgical tools to yarn, paper, insurance, detergents, and

Pakistan’s main data communication company CYBERNET and further house-hold matter, a lot

of of which are joint ventures with important global conglomerates. ( Iqbalali Lakhani,

Wikipedia, Web). Mr. Lakhani has more than 36 years of top organization knowledge in group

21

companies in finance, marketing, mechanized business and administration relations. His

particular interests comprise Marketing, Finance, Total Quality Management and

Reengineering. Mr. Lakhani is Chairman of the Corporate Boards of 5 Lakson companies which

are scheduled on the stock exchanges of Karachi and Lahore. Mr. Lakhani was Chairman of the

Cigarette Manufacturers Association of Pakistan, Agha Khan Economic Planning Board for

Pakistan and Vice President of the American Business Council of Pakistan.

Mr. Lakhani received B.A from the University of California – Berkeley. He was a associate of

the PSI-National Accounting fraternity; Honor Student’s Society, member of Phi Beta Kappa

and received the departmental prize for exceptional undergraduate accomplishment.

(Lakhani Groups, Accuray, Web)

Mr. Iqbal Ali Lakhani is the Chairman of Lakson Investments Limited. He is the Chairman of

Colgate-Palmolive (Pakistan) Ltd., Lakson Group, Century Insurance Co. Ltd., Century Paper &

Board Mills Limited, Clover Pakistan Ltd., and Merit Packaging. before, Mr. Lakhani was the

Chief Executive Officer at Century Paper & Board Mills Limited, Lakson Tobacco Co. Ltd., and

Century Insurance Co. Ltd. He was the Chairman of Lakson Tobacco Co. Ltd.

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BUSINESSES OWNED AND MANAGED BY MR. LAKHANI & LAKSON GROUP OF

COMPANIES

1. Colgate-Palmolive (Pakistan) Ltd.

Lakson Group,

Century Insurance Co. Ltd.,

Century Paper & Board Mills Limited,

Clover Pakistan Ltd., and

Merit Packaging

Tetley Clover LTD

Titan World

Lakson Investments

Owns a Mc Donald’s Franchise chain in Pakistan

Kraft General Foods (licensing Agreement)

23

Tribune

Express News

Express Newspaper

Tritex Cotton Mills

Princeton Travels LTD

Cybernet

Sybrid

24

DETAILS OF THE MAJOR BUSINESSES

LAKSON TOBACCO COMPANY

Lakson Tobacco Company is one of the principal tobacco companies in the tobacco business

of Pakistan. It was inaugurated by Madam Fatima Jinnah in 1952. Lakson Tobacco

Company was recognized in 1971 by Mr. Hassan Ali Kara Bhai. In September 1971, they launched

their primary brand Lakson King. In 1983, Lakhani brothers purchased the major controlling shares

of PTI. It was a huge amalgamation certainly. In this method Lakson Premier Group was established. In

January 1 9 9 7 , b y t h e v e r d i c t o f S i n d h H i g h c o u r t , t h e y c h a n g e d t h e g i v e n n a m e a s

L a k s o n Tobacco Company. A t t h e p r e s e n t M u h a m m a d I q b a l A l i L a k h a n i i s t h e

c h a i r m a n o f t h e L a k s o n t o b a c c o company. (Lakson Group, Lakson, Web)

25

COLGATE-PALMOLIVE PAKISTAN

Colgate Palmolive Pakistan, one of the foremost manufacturers of individual heed and

customer goods in the nation, it began its operations reverse in 1985 whilst the US granted the

firm license to manufacture and market Colgate Palmolive products in Pakistan.

Now, the firm is engaged in the manufacture and promotion of a quantity of of the important

global brands of oral and private care products, bringing a a small number of of the world's

most trusted household names such as Colgate Toothpaste. (Colgate-Palmolive Pakistan,

Brecorder, Web)

26

EXPRESS NEWS

Express News is an Urdu language Pakistani television news channel based in Lahore, launched

on January 1, 2008. It is owned and sprint by the country's third major Urdu daily,Daily. The

owners of the channel, Lakson Group, launched 'Express 24/7', a 24-hour Pakistani English

news channel on February 5, 2009. Express News is the most-watched news channel of

Pakistan.

EXPRESS TRIBUNE

27

The Express Tribune is a Pakistani newspaper. The title launched on April 12, 2010, in Karachi in

the sign of Century Publications Private Limited, fraction of the Lakson Group of companies. It

is the first internationally allied newspaper in Pakistan, in corporation with The International

Herald Tribune, the international version of The New York Times.

The paper's self-proclaimed task is: "to defend the liberal values and egalitarian traditions we

believe in, and which deserve to be upheld in writing that is together educational and

understanding". The newspaper covers a diversity of topics ranging from politics to the

economy, foreign policy to investment, and sports to culture. The paper identifies

withcentre and its readership is generally on the mainstream left of Pakistani political and

social opinion.

LAKSON INVESTMENT LIMITED

28

Lakson Investments Limited, the asset organization support of The Lakson Group, is licensed

by the Securities & Exchange Commission of Pakistan to give asset management and

investment suggested services in the Non Banking Finance Companies Rules, 2003 and

Notified Entities Regulations, 2008.

Lakson Investments at present manages six exclusive open end mutual funds. The Lakson

Money Market Fund (LMMF) is intended for persons with a small term asset prospect, the

Lakson Income Fund (LIF) caters to those with a middle investment horizon and the Lakson

Equity Fund (LEF) provides diversified contact to household stocks.

Lakson Investments is the merely Pakistani AMC to offer mutually domestic and

internationally focused funds covering domestic stocks, domestic money markets, domestic

fixed income, developed markets, emerging markets and global commodities. The finances

are the Lakson Equity Fund (LEF), the Lakson Money Market Fund (LMMF), the Lakson Income

Fund (LIF), the Lakson Asset Allocation Emerging Markets Fund (LAAEMF), the Lakson Asset

Allocation Developed Markets Fund (LAADMF) and the Lakson Asset Allocation Global

Commodities Fund (LAAGCF). In addition to the open end funds, Lakson managed financial

records offers modified investment management services for investors with a minimum of

PKR 25 million in investable assets. (Lakson Investment, Li, Web)

CYBERNET

29

CYBERNET is the main Internet and Data Communication Network Service Provider in Pakistan.

The company offers a variety of services to the corporate and consumer sectors. CYBERNET

akin to to consider that our partnership with their clients is their greatest credential. (Cybernet,

Cyber.Net, Web)

CENTURY PAPER AND BOARD MILLS LTD

30

Century Paper & Board Mills Limited (CPBM) is fraction of Lakson Group of Companies

Pakistan. This business unit manages the paper related items and packaging tasks. (Cemtury

Paper, CenturyPaper, Web)

GROUP OF COMPANIES

LAKSON GROUP

Lakson Group was founded in 1954. The Group's collection consists of detergents and soaps,

toothpaste, food products, fast food restaurants, insurance, internet services, software, paper

and board, printing, powdered beverages and tea, packaging, publications, surgical

instruments, and textiles. More over Lakson group deals in garments, leather, cloth, paper,

packaging, textile, tobacco industry and many other areas of business in all over the country.

The Lakson Group, with its hub businesses centering on customer goods, generates sales

revenues in excess of Rupees 34 billion* (US$ 570 million) annually. Group assets exceed

Rupees 14 billion (US$ 230 million).

Lakson group of companies is a state base group of companies. It comprises of different

companies. There are 29 companies in the Lakson group of companies. The board of directors

consists on Mr. Sultan Ali Lakhani, Iqbal Ali Lakhani, Amin Lakhani, Zulfiqar Ali Lakhani.

INTERESTING INFORMATION

31

The Lakhanis are at present having a tough instance at the hands of NAB. Sultan Lakhani and

his three brothers sprint this prominent faction and the chain of McDonald’s restaurants in

Pakistan. NAB has suspected the Lakhani’s of having created fake companies through worthless

directors and raised huge loans from a variety of banks and financial institutions. The

chairperson is at present abroad after having served a jail term with younger sibling Amin,

though the latter was released much earlier. NAB had reportedly demanded Rs 7 billion from

Lakhani’s, but later agreed they pay only Rs 1.5 billion over a 10-year age. Lakhani’s, like their

arch-rivals Hashwani’s, are the most well-known of all Ismaeli tycoons. Their stake array from

media, tobacco, paper, chemicals and surgical equipment to cotton, packaging, insurance,

detergents and other house-hold items, many

of which are combined ventures with leading global conglomerates. Though Lakhani’s are in

unstable waters at present, the success that greeted them during the last 25 years especially

has been marvelous. They have rifts with big trade empires regardless of being known for their

refined nature. Whether it is any government in Sindh or at the Federal level, Lakhani’s have

had trusted friends everywhere, though the present era has proved a painful exception.

32

IMPACT ON THE ECONOMY

Lakhani Brothers since a very long time have benefited the economy. They have given major

businesses to the country along with a lot of employment opportunities. Mr. Lakhani tend to

have a greater scope towards the social responsibility factor as we have seen him being

indulged in many social affairs along with a variety of charity and welfare works. Lakson Group

of Companies has brought in many global SBU’s n Pakistani which helped global firms to enter

in here this also helped in getting a foreign direct investment too.

LAKSON GROUP AND CORPORATE SOCIAL RESPONSIBILITY

Lakson is following the environment, community and employees modules. The company is

taking employees’ safety measures which show their serious concern about safety of the

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employees. All the welfare operations help them to create goodwill of the company in specific,

and for Lakson group in general. (Impact of major business units on Pakistan’s Economy,

MianSajidNazir, MehnoorIftikhar, Aiza, HussainRana, January 7, 2010)

CONCLUSION

Iqbal Ali Lakhani is a splendid example of how an entrepreneur should be. He proved by his

work that a simple B.A degree holder can even make splendors in the business. Lakhani

Brothers seeing as a extremely extended instance have profited the financial system of

Pakistan. They have given main businesses to the state along with a lot of employ

opportunities. Mr. Lakhani be inclined to have a greater range towards the communal liability

issue as we have seen him being indulged in many social affairs along with a variety of charity

and welfare works.

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LIST OF ABBREVIATIONS

Co. – Company

LTD – Limited

SBU- Strategic Business Unit

PKR- Pakistani Rupee

B.A – Bachelors Of Arts

PTC – Pakistan Tobacco Company

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REFERENCES

http://en.wikipedia.org/wiki/Iqbal_Ali_Lakhani

http://www.accuray.com.pk/aboutus/IqbalaliLakhani.asp

http://investing.businessweek.com/research/stocks/private/person.asp?

personId=29602806&privcapId=20412860

www. lakson .com.pk/

http://www.li.com.pk/company-profile/

http://www.cyber.net.pk/who_we_are/introduction.php

http://www.centurypaper.com.pk/

http://www.findpk.com/yp/Biz_Guide/html/40%20Richest%20Pakistani.htm

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1532625

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