Countering Violent Extremism: Mapping Perceptions, Practices and Potential of Private Sector and Local Businesses

Table of Contents

Acknowledgements ...... v Acronyms ...... vii List of Figures ...... ix List of Tables ...... xi List of Boxes ...... xiii Executive Summary ...... xv

INTRODUCTION ...... 3

METHODOLOGY ...... 6 Section-II ...... 11

SOCIO-ECONOMIC CONTEXT ...... 11

A. SOUTH PUNJAB: ...... 11

B. :...... 14 Section-III ...... 19

VIOLENT EXTREMISM: NATURE AND IMPACT ON PRIVATE SECTOR AND LOCAL BUSINESS ...... 19

NATURE OF VIOLENT EXTREMISM ...... 20

VIOLENT EXTREMISM AND ITS IMPACT ON LOCAL BUSINESS AND PRIVATE SECTOR ...... 22 Section-IV ...... 27

VIOLENT EXTREMISM: PERCEPTION, POTENTIAL AND PRACTICES OF LOCAL PRIVATE SECTOR TO RESPOND ...... 27

VIOLENT EXTREMISM: THE PUSH FACTORS ...... 27

PRIVATE SECTOR SPENDING: TRENDS AND PRACTICE ...... 29

PRIVATE SECTOR: POTENTIAL ROLE IN COUNTERING VIOLENT EXTREMISM ...... 32 Section-V ...... 39

CORPORATE SECTOR: IDENTIFYING THE ROLE AND FUTURE DIRECTIONS ...... 39

CONCLUSION AND LOOKING AHEAD ...... 47

KNOWLEDGE GENERATION: ...... 48

ENTRY POINTS AND OPPORTUNITIES FOR PRIVATE SECTOR ENGAGEMENT: ...... 49 Annex-I ...... 53 Bibliography ...... 53 Annex-II ...... 56 List of Key Informant Interviews: Local Business, Private Sector, and Public Sector Representatives ...... 56

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Annex-III ...... 62 List of Key Informant Interviews: Corporate Sector ...... 62 Annex-IV ...... 63 List of Focus Group Discussions and Participants ...... 63 Annex-V ...... 70 Private Sector Organisations/Individuals Supporting Sports, Festivals, Literary Gatherings etc...... 70 Annex-VI ...... 73 Note on Sample- Geographical Coverage, Sample Size, and Nature ...... 73

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Acknowledgements

Institute of Social and Policy Sciences (I-SAPS) wishes to thank all those individuals who contributed to this study by facilitating data collection, and the colleagues who contributed towards the technical part of the study. We are especially grateful to the representatives of private sector business organizations, district traders associations and CSR teams of corporate sector organizations, whose keen interest provided a key stimulus for the current report. We are thankful to the core team led by including Ahmad Ali, Research Fellow, Noman Ahmed, Research Associate and Iman Hassan Research Fellow for undertaking the research.

I-SAPS owes a debt of gratitude to those who were so generous with their time and expertise, we are particularly grateful to Mr. Adeel Jafferi and Mr. Bilal Sherpao of Azm-e-, USAID for their rich and valuable insights which have immensely enriched the analysis. We are also thankful to the experts for reviewing the draft chapters and suggesting improvements. We would also like to express our sincere gratitude to Azm-e-Pakistan for their support, cooperation and continuous encouragement.

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Acronyms

AKTI All Karachi Traders‟ Alliance CSR Corporate Social Responsibility CT Counter Terrorism CVE Countering Violent Extremism FGD Focus Group Discussions FMCG Fast-Moving Consumer Goods KCCA Karachi Cricket Club Association KE Karachi Electric (KE) KEDA Karachi Electronics Dealers Association KII Key Informant Interviews MPCL Company Limited NACTA National Counter Terrorism Authority NAP National Action Plan NISP National Internal Security Policy OECD Organization of Economic Cooperation and Development OICCI Overseas Investors Chamber of Commerce and Industry PCP Pakistan Center for Philanthropy PLC Public Listed Companies PMI Philip Morris International PPAF Pakistan Poverty Alleviation Fund PSS Philanthropy Support Services Pakistan Telecommunication Company Limited SANA Sindhi Association of North America SECP Securities and Exchange Commission of Pakistan SITE Sind Industrial Trading Estate Area VE Violent Extremist VEOs Violent Extremist Organizations

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List of Figures

Figure 1: Civilian and LEA Fatalities 2005-15...... 4 Figure 3: Nature of Violent Extremism ...... 20 Figure 4: Types of Violent Extremism ...... 21 Figure 5: Actors Facilitating Violent Extremism...... 21 Figure 6: Does Violent Extremism Effects Business Activities ...... 22 Figure 7: Effect of VE on Local Business and Private Sector ...... 22 Figure 8: Consequences of VE - District Wise ...... 23 Figure 9: Violent Extremism- Contributing Factors ...... 27 Figure 10: Lack of Social Facilities and Violent Extremism ...... 28 Figure 11: Section of Society Most Susceptible to Violent Extremism ...... 28 Figure 12: Local Private Sector Spending Patterns ...... 30 Figure 14: Do Private Sector and Local Business have Role in Countering Violent Extremism? ...... 33 Figure 15: What Possible Actions Private Sector/Local Business Should Take for CVE...... 33 Figure 14: Private Sector/Local Business Actions for CVE -District Wise ...... 35

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List of Tables

Table 1: Overview of the Private Sector in South Punjab ...... 14 Table 2:: Private Sector Supporting Cultural, Music, Sports and Civic Activities in South Punjab ...... 31 Table 3: Corporate/Business Entities Interested in Partnering for CVE with AeP...... 43

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List of Boxes

Box 1: Defining Private Sector & Local Business ...... 5 Box 2: Incidence of Religious and Sectarian Conflict in Muzaffargarh ...... 20 Box 3: Support for Seminaries and Religious Education...... 29 Box 4: Private Sector in Aid of District Governments ...... 33 Box 5: Promotion of Sports and Local Culture: Efforts by District Government Bahawalpur ...... 36

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Executive Summary

In last two decades there has been a substantial increase in violent extremism in Pakistan, resulting in thinning levels of tolerance, acceptance and harmony. The state institutions and civilians are increasingly susceptible to the costs of the proliferation of radicalization and resultant extremism. The violent extremist (VE) narrative is embedded in religious rhetoric which at the moment dominates the social and political discourse in the country. Not discounting the extraordinary counter-terrorism measures introduced by Pakistan, more substantial initiatives are required for countering violent extremism (CVE). The current scenario necessitates reclaiming the socio-political and cultural space lost to VE narrative of violent extremist organizations (VEOs) over the past decade. In order to mount a response to this multidimensional challenge, fundamental shifts are necessary in the socio-political spheres. The present study has been a part of the efforts aimed at making these shifts happen. Recognizing the role of private sector the study maps existing practices which are contributing towards responding to the VE in their respective areas and identifying the partners and opportunities for engaging the private sector for initiatives aimed at countering the violent extremism and reclaiming the space lost to radical and violent extremist ideologies.

The role of local businesses and private sector has been considered promising for countering the violent extremism and radicalization for a number of reasons. For instance, local businesses and private sector are the principal victims of violent extremism and ensuing militancy in terms of loss of business activity. Additionally, the local business leaders enjoy considerable sphere of influence in their respective areas, thus enabling them to engage and influence effectively at local level to counter violent extremist trends; the local businesses and private sector have already been working in close proximity with the governments at local tiers in times of emergencies, incidence of terrorism, etc. Efforts for countering violent extremism and militancy have direct dividends for the private sector by ensuring business friendly environments.. The findings of the study corroborate these key assumptions; private sector and local businesses were found to be conscious of the key challenges brought forth by the rise of violent extremism. Besides being well-conversant with the key drivers of violent extremism in their respective areas, the local businessmen had pragmatic solutions to respond to the challenge of VE. Poverty and illiteracy being the bane of South Punjab along with other factors have been fueling the recruitment drive of militant extremists. Increasing employment opportunities, responsive and efficient delivery of public services, like education and health, as well as public utilities, like drinking water, at local tiers, uniform policy measures and investing in local culture, heritage and sports were some of the key measures proposed by the local private sector. A number of organizations and individuals were identified who were supporting and organizing activities which contribute toward CVE efforts ranging from sports events to cultural festivals. The local private sector expressed a strong inclination and commitment on their part to invest in the cultural events, sports, festivals, and promotion of local crafts.

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In order to have an understanding of the perceptions and potential role of the corporate sector, interviews were conducted and the portfolio of CSR initiatives of ten major companies was reviewed, these included, Mobilink, Mari Petroleum Company Limited (MPCL), Pakistan Telecommunication Company Limited (PTCL), Karachi Electric (KE), Philip Morris International (PMI), Unilever; , Indus Pharma, Hinopak Motors Limited, and . . Substantial majority of the company representatives were conscious of the threat posed by violent extremism and expressed interest in exploring possibilities to direct their efforts towards the challenges of violent extremism and radicalization. The contributions by the corporate commercial entities and strategic partnerships with CSR of corporate sector, if utilized will be a huge resource to for supporting CVE initiatives in Pakistan and particularly at local level.

Recommendations: While looking ahead the study proposes two categories of recommendations; first, focusing on evidence generation and knowledge base; and the second set of recommendations provide entry points and opportunities for engagement for countering violent extremism. These include:

A. Knowledge Generation:

i. Evidence generation: The present study notwithstanding its limited scope fills a knowledge gap and highlights the need for a more comprehensive evidence base on the role of local business and private sector for informing the existing CVE/CVT policy ii. Model District CVE Strategy for Engaging Local Business and Private Sector: The proposed Model District CVE strategy besides identifying the local push and pull factors for VE will provide a locally relevant framework to engage private sector, local businesses, and district chambers of commerce and will be valuable for developing informed and targeted CVE interventions.

B. Entry Points and Opportunities for Private Sector Engagement:

i. National Policy Engagement for Operationalization of National CSR Guidelines (SECP): A national and provincial level policy engagement is proposed with an aim to operationalize the National CSR guidelines. ii. A multi-tiered engagement with corporate sector is proposed including; first, PCP- facilitated engagement with organizations doing corporate philanthropy; and second, one-on-one targeted engagement with corporate sector/ CSR programs. iii. Engagement with NACTA: An informed engagement with NACTA for devising a perceptive strategy for engaging local businesses and private sector in South Punjab and Karachi. iv. Exploring possibilities of partnering with Corporate Sector: During the course of research a number of corporate entities expressed interest in exploring collaboration on initiatives aimed at countering violent extremism. These include, Engro Corporation, Unilever, Hinopak Motors Limited, Indus Pharma, and Mobilink, A

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formal follow up to explore the areas of mutual interest and collaboration is recommended. v. Piloting the Engagement with Private Sector in one District: the study proposed piloting the initiative in District Bahawalpur vi. Comprehensive engagement at District and Sub-District tiers including; district- specific strategy for engagement with district traders associations; Track Your Money: sensitization of and training of local traders associations; formation of joint working groups with district governments; engagement with local establishment of national and multinational companies; creating local champions of change.

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.

SECTION - I

INTRODUCTION

Countering Violent Extremism Introduction

INTRODUCTION

I. The spectre of violent extremism is not a new phenomenon for Pakistan, nonetheless in recent decades it has elicited a rising tide of radicalization and intolerance in the society1. Pakistani society in the last two decades has seen a radical transformation, resulting in thinning levels of tolerance, acceptance and harmony. Violent extremism is rampant at all levels of society which aptly explains the traction radical ideas receive in Pakistan. The violent extremist organisations (VEOs) have become a permanent feature of countries socio-political landscape. The violent extremism in Pakistan is a multi-dimensional phenomenon, manifested in movements for Islamisation, sectarian hegemony, Talibanization, ethnic and political violence/insurgency in Karachi and Balochistan. The past two decades in Pakistan have been peppered with a plethora of incidents of violence, hate crimes, and terrorism2. The challenge has intensified due to the geo-strategic factors which have exacerbated the existing drivers of conflict. State institutions and civilians are increasingly susceptible to the costs of the proliferation of radicalization and resultant extremist acts of violence.

II. The country has been badly scarred by multiple political, ethnic, religious, and sectarian conflicts. Increase in violent extremism has yielded bitter fruits for the people of Pakistan. Since 2007, there has been an alarming increase in the number of incidents of conflict and terrorism in the country, according to the Government of Pakistan, there have been 16,375 incidents of terrorism across the country from 2007 to 20153. It is estimated that during 2001 to 2013, 49,000 civilians have lost their lives

1 Internationally there is no agreed upon definition of the term “Violent Extremism”- however review of literature suggests a general unanimity on the key parameters defining the term. UN Security Council Resolution 2178 of 2014 is instrumental in this context as it considers violent extremism as “Conducive to terrorism” thus making it a basic factor leading to terrorist activities. The term has been defined in a number of policy documents, e.g. draft resolution by Asian-African Legal Consultative Organization (AALCO) on Principles and Guidelines to Combat Violent Extremism and its Manifestations defines VE as “The instigation or support of acts of violence, through the malicious invocation or propagation of religious teachings, faith, or any other beliefs conducive to intolerance or hatred, in the pursuit of ideological, political or other goals.” Similarly the Australian National Counter-Terrorism Committee Framework defines violent extremism as: “a willingness to use or support the use of violence to further particular beliefs, including those of a political, social or ideological nature. This may include acts of terrorism.” However for the purpose of this report, the following definition of VE has been is used; “Advocating, engaging in, preparing, or otherwise supporting ideologically motivated or justified violence to further social, economic or political objectives” USAID, “The Development Response to Violent Extremism and Insurgency: Putting Principles Into Practice,” USAID Policy, September 2011. 2 From the assassination of Punjab Governor Salman Taseer, and Federal Minister for Minority Affairs Shahbaz Bhatti (2011), to a heinous public lynching of two brothers in Sialkot (2010), honour killing of a couple in Lahore (2014), to the lynching of a Christian family in Kot Radha Kishan (2014), to Killing of moderate clerics Mufti Sarfraz Ahmed Naeemi and Maulana Hassan Jan, Pakistan's recent history is marred with high-profile and countless low-profile incidents that exhibit this malaise. 3 Incidents include attacks on LEAs, Bomb Blasts, Hand Grenade Explosions, Mine Explosions, Missiles Fired, Rockets Fired, Sectarian Violence and Suicide Attacks. National Crisis Management Cell, Ministry of Interior, Government of Pakistan.

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Countering Violent Extremism Introduction

to the on-going militancy and terrorist acts4. Though in last two years, there has been a significant reduction in terrorism-related incidents, which reduced from 1,640 in 2014 to 996 in 2015. The country, however, still ranks fourth in the global terrorism index and has highest number of deaths from terrorism in the world5. The predicament is, however, more complex than what it appears from data. Though the incidence of terrorism has ebbed, radicalisation and violent extremism has entrenched itself in the social fabric of the country. The challenge faced by Pakistan has been amplified by the persistent problems of weak governance, poor socio-economic indicators, high unemployment rates, dysfunctional economy, poverty, and growing inequalities.

Figure 1: Civilian and LEA Fatalities 2005-15

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2500

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1500 Civilian LEA 1000

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0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

III. The federal and provincial governments in recent years have been attempting to respond to the emerging challenge by undertaking measures to prevent and counter the spread of violent extremism. Besides the counter terrorism (CT) efforts spearheaded by Pakistan Army, a number of counter violent extremism (CVE) initiatives have been introduced6. These include De-Radicalisation programmes in Swat and Punjab, Counter-Radicalisation initiative, Madrassa Reforms, National Internal Security Policy (NISP) 2014, and enactment of Pakistan Protection Act 2014. The introduction of National Action Plan (NAP) in 2015 is an effort to provide an

4 Mudassir Raja, “Pakistani Victims: War on Terror Toll Put at 49,000,” The Express Tribune, March 27, 2013, http://tribune.com.pk/story/527016/pakistani-victims-war-on-terror-toll-put-at-49000/. 5 Institute for Economics and Peace. 2015. "Global Terrorism Index Report 2015". available at http://economicsandpeace.org/wp-content/uploads/2015/11/Global-Terrorism-Index-2015.pdf 6 Countering Violent Extremism (CVE) refers to “reducing the number of terrorist group supporters through non-coercive means by identifying and addressing factors conducive to spread of terrorism”. Will McCants and Clinton Watts, “U.S. Strategy for Countering Violent Extremism: An Assessment,” Foreign Policy Research Institute E-Notes, December 2012. A similar concept has also been adopted by United Nations, and is termed as “Counter-Radicalization” The term has been defined as “deterring disaffected (and possibly already radicalized) individuals from crossing the line and becoming terrorists.” United Nations, First Report of the Working Group on Radicalisation and Extremism that Lead to Terrorism: Inventory of State Programmes

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Countering Violent Extremism Introduction

overarching framework for the government‟s strategy for putting forth a comprehensive response to counter the menace of terrorism. NAP has a dedicated component to counter violent extremism in the country. However, a comprehensive policy in this regard is still awaited. The magnitude of the challenge necessitates not only ramping up measures to neutralize the terrorist and militant outfits, but also to employ a wide range of actions to effectively minimize the enabling factors of radicalization and measures to prevent and counter violent extremism (CVE).

IV. The role of economic factors in general and private sector/business enterprises in particular towards shaping, diffusion and Box 1: Defining Private Sector & perpetuation of violent extremism and conflict Local Business is a widely recognized phenomenon. In recent years, the role private sector can play in social Private Sector/Local Business sector development has started to gain Private sector is quite broad a significant traction in the international and term and includes almost all kind national development discourse. United States of socio- economic activities in a Secretary of State John Kerry, while calling given geography. For the purpose for action to countering violent extremism of this study, private sector refers (CVE) at the World Economic Forum in to local business establishments, Davos appropriately stated, “The bottom line whether in retail, manufacturing, is we need everyone involved—governments, service sector, value-added foundations, philanthropists, NGOs, services etc. No formal definition for local corporations, faith leaders, the private business exists. For the purposes sector.” Nevertheless, the role of the private of this study, local business sector in furthering the counter violent refers to all private economic extremism narrative and building peaceful actors (including related business societies has yet to receive attention in terms associations and chambers of of research, knowledge generation and policy commerce) originating from and engagement. The existing discourse is more based in a specific geographical concentrated on the role of multinational and territory (district). big conglomerates in general and examination of the nature and impacts of their respective Corporate Social Responsibility (CSR) policies. While not discounting the important role being played by the large private enterprises, the role of local private sector is found largely missing from the on-going policy discourse and engagement for countering violent extremism.

V. That local businesses and private sector are instrumental in achieving quick gains in terms of responding to the challenge of violence, extremism and militancy. There is a wealth of evidence from conflict hit areas such as Northern Ireland, the Caucasus and Sri Lanka7. However, in the case of Pakistan, there is no perceptible empirical data

7 Please see; Ballentine, Karen and Heiko Nitzschke 2003. Beyond Greed and Grievance: Policy Lessons from

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Countering Violent Extremism Introduction

which identifies or analyses the role of local business and private sector in countering the prevalent violent extremist narratives. Small and medium-sized businesses in Pakistan possess huge peace-building potential. Local businesses exercise substantial influence in their communities, towns and villages. They are more knowledgeable about community dynamics and the push and pull factors of violent extremism within their communities. Being among those who bear much of the financial – and often physical – brunt of terrorism, they have a direct stake in a peaceful and economically thriving society, but are rarely engaged in initiatives which can contribute towards addressing the causes for perpetuating support for extremist ideologies and militancy8.

VI. The very principles, practices and institutional infrastructure that are needed to effectively address the challenges of radicalization, violent extremism, conflicts, promotion of tolerance and respect for diversity are waning. The scenario considerably facilitates the militant and terrorist groups to propagate their narrative and increase levels of recruitment from the socio-economically marginalized sections of society. The magnitude of the challenge of countering violent extremism in Pakistan necessitates not only ramping up measures to neutralize the terrorist and militant outfits, but also to employ a wide range of actions to effectively minimize the enabling factors of radicalization and measures to prevent and countering violent extremism.

VII. Against this backdrop the present study attempts to address the knowledge gap in context of Pakistan by examining the following questions: a. What are the perceptions of the local business community on the nature of violent extremism and ensuing militancy in their respective area and how it has affected the business environment? b. Are they playing any role at present they are playing to contribute towards responding to the challenge of violent extremism? c. d. Who are the actors most likely to support and help sustain counter violent extremism initiatives in their respective areas?

METHODOLOGY

VIII. The study adopted a mix-method approach to collect the required quantitative and qualitative data for providing analysis and identifying key trends. The research was carried out through an initial desk review of relevant secondary sources, followed by

Studies in the Political Economy of Armed Conflict. New York: International Peace Academy; D Sunita Kapila and Donald Mead (eds.) 2002. Building Businesses With Small Producers. Successful Business Development Services In Africa, Asia, And Latin America. London/ Ottawa: ITDG Publishing/ International Development Research Centre (IDRC); Economy and Conflict Research Group 2004. From War Economies to Peace Economies in the South Caucasus. London/ Moscow: International Alert. 8 Olawale Ismail and Rabia Nusrat (2014). Exploring the Potential of the Private Sector to Contribute to Peacebuilding in Pakistan.

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Countering Violent Extremism Introduction

field research. The field research included a series of qualitative, semi-structured interviews with select key informants from four districts of South Punjab and Karachi. In addition to Key Informant Interviews (KII), Focus Group Discussions (FGDs) were conducted with a carefully selected sample of businessmen, entrepreneurs, and select representatives of civil society.

a. DESK REVIEW In order to analyze socio-economic indicators of the target districts as well as to map the landscape of private and business sectors, a review of relevant literature and data was carried out. The review included review of data regarding district indicators, quick review of NSIS data for the relevant districts, an overview of the chambers of commerce and industries as well as business-related key institutions. In addition to the above data, any relevant study or report already produced by researchers and institutions focusing the target districts was also reviewed. (A list of the secondary data reviewed for the study is attached as Annex).

b. KEY INFORMANT INTERVIEWS (KIIS) For Key Informant Interviews (KIIs) the sample size was 85, with 17 respondents from each district along with an additional 12 interviews from the corporate entities and government authorities at federal and district tiers. The sample of small and medium business entrepreneurs was selected using Purposive Sampling Technique. The main goal of purposive sampling was to focus on particular characteristics of our target population that are of interest, which will best enable us to answer our research questions. The respondents of these additional 12 interviews were categorized into two sets, with ten respondents from the corporate sector and two respondents from the corporate and philanthropy regulation. .

i. QUESTIONNAIRES AND INTERVIEWS: Our team conducted face-to-face interviews with the respondents in all the select districts. The KII questionnaire included both close-ended and open-ended questions. The questionnaire was divided in six sections. Besides the basic information, the questionnaire focused on exploring the nature of violent extremism in the specific area in order to identify the types, causes, and major actors involved in perpetuating violent extremism. Rest of the sections included ascertaining the activities undertaken for the support of local communities, examining potential areas of interest for future investments which can support initiatives for countering violent extremism (CVE) and peace-building. The questionnaire was pilot tested before survey to see whether the respondents understand the questions easily, and whether the organization of questionnaire is consistent with the respondents‟ cognitions.

c. FOCUS GROUP DISCUSSIONS

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Countering Violent Extremism Introduction

A total of 10 Focus group discussions (FGDs) were conducted with key stakeholders in each target districts (02 in each district) to map their views, identify trends and explore opportunities for future collaborations focusing on youth engagement, peace-building and sustainable development.

i. THEMATIC GUIDELINES AND FGDS: A total of 10 FGDs were conducted with 114 participants in five districts. The discussions were focused on three major themes. These included identification of major extremist threats, impact on the local businesses, and exploring the possible avenues for mitigating the identified conflicts. Each FGD included 8-10 representatives from local industry, commercial business, traders‟ associations, service providers, government servants, civil society organizations, and media representatives.

IX. Scope and Limitations of the Study: The study was carried out in five target districts, including four districts from Punjab and one district from . The districts in Punjab included the following:

i. Bahawalpur ii. Lodhran iii. Multan iv. Muzaffargarh

From Sindh, the selected district was Karachi. Thus 80% of the data collection was from Punjab, whereas 20% of the field data was gathered from Sindh. The subject of the present study, i.e., role of private sector at local levels in responding to countering violent extremism and peace-building through promotion of sports, local culture, values, etc., is an area where there has been no previous research or knowledge available in context of Pakistan. The work already done essentially focuses on the role of corporate sector. Thus besides being a limitation, the present study is also significant for being the first in terms of producing the evidence base for an informed engagement at the district levels.

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SECTION - II

SOCIO-ECONOMIC CONTEXT

Countering Violent Extremism Section-II

Section-II

SOCIO-ECONOMIC CONTEXT

X. The study was conducted across two diverse geographic areas, i.e., South Punjab and Karachi, each having its own peculiar socio-economic landscape and challenges in terms of violent extremism. South Punjab is termed as a base and recruiting ground for militant outfits. A serious concern has been the growth and expansion of violent extremist organizations (VEOs) in this area.9 Whereas Karachi, besides being the commercial and financial capital of Pakistan, has been a victim of violence by political, religious, and ethnic groups for last three decades. The rise of VEOs to claim control over different areas of political and economic influence in presence of competing militant wings of political parties and criminal gangs have made the situation more complex for the city.10 This section by way of setting the context presents the socio-economic milieu of the geographical entities focused during the course of the study. In order to clearly identify the peculiar nature of the study areas, the section is divided into two parts with the first providing a background of South Punjab and the next provides a snapshot of Karachi.

A. SOUTH PUNJAB:

XI. Punjab is administratively divided in nine divisions and 36 districts. Out of these nine divisions, three divisions Multan, Bahawalpur and Dera Ghazi Khan constitute Southern Punjab. These divisions are further sub-divided into 11 administrative districts. The study was conducted in four of these districts including; Bahawalpur, Lodhran, Multan and Muzaffargarh. These four districts cover a sizeable portion of southern Punjab. The area is known for its distinct Siraiki language and culture. The distinct ethnic identity also provides the primordial basis for the longstanding movements for a separate province since dissolution of One Unit in 1955. South Punjab in the context of violent extremism is considered to be the main area which has been feeding militant recruitment for VEOs across the region – „the dread basket of Asia‟. It is noteworthy that majority of the sectarian (mostly Deobandi) militant outfits are concentrated in this area. It seems logical as the biggest concentration of Deobandi seminaries/madrassas is in this area. Dr. Tahir Kamran, in a study conducted on the basis of 1988 data, listed 595 out of total 972 seminaries in Punjab

9 A number of academics and experts have documented presence of the bases of militant outfits such as Jaish-e- Muhammad (JeM); Lashkar-e-Jhangvi (LeJ), Lashkar-e-Tayyba (LeT), Jamaat-ud-Dawaa (JuD). See, Mehboob. S.R. 2011. Governance and Militancy in Pakistan‟s South Punjab Region. CSIS.; Siddiqa. Ayesha, 2013. The New Frontiers: Militancy & Radicalism in Punjab. Centre for International and Strategic Analysis.; Leghari and Khalid. 2014. “Radicalization of Youth in Southern Punjab” in South Asian Studies. 29:2. pp. 537-551 10 Fair, C.C., Littman, R., Malhotra, N. and Shapiro, J.N., 2013. Relative Poverty, Perceived Violence, and Support for Militant Politics: Evidence from Pakistan Working paper; Zia-ur-Rehman. 2014. “Militant economy of Karachi”. in Conflict and Peace Studies, .

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Countering Violent Extremism Section-II

in this area. However, there has been a substantial increase in the number as a later study by Dr. Tariq Rahman states that the total number of Deobandi seminaries had increased from a mere 1,779 in 1988 to 7,000 in 2002.11 A more recent study by Muhammad Ramzan, titled “Sectarian landscape, Madrasas and Militancy in Punjab,” states that only in the three districts of South Punjab (Bahawalpur, Rahimyar Khan and Multan), the total number of Deobandi seminaries according to government data has increased to 2,158. Moreover, besides being the home base of numerous VEOs, most of the key militant leadership is residing in this particular area.12 The rise of violent extremism and militancy in this area has been attributed to various reasons, including poverty and underdevelopment; feudal-authoritarian sociopolitical milieu; geo-strategic variables; and power and patronage.

XII. In South Punjab, the study covered four districts, including Bahawalpur, Multan, Lodhran and Muzaffargarh. Bahawalpur with an area of 24,830 km2 has a population of 3.1 million (est.) with a population density of around 67.4. The unemployment rate in the district is 9.6 which is substantially higher than the provincial rate of 6.7.13 Within various age brackets, the age group 15-24 has the highest unemployment rate, highlighting the untapped potential in the youth population of the district. The mainstay of district economy is on agriculture which constitutes the main source for almost 78% of the rural population, directly or indirectly. In recent years, the district has witnessed increase in commercial activities whereas the industrial base has also expanded though at a slower frequency. Due to its strong agriculture base, most of the industry in the district is agro based with cotton ginning one of the most common manufacturing activity. According to Government of Punjab data, out of a total of 251 listed industrial units, 155 are of cotton ginning.

XIII. Private Sector in South Punjab: Nature, Organisation and Features: The overview of the target districts shows a diverse spread of the private sector, with retailers making up the major share. Bahawalpur and Multan have maximum numbers of industrial units, whereas the Lodhran and Muzaffargarh have a relatively smaller industrial base. This can be explained because of the proximity of major industrial zones in the adjoining districts. The commercial sector is dominated by the retailers and traders of raw material, with a substantial presence of stockists, and agriculture support services business entities. Multan district with an area of 3,721 km2 has a population of 43.32 million (est.2015). With an adult literacy rate of 43%, the unemployment rate in the

11 Please see, Tahir Kamran, Evolution and Impact of „Deobandi‟ Islam in the Punjab. available at http://www.gcu.edu.pk/FullTextJour/Hist/V3N205/P28-50.pdf; Tariq. Rahman. 2008. “Madrasas: Potential for violence in Pakistan” in Jamal Malik ed., Madrasas in South Asia: teaching terror? Routledge; Muhammad Ramzan. 2015. “Sectarian landscape, Madrasas and Militancy in Punjab” in Journal of Political Studies, 22: 2. pp421:436. 12 Masood Azhar of Jaish-e-Muhammad, Muhammad Ahmad Ludhyanvi of Ahle Sunnah Wal Jamaat (ASWJ), Hafiz Ahsan of Harkat- ul Jihad –e- Islami (HUJI) and Malik Ishaq of Lashkar-e-Jhangvi (LeJ)- Malik Ishaq with his comrades were recently killed in a shoot- out with Counter Terrorism Department/Punjab Police in Muzaffargarh eM‟s Masood Azhar, LeJ‟s Mohammad Ahmed Ludhyanvi and Malik Ishaq. 13 Bureau of Statistics, Government of Punjab. 2016. Multiple Indicator Cluster Survey 2014.

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district is 3.0, which is substantially lower than the provincial rate of 6.7.14 In recent years, the district has witnessed increase in commercial activities whereas the industrial base has also expanded though at a slower frequency. According to Government of Punjab data, out of a total of 588 listed industrial units, 127 are of cotton ginning followed by rice and flour mills. The district of Lodhran has an area of 1,790 km2 and population of 1.4 million (est.2015). It is an agriculture district. The main crops are cotton, wheat, rice and sugar. The adult literacy rate of the district is 40% with an unemployment rate of 6.0.15 Cotton ginning is also a major industry in Lodhran, and it has 67 units, followed by 14 flour mills. Lodhran is known for the hand-made embroidery and leather bags. Muzaffargarh with an area of 8,249 km2 has a population of 3.8 million (est.). With an adult literacy rate of 39%, the unemployment rate in the district is 2.5.16 Like rest of the districts, cotton ginning is the major industry with 81 units, followed by agriculture implements and rice mills. One of the most significant features of the local markets is the Traders Associations and local chambers of commerce and industry, which have a noteworthy presence in every district17.

XIV. District Traders Associations and Local Chambers of Commerce and Industry: The research suggests that market based association are playing significant roles in their respective areas. Especially the District Traders Associations, and Local Chambers of Commerce and Industry are noteworthy in this regard. Memberships of the associations is open to all the active traders, and are organized to work for the welfare of their respective communities. However these organisations were found to be active in community support services and activities such as arranging religious ceremonies, supporting local festivals, arranging relief services in disasters, supporting educational and health related activities, assisting local government in maintenance of peace etc. Similarly, specialized/commodity based organisations have strong presence in these areas. It was noted during the course of study that these associations and organizations can play an instrumental role in mobilizing the support of the local private sector and business community18. These organisations have very effective networks of traders across the districts and can provide an effective entry point to engage and motivate the local business communities to strengthen the CVE related activities. Majority of the representatives interviewed during the course of the study expressed strong inclination to be part of the efforts which can contribute to stability and business friendly environment in their respective areas.

14 Bureau of Statistics, Government of Punjab. 2016. Multiple Indicator Cluster Survey 2014. 15 Bureau of Statistics, Government of Punjab. 2016. Multiple Indicator Cluster Survey 2014. 16 Bureau of Statistics, Government of Punjab. 2016. Multiple Indicator Cluster Survey 2014. 17 Except for Lodhran and Muzaffargarh, the districts of Multan and Bahawalpur have vibrant chambers of commerce and industries. 18 For example these include but not limited to; Pakistan Cotton Ginners Association (PCGA), Sugarcane Growers Association, Progressive Mango Growers Group (PMG), All Pakistan Fruit & Vegetable Exporters, Importers & Merchants Association (PFVA), Cotton Growers Association etc.

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Table 1: Overview of the Private Sector in South Punjab

Districts Wise Number of Enterprises19 Major Private Sector Entities (Commercial Bahawalpur Lodhran Multan Muzaffargarh and Industrial) Retailers 6000 4500 6678 5100 Agriculture Support Services (Implements, 900 115 1512 1225 Instruments, Pesticides, Fertilizers) Telecom Service Provider franchise 60 11 54 18 Hotels 50 11 98 13 Stockist 800 150 218 170 Handicraft 70 - - - Importers & Exporters 60 30 45 10 Goldsmiths 1500 250 900 800 Banks/Leasing/Financial 650 NA 123 50 Industrial Units 750 94 589 162

The overview of the socio-economic features of South Punjab indicates that poverty and underdevelopment of the area are the contributing significantly towards nurturing of violent extremism and radical ideologies in the area. Poverty has been termed as the fundamental push factor for militancy. The situation is compounded by underdevelopment and chronic issues of non-performing government sector, especially the justice sector. The local private sector can play a key role in strengthening the activities, formation of networks and collaborations which can help strengthen the CVE narrative in the area.

B. KARACHI:

XV. Karachi‟s primacy as the nation‟s financial hub, its intricate ethnic mix, and religious and linguistic diversity, makes the city reflective of Pakistan‟s overall socio-political milieu. The city of over 21 million people, which has long been plagued by overlapping forms of criminal, sectarian and political violence, currently seems to be in a transitional state to regain its peace, order and economic vibrancy. During the course of protracted violence, the „battle for Karachi‟ nevertheless gave way to the volatile nexus and collusive arrangements between political entities, criminals and economic entrepreneurs, all motivated by the politics of patronage. An enduring instability has gripped the urban center, where economy was dependent on the mobility of huge swaths of its population. But violence often brought life to a standstill, with fear, insecurity and confusion as its obvious ramifications. Cashing in on the situation, criminal, political and extremist groups often targeted prominent businessmen and economic entrepreneurs in order to extort ransoms to finance

19 The numbers are based on following sources: a.) Bahawalpur and Multan Chambers of Commerce and Industry; b.) District Traders Association of each district; c.) Country Wide Statistics of Industries, National Skills Information System (NSIS), National Vocational & Technical Training Commission (NAVTTC), Government of Pakistan.

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themselves as well as their organizational operations, making it impossible for the business entities and their associations to remain non-aligned. The escalation of erratic violence in Karachi since 2005 for control over its economies and territories has now significantly waned, though under the recent controversial and at times partisan state interventions.

XVI. This unpredictable security situation, coupled with other flagrant forms of bad governance, including chronic energy shortages, protracted settlement of disputes faced by local and foreign investors, inconsistent taxation policies and poor intellectual property rights enforcement, led to a significant drop in investments. For instance the Overseas Investors Chamber of Commerce and Industry (OICCI) estimated that its member companies in Karachi suffered an estimated loss of PKR 25 Billion in 2014 because of business closures resulting from conflicts and terrorism related incidents in the city20. Similarly a sharp decline was observed in the commercial activities as well, as the total shopping on the Eid Festival was estimated at only PKR 50 billion, which is 30 percent less than the last year.21

XVII. What once used to be an open local and foreign investment regime, has gradually become a difficult environment for investors during the last decade. Confirming to this, the World Bank‟s “Doing Business in Pakistan 2010” report ranked Karachi on ninth number on the ease of doing business among 13 cities in Pakistan. For instance, explains the report, obtaining all clearances and permits to build a new warehouse and hook it up to utilities would take 4 months in Peshawar, which is faster than the OECD average of 157 days. It takes 3 months longer in Karachi to achieve the same. Where improved governance as well as law and order and their sustainability is indispensable for the city to regain its peace, order and economic vibrancy, it is also imperative to involve all sections of the society to address the burgeoning violent extremism.

XVIII. Karachi is rightly considered as the financial hub of the country, as it not only houses all the major business house, but is also the center for industrial and commercial activities. According to Sindh Industries and Technical and Vocational Authority only the Karachi city is house to 5,630 small, medium and large industries. The industry in the city is spread in Sind Industrial Trading Estate Area (SITE), Lyari-Lawrence Road, McLeod Road, Saddar, Preedy Street, Sher Shah Colony, Bunder Road and Liaquatabad-Nazimabad. Karachi‟s biggest single industries in terms of number of establishments are textiles and footwear. In terms of commercial activities, retail and wholesale comprise the major portion of city‟s economy. Additionally according Sind

20 Interview of Mr. Abdul Aleem, Secretary General of Overseas Investors Chamber of Commerce and Industry (OICCI) as reported in The News, Monday December 7, 2015. Available at http://e.thenews.com.pk/newsmag/mag/detail_article.asp?magId=10&id=8233 21 Interview Mr. Atiq Mir, President, All Karachi Tajir Ittehad (AKTI)

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governments‟ estimated food and beverage constitutes 9.5% of the city‟s economy followed paper and printing( 9.8 per cent) and transport with a share of 8.2 per cent.

Besides major business, industrial, and commercial enterprises, the business and traders community associations are an essential and key feature of Karachi. According to the focal organisation of traders there are more than 500 traders associations across the city. All Karachi Tajir Ittehad –All Karachi Traders‟ Alliance (AKTI) is the umbrella association of vast majority of these organisations. AKTI besides working for the traders rights, closely work with the governments to ensure a peaceful and business friendly environment in the city. Similarly, Karachi Electronics Dealers Association (KEDA) is umbrella organization of Electronic dealers and has strong networks in all the districts of Karachi. KEDA is appreciative of the challenge of increasing violent extremism and the threat being posed by VEOs in Karachi. During the course of interview KEDA‟s President expressed his resolve to contribute towards and support activities which can help mitigate the issue22. The key members of these associations have also been working in collaboration with law enforcement agencies to eliminate crimes and create a business-friendly environment in the economic hub of Pakistan. As discussed in the foregoing section, associations like AKTI and KEDA can facilitate programs which can contribute significantly in establishing a strong CVE narrative in the urban center23.

22 Interview with Mr. Mohammad Rizwan Irfan, President KEDA 23 Interview with Mr. Atiq Mir. Chairman All Karachi Tajer Ittehad (AKTI)

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SECTION - III

VIOLENT EXTREMISM: NATURE AND IMPACT ON THE PRIVATE SECTOR AND LOCAL BUSINESS

Countering Violent Extremism Section-III

Section-III

VIOLENT EXTREMISM: NATURE AND IMPACT ON PRIVATE SECTOR AND LOCAL BUSINESS

XIX. Escalation in violent extremism in recent years has not only left a devastating mark on the social milieu of the Pakistani society, but has serious ramifications for the private sector and the local businesses. The private sector has the principal share in Pakistan‟s economy. It is estimated that it controls approximately 77% of the commercial banking sector, 100% of the textile and telecommunication sectors and has substantial shares in the cement, sugar, automobile, fertilizer and mining sectors. Additionally, almost all of the whole-sale and retail sectors are also being managed by the private sector.

XX. Besides the irremediable loss of precious lives, local business and economy are the worst afflicted from the violent extremism and resultant violent crimes and terrorist acts over the years. The impact of violent extremism, violence, conflicts and terrorism is pervasive on the economy in general and private sector in particular. The sharp increase in the terrorist activities negatively influenced the economic growth which declined sharply from 6.2 in 2006 to lowest ever 1.6 in 2010. According to the government of Pakistan‟s estimates, the direct and indirect cost incurred by country‟s economy from 2001 to 2015 is estimated to be around USD 107 billion.24 The cost is reflective of the losses suffered by the local economy in terms of physical infrastructure, declining foreign investments, lowering industrial output, uncertainty costs etc. Similarly, this also signifies the serious repercussions for the business and economy in Pakistan, including exodus of capital, decline in foreign direct investments (FDI), reduced exports, diminishing manufacturing and service sectors, low public revenues etc.

XXI. Likewise, violent extremism and the resultant actions have serious consequences for the small and medium businesses, local traders, retailers etc. These include decline in profits, loss of customer base, security costs, uncertainty, decrease in investments, supply chain interruptions, non-availability or loss of workforce etc. The private sector and the local businesses in the sample districts have been affected by the violent extremism and the resultant militancy. This section maps the nature of the prevalent violent extremism and its major impacts on the private sector and local businesses in the area under study.

24 Ministry of Finance, Pakistan Economic Survey 2014-2015 (Islamabad: Government of Pakistan, 2015), http://www.finance.gov.pk/survey/chapters_15/Annex_IV_War_on_Terror.pdfPakistan Economic Survey 2014- 2015.

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NATURE OF VIOLENT EXTREMISM

XXII. The respondents during the course of interviews and focus group discussions identified a number of key conflicts; Political Ethnic/Linguistic however, the Religious Social/Gender-based prevalence of these varies from area to 12% area. Around 78% of 24% the respondents affirmed the prevalence of violent 18% extremism and 46% conflicts of varying degrees in their

respective districts. Figure 2: Nature of Violent Extremism Religious and sectarian extremism and ensuing conflicts were found to be the most prevalent, identified by 46% of the respondents, followed by political (24%) and ethnic (18%). The most striking finding was from Karachi where 88% of the respondents in the interviews opted not to mention any specific conflict. When probed in the following questions, most of them avoided identifying the conflicts in their districts, but few of them identified the actors in the conflict. Majority of them maintained that political parties are the main actors in the conflict. It can be inferred that people of Karachi believe that most of their conflicts are of political nature. Considering the security situation in Karachi, it is probable that the respondents out of safety concerns avoided answering such questions in recorded interviews. However, during the course of FGDs in Karachi, participants identified sectarian and political conflicts as the major ones.

XXIII. Whereas in South Punjab districts, a vast majority considers religious and sectarian Box 2: Incidence of Religious and Sectarian Conflict in Muzaffargarh

District Muzaffargarh has the highest percentage of respondents citing religious (47.1%) and sectarian (58.8%) conflict as the most common conflict in the district extremism a major risk which threatens the communities as well as their business establishments. Political and ethnic extremist trends were also identified as major types of extremism. The radicalization of the social milieu is evident from the fact that a vast number of respondents consider social and gender based extremist behavior as a major cause of concern.

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Political Ethnic/Linguistic Religious Social/Gender-based

82 83 65 58 41 41 41 42 29 29 24 24 18 18 12 6 6 0 0 0

Muzaffargarh Bahawalpur Lodhran Multan Karachi

Figure 3: Types of Violent Extremism XXIV. Findings from the field suggest that most of the respondents (49%) consider religious leaders as the key actors in facilitation and furthering of extremism in the target districts. Political parties and their local leaders were identified by 34% of the respondents as the driving force of the local violent extremism. 19% of the respondents were of the view that ethnic groups were the enablers, whereas 18% of the respondents consider the government and its institutions responsible for spurring the extremist propensities in their respective areas.

60 49 50 40 34 30 19 18 20 10 5 0 Religious leaders Political parties/ Ethnic groups Government/ Militant and Politicians Govt. Institutions extremist groups

Figure 4: Actors Facilitating Violent Extremism

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VIOLENT EXTREMISM AND ITS IMPACT ON LOCAL BUSINESS AND PRIVATE SECTOR

XXV. Private sector, especially the entrepreneurs and business community has substantial stakes in a peaceful and violence free environment. A significant majority (78.8%) agreed that incidence of Yes conflict has serious 78.8% implications for their business, as it has severe effects on the No supply as well as demand sides 21.2% of the business. The respondents expressed their views that from availability of

labor and raw material to Figure 5: Does Violent Extremism Effects Business logistic challenges, the effects Activities on business are profound. Additionally, they informed that incidents of conflicts also have adverse effects on the demand side of their products as it leads to restricted movement and fear of going into the markets. In the view of respondents and discussants, protests and processions have the most negative impact on their business as they have to unexpectedly shut down for indefinite time period.

XXVI. The key challenge faced by the local business and private sector has been reported to be the atmosphere of uncertainty, which results in prolonged declines in the economic activity. Besides, there are multiple challenges for the private sector and the local

70 59 60 46 50 40 29 25 30 24 19 20 12 10 0 Economic Reduced Decreasing Missed Workers Supply-chain Decline in Uncertainty Business Profits Production stay at home Interruption Investment Hours Targets

Figure 6: Effect of VE on Local Business and Private Sector business communities in the context of violent extremism. A sizeable number of respondents (46%) referred to reduction in business hours and the adverse impact on the profits (29%). For the latter cohort, the decline in profit ranged from 15 to 40 percent and averaged at 28 percent with some variation across both geographical regions, i.e., 34 percent in Karachi and 22 percent in South Punjab districts. Similarly,

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the respondents also highlighted supply chain interruption and non-availability of workforce as key issues. The respondents also underscored the challenge of declining investment in the local markets leading to restrained growth.

XXVII. Review of the responses from different districts is insightful as these are reflective of the particular realities of their respective districts. For example, in case of Karachi, one of the major consequences of the extremism and violence as highlighted by the respondents was the non-availability of workers as they prefer to stay at home. Whereas the major concern for the local businesses and private sector in the four districts of Punjab is the reduction in the business hours. The decline in business hours has serious implications in terms of business and trading activity. The respondents highlighted during the course of discussions that religious processions and rioting make them vulnerable to multiple hazards including closure of the markets, damage to the property, looting of goods and suspension of business activities for unforeseen periods.

Decline in Profit Economic Uncertainty Decline in Investment Reduced Business Hours Missed Production Targets Workers stay at home Supply-chain Interruption 75 65 59 59 53 53 47 44 41 38 33 33 33 33 33 33 29 29 29 29 27 25 24 18 13 12 12 7 6 6

Muzaffargarh Bahawalpur Lodhran Multan Karachi

Figure 7: Consequences of VE - District Wise XXVIII. During the course of discussion, the respondents also highlighted that violent extremism, militancy and conflicts have resulted in a substantial increase of operating costs. The participants of discussions particularly highlighted that increase in violent extremism and radicalization has serious implications for doing business. The routine religious rituals of yesterdays have now become an issue of grave concern. The political and religious rallies and the processions of Muharram and Rabi-ul-Awal pose a serious threat to most of the local businesses, especially oil and gas and the retailers. These hazards have contributed in increasing the cost of doing business substantially. The private sector and the local business have to spare considerable resources for insurance costs, engaging or installing security mechanisms for protecting business facilities and value chains. Moreover, such disruptions increase the liabilities for the private sector in terms of paying the salaries without any productive activities.

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SECTION - IV

VIOLENT EXTREMISM: PERCEPTION, POTENTIAL AND PRACTICES OF LOCAL PRIVATE SECTOR TO RESPOND

Countering Violent Extremism Section-IV

Section-IV

VIOLENT EXTREMISM: PERCEPTION, POTENTIAL AND PRACTICES OF LOCAL PRIVATE SECTOR TO RESPOND

This section presents the major findings from the field on perceptions of the local private sector towards violent extremism. It also examines the existing practices of private sector through which they contribute towards their respective communities and what possible role they can have in responding to the existing challenge of violent extremism.

VIOLENT EXTREMISM: THE PUSH FACTORS

XXIX. Illiteracy and Poverty: Majority of the private sector and business representatives identified illiteracy, poverty and unemployment as the major push factors which fuel the violent extremism. Additionally, the lack of public services, social inequities and lack of access to justice were also identified as the major reasons contributing towards violent extremism. Participants of the FGDs in Bahawalpur district drew attention towards an alarming trend observed in the district that the number of children going to madrassahs/seminaries has increased in past few years. They correlated this trend with increasing level of poverty and lack of employment opportunities, which force the marginalized to send their children to madrassahs/seminaries.

Illiteracy 61 Poverty 56 Unemployment 53 Lack of Public Services- roads, water supply,… 52 Social Inequities 22 Lack of access to Justice 20 Sectarianism 15 Poor Understanding of Religion 11 Intolerance 8

Figure 8: Violent Extremism- Contributing Factors XXX. Lack of Public Services and Violent Extremism: Majority of the respondents in the interviews and discussants thought poor quality of basic services is also a major contributing factor in rise of extremism and violence in their area. The poor social indicators and development of their district were major concerns of people. It is substantiated from the fact that 44% of the respondents donated money for development of civic facilities such as safe water, sewage treatment, street lights etc. in their respective districts. It is noteworthy that the respondents reported to contribute in the development of their respective areas on self-help basis. The key challenges

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highlighted by the participants included, unemployment, lack of economic opportunities, safe drinking water, low standard of public sector education, sewage and garbage disposal. A vast majority of the respondents (60%) were of the view that lack of economic opportunities and educational facilities makes their communities susceptible to violent extremism and radicalization. Absence of productive activities, such as educational facilities, sports, jobs, push the young towards choices which are detrimental at individual as well as collective levels.

Public Transport 6 Hospital 9 Play Grounds 14 Clean Drining Water 15 Infrastructure 16 Food 17 Shelter / Housing 22 Schools 33 Economic opportunities 60

Figure 9: Lack of Social Facilities and Violent Extremism XXXI. Susceptibility to Violent Extremism: The respondents were also asked about which segment of society in their opinion was most susceptible to the violent extremist narrative. A vast majority (75%) of the respondents agreed that the youth is most susceptible to the threat of violent extremism. Besides the youth, 30% of the respondents identified women as most susceptible, followed by 15% of the respondents who thought children were most vulnerable to violent extremism and the resulting militancy. This signifies that private sector has the understanding on the potential victims of the VEOs and their extremist narrative.

Poor 1

All Segments of Society 4

Children 15

Women 30

Youth 75

Youth Women Children All Segments of Society Poor

Figure 10: Section of Society Most Susceptible to Violent Extremism

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PRIVATE SECTOR SPENDING: TRENDS AND PRACTICE

XXXII. Substantial majority of the respondents in the interviews as well as FGDs affirmed providing financial and in-kind support in their respective areas. Fundamental approach remains assistance and charity to individuals. Charity as a social practice is deeply embedded in the culture of Pakistan. A substantial majority (94%) of the private sector respondents informed that they dedicate a specific amount for contributing towards the welfare of the local community. A significant number of the respondents (40%) are providing support to different types of education-related activities, which include education scholarships, providing books and stationery in the public schools and giving annual contributions to schools being run by welfare organizations. XXXIII. Most of the respondents interviewed did not have any organizational policy of allocating a standard portion of profits for social welfare and they provide direct cash or in-kind support to individuals than to charities. It is noteworthy that the respondents were more responsive to individual charitable pleas than to the pleas by charitable/welfare organizations. As most of them were not sure about the transparent use of the financial support being given to the charitable/welfare organizations.

XXXIV. The trends of offering cash support vary from district to district, and there are some noteworthy findings. In district Box 3: Support for Seminaries and Religious Muzaffargarh, 53% of the Education respondents donated money to support education, a majority of Contributions and financial support for religious education and seminaries which was meant for religious (Madrassahs) is most prevalent in District education offered by the seminaries. Muzaffargarh. Where 24% of the respondents While 35% had charitable giving informed that they provide financial support to dedicated to the monthly stipend for seminaries and 12% for religious education. widows, contributing towards the marriage of orphan boys and girls, and contributing towards their local mosques. Of the respondents who donated towards education, only two were found to be addressing the problem more strategically through their donations.25 Others essentially helped madrassahs/seminaries in cash or in kind with the aim to support an institution that fulfills basic necessities of underprivileged children. Almost all of the respondents donating to seminaries were doing it voluntarily considering it a religious obligation.

25 One of them is running a primary school where disadvantaged children receive free education and he plans to upgrade it to middle school. The other businessman supports organisation of seminars in Muzaffargarh city to raise awareness about the significance of education. He plans to spread this awareness campaign to the tehsils and towns of the district.

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XXXV. Whereas in Bahawalpur, 71% of the respondents helped people of the community in different ways through charitable giving, including bearing the expenses of education, provision of food items to the destitute on monthly basis, provision of medicine to poor patients in hospitals, monthly stipend for poor widows etc.

6 Religious Education 6 6 12 18 Sports 12

12 Recreational Activities 12 6 6 Contribution to Seminaries 6 24 24 12 Health Facilities 6 6 41 6 Welfare Work 29 6 6 35 Civic Work 35 12 12 53 41 Education 24 18 29 59 82 Charity 88 71 47 Karachi Multan Lodhran Bahawalpur Mgarh

Figure 11: Local Private Sector Spending Patterns XXXVI. Vast majority of the respondents (88%) from Lodhran, are spending on charity, which includes, providing for the education expenditure of poor children, provision of food and subsistence allowance for the poor families, and donation to improve infrastructure of mosques and seminaries. Around 41% of the respondents are spending on local civic works, including up gradation of sewage system, installation of street lights etc. The percentage of charitable giving in district Multan (88%) is similar to that of district Lodhran, but more respondents (41%) donated towards educational causes. In Karachi, 59% of the respondents had charitable giving, while 53% donated towards education. There are various distinct patterns in case of Karachi; first, substantial majority of the respondents (94%) from business community supports youth. The activities primarily supported include education, sports, and health. Secondly, most of the respondents invest on provision of education and health facilities for young children of their factory workers. Thirdly, unlike the districts in South Punjab, respondents also claim to financially support youth programs and sports teams. Significantly, no respondent donates or have inclination to donate for the purpose of religious education, to madrassahs/seminaries and mosques.

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Most of the spending on religious education, seminaries, etc. is in the four Southern Districts of Punjab.

XXXVII. Local Private Sector Investing in Sports, Cultural Activities, Music, and Civil Works: The field research also identified key private enterprises which are investing in local cultural activities, festivals, and sports. A district wise details of the major contributors is given below. A significant number of private enterprises were identified during the course of the research who not only support and invest on sports, cultural activities, music and festivals but are willing to collaborate at local level to strengthen these activities. Of this majority, 54%, invest on sports tournaments and activities, followed by 35% who provide financial support to cultural activities and local festivals. 9% of the private sector entities were found who regularly support music activities in their district.

Table 2:: Private Sector Supporting Cultural, Music, Sports and Civic Activities in South Punjab26

Name of Industry/Commercial Sports Cultural Local Civic District Name business/ Festival Music Work Mobilink Franchise District Muzaffargarh Muzaffargarh  Colgate Pakistan Ltd.  Muzaffargarh Leaver Brothers  Muzaffargarh Choudhary Cement Pipe Muzaffargarh Factory  Hashir Textile  Muzaffargarh Khan Shoes Factory  Muzaffargarh Silver Boss Factory  Muzaffargarh Khan Iron Works  Muzaffargarh Al Habib Departmental  Muzaffargarh Plastic Factory  Muzaffargarh GM petroleum  BWP Syed Brothers  BWP Asif Goldsmith  BWP Utilities Store BWP  BWP Rafee Cotton Factory, Oil BWP Mills, Ice factories   Asia Ghee Mills  BWP Osama Zaree Services  BWP Fazal Bio Gas Booster   BWP

26 The details of focal persons, contact details, and address are provided in the Annex V

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(Production of Natural fertilizers) Nowal Bio- Sciences  BWP Hushiyarpur Zaree Services  BWP Qureshi Cloth merchant   BWP Lucky Honda Sales and BWP Service Ahmed Pur East  Syed Computer Accessories  BWP Mashah Allah Traders  Multan Sheikh Traders, Grain Market  Multan Muhammad Hussain & Sons Multan Textile   Nasir & Nasir Exporters   Multan Abdul Sattar & Sons Multan Agriculture   Qadir & Sons Stockists   Multan Mehmood Group of Industries   Multan Shaikh Meboob & Company   Multan Mehmood Textile mills Multan Limited   Usman Hosiery & Garments   Multan Shamim Group of Industries Lodhran Mirza Gas Center  Lodhran Malik Dealers; Agriculture Pesticide, Fertilizers Agency   Lodhran (Dealer Naya Sawera) Ashraf School System   Lodhran AI Poultry Control Sheds  Lodhran Abbasia Public School  Lodhran Tareen Farms  Lodhran Mughal Zarai Farm  Lodhran Smart Collection & Boutique  Lodhran

PRIVATE SECTOR: POTENTIAL ROLE IN COUNTERING VIOLENT EXTREMISM

XXXVIII. A substantial majority (70%) of the respondents agreed that the private sector and local businesses have an instrumental role in responding to the challenge of intolerance, rising violent extremism, and ensuing militancy. A small percentage (10%) of the respondents were against any role of private sector and local business in countering violent extremism. They were of the opinion that it is responsibility of the

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government and beyond the mandate of the private entrepreneurs and businessmen. This, however, highlights the importance of government led/supported efforts, which can ensure effective and efficient participation of the private sector in CVE efforts.

10%

Agree 20% Somewhat Agree

70% Don’t Agree

Figure 12: Do Private Sector and Local Business have Role in Countering Violent Extremism?

XXXIX. The respondents of KIIs and participants of FGDs were asked to identify the key areas where private sector can contribute for countering violent extremism. Majority of them were of the view that private sector and local businesses should work to create economic opportunities whereby the youth can be engaged. A substantial number of the respondents were of the opinion that private sector should invest in the education sector at two levels, first provision of quality educational services for the out-of- school children, and secondly, to arrange for skill-based trainings of the youth.

Create employment opportunities 79

Invest in local education sector 35

Organize festivals/cultural and literary events 27

Direct donations to certified charity and poor 21

Organize lectures to promote religious harmony 20

Invest in sports activities for youth 16

Figure 13: What Possible Actions Private Sector/Local Business Should Take for CVE

XL. Despite the fact that Karachi is the financial and commercial capital of the country, around 94% of the respondents consider employment as a major challenge being faced by the youth. It is encouraging to note that they are willing to contribute and partner towards efforts that can augment provision of economic opportunities by the private sector will serve as a means to mitigate conflicts in Karachi, which are mostly of political, ethnic, and religious nature. Around 53% of the respondents were of the

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view that spending in education will mitigate conflict in the long During the course of discussions and interviews, term. FGD respondents from the local private sector representatives, highlighted Karachi were of the view that the voluntary role being performed by the business and trader community in every city. They availability of different education specifically cited the role played by their systems for different class of respective associations in bolstering the relief and people is, in fact, causing more rehabilitation efforts during the times of recent disparity among the people. With natural disasters. They also informed about the better job opportunities available voluntary role being played by these associations, to better educated, and widening local chambers and smaller trader associations in gap between rich and poor, the formulation of peace committees in aide of district underprivileged youth is governments during the Muharram and Eid –e- becoming more prejudiced Milad Processions. Other examples quoted by the towards the system, and therefore discussants included the Blood donation drives in more inclined to get involved in collaboration with Hilal-e-Ahmer, Ramzan Bazaars, etc. Nevertheless, they were of the view conflicts. that either the government or some formal channel

is required to mobilize their support. XLI. A significant percentage of the respondents (27%) recommended that the private sector should support and organize festivals, cultural and literary events. They were confident that such events, besides providing an opportunity of a positive activity for the youth, also help nurture their affiliation with their local norms and value systems. Additionally, a number of respondents also proposed that private sector also needs to organize sports festivals at regular intervals.

XLII. Another important action supported by the respondents was the regulation of charity and donation by the private sector. Around 21% of the respondents said that annual donations and charity should only be given to certified charities. The opinion is reflective of the understanding of the respondents about the misuse of the resources given as charity to religious organizations which might be used in facilitating extremists and militant activities.

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94 100 88 76 80 71 71 65 60 53 53 53 41 41 35 40 29 24 24 24 24 18 18 18 18 20 12 12 12 6 6 6 6 0 Muzaffargarh Bahawalpur Lodhran Multan Karachi

Invest in local education sector Organize festivals/cultural and literary events Invest in sports activities for youth Create employment opportunities Direct donations to certified charity and poor Organize lectures to promote religious harmony

Figure 14: Private Sector/Local Business Actions for CVE -District Wise

XLIII. Promotion of local craft and heritage: Local crafts and heritage are a key medium not only to enhance economic opportunities but can also be a channel to disrupt the avenues leading to extremism and militancy. Bahawalpur, Multan, and Lodhran are famous for handmade embroidery and have the potential to engage a number of women and youth through employment, and thus acting as a bulwark against VEOs recruitment drives. The areas are also known for other handicrafts which are marketed across Pakistan and abroad, including; blue pottery and bangles of Multan, khussa (a traditional footwear) from Lodhran, baskets and floor mats made of date-palm leaves of Muzaffargarh etc. The respondents and discussants during the course of interviews and focus group discussions identified multiple local crafts, which, with the support of government and private sector, would enhance economic opportunities for women and youth both. Majority of the respondents and discussants at the FGDs, which also included members of business community, showed inclination to promote the local industry and help women and youth to gain access to other markets with their products. They acknowledged the need to arrange area specific skill-training workshops and help the new entrants to find work according to their skills.

XLIV. Promotion of Local Festivals: South Punjab has a rich cultural tradition and was known for its traditional, seasonal and spiritual local festivals (Channan Pir Mela, Rangela Shah Festival, Besakhi Celebrations, Mela Peer Jevan, Mela Noori etc.27) Similarly, Annual Horse and Cattle Shows were also organized under the auspices of the government. However, due to the extremist threat, lack of support by the relevant government authorities as well as local philanthropists and businessmen, these significant events have either been abandoned or have lost their attraction and

27 “Mela” is a word commonly used in Urdu and Punjabi for festivals. These are local festivals mostly linked to some sufi saint or harvest season.

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popularity. These festivals besides celebrating local culture, arts, crafts and diversity provided an extraordinary opportunity for the youth entertainment. The survey respondents asserted that reclaiming the lost cultural space could be one of the key measures to counter the violent extremist narratives. They were of the view that promotion of local culture and art is one of the key avenues to address the increasing intolerance and extremism. During the discussions, a number of traditional local festivals were mentioned, which, if planned and supported by local private sector and businesses, can help contribute substantially towards turning the tide of violence. From the standpoint of local businesses, these events provide an extraordinary opportunity for the private sector and local businesses for promotion and sale of their products and services. When inquired about their interest, a substantial majority of the respondents from private sector and local businesses agreed to support and promote such festivals. XLV. Local business communities, traders‟ association, NGOs, and sports clubs are involved in arranging sports activities and seasonal festivals for their respective communities. When queried about what future support they can offer to restrain the growing trend of violent extremism, a majority of the local private sector representatives (27%) opted for organizing local festivals, while 16% of the respondents showed inclination to promote sports by regularly organizing competitions at the district level. Another 15% favored to organize religious events, like Mehfil-e-Naat and talks by scholars to promote religious harmony and tolerance, while charity galas and literary events were favored by 11% and 8% of the respondents respectively. The emphasis, however, was on the need to conduct more of such activities across the district and not just restrict to main cities.

Box 5: Promotion of Sports and Local Culture: Efforts by District Government Bahawalpur

The district government of Bahawalpur has initiated a major campaign to invest in promotion of sports in local schools, and celebrating local culture and local heroes. The district government has allocated special funds from the district government resource pool to renovate and restore play grounds across the district especially in the public schools. Similarly, a new festival is being planned to be held in September titled Shaan-e- Bahawalpur (Pride of Bahawalpur). The festival aims to celebrate the local culture and honour the local heroes. Such actions by public sector can set the trend for programs and activities which can help mitigate the violent extremist discourse. The District Coordination Officer (DCO), who is leading this effort, expressed his keenness to support the organizations and initiatives which can promote local culture, arts and crafts. He also expressed willingness to support efforts for mobilizing private sector support for initiatives aimed at CVE.

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SECTION - V

CORPORATE SECTOR: IDENTIFYING THE ROLE AND FUTURE DIRECTIONS

Countering Violent Extremism Section-V

Section-V

CORPORATE SECTOR: IDENTIFYING THE ROLE AND FUTURE DIRECTIONS

XLVI. The corporate sector in Pakistan regularly devotes a significant amount of money on social development of local communities through investing in various sectors such as education, health, drinking water, environment, disaster relief etc.28 According to Pakistan Center for Philanthropy‟s recent report which provides a synthesis of private/business sector philanthropy in Pakistan from 2000 to 2014, the registered Public Listed Companies (PLCs) alone had philanthropic donations of Rs.5.9 billion in the year 2014, while the aggregate giving of fourteen years (2000-2014) stands at Rs.34.5 billion.29 The actual volume of philanthropic contribution is much higher if all the businesses reported their spending.

XLVII. The financial services providers, telecom companies, consumer goods, food items, etc. have huge presence in the field at local levels and they have been consistently contributing towards the social sector. The violent extremism and ensuing conflicts have serious implications for their field formations and sales. For instance, the Institute of Human Rights and Business in its report on “Security and Access” details the impact of service shutdowns on Telenor Pakistan. The telecom services were shut- down due to terrorist threats to Muharram processions in 2012 for few hours causing a net loss of US$49.02 million. Similarly, telecom companies lost PKR2.6 billion on Eid Day on August 23, 2012 due to cellular shutdown by the Government of Pakistan.30 There is abundant evidence where the corporates have supported

28 Interview with Mr. Muhammad Mansoor Sarwar, Senior Program Officer, Pakistan Centre for Philanthropy (PCP). Pakistan Center for Philanthropy (PCP) has been working with development, public and private sector to help build effective partnerships for social development in Pakistan. PCP has been tracking the nature and quantum of social sector investments by national and international corporate philanthropy in Pakistan since 2000. Pakistan Centre for Philanthropy (PCP). 2015. Corporate Philanthropy in Pakistan: A Synthesis Report on Corporate Giving by Public Listed Companies. Islamabad. The report covers only those PLCs that are registered with Securities & Exchange Commission of Pakistan and their financial reports are public reflecting donations in monetized form. While any other donation not recorded in financial reports is not covered by PCP report. The private sector of Pakistan is “estimated to control 77.0% of the commercial banking sector, 100.0% of the textile and telecommunications sectors, and significant stakes in the cement, sugar, automobile, fertilizer and mining sectors. The role of business in power generation and distribution has also grown in recent years, and business has contributed to the growth in the domestic capital market. ” 29 The estimation is restricted to only those public companies that are registered with Security Exchange Commission of Pakistan (SECP) and whose annual financial records are public. The PLCs constitute around 1% of the entire corporate sector of Pakistan, while 3.6% are Public Unlisted Companies (PUC), 91.2% are private companies, and 4.3% include “single member companies, companies limited by shares, foreign companies, etc.” The philanthropic donations of over 99% of corporate sector are not known. Even out of 1% of PLCs, only 54% made their financial records public, while 46% did not during the years 2000-2014.” 30 Security v Access: The Impact of Mobile Network Shutdowns-Case Study: Telenor Pakistan; Case Study Number 3, SEPTEMBER 2015 Institute for Human Rights and Business (IHRB)

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initiatives contributing towards ensuring peaceful economies.31 In the context of CVE and potential role of private sector at local levels, this remains a huge resource which has not been tapped as of now.

XLVIII. In order to have an understanding of the perceptions and potential role the corporates can play, interviews were conducted during the course of study and the portfolio of CSR initiatives of ten (10) major companies was reviewed. These included, Engro Corporation, Hinopak Motors Limited, Indus Pharma, Karachi Electric (KE), Mobilink, Mari Petroleum Company Limited (MPCL), Philip Morris (Pakistan) Limited, Pakistan Telecommunication Limited (PTCL), Shell Pakistan Limited (SPL) and Limited. Substantial majority of the respondents were aware of the disastrous effects of the increasing violent extremism, and agreed that the CSR activities by their respective organizations can contribute towards strengthening initiatives which can help counter the violent extremism and activities of VEOs.

XLIX. As CSR activities of most of the corporate entities are intrinsically linked to their specific brands and engaging potential consumers, thus the scope of their activities is quite restricted. At times in terms of thematic focus and is some cases geographical limitations. This is particularly important in case of public owned entities and some of the corporate organizations. During the course of interview representatives of three companies, two public owned and one oil company expressed limitations in this regard. These companies included; MPCL, PTCL and Shell Pakistan32. These companies have comprehensive CSR programs having focus on diverse activities including health, education, community welfare etc. However these companies were found reluctant to engage with any other partner to further even their own stated Social Investment or CSR programs. Similarly, PMI, a leading tobacco company also expressed reluctance on the pretext that CVE does not fall in the domain of their company‟s CSR mandate33. Additionally some of the respondents were of the view that as CSR by virtue of its concept is the responsibility of respective organization, thus collaborations or working together is difficult to consider. Nonetheless majority of the corporate entities contact from Automobile, Pharmaceuticals, Consumer Goods, and Fertilizer sectors showed eagerness to explore possibilities of working together.

L. In the telecom sector, Mobilink boasts the largest consumer base in Pakistan. The on- going events of conflict and terrorism affect the telecom industry in a diverse manner.

31 “In South Africa, businesses helped the country transition from the apartheid days to a multiracial state. For example, Consolidated Goldfields organized and financed meetings between the African National Congress and the Afrikaners leadership during the final years of the apartheid regime. This dialogue was widely credited with laying the groundwork for the eventual negotiations that brought end to apartheid”. as cited in Peschka, Mary Porter. Emery, James J. & Martin, Keith. 2010. The Role of the Private Sector in Fragile and Conflict-Affected States. Background Paper, World Development Report 2011. 32 Interview with Mr. Fraz Aslam Rana, Executive Vice President, Human Resource PTCL – Etisalat; Interview with Mr. Behzad Khan – Social Investment Lead, Shell Pakistan; 33 Interview with Ms. Ruby Gul Afridi, Manager Corporate Communications & Media Relations, PMI, Pakistan

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Besides closing their business outlets and franchises, the closure of mobile networks by the government costs estimated PKR1 billion every day. The teleco was cognizant of the fact that the local business communities can contribute substantially in terms of services, financial support and engaging with local stakeholders for addressing the menace of violent extremism, intolerance and militancy by creating economic opportunities for youth to help mitigate conflict and promote peace. Mobilink team was positively inclined to be part of initiative which can contribute towards CVE through skill development and enhancing employability through the use of technology.34

LI. Unilever Pakistan is the largest fast-moving consumer goods (FMCG) company in Pakistan, and based upon its market presence can be considered as one of the largest multinationals operative in the country. Unilever‟s CSR activities, like most of the corporate entities are linked to their various brands in order to build a sustainability message towards those brands. Resultantly, both the brands and their direct or potential consumers are the beneficiaries of the CSR activities. For instance, the CSR activities connected to the brand “Lifebuoy” are focused at raising awareness in consumers about health and hygiene. Unilever‟s CSR activities does engage youth in a number of activities in the education, health, environment and sports sectors. Unilever CSR team was found positive for entering into partnerships for activities like sports and local festivals which can sequentially be linked with their brand communications35. With a longstanding presence in South Punjab and having a dedicated office in Multan Unilever could become key actor in promotion of CVE activities.

LII. Engro Corporation is a leading private sector enterprise with its portfolio extending to fertilizers, foods, chemical storage & handling, trading, energy and petrochemicals. Engro also has the credit of establishing a dedicated foundation for steering CSR initiatives of all the Engro affiliates. Engro Foundation aims to create a sustainable impact in the communities with which they work. They have been investing and supporting multiple initiatives in the livelihood and skills development, education, health, small infrastructure sectors. The most notable have been their initiatives focusing on promotion of diversity and inclusiveness. Additionally, the foundation has been establishing partnerships in the areas where they work for leveraging the resources and creating alliances for achieving maximum impact of their social investments. Some of their major financial and implementation partners include; United States Agency for International Development; PPAF – Pakistan Poverty Alleviation Fund; SANA – Sindhi Association of North America; IRC – Indus

34 Interview with Mr. Sohaib Arshad, Manager, Communication and Corporate Social Responsibility, Mobilink. The company has an elaborate corporate social responsibility policy and under it substantial investments have been made in recent years. They understand that women, children and youth are the worst affected segments of the society in times of conflict. Being mindful of this Mobilink has been investing in Environment, Education, Health and Disaster Relief activities through Mobilink Foundation. 35 Interview with Mr. Hussain Ali Talib, Senior Manager Corporate Affairs, Unilever

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Resource Centre, CARE Foundation etc. The organisation has shown keen interest in exploring possibilities of partnership and working together for the promotion of CVE initiatives, activities to promote plural values and advancement of peaceful societies36.

LIII. Hinopak Motors Limited is the leading automobile company which assembles, manufactures and markets medium and heavy duty vehicles in Pakistan. The company has a diverse and forward looking CSR component which regularly invests in various Technical/Vocational Education, environment, youth support, road safety and sports initiatives. Learning Ka Wheel (Wheel of Learning), Vocational Education Centre at SITE, Karachi, Sponsoring National Blinds Cricket Tournament 2016, and Support for Karachi Cricket Club Association (KCCA) to organize inter-firm cricket tournament are some of Hinopak‟s recent initiatives. A number of community support activities by Hinopak have been aimed at contributing towards engaging youth and contribution towards peace. The company plans to contribute towards sports, education and healthcare in the next financial year. The CSR program of the company has the realization of adverse effects of increasing levels of extremism and how the ensuing conflicts can negatively influence the business activities. The CSR program showed keen interest in collaboration and jointly undertaking activities which can help contribute in strengthening CVE and promotion of plural values and tolerance in Pakistan37.

LIV. Indus Pharma has been recognized as one of the most reputed pharmaceutical manufacturer of Pakistan. Indus Pharma under its CSR policy has been investing in various initiatives since early 1990s. The key initiatives by Indus Pharma are in the sectors of Education, Healthcare, Medical Education, and Sports38. Indus Pharma supports and sponsors sports activities as a company policy and have been helping organisation of sports festivals with a special focus on tennis. The company is cognizant of the fact that the increasing intolerance and violent extremist trends in the society have a devastating effect on the society. In order to address this challenge, they are of the view that investments in sports activities and youth engagement are of vital importance. Indus pharma has been investing substantial human and financial resources in this regard and are interested in joining hands with organizations working in line with their company CSR policy39.

LV. Karachi-Electric (KE) is one of the most prominent power utility based in Karachi, with a consumer base of more than 2.2 million. K-Electric is vertically-integrated power utility that manages the generation, transmission and distribution of electricity

36 Interview with Mr. Aman ul Haque, Head of Engro Foundation and Ms. Leena Talpur, Business Sustainability Analysts, Engro Corporation. 37 Interview with Mr. Nameer Ahmed, Manager CSR, Hinopak, Karachi 38 Green Crescent Trust is a charity organisation being run by Indus pharma. Under the auspices of the trust at the moment 145 schools are operative across the Sindh province benefiting more than 32,000 children. 39 Interview with Mr. Zahid Saeed, CEO, Indus Pharma

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for Karachi. K-Electric has quite a large portfolio of investments in the social sector aimed at contributing towards sustainable growth in Karachi. Because of the politically volatile landscape of Karachi, the conflicts are a recurring phenomenon, and in case of conflict or a natural calamity K-Electric suffers in terms of infrastructure loss, that has direct bearing on its transmission and distribution capacities. In order to mitigate conflict K-Electric team understands that diverse investment in social capital is critical. As of now, K-Electric has no dedicated program which is directly aligned with CVE objectives. However, the company is conscious of the violent extremism and conflict situation in Karachi and is interested in exploring possibilities to direct its efforts towards activities which can help addressing the push factors of violent extremism and radicalization in Karachi.40

Table 3: Corporate/Business Entities Interested in Partnering for CVE with AeP

Interested in Collaboration Sr. Name of the Company for CVE Activities/Signing MoU with AeP 1 Engro Corporation  2 Hinopak Motors Limited  3 Indus Pharma  4 Karachi Electric (KE)  5 Mobilink  6 Mari Petroleum Company Limited (MPCL)  7 Philip Morris (Pakistan) Limited  8 Pakistan Telecommunication Company Limited (PTCL)  9 Shell Pakistan Limited (SPL)  10 Unilever Pakistan Limited 

A research by International Alert suggests that “dysfunctional CSR strategies” may cause conflict and contribute to insecurity if they are not designed in a “conflict- sensitive” manner.41 Securities and Exchange Commission (SECP) as the key regulator of corporate sector has a significant role to play in this regard. In 2009, being encouraged by SECP the business community voluntarily drafted a regulation for CSR activities. In 2012, SECP convened a round table conference to finalize the proposed CSR framework. With the stakeholders‟ consent, the CSR guidelines were approved and notified by SECP in 201342. SECP CSR Guidelines provides enough

40 Interview with Ms. Sadia Dada, Director Marketing Communications, K-Electric 41 Pakistan Center for Philanthropy (PCP). 2015. Corporate Philanthropy in Pakistan 2000-2014: A Synthesis Report on Corporate Giving by Public Listed Companies. Islamabad. 42 CSR GUIDELINES 2013: SECP, in consultation with the corporate sector formulated these guidelines. These guidelines are aimed to promote responsible business conduct that supports community growth for public

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policy leverage to engage in an informed dialogue with the corporate entities in collaboration with SECP for channeling their CSR resources to augment the efforts for countering violent extremism.43 The contributions by the corporate commercial entities, if strategically utilized, would be a huge resource to for supporting CVE initiatives in Pakistan and particularly at local level.

interest, eliminates adverse practices impacting the public sphere and ensures corporate accountability. Though voluntary in nature the CSR Guidelines 2013 is the sole policy document in this context and can provide a strong entry point for engagement with public sector (SECP) and the private sector for creating a support base for CVE activities. 43 Interview with Mr. Amir Khan, Executive Director Securities and Exchange Commission Pakistan (SECP).

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SECTION - VI

CONCLUSION AND LOOKING AHEAD

Countering Violent Extremism Section-VI

Section-VI

CONCLUSION AND LOOKING AHEAD

LVI. Over the past few years the incidents of violent extremism and terrorism may have reduced substantially in Pakistan, but the malaise runs much deep. Violent and radical interpretations of religion, intolerance, militant ideologies still enjoy great traction in the society. The extremism is rampant at all levels of society which aptly explains the traction radical ideas receive in Pakistan. The violent extremist organizations (VEOs) have become a permanent feature of countries socio-political landscape. It is imperative to understand that violent extremism in Pakistan is a multi-dimensional phenomenon, manifested in movements for Islamization, sectarian hegemony, Talibanization, ethnic and political violence/insurgency in Karachi and Balochistan. Not discounting the extraordinary counter terrorism initiatives by Pakistan, more substantial initiatives are required for countering violent extremism (CVE). Pakistan may have been able to dominate the physical domain of terrorism by reclaiming the territory and annihilating terrorist heavens, it has yet to make a mark on the psychological domain. The extremist narrative being embedded in religious rhetoric dominates the social and political discourse in the country. For a comprehensive response to the extremist and terrorists, it is imperative to reclaim the lost space, because the VE narrative and VEOs over the past decade have successfully managed to capture the local socio-political and cultural space. In order to mount a response to this multidimensional challenge, fundamental shifts are necessary in the socio political spheres.

LVII. The present study has been a part of the efforts aimed at making these shifts happen. An effort to chart the course for identifying the possible role of local businesses and private sector in countering the violent extremism and reclaiming the space lost to radical and violent extremist ideologies. The role of local businesses and private sector has been considered promising for countering the violent extremism for a number of reasons. First, local business and private sector are one of the worst hit sections of society from the spread of violent extremism and ensuing militancy. Secondly, the local businesses and private sector are most well-informed about their respective communities and the factors perpetuating violent extremism. Thirdly, the local business leaders enjoy considerable sphere of influence in their respective areas thus enabling them to engage and influence effectively at local level. Fourthly, the local businesses and private sectors have already been working in close proximity with the governments at local tiers in times of emergencies, incidence of terrorism, etc. thus earning them a position to have quick wins in their respective areas of influence. Lastly, efforts for countering violent extremism have direct impact on ensuring peaceful and business friendly environments thus making them the main beneficiaries. The findings of the study corroborate these key assumptions, private sector and local businesses were found to be conscious of the key challenges brought

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forth by the rise of violent extremism. Besides being well conversant with the key drivers of violent extremism in their respective areas, the local businessmen had pragmatic solution for these. Poverty and Illiteracy being the bane of South Punjab along with other factors have been fueling the recruitment drive of militant extremists. Increasing employment opportunities, responsive and efficient service delivery of public utilities like education, health, and drinking water at local tiers, uniform policy measures and investing in local culture, heritage and sports were some of the key measures proposed by them. Additionally, there was a strong inclination and commitment on their part to invest in the cultural, sports, trade activities which can help generate a robust narrative to help reclaim the lost space to the extremists.

LVIII. The challenge of countering the violent extremism is serious undertaking to say the least, and there are numerous obstacles ranging from widespread acceptance of conservative ideologies, religious symbols based extremist narrative, role of the state institutions, etc. However the insights from the field afford promising signs. Understanding the role and potential of private sector in countering violent extremism is an uncharted territory the present study has been an able to generate preliminary evidence on the topic, and offers following set of policy recommendations, and possible entry points to engage with local businesses and private sector for CVE initiatives.

KNOWLEDGE GENERATION:

1. Evidence Generation: The role of local business and private sector is fundamental in achieving quick gains in terms of countering violent extremism. Nonetheless, there is hardly any perceptible evidence or knowledge which attempts to examine the role of local business and private sector in countering violent extremism. The present study with its limited scope has attempted to address this knowledge gap however this further highlights the need for a more comprehensive evidence base on the role of local business and private sector for informing the existing CVE/CVT policy and development discourse.

2. Model District CVE Strategy for Engaging Local Business and Private Sector: It is important to appreciate that every district has its distinct features and it would be imperative to map the local push and pull factors which contribute towards strengthening the violent extremism. The Model district strategy besides identifying the local push and pull factors will provide a locally relevant framework to engage private sector, local businesses, and district chambers of commerce. The model district strategy is proposed to be developed for one district of South Punjab in close coordination with the respective district government. The Model District CVE Strategy will be a resource for the district government and will be valuable for developing informed and targeted CVE interventions.

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ENTRY POINTS AND OPPORTUNITIES FOR PRIVATE SECTOR ENGAGEMENT:

Following recommendations propose multiple entry points for engagement, collaboration and implementation.

3. National Policy Engagement for Operationalization of National CSR Guidelines (SECP): A national and provincial level policy engagement is proposed with an aim to operationalize the National CSR guidelines. The CSR guidelines were issued by Securities and Exchange Commission of Pakistan (SECP) in close consultation with the stakeholders at national level. CSR Guidelines provide policy framework aligned with the CVE priority areas and key areas identified for investment including, promotion of local culture, festivals, sports, and youth development. The engagement is proposed to be done in close collaboration with SECP. The target audience for the National Consultation on CSR will be Multi National and National Corporations, Federal Chamber of Commerce and Industry, Lahore, Multan, Islamabad, Karachi Chambers of Commerce and Industry, International and National Development Partners, Media, etc.

4. Engagement with Corporate Sector: A multi-tiered engagement with Corporate sector is proposed: a. A PCP facilitated engagement with select corporate sector firms is proposed. The proposed engagement can be initiated in collaboration and support from Pakistan Center for Philanthropy (PCP). Philanthropy Support Services (PSS) program of PCP is effectively playing the role of clearing house for corporate philanthropy and promotes partnerships between CSOs, grant-makers and government. PCP, by virtue of its engagement with Business, Public Sector and Development organisations provide a credible platform and a practical opportunity to help align efforts for CVE with private sector acting as the key vehicle. PCP has been monitoring and reporting on Corporate and Private sector philanthropy since 2000, thus making it the most credible and effective partner for facilitating engagement with the private sector and corporate entities. b. One-on-one targeted engagement with corporate sector/ CSR programs, whereby they should be encouraged to design their CSR policies and program in a manner which contributes towards strengthening local culture and heritage. Most of the CSR activities are aligned with marketing strategies of the company and their economic interest. The philanthropic spending is generally a small part of CSR budget, the engagement should be aimed at informing the decision making process for using that portion of the resource pool.

5. Engagement with NACTA: NACTA has a dedicated section working on CVE, however there is hardly any initiative which targets to unleash the potential of local businesses and private sector in support of district and sub-district tier interventions. An informed

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engagement with NACTA on this particular area is suggested with an aim of devising a perceptive strategy for engaging local businesses and private sector in South Punjab and Karachi. It is also proposed that a special briefing session may be arranged to share the findings of the study with NACTA CT and CVE teams.

6. Exploring possibilities of partnering with Corporate Sector: During the course of the study a number of corporate entities expressed interest in exploring collaboration on initiatives aimed at countering violent extremism. These include, Engro Corporation, Unilever, Hinopak Motors Limited, Indus Pharma, and Mobilink, It is proposed that the follow-up to initial conversation be initiated to explore future collaborations.

7. Piloting the Model in a Select District: Working with local private sector is an uncharted territory, though there numerous examples from international practice to establish that private sector can play an effective role in strengthening the narrative to counter violent extremism. Nonetheless it is recommended that this work should be piloted in one district so as to have better understanding of the impact and possible obstacles in this regard. Considering the ground situation, the study recommends that the work may be piloted in District Bahawalpur.

8. Road Map for Engagement at District/Tehsil Tiers: Engaging with SMEs and district- level traders‟ associations will be fruitful in creating impact and implementing the findings of the study. Local traders have organized associations connecting business community at different tiers of the district, with more ingress into the communities. In order to effectively respond to violent extremism, engagement is proposed with district level traders and businessmen associations. In order to undertake effective engagement following is proposed: a. District-specific strategy for engagement with district traders‟ associations be developed in collaboration with the district governments. The strategy should clearly outline the policy asks from the local traders‟ associations. b. Track Your Money: Sensitization of and training of local traders‟ associations for identifying and tracking the money being given to individuals and organizations in charity. c. Formation of Joint Working Groups with District Governments: The traders‟ associations and district governments should be motivated and encouraged to form joint working groups on devising district-specific strategy to counter violent extremism d. Engagement with Local Establishment of National and Multinational Companies e. Creating Local Champions of Change: Creation of local champions of change would be essential to influence the local level processes and garner support and ownership. The local champions will be instrumental in promotion of the cause of for development of local arts, crafts and sports.

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ANNEXES

Countering Violent Extremism Annexes

Annex-I

Bibliography

1. A.H. Cordesman and V. Vira (2011). Pakistan: Violence versus Stability: A National Net Assessment. Washington: Center for Strategic and International Studies. 2. Asian Development Bank (2008). Private Sector Assessment: Pakistan. . 3. Ballentine, Karen and Heiko Nitzschke 2003. Beyond Greed and Grievance: Policy Lessons from Studies in the Political Economy of Armed Conflict. New York: International Peace Academy 4. C.D.A (2014). Business for Peace: Understanding and Assessing Corporate Contributions to Peace. CDA Collaborative Learning Projects. 5. CIPE. RBI. (2010). Responsible Business Guide: A Toolkit for Winning Companies. Pakistan. Responsible Business Initiative. 6. D Sunita Kapila and Donald Mead (eds.) 2002. Building Businesses With Small Producers. Successful Business Development Services In Africa, Asia, And Latin America. London/ Ottawa: ITDG Publishing/ International Development Research Centre (IDRC); 7. Economy and Conflict Research Group 2004. From War Economies to Peace Economies in the South Caucasus. London/ Moscow: International Alert. 8. Fair, C.C., Littman, R., Malhotra, N. and Shapiro, J.N., 2013. Relative Poverty, Perceived Violence, and Support for Militant Politics: Evidence from Pakistan Working paper; 9. Government of Punjab. 2016. Punjab Development Statistics 2015. Bureau of Statistics, Government of Punjab. 10. Institute for Economics and Peace. 2015. "Global Terrorism Index Report 2015". available at http://economicsandpeace.org/wp-content/uploads/2015/11/Global- Terrorism-Index-2015.pdf 11. International Alert (2005). Peace through Profit: Sri Lankan Perspective on Corporate Social Responsibility. London and Colombo. 12. International Alert. (2005) Peace Through Profit: Sri Lankan Perspectives on Corporate Social Responsibility (Colombo, Sri Lanka: International Alert);

13. Jane Nelson (2000). The business of peace: the private sector as a partner in conflict prevention and resolution. London: Prince of Wales Business Leaders Forum. 14. John Bray (2009). The Role of Private Sector Actors in Post-Conflict Recovery. Conflict, Security & Development. 15. Josh Lerner, Asim Ijaz Khwaja, and Ann Leamon (2012). Abraaj Capital and the Karachi Electric Supply Company. Harvard Business School. 16. Killick, N., Srikantha, V. S. and Gündüz, C. (2005) The Role of Local Business in Peacebuilding (Berlin, Germany: Berghof Research Center for Constructive Conflict Management).

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17. Leghari and Khalid. 2014. “Radicalization of Youth in Southern Punjab” in South Asian Studies. 29:2. pp. 537-551 18. Luc Zandvliet (2005). Opportunities for synergy: Conflict transformation and the corporate agenda. Berghof Research Center for Constructive Conflict Management. 19. Mehboob. S.R. 2011. Governance and Militancy in Pakistan‟s South Punjab Region. CSIS. 20. Ministry of Finance, Pakistan Economic Survey 2014-2015 (Islamabad: Government of Pakistan, 2015), Pakistan Centre for Philanthropy (PCP). 2015. Corporate Philanthropy in Pakistan: A Synthesis Report on Corporate Giving by Public Listed Companies. Islamabad. 21. Mudassir Raja, “Pakistani Victims: War on Terror Toll Put at 49,000,” The Express Tribune, March 27, 2013, http://tribune.com.pk/story/527016/pakistani-victims-war- on-terror-toll-put-at-49000/. 22. N. Buksh (2013). Business as an Agent for Peace in Pakistan: Role of British Pakistani Business Diaspora. London: International Alert. 23. Olawale Ismail and Rabia Nusrat (2014). Exploring the Potential of the Private Sector to Contribute to Peacebuilding in Pakistan. 24. Olawale Ismail and Rabia Nusrat (2014). Exploring the Potential of the Private Sector to Contribute to Peace Building in Pakistan. International Alert. 25. Peschka, Mary Porter. Emery, James J. & Martin, Keith. 2010. The Role of the Private Sector in Fragile and Conflict-Affected States. Background Paper, World Development Report 2011. 26. Planning and Development Department. 2014. Multiple Indicator Cluster Survey 2014. Government of Punjab 27. Responsible Business Initiative (RBI) (2013). Business as a Bridge to Peacebuilding: Voices from Pakistan. RBI. 28. Responsible Business Initiative (RIB) (2010). Responsible Business Guide: A Toolkit for Winning Companies. Pakistan: RIB. 29. Sadika Hameed (2014). Opportunities in the Development Sector of Pakistan’ Private Sector. Washington: Centre for Strategic and International Studies.

30. Safwan A. Khan and Vaqar Ahmed (2014). Peaceful Economies: Assessing the Role of the Private Sector in Conflict Prevention in Pakistan. Stability: International Journal of Security & Development. 31. Security v Access: The Impact of Mobile Network Shutdowns-Case Study: Telenor Pakistan; Case Study Number 3, September 2015 Institute for Human Rights and Business (IHRB) 32. ShabirHyder, NaeemAkram and Ihtsham Ul Haq Padda. 2015. “Impact of Terrorism on Economic Development in Pakistan, in Pakistan Business Review; Jan 2015 33. Shannon Murphy and Jane Nelson (2010). Business Partnerships for Development: The Case of the National Beverage Company in the West Bank and Gaza. CRSP, Harvard Kennedy School. 34. Shell Pakistan local initiatives: http://www.shell.com.pk/environment-society/society- tpkg/local-initiatives.html.

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35. Siddiqa. Ayesha, 2013. The New Frontiers: Militancy & Radicalism in Punjab. Centre for International and Strategic Analysis.; 36. Sustainable Development Policy Institute (SDPI) (2012). Business for Peace: Assessing the Role of the Private Sector in Mitigating Conflicts in Pakistan. Islamabad: SDPI. 37. Tahir Kamran, Evolution and Impact of „Deobandi‟ Islam in the Punjab. available at http://www.gcu.edu.pk/FullTextJour/Hist/V3N205/P28-50.pdf;. 38. Tariq. Rahman. 2008. “Madrasas: Potential for violence in Pakistan” in Jamal Malik ed., Madrasas in South Asia: teaching terror? Routledge; Muhammad Ramzan. 2015. “Sectarian landscape, Madrasas and Militancy in Punjab” in Journal of Political Studies, 22: 2. pp421:436 39. Timothy L. Fort and Cindy A. Schipani (2007). An Action Plan for the Role of Business in Fostering Peace. American Business Law Journal. 44 (2): 359-377 40. United Nations, First Report of the Working Group on Radicalisation and Extremism that Lead to Terrorism: Inventory of State Programmes 41. USAID. 2011. The Development Response to Violent Extremism and Insurgency: Putting Principles Into Practice, USAID Policy, September 2011. 42. Will McCants and Clinton Watts, “U.S. Strategy for Countering Violent Extremism: An Assessment,” Foreign Policy Research Institute E-Notes, December 2012. 43. Zia-ur-Rehman. 2014. “Militant economy of Karachi”. in Conflict and Peace Studies, Islamabad.

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Annex-II

List of Key Informant Interviews: Local Business, Private Sector, and Public Sector Representatives

Name of Sr. Designation Type of sector- Industry/Commercia Postal Name of Person No. /Owner Interviewees l Business/ Chamber Address of Commerce Allah Baksh Owner Cotton Ginning Gulshan Cotton Jhok Jhanwar 1. Ginner Bahawalpur Khan Atta Owner Cotton Ginning Hamza Cotton Ginner Hamza Muhammad Cotton 2. Khan Ginner Ahmad Pur Ch. Mehmood Owner Ghee Mill Asia Ghee Mill Asia Ghee 3. Majeed Mill Bahawalpur Gulzar Ahmad Owner Construction Dawood PVC Pipe Dawood industry Factory PVC 4. Baghdadul Jadeed Bahawalpur Haji Owner Cotton Ginning M. Saddique Cotton M Saddique Muhammad Cotton 5. Saddique Khanqah Sharif Bahawalpur Ch. Muhammad Owner Cotton Ginning Arshad Cotton Arshad Arshad Cotton 6. Ahmad Pur Road Bahawalpur Ch. Muhammad Owner Cotton Ginning Dua Cotton Ginner Dua Cotton Abdullah Ginner 7. Kalanch Wala Road Bahawalpur Faizan Bin Fazal Owner Alternate Bio Gas Booster Modal Town Energy A Railway 8. Road Bahawalpur Ch. Zahid Owner Alternate Nowal Bio Sciences Small 9. Energy Industery Bahawalpur Shaikh Owner Cattle Shed Control shed Mari 10. Salahudin Sheikhan Rana Munir District Government Small Industry Office Small 11. Finance officials Industery Manager (Industry) Office

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Industry Bahawalpur

Irfan Cheema Director Government Agriculture Office Agriculture 12. Agriculture officials Bahawalpur Office (Industry) Bahawalpur Israr Shah Owner District Injum President Distt. Pak Tajran Anjuman Tajran Computer 13. Universty Chowk Bahawalpur Rao Abid Ali Owner Agri-business Moon Enterprises Moon Enterprises Old 14. Sabzimandi Multan Road Bahawalpur Sardar M. Owner Agri-business Hushiyarpur Zari Old Ramzan Ramay Services Sabzimandi 15. Multan Road Bahawalpur Zafar Sharif President Chamber of Chamber Of Chamber Of 16. Commerce Commerce Commerce Bahawalpur Abeer Haider General Chamber of Chamber Of Chamber Of 17. Secretary Commerce Commerce Commerce Bahawalpur Dr. Ehtesham District Government Government DCO Office, Anwar Coordinatio Official Bahawalpur 18. n Officer (DCO) Mumtaz Khan Owner Textile/Towel F.M Towel Industry Bijli Nager 19. Manufacturers Sector 4F Orangi Town Mr. Fawad Owner Textile Jawad Industries Kashif Ahmed Exporters (Exporter) Centre Near 20. Hotel Mehran Ghani Haider Owner Printing and Ghani Industry Pakistan 21. Publishing Chowk, Karachi G.M Munawar Owner Heavy Universal Tractor Tariq Road Machinery Near 22. Rehmaniya Masjid Yaseen Malick Owner Pharmaceutical Hilton Pharmaceutical Shahra-e- 23. Company Faisal, Karachi Farhan Chawla Owner Pharmaceutical Bosch Pharmaceutical Shahra-e- 24. Company Ltd. Faisal, Karachi Aamir Abbasi Md Alternate fuel Near Hub 25. Power Plant, Karachi

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Shahid Shaikh Edo Provincial EDO Industries Civic Center, 26. Industries Government Karachi Mr. Rafaqat Do Provincial DO Industries SITE Area, 27. Government Karachi Mr. Ejaz Ahmed President Traders Traders Association Orangi 28. Association Town, Karachi Khurshid Jafri Md Rice Marketing Jaffri Rice Products Nazimabad 29. and Export No. 3 Karachi Mr. Faryad Manager Rice Marketing Sindh Rice Products Nazimabad 30. and Export No. 3 Karachi Anjum Naser President Chamber of Chamber of Awan-e- Commerce Commerce Tijarat Road 31. Shahra-e- Laiqat Aqeel Al Jaseem Secretary Chamber of Chamber of ST. 2/A General Commerce Commerce Block 9 32. KDA Schem no 5 Clifton Amir Rasool Owner Cotton Ginning Sohail Kashif, Shah Sohail 33. Nal Lodhran kashif, Shah Nal Lodhran Yasir Shah Owner Cotton Ginning Al. Manzoor Cotton Al. Manzoor Ginning Factory Cotton 34. Ginning Factory, BWP Road Nadeem Sarwar Owner Cotton Ginning Al-Rehman Cotton Al-Rehman Factory Cotton 35. Factory, Shuja Abad Mian Riaz Owner Edible Oil Jaleywal Oil Mill Jaleywal, Oil Mill, Jalay 36. Wal, Lodhran Rana Faiz Owner Edible Oil Al- Yasrab Oil Mill Al- Yasrab 37. Oil mill, BWp Road Tahir Mehmood District Government Agriculture Government 38. Officer Official Complex Lodhran Haji Saeed Owner Cotton Ginning Al-Saeed Cotton Al-Saeed Factory Cotton 39. Factory, Gogran Road Lodhran M. Akram Regional Herbal Saadat Herbal Labs Saadat 40. Manager Medicines Herbal Labs Lodhran Shumaila Anwer Regional U- Micro Finance U- Micro 41. Credit Banking Finance ,

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Manager BWP Road, Lodhran Muhammad President Banking Bank of Naeem Punjab (near 42. Fawara Chowk) Rao Javaid Member Traders District Traders Main Bazar, 43. Association Association Lodhran Amin butt Secretary Traders District Traders Main Bazar 44. Association Association Lodhran Malik Madni Owner Pesticide Malik Traders Malik Supplier Traders, 45. Karor Pakka Road, Lodhran Malik Jaffir Owner Pesticide Jaffar Traders Jaffar Supplier Traders, 46. Karor Pakka Road, Lodhran Rao Ehsan District Traders District Traders Main Bazar, 47. President Association Association :Lodhran Mirza Saleem General Traders District Traders Dak Khana 48. Akhtar Secretary Association Association Chowk, Lodhran Muhammad President Traders District Traders Sarafa Bazar 49. Iq bal Association Association Lodhran Mian Ramzan Shah Shams 50. Owner Industry Power looms Ansari Road Multan Bawa Safra 51. Muzamil Ansari Owner Industry Warping Shah Shams Road Multan Bawa Safra 52. Nafees Ahmed Owner Industry Power Loom Dying Shah Shams Road Multan Garden 53. Umair Ali Khan Owner Cotton Ginning Cotton Industry Town Multan Zikriya Grocery & Town Street 54. Hassan Raza Owner Wajid Super Store Super Store No.40 Multan Near Police Station Muhammad Event Bismillah Super 55. Owner Zakriya Rafiq Organizers Garden Town Multan Near Dawoo Government Government Officials Workshop 56. Zafer Iqbal Do officials (Industry) Khaniwal (Industry) Rood Multan

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Government Ch.Naseer Do Government Officials Old Shujabad 57. officials ahmad Agriculture (Industry) Rood Multan (Industry) Rang Mehal Khalid Paint District Traders 58. Mehmood President Traders Union Qaddafi Association Qurashi Chowk Multan Malik Shahjahan Agro Jalalpur Pir 59. Muhammad Owner Agri-business Services Wala Multan Rafique Near Boys Degree 60. Amir Ejaz Owner Agri-business Mahar Agro Services College Jalal Pur Pir Wala Near Kalma Fareed Mugheez Chamber of Chamber Of 61. President Chowk Sheikh Commerce Commerce Multan Near Kalma General Chamber of Chamber Of 62. Khuram Sahib Chowk Secretary Commerce Commerce Multan Mailk Sahb Malik Traiding General District Traders 63. Muhammad Traders Union Coorporation Secretary Association Akram Hazoori Bagh Multan District Traders Chungi No 64. Abid Ali President Traders Union Association 14 Multan Member of Chamber of Chamber Of Tariq Road 65. Haseeb Khan executive Commerce Commerce Multan committee Railway Soap Road 66. Mr. Shahid Owner Mamo Soap Factory Manufacturer Muzaffargar h Jang Road Plastic/Polypro Sg Polypropylene 67. Mr. Saad Khan Owner Muzaffargar pylene (Pvt) .Ltd h Railway Mr. Muhammad Road 68. Owner Flour Mill Flour Mill Asif Muzaffargar h Construction- Mr. Naseer Muzaffargar 69. Owner Allied Products Cement Pipe Factory Ahmad h Industry Mr. Abdul- Ready Made Ali Pur Road 70. Owner Textile/Boutique Rehman Garment Khan Garh Mr. Muhammad Plastic Bag Ahsan Plastic Bag Muzaffargar 71. Owner Ahsan Industry Unit h Ali Pur Road Mr. Muhammad Food 72. Owner Biscuit Factory Muzaffargar Aslam Manufacturer h

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Departmental Ali Pur Khan 73. Mr. Ehsan Khan Owner Al-Haseeb Store Garh Main Bazar Electronic 74. Mr. Nadeem Owner Moon Mobile Muzaffargar Goods/Mobile h Commercial Ali Pur Road 75. Mr. Azam Qazi Owner Noor Computers Business Khan Garh Mr. Shahid Food, Bakery, Muzaffargar 76. Owner Multan Bakers Ahmad Confectioner h Mr. Jahngeer District Government Muzaffargar 77. Agriculture Ali Officer Officials h Shajamal 78. Mr. Muhammad Owner Agri Business Neya Sawera Road Khan Tahir Garh Muzaffargar 79. Mr. Imran Khan Owner Agri Business Target Centre h Railway Service Road 80. Mr. Alam Sher Owner Catering Services Provider Muzaffargar h Mr. Muhammad Muzaffargar 81. Owner Agri Business Zubair Agro Shoaib h Railway Soap Road 82. Mr. Shahid Owner Mamo Soap Factory Manufacturer Muzaffargar h

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Annex-III

List of Key Informant Interviews: Corporate Sector

S/No Name Designation Organization

Head of Engro Foundation 1. Mr. Aman ul Haque Engro Corporation Manager CSR & Media Securities and Exchange 2. Mr. Amir Khan Executive Director Commission Pakistan (SECP)

3. Mr. Behzad Khan Social Investment Lead Shell Pakistan

4. Mr. Favad Soomro Director, Engro Foundation Engro Corporation

Executive Vice President, Human Pakistan Telecommunication 5. Mr. Fraz Aslam Resource Operations Company Limited Mari Petroleum Company 6. Mr. Hassan Hafeez Electrical Engineer Limited Mr. Hussain Ali 7. Senior Manager Corporate Affairs Unilever Pakistan Talib Mr. Mansoor Senior Program Officer, 8. Pakistan Centre for Philanthropy Sarwar Philanthropy Support Services Corporate Social Responsibility 9. Mr. Nameer Ahmed Hinopak Motors Limited Officer Manager, Corporate Social 10. Mr. Suhaib Arshad Responsibility & Corporate Mobilink Pakistan Communications

11. Mr. Zahid Saeed Chief Executive Officer Indus Pharma

Manager Corporate Ms. Ruby Gul Phillip Morris International, 12. Communications & Media Afridi Pakistan Relations

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Annex-IV

List of Focus Group Discussions and Participants

Bahawalpur Focus Group Discussion 1 Sr. Name Designation Sector Business/Industry/Profession Contact/Address No. Muhammad Owner Commercial Gold Smith Asif Gold Smith 1 Asif Business Sarafa Bazar Bahawalpur Ejaz ul Senior Vice CSO Wise Development Chah Fateh Khan 2 Hassan President Organization Bahawalpur Naqvi Malik President CSO Social Service Committee Dhanot, 3 Saddique Bahawalpur Naik Rao Abid Owner Pesticide Moon Enterprises Moon Enterprises Ali Supplies Old Sabzimandi 4 Multan Road Bahawalpur Malik M. Owner Pesticide Channer Traders Channer Market 5 Ejaz Suppliers Old Sabzimandi Channer Road Bahawalpur Raheel Reporter Media Royal News Press Club 6 Tahir Bahawalpur

Asim Reporter Media Din News Press Club 7 Durrani Bahawalpur Zafar Sharif President Chamber of Exporter Chamber of Trade 8 Commerce and Commerce Bahawalpur Mian Owner Commercial Entrepreneur Model Town C 9 Masood Business Bahawalpur Ahmad Aslam Vice District Retailer Dubai Chowk A P 10 Khan President Traders E Road Association Bahawalpur Bahawalpur FGD 2 Fayaz Owner Petroleum Madni C.N.G Madni C.N.G Multan 11 Mehmood Industry Road Bahawalpur Kamran Owner Petroleum Madina Petroleum Bahawalpur Bypass 12 Rasheed Industry Services Ch. Razzaq Owner Commercial Razzaq Traders Old Sabzimandi 13 Business Road Bahawalpur Gulzar Owner Commercial Gulzar Zari Service Mari Qasim Shah 14 Bhatti Business Bahawalpur

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Jamshaid Owner CSO Al- Fateh Welfare Chowk Nawaban 15 Kareem Bahawalpur Muhammad Owner Cotton Malik Ginning Factory Awan House Farooq (Farmer Ginning Bahawalpur 16 Azam Malik & Ginner) Aziz-ud-Din Reporter Media Daily Khabrain Press Club 17 Bahawalpur Mian President Chamber of Chamber of Commerce Sona Chandi C.N.G 18 Shahid Iqbal Commerce Bahawalpur Ch Tanveer Executiv Government Agriculture and Industry Agriculture Office Ahmed e officials Department Bahawalpur 19 Director (Agricultural & Industry) Nadeem General District Cloth Merchant Multan Road 20 Qureshi Sectary Traders Bahawalpur Association

Karachi Focus Group Discussion 1 Sr. Designation Business/Industry/Prof No Name Sector Contact/Address ession . Nasir MD Aluminum Japan Metal Industries SITE Area, Karachi 1 Shakoor Goods Anis Sakari Owner Crockery- Plastic Industries Gudam Chowring 2 Plastic Korangi, Karachi Mr. Naseem Owner Printing and MIMA Printing Shorab Goth, Karachi 3 publishing Mr. Ubaid Owner Pharmaceuti Sami Pharmaceutical SITE Area, Karachi 4 cal Company

Uzma Consultant CSOs Intellect Consultant Gulsan-e-Johar 6 Khalid Naveed Reporter Media Royal Channel Karachi 7 Shaikh Kamran Reporter Media Qaumi News Karachi 8 Shaikh Ayaz M.D Provincial Agricultural & Industry Civic Centre 9 Somroo Government Siraj General Traders Trade Association Saddar, Karachi 10 Chawla Secretary Association Karachi FGD-2 11 M. Sagheer Owner Textile/ Towel Sajid & Masid Towel 4/D Quaid Awan Manufacturers Industry Colony Orangi Khawja Owner Bottled Water Mineral Asia Pvt. Ltd. Korangi Chamra 12 Farhan Chowrangi Bashir

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13 Shakil Owner Tannery Universal Leather Boloch Colony Ahmed Company 14 Naushad Owner Pharmaceutical Platinum Shahra-e-Faisal Irani Pharmaceutical Company 15 Khurram Owner Software Software Solution Shahra-e-Faisal Jamal Development 16 Mr. Iqbal Consultant Technology Aptech North Nazimabad Consultant 17 Khalil Sattar Owner Food Industry K&Ns Baloch Colony

18 Abid Owner Food Industry Hussani Food Industry Azan Arcade Fida Hussan Hussani Maripur 19 Mr. Farhan Reporter Media Hum T.V Karachi

20 Hafiz Reporter Media Royal Channel Karachi Arshad

Lodhran Focus Group Discussion 1

Sr. Business/Industry/Prof Name Designation Sector Contact/Address No ession . Shahzad Owner Industry Muslim Flour Mill Muslim Flour Mill, 1 Ahmed BWP Road, Lodhran Mirza Asif Owner Industry Ali Ice Factory Ali Ice Factory, BWP 2 Ali Road, Lodhran Malik Owner Cotton Awami Cotton Factory Awami Cotton Sohail Ginning Factory, Shuja Abad 3 Mahmood Road, Lodhran Saqib Coordinator CSOs Public Democratic Public Democratic Forum Fourm (near Sabzi 4 Mandi, Lodhran. Adeeba District CSOs Strengthening SPO Lodhran City, Shehrish Coordinator Participatory Lodhran 5 Organization Rana Bureau Chief Media Roze News Roze News, Railway Shakir Road, Lodhran 6 Mahmood Malik Irfan Reporter Media ARY News Press Club Lodhran Rehan 7 Khalid District Government DO Agriculture Government Jamshaid Officer official Complex, Lodhran Sindhu (Agricultura l & 8 Industry) Ejaz President Traders District Traders Main Bazar, Lodhran Ahmed Main Bazar Association Association 9

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Tasim Butt City Traders District Traders Main Bazar, Lodhran President Association Association 10 Lodhran FGD-2 Tahir Javed Owner Flour Mill Flour Mill Tahir Flour Mill, BWP Road, Super 11 Chowk. Lodhran Saif Ullah Senior Edible oil GR Industries GR Industries, BWP Bhatti Manager Road, Lodhran 12 Sheikh M. Owner Cotton Sheikh Cotton Factory Sheikh Cotton Abbas Ginning Factory, BWP Road, 13 Raza Lodhran Mehmood Owner Cotton Mehmood Cotton Mehmood Cotton Rafiq Ginning Factory Factory, Jalal Pur 14 Road Nasir Javed Territory Pesticides Syngenta Syngenta , Fawara Sales Officer Marketing Chowk 15 Ghulam District CSO Marie Stopes Society Marie Stopes Society, Shabbir Project Karor Pakka Road 16 Officer Shahbaz Director CSO Public Welfare Public Welfare Awan Organization Organization (near 17 Sabzi Mandi). Azhar Auditor/Chie Print Daily Leher Sahil Jalal Pur Chowk, Bukhari f Reporter Lodhran 18 Mirza Reporter Media Geo/Jang District Club, Rajab Ali Lodhran 19 Rasheed Dpt District Government Agriculture Department Government Complex Ahmed Officer Officials 20

Multan Focus Group Discussion 1 Sr. Business/Industry/ Name Designation Sector Contact/Address No. Profession Muhammad Textile- Chungi No 14 1 Owner Power looms Yosuf Accessories Multan Haji Near Plat Rasheed Construction Yousuf Marble 2 Muhammad Owner Abad Khanewal Goods factory Yousif Road Multan House#88 Garden Chaudary 3 Owner Goods Packaging Service Provider Town Sheer Shah Sultan Road Multan House#30 Street No 1 Alquresh Zahid Ali 4 Owner Cotton Ginning cotton industry Housing Scheme Khan Phase 1 Sher Sha Rood Multan Cant

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Hassan Abad Ch. Inayat Fiber Glass 5 Owner Khaniwal Rood Ullah Manufacturer Multan Mujahid Super Jam Commercial 6 Owner super sote Store Near Model Mujahid Business Chowk Multan Near Gulistan Khezar Hyat 7 Owner Automobile Motorcycle Chowk Masoom Shah Sha Rood Multan D Markeet Shah Malik Asim Electronic/Retail 8 Owner Electronic Rukny Alam Kambooh Goods Multan Commercial Near Model Town 9 Asad Owner Cement agency Business Chowk Multan Jam House Mehar Jam Junaid 10 President CSOs NGO Ali Town Bosan Iqbal Road Multan Imtiaz House#11 Street 11 Akram President CSOs NGO #40 Zikria Town Wahla Multan Muhammad Agriculture Ara Pul Bahawal 12 Owner Asim Traders Ismail Support Services Pur Road Multan

Shoukat Fertilizers, Fahad & Saad 13 Owner Basti Malook Nawaz Pesticide Retail Enterprise Roznama Ausaf Razish Senior Staff 14 Media Roznama Ausaf Hassan Prwana Liaqut Puri Reporter Colony Multan Hassan perwana 15 Mr. Asim Reporter Media Sama news colony Multan Abdul Member Chamber of Manufacturer/Trader Humayon road 16 Hameed Executive Commerce s Association Multan Sheikh Committee Member Bukhsh Chamber of Manufacturer/Trader Chowk Qazafi 17 Executive Elahi Commerce s Association Multan Committee Focus Group Discussion 2 House No.63,Dawood 18 Safdar Ali Owner Fabrics Textile Jahania Colony Hafiz Jamal Road Multan House#30 Street No 1 Zahid Ali Alquresh Housing 19 Owner Cotton Ginning Industry Khan Scheme Phase 1 Sher Sha Rood Multan Cant Near Chowk Muhammad Rasheedabad 20 Owner Marble Finishing Marble factory Ali Khanewal Road Multan

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Welkon House Main Ch.Saad ur 21 Director Cattle Food Manufacturer Shalimar Bosan Road rehman Multan Glass and Ch. Fahd ur 22 Director Packaging PolyPet (Pvt) Rehman Products

Kamran Al majeed Main Gardezi Market 23 Owner Cloth Merchant Majeed fabrics Multan

House No.63,Dawood 24 Safdar Ali Owner Fabrics Textile Jahania Colony Hafiz Jamal Road Multan Electronic Jahanzeb United mobile 25 Owner Goods/Mobile Rahema Plaza Multan Khan shop Phone

Sheikh Sheikh Super Shah Rukn-E-Alam 26 Owner Grocery Store Aslam Store Colony Multan

General House#11street #40 27 Fida hussain Philanthropist Philanthropist Secretary Zikria Town Multan

NGO-Help Faisal human Shah Rukn-E-Alam 28 President CSO Mansoor development Colony Multan Organization Malik Agriculture Bahawal Pur Chowk 29 Muhammad Owner Tahir & Co Marketing Multan Tahir Bhutta Malik Agriculture Shuja Abad Road Malik Zrai 30 Muhammad Owner Fertilizers and Bridge Lohari Gate Service Javeed Pesticides Multan

Imrana News Pakistan News Near District Courts 31 Media Komal Reporter paper Multan

Muzaffargarh Focus Group Discussion 1 Sr. Business/Industry/ Name Designation Sector Contact/Address No. Profession M.Ibrahi Mohala Qaim Wala 1 Owner Utensils Sliver Industry m Muzaffargarh Finished 2 M.Sajid Owner Garments MuzaffarGarh Clothes Najeeb Cotton Allied D.G Khan ROAD 3 Owner Power looms Khan SM Industry MuzaffarGarh Hafez Ur 4 Owner Industry Iron Work MuzaffarGarh Rehman

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Murtaza 5 Owner Food Industry Biscuits industry MuzaffarGarh Hassan Agri M.Hayat Chemicals, Ghala Mandi Road 6 Owner Naya Sawera Khan Pesticides, MuzaffarGarh Fertilizers Agri Khalil Ur Chemicals, Ghala Mandi Road 7 Owner Soni Dharti Rehman Pesticides, MuzaffarGarh Fertilizers Rana Amjad 8 Journalist Media Daily Pakistan MuzaffarGarh Ali Amjad Raja 9 Abid President CSOs Kohsar Welfare MuzaffarGarh Ashraf Muzaffargarh FGD -2 Muhammad Service Colgate Pakistan Multan Road 10 Nasir Owner Provider/Whol Ltd Muzaffargarh Arshad e Seller Service 11 Ch. Adeel Owner Provider/Whol Lever Bros Muzaffargarh e Seller Pesticides 12 Satawat Owner 4-B, Agri Services Muzaffargarh Supplier Fertilizers, Mr. Sajjad Pesticides, etc. 13 Owner Dost Agro Muzaffargarh Shahid Agriculture Equipment Mr. Waqar Electronic 14 Journalist Media Muzaffargarh Alam Gujjar Media Mr. Shiekh General Distt. Anjaman Distt-Anjaman 15 Muzaffargarh Amir Secretary Tajran Tajran

16 Ch.Mubasha Owner Plastic Pipes Cement pipe Factory Muzaffargarh r Gujjar M.Amir 17 Owner Textile Hashir Textile Muzaffargarh Shahzad Mr. Ubaid Shoe 18 Owner Khan Shoes Factory Muzaffargarh Habib Manufacturer Plastic Mr. Sajid Ali Pur Bypass 19 Owner Utensils/Crock Plastic Factory Abbas Muzaffargarh ery etc. Ameer District Traders Distt Anjaman MuzaffarGarh 20 President Hassan Association Tajran

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Annex-V

Private Sector Organisations/Individuals Supporting Sports, Festivals, Literary Gatherings etc.

Specific Area, Activities Name of Supported (sports, Sr. Name of District Industry/Commercial cultural festivals, Postal Address No. Person/Owner Name Business/ local music, Poetry Recitation, Civic work) District Foot Ball Multan Road Muzaffar 1 Mobilink Franchise Sheikh Aslam Tournament M,Garh Garh Opp. Degree Muzaffar 2 Colgate Pakistan Ltd. Cricket Tournament Nasir Janjooa College M.Garh Garh Jashne Baharan Commety Road Muzaffar 3 Leaver Brothers Ch. Adeel Festival M. Garh Garh Ch. Mubashir Multan Road Muzaffar 4 Cement Pipe Factory Foot Ball Gujar M,Garh Garh City Poetry M. Amir Jhang Road M. Muzaffar 5 Hashir Textile Recitation Shahzad Garh Garh Ali Pur Road M. Muzaffar 6 Khan Shoes Factory Mela Qureshi Ubaid Habib Garh Garh Ali Pur By Pass Muzaffar 7 Silver Boss Factoy Musical Prg. M. Yameen M Garh Garh Hafeez Ul Muzaffar 8 Iron Works Foorl Ball Machth M. Garh Rehman Garh Al Habib Local Poetry Ehasan Ullah Ali pur Road Muzaffar 9 Departmental Recitation Khan Khan Garh Garh Muzaffar 10 Plastic Factory Cricket Tournament Sajid Abbas M. Garh Garh Malik GM petroleum , 11 GM petroleum Sports muhammad By passDera BWP farooq bhka road BWP Syed saad Ghalla Mandi 12 Syed Brothers Sports BWP bahar Shah BWP

Festivals, Seraiki Muhammad sarafa bazar 13 Asif Goldsmith BWP Poetry Recitation Asif BWP

Mian Massod Model Town C, 14 Utilities Store BWP Cultural Festivals BWP Ahmed BWP Cold storages, Rafee Sports , Cultural Malik Rafee Heavy Industrial 15 Cotton Factory, Oil BWP Festivals Hafeez Area BWP Mills, Ice factories

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Ch. Mehmood Ahmed pur Road 16 Asia Ghee Mills Sports BWP Majeed BWP

Sports especially Mari Qasim 17 Osama Zaree Services Gulzar Ahmed BWP Pakistani wrestling Shah, BWP Bio Gas Boaster ( back of SNGPL Faizan Bin 18 Production of natural Sports and melas Office, model BWP Fazal fertilizers) Town A, BWP small Industry 19 Nowal bio Sciences Sports Ch. Zahid Sab BWP area BWP Sardar Hushiyar pur Zaree Muhammad old sabaz mandi 20 Sports BWP Services Ramzan Road , BWP Ramay Qureshi Cloth Sports and Cultural Nadeem Multan Road 21 BWP merchant Festivals Qureshi BWP

Seraiki musharay Lucky Honda, Lucky Honda Ahmed 22 and cultural Fayyaz Ahmed katchery Road BWP Pur East Festivals Ahmed pur East pak computer 23 Computer Accessories Cultural Festivals Syed Israr shah university chowk BWP BWP

Muhammad Hussain Muhammad Water Works 24 Sports and Festivals Multan & Sons Hussan road Multan Suite No. 9,10,11 Nasir & Nasir Ground floor 25 Sports and Festivals Nasir Saddiqi Multan Exporters Limited Abdali road Multan Street No,1 Office #24 26 Abdulsattar & Sons Sports and Festivals Abdulstar Multan Khanewal road Multan 236-B 1st floor 27 Qadir & Sons Sports and Festivals Ghulam Qadir Gulghusht colony Multan Multan Maher munzil Mehmood Group of Lohari gate P/O 28 Sports and Festivals Khuwaja llyas Multan Industries box No.28 Multan Shaikh Near Autoe plaza Shaikh Meboob & 29 Sports and Festivals Meboob Dera adda LMQ Multan Company Ahmad road Multan Maher munzil Mehmood Textile Khuwaji 30 Sports and Festivals Lohari gate Multan mills Limited Iftikhar Multan

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Usaman Housary & Muhammad Kaly Mundi 31 Sports and Festivals Multan Garments Sajid Multan Rana Rana House, Shamim Group of 32 Sports Muhammad Rajpoot Colony Lodhran Industry Aslam Lodhran City Mirza Gas Center Mirza Saleem 33 Mirza Gas Center Local Festivals opposite rescue Lodhran Akhtar 15 Lodhran Malik Khalid Danwran, Tehsil Sports and local 34 Dealer Naya Sawera Hussain & District Lodhran Music Danwar Lodhran Main Office, Sports and local Rana Ashraf Ashraf HSS 35 Ashraf School System Lodhran Music Ali super chowk Lodhran City Shopping Sheikh Center Opposite 36 Poultry Control Shads Sports Iftakhar-ud- Lodhran Rescue 1122 Din Lodhran Abbassi House Mehmood-ul- Sports and local Near Soneri 37 Abbasia Public School Hassan Lodhran Music Mosque Kahror Abbassi Pacca Lodhran Jahangir Khan Tareen form 38 Tareen Form Civic Work Lodhran Tareen 12/MPR Lodhran Capt.(R) Izat Mughal form 39 Mughal Zarai Farm Sports Lodhran Javeed Khan 12/MPR Lodhran Smart Collection Smart Collection & Sports and local Malik Habib & Botique 40 Lodhran Botique Music Khokher Multan road Lodhran

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Annex-VI

Note on Sample- Geographical Coverage, Sample Size, and Nature

This section provides information about the profile of the respondents of the key informant interviews and the nts/discussants of the focus group discussions.

1.Overall 80% of the respondents and discussants were from the four districts of South Punjab and Sindh 20% were from Sindh. 20%

2.A total of 85 interviews were conducted with 17 respondents Punjab from each of the select districts. 80%

3.Majority of the respondents (48%) were between the ages of Geographical Distribution of Sample 40 to 60 years with more than 10 years of experience in their current trade profession. Only 17% of the respondents had an experience of less than 10 years.

4.Majority of the respondents were well educated, and only a small number of respondents (1.2%) had academic qualification of five years or less. Rest of the key informants reported to have completed education of a minimum of sixteen years or more.

Highest Education Completed

Primary Middle Matric F.A/F. SC B.A/B. SC M.A/M. SC M. Phil/Ph. D Professional Education 34.1 23.5 16.5 11.8 9.4 1.2 2.4 1.2

5.35 percent of the respondents of KIIs were from the industry and production sector, whereas 22.4% and 15.3% were from the retail and service sector. Respondents from the Agriculture and allied services constituted 10% of the total respondents.

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Retail Service Provide Industry/Production Agriculture Other Banking Cotton trader Supplier Importer and/or Exporter

35.3 22.4 15.3 10.6 1.2 2.4 2.4 2.4 4.7 2.4 1.2

6.The organisations of majority of the respondents can be categorized as small and medium enterprises, with 46% of the respondents running an establishment with one to six employees, whereas 41% of the respondents have six to twenty five employees. Only 7% of the respondents have or working for an organisation with more than 26 employees and only 6% represented organisations having more than 100 employees.

Size of Organization

6% 7%

46%

41%

1- 6 Emp 6 – 25 Emp 26 -100 Emp More than 100 Emp

7.A total of 112 discussants participated in 10 FGDs held in five districts (02 in each district). In each FGD a minimum of 10 discussants participated. The district wise distribution of discussants is given below.

District Wise Distribution of FGD Participants

24 32

29 38

20 Bahawalpur Muzaffargarh Karachi Lodhran Multan

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8. Besides representation from local industry, market traders, the discussants at the FGDs from the relevant sections of respective districts, including representatives of agriculturists, chambers of commerce, public sector, media and civil society. Trade and profession wise affiliation of the discussants who took part in the FGDs is given in the chart below.

Trade/Profession Wise FGD Participants 30 22 14 11 8 6 6 8 3 2 1 1

Industry- Manafacturers CSO Agri Marketing Oil and Gas Agri Pesticides Government Official Media Representatives Service Providers Retailer Trader Associations Software House Construction Services

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