Daily Times

“No Society can surely be flourishing and happy, of which the far greater part of members are poor and miserable”

Adam Smith

“The Wealth of Nations”

Adam Smith, the father of Modern Economics published his master piece “The Wealth of Nations” in 1776. The book highlights factors that spur a nation’s wealth and incite growth and prosperity. Adam Smith’s economic theory doctrine insists that the strongest power pillar of a nation is its economic prosperity without which territorial and political sovereignty is meaningless.

It is not the Army, Judiciary, or bureaucracy that drives a country rather it is the individual entrepreneurs, partnerships or corporations that run businesses and utilize the available labor, capital and other factors of production and forms the backbone of a nation-state.

This in turn generates national income and taxes that are utilized for all developmental as well as non-developmental expenditure of the state such as the building of infrastructure; roads, bridges, dams, as well as funding for defense, debt and imports. In addition a well-balanced and flourishing economy alleviates poverty, redistributes income and promotes health, education and a free market for healthy competition.

Quaid-e-Azam was a thorough Statesman and a visionary. He despised the fact that Muslims of the sub-continent had be economically trampled and he knew that once Pakistan came into being, the nation would immediately have to address the problem of rebuilding a fractured economy that was mostly dominated by Hindus. Quaid said: “I can no more visualize a Pakistan without traders then I can without cultivators or civil servants”. Therefore, on one side he was combating the British and the Congress on a political front, all the while he was deeply concerned for the economic uplifting of Muslims for which he was lining up trusted allies from the business community. One such strong ally was Mr. Rafi Butt. Mr. Rafi Butt started his career as a young industrialist at the tender age of sixteen and through his sheer commitment and incomparable business acumen, became an astounding success.

on one side he was combating the British and the Congress on a political front, all the while he was deeply concerned for the economic uplifting of Muslims for which he was lining up trusted allies from the business community

He took over his father’s factory of surgical instruments with only 12 workers and expanded it to over 600 workers and effectively cashed in on the demand for surgical goods as World War II broke out. He modernised his factory through the import of modern equipment and machinery. The huge factory complex on Ferozepur Road, was the most well- equipped and state of the art factory in India.

Quaid-e-Azam visited this factory in 1946, and encouraged Mr. Rafi Butt who was competing against strong opposition and propaganda from the Hindu rivals.

After realising the economic backwardness of Muslims and the dire need for monetary support and revitalization, Mr. Rafi Butt diversified his business and founded the Central Exchange Bank which was the first Muslim Bank in Northern India. The bank was a remarkable success – not only be becoming self-sufficient within one year of operation – but also declaring a 5 percent dividend at the end of its first year.

Mr. Rafi Butt struggled hard with his associates from the Bank to help start an English Daily from Lahore, not only to counter Hindu propaganda against Muslims, but also propagate both their desires and concerns. Mr. Rafi Butt made handsome contributions towards this cause and invested heavily both in terms of time and currency to this effect. Perhaps his most valued contribution was that he rallied the business community, traders, and political elites through meetings and social gatherings which became the think tank for the Muslim League that gave valuable advice for economic uplift of the Muslims.

In 1942, the All India Trade Directory and Who’s Who edited by A.M Burque was published from Lahore containing the names and bio data of all prominent businessmen, industrialists, politicians and artists. It was dedicated to Mr. Rafi Butt in the following words “To, Muhammad Rafi Butt Esq, the youngest industrialist and business magnate in the province who by dint of his natural ability, business acumen and liberal outlook today not only possess huge factories and offices but commands great respect and esteem”.

In the Karachi Session of All India Muslim League in December 1943, it was decided that a Planning Committee would be setup to counteract the Muslim backwardness in education and economic disparity. Mr Rafi Butt was named as one of the six Members of the Muslim League Planning Committee and the Chairman of the Sub Committee on Mining and Metallurgy. He was the Member of the Industrial delegation to Germany in 1946 to select machinery for India which is a testament to his stature in India. Quaid e Azam remained in touch with Mr. Rafi Butt they both exchanged valuable information and advice on how to encourage entrepreneurship among Muslims.

Mr. Rafi Butt made concrete efforts to establish commercial ties with the US through extensive touring for months and studying the latest techniques, processes and procedures in industry and replicating them in the subcontinent.

On his return he received a consignment of Kelvinator refrigerators and other equipment for which he opened a showroom at the junction of Mcload Road and Hall Road.He also participated in the ILO moot at San Francisco in 1948

With the help of comrades like Mr. Rafi Butt, Quaid e Azam was able to implement his two point strategy which was to eradicate illiteracy at a rapid pace and provide technical education to scientists, technicians, doctors, and civil servants. With the help of Sir Agha Khan he was able to develop two poly technic institutions. Quaid’s answer to settling refugees was rapid industrialization. Orient airway was setup to provide valuable transport within the country.

On 1st July, 1948, the State Bank of Pakistan was opened. To Mr. Jinnah “The opening of the State Bank of Pakistan symbolized the sovereignty of the state in the financial sphere”. To utter surprise Pakistan’s first budge was a surplus one, there was a favorable balance of trade and a steady all-round improvement in the economic field. In a very short period of time Quaid-i-Azam achieved very crucial things for Pakistan. The opening of the State Bank of Pakistan; Pakistan’s own currency notes; its own airline; its independent and sound commercial and industrial policy; are some of the major economic accomplishments.

CPEC is knocking at our doorstep. Most CPEC projects now are either nearing completion or at its take off phase. It is the need of the hour for all stake holders to join hands as I believe that the next ten years are make or break for Pakistan’s economy.

The government needs to reform its governance and tax machinery to make it more business friendly. The business community has to respond accordingly by focusing on more investment in expansion and technology to become more efficient and competitive rather than relying on protection through regulatory duties and subsidies. We as Pakistanis need to believe in ourselves, trust our abilities, sharpen our skills and ensure that we make ourselves useful members of society, work hard and contribute positively towards a prosperous Pakistan.

The writer is the chairman of the Jinnah Rafi Foundation

Published in Daily Times, December 25^th 2018.