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A new wave of billionaires is emerging from the East, but Pakistan has not been as fortunate in this regard. Based on the market capitalization of listed companies, none of the major families in Pakistan are billionaires in USD terms. In fact, the combined market value of the Nishat Group’s holdings is less than $500 million, even though their listed companies, including MCB Bank, DG Khan Cement, and power plants owned by the Mian Mansha family, have a collective market capitalization of below $1.5 billion. Similarly, the Dawood Group, owned by the Hussain Dawood family, also has holdings valued at less than $500 million.

On the other hand, the Bestway Group, led by Sir Anwar Pervaiz, has listed holdings valued at $1.4 billion, while the Lucky Group of the Sohail and Ali Tabba families, is nearing the $1 billion mark. The largest group in terms of listed assets is the Fauji Group, with assets worth $1.5 billion.

This highlights how minimal the documented and listed wealth accumulation by big businesses is in Pakistan when compared to neighboring India.

The highest market valuation belongs to Fauji Group companies, with their five listed entities—one petroleum, two fertilizers, one food, and one cement company—valued at $3.3 billion. Based on its holdings, Fauji Group’s worth is $1.5 billion.

Second is the Dawood Group, whose eight listed companies (mainly Engro) have a combined value of $2.1 billion. However, the group’s holdings in these companies are smaller, with a computed value of $440 million.

Third is the Bestway Group, with two listed companies—a bank and a cement company—that have a market capitalization of $1.8 billion. Due to a higher concentration of shareholding, the group’s holdings are valued at approximately $1.5 billion. Sir Anwar Pervaiz, who is not a resident of Pakistan, acquired these companies with wealth earned outside the country.

Next in line are two homegrown groups: Nishat and Lucky.

The Nishat Group, owned by Mian Mansha and his family, has a combined market capitalization of $1.5 billion. The group has nine listed companies, including a major bank (MCB), four power plants, two textile firms, an insurance company, and a cement company. Two-thirds of the group’s valuation comes from MCB, while the remaining eight companies have a combined market cap of less than $500 million.

In 2008, when MCB sold 15 percent of its shares to Maybank for around $700 million, the bank’s total value was $4.5 billion (4.5 times its current value). Around that time (in 2010), Forbes estimated Mian Mansha’s net worth at $1 billion. Given MCB’s current market cap, Mian Mansha’s net worth must have fallen significantly since then. It is also important to note that three of Nishat Group’s major private businesses—automobile, dairy, and real estate—are valued at their net present value within one of the listed companies. Therefore, the main businesses based in Pakistan are already factored into this valuation.

The fifth group is Lucky, which is a growing conglomerate. The combined market capitalization of its three listed companies (cement, chemicals, and textiles) stands at $1.3 billion, with the group’s holdings amounting to $935 million. This group has been aggressive in recent years and has gained significant value. The Tabba family’s worth, based on listed assets, is now almost equal to the combined net worth of the Mian Mansha and Hussain Dawood families.

This analysis is strictly based on listed companies and their current market capitalization. Some of the owners may have private assets within and outside Pakistan, which may not be fully reflected here. Additionally, the valuation of certain companies, such as Nishat Mills (part of the Mian Mansha Group), may be understated. However, even with these considerations, apart from the Tabba family, no other family in Pakistan qualifies as a billionaire today (since the Fauji Group is not a family-owned entity and Sir Anwar Pervaiz is not strictly local).

Comments

200 characters
Imran Samad Oct 01, 2024 09:45am
The culture of doing business in this country has yet to be converted from ancient merchant style into modern corporate will require a little long than rest of the World.
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KU Oct 01, 2024 11:38am
BR being kind as well as careful, understandably. Everyone had a glimpse of our billionaires during Panama papers, it was quickly nipped. Truth becomes a nation, lies unbecoming. Criminals galore.
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Abdul Jabbar Oct 01, 2024 12:28pm
Most of billionaires are only paper billionaires .
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Aamir Oct 01, 2024 05:16pm
The nationalization plan by the PPP govt in 70s started the rot when many business families left Pakistan. Similarly very high taxation today will see shift of investment including real estate abroad
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Az_Iz Oct 01, 2024 05:40pm
In other countries the wealthy are celebrities. In this country,they are seen as villians.People expect the rich to give their wealth away,even though handing out money will not make the poor,richer.
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Az_Iz Oct 01, 2024 05:44pm
In other countries,the wealthy are celebrities. In this country, the wealthy are despised. It is the wealthy, who build the economy. They should be welcomed.
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Az_Iz Oct 01, 2024 06:02pm
The savings rate in Pakistan has always been very low.There is no willingness to save and accumulate wealth.When someone else does accumulate wealth, he is seen as a villian.
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Az_Iz Oct 01, 2024 06:09pm
If everyone saves money to get ahead, then they will appreciate others who get wealthy.If most people want to just spend and live it up,then anyone who saves & becomes wealthy is despised.
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Az_Iz Oct 01, 2024 06:12pm
If the wealthy are despised,and want the rich to give away their wealth,the rich will hide their wealth outside the country instead of investing it in the country. The country will loose.
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Az_Iz Oct 01, 2024 06:16pm
Appreciate the rich & they may bring and invest the money in the country and create jobs.Jobs will bring prosperity.Despising the rich & wanting them to give away their money will not bring prosperity
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Anonymous Oct 01, 2024 07:11pm
Dawood and Mansha next generation has already left the country and so have many Tabba’s. Who will invest? Who will expand? It is not only middle class leaving the country.
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Aam Aadmi Oct 01, 2024 08:01pm
I am surprised at not seeing any comment on 'The largest group in terms of listed assets is the Fauji Group, with assets worth $1.5 billion' or has BR deleted such comments? If so, why?
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HashBrown® Oct 01, 2024 08:12pm
In hindustan there are plenty more billionaires - yet it still ranks below Pakistan when it comes to wealth inequality. The mark of a successful nation is how it looks after its poor, not its rich...
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Orbital Chimps Oct 01, 2024 08:18pm
If you have money, you are prime target of criminals sitting in public offices. This is one and only reason why there are missing billionaires in Pakistan.
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Az_Iz Oct 01, 2024 09:26pm
@HashBrown®, so true. Income inequality is also a factor.
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Muqarrab Qayyum Oct 01, 2024 09:48pm
@Az_Iz , excellent comment
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Imran Sarr Oct 02, 2024 12:56pm
Wealth generated via corruption cannot be declared, otherwise I am sure there are many billionaires in the country.
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KU Oct 02, 2024 12:59pm
@Az_Iz , issue is not celebrating the wealthy, point is how have our leaders/elites/institutions become wealthy when Pakistan is bankrupt? Surreal, laws protects/hides leaders/elite from public info.
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Ch K A Nye Oct 02, 2024 03:24pm
Awww... Missed out on the wealthiest families who just happens to be the PDM 2.0.
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