Karachi is the provincial capital of Sindh province and the largest city in Pakistan. It is also one of the largest cities in the world and is located on the northern shores of the Arabian Sea, west of the Indus River Delta. Non-governmental sources estimate Karachi's current population at about 20 million.

By the time the new country of Pakistan was formed in 1947, Karachi had become a bustling metropolis with beautiful classical and colonial European styled buildings lining the city's thoroughfares. Karachi was chosen as the capital of Pakistan and accommodated a huge influx of migrants and refugees after partition. The demographics of the city changed dramatically but it still maintained cultural diversity as new residents arrived from all parts of India. In 1958, the capital of Pakistan was moved from Karachi to Rawalpindi and then to Islamabad in 1960. This marked the start of a long period of decline in the city, marked by a lack of development. The 1980s and 1990s saw an influx of refugees from the Afghan war into Karachi. Political tensions between the Muhajir groups (descendants of migrants from the partition era) and other groups also erupted and the city was wracked with political and sectarian violence. Most of these tensions have now simmered down.

Karachi continues to be an important financial and industrial centre and handles most of the overseas trade of Pakistan and the central Asian countries. It accounts for a large portion of the GDP of Pakistan and a large proportion of the country's white collar workers. Karachi's population has continued to grow and is estimated to have passed the 20 million mark, although official figures still show a population of around 14.5 million. The current economic boom in Pakistan has also resulted in a new period of resurgence in the economy of Karachi.

Most of Pakistan's public and private banks are headquartered on Karachi's I.I. Chundrigar Road, while most major foreign multinational corporations operating in Pakistan have their headquarters in Karachi. The Karachi Stock Exchange is the largest stock exchange in Pakistan, and is considered by many economists to be one of the prime reasons for Pakistan's 8% GDP growth across 2005. During the 1960s, Karachi was seen as an economic role model around the world, and there was much praise for the way its economy was progressing. Many countries sought to emulate Pakistan's economic planning strategy and one of them, South Korea, copied the city's second "Five-Year Plan" and World Financial Centre in Seoul is designed and modeled after Karachi.

Recently, Karachi has seen an expansion of information and communications technology and electronic media and has become the software outsourcing hub of Pakistan. Call centres for foreign companies have been targeted as a significant area of growth, with the government making efforts to reduce taxes by as much as 80% in order to gain foreign investments in the IT sector.

Many of Pakistan's independent television and radio channels are based in Karachi including KTN, Sindh TV, CNBC Pakistan and Dawn News as well as several local stations.

Karachi has several large industrial zones such as SITE, Korangi, Northern Bypass Industrial Zone, Bin Qasim and North Karachi located on the fringes of the main city. The primary areas are textiles, pharmaceuticals, steel, and automobiles. In addition, Karachi has a vibrant cottage industry and there is a rapidly flourishing Free Zone with an annual growth rate of nearly 6.5%.

There are many development projects proposed, approved and under construction in Karachi city. Among projects of note, Emaar Properties is proposing to invest $43bn (£22.8bn) in Karachi to develop Bundal Island, which is a 12,000 acre (49 km²) island just off the coast of Karachi. The Karachi Port Trust is planning a Rs. 20 billion, 1,947 feet (593 m) high Port Tower Complex on the Clifton shoreline. It will comprise a hotel, a shopping centre, an exhibition centre and a revolving restaurant with a viewing gallery offering a panoramic view of the coastline and the city.

Other projects include: MCB Tower (completed), Crescent Bay Karachi (under construction), Karachi Waterfront (approved), Karachi Creek Marina (under construction), Sugarland City (approved), Dolmen Towers (under construction), I.T. Tower (approved), Buddo Island (approved), Square One Towers (under construction), Sign Tower (approved), Karachi Mass Transit System, Enshaa Towers (approved), Karachi FPCCI Tower (proposed), City Centre (proposed), Malir Expressway (proposed), Northern Bypass Industrial Area (under construction).

Source: Wikipedia. All text is available under the terms of the GNU Free Documentation License