“Yes, currently, Pakistan has many problems, but businesses succeed only when they refuse to surrender to difficulties. Instead of waiting for an opportune time, dynamic market players have a knack for finding openings to invest in any situation,” Irfan Iqbal Sheikh, Chairman, Al-Fatah chain of stores, continues to look at the future with hope.

Recently he sat down in his office in Karachi with this scribe to share his journey of 45 years in business that saw a small family enterprise morph into a major group. From a store opened in 1941 in Tollinton Market at Lahore Mall Road, today Al-Fatah chain has 32 superstores across Pakistan and is looking to expand further to 50 stores over the next two years.

In 1978 Irfan Iqbal, at a tender age of 18, joined the family business that owned two stores at the time. He assumed charge of the business in 1985. Today, besides the retail chain, the group has diversified its interests and entered pharma, agriculture products, travel and tours, electronics, sweet food designing, construction, and is working for a joint venture with a Chinese partner.

“We are initiating production of basic molecules and salts used in medicines to feed the local drug industry and enter its export market, currently dominated by India and China. It is going to be the first of its kind state-of-the-art plant to produce quality raw material for drugs for which Pakistan is currently import-dependent,” he disclosed.

‘Dynamic market players have a knack for finding openings to invest in any situation’

Without sharing the financials of AlFatah stores, he claimed that currently, his company is the sole player in the segment it serves. “We serve the niche market and deal primarily in imported crockery, food products, fitness equipment, cosmetics, etc. Our customer base is rich, ready to spend liberally for what they fancy. People also visit Al-Fatah for the experience as our stores offer a unique, sophisticated ambience.”

Mr Sheikh promised to ask his staff to share his company’s financials, but despite several reminders, it did not arrive till the filing of the report.

Categorising the retail business neatly into seven levels, he said: “At the top are boutiques dealing in select limited clientele followed by super stores (Al-Fatah), departmental stores (Imtiaz, Naheed, Macro, Metro, etc), hypermarkets, locality stores, mini marts (eg Star Mart) and factory outlets. There might be some overlapping but each target a different pool of customers.”

Explaining reasons for entering Karachi, the biggest city and the commercial hub, so late (Al-Fatah opened its door in the megacity in mid-2022), he said he was happy to arrive in the city finally though he did try several times earlier.

“We had a fair idea of the depth of the market in Karachi. We attempted many times in the past but did not succeed. At least twice, in 1993 and 1997, plans were in advanced stages but had to be rolled back, primarily for the threatening security situation in the city.” Taking about potential competitors, he mentioned Imtiaz Stores and Rainbow in Lahore.

Dismissing the impression of the state patronage behind the success of businesses, he argued that a company might start with the administration’s support, but this can’t guarantee its sustenance.

“Market punishes wrong business decisions ruthlessly and rewards apt ones generously. No business can succeed without merit for long. The right decisions at the right time are vital to staying ahead of the curve”.

Being an importer, Mr Sheikh champions free trade, but he also made a strong case for promoting industry in Pakistan. “I am not in favour of amnesty schemes, but to me, the expansion of industrial base is so crucial for the country and its future that the government should give a blanket cover to idle capital flowing towards the manufacturing sector.”

Mr Sheikh, currently the Federation of Pakistan Chamber of Commerce and Industry (FPCCI) president, wanted the government to be more receptive to instill confidence in the business community.

“Challenges are huge. No government in such circumstances can do it on its own. It’s about time the government digests this fact and invites other stakeholders to sit at the policy drafting table. At FPCCI we have invested in the Economic Policy Board to equip ourselves for more meaningful participation in policy debates. The government must cease the temptation to take unilateral decisions on the economy as it will erode the business confidence”.

Published in Dawn, The Business and Finance Weekly, September 19th, 2022