Karachi is the financial and commercial capital of Pakistan; it accounts for a lion's share of Pakistan's revenue generation. It generates approximately 53.38% of the total collections of the Federal Board of Revenue, out of which 53.33% are customs duty and sales tax on imports. Karachi produces about 30 percent of value added in large scale manufacturing and 25% of the GDP of Pakistan. In February 2007, the World Bank identified Karachi as the most business-friendly city in Pakistan.

In line with its status as a major port and the country's largest metropolis, it accounts for a lion's share of Pakistan's revenue generation. According to the Pakistan Federal Board of Revenue's 2006-2007 year book tax and customs units in Karachi was responsible for 46.75% of direct taxes, 33.65% of federal excise tax, and 23.38% of domestic sales tax. Karachi also accounts for 75.14% of customs duty and 79% of sales tax on imports. Therefore, Karachi generates collects a significant 53.38% of the total collections of the Federal Board of Revenue, out of which 53.33% are customs duty and sales tax on imports (Note: Revenue collected from Karachi includes revenue from some other areas since the Large Tax Unit (LTU) Karachi and Regional Tax Offices (RTOs) Karachi, Hyderabad, Sukkur & Quetta cover the entire province of Sindh and Baluchistan).

I I Chundrigar Road (formerly McLeod Road) was once the main business district of Karachi, but in recent years many businesses have moved to other areas such as Sharah-e-Faisal, MT Khan road, Mai Kolachi, Clifton and Defence. The traffic congestion in I.I. Chundrigar Road has made it difficult to travel to the center of the city in a timely manner.

Sharah-e-Faisal has seen a spate of building with high rises, show rooms and institutions. Its proximity to Karachi Airport has been a significant factor.

The recent trend of ICT (information and communications technology), electronic media and call centers has become a significant part of Karachi business hierarchy. 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 per cent in order to gain foreign investments in the IT sector.

Karachi also has a huge industrial base. There are large industrial estates on most of the fringes of the main city. The main industries are Textiles, Pharmaceuticals, Steel, and Automobiles. Apart from these, there are many cottage industries in the city as well. Karachi is also known as software outsourcing hub of Pakistan. It also has a rapidly flourishing 'Free Zone' with an annual growth rate of nearly 6.5 per cent. An expo center has also been set up in Karachi and is now available to host many regional and International exhibitions.

Dozens of new manufacturing units are also being built near the Pakistan Steel Mill. Farm businesses line the SuperHighway route. SITE Manghopir is the biggest industrial area of Pakistan with more than 4000 factories. New Industrial zones have come in the past like Landhi, Korangi, FB Area, North Karachi and Port Qasim.

Karachi is also home of major automobile manufacturing companies. Toyota is in the process of increasing production capacity to over 120,000 units per annum. Suzuki Motor Company is also located in Karachi. The manufacturing plant located in Bin Qasim has a production capacity of 150,000 vehicles per year. Among others, Millat Tractors, Adam Motor Company, Daihatsu, HinoPak Buses and Trucks manufacturing plants are also located in Karachi.