.

 
OBSTACLES FACED BY THE LOGISTICS INDUSTRY
.

ISSUE # 4 ----- Jan 26 - Feb 1, 2015

.

Logistical support in Pakistan is more expensive than neighboring countries. Despite the fact that fuel prices are on its all-time low, charges have not reduced. Inefficiencies in the system from the point of origin to the point of discharge results in accumulation of cost. One of the factors in Pakistan is poor documentation and delays when it comes to clearance and shipment of goods. Each bottleneck adds to the overall cost of transportation. These delays become crucial when it comes to perishable items. Additional cost includes the "bhatta" mafia and policemen who would find a way to extort money from the transporters........

.
 

 

PAGE TOP STORIES

.
EXCLUSIVE INTERVIEWS
& PAGE SPECIAL REPORTS

.

ACM GOLD & FOREX TRADING HAS OFFICES IN 17 COUNTRIES
INTERVIEW WITH IRFAN PARDESI, CEO ACM GOLD & FOREX TRADING
.
.

The world goes digital and the companies around the globe are moving on applications. If you want to know about a company and its products then you can access the desired company in fraction of seconds by using a smart phone. We believe on technology-based work. Most of the companies engaged in online trading to fast the pace of work and to save valuable time. But still many companies in many countries of the world are engaged in conventional trading, which requires more efforts and time. Unluckily, many companies in Pakistan are still engaged in conventional trading, which could be one of the reasons behind the low performance as compare to other companies, which were shifted to online trading. ACM Gold & Forex Trading Pty is making applications for many companies functioning in other countries...

.
.
.
TRANSPORT AND LOGISTICS VITAL FOR GROWTH OF PAKISTAN TRADE
INTERVIEW WITH SAYYID MANSOOB HASAN, AN ANALYST
.
.

In the federal budget for the year 2014-15 a total of Rs1,175 billion have been allocated for PSDP as against Rs1,155 billion allocated in the year 2013-14. Out of this Rs525 billion have been kept for Federal PSDP. Share of transport and logistics out of this allocation is not identifiable.
The share of Federal Ministries/Divisions in 2014-15 PSDP is Rs296 billion. Out of this only Rs43.8 billion (Aviation 1.402, Communications other than NHA 0.191, Ports and shipping 2.576, Railways 39.6) are identifiable for transport and logistics.
Further Rs111.6 billion have been allocated to NHA, which is a direct allocation for transport and logistics....

.

.

OIL PRICES
OIL WEEKLY BASKET PRICE

 (US Million $)
PERIOD PER BARRELS
Jan 23, 2015 43.30
Jan 16, 2015 42.65
Jan 9, 2015 46.22
Jan 2, 2015 52.65
Dec 26, 2014 56.17
Dec 19, 2014 56.26
Dec 12, 2014 61.32
Dec 5, 2014 66.69
Nov 28, 2014 72.67
.

PREVIOUS ISSUES

.

.

PAKISTAN WEATHER
3 DAYS FORECAST

  MIN MAX HUM% FORECAST.
KARACHI
TODAY 12 24 44 sunny
TOMORROW 10 24 33 sunny
DAY AFTER 11 24 24 sunny
LAHORE
TODAY 5 17 77 sunny
TOMORROW 4 16 76 cloudy
DAY AFTER 3 16 77 cloudy
ISLAMABAD
TODAY 3 16 72 cloudy
TOMORROW 2 13 74 cloudy
DAY AFTER 1 12 79 cloudy

updated: Sun-Tue, Jan 25 - 27, 2015

.

COVER STORY

.
PAKISTAN SHOWS BIGGEST GAINS IN GLOBAL LOGISTICS INDEX
.

.

Pakistan leaped seven spots in a closely watched logistics industry ranking of the world’s 45 leading emerging markets.
Pakistan advanced to No. 25 in the 2015 Agility Emerging Markets Logistics Index, an annual data-driven ranking accompanied by a separate survey of nearly 1,000 global logistics and supply chain executives. Colombia, which climbed four spots to No. 22, showed the next biggest gain in the Index.
The Index, now in its sixth year, ranks emerging markets based on their size, business conditions, infrastructure and other factors that make them attractive for investment by logistics companies, air cargo carriers, shipping lines, freight forwarders and distribution companies.
The Pakistani economy has been buoyed by falling energy prices, a growing service sector, increased foreign investment and optimism that fractious political institutions and parties are prepared to come together in opposition to extremism. Pakistan’s central bank chief recently predicted economic growth would nearly double to 8% in 2015..

.
 

.
.
COVER STORY
.
OIL PRICE CRASH HELPS SBP TO BRING INTEREST RATE TO SINGLE DIGIT
PRIVATE SECTOR CREDIT DEMAND TO GROW – INVESTMENT CLIMATE TO IMPROVE
.

 

In the wake of worldwide oil price collapse that helps to curtail inflation rate, the State Bank of Pakistan (SBP) has reduced the policy rate by 100 basis points from 9.5 percent to 8.5 percent effective from 26th January 2015.
This was announced by the SBP Governor Ashraf Mahmood Wathra at a crowded press conference on Saturday where he indicated the positive economic indicators helped in bringing down the interest rate to

7-8 year low, which will be an attraction for the private sector and the investment climate in the country.
Mr. Wathra said that some of the key macroeconomic indicators had improved further since the last Monetary Policy decision of November 2014. "CPI inflation and its expectations continue to follow a downward trajectory.
In the last two months of November and December 2014, trade deficit has declined, though it has increased in H1-FY15 when compared to H1-FY14. Moreover, considerable foreign exchange inflows have contributed in maintaining an upward trajectory in foreign exchange reserves.".....

.
.
COVER STORY
.

LOGISTICS AND INFRASTRUCTURE CAPACITY – THE BACKBONE OF ECONOMIC DEVELOPMENT

.

An efficient and cost-effective logistics and infrastructure system not only generates economies of scale, but also creates a favorable global image of an economy. And a favorable image means more global linkages, more international business and more foreign direct investment. On domestic side too, sound logistics and infrastructure mean enhanced mobility of goods and services, which is so important for the marketing system to operate efficiently.

 

Logistics and infrastructure are likely to be as sound as the economy of a nation. The health of the system directly reflects on the capacity and vision of a country’s economic managers. An inefficient system not only hinders the growth process but also carries a price tag of lost economic opportunities. Pakistan looses around 5% of GDP every year on account of a wanting infrastructure system........

.
.
COVER STORY
.
EMERGING ASIAN ECONOMY – ‘MARITIME PERSPECTIVE’
.

 

It, was interesting to see the YICT at Shenzhen Port auto gate project, built on the electronic data inter change platform and the optical character recognition portal, the innovative 70 automatic in gates and out gate lanes enable precise transmission of information and rapid direction to yards, thus improving the terminals operational efficiency, ensuring timely departure of ships, within 8 hours. The port has Shenzhen-Yantian is an integrated bonded area, with off dock ware houses too. YICT cranes are equipped with high pressure sodium lamps, which consume less electricity than conventional lamps.

The latest LED lamps are using 75% less electricity. The Shenzhen Port has 16 deep water container berths, 74 gantry cranes, 200 yard gantry cranes, with total berth length of 7885 meters. The world mega box ships are calling to this port which caters mainly to export from China..........

.
.
.
.
COVER STORIES
.
.
.

SHIPPING
NEWS

.

EGYPT, ABU DHABI DEVELOPING MARITIME TRANSPORTATION
The Red Sea Port Authority signed an agreement along with the general authority for Abu Dhabi Ports to boost the relations between Egypt and UAE.
The agreement is also aimed at developing both countries’ maritime transportation system, according to a press statement.
Minister of Transportation Hany Dahi said the agreement seeks to form new joint companies between both sides to encourage specialised companies’ investments. This would be focused on maritime transportation and ports development, and helping to pump in more investing opportunities.....

.
.
COVER STORY
.
CHINA’S PROWESS IN INFRASTRUCTURAL DEVELOPMENT CAN BE A BEST MODEL FOR PAKISTAN
.

.

The recent infrastructure developments in China have astounded the world. About 60 percent of the world’s total new structures are being built here. China is not only just developing roads, but also dams, airports, railway tracks, hospitals, schools, colleges, universities, libraries, research centers, sports complexes, shopping areas, factories, agriculture farms and dairy farms and housing. China’s infrastructure development is focused on providing jobs for its people and through this; it has reduced poverty in the country. The increased employment and earning opportunities, wages are rising in China, increasing the living standards of Chinese.......

.
.
COVER STORY
.
OBSTACLES FACED BY THE LOGISTICS INDUSTRY
.

.

Pakistan being primarily an import-based country and is highly reliant on logistics to move goods from one part of the country to another. There are many companies from multinationals to private limited to general contractors who are involved in the logistics industry. It is estimated that value of Pakistan’s logistics sector includes transportation and warehousing is US$530 million. Almost 91 percent of transportation is done through road. The biggest obstacle in Pakistan is poor road and rail infrastructure. Rail infrastructure is surrounded with commercial activity, pedestrian movement, no gates or signals to indicate upcoming trains, which pose a hazard......

.
 

RESEARCH CORNER

.
.

SMEs FUNCTION AND ISSUES IN PAKISTAN

.

.

Developed and developing states have recognized the significance of Small Medium Enterprises (SMEs) which play a major role in the progress of any economy. SME’s are the beginning point of growth in the economies towards industrialization as well as presenting important effect on the tax revenue, income distribution and employment. World Bank revealed that the SME’s are normally more productive than large firms and added that World Bank hopes that SME’s can grow the economic development and growth........

.
.

CAPITAL MARKETS
.
.
EXPORTS
.
PAKISTAN CAN DIVERSIFY EXPORTS UNDER GSP-PLUS
.

.

Lars Gunner Wigemark, Ambassador of EU and the leader of EU delegation while highlighting significance of GSP-Plus status granted to Pakistan said that GSP-Plus is already working with an increase $1 billion or Rs100 billion in first year alone. "We must now make sure that this positive trend continues by promoting GSP-Plus throughout the business community."
In his key note address at the launch of GSP-Plus Guide in national language Urdu, Lars Gunner said that this guide in local language is to enable Pakistani exporters to know all about GSP advantages and pros and cons to enter into the European market......

.
.
COVER STORY
.
ROBUST INFRASTRUCTURE A MUST FOR ACCELERATING GDP GROWTH RATE
.

.

The recent POL crisis in the country has highlighted two points: 1) the shortage was an outcome of gross mismanagement and 2) the country suffers from an acute shortage of POL storage facilities. If one looks around shortage of storage facility for any product is a common phenomenon, added to this is highly inefficient logistic facilities. While providing efficient storage and logistic facilities is the prime responsibility of the government, so far private sector has been complaining rather than taking any initiative at its own..........

.
 
MEMBER'S LOGIN
PAGE ID:
PASSWORD:
Remember me
 
Sign Up  l  Forgot Password

.
INDIA IN THE NEWS

DAVOS: Confident about foreign and domestic investors participating in a big way in the Indian growth story, union minister Piyush Goyal today said the country's power sector is set for $250 billion investment across different segments.
Speaking here on the sidelines of the World Economic Forum (WEF) meeting, Goyal said his message to foreign investors is that India story is getting stronger and back to its high growth phase. "There is a lot of excitement among investors here about the ambitious target that Prime Minister Narendra Modi and the Government of India have set to ensure 24x7 power for all households as also for the industry and the farmers," Goyal told PTI in an interview here.
....

.


IN THE NEWS

The Economic Co-ordination Committee (ECC) of the Cabinet has approved a subsidy of Rs 6 billion for the export of 1.2 million tons of surplus wheat available with Punjab and Sindh governments, source said to research analyst-PAGE. A participant of the meeting, who requested anonymity, said that Ministry of Food Security and Research had proposed the export of 3 million tons but the ECC meeting chaired by Finance Minister Ishaq Dar decided to allow export of 1.2 million tons. He further stated that the meeting did not allow export of proposed quantity in case of future domestic needs.......

.

GULF NEWS

TEHRAN - Iran and China agreed to boost cooperation in greenhouse gardening, fishery, animal husbandry, and poultry farming. Hojjati, heading a delegation of Iranian economic entrepreneurs, traveled to China on Monday to participate in the first seminar on Iran-China joint investment and trade.
Trade between Iran and China amounted to $47.5 billion from January to November 2014, a 36 percent rise year on year, according to the Chinese General Administration of Customs. China exported $22 billion of products to Iran in the eleven-month period, an 87 percent rise compared to $11.7 billion in the same period in 2013........

.

ANNOUNCEMENT

Pakistan Mercantile Exchange (PMEX) held a briefing session on Murabaha contract, a product exclusively designed by the Exchange for the Islamic Financial Institutions (IFIs). The session was attended by senior officials from various IFIs such as Al Baraka Bank, Bankislami Pakistan, Dubai Islamic Bank, Habib Metropolitan Bank, MCB Bank, Meezan Bank, Standard Chartered Bank, UBL Ameen and National Bank of Pakistan. PMEX Shariah advisor, Mufti Hassan Kaleem was also present at the occasion.......

.

COVER STORY
.
THE VITAL WAYS OF ATTRACTING FOREIGN INVESTMENT
.

.

Infrastructure development and logistics is one of the vital ways through which any country can attract foreign investment and help achieve sustainable development for the growth of an economy. Considering the case of Pakistan, the focus on infrastructure while given importance isn’t always the most important aspect to consider since there are other issues the country has to deal with. There are the political sit-ins in the country, which have negatively impacted the economy, however, the Prime Minister Nawaz Sharif has time and again stated that despite the issue, work has constantly been done to put the economy back on the right track.......

.
.
.

EXCHANGE RATES
Pakistan Open Market Rates

BUYING SELLING
US $ 101.6 101.85
UK POUNDS 152 152.25
KUWAITI DINAR 341.75 342
SAUDI RIYAL 27 27.25
UAE DIRHAM 27.7 27.95
CANADIAN DOLLAR 81.5 81.75
EURO 114.5 114.75
JAPANESE YEN 0.83 0.94

MORE RATES

.
.
COVER STORY
.
THE SIGNIFICANCE OF PAK-CHINA COOPERATION IN INFRASTRUCTURE DEVELOPMENT
.

.

The importance of Pak-China cooperation in infrastructure development can be best understood if one goes through the Indian opposition of Chinese support for Gwadar port. Although, India itself is helping Iran in construction of Chabahar port, located at a distance of around 70 kilometers from Gwadar. It seems that India is fully aware of the fact that Pakistan offers the shortest and cost effective route to Central Asia via Afghanistan. India is constructing Chabahar not only to undermine Pakistan’s importance but also for establishing its hegemony in the Indian Ocean. .....

.
.
COVER STORY
.
GWADAR PORT CAN BOOST INFRASTRUCTURE DEVELOPMENT IN BALOCHISTAN
.

Balochistan is far behind with other provinces when it comes to the infrastructure development in the province. The absence of infrastructure is the single most important reason that discourages investment for economic development of the province. Gwadar port, however, gives hope for a massive development of infrastructure and logistics in the province. Last year, Prime Minister Nawaz Sharif announced a massive infrastructure development package worth up to Rs18 billion for Balochistan.......

.
.
9Jan15 16Jan15 23Jan15
NASDAQ

4,736.19

4,570.82

4,750.40

H.SENG

23,919.95

24,103.52

24,850.45

SENSEX

27,458.38

28,071.05

29,278.84

NIKKEI

17,197.73

16,864.16

17,511.75

CAC-40

4,254.86

4,323.20

4,616.03

DAX

9,833.17

10,032.61

10,573.91

FTSE

6,555.05

6,453.58

6,811.66

S&P

2,062.14

1,992.67

2,063.15

DJIA

17,907.87

17,320.71

17,813.98

.

K
I
B
O
R

R
A
T
E

.

As On Jan 23, 2015

TENOR

BID

OFFER

1 Week

9.14

9.64

2 Week

9.01 9.51

1 Month

8.96 9.46

3 Month

8.83 9.08

6 Month

8.82 9.07

9 Month

8.77 9.27

1 Year

8.75 9.25

2 Year

8.89 9.39

3 Year

8.98 9.48
.
.
PAGE RESEARCH
.
TCS LOGISTICS DIVISION SET TO TAKE SUPREMACY IN SUPPLY CHAIN SOLUTIONS
.

.

TCS is respected as an innovative, professional, profitable and knowledge-based services/logistics enterprise. TCS embeds Internet-based expertise into its internal operating arrangements and as business explanations for clients; with client, shareholder and employee interests at the basic of its operations; demonstrating a clear concern for good corporate citizenship and ethical conduct; with the objective of boosting into a global and regional player. TCS attainments have led to a case study, undertaken through Harvard Business School during 2003 for 'International Entrepreneurship' course of MBA. TCS has attained various milestones through developing into a business replica that continues to grow stronger.......

.
 
BUSINESS QUOTATIONS
.

Today's leading real-world retailer, Wal-Mart, uses software to power its logistics and distribution capabilities, which it has used to crush its competition.
MARC ANDREESSEN
I don't mind if somebody texts me but I'm not a big texter, the things are too small. I don't mind if they text, '7 o'clock,' that's fine, that's logistics but, 'What's up?' Get real! Pick up a phone!
PENNY MARSHALL
I loved being on the field playing and teaching softball. I didn't like the fact that a camp had my name on it and I didn't know the logistics of what was going on. I wanted to make sure I was involved in a camp that did things right.
JENNIE FINCH
People don't understand the logistics of advertising. To have the ads purchased and run, you need to have a series of products that work together.
SUSAN WOJCICKI
Logistics is the ball and chain of armored warfare.
HEINZ GUDERIAN
I do not question the power of our weapons and the efficiency of our logistics; I cannot say these things delight me as the y seem to delight some of our officials, but they are certainly impressive.
J. WILLIAM FULBRIGHT
There is a lot of work just in terms of traveling and logistics and people and gear and all that kind of stuff. But I never really have problems playing music. That never seems like work.
JAMES IHA
I've never presented. The logistics of that is a challenge.
MICHAEL RITCHIE
Cops and robbers resemble each other, so there's not a lot to learn in terms of learning the logistics of committing the crime or investigating the crime.
ANDRE BRAUGHER

.
.

.
.
OIL SCENARIO
.
OIL PRICE PLUNGE: A THREAT TO QATAR’S AMBITIOUS DEVELOPMENT PROGRAMS

.

 

The unremitting pressure exerted by falling oil prices has sent a wave of concern across an otherwise robust economy. The breaking of the barrier of $50 and a further slide to a less than $45 level has upset even a conservative 2013-14 economic outlook forecast according to which the fiscal surplus was estimated to come down from 8.1% of GDP in 2013 to 4.7% of GDP in 2014.

Ironically, the estimate was based on a "conservative" oil price tag of $65 a barrel. The drop in ratio was forecast on an unusual widening of development expenditure program rather than any hyper oil-price-plunge. It’s sure a blessing to be a strong hydrocarbon economy in this energy-dependent age of human development, but the highly speculative market economy system is always there to spring unpleasant surprises consigning the best of the economic estimates to the trash bin.........

.
 
.

CURRENCY CONVERTER
(Open Market)

 EURO:

 US DOLLARS:

 UK POUNDS:

 Japanese YEN:

 SAUDI RIYAL:

 UAE DIRHAM:

 KUWAITI DINAR:

 CANADIAN DOLLARS:

 PAKISTANI RUPEES:

.

THIS WEEK TOP STORIES

.

CONSUMERS TO BEAR RS55BN EXTRA COST FOR POWER SECTOR INEFFICIENCY (DAWN NEWS)

.

SAXO BANK FACES £70M LOSSES AFTER SWISS CURRENCY TURMOIL (BBC NEWS)

.

PRIVATE SECTOR TO BE KEY ENGINE OF JOB CREATION FOR NEXT 5 YEARS (THE NATION)

.

RAILWAYS PROJECT: 72.5 PERCENT COST ESCALATION WITNESSED (BUSINESS RECORDER)

.

GCC SURPLUSES CAPABLE OF WITHSTANDING OIL SLUMP (GULF NEWS)

.

ARRIVAL AND SALE OF IRANIAN PETROL, DIESEL DECLINE (DAWN NEWS)

.

ECC OKAYS EXPORT OF WHEAT, BANS BY-PRODUCTS IMPORT (THE NATION)

.
.
.
CAPITAL MARKETS
.
STOCK MARKET ROUND UP
.

The current account balance for December registered a minor surplus of US$7 6million compared to a deficit of US$568 million in November last year. The surplus for the month came on the back of 1) continued rise in remittances depicting a 19.8%MoM increase, 2) improvement of 10.7%MoM/13.8%YoY in the trade deficit due to an up stick in exports to US$2.29 billion, up by 22.7%MoM. Food and Textile sector outshined among exports with Food registering growth of 17%MoM to US$470 million and Textile exports up by 27% MoM to US$1.22 billion. However, for 1HFY15, the current account deficit rose to US$2.36 billion from US$2 billion in 1HFY14, but remained stable as a percentage of GDP at 0.98%..........

.

ADVERTISEMENT

Online Subscription
Banner Tariff
Hard Copy Subscription
Advertisement Rates

USEFUL INFORMATION'S

SERVICES

About Us
Feedback
Contact Us
Sign Up

Financial Reports
Interest Rates
Inflation
Demographic Indicators
Banks In Pakistan
Exchange Rates
Old Cover Stories
Weekly Overview Of Forex, Gold And Oil

This site is best viewed with Internet Explorer
e- mail to webmaster@pakistaneconomist.com for questions or comments about web site
copyright © 1999 Pakistan & Gulf Economist - - - Last modified: Jan 15th , 2013