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
& PAGE SPECIAL REPORTS
ACM GOLD & FOREX TRADING HAS OFFICES IN 17 COUNTRIES
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
INTERVIEW WITH SAYYID MANSOOB HASAN, AN ANALYST
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
Further Rs111.6 billion have been allocated to NHA, which is a
direct allocation for transport and logistics....
PAKISTAN SHOWS BIGGEST GAINS IN GLOBAL
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
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..
OIL PRICE CRASH HELPS SBP TO BRING INTEREST RATE TO SINGLE
CREDIT DEMAND TO GROW – INVESTMENT CLIMATE TO IMPROVE
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.
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.".....
LOGISTICS AND INFRASTRUCTURE CAPACITY – THE BACKBONE OF
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
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........
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..........
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
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.....
CHINA’S PROWESS IN INFRASTRUCTURAL DEVELOPMENT CAN BE A BEST
MODEL FOR PAKISTAN
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.......
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......
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
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
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..........
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.......
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........
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
VITAL WAYS OF ATTRACTING FOREIGN INVESTMENT
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.......
SIGNIFICANCE OF PAK-CHINA COOPERATION IN INFRASTRUCTURE
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. .....
GWADAR PORT CAN BOOST INFRASTRUCTURE DEVELOPMENT IN
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
As On Jan 23, 2015
TCS LOGISTICS DIVISION SET TO TAKE SUPREMACY IN SUPPLY CHAIN
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
Today's leading real-world retailer,
Wal-Mart, uses software to power its logistics and
distribution capabilities, which it has used to crush its
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!
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.
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.
Logistics is the ball and chain of armored warfare.
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
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
I've never presented. The logistics of that is a challenge.
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.
PRICE PLUNGE: A THREAT TO QATAR’S AMBITIOUS DEVELOPMENT
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
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
CURRENCY CONVERTER (Open Market)
THIS WEEK TOP STORIES
CONSUMERS TO BEAR RS55BN EXTRA COST FOR POWER
SECTOR INEFFICIENCY (DAWN
SAXO BANK FACES £70M LOSSES AFTER SWISS CURRENCY
PRIVATE SECTOR TO BE KEY ENGINE OF JOB
CREATION FOR NEXT 5 YEARS (THE
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%..........