.

 
ISSUES HAMPERING INDUSTRIALIZATION IN PAKISTAN
.
ISSUE # 43 ----- Oct 27 - Nov 2, 2014
.

Pakistan has all the potential to grow as a developed industrial nation having rich natural resources base and this sector can bring structural changes in the pattern of foreign trade of the country. The further growth and expansion of this sector can resolve economic problems apart from putting the country on road to progress and prosperity. Sadly, our governments remained far behind in resolving major issues hitting the industrialization growth in the country include growing power crisis, chronic energy shortage, high interest rate, administrative bottlenecks, bad governance, lack of institutional framework, political wrangling and worsening law and order situation.........

.
 
 
 

PAGE TOP STORIES

.
EXCLUSIVE INTERVIEWS
& PAGE SPECIAL REPORTS

.

EXPANDING FINANCIAL INCLUSION TO BUILD UP AGRO BASED INDUSTRIES IN THE COUNTRY SIDE
SBP EYES DIGITAL FINANCIAL INCLUSION
.
.

Governor State Bank of Pakistan Mr. Ashraf Mahmood Wathra has said that mobile money landscape has proved a viable channel for the un-served and underserved masses to access financial services with minimum know-your-customers (KYC) requirements.
A robust environment of interoperability in branchless banking shall benefit all participants in the Payments ecosystem. End users, including consumers, merchants, governments, and other types of enterprises would find it easier to make and accept payments. Providers to these end users, including banks, networks and other service providers shall capitalize on each otherís strengths in interoperable systems that they may not be able to achieve with closed loop (or non-interoperable) systems..
............

.
.
.
INDUSTRIALIZATION IS A KEY TO ALLEVIATE POVERTY, BREAK VICIOUS CIRCLE OF UNDERDEVELOPMENT
.
.

Liberal and pro-business policies help lay the foundation of industrial development, while promotion of trade activities particularly with the regional countries is vital for industrial growth.
The fundamental goals of long-term structural adjustment in developing countries are to enhance efficiency, achieve equity, and expand the stock of physical and human capital. For under developed countries progress depends upon the ability to trade relatively freely with the rest of the world, and even large economies, if cut off from international trade, would lack stimuli for efficient industrial development......

.
.

OIL PRICES
OIL WEEKLY BASKET PRICE

 (US Million $)
PERIOD PER BARRELS
Oct 17, 2014 83.53
Oct 10, 2014 88.56
Oct 3, 2014 92.33
Sep 26, 2014 94.25
Sep 19, 2014 95.09
Sep 12, 2014 96.19
Sep 5, 2014 99.05
Aug 29, 2014 99.79
.

PREVIOUS ISSUES

.

.

PAKISTAN WEATHER
3 DAYS FORECAST

  MIN MAX HUM% FORECAST.
KARACHI
TODAY 24 38 21 sunny
TOMORROW 23 37 26 sunny
DAY AFTER 23 34 33 cloudy
LAHORE
TODAY 18 31 54 sunny
TOMORROW 18 31 51 sunny
DAY AFTER 18 31 50 sunny
ISLAMABAD
TODAY 16 28 55 sunny
TOMORROW 16 28 56 sunny
DAY AFTER 15 27 57 sunny

updated: Sun - Tue, Oct 26 - 28, 2014

.
PAGE REPORT
.
AMAN AMBULANCE SERVICE BEST ACROSS ASIA
.

Aman Ambulanceís 1021 service, Karachiís very own yellow ambulance, was awarded the "Asian Emergency Medical Services (EMS) Award" based on innovation, scalability, national and regional impact and community involvement.
The award recognizes the contributions of Aman Healthís EMS services in delivery of and promotion of life saving services to the people of Karachi.  . Professor Hideharu Tanaka, Chairman of the Asian EMS Council, called Aman Ambulances "the leading light in the EMS sector across Asia".
...........

.
 

.
.
COVER STORY
.
INDUSTRIALIZATION CAN BOOTSTRAP ECONOMY AND INDUCE CULTURE OF SELF-RELIANCE
INTERVIEW WITH MR IFTIKHAR VOHRA, PRESIDENT KCCI
.

 

The countryís economy and industry will find it difficult to achieve the growth target that its managers have set for themselves, until industries are provided a growth-oriented operating environment, and until the strategies mutually laid out by the public and private sectors are diligently implemented and executed. The industrial sector is one of the core components of Pakistanís domestic sector. Unfortunately, this sector has failed to substantially increase its share in the economy where it has contributed more or less at an average of 21 percent to the national GDP since FY2006.

This should be a cause of concern for the national economic managers and industrialists. Pakistan would not be able to bring about a sustainable turnaround in its economy by continuing to rely heavily upon its services sector alone. Surely, urgent steps need to be taken to invigorate the industrial sector, in order to bootstrap the economy and induce a culture of self-reliance...................

.
.
COVER STORY
.
POLITICAL ECONOMY OF THE BUDGET
UNREALISTIC REVENUE TARGETS WEIGH ON TRADE AND INDUSTRY GROWTH
.

It rightly said that the budget is the most powerful fiscal instruments at the disposal of the government to implement political commitment and development agenda made public during electioneering campaigns; however the story takes a turn when a political party voted to power.
Almost every democratically elected government made promises rather tall claims to take care of Public Sector Development Program, health and education and never tired in advocating the significance of raising living standard of the masses through PSDP, education in building up the nation with ensured economic and political stability. It is unfortunate that the budgetary allocations for PSDP most of the time remain short to the target primarily due to lack of sincerity of the purpose. A major chunk of government spending goes under Larkana, Lahore, Gujrat and Multan packages!
......

.
.
COVER STORY
.
BOOSTING GDP GROWTH THROUGH EXPORTS
.

 

At present around the world countries endeavor to produce exportable surplus, in attempt to achieve optimum capacity utilization and economy of scale. The added advantage is that through technological up-gradation domestic also get the state-of-the-art products. The local population also reaps the benefits of technological innovations going on around the world. As against this, most of Pakistani industrial units work far below optimum capacity utilization which has two disadvantages:

1) despite having capacity to produce certain goods countries is faced to import these, which erodes paltry foreign exchange of the country and 2) operating below optimum capacity utilization leads to higher cost becomes punitive for local consumers and also renders the manufacturers uncompetitive in the global markets.
Integration into global markets also helps the countries to manage their foreign exchange reserves more prudently. Countries finance their imports through exports...........

.
.
.
.
COVER STORIES
.
.
.

SHIPPING
NEWS

.

ASIA DRY BULK-CAPESIZE TO NUDGE HIGHER
Rates for capesize bulk carriers on key Asian routes could hold steady or climb higher after prices jumped earlier this week on renewed chartering activity by operators including Vale and Fortescue Metals Group, brokers said.
The surge in charter volumes added about $2 per tonne to capesize rates from Australia to China and $3 per tonne for a voyage from Brazil to China, leading the Baltic capesize index to climb nearly 60 percent in a week.
But capesize freight rates are still below the levels seen last year when the dry bulk sector entered the traditionally strong fourth quarter.
"The capesize market is a bit more exciting this week. The rally caught people by surprise. And I wouldnít be surprised if it nudges up," said a Singapore-based capesize broker this last Thursday.......

.
.
RESEARCH CORNER
.
THE NEED OF R&D INFRASTRUCTURE
.

.

The primary function to conduct R&D activities is to germinate novel knowledge that leads to produce new products, processes and services. Though the R&D business is time-consuming with reasonable risk level but carries high personal and social returns. The interesting characteristic of knowledge is that it gets spilled and the benefits would not remain restricted to the one who generates knowledge. As a result, it leads to the sharing of benefits umpteenth times.
The consistent efforts with proper strategic planning would bring about a revolution in the science and technology development. It is hard for the developing nations like Pakistan to build a strong National Innovation System at the cost of several other development projects....
.......

.
 

RESEARCH CORNER

.
.

HUB POWER PLAYING AN ACTIVE ROLE IN ADDRESSING ENERGY SHORTFALLS

.

.

Pakistanís acute power crisis poses a grave predicament to its social environment and economy. However, the role of Hub Power Company Ltd role in alleviating the power crisis in the country is admirable. Hub Power plans to pursue progress initiatives to produce extra sustainable energy, thereby sharing to bridge the gap between demand and supply and also making energy more reasonable.
The company presently owns and administers an oil-fired energy station with an installed capability of 1,292MW at Mouza Kund, Hub in Balochistan and a 225MW oil-fired energy station at Mouza Poong, Narowal.........

.
.

CAPITAL MARKETS
.
.
COVER STORY
.
ADOPTING CHINESE ECO-FARMING BEST TO INCREASE AGRI YIELDS, MEETING FOOD SECURITY
.

.

China has developed itself as a major farm producer even though it accounts for 10 percent of cultivable land world-wide it accommodates 20 percent of world food demand while comparing per hectare yields of Pakistan and China, Pakistanís per hectare rice yield is 3.1 tons whereas China is the largest producer of rice with per hectare yield of 6.5 tons, similarly Pakistan produces pulses per year with per hectare yield of 0.6 ton and China produces 1.2 tons per hectare, which is twice above of Pakistan. Pakistanís sugar cane production is 52.4 tons per hectare whereas China obtains a yield of 65.7 tons per hectare.........

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

.
INDIA IN THE NEWS

NEEMRANA: Hero MotoCorp is fuelling up for a major expansion and will pump in Rs 5,000 crore to nearly double capacity and open plants in India and abroad. The country's biggest two-wheeler maker is targeting to double sales to 12 million units by 2020 as it looks at regions beyond the Indian shores like South America and Africa.
Pawan Munjal, vice-chairman and MD of Hero Moto, said the company is also eyeing an entry into Western Europe and the US as part of a push into the developed Western markets.........

.


IN THE NEWS

According to the provisional figures compiled by the Pakistan Bureau of Statistics, exports from Pakistan during September, 2014 amounted to Rs.223,172 million (provisional) as against Rs. 191,264 million (provisional) in August, 2014 and Rs.275,483 million during September, 2013 showing an increase of 16.68 percent over August,2014 but a decrease of 18.99 percent over September, 2013. Exports during July - September, 2014 totaled Rs.604,193 million (provisional) as against Rs.690,085 million during the corresponding period of last year showing a decrease of 12.45 percent.......

.

GULF NEWS

The UAE banks are on track to close the year by recording strong profitability and credit growth given their better than expected performance during the first six months on the back of fast improving liquidity, non-oil private sector growth and increased government spending, banking analysts said.
Most analysts expect the overall credit growth for the UAE banking system for the year to be around nine per cent per cent as total credit stock of the GCC banks is predicted to grow by around 10 per cent annually in 2014 and 2015..
.....

.

ANNOUNCEMENT

Being the Nationís Bank, NBP constantly strives for attaining greater customer satisfaction. Recent addition of "NBP Foree Remittance Account" in the Foree Remittance family of remittance product range offered by NBP is a step towards providing convenience to customers without compromising on the efficiency of remittance delivery. With the introduction on Foree Remittance Account, customers are no longer required to visit branches and wait in lines for receiving remittances, rather home remittances are immediately credited to the customerís account upon receipt from the overseas and a SMS Alert is sent on the customerís designated mobile number..........

.

COVER STORY
.
QUALITY OF PRODUCTS AND THEIR COMPETITIVENESS INDEED, HOLD THE KEY FOR SUCCESS
.

.

The exports of sports products from the country witnessed positive growth during the first quarter of the current fiscal (2014-15) year compared to the corresponding period of last year.
The sports goods worth $82.015 million were exported during July-September (2014-15) compared to the exports of $81.527 million in July-September (2013-14), showing a positive growth of 0.60 percent.
As per official statistics, the sports goods that contributed in positive growth included footballs, exports of which increased by 15.05 percent during the period under review compared the last year.........

.
.

EXCHANGE RATES
Pakistan Open Market Rates

BUYING SELLING
US $ 103 103.25
UK POUNDS 165.5 165.75
KUWAITI DINAR 354.25 354.5
SAUDI RIYAL 27.25 27.5
UAE DIRHAM 27.95 28.2
CANADIAN DOLLAR 91.25 91.5
EURO 130.25 130.5
JAPANESE YEN 0.92 1.02

MORE RATES

.
.
COVER STORY
.
PAKISTANíS ECONOMIC STATUS IMPROVES: ADB
.

.

The Asian Development Bank (ADB) in its annual report "Asian Development Outlook Update 2014" is appreciative of the performance of the incumbent Government of Pakistan that the reforms measures taken by it during the outgoing year has improved the economic conditions in the country. According to the report released recently growth has edged up, budget deficit shrunk, foreign exchange reserves strengthened and a sovereign bond issue enhanced policy creditability of the country.
The ADB in its repot, however, observed that Pakistan in recent years has endured low growth, chronic power deficits and large fiscal and external imbalances. ......

.
.
3Oct14 17Oct14 24Oct14
NASDAQ

4,430.19

4,217.39

4,452.79

H.SENG

23,064.56

23,023.21

23,302.20

SENSEX

26,567.99

26,234.08

26,851.05

NIKKEI

15,708.65

14,532.51

15,291.64

CAC-40

4,264.32

3,999.20

4,142.23

DAX

9,195.68

8,764.62

9,029.63

FTSE

6,485.05

6,267.83

6,403.08

S&P

1,946.17

1,862.76

1,950.82

DJIA

16,801.05

16,117.24

16,677.90

.

K
I
B
O
R

R
A
T
E

.

As On Oct 24, 2014

TENOR

BID

OFFER

1 Week

9.41

9.91

2 Week

9.64

10.14

1 Month

9.84

10.34

3 Month

9.96

10.21

6 Month

9.96

10.21

9 Month

10.00

10.50

1 Year

9.99

10.49

2 Year

11.39

11.89

3 Year

11.89

12.39

.
.
RESEARCH CORNER
.
PEMRA SMOOTHING THE PROCESS OF FAIR, FREE MEDIA
.

.

In a world influenced through cyber-space and satellite and cyber-space technology, e-media has a very important and vital role to play in shaping the destiny and life of states. The visual media, particularly television, has a stupendous, impact upon moulding human views and minds. In the given situation the e-media has an burdensome accountability in addressing the socio-economic issues of societies and disseminating un-baised knowledge.
This accountability can be efficiently shouldered if the media treads the way of correctness and objectivity in transmission of its programs........

.
 
BUSINESS QUOTATIONS
.

The development of civilization and industry in general has always shown itself so active in the destruction of forests that everything that has been done for their conservation and production is completely insignificant in comparison.
KARL MARX
A lot of people in our industry haven't had very diverse experiences. So they don't have enough dots to connect, and they end up with very linear solutions without a broad perspective on the problem. The broader one's understanding of the human experience, the better design we will have.
STEVE JOBS
The world runs on individuals pursuing their self interests. The great achievements of civilization have not come from government bureaus. Einstein didn't construct his theory under order from a, from a bureaucrat. Henry Ford didn't revolutionize the automobile industry that way.
MILTON FRIEDMAN
The true face of smoking is disease, death and horror - not the glamour and sophistication the pushers in the tobacco industry try to portray.
DAVID BYRNE
The TV business is uglier than most things. It is normally perceived as some kind of cruel and shallow money trench through the heart of the journalism industry, a long plastic hallway where thieves and pimps run free and good men die like dogs, for no good reason.
HUNTER S. THOMPSON
A lot of people ask me, 'How did you have the courage to walk up to record labels when you were 12 or 13 and jump right into the music industry?' It's because I knew I could never feel the kind of rejection that I felt in middle school. Because in the music industry, if they're gonna say no to you, at least they're gonna be polite about it.
TAYLOR SWIFT

.
.

.
COVER STORY
.
PAKISTANíS TRADE DEFICIT GOING HIGH

.

 

Pakistanís trade deficit has gone up by 28 percent in the first two months (July-August) of the current fiscal year 2014-15 due to the massive increase in imports and decline in exports of the country while the countryís trade imbalance has been recorded at $4.243 billion during the said period as against $3.308 billion of the corresponding period of the previous year showing a decline of 28.3 percent.

The trade deficit has stretched because imports have outpaced the exports during the first two months of the current fiscal year.
Exports have recorded a decline of 0.98 percent, as country exported goods worth of $1.911 billion in August 2014 as against $1.93 billion of its previous month of July 2014.........

.
 
.

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

.

RS41M GIVEN FOR REVIVAL OF BUSINESSES IN FATA (DAWN NEWS)
.

UKRAINE-RUSSIA 'CONSENSUS' OVER GAS (BBC NEWS)
.

CHINA TO SUPPORT PAKISTAN IN DIAMER BHASHA DAM (THE NATION)
.

14 SCHEMES WORTH RS 12.155 BILLION APPROVED BY PUNJAB GOVERNMENT (BUSINESS RECORDER)
.

KUWAIT URGES GULF REFORMS AS OIL PRICES FALL (GULF NEWS)
.

CHINA, 20 OTHER COUNTRIES INITIATE NEW ASIAN BANK (DAWN NEWS)
.

SUGAR INDUSTRY READY TO HELP FBR ENHANCE TAX-TO-GDP RATIO (THE NATION)
.
.
CAPITAL MARKETS
.
STOCK MARKET ROUND UP
.

The KSE-100 Index rose by 0.72%WoW to settle at 30,098 points, amidst relative calm on the political front and financial results released throughout the week. News flows driving the market included: 1) oil prices falling to two-year low, currently at US$84.5/bbl; 2) crucial talks between the IMF and Pakistan to begin next week in Dubai for the release of two tranches amounting to US$1.1 billion; 3) Supreme Court granting permission to the Government of Pakistan (GoP) to sell 10% out of its stake in OGDCL, with the book building set for early November and 4) Prime Minister halting Rs0.3/KwH hike in the power tariff proposed by NEPRA.......

.

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