The Pakistani e-commerce market is alluring the interest of international investors. Daraz.pk and Azmalo.pk are some of the most successful and popular Pakistani ecommerce websites developed by Rocket Internet (GmbH), the world’s leading online venture builder. Pakistan recently signed a Memorandum of Understanding (MoU) with the world’s largest e-commerce company, Alibaba, to promote the country’s exports worldwide by Small and Medium Enterprises (SMEs) through e-commerce. Under the deal, Alibaba, Ant Financial and the Trade Development Authority of Pakistan (TDAP). TDAP agreed to foster growth of worldwide exports of products by SMEs in Pakistan through e-commerce. The trend to use internet…
Author: Syed Fazl-E-Haider
The Consumer Price Index (CPI) inflation in Pakistan increased by 8.8% in April 2019 as compared to an increase of 9.4% in the previous month and 3.7%, a year ago, according to the Pakistan Bureau of Statistics (PBS). The CPI increased by 0.1.3% month-on-month basis in April over previous month. The Wholesale Price Index (WPI) in April increased by 0.13.8%, and Sensitive Price Index (SPI) increased by 9.3% over same month a year ago. The Asian Development Bank in a recent report forecast that Pakistan’s GDP growth will slowdown further to 3.9% in fiscal year 2019 as macroeconomic challenges continue…
Balochistan has huge potential in trade and commerce by virtue of its strategic location. A need is felt to exploit huge export potential in main sectors of provincial economy. It has tremendous potential for development of horticulture, particularly the fruit farms. There is a lot of potential for development in the livestock and dairy sectors, as the province can earn a substantial amount of income by exporting the products in these sectors to the lucrative markets in the food deficit region — Afghanistan and Central Asia. The land along coastal belt has enormous potential for development of shrimp farming and…
Pakistan has an unorganized retail sector. There are inherent limitations which include lack of economies due to small scale operations, lower level of functional expertise and lack of financial strength. Such limitations negatively impact the ability of unorganized sector to display its products. Great attention should be paid on the format of retailing in Pakistan. According to one estimate, the organized retail penetration is around 5 percent in the country. With the induction of global brands and outlets, the country’s retail sector is presently witnessing a booming and impressive growth. Many local brands have expanded and gone global by adopting…
Balochistan is the least developed region of the country. Local youth are still deprived of the opportunities and facilities, which are necessary to make progress in any field of science and technology. Computer literacy is the high demand of present digital age. In wake of operationalization of the deep-water port at Gwadar, there will be a dire need of qualified and professional port staff for successful marketing of the port management to potential customers, building of export processing zone, trans-shipment and warehousing facilities, fixing of port tariffs for shipping companies in order to be competitive. Those who build up their…
Balochistan has the country’s extensive oil and gas reserves. According to an estimate, out of the Pakistan’s estimated 25.1 trillion cubic feet (Tcf) of proven gas reserves, 19 trillion are located in Balochistan. According to another estimate, out of the country’s proven oil reserves of 300 million barrels, largely are located in the province. Strategically located province is surrounded by the countries like Afghanistan, Iran, and Arabian Gulf states, which are rich in oil and gas reserves. While on one hand it is located in midst of oil and gas reserves, on the other the most important international sea routes…
Unfortunately, there is a widespread violation of consumer rights in Pakistan. The area of consumer protection has remained neglected in the country. It is pathetic that majority of consumers are unaware of their rights, hence they are vulnerable to exploitation by producers. A consumer has misleading information and because of the ignorance of his rights and non-availability of redress mechanism, he is exploited by the producers. The government is responsible for protecting the consumer welfare and rights through intervention. A consumer is vital to any economic plan, strategy, policy and activity. The consumers may suffer if they have no information…
Experts define a logistics hub as the integrated center for transshipment, storage, collection, and distribution of goods. Broadly speaking, the specific area designated to deal with activities related to transportation, organization, separation, coordination and distribution of goods for national and international transit, on a commercial basis by various operators is called logistics hub. To many experts, logistics hubs provide not only traditional activities such as storage, but also value-added logistics services such as labeling, assembly, semi-manufacturing, and customizing. These centers combine logistics and industrial activities effectively in major port areas to create specific products. The facilities provided at the hub…
The renewable energy sources like water, wind, sunlight etc are considered as clean, eco-friendly and sustainable all over the world. On the other hand, thermal energy resources are expensive and environmentally unsafe. According to an estimate only 0.1 percent of renewable sources are being utilized. Balochistan is rich in renewable energy (RE) resources, which must be exploited for sustainable development of the province. Present government led by Prime Minister Imran Khan should make efforts to exploit huge volume of renewable energy sources of the province through renewable energy technologies like wind power turbines, biogas plants, microhydel power plants and solar…
Pakistan’s telecom sector has witnessed impressive growth in the past five years. The country’s telecom sector contributed $4.42 billion to national kitty in past three years (July 2014 to June 2017). The number of mobile subscribers rose to 152 million in 2018 from114 million mobile subscribers in 2014. In 2014, 3G licenses were awarded to Jazz, Telenor, Ufone, and Zong while the last one was also given the license of the 4G service. Later on, in 2016, Telenor received the 4G license and after that Jazz was awarded the same license in 2017. Pakistan Telecommunication Authority (PTA)’s initiative of the…
Gwadar Port has the potential to become the industrial crown of the country. It can transform the Pakistan’s economic status forever. It will enjoy prime importance because of its geo-strategic location marking the confluence of South Asia, West Asia and Central Asia. The Gwadar Free Trade Zone will open up many more possibilities for the region. Gwadar, after completion of port project is expected to become the ‘boom’ town in the next few years. A special industrial development zone with an area of 4,000 hectare has been proposed for setting up various industries in Gwadar. The export processing zone has…
What is a Halal food and what are the practices to make it Halal only Islam teaches, the word often used in reference to foods and drinks, which are permissible for Muslims to eat or drink under Islamic law. The criteria specifies both what foods are allowed, and how the food must be prepared. These foods include types of meat and animal tissue. The food must come from a supplier that uses Halal practices. Specifically, the slaughter must be performed by a Muslim, who must precede the slaughter by invoking the name of Allah. Since Pakistan is an agricultural country…
By virtue of its geo-strategic location, Gwadar is likely to emerge as a free oil port in the South Asian region. It can serve as the future petroleum and petrochemical hub of Pakistan meeting the oil transshipment requirements of different countries. That is why, Pakistan needs to enhance its refining capacity and it needs mega oil refinery projects in its strategically located province of Balochistan. Pakistan is largely dependent on oil imports. Bulk of the Pak Arab Refinery Limited (PARCO) revenues is generated from its refinery operations. PARCO markets its products through off-take agreements with Oil Marketing Companies and also…
Quaid-e-Azam Muhammad Ali Jinnah had a clear vision of Muslim nationalism in the subcontinent and he presented it in crystal-clear words in his presidential address on the occasion of Pakistan resolution on 23rd March 1940, when he said, “We are a nation with our own distinctive culture and civilization, language and literature, art and architecture, value and proportion, legal laws and moral codes, customs and calendars, history and tradition, aptitudes and ambitions; in short, we have our own distinctive outlook of life and on life. By all canons of international law, we are a nation.” As a nation we celebrate Pakistan Day on…
Pakistan’s area-wise largest province Balochistan is still caught in underdevelopment trap. The province is rich in natural resources. It has tremendous potential for development of horticulture, particularly the fruit farms. There is a lot of potential for development in the livestock and dairy sectors, as the province can earn a substantial amount of income by exporting the products in these sectors to the lucrative markets in the food deficit region — Afghanistan and Central Asia. The land along coastal belt has enormous potential for development of shrimp farming and processing projects, which can play a vital role in fisheries development in the province. For its huge mineral potential,…
The United Nations Secretary-General’s in-depth study on all forms of violence against women emphasized on combating harmful traditional and cultural practices and strengthening the role of National Women’s Machineries (NWMs), which are vital to the integration of women into the development strategy. The UN experts group meeting convened in April 2007 in Bangkok affirmed that gender-based violence in the form of harmful traditional and cultural practices are deeply rooted in patriarchal gender relations and norms. Pakistan is a traditional and somewhat a closed society. It is hard to challenge the long-cherished traditions of the society. A change in the status…
There is a lot to learn from the global franchise model both for the local business chains and the consumers. Pakistani market currently has the presence of leading international fast food franchises and consumer brands, which are successfully doing their business in the country, while these foreign brands also giving Pakistan a soft image. This franchise model is actually transferring improved training, technology and business know-how to the local market. The model generates world class professional knowhow. It is just because of the fast food franchises that we have the presence of auxiliary industries like the home-delivery service and suppliers…
Cement and steel are building materials used in the construction sector. There are hopes being pinned for high growth of cement and steel industry after the implementation of mega construction projects under China-Pakistan Economic Corridor (CPEC). With CPEC, the domestic demand will witness a sharp surge. The country’s cement industry has the capacity to meet the rising demand of cement for infrastructure projects under CPEC plan. On the other hand, the country faces acute shortage of steel products for construction activity. The state-owned Pakistan Steel Mills (PSM) is running on the cash lifelines given from the government. The cash-strapped PSM…
Present government increased petroleum product prices effective from this month. Petrol price has been increased by Rs2.5 per litre, diesel Rs4.74 per litre, kerosene oil by Rs4 per litre and light diesel oil by Rs2.5 per litre. The petroleum products prices are revised on every month by the Ministry of Finance and petroleum prices are suggested by the Oil and Gas Regulatory Authority (OGRA) on every end of the month to decide new petroleum products prices for the next month and onwards. Since January 2018, Pakistan has witnessed a persistent rise in oil fuel prices. The country’s annual inflation reached…
Sindh, Balochistan has huge sea food potential to take big share in world markets Shrimp is considered favorite seafood in many Western countries including USA. The demand for quality shrimp worldwide is growing each year. Depletion of natural shrimp stocks in the wild is occurring rapidly. Shrimp farming in the world has grown into a multi billion-dollar trade, creating hundreds of thousands of jobs and much-needed foreign exchange in many countries. Owing to the technological advancement and new techniques as introduced by the researchers, shrimp can now be raised and harvested round the year in various climates. Shrimp farming continues…
There is a lot of potential for development in the agriculture livestock and dairy sectors, as Balochistan can earn a substantial amount of income by exporting the products in these sectors to the lucrative markets in the food deficit region — Afghanistan and Central Asia. Balochistan provides greater opportunities for trade and commerce to all countries of the region by virtue of its strategic location. It has tremendous potential for development of horticulture, particularly the fruit farms. The land along coastal belt has enormous potential for development of shrimp farming and processing projects, which can play a vital role in…
Banking sector accounts for around three-fourth of Pakistan’s financial sector. A robust banking sector is a healthy sign for the economy of a country. It is this sector that plays the role of financial intermediation between savers and investors, which actually determine the rate of economic growth. The banking sector plays a critical role in mobilization of savings from households from across the country and placing them at the disposal of entrepreneurs. There is a dire need to make efforts for making the banking system more inclusive and focus its lending activities on the SMEs and agriculture sector. The banking…
Present government should create conditions leading to the economic empowerment of women in Pakistan. They should be provided opportunities to play their role at all levels and in all types of development activities. They must have the opportunity and be provided with an environment to develop their talents. Rural women should get the possibility to enter all types and all levels of education and training. Education and training facilities should be provided to a large extent on the inputs women are already providing. Under the 1973 constitution, all Pakistani citizens are equal, with no distinction based on gender alone. Unfortunately,…
In the cricket world, Pakistan Super League (PSL) emerged as one of the most valuable leagues in South Asia after the rise of Indian Premier League (IPL) and Big Bash League (BBL). This month, the fourth edition of PSL has been kicked off with a total of 34 matches out of which 26 will be played in the UAE, while eight matches will be played in Pakistan. Some top cricketers from all over the world will participate in this premier T20 tournament. Each team will play 10 matches with the top four teams being eligible for the knockouts. The matches…
The coastal areas of Balochistan like Gwadar and Pasni in Makran district provide good conditions and climate for installation and working of the tidal energy generators. These projects will control the power shortage problem in the province. With the development of Gwadar into a hub port of the region on the pattern of Dubai, Hong Kong and Singapore, the power demand of the port city will increase multiple times. Exploitation of tidal energy potential is the good option to meet the future power needs of Gwadar port city. The tidal energy is a form of hydropower that converts the energy…
Oman is Pakistan’s fifth neighbor that shares maritime boundaries with Pakistan. The two countries enjoy close and cordial relations. Both the countries agreed to further enhance cooperation and expand relations in diverse areas, including economic, trade, investments, education and defense. Pakistan and Oman are bound by a common history, shared values, faith, traditions and commonality of interests and formed the basis of a special relationship with Oman. The two countries initiated their diplomatic relations way back in 1972, and have grown from strength to strength. Since its creation, the hardworking and committed Pakistanis contributed towards Oman’s development. Though bilateral trade…
Under the first phase of FTA, Pakistan’s trade balance with China had worsened, and it had registered $12 billion mark in financial year 2016-17. Last year, the talks on second phase of Free Trade Agreement (FTA) could not reach a breakthrough between two countries. During the 9th round of talks, the two countries agreed for granting tariff reduction on 75 percent tariff line under the proposed revision in the FTA. Pakistan’s Ministry of Commerce suggested proposals to increase the number of items with zero duty from 2,600 tariff lines to 6,000 tariff lines. The 10th round of talks held last…
The Securities and Exchange Commission of Pakistan (SECP) should take the initiative of setting up a branch of Pakistan Stock Exchange (PSX) at Gwadar in Balochistan. A stock exchange in Gwadar will have a greater scope for development of Pakistan capital market than any place in other provinces. The country has already declared Gwadar port a free trade zone for the next 23 years. A huge development process is underway in and around Gwadar to convert it into identical Dubai, Hong Kong or Singapore in the subcontinent. Former prime minister Nawaz Sharif already said that Gwadar port would be developed…
Pakistan is yet to make significant attainments in the human development index (HDI), which focuses on measurable dimensions of human development such as living a long and healthy life, being educated and having a decent standard of living. Thus, HDI combines measures of life expectancy, school enrolment, literacy, and income. In the country’s rural areas, the health status is relatively poor. Lack or absence of female health staff including female doctors in rural areas worsen the situation. The government should work out a road map for development of human resources in the country. The key areas need to focused for…
The government of Prime Minister Imran Khan has promised to introduce a new national energy policy with focus on development of renewable energy sector. The officials have indicated that share of renewable will be increased to 20 percent in the national energy mix. A month ago. the special assistant to the Prime Minister on power sector, Shahzad Qasim, while speaking at the 17th World Wind Energy Conference-2018 assured that a new power sector policy would soon be introduced by the Government of Tehreek-e-Insaf (PTI) to remove all constraints in the electricity transmission system, which have been responsible for hampering the…
The agriculture sector in Balochistan is facing many serious challenge and constraints for future growth. These challenges include reclamation of cultivable wasteland, diversification of production from the low value to high value products in response to market demand; Increased farm productivity through sustainable use of natural resources and other inputs and the rising demand for agricultural products with the growth of population and incomes. The major constraints include scarcity of water, unavailability of agricultural inputs and lack of a strong agriculture research system. The key ingredients of future agriculture strategy should be the reclamation of cultivable wasteland and development of…
Government should work out a roadmap for development of human resources in the country Education continues to be commercialized in Pakistan. The businessmen took interest and invested heavily in education sector turning education into a commodity on sale in lieu of high charges in terms of fee. Private schools, colleges and institutions witnessed a mushroom growth all over the country as the major business groups and tycoons made substantial investment in education sector. On the other hand, the government schools, colleges and universities remained stuck to their obsolete syllabi, old teaching methodology and worn out system of examination to judge…
Investing in higher education is very important for the economic development of Balochistan. The province needs academicians, research scholars and professionals, as institutional and human development is a prerequisite for the economic development of the country’s most backward and least developed province. Higher education, however, should be the privilege granted only to the competent, diligent and intelligent students, but at the same time commoditization of education must be checked. Balochistan is the least developed region of the country. Local youth are still deprived of the opportunities and facilities, which are necessary to make development in any field of science and…
Govt must support private sector to set up assembling units in Gwadar Sector has been growing at 8pc a year and is on track to reach $31bn this year Automobile is an export driven-industry providing lucrative investment opportunities for foreign investors. Though Pakistan automobile market witnessed a rapid growth and hefty expansion over the past decade, yet Balochistan could not see any development in auto and allied sector. The province was simply neglected and no plan was formulated for development of automobile industry. Development of automobile industry in the least developed Balochistan would help diversify of the provincial economy. It…
Present government led by Prime Minister Imran Khan needs to announce a comprehensive auto policy that could attract new foreign manufacturer and create a healthy competitive business environment. The country can attract investments of $4-5 billion over the next three to four years in the automobile industry, according to Pakistan Association of Automotive Parts and Accessories Manufacturers. The auto policy, however, discourages the existing Japanese manufacturers on the ground that it prefers outside investment to their own, and removes many incentives for them to invest in the country. In 2016, former government approved a new Automotive Development Policy for five…
Prime Minister Imran Khan has claimed in his several speeches that his government is committed to alleviate poverty and rehabilitate the weak and poor sections of the society. Present government must take practical steps for supporting the poor and reducing their vulnerability in 2019. The government should create conditions for the development of insurance markets, encourage the use of other risk-spreading financial instruments and design economic and regulatory incentives for risk reduction behavior. First of all, prevailing poverty in the country should be more comprehensively measured through an index that uses multiple indicators. These may be broadly categorized as socioeconomic…
Gwadar Port and the $62 billion China-Pakistan Economic Corridor (CPEC) will continue to attract world’s attention throughout the new year 2019. Both projects have the potential to lure international investors. With a well developed CPEC and a fully functional Gwadar Port, Pakistan will become a key player in the Persian Gulf region and serve as an energy corridor for Central Asia, South Asia and western China. Gwadar Port will prove a milestone in promoting regional trade between Pakistan, Iran, Turkey, Afghanistan and Central Asian Republics (CARs). Gwadar port is being developed into an international port, and the CPEC will connect…
Pakistan has the highest mobile penetration rate in the South Asian region. There is a tough competition among five cellular mobile companies operating in the country. These operators include Mobilink, Ufone, Warid, Telenor and Zong. The mobile phone operators compete by offering users attractive packages and drastic reduction in call rates. The people take advantage of this competition among multiple mobile operators. Telecom deregulation brought an end to more than five-decade-old monopoly of the PTCL. The main challenge for the government was to preserve the Pakistan telecommunication Company Limited (PTCL) in wake of opening the telecommunications market. Before the current…
The calendar year 2018 is going to be ended. Pakistan rupee has lost about a third of its value against US dollar since the start of the year. The analysts attribute rupee’s persistent depreciation to balance of payment crisis and the country’s dwindling foreign exchange reserves. With the devaluation of rupee last month when the rupee sank to 142 for a dollar in the interbank market, the country’s external debt swelled by a staggering Rs 760 billion. The rupee fell five percent in the interbank foreign exchange market on March 20 when it fell from 110.57 a dollar in the interbank foreign exchange market to 115. A…
For both foreign and local investors, Gwadar Port city offers enormous business opportunities. Gwadar Port has the potential to become the industrial crown of the country. It can transform the Pakistan’s economic status forever. It will enjoy prime importance because of its geo-strategic location marking the confluence of South Asia, West Asia and Central Asia. The Gwadar Free Trade Zone will open up many more possibilities for the region. Gwadar, after completion of port project is expected to become the ‘boom’ town in the next few years. A special industrial development zone with an area of 4,000 hectares has been…
The policy makers in Quetta and Islamabad should focus on the development of social sector and make significant investments in education and health to produce the required social capital for the economic development of Balochistan. The province will take years to come at par with developed regions of the country but considerable emphasis with better planning by the policy makers may help lead to respite the gap. Balochistan government must keep giving top priority to the development of social sector in the annual budget of the province. It is worth mentioning that development of the social sector has been the…
Present govt must formulate an aggressive exploration policy for the province Present government led by Prime Minister Imran Khan needs to formulate an aggressive exploration policy for energy-rich Balochistan. Strategically located province is surrounded by the countries like Afghanistan, Iran, and Arabian Gulf states, which are rich in oil and gas reserves. While on one hand it is located in midst of oil and gas reserves, on the other the most important international sea routes pass by the Balochistan coast. The province has the country’s extensive oil and gas reserves. According to an estimate, out of the Pakistan’s estimated 25.1…
Present government of Prime Minister Imran Khan should announce incentives for induction of the private sector in fisheries development, as the interested entrepreneurs and investors can promote the shrimp farming in the country purely on the commercial basis. The present government needs to devise a pro-active strategy for capturing more market share of shrimp business in the global market by promoting shrimp farming alongside the coastal line in Sindh and Balochistan. Fisheries is an important sector but it contributes only 0.3 percent to the overall GDP of Pakistan and 1.3 percent to the agricultural GDP, despite a coastline of 1,050…
Khalifa Coastal Oil Refinery (KCR) project a mega oil refinery planned in Pakistan and almost one of the largest investments in the country which can help meet local demand and export the rest of refined petroleum products facing difficulty in completion and in danger of suspension but hopefully the eager negotiations keeping the project to be continued. The KCR project is important for the least developed province, Balochistan, as it will bring huge investment, other socio-economic benefits and create job opportunities for the local people. According to an estimate, the project will provide direct employment to 1,500 professionals and indirect…
With a strategic location in the region and having vast untapped natural resources, diversity of climate, simultaneously five ecological zones, fisheries and strategic mineral resources, Balochistan has the potential to emerge as Pakistan’s new economic frontier. It is endowed with rich reserves of gas, oil, lead, zinc, iron, marble, coal, gold and copper. The province is home to half of the country’s estimated gas reserves of 200 trillion cubic feet, as about 100 trillion cubic feet, according to one estimate, are found in the province. Sui gas field in Bugti tribal area accounts for a quarter of the country’s total…
Present government led by Prime Minister Imran Khan must ensure continuity and timely completion of all development projects and schemes related to the Gwadar Port and over $62 billion China-Pakistan Economic Corridor (CPEC). Sustainable funding and security of these two game-changer projects should be the priority area of concern for the government. With a well developed CPEC and a fully functional Gwadar Port, Pakistan will become a key player in the Persian Gulf region and serve as an energy corridor for Central Asia, South Asia and western China. Gwadar Port will prove a milestone in promoting regional trade between Pakistan,…
Education must be the top priority of the Balochistan government, which should provide both financial and technical support to improve primary enrolment and completion rates, reduce gender disparities, and encourage the private sector to participate in provision of education in the least developed province. The government must take steps to combat technological backwardness in the province and establish technical institutes in various districts to develop human capital here. Not the government alone but all the social organizations, institutions and NGOs should come forward to help develop human resources in the province. Balochistan has a literacy rate of 39 percent, which…
Must focus on strategy, certification and making standard in marketing and packaging Halal food is often used in reference to foods and drinks, which are permissible for Muslims to eat or drink under Islamic teachings. The criteria specifies both what foods are allowed, and how the food must be prepared. These foods include types of meat and animal tissue. The food must come from a supplier following Halal practices. Specifically, the slaughter must be performed by a Muslim, who must precede the slaughter by invoking the name of Allah. Muslim population constitutes 30 percent of the total world population. The…
The implementation of mega construction projects under China-Pakistan Economic Corridor (CPEC) is likely to give an impetus to the growth of cement and steel industry in Pakistan. The value of CPEC projects is worth $62 billion presently and is expected to go up to $100 billion involves construction of highways, railways and energy pipelines connecting western China with Pakistan and the Persian Gulf. The multi-billion dollar infrastructure projects planned under the CPEC are likely to generate tremendous construction activity. Construction of Gwadar Port is the essential part of the CPEC projects. No doubt, a huge investment in infrastructure promises a…
Pakistan cannot grow economically without ensuring protection of consumer’s rights with the emergence of competitive environment in markets of goods and service. The companies of different sectors should ensure consumers’ rights keeping in mind that these people are their business partners whose contribution are vital in development and growth of their businesses. Without protecting consumers’ rights, the country cannot allure foreign investment, which leads to bring competition in different fields of business and benefits to layman in terms of high quality in the products and services against reasonable prices and charges. A consumer is vital to any economic plan, strategy,…
The government of Prime Minister Imran Khan should focus and pay special attention to the untapped sectors of Balochistan economy bringing it into national mainstream. The province has all the potential to emerge as Pakistan’s new economic frontier. Unfortunately, it still remains the least developed and poorest among the four provinces. Rich in energy resources, Balochistan produces more than 40 percent of the primary energy in the form of natural gas, coal and electricity. Geological surveys indicate estimated reserves of trillions cubic feet of gas and billions barrels of oil during offshore exploration. Any discovery of a huge oil reserve…
Strategically located Gilgit-Baltistan borders the Wakhan corridor of Afghanistan to the northwest, China’s Uygur Autonomous Region of Xinjiang to the northeast, the Indian held state of Jammu and Kashmir to the south and southeast, the Pakistani-controlled state of Azad Jammu and Kashmir to the south, and Pakistan’s Khyber Pakhtunkhwa province to the west. There is a grater scope for development of tourism industry in Gilgit-Baltistan, which is home to more than fifty peaks above 7,000 meters. The region has some of the world’s highest mountain ranges including Karakoram and western Himalyas ranges. The region’s enormous tourism potential can efficiently be…
Balochistan is the country’s poorest province with standards of living and social indicators lagging substantially behind the rest of the country. There is a strong nexus of high illiteracy with high poverty in the province. A lethal combination of militancy and poverty continues to keep the province far behind the other provinces in performance improvement in the educational arena killing all efforts and frustrating any prospect to bring improvement in poor state of education. For obtaining health capital in Balochistan, there is a dire need to resolve basic and pressing issues related to the health sector. Health distress The health…
Prime Minister Imran Khan recently returned home from his first official visit to China. Certainly, Pakistan actually needs trade not aid from its close friend. The country’s worsening trade balance with China raises concerns about the Free Trade Agreement (FTA) the two countries signed in 2006. Critics say that FTA deal should be scrapped as it has so far resulted in losses to the tune of billions of dollars to Pakistan economy. As a result of FTA deal, the Chinese exports have jumped from 3.5 billion dollars to over 16 billion dollars while Pakistani exports have increased negligibly, according to…
Last week, Prime Minister Imran Khan paid an important visit to China at a time when Pakistan is facing multi-facet challenges on economic front. Pakistan’s energy challenge still poses risks to the country’s economic growth and expansion. The country still faces power shortages due to rapid growth in demand for electricity. The country is largely dependent on oil imports. Owing to unstable prices and supply of oil and gas across the globe, the visiting Prime Minister needs to discuss and seek Chinese cooperation and expertise to develop the country’s renewable energy resources in a big way. Time has come to…
Balochistan is rich in renewable energy (RE) resources, which must be exploited for sustainable development of the province. The government should make efforts to exploit huge volume of renewable energy sources of the province through renewable energy technologies like wind power turbines, biogas plants, microhydel power plants, solar thermal devices and tidal energy. Tidal power has not yet been operational in Pakistan compared to other renewable energy technologies. Tidal power plants in coastal creeks of the country, however, could play a role in overcoming the chronic energy shortage. In 1988, the National Institute of Oceonography (NIO) had conducted a study…
The growing participation of women in politics in Pakistan and the decision-making process is a strong sign of weakening traditional and cultural practices of a closed society. The July 25 general elections witnessed a large number of women candidates that contested polls to the national and provincial assemblies seats across the country. Women participation in policy-making will open the door to their economic empowerment in the country. A strong local government system may help build the capacity of local councilors, including women councilors, improve the quality of women’s lives and lay the groundwork for greater autonomy for women in all…
Balochistan has been lacking a corporate culture and hence it witnessed a meager corporate growth over the past many decades if compared with other provinces. Surprisingly, Balochistan witnessed a record corporate growth during the fiscal year 2010-11. The total companies registered with the Securities and Exchange Commission of Pakistan (SECP) Company Registration Office in Quetta crossed the 1,000 mark. The analysts consider it a milestone in the corporate growth history of Balochistan, reflecting the progressive development of a corporate culture in the province. The credit for unprecedented corporate growth in Balochistan goes to the SECP that undertook substantial reforms and…
The proposed industrial zones in the port city of Gwadar would contribute to the harnessing of Balochistan’s potential in natural resources and development of heavy and large-scale industries, petrochemicals and manufacturing. The China-Pakistan Economic Corridor (CPEC) and Gwadar port are expected to usher in a new era of industrial development in Balochistan. Balochistan possesses enormous industrial potential in key sectors- agriculture, livestock, fisheries and minerals. There are greater investment opportunities in all sectors of provincial economy for exploiting the industrial potential of the province. A large number of agro-based, livestock-based, fisheries-based and mineral-based industries can be set up in the…
Islamic banking is one of the emerging fields in global financial market. It is growing at very fast pace all around the world. Islamic investment banks and Islamic venture capital funds are yet to be launched in Pakistan. Islamic banking does suit to religious mindset in the Muslim country where the people generally abstain from purchasing insurance policies on religious grounds. Similarly, the people have reservations on banking which also involves payment of interest. The people believe that Islam forbids insurance due to involvement of fixed rate of interest and hence, they are more inclined to buying Shariah-compliant products. Islamic…
Pakistan is China’s second largest trading partner in south Asia, while China is Pakistan’s second largest source of imports and seventh largest exporting market. From China, Pakistan imports, polyester and silk fabrics, polyester staple fabrics, fertilizers, tyres, mobile communication equipment, gas turbines, motorcycle parts, combustion piston engines, electrical appliances, iron and steel products, and various other forms of machinery. In fact China has multiplied its investment in Pakistan over the past one decade. No sector of the country’s economy has left where China has not made investments. The Pakistani market is flooded with Chinese brands. Whether it is telecom, IT,…
There is a lot of potential for development in the livestock and dairy sectors, as Balochistan can earn a substantial amount of income by exporting the products in these sectors to the lucrative markets in the food deficit region — Afghanistan and Central Asia. Balochistan provides greater opportunities for trade and commerce to all countries of the region by virtue of its strategic location. It has tremendous potential for development of horticulture, particularly the fruit farms. The land along coastal belt has enormous potential for development of shrimp farming and processing projects, which can play a vital role in fisheries…
Pakistan are facing power shortages due to rapid growth in demand for electricity. Power outages increased significantly due to the widening gap between supply and demand over the past five years. It has adversely affecting the industrial output and economic growth of the country. The country has, however, realized the need to shift towards its renewable resources such as water, wind and sunlight and reduce the dependency on conventional thermal based generation facility owing to unstable prices and supply of oil and gas across the globe. Ours annual energy requirements are expected to be more than double to 177 million tons of…
For a developed and industrialized Balochistan, the future scenario necessitates the establishment of a strong, well-coordinated and metalloid highway and road and rail network spreading across Balochistan and interlinking the major commercial centers in the province. China Pakistan Economic Corridor (CPEC) project is perhaps the answer. Gwadar Port is of immense importance not only for trade with regional countries but also for the development of Pakistan. Of course, Gwadar has the potential to become a hub of major economic and commercial activities in the region. There is a high need for establishing roads and warehousing facilities at Taftan, Chaman and Torkham borders in order to…
The former caretaker government in June and July considerably increased the prices of petroleum products. The petroleum products prices are revised on every month by the Ministry of Finance and petroleum prices are suggested by the Oil and Gas Regulatory Authority (OGRA) on every end of the month to decide new petroleum products prices for the next month and onwards. In September, the present government approved up to 143 per cent increase in natural gas tariff with immediate effect having a cumulative financial impact of about Rs116 billion. The decision to increase gas rates for all consumer categories was taken…
Present PTI government of Prime Minister Imran Khan is for making investment in human development to upgrade the standard of living of the poor, deprived and neglected sections of people in the country. Conflict-ridden Balochistan is the poorest of all provinces with 52% population living below poverty line. A recent study of Sustainable Development Policy Institute (SDPI) revealed that 20 districts in the whole country had an acute poverty incidence, out of which 16 districts are located in the province. For the present PTI government of Prime Minister Imran Khan, the aggravating poverty in Balochistan should be the major challenge.…
The successive governments in Pakistan could not launch the housing schemes for the complex and time-consuming process the housing sector development involves. The country spends more than US$5 billion on construction from its annual development budget. The housing sector, however, gets less than half of the amount allocated for construction each year. Housing In view of the burgeoning population and rapid urbanization, the new government led by Prime Minister Imran Khan should announce affordable housing schemes in Pakistan. The housing sector holds strong backward and forward linkages with other industries. No doubt, its growth unleashes growth in these related sectors.…
Pakistan is rich in natural resources. Only the educated, skilled and healthy people can make the best use of the enormous natural resources of the country. The better human capital equipped with education in science and technology can be instrumental in increased productively with modern technology in all economic sectors. This will enhance industrial productivity and increase exportable output of the country. Education is the main tool to develop human capital. The analysis of investments in health and education is unified in human capital approach, which focuses on the indirect ability of education and health to increase utility by increasing…
Balochistan still lacks proper system of financial inclusion. Simply speaking, it still lacks access to formal financial services including savings, credit, insurance and payments vis-à-vis formal financial intermediaries, at an affordable cost. There is no doubt that the province offers tremendous opportunities for growth of financial sector as the security situation in Balochistan continues to improve and the projects under the China-Pakistan Economic Corridor (CPEC), development of Gwadar Port and untapped natural resources have brought the province in the radar screen of international investors. The incumbent government led by Prime Minister Imran Khan needs to work on new ways to…
Thar coalfield in Sindh province is bestowed with 175 billion tons of lignite coal, which can fuel power generation of over 100,000 megawatts for more than two centuries and the present government of Prime Minister Imran Khan can take good initiative of developing the coal-based power plants in Thar coalfield in order to meet the country’s energy challenge. Pakistan needs to increase share of coal in country’s energy mix to at least 19 percent by 2030 and 50 percent by 2050. The crucial issue of tariff rate on power generation has so far halted the development of coal-based power plants…
Pakistan still faces power shortages due to rapid growth in demand for electricity. Power outages increased significantly due to the widening gap between supply and demand over the past three years. Owing to unstable prices and supply of oil and gas across the globe, the new PTI government needs to shift towards country’s renewable energy resources such as water, wind and sunlight and reduce the dependency on conventional thermal based generation facility. The country is largely dependent on oil imports. The energy statistics of Pakistan shows that around 50 percent of the need is met by the indigenous gas production…
No doubt, shy investment in oil and gas sector and the security concerns in the province have been the key reasons for slower growth of the sector, but there is presumably another issue related to Iran’s reservation and concern over drilling of oil wells in Balochistan. If the new government led by Prime Minister Imran Khan seriously takes the initiative of boosting drilling activity in the province, then it will be a game-changer initiative that can answer the many unanswered questions in this regard. If Balochistan has proven reserves of oil and gas, then why the exploration, production and drilling…
Pakistan is not at expected standard in growth and development of Islamic finance despite being an Islamic country while in the world the Islamic financing taking better and fast progress. Islamic finance has shown an impressive growth and diversification over the past three decades. Islamic funds industry has yet to evolve develop and grow with new market players in Pakistan. There are 29 Islamic open ended funds 18 voluntary pension funds and 1 closed ended fund in the country. The Islamic funds constitute 12 percent of the overall fund management in Pakistan. The country has the total assets worth Rs.…
Livestock development is linked with poverty alleviation in Balochistan as its 70 percent population is directly or indirectly involved in livestock rearing activities. The province is rich in livestock resources contributing about 40 percent of Pakistan’s total livestock population, while Balochistan’s people keep animals traditionally for meeting household milk and meat needs. The main consumers of its livestock include leather, carpet and pharmaceutical industries. The province caters to the needs and demands of leather and carpet industries by sustaining the supply of skin, hide and wool to these sectors. A poverty alleviation strategy with main focus on livestock development can…
The woman from across the country contested July 27 election to the National Assembly and Provincial Assembly seats. The growing participation of women in politics and the decision-making process is a strong sign of weakening traditional and cultural practices of a closed society. Under the 1973 Constitution, all Pakistani citizens are equal, with no distinction based on gender alone. The new government led by Prime Minister Imran Khan needs to address the issues related to gender discrimination in different fields of human life in the country. In 2011, the approval of women’s rights bill was a step taken by former…
Last week, the Pakistani nation celebrated its 71st Independence Day with national enthusiasm and fervor. Balochistan, the country’s largest province with respect to area, is still facing a law and order problem in some of its remote areas due to separatist groups, who are engaged in a violent struggle against the state and its institutions. Some separatist elements backed by foreign forces have been trying to ban singing the national anthem or hoisting national flag in schools. Though situation has changed and is more better today, yet a need is direly felt to address the root causes of Balochistan conundrum.…
By virtue of its strategic location, Gwadar Port has greater scope and tremendous potential to emerge as distribution and logistics hub in the region and since it was highlighted as the future port of global investors with bigger potential, wider scope and brighter prospects to emerge as center of trade and commerce serving at least 20 countries in the Asian region, the existing hub of major economic and commercial activities in the region will open new vistas for insurance sector while the benefits were not only confined to Balochistan province but for the whole of the country. Some experts believe…
The risk perception — risks to life, assets and public and private properties — has been higher and widely prevalent in Balochistan where the incidents of suicide bombings and attacks on public and private properties have witnessed a phenomenal growth over the past many years. The reason is the poor law and order situation in the province, which is facing an insurgency-like situation. The other reasons include weak financial system, nominal industrial growth and inconsistent policies, which have so far hampered the growth of insurance industry in Balochistan. Insurance business generally grows on risk perception in a society. Larger the…
Overcoming the chronic energy shortage in Pakistan is going to be the huge challenge for the upcoming government, which will take oath this month after July 25 general elections. Time calls for opening up the resource-rich Balochistan for investments in oil and gas sector, as the acute gas shortage has led to the closure of many industrial units rendering thousands of people jobless across the country. Balochistan offers great opportunities in oil and gas exploration sector for local and foreign investors. The exploration projects can open up the province converting it into a land of opportunities for foreign investors. Oil…
The revival and development of two refinery projects, proposed one at Gwadar and other at Hub, in coastal Balochistan have their own strategic importance. Both are significantly linked to the China-Pakistan Economic Corridor (CPEC) worth $60 billion. Gwadar port is expected to serve as secure outlet for the Middle East and Central Asia oil and gas supplies through a well defined corridor passing through Pakistan. Deep-sea port at Gwadar, and future plans for important cross-national oil pipelines traversing the state would further enhance the region’s strategic value. The oil refinery at Gwadar will have a total capacity to refine 21…
Although not yet widely used, tidal energy has potential for future electricity generation. Tidal energy is an environment-friendly and more predictable resource, as compared to wind energy. The tidal energy is a form of hydropower that converts the energy obtained from tides into electricity. The cost for establishing a wave energy infrastructure is approximately equal to a wind-based power plant. Tidal power has not yet been operational in Pakistan compared to other renewable energy technologies. Tidal power plants in coastal creeks of the country however could play a role in overcoming the chronic energy shortage. In 1988, the National Institute…
The upcoming government-led by Imran Khan, the leader of Pakistan Tehreek-e-Insaf (PTI) who has taken absolute majority after July 25 elections-2018 is committed to invest in human resources. Human development remains the key in tackling the huge poverty challenge in the country. A healthy, skilled and educated population can work better for the economic progress of the country fully utilizing its capabilities and skills. For obtaining this human capital, there is a high need to resolve basic and pressing issues related to the education and health sectors. Balochistan is the country’s poorest province, with standards of living lagging substantially behind…
For obtaining health capital in Balochistan, there is a dire need to resolve basic and pressing issues related to the health sector. The health indicators in Balochistan like infant and mother mortality, are poorer than any other province. Major causes of water-related diseases include lack of water supply and sanitation facilities, absence of proper sewerage disposal, waste mismanagement and contaminated water. Malaria, Typhoid, Hepatitis, gastrointestinal and respiratory disorders are common in the province. These diseases can be prevented by facilitating the population with proper sewerage and sanitation disposal systems. In rural areas, the health status is relatively poor. Lack or…
Poverty cannot be tackled without having credible data and figures related to poverty incidence in Pakistan. Poverty reduction has been a major official development objective in the country over the past many years. Critics however blame the governments for downplaying the figures related to poverty incidence to cover up their respective acts of omission or commission. Despite tall claims of the present government about putting the economy on growth track, it is undeniable fact that, poverty level would increase in the coming days as dependence on foreign loans would hurt economy, ultimately pushing more and more people below the poverty…
Gwadar Port is set to bring least developed Balochistan into the economic mainstream of Pakistan and the whole Asian region. It will catalyze the development process in the province bringing it at par with other provinces. Development of an integrated transport system and future road and rail links to Central Asian Republics (CARs) and rest of the country will enhance the local peoples’ access to new vistas of development and prosperity. A fully operational Gwadar port provides the province enormous opportunities to exploit its mineral resources, which have so far been untapped. Gwadar seaport and the planned regional highway projects…
Forestry is an important sector, which has been the victim of sheer negligence of economic planners in Balochistan. No serious efforts were made toward forestry development and its promotion in the province. Fact of the matter is that forestry in the province has been confined to the protection of existing natural forests. No efforts were directed to raisef large plantations under natural conditions in potential areas of the province. Forestry, it is generally observed, does not attract the investors, as investments in this sector pays back after a longtime. Investors always look for quick and short-term returns; hence they preferred…
The telecom sector needs to be granted industrial status. Before the current fiscal year budget, a high-level representatives of telecom companies working in Pakistan had demanded of the government to grant telecom sector industrial status and slash down rate of withholding tax from 12.5 percent to 10 percent. The telecom representatives also asked provinces to bring down General Sales Tax (GST) on services including data from 19.5 to flat 16 percent. The telecom sector has witnessed impressive growth in the last four years. In 2014, 3G licenses were awarded to Jazz, Telenor, Ufone, and ZONG the last one was also…
Balochistan has enormous potential to emerge as Pakistan’s new economic frontier. Unfortunately, it still remains the least developed and poorest among the four provinces. Agriculture is the mainstay of provincial economy, as over 75 per cent of the population lives in rural areas. The crops contribute about 62 percent of gross farms income. This sector employs 67 percent of Balochistan’s total work force. Naseerabad, Jafarabad, Dera Murad Jamali and Usta Mohammed and many areas of central Balochistan are considered agricultural regions. Except Naseerabad district, there is no perennial system of irrigation. The area depends on rain, Karezat and tube-wells for…
A consumer is vital to any economic plan, strategy, policy and activity. The consumers may suffer if they have no information or imperfect information in the world of highly competitive markets. The completion gives consumers plenty of choices. Hence, the issue is misinformation or imperfect information of the consumers, who must be educated. In the given situation of ostensibly competitive market, a consumer protection policy is direly needed in Pakistan. The policy must address the need to lay down quality standards to provide specifications for goods and services to be provided in a country. Unfortunately, there is a widespread violation…
As the Gwadar Port has immense importance not only for trade with Central Asian Republics (CARs) but also for the development of Pakistan and of course Gwadar has the potential to become a hub of major economic and commercial activities in the region there is a high need for establishing roads and warehousing facilities at Taftan, Chaman and Torkham borders in order to make full use of Gwadar Port. The future scenario necessitates the establishment of a strong, well-coordinated and metalloid highway and road and rail network spreading across the province and interlinking the major commercial centers in Balochistan. The…