With a population of around 200 million, Pakistan has the potential to become next major internet market in terms of number of connected people in the next few years. According to one estimate, 9 percent of the country’s population went online during last year while another 30 percent are likely to get connected to internet in next three to five years. Presently, there are roughly 30 million internet users, who are the focus of entrepreneurs in Pakistan. The trend to use internet has been growing fast in Pakistan for the last one decade. As the trend grows faster, traditional business…
Author: Syed Fazl-E-Haider
Pakistan may seek help from China, its closest friend in order to develop automobile industry in Gwadar. Presently, China’s vehicle market is the world’s third-largest behind the United States and Japan, but the after-market segment is in its relative infancy. In the United States and Europe, after-market sales account for roughly 70 percent of the auto industry. According to an estimate, after-market sales accounted for one-third of the total industry in 2002 in China. It totaled roughly $23.7 billion in 2004. The sector has been growing at 8 percent a year and is on track to reach $31 billion this…
There is a great scope for developing tourism industry in Gilgit-Baltistan, which is home to more than fifty peaks above 7000 meters. The region has some of the world’s highest mountain ranges including Karakoram and western Himalayas ranges. The region’s enormous tourism potential can efficiently be tapped with improved air, road and rail connectivity. 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…
Historically, Gwadar has been the part of Oman. In late 1960s, Gwadar was purchased from Oman and in 1970 it was made a full-fledged part of Balochistan province. Oman and Balochistan also share cultural history. Oman has also made valuable funding to contribute to the development of Gwadar port city. A few years back, Oman had committed $100 million for the Gwadar port project, out of which $20 million had already been spent. The Omani government is committed to provide the remaining $80 million for various projects in Gwadar including the airport facility. Oman had been invited by Islamabad to…
Balochistan is the country’s poorest province, with standards of living lagging substantially behind the rest of the country. Socio-economic indicators in the province amply reveal that it is far and far behind from the other provinces and it needs more resources to come at par with other developed regions of Pakistan. What has actually limited the scope for financing the social sector development in Balochistan — the challenging social sector indicators, constraints in social service provision, and low investments in the social sector. A report of Sustainable Development Policy Institute (SDPI) calls Balochistan as the poorest of all provinces with…
In a fresh move against money laundering in the country, the State Bank of Pakistan (SBP) has directed money-exchange companies to keep a record of any transaction worth $500 or more. As per the new instructions, exchange companies are required to keep a copy of the identity card or passport of the person involved in the transactions. The Central Bank has directed the companies to identify the people who engage in transactions of the dollar. There are more than 50 foreign exchange companies operating in the country. The majority of foreign exchange transactions are handled by the banks in Pakistan,…
Balochistan government must continue to prioritize the development of social sector in the annual budgets. It is worth mentioning that development of the social sector has been the special focus of the Balochistan budget for the last three years and for this regard the development spending for education and health sectors had been significantly increased. For the next fiscal year starting from July 2018, the provincial government has set aside 16.5 percent of the total development budget for education, showing its priority for development of education sector in the province. It has allocated the second highest amount of Rs12.452 billion…
Islamic funds industry has not yet fully developed and diversified in Pakistan whereas Islamic finance can find rich social grounds for its growth and expansion in the country with over 95 percent Muslim population. What primarily concerns the users of Islamic financial services is the Shariah compliance of the services. Non compliance of Islamic law can result in withdrawal of funds from an Islamic bank. Hence, Shariah compliance is a serious matter for an Islamic financing and banking. The concept of Islamic finance needs to be introduced for the promotion of Islamic banking and insurance industry in the country. As…
Balochistan has vast potential in insurance sector, yet the sector could not play its due role in the local economy. Balochistan is the country’s poorest province. Agriculture, the mainstay of local economy, employs 67 percent of province’s total work force. The local work force and their dependents live in miserable socio-economic conditions. The insurance pay out can provide them some sort of monetary shield and lessen their sufferings to an extent. The province has tremendous potential in all economic sectors. Banks can help exploit the potential opportunities of industrial development in fisheries, agriculture, livestock and other sectors of local economy.…
With a development outlay of Rs88.3 billion, the Balochistan government unveiled Rs328.5 billion budget for the next fiscal year 2018-19 starting from July 1, 2018. The provincial government has set aside 16.5 percent of the total development budget for education, showing its priority for development of education sector in the province. Balochistan government has allocated the second highest amount of Rs12.452 billion for the education sector that would be spent on a total of 654 schemes, including 449 new and 205 ongoing. The education sector has suffered from years of neglect and under-funding. The province has a literacy rate of…
The handicraft work is common in the rural Balochistan, where mostly females having learnt the handicraft skills, actively engaged in raising a livelihood for their families. Females from all age are engaged in doing embroidery skills as majority of them belong to young age. The learning of embroidery is formal for majority of them, as they don’t undergo any specific training as generation are following the same practice for years but indeed it needs special skills to do it properly. Handicrafts can play an important role in women’s economic empowerment, especially in rural areas, where it is generally practiced at…
Addressing the post budget press conference, the Federal Minister for Finance Miftah Ismail said, “We have no intention to go for the bailout package.” The Minister for Finance disclosed that the government had secured $1 billion financing and it had no intention for getting any further bailout package from International Monetary Fund (IMF) and expressed confident that foreign exchange reserves would further improve in the coming days. If the government is not going to the international lenders like IMF for bailout, then what will it do in the fiscal year 2018-19? The government plans to borrow $11.6 billion from external…
Balochistan is the poorest province but it 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. Balochistan’s land along coastal belt has enormous potential…
Recent talks between Pakistan and China on second phase of Free Trade Agreement (FTA) could not reach a breakthrough. 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 in March in Islamabad between Pakistan and China remained inconclusive. It is worth mentioning that talks had started in 2012 between the two nations to finalize…
Though Balochistan has no sound industrial base, yet it goes to the credit of this province that it brought about an industrial revolution in the country through its energy resources, while under major China-Pakistan Economic Corridor (CPEC) projects Gwadar Port are expected to usher in a new era of industrial development in Balochistan. Balochistan is a strategically located province. The ongoing mega development projects like Gwadar deep-sea port would make the province a hub for regional transport more effectively for land locked Afghanistan and Central Asian states. This would accentuate the existing road network in Balochistan. Therefore Balochistan urgently needs…
The government had allocated Rs50 billion amount as privatization proceeds for the current fiscal year. It is yet to be seen whether it allocates any amount on this count in the budget for next fiscal year 2018-19. Since the beginning of the calendar year 2008, no board meeting of Privatization Commission has been held. The IMF said in its recent report that privatization and restructuring of key loss-making Public Sector Enterprises (PSEs) have been largely on hold. The report assessed that the combined accumulated losses of PSEs (including PIA, Pak Steel Mills, power sector) exceeding Rs1.2 trillion (4 percent of…
Balochistan is the country’s poorest province, with standards of living lagging substantially behind the rest of the country. Socioeconomic indicators in Balochistan amply reveal that it is far and far behind from the other provinces and it needs more resources to come at par with other developed regions of Pakistan. Poverty in the province is a consequence of several factors, including geography and low human capital. Many of these factors increase the cost of providing social services in the province. The backwardness rules supreme across the province. The people have run out of civic facilities and job opportunities at large.…
Having huge potential in livestock, dairy and poultry sectors, Pakistan has so far failed to capture its due share in the rapidly growing Halal market worldwide. The country is among top livestock producing countries with 160 million livestock and it can export Halal meat products to meet the rising global demand. Unfortunately, the country’s share is minimal in the $3 trillion estimated global value of Halal market. According to one estimate, the country ranked 18th in the production of Halal meat and its volume is just 3% of the global Halal meat production. In view of the rapid growth of…
Balochistan remained far behind other provinces in raising agricultural production. The agricultural growth is key to curtailing poverty, as agriculture is the mainstay of rural economy and over 75 percent population of the province depends on this sector for earning their livings. The province depends on rain, Karezat and tube-wells for irrigation while over 50 percent farmers rely on only irrigated crops, which are the main enterprise. Naseerabad, the only canal irrigated district, receives water from the tail end of the Indus River system at the time of sowing cotton and paddy. The key ingredients of future agriculture strategy should…
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). CPEC projects in now worth $62 billion which originally valued at $46 billion. The rise in cumulative cement dispatches is solely attributable to rising export volumes as domestic demand has so far remained depressed. 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. The cement sector will surely get a boost from the implementation…
Today, Pakistan’s financial sector has transformed into a modern and sound financial sector dominated by private banks. The country’s banking sector accounts for 75 percent of financial sector assets. The microfinance sector is significant in terms of financial access. Islamic finance is growing rapidly, and currently accounts for 11 percent of sector assets. The present government has launched the Pakistan Financial Inclusion and Infrastructure Project aimed at increasing access to financial services for households and businesses by improving usage of digital payments in the country. The World Bank has committed to provide $130 million finance for the project. The project…
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. Banking sector accounts for around three-fourth of Pakistan’s financial sector. The central bank’s quarterly performance review of the banking sector for the quarter of current fiscal year 2017-18 that ended on 31st December said improving asset quality, stable…
Balochistan is rich in mineral resources and having great scope for setting up small and medium enterprises in mineral sector. The government needs to work out a comprehensive plan and strategy to set up such mineral-based units in the province. The province is endowed with huge reserves of chromite. First discovery was made in 1901 at Muslim Bagh and Khanozai in district Kila Saifullah. Other occurrences of chromite include those of the Ras Koh Range in western Balochistan and Wad deposits of Khuzdar district. Zhob deposits were first discovered by Vredenburg in 1901 during the course of regional reconnaissance mapping…
In the current fiscal year, Pakistan rupee has been depreciated number of times against the US dollar before decreased in value by five percent in the interbank foreign exchange market on March 20, this week, when it fell from 110.57 a dollar in the interbank foreign exchange market to $115. It was the first time since December 2017 when the local currency plunged to record low against the dollar as it was traded at Rs110 for a dollar in the interbank market. A rising dollar against rupee reflects the country’s reliance on imported goods. The country’s trade deficit has stood…
Since January 2018, Pakistan has witnessed a persistent rise in oil fuel prices. 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 March 2018 OGRA suggested increasing petrol prices by Rs 3.56 per liter which was approved by the government. Pakistan’s demand for petrol is likely to increase in the coming years. The demand for petrol will cross 8m tonnes by 2019-20 from…
As the nation celebrates Pakistan day on 23rd of March, it is the right time to highlight the ideals and views of the father of the nation Quaid-e-Azam Muhammad Ali Jinnah especially with regard to his vision of Pakistan as federal state. Today, Pakistan is beset by multi-dimensional challenges. The nationalism must replace sectarianism and parochialism. Similarly, peace and tolerance should replace terrorism and extremism. These miracles are possible if all segments and institutions of society stand unanimous and united on one national agenda of strengthening Pakistan. The country needs to activate the forces of national cohesion and weaken the…
Poverty should be more comprehensively measured through an index that uses multiple indicators. These may be broadly categorized as socioeconomic and demographic indicators related to income and wealth, housing, transport and communication, education, health and gender equality. Pakistan is a country where up to 40% of its over 210 million population lives below poverty line- on less than $1 a day or less. Despite tall claims of the officials about putting the economy on growth track, it is undeniable fact that, economic divide in the country would widen in the coming days as dependence on foreign loans would hurt economy,…
Pakistan is an underdeveloped country where nearly 40 percent of its population lives below poverty line. The low income groups of people cannot afford to set aside some cash for their health expenses on monthly basis. The majority of population looks and turns to the government hospitals. It is the duty of the government to make arrangement for wider coverage of poor sections of society by launching health insurance schemes. Such schemes must provide the people living below the poverty line the best possible treatment at government’s expense. Health insurance scheme is an urgency for the poor and down-trodden sections…
Though Balochistan has vast potential in insurance sector, yet the sector could not play its due role in the local economy. Balochistan is the country’s poorest province. Lack of awareness about the insurance business has been the biggest constraint in the growth and development of insurance industry in the province. There is need to highlight the importance of life insurance, which provides income and security for dependents after the death of the life-insured person. State Life is the country’s largest life insurance organization with its largest market network and geographic presence across the four provinces. It provides financial services and…
Pakistani market currently has the presence of leading international fast food franchises and consumer brands, which are successfully doing their business in the country. This franchise model is actually transferring improved training, technology and business know-how to the local market. This model generates world class professional knowhow. There is a lot to learn from this global franchise model both for the local business chains and the consumers. Foreign brands also give Pakistan a soft image. It is just because of the fast food franchises that we have the presence of auxiliary industries like the home-delivery service and suppliers of quality…
Balochistan will take years to come at par with developed regions of the country. The policy makers in Quetta 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 the province. The recent efforts on the part of the government in developing the social sector will only be fruitful if the funds are properly, rationally and honestly utilized through a well-developed institutional network. The lack of institutional framework has been the main cause of underutilization of annual development funds in the province. It…
Pakistan direly needs a comprehensive auto policy especially in the two-wheeler segment that could attract new foreign manufacturer and create a healthy competitive business environment. Presently, the country is a Japanese-dominated market. Volkswagen, the Germany’s biggest and the world’s second largest automobile manufacturer in terms of market share, has shown its willingness to do business in Pakistan, provided a competitive business environment is available. Plan to break the monopoly of existing car assemblers will not succeed unless and until the unholy alliance of assemblers and bureaucrats is not broken. It is this nexus that has ever blocked preferential incentives for…
Sector development in the emerging Gwadar port will help facelift provincial economy Development of automobile industry in the least developed Balochistan would help diversify the provincial economy. It would also create more employment opportunities to the people of the province. The strategically located province has, however, the potential to emerge as a strategic manufacturing and assembling hub for the country’s automobile industry. Unfortunately, the car-snatchers have taken advantage of Balochistan’s geo-strategic position turning the province into a haven for hijacked vehicles. Automobile is an export driven-industry providing lucrative investment opportunities for foreign investors. Though Pakistan automobile market witnessed a rapid…
Pakistan needs to explore indigenous oil and gas reserves. It has been observed that gas available from the new discoveries made by foreign companies is much costly than the gas produced by the Pakistan Petroleum Limited (PPL) at Sui in Balochistan. Therefore, the exploration option will be more practical and viable in economic sense and it would also be rational to explore the indigenous energy resources than to go for import of gas from other countries. Balochistan offers great opportunities in oil and gas exploration sector for local and foreign investors. The exploration projects can open up the province converting…
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 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 great scope for development of tourism industry in Gilgi-Baltistan, which is home to more than fifty peaks above 7000 meters. The region has some of the world’s highest mountain ranges including Karakoram and western Himalayas ranges. The region’s enormous tourism potential can efficiently be tapped…
With the induction of global brands and outlets, Pakistan’s retail sector at present witnessing a booming and impressive growth. The local retailers are expanding their boundaries to compete with their larger foreign competitors. In 2013, seven Pakistani brands were nominated for the first time for the World Retail Awards held in Paris, in which three brands were shortlisted. Many local brands have expanded and gone global by adopting fast-changing trends. With an estimated size of the retail market at around $50 billion, the country’s retail sector is growing faster than its economy. But still there is long way to go…
If the China-Pakistan Economic Corridor (CPEC) completes on-time and Gwadar Port becomes fully operational as hub port, it will change the fortune of the most backward and the country’s poorest province — Balochistan. Lack of infrastructure is the single most important reason that discourages investment for industrial development in Balochistan. It is the least developed province, which is also far behind from other provinces in road sector development. The province has a road network comprising about 25,099 kilometers, which is less than that of the other provinces. The existing road network in Balochistan is in a dire need of maintenance…
Balochistan contributes 34% national production of apple and 70% of dates. Nature has bestowed the province with so many natural resources and its favorable climate and various plateau of land further enhanced its importance by producing dates, cherries, apricot, pomegranate, grapes and apples. The strategically located province offers access to new resources and markets and the prospect of more rapid growth. The province’s geo-strategic location makes it the most attractive for transit traffic to the landlocked Central Asian Republics (CARs). Gwadar port would provide Afghanistan and the CARs the shortest and fastest access to the warm waters of the Arabian…
Pakistan’s fraternal relations with Oman attach immense importance along with considerable scope to enhance cooperation in trade, commerce, investment and other economic sectors. These two nations have excellent close, warm, brotherly, cordial and deep ties. Oman is taking keen interest in creating closer linkages between Pakistani and Omani sea ports and in this regard there is likely possibility of launching government-to-government and commercial Ferry Service between Pakistan and Oman. An ambitious plan of building Gwadar Port, which will not only a game changer for Pakistan’s economy but will also helpful for the other Asian nations economic growth. With huge investment…
Consumer financing products include credit cards, personal loans, auto loans and housing mortgage. It not only contributes towards facilitating the life patterns of consumers, but it also proves to be a source of improvement for the image of banks. 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/she…
Tourism has been the fastest growing industry of the last decade, as disposable incomes grow throughout the world. The rapid expansion of tourism industry has brought economic benefits to many contemporary societies. Pakistan can earn millions of rupees in terms of foreign exchange by developing tourism industry in Balochistan. Infrastructure, organization and management are the key areas relating to the development of tourism in the province. The tourism issues also need to be reviewed from a sociological perspective. The government must take significant steps to exploit fully the coastal tourism potential of the province. By virtue of its natural treasure…
Today, a company creates, maintains and optimizes business relations with consumers and other businesses using tools and practices involving Internet technologies. This is precisely e-commerce, which is an information technology trend developing fast in the business world. It includes selling, buying, advertising and contacting buyers with credit card or digital cash, by transfer of data between different companies using Internet through online facility. Co-founded by three individuals Usama Arjumand, Akhter and Saad, Shopsy is a local Google for online shopping. The co-founders with a diverse combination of specialties are active to change how Pakistani people shop online. Shopsy presents a…
Balochistan is the most backward province, which is also far behind from other provinces in economic development. The least developed province lacks infrastructure that discourages investment for industrial development. The existing road network in Balochistan is in a dire need of maintenance and repair. A coordinated network of roads does not interlink 32 districts in the province and hence there are missing links between economic centers in Balochistan. The limited road access and lack of road network affect the inter-connection of trade for the people of rural areas reducing their access to markets. If the mega development projects go on…
The government had given oil refineries a dead line up to June 2017 for the fourth time and asked the refineries to complete the isomerization and diesel hydro de-sulphurization projects in order to enhance petroleum production and produce environmentally friendly Euro-II fuel. Economic Coordination Committee (ECC) has already withdrawn its multi-million dollar bailout package for oil refineries that was meant for them to deposit the ‘extra earnings’ in an Escrow account and then use the proceeds to upgrade their plants to produce higher quality fuel. The package was approved by the former government in order to allow oil refineries collect…
Time calls for opening up opportunities in the resource-rich Balochistan for investments in oil and gas sector, as the current acute gas shortage in the country has led to the closure of many industrial units rendering thousands of people jobless across the country. The new exploration projects can open up the province converting it into a land of opportunities for foreign investors. Pakistan’s gas reserves are rapidly depleting as the country faces acute gas shortage to run its industry and meet the domestic needs. Gas load shedding has become a routine in major industrial cities of the country. Balochistan is…
Corporate Social Responsibility (CSR) is a form of corporate self-regulation integrated into a business model. It is also known as corporate conscience, corporate citizenship, sustainable responsible business (SRB), or corporate social performance. It is actually about how companies manage the business processes to produce an overall positive impact on society. According to the World Business Council for Sustainable Development, CSR is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large. Ideally, CSR policy…
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. Only the educated, skilled and healthy people can make the best use of the enormous natural resources of the province. Therefore in any development strategy for the province, human development should be the key factor, as the province has short of professionals and development experts. The province needs academicians, research scholars and professionals, as institutional and…
Govt must devise a pro-active strategy for capturing more market share of shrimp business in the global market 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 km and a total area of approximately 0.25 million square kilometers of marine and 0.08 million sq km of inland waters. The sector has an export potential of $1 billion annually and it provides direct employment to about 379,000 fishermen and 400,000 people are employed in ancillary industries. The country’s total stock of…
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…
China-Pakistan Economic Corridor (CPEC) has the potential to usher in a new era of economic progress and prosperity for both countries benefiting the whole region as well. Work on $47 billion CPEC is currently underway. Gwadar Port in Balochistan is essential part of CPEC, which involves construction of highways, railways and energy pipelines connecting western China with Pakistan and the Persian Gulf. After construction of the proposed rail, road and pipeline projects between China and Pakistan, Gwadar port will handle most of the oil tankers to China. Gwadar has the most advantageous location for an alternative port in the region…
Pakistan’s wheat production can be increased by expanding wheat cropping area in Balochistan, which is the country’s largest province with respect to its landmass. According to one estimate, out of the total geographical area of 34.719 million hectares, the province has a cultivated area of 1.989 million hectares and 4.826 million hectares of land falls in the category of cultivable wasteland. Need is to reclaim this cultivable wasteland and this can only be done if the capacity of the Provincial Agriculture Engineering Department is enhanced by providing it additional machinery and bulldozers. Presently, Balochistan is a wheat-deficit province. It excessively…
This year, Pakistan is celebrating 141st birth anniversary of Quaid-e-Azam Muhammad Ali Jinnah from 20th December to 31st December as part of 70 years celebrations of Independence of Pakistan with national zeal under the theme “Hamara Quaid and Main Hun Quaid Ka Pakistan”. This is the right time to highlight the ideals and views of the father of the nation especially with regard to his vision of Pakistan as federal state. Today, Pakistan is beset by multi-dimensional challenges. The nationalism must replace sectarianism and parochialism. Similarly, peace and tolerance should replace terrorism and extremism. These miracles are possible if all…
Balochistan is a strategically located province. The ongoing mega development projects like Gwadar deep-sea port would make the province a hub for regional transport and more effectively for land locked Afghanistan and Central Asian states. This would accentuate the existing road network in Balochistan. Therefore Balochistan urgently needs a mega road sector development project to cope with the new circumstances after the completion of mega projects in the province and expected surge in economic activities in the province. Its geo-strategic location makes it the most attractive for transit traffic to the land locked Central Asian Republics (CARs). It provides greater…
With both its merits and demerits, media is a double edged sword. It has become an industry of entertainment, information, projection and propaganda. It influences and builds opinion on certain issues of local, national and international importance. It can play a vital role in projection of a nation’s image across the globe. It can export and import both virtues and vices for a country. Rapid development and advancement of electronic media in Pakistan has not only brought a revolution in information and news industry but it has also stirred concerns about the projection of the nation’s image. Media projects a…
The Pakistani rupee continues to weaken against the US dollar after the central bank withdrew its support earlier this month. The local currency has plunged to record low against the dollar as it is presently being traded at Rs107-110 for a dollar in the interbank market. The rupee, which has mostly traded in a tight range of 104-105 per dollar since December 2015, shed over 5 percent in the past three sessions last week. Market analysts predict that the rupee is likely to settle somewhere from 110 to 111 and they believe that it would not be allowed to pass…
Balochistan is rich in livestock resources contributing about 40 per cent of Pakistan’s total livestock population. 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 Hyde and wool to these sectors. Being a pastoral economy Balochistan is yet to exploit its tremendous potential in livestock sector. Animals are traditionally kept for meeting household milk and meat needs. Livestock development is linked with poverty alleviation in the province, as its 70 percent population is directly or indirectly involved in livestock…
This venture between Pakistan-UAE likely to fetch 250,000 bpd of oil Khalifa Coastal Refinery (KCR) project is a joint venture between Pak-Arab Refinery Company Limited (PARCO) and International Petroleum Investment Company (IPIC) of United Arab Emirates (UAE). The KCR project, which was scheduled to be completed by end of 2012 has been in doldrums since 2009. This year, the PARCO made up its mind to establish a state-of-the-art deep conversion coastal refinery with capacity to refine crude oil up to 300,000 barrels per day at the Khalifa Point near Hub in Balochistan. For this purpose, the board of directors of…
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 major role in overcoming the chronic energy shortage. In 1988, the National Institute of Oceonography (NIO) had conducted a study that showed that the 17 creeks on the coastal belt of Pakistan could generate tidal energy sufficient to meet the requirements of coastal areas at very cheap rates. Unfortunately, the study was shelved by the powerful bureaucracy for unknown reasons. The tidal energy is a form of hydropower that converts the energy…
[dropcap]T[/dropcap]he Oil and Gas Regulatory Authority (OGRA) recommended an increase in the price of petroleum products to the federal government from December 1. An increase of Rs1.48 for petrol was recommended by OGRA, while kerosene oil had a suggested increase of Rs15.35 and an increase of Rs13.15 had been recommended for ligh-speed diesel. The government revised prices of petroleum products, increasing the price of petrol by Rs2.49 per litre from November 1. Prices for high-speed diesel (HSD) was increased by Rs5.19 per litre, while the price for light-speed diesel (LSD) was increased by Rs3 per litre. The government also increased…
[dropcap]S[/dropcap]trategically located Balochistan 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 and on the other the most important international sea routes pass by the Balochistan coast. By virtue of its geographical location, it is considered a strategic part of trans-national pipeline corridors, which are currently in the planning stage. The province 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…
[dropcap]T[/dropcap]he current demand-supply situation in the cement sector indicates excess cement production capacity. During the past one decade, the cement manufacturing has been buoyant in Pakistan and the industry has shown tremendous growth in recent years. Owing to the increasing local and export demand due to rising construction activities and regional cement shortages, Pakistani cement sales jumped to exceptionally high. The cement export to Iraq, Iran, India, Afghanistan and UAE witnessed an exceptional growth in the past one decade. Major markets for Pakistan cement exports were Afghanistan and the UAE. The remarkable performance of cement sector was due to the…
[dropcap]P[/dropcap]akistan 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…
[dropcap]T[/dropcap]hough health sector remained the focus of welfare programs launched by every government in the past, but the leakage, misuse of public funds and irregularities in this sector provided almost zero relief to the poor people in the most backward areas of the country. The government hospitals remained the only option for the poor and downtrodden segments of the society, who compelled to face the arrogant behavior of the hospital staff, as they cannot afford the high expenses of private treatment and costly medication. There have been wide complaints about the shortage of medicines at the government hospitals and the…
[dropcap]T[/dropcap]he concept of Islamic finance needs to be fully introduced for the promotion of Islamic banking and insurance industry in Balochistan. Islamic banking is one of the emerging fields in global financial market. It is growing at very fast pace all around the world. Pakistan has also achieved significant progress in Islamic banking. The primarily concerns for the users of Islamic financial services is the Shariah compliance of the services. Noncompliance of Islamic law can result in withdrawal of funds from an Islamic bank. Hence, Shariah compliance is a serious matter for an Islamic bank. According to a recent estimate,…
[dropcap]E[/dropcap]commerce trade has promising future in Pakistan as this market is getting pace with the rest of the world with budding online shopping is growing while e-commerce giants like Alibaba taking interest in investing in the country. The trend to use internet has been growing fast in Pakistan for the last one decade. As the trend grows faster, traditional business is being converted into internet business where all transactions are done online, from selection of product to payment of bills. The business on the internet is less costly and more beneficial. It is becoming very popular mode of trading around…
[dropcap]I[/dropcap]slamic Finance can find rich social grounds for its growth and expansion in Pakistan. What primarily concerns the users of Islamic financial services is the Shariah compliance of the services. Noncompliance of Islamic law can result in withdrawal of funds from an Islamic bank. Hence, Shariah compliance is a serious matter for an Islamic bank the concept of Islamic Finance needs to be introduced for the promotion of Islamic banking and insurance industry in the country. As a regulatory authority of the insurance sector, the Securities and Exchange Commission of Pakistan (SECP) should take initiatives to tap the country’s enormous…
[dropcap]B[/dropcap]alochistan 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 and solar thermal devices. In the past, the government planned to undertake the following projects for development of the renewable energy resources including installation of windmill and solar energy systems in coastal areas and a detailed feasibility study for the remaining area at a total cost of Rs20 million. The experts consider renewable…
[dropcap]G[/dropcap]wadar port will prove a milestone in promoting regional trade between Pakistan, Iran, Turkey, Afghanistan and Central Asian states (CARs) under the Economic Cooperation Organization (ECO) objective. It is deep-sea port in the warm-water of the Arabian Sea at Gwadar in the province of Balochistan-Pakistan is very important part of the Central Asia region. Gwadar port is being developed into an international port with huge investment of China and the road network is being completed with the assistance of Asian Development Bank, which will connect CARs with this port and would generate massive economic activity in the region. The goods…
[dropcap]W[/dropcap]ith an estimated size of the retail market at around $50 billion, the country’s retail sector is growing faster than its economy. But still there is long way to go and some key initiatives by the government and entrepreneurs need to be taken to meet the future challenges confronting retailing industry in Pakistan. Today, we find in our cities big shopping malls and hypermarkets and small and medium scale outlets providing with various different categories of products under one roof. The phenomenal growth in retail sector bodes well for the country’s economic health, as the sector can create enormous job…
[dropcap]B[/dropcap]alochistan is a tribal society where women are seen to be discriminated, exploited, oppressed, browbeaten, and chastised in the name of so-called social practices- rooted in medieval times. It is harder to challenge the long-cherished traditions of the society. A change in the status quo will take a long time. It is the history, culture and tradition, which determine the status quo in a society and is also a fact that the history and tradition cannot be abandoned immediately and completely. The Women Protection Bill, 2006 was strongly opposed by majority of members of the parliaments, particularly the Islamist parties…
[dropcap]O[/dropcap]ver the past one decade, the businessmen associated with the real estate market made quick millions. The country has witnessed a real estate boom as the number of new builders and real estate developers are announcing new housing schemes across the country. The property prices are going up continuously. It is unaffordable for common man to buy a property for his residence. If one resorts to banks for loan, the mark up on such loans is so high that finds it almost impossible to payback the borrowed money. The real estate sector constitutes 2 per cent of the country’s GDP…
[dropcap]T[/dropcap]here is a great scope for setting up small and medium enterprises in mineral sector of Balochistan, a famously rich province of Pakistan in number of mineral resources i.e. chromite, barytes, sulphur, marble, iron ore, quartzite, limestone and coal. Gold, silver, iron and copper are more well known and important minerals available in the province, mostly found in Chagai district. The country is currently producing 50 minerals and effectively about 40 minerals are exploited in Balochistan. Ironically, despite of these rich resources and time-to-time investment by the foreign countries into the province, the full utilization of natural resources for the…
[dropcap]I[/dropcap]n wake of the US move against a Pakistani bank in New York, Pakistan needs to establish and strengthen its banking channels with friendly countries including China, Iran, Turkey and Malaysia. The banking Channels play an important role in enhancing the trade of a country with its major trading partners. In the Asian economies, the investors and businesses are looking for more supportive financial services, with a demand for financing solutions, hedge funds, and asset-based securities. Pakistan needs a jump start to enhance the trade volume and diversify its exports to China and other countries. It would be a colossal…
[dropcap]I[/dropcap]n August, the New York State Department of Financial Services (DFS) sought to impose about $630 million penalty on HBL’s New York branch for charged violations of certain rules and regulations. The bank was also ordered to surrender its license to operate in the state, effectively removing it from the US financial system. The DFS move against HBL gives rise to many questions? Is Habib Bank Limited (HBL) really involved in violations of laws and regulations internationally designed to combat illicit money transactions or a BCCI like episode is being repeated with another Pakistani bank? Has HBL been chosen by…
[dropcap]P[/dropcap]akistan is a country where up to 40 percent of its over 207 million population lives below poverty line — less than $1 a day or less. Despite tall claims by the officials about putting the economy on the progressing track, it is undeniable fact that, economic divide in the country would widen in the coming days as dependence on foreign loans hurting the economy and ultimately pushing more and more people below the poverty line, while the country’s ballooning external debt and liabilities continue to burden its economy. The economic inequality in Pakistan has grown even though consumption based…
[dropcap]C[/dropcap]onstituting merely 2 percent of the country’s GDP, the real estate sector can still grow and account for 5 percent of GDP. Efforts should be made by the government to revive the real estate sector. The government 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. For the development of housing sector, government must reduce excise duty on cement, eliminate excise duty on wires and cables, increase in limit of tax exemption on mark-up, bring improvement in lending ratio and increase…
Star Farm taking lead in vocational training plan to promote income generation and employment opportunities in rural areas of the province [dropcap]W[/dropcap]ith 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…
Initiative of Zia Chishti is a role model to broadly project Pakistan’s image [dropcap]T[/dropcap]he business leaders best suited and needed in Pakistan should be like Zia Chishti, who recently took an unprecedented step to convince the foreign investors that Pakistan is a safe country to do business. He urged the investors to understand the country first to understand his company. Chishti embarked off a helicopter — skiing his way downhill in the northern snow capped peaks of Pakistan, with the aim to convince the foreign businessmen that the country that was once recalled by the renowned economist as ‘the world’s…
[dropcap]C[/dropcap]hina-Pakistan Economic Corridor (CPEC) is expected to be a ’game changer’ not only for Pakistan and China but also for the whole region. The CPEC has the potential to usher in a new era of economic progress and prosperity for both countries and benefiting the whole region as well. Work on $47 billion CPEC is currently underway in which Gwadar port in Balochistan is essential part of this project involving construction of highways, railways and energy pipelines connecting western China with Pakistan and the Persian Gulf. After construction of the proposed rail, road and pipeline projects between China and Pakistan,…
[dropcap]T[/dropcap]he development of $47 billion China-Pakistan Economic Corridor (CPEC) allows China the access to energy-rich Middle East and Central Asia. The CPEC is actually the part of the One Belt, One Road (OBOR) initiative, a game changer project, proposed by China’s President Xi Jinping in 2013. China’s ambitious OBOR program is not merely a way of reviving ancient trade links between Asia and Europe but it is likely to have massive economic and geo–political impact on various regions in Asia and Europe. In South Asia, the OBOR is in execution stage in the shape of CPEC. In May 2017, China…
[dropcap]T[/dropcap]he recent bye-election for the National Assembly seat of 120 constituency in Lahore is the liberal sign of the country transforming from a patriarchal to a more open society. The election was mainly contested between the two woman candidates of rival political parties. The growing participation of women in politics and in the decision-making process with other women empowerment plan is a strong sign of weakening traditional and cultural practices of a closed society. But it is, however, still hard to challenge the long-cherished traditions of the society. A change in the status quo will take a long time. It…
[dropcap]S[/dropcap]ocial sector in Balochistan suffered from neglect for years. Investments in education and health sectors mean formation of human capital that can tap the province’s natural endowment. The underdeveloped education and health sectors contributed largely to the prevailing backwardness in the province. The social indicators are appalling in the province with illiteracy nearly at 60 percent, a small scattered population in large area, low primary school enrolment ratio and insufficient facilities for healthcare. No doubt, a healthy and educated population is a real capital or human capital that can ensure development of vast natural resources in the province. Poor education…
[dropcap]A[/dropcap]utomobile 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 one 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. The present economic managers should take some practical measures to exploit the geo-strategic position of the province for developing automobile market for the region. Pakistan may seek help from China, its closest friend in order to develop automobile industry in Gwadar. China’s vehicle market is…
[dropcap]T[/dropcap]he government has finally approved a new Automotive Development Policy for five years (2016-21) after a delay of almost two and a half years. The new auto policy was announced by the Economic Coordination Committee (ECC) of the Cabinet offers tax incentives to new entrants to help them establish manufacturing units and compete effectively with the three well-entrenched Japanese assemblers, however, there is no change in the policy for the used car imports. The new policy could attract new car producers especially from China, the European countries and other Asian nations as they can set up manufacturing units here with…
[dropcap]G[/dropcap]wadar port is equally attracting the interest of the local and foreign investors. The government has recently decided to set up a tax-free industrial zone of international standard in Gwadar. The government is reportedly offering more concessions to foreign investors for the development of second phase of Gwadar port project. In the past, a number of countries, including those of the region, had expressed their willingness to establish duty-free industrial zones in Gwadar. The investors and entrepreneurs particularly from Central Asia, Afghanistan, China, South Korea, Japan and Singapore showed a keen interest in establishing industrial estates in Gwadar. China and…
[dropcap]C[/dropcap]ement is the essential constituent of construction activity. Presently, the total installed capacity of 28 cement plants is 17.312 million tonnes in Pakistan. The industry witnessed a steady growth rate of 8 percent until 1994. Before 1994, the country was facing shortage of cement that was met through imports. In 1999, the country’s total production was estimated at 10.384 million tonnes. In the past three years the cement industry has been facing a crisis situation. With a share of Rs40 billion per year in the GDP, the cement sector contributes Rs15-20 billion per annum to the national exchequer. Pakistan offers…
[dropcap]T[/dropcap]he burgeoning population and rapid urbanization calls for more and affordable housing schemes in Pakistan. Constituting 2 percent of the country’s GDP, the real estate sector can still grow and account for 5 percent of GDP. Efforts should be made by the government to revive the real estate sector. It must announce a drop for interest rates of mortgage loans in a move to encourage potential investors to invest in properties. It must take serious steps to check speculations in the property market and should bring the prices of the real estate within reach of the common people. Such steps…
[dropcap]D[/dropcap]espite security concerns in Pakistan, the country has witnessed an influx of foreign retail brands. It is a fact that international brands are making entry into the country’s lucrative market by opening their franchises in mega cities and towns. Certainly, the growing number of international entrants in the local market establishes this fact. This year, Xiaomi, a Chinese brand and the world’s third largest smartphone maker made entry into the Pakistani market, a booming market of mobile consumers worth 40 million. China’s most popular smartphone brand has partnered with a Pakistani company ‘Smart Link Technologies’ for distribution and after-sales service,…
Systematic collection of data on home-based workers and their contribution needs to be institutionalized [dropcap]G[/dropcap]rowing presence of foreign brands in the Pakistani market has somewhat flourished a culture of brands in the country. The people are now becoming conscious about branded clothes, shoes, watches, utensils and even branded eatables and for many other things people prefer the foreign name. But the enriching culture value of Balochistan is still having very unique kind. Balochistan have always been very mythical and mysterious to the rest of the country. Its people have strong sense of respect for the culture and they do everything…
[dropcap]P[/dropcap]akistan’s stock market can manage to survive the political upheaval in the country. This is evident from the recent disqualification of prime minister Nawaz Sharif over the Panama Papers case by the Supreme Court. Following the ouster on July 28 of Sharif, the country’s stock market tumbled but after an initial fall in the same trading day, the market began to recover gradually. Actually, there are concerns on economic front. Dwindling foreign exchange reserves, rising foreign debt obligations and a sliding Pakistani rupee against the US dollar are the key concerns adversely affecting the market sentiments. The country witnessed a…