Pakistan Economy: News & Discussion

Krusty

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Evolution at work. Centuries of goat/cow/Camel fucking results in enlarged penis as a means of natural adaptation. Maybe you lot should try sticking to humans for sex. You will see the difference in another few centuries.

Good luck. There is no fix if you are the problem. Oh wait, you believe God clapped his hands and poof! Adam and Eve appeared. Fuck evolution right?
 

Kshatriya87

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Fun Fact:

Pakistan has less than 13000 ATMs for entire country.
POS machines are around 53000.
Payments cards issued : 3.6 crores(debit + credit + ATM cards)

For a country of 200 million population that is far too less, card usage also seems to be pretty low..

For comparison
India has 2.1 lakh ATM , POS machines around 2.7 million
payment cards for India : 108 crores

China is number one in number of ATM deployment followed by US.
Good point. But India still needs more ATM concentration.
 

mayfair

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Some facts and figures

GDP of Pakhanaland- $283 billion

GDP of Mumbai- $310 billion

****
Power and electricity
Pakahanaland:
Installed capacity- 25,000 MW
Peak demand- 22,000 MW
Peak Generation- 12,328 MW (within last 1 year)

Gujarat, Installed capacity- 28,950 MW

*****

I could go on, but then what's the point.

India must aim higher.
 

Kshatriya87

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Pakistan pays $4.8b in external debt servicing

ISLAMABAD: A Senate panel on Wednesday questioned the government’s strategy of taking new loans that has caused an exponential increase in borrowings as the cost of external debt servicing mounted to $4.8 billion in 11 months, which has almost doubled in the past four years.

From July through May of 2016-17, Pakistan spent $4.794 billion on repaying external loans and the interest on them, according to the Ministry of Finance.

This includes $3.6 billion in principal loan repayments and another $1.2 billion in interest payment. The figure is expected to cross $5 billion once the full fiscal year data is available.

In 2012-13 – which was the last year of PPP government – the cost of external debt servicing was only $2.6 billion. Since then, the external debt servicing is rapidly growing and is now eating over one-fourth of export proceeds of the country.
 

Kshatriya87

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Govt borrowing from banks surpasses Rs1trln mark in FY17

KARACHI: Government borrowing from commercial banks has surpassed the Rs1 trillion mark during the last fiscal year ended in June, mainly due to high public spending.

The State Bank of Pakistan data released on Thursday showed that the government borrowed Rs1.087 trillion from banks for budgetary support in FY17, up 37.38 percent from a year earlier.

A widening budget deficit caused surge in bank borrowing during the last fiscal year. An increase in public spending, especially development and defence, weaker tax revenues and lower foreign inflows continued to weigh on public finances and pushed bank borrowing significantly up.

The slowdown in non-tax revenues caused by decline in inflows from the coalition support fund also contributed to a rise in bank borrowing. The government met a bulk of its financing requirements through borrowing from the SBP.

The SBP’s figures revealed that the government borrowed Rs711 billion from the central bank to fund its budget-related spending in FY17. However, it repaid an amount of Rs369 billion in debts to the SBP in the previous year. The government resumed reliance on SBP financing since the first quarter of last year, following the completion of the IMF-supported Extended Fund Facility Programme.
 

Kshatriya87

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Devaluation another hazard for battered Pak market

Signs that Pakistan, home to one of the world’s top five stock markets last year, is headed for a currency devaluation is giving investors another reason to stay away from the world’s newest emerging market, reports Bloomberg.

Foreign reserves are falling, the current-account deficit has more than doubled in less than a year and the benchmark KSE100 Index has lost its mojo. Now Moody’s Investors Service has joined the International Monetary Fund, which said last year the rupee is as much as 20 percent overvalued, in urging the central bank to abandon its grip on the currency and allow more flexibility.

The currency pressure comes as Prime Minister Nawaz Sharif and his family are at the centre of an investigation into alleged corruption. An election next year and the makeup of the country’s borrowing -- nearly 31 percent of outstanding government debt was in foreign currency in the 2016 financial year, according to Moody’s -- are adding to the stakes.
 

Cutting Edge 2

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More isolation for Pak.

S.Korea reconsidering investment plans in Pak.

South Korea's Daelim Industrial Company Limited, which is leading a consortium to develop the 500 MW Chakothi Hattian Hydropower Project on the Jhelum in Muzaffarabad, is reconsidering its investment in the venture.

This after financiers such as the Asian Development Bank, International Finance Corporation and Exim Bank of Korea expressed their inability to back a project in a disputed area. The information minister of PoK Mushtaq Ahmed Minhas has confirmed the development.

Further, other Korean-financed ventures in the region, such as the Kohala Hydropower project, may also be stalled.


http://indiatoday.intoday.in/story/india-seoul-hydropower-pakistan-occupied-kashmir/1/1007273.html
 

Neo

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American SMEs looking to invest in Pakistan
By Imran Rana
Published: July 21, 2017


A man holds his briefcase. PHOTO: REUTERS

FAISALABAD: America’s small and medium enterprises (SMEs) are trying to invest in Pakistan, giving entrepreneurs here an opportunity to launch joint ventures with them, reveals Stephen P Knode, Commercial Counsellor of the United States.

“It will not only provide Pakistan entrepreneurs new technology and capital, but will also open new avenues for export of their products,” he said.

Trade between Pakistan and America was increasing at a steady pace and exports from the latter stood at $2.1 billion in 2016 while its shipments in the first five months of current calendar year were worth $1.3 billion, Knode said during a meeting with business community at the Faisalabad Chamber of Commerce and Industry (FCCI) on Thursday.

British firm to pour $400m in Pakistan for cement plant

He emphasised that the US was trying its best to promote bilateral trade under its commercial diplomacy.

“It is in this respect that offices of the commercial counsellor have been shifted from Islamabad to Karachi, which is the main hub of business and industrial activities followed by Faisalabad that contributes 20% to the national gross domestic product,” he said.

Knode pointed out that the US commercial service department had stepped up efforts to guide and facilitate new investors.

Over the past five years, the USA-Pakistan Business Opportunities Conference was being regularly organised. Last year, the conference was held in New York while in 2015 it was organised in Islamabad.

“This year, we expect to arrange it once again in Pakistan,” he said, adding it was for the first time many Pakistani companies had opened their offices and outlets in the US and they were being fully supported by the US commercial service department.

Responding to a question about the challenges faced by American companies in Pakistan, he said these were the same as experienced by Pakistan investors, which included energy shortage, labour and security challenges.

He disclosed that both countries would exchange at least 20 trade delegations this year, which would enhance understanding and interaction between businessmen of the two sides. Stephen said he would remain in touch with federal and provincial governments and municipal institutions to facilitate the new investors. Steps were also being taken to provide greater access for Pakistan products in the US markets.

He said Pizza Hut outlets in Pakistan were being increased from 75 to 150 and at the same time asked Pakistan investors to exploit the investment opportunities available in America as the US commercial service department would facilitate them.

Pakistan offers conducive environment for foreign investment, says PM

FCCI Acting President Rana Sikandar-e-Azam pointed out that in fiscal year 2016 bilateral trade stood at $5.72 billion, which was in favour of Pakistan. Pakistan exported $3.62 billion worth of goods while US exports were worth $2.10 billion.

He was of the view that global recession was affecting Pakistan’s ability to increase exports and investment inflows, hence the US should consider cutting tariffs on Pakistan textiles, which would enable it to compete with the developing countries that benefitted from the US tariff-reducing trade preference programmes.

Published in The Express Tribune, July 21st, 2017.
 

Neo

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Oil and gas sector: Chinese group explores investment opportunities in K-P
By APP
Published: July 21, 2017

PHOTO: REUTERS

PESHAWAR: A Chinese CCK Group delegation visited Khyber-Pakhtunkhwa Oil and Gas Company Limited (KPOGCL) on Thursday, and held detailed discussions to explore investment opportunities in this sector.

Pakistan’s oil and gas discoveries touch record

The Chinese delegation, led by Tao Ye, discussed prospects of cooperation in oil and gas projects with KPOGCL CEO Muhammad Raziuddin.

Raziuddin said that KPOGCL was committed to take the vision of the government forward and all necessary steps were being taken for the betterment and uplift of the province. He said that there existed a lot of investment opportunities in oil and gas projects and all technical and commercial terms were being looked upon closely.

Ministry issues 12 more notices to oil and gas companies

The Chinese investors were presented with pre-feasibility studies conducted by KPOGCL and all the relevant material to facilitate them to start detailed feasibility of the projects as per the MoU terms.

Published in The Express Tribune, July 21st, 2017.
 

Mikesingh

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More isolation for Pak.

S.Korea reconsidering investment plans in Pak.

South Korea's Daelim Industrial Company Limited, which is leading a consortium to develop the 500 MW Chakothi Hattian Hydropower Project on the Jhelum in Muzaffarabad, is reconsidering its investment in the venture.

This after financiers such as the Asian Development Bank, International Finance Corporation and Exim Bank of Korea expressed their inability to back a project in a disputed area. The information minister of PoK Mushtaq Ahmed Minhas has confirmed the development.

Further, other Korean-financed ventures in the region, such as the Kohala Hydropower project, may also be stalled.


http://indiatoday.intoday.in/story/india-seoul-hydropower-pakistan-occupied-kashmir/1/1007273.html
All thanks to Indian diplomacy which is in overdrive!! This is just a start. Except their Chinese masters, few will invest in projects which are in so called disputed areas.
 

Kshatriya87

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China Calls Pakistan's CPEC Fastest and Most Effective of BRI Projects

https://www.voanews.com/a/china-cal...d-most-effective-of-bri-projects/3951874.html



China's Foreign Minister Wang Yi, second from right, speaks as Tunisia's Foreign Minister Khemaies Jhinaoui, second from left, listens during a meeting at the Ministry of Foreign Affairs in Beijing, July 19, 2017.

ISLAMABAD —
China says its large economic collaboration program with Pakistan has entered “the stage of early harvest", making it the “fastest and most effective" among all projects in Beijing’s Belt and Road Initiative, or BRI.

President Xi Jinping launched the China-Pakistan Economic Corridor, or CPEC, two years ago, during his landmark visit to Islamabad. Cooperation has since cemented decades-old relations between the traditionally close allies.

China is investing about $60 billion on a network of roads, railways, fiber optic cables, energy pipelines, industrial clusters and special economic zones in Pakistan.

The corridor will link China's western region of Xinjiang to the Pakistani port of Gwadar on the Arabian Sea, giving the Chinese region the shortest trade route to international markets.

China's acting ambassador to Islamabad, Lijian Zhao, says that 19 CPEC projects worth about $19 billion are either completed or in progress.

“CPEC, as a pilot and major project of BRI, is now the fastest and most effective project among all the projects under the BRI,” he told a seminar in Islamabad.

He described the cooperation as an “unprecedented undertaking” in the history of China-Pakistan relations.


Visiting Chinese Foreign Minister Wang Yi, right, and Pakistan's adviser on foreign affairs Sartaj Aziz, left, leave after a press conference, in Rawalpindi, Pakistan, June 25, 2017.
Economic cooperation connected to CPEC has employed thousands of Pakistanis and officials anticipate tens of thousands more will be hired in the next few years.

Gwadar is in Pakistan's Baluchistan province, where deadly attacks on CPEC workers have taken place in recent months.

Some critics in Pakistan have raised concerns about the viability of CPEC, while others have questioned its implications for the country. But officials dismiss the skepticism as unfounded.

“Despite (the fact) there is this criticism and noises here and there, after this four years of hard work and joint efforts of both countries, the CPEC has not been affected by those noises. I can report to you that CPEC is going on very well on the ground,” said the Chinese envoy. He did not elaborate further.

Most of the CPEC projects are in Baluchistan. Pakistani officials allege rival India’s intelligence agency is behind the militant attacks in the province in an attempt to sabotage the Chinese investment.

New Delhi denies the charge, but officials there have voiced concerns over the corridor because it passes through the Pakistan-controlled portion of Kashmir, which is divided between India and Pakistan and both claim the Himalayan region in its entirety.

Pakistan’s foreign secretary, Tehmina Janjua, while addressing the conference, explained security challenges facing her country’s project with China.

“May I point out, unfortunately, our eastern neighbor (India) has publicly announced its opposition to CPEC. The grounds they give for their opposition are baseless,” Janjua noted.

She went on to denounce India’s opposition as “appalling” for a project that she said would bring development and prosperity to the people of Kashmir.

“China and Pakistan stand shoulder to shoulder in developing CPEC on the agreed time lines. We will continue to march ahead with complete determination, ignoring the negative voices and forcefully responding to any threat to CPEC,” said Janjua.

The Pakistani military has deployed thousands of security personnel to guard the projects and protect Chinese experts and workers.

China has also rejected reported U.S. concerns China plans to turn Gwadar into a Chinese naval base.

Major infrastructure projects being established in the Chinese-funded port of Gwadar include a Free Zone and a new international airport that will be operational by next year, officials say.

While new highways are being built and existing roads upgraded to link areas under CPEC, a coal fired power plant in the central city of Sahiwal has recently been completed, adding 1,320-megawatts of electricity to Pakistan's national grid.

A second 1,320-megawatt coal fired power plant in the southern port city of Karachi is expected to be inaugurated by November at an estimated cast of about $2 billion.

China is also focusing on upgrading Pakistan's railways, increasing average speeds to about 180 kilometers an hour from the current average of 80 kilometers an hour, said Chinese envoy Zhao.
Of course. Its like a Malaysian saying "Mine is bigger".
 

Screambowl

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this is how you will pay off the debts by allowing them to take oil for the debt value
Oil and gas sector: Chinese group explores investment opportunities in K-P
By APP
Published: July 21, 2017

PHOTO: REUTERS

PESHAWAR: A Chinese CCK Group delegation visited Khyber-Pakhtunkhwa Oil and Gas Company Limited (KPOGCL) on Thursday, and held detailed discussions to explore investment opportunities in this sector.

Pakistan’s oil and gas discoveries touch record

The Chinese delegation, led by Tao Ye, discussed prospects of cooperation in oil and gas projects with KPOGCL CEO Muhammad Raziuddin.

Raziuddin said that KPOGCL was committed to take the vision of the government forward and all necessary steps were being taken for the betterment and uplift of the province. He said that there existed a lot of investment opportunities in oil and gas projects and all technical and commercial terms were being looked upon closely.

Ministry issues 12 more notices to oil and gas companies

The Chinese investors were presented with pre-feasibility studies conducted by KPOGCL and all the relevant material to facilitate them to start detailed feasibility of the projects as per the MoU terms.

Published in The Express Tribune, July 21st, 2017.
 

Mikesingh

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China Calls Pakistan's CPEC Fastest and Most Effective of BRI Projects

https://www.voanews.com/a/china-cal...d-most-effective-of-bri-projects/3951874.html



China's Foreign Minister Wang Yi, second from right, speaks as Tunisia's Foreign Minister Khemaies Jhinaoui, second from left, listens during a meeting at the Ministry of Foreign Affairs in Beijing, July 19, 2017.

ISLAMABAD —
China says its large economic collaboration program with Pakistan has entered “the stage of early harvest", making it the “fastest and most effective" among all projects in Beijing’s Belt and Road Initiative, or BRI.

President Xi Jinping launched the China-Pakistan Economic Corridor, or CPEC, two years ago, during his landmark visit to Islamabad. Cooperation has since cemented decades-old relations between the traditionally close allies.

China is investing about $60 billion on a network of roads, railways, fiber optic cables, energy pipelines, industrial clusters and special economic zones in Pakistan.

The corridor will link China's western region of Xinjiang to the Pakistani port of Gwadar on the Arabian Sea, giving the Chinese region the shortest trade route to international markets.

China's acting ambassador to Islamabad, Lijian Zhao, says that 19 CPEC projects worth about $19 billion are either completed or in progress.

“CPEC, as a pilot and major project of BRI, is now the fastest and most effective project among all the projects under the BRI,” he told a seminar in Islamabad.

He described the cooperation as an “unprecedented undertaking” in the history of China-Pakistan relations.


Visiting Chinese Foreign Minister Wang Yi, right, and Pakistan's adviser on foreign affairs Sartaj Aziz, left, leave after a press conference, in Rawalpindi, Pakistan, June 25, 2017.
Economic cooperation connected to CPEC has employed thousands of Pakistanis and officials anticipate tens of thousands more will be hired in the next few years.

Gwadar is in Pakistan's Baluchistan province, where deadly attacks on CPEC workers have taken place in recent months.

Some critics in Pakistan have raised concerns about the viability of CPEC, while others have questioned its implications for the country. But officials dismiss the skepticism as unfounded.

“Despite (the fact) there is this criticism and noises here and there, after this four years of hard work and joint efforts of both countries, the CPEC has not been affected by those noises. I can report to you that CPEC is going on very well on the ground,” said the Chinese envoy. He did not elaborate further.

Most of the CPEC projects are in Baluchistan. Pakistani officials allege rival India’s intelligence agency is behind the militant attacks in the province in an attempt to sabotage the Chinese investment.

New Delhi denies the charge, but officials there have voiced concerns over the corridor because it passes through the Pakistan-controlled portion of Kashmir, which is divided between India and Pakistan and both claim the Himalayan region in its entirety.

Pakistan’s foreign secretary, Tehmina Janjua, while addressing the conference, explained security challenges facing her country’s project with China.

“May I point out, unfortunately, our eastern neighbor (India) has publicly announced its opposition to CPEC. The grounds they give for their opposition are baseless,” Janjua noted.

She went on to denounce India’s opposition as “appalling” for a project that she said would bring development and prosperity to the people of Kashmir.

“China and Pakistan stand shoulder to shoulder in developing CPEC on the agreed time lines. We will continue to march ahead with complete determination, ignoring the negative voices and forcefully responding to any threat to CPEC,” said Janjua.

The Pakistani military has deployed thousands of security personnel to guard the projects and protect Chinese experts and workers.

China has also rejected reported U.S. concerns China plans to turn Gwadar into a Chinese naval base.

Major infrastructure projects being established in the Chinese-funded port of Gwadar include a Free Zone and a new international airport that will be operational by next year, officials say.

While new highways are being built and existing roads upgraded to link areas under CPEC, a coal fired power plant in the central city of Sahiwal has recently been completed, adding 1,320-megawatts of electricity to Pakistan's national grid.

A second 1,320-megawatt coal fired power plant in the southern port city of Karachi is expected to be inaugurated by November at an estimated cast of about $2 billion.

China is also focusing on upgrading Pakistan's railways, increasing average speeds to about 180 kilometers an hour from the current average of 80 kilometers an hour, said Chinese envoy Zhao.

.......................................................................
 

Butter Chicken

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Pakistan loses textile export share in world market by 23pc

ISLAMABAD: In a mammoth blow to exports, Pakistan has lost its textile export share in global market by 23 percent from 2.2 percent to 1.7 percent raising questions on economic and trade policies of government functionaries, unfolds the latest presentation on restoration of viability and growth of textile industry prepared by Aptma.

“The investment in textile and clothing massively declined by 44 percent in 2016-17 on account of which, the country’s textile production capacity has got impaired by 30-35 percent owing to which 150 industrial units have become non-functional resulting in 30 percent unemployment. More shockingly, the textile industry of Pakistan lost 15 percent technological edge advantage over competitors.”

Following the non-performance of the textile sector on account of highest cost of doing business in the region, Pakistan is now facing the highest ever trade deficit of $35.609 billion and external deficit has swelled to $16.305 billion. The Aptma presentation also mentions as to how the other competitive countries have performed far more better than Pakistan showing that Vietnam is the country that ranked first showing 107 percent in growth in textile and clothing exports followed by Bangladesh with growth of 64 percent in exports of the said items, India with 31 percent, Sri Lanka 20 percent growth whereas Pakistan stayed in the red zone with negative growth of 11 percent.

Aptma also came down heavily on the government saying that the bilateral trade agreements meaning by that free trade agreements (FTAs) finalized with various countries are faulty and failed to provide the level playing field to the real stake holders, export- oriented industrial sector. The country's perception stagmatised with law and order situation owing to which the militants activities has resulted in barring the investors from traveling to Pakistan through travel adviseries. Though the situation has improved on account of military operations against militants, but there is a need to launch the drive on part of the government to change the country’s perception so that the existing reluctance between the buyers and investors.

The presentation also reveals that prime minister’s export led growth package has got reversed as despite the shortage of cotton-- 3.8 million bales, 4 percent customs duty and 5 percent sales tax has been re-imposed. It also mentions that energy cost is more than 30 percent of the total conversion cost in spinning, weaving and processing industries. And the industrial gas tariff of Pakistan is 100 percent whereas electricity tariff is 50 percent higher than the regional competitors. More importantly, gas is burdened with various add-ons, including (GIDC, UFG and cost of supply) and textile industry cannot pass system inefficiencies to its international buyers.

Aptma Chairman Aamir Fayyaz, while talking to this scribe, demanded zero rating of raw materials for the textile industry, reducing cost of doing business, resolving the liquidity problems and filling up the policy-implementation dividing immediately to ensure restoration of the industry’s viability and revival of the export potential of the country.

Fayyaz said the high cost of doing business, shortage of liquidity, the ongoing policy-implementation divide and realisation of only Rs03 billion out of Rs180 billion textile package are a few major concerns of the industry at present.

He added that the viability of the textile industry has been eroded fast but the government was not able to pay required amount of attention to it. He pointed out that the production capacity worth $4 billion has been closed down all across the textile value chain, besides an potential $12 billion exports through conversion of basic textile into the value added garments.

He said both the earliest revival and growth of textile industry is a must to steer the industry out of a bad shape and contribute to the exports of the country. He capsuled the dreadful state of affairs in the industry by stating that the production capacity has been impaired by 35 percent across the textile value chain. Textile exports have declined by 11 percent, its global market share has reduced by 23 percent, investment in the sector has dropped by 17 percent and 30 percent of the unemployment has already been redundant.

He also pointed out that growth of textile and clothing exports are in negative zone in Pakistan against an exponential growth recorded in the competing countries during 2011 to 2017.

He said the energy cost of industry in Pakistan is highest in the region that has reached to 30 percent of the cost in spinning, weaving and processing sectors. Both electricity and gas tariff are higher by 30 and 60 percent respectively in the region. Meanwhile, an additional burden of Rs3.63 surcharges of various nature has crippled the industry, and it is unable to pass on this cost to the international buyers, he added.

Seeking revival-and-growth-focused measures to enable this industry to increase production, employment and exports in the larger economic interest, he has demanded full realisation of Rs180 billion textile package announced by the prime minister in January this year, duty/tax free import of cotton and polyester staple fiber, liquidation of all outstanding refunds of sales tax, withdrawal of all electricity surcharges, supply of RLNG at Rs400/MMBTU and strengthening of domestic commerce through tariff/non-affiliated measures to counter informal trade and dumped imports.

https://www.thenews.com.pk/print/217913-Pakistan-loses-textile-export-share-in-world-market-by-23pc
 

Flame Thrower

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Pakistan loses textile export share in world market by 23pc

ISLAMABAD: In a mammoth blow to exports, Pakistan has lost its textile export share in global market by 23 percent from 2.2 percent to 1.7 percent raising questions on economic and trade policies of government functionaries, unfolds the latest presentation on restoration of viability and growth of textile industry prepared by Aptma.

“The investment in textile and clothing massively declined by 44 percent in 2016-17 on account of which, the country’s textile production capacity has got impaired by 30-35 percent owing to which 150 industrial units have become non-functional resulting in 30 percent unemployment. More shockingly, the textile industry of Pakistan lost 15 percent technological edge advantage over competitors.”

Following the non-performance of the textile sector on account of highest cost of doing business in the region, Pakistan is now facing the highest ever trade deficit of $35.609 billion and external deficit has swelled to $16.305 billion. The Aptma presentation also mentions as to how the other competitive countries have performed far more better than Pakistan showing that Vietnam is the country that ranked first showing 107 percent in growth in textile and clothing exports followed by Bangladesh with growth of 64 percent in exports of the said items, India with 31 percent, Sri Lanka 20 percent growth whereas Pakistan stayed in the red zone with negative growth of 11 percent.

Aptma also came down heavily on the government saying that the bilateral trade agreements meaning by that free trade agreements (FTAs) finalized with various countries are faulty and failed to provide the level playing field to the real stake holders, export- oriented industrial sector. The country's perception stagmatised with law and order situation owing to which the militants activities has resulted in barring the investors from traveling to Pakistan through travel adviseries. Though the situation has improved on account of military operations against militants, but there is a need to launch the drive on part of the government to change the country’s perception so that the existing reluctance between the buyers and investors.

The presentation also reveals that prime minister’s export led growth package has got reversed as despite the shortage of cotton-- 3.8 million bales, 4 percent customs duty and 5 percent sales tax has been re-imposed. It also mentions that energy cost is more than 30 percent of the total conversion cost in spinning, weaving and processing industries. And the industrial gas tariff of Pakistan is 100 percent whereas electricity tariff is 50 percent higher than the regional competitors. More importantly, gas is burdened with various add-ons, including (GIDC, UFG and cost of supply) and textile industry cannot pass system inefficiencies to its international buyers.

Aptma Chairman Aamir Fayyaz, while talking to this scribe, demanded zero rating of raw materials for the textile industry, reducing cost of doing business, resolving the liquidity problems and filling up the policy-implementation dividing immediately to ensure restoration of the industry’s viability and revival of the export potential of the country.

Fayyaz said the high cost of doing business, shortage of liquidity, the ongoing policy-implementation divide and realisation of only Rs03 billion out of Rs180 billion textile package are a few major concerns of the industry at present.

He added that the viability of the textile industry has been eroded fast but the government was not able to pay required amount of attention to it. He pointed out that the production capacity worth $4 billion has been closed down all across the textile value chain, besides an potential $12 billion exports through conversion of basic textile into the value added garments.

He said both the earliest revival and growth of textile industry is a must to steer the industry out of a bad shape and contribute to the exports of the country. He capsuled the dreadful state of affairs in the industry by stating that the production capacity has been impaired by 35 percent across the textile value chain. Textile exports have declined by 11 percent, its global market share has reduced by 23 percent, investment in the sector has dropped by 17 percent and 30 percent of the unemployment has already been redundant.

He also pointed out that growth of textile and clothing exports are in negative zone in Pakistan against an exponential growth recorded in the competing countries during 2011 to 2017.

He said the energy cost of industry in Pakistan is highest in the region that has reached to 30 percent of the cost in spinning, weaving and processing sectors. Both electricity and gas tariff are higher by 30 and 60 percent respectively in the region. Meanwhile, an additional burden of Rs3.63 surcharges of various nature has crippled the industry, and it is unable to pass on this cost to the international buyers, he added.

Seeking revival-and-growth-focused measures to enable this industry to increase production, employment and exports in the larger economic interest, he has demanded full realisation of Rs180 billion textile package announced by the prime minister in January this year, duty/tax free import of cotton and polyester staple fiber, liquidation of all outstanding refunds of sales tax, withdrawal of all electricity surcharges, supply of RLNG at Rs400/MMBTU and strengthening of domestic commerce through tariff/non-affiliated measures to counter informal trade and dumped imports.

https://www.thenews.com.pk/print/217913-Pakistan-loses-textile-export-share-in-world-market-by-23pc
Couple of days ago there was a post on how much Pakis value Indian manufactured Textile/cloths.

This was bound to happen....

No the question is if Pak economic houses close even before Pak starts paying CPEC debts. what will happen if Pak starts paying debt!?
 

ezsasa

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Pakistan loses textile export share in world market by 23pc

ISLAMABAD: In a mammoth blow to exports, Pakistan has lost its textile export share in global market by 23 percent from 2.2 percent to 1.7 percent raising questions on economic and trade policies of government functionaries, unfolds the latest presentation on restoration of viability and growth of textile industry prepared by Aptma.

“The investment in textile and clothing massively declined by 44 percent in 2016-17 on account of which, the country’s textile production capacity has got impaired by 30-35 percent owing to which 150 industrial units have become non-functional resulting in 30 percent unemployment. More shockingly, the textile industry of Pakistan lost 15 percent technological edge advantage over competitors.”

Following the non-performance of the textile sector on account of highest cost of doing business in the region, Pakistan is now facing the highest ever trade deficit of $35.609 billion and external deficit has swelled to $16.305 billion. The Aptma presentation also mentions as to how the other competitive countries have performed far more better than Pakistan showing that Vietnam is the country that ranked first showing 107 percent in growth in textile and clothing exports followed by Bangladesh with growth of 64 percent in exports of the said items, India with 31 percent, Sri Lanka 20 percent growth whereas Pakistan stayed in the red zone with negative growth of 11 percent.

Aptma also came down heavily on the government saying that the bilateral trade agreements meaning by that free trade agreements (FTAs) finalized with various countries are faulty and failed to provide the level playing field to the real stake holders, export- oriented industrial sector. The country's perception stagmatised with law and order situation owing to which the militants activities has resulted in barring the investors from traveling to Pakistan through travel adviseries. Though the situation has improved on account of military operations against militants, but there is a need to launch the drive on part of the government to change the country’s perception so that the existing reluctance between the buyers and investors.

The presentation also reveals that prime minister’s export led growth package has got reversed as despite the shortage of cotton-- 3.8 million bales, 4 percent customs duty and 5 percent sales tax has been re-imposed. It also mentions that energy cost is more than 30 percent of the total conversion cost in spinning, weaving and processing industries. And the industrial gas tariff of Pakistan is 100 percent whereas electricity tariff is 50 percent higher than the regional competitors. More importantly, gas is burdened with various add-ons, including (GIDC, UFG and cost of supply) and textile industry cannot pass system inefficiencies to its international buyers.

Aptma Chairman Aamir Fayyaz, while talking to this scribe, demanded zero rating of raw materials for the textile industry, reducing cost of doing business, resolving the liquidity problems and filling up the policy-implementation dividing immediately to ensure restoration of the industry’s viability and revival of the export potential of the country.

Fayyaz said the high cost of doing business, shortage of liquidity, the ongoing policy-implementation divide and realisation of only Rs03 billion out of Rs180 billion textile package are a few major concerns of the industry at present.

He added that the viability of the textile industry has been eroded fast but the government was not able to pay required amount of attention to it. He pointed out that the production capacity worth $4 billion has been closed down all across the textile value chain, besides an potential $12 billion exports through conversion of basic textile into the value added garments.

He said both the earliest revival and growth of textile industry is a must to steer the industry out of a bad shape and contribute to the exports of the country. He capsuled the dreadful state of affairs in the industry by stating that the production capacity has been impaired by 35 percent across the textile value chain. Textile exports have declined by 11 percent, its global market share has reduced by 23 percent, investment in the sector has dropped by 17 percent and 30 percent of the unemployment has already been redundant.

He also pointed out that growth of textile and clothing exports are in negative zone in Pakistan against an exponential growth recorded in the competing countries during 2011 to 2017.

He said the energy cost of industry in Pakistan is highest in the region that has reached to 30 percent of the cost in spinning, weaving and processing sectors. Both electricity and gas tariff are higher by 30 and 60 percent respectively in the region. Meanwhile, an additional burden of Rs3.63 surcharges of various nature has crippled the industry, and it is unable to pass on this cost to the international buyers, he added.

Seeking revival-and-growth-focused measures to enable this industry to increase production, employment and exports in the larger economic interest, he has demanded full realisation of Rs180 billion textile package announced by the prime minister in January this year, duty/tax free import of cotton and polyester staple fiber, liquidation of all outstanding refunds of sales tax, withdrawal of all electricity surcharges, supply of RLNG at Rs400/MMBTU and strengthening of domestic commerce through tariff/non-affiliated measures to counter informal trade and dumped imports.

https://www.thenews.com.pk/print/217913-Pakistan-loses-textile-export-share-in-world-market-by-23pc
Interestingly Bangladesh's textile industry growth also stalled last fiscal.

I wonder where has the growth moved. Not sure where the growth has moved to.
 

thethinker

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Non Muslims are being driven out of Pakistan and have to give up their businesses while jaahil Pakis here are stuck on 2002, beef ban and intolerance.

Gujarat: 114 Pakistanis are Indian citizens now

http://timesofindia.indiatimes.com/...-indian-citizens-now/articleshow/59695975.cms
  • The main reason for the people to opt for Indian citizenship was the high crime rate in Pakistan
  • The Ahmedabad collector’s office is examining another batch of 216 applications, the decision on which will be taken soon
Nandlal Meghani's, Dr Vishandas Mankani's and Kishanlal Andani's joy knows no bounds. They are among the 114 Pakistan citizens to have received Indian citizenship. The recipients will receive their citizenship certificates today.

High crime rate in Pakistan

Sharing his joy with Mirror, Nandlal Meghani, 50, a resident of Ghatlodia, said, "I along with my wife and daughter came to India 16 years ago from Sindh in Pakistan. We sold our home and business to make a new start here in India. We were impressed with the common man's life here as soon as we arrived and applied for the Indian citizenship. The main reason to opt for Indian citizenship was the high crime rate in Pakistan. Even our Muslim friends back in Pakistan encouraged us to shift to India, looking at widespread terrorism there." Meghani was engaged in auto parts business in Pakistan. In India, he started afresh by starting a home renovation firm. His sons are engaged in medical stores.

'Terrorism made life hell for us'

Kishanlal Andani, 59, said, "I had migrated to India in 2005 with my wife and four sons. My sons will arrive tomorrow and we plan to apply for Indian citizenship for our daughter-in-laws as well." Andani owned a general store in Tharpakar town of Sindh province in Pakistan. In India he has started a utensils shop along with his children. With tears welling up in his eyes, Andani said, "I often think about the place I left behind and my friends there. However, the menace of terrorism had made it difficult for us to survive. When we ventured out every day, we remained unsure whether we would return home in the evening. My Muslim friends there stood by me when riots broke out over the issue of a local temple and mosque. They offered me protection during the most critical time of our lives."


'India is secure, more developed'


Appreciating the central government's move to grant collectorates power to decide upon applications, Dr Vishandas Mankani, 50, a resident of Sola Road who came to India in 2001 on visitor visa with four children, said, "I and my wife got citizenship in 2016. Now my children have also got it. We are impressed with development in India, which is absent in Pakistan. Safety is also something one can vouch for in India." Dr Mankani recently retired from medical practice while his sons run a mobile shop to earn livelihood.

Collectors empowered to process applications

According to the Citizenship Act, 1955, district magistrates (district collector) are empowered to examine applications seeking Indian citizenship and take the final decision. The Ahmedabad collector's office is examining another batch of 216 applications, the decision on which will be taken soon. Ahmedabad district collector Avantika Singh said, "Powers have been delegated to respective collector's offices to process applications seeking citizenship, including those made by residents of Pakistan, Afghanistan and Bangladesh. Earlier, the pleas had to be made to the central home ministry. All these cases have now been transferred to collectorates."
 

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