Comment by Riaz Haq on September 6, 2018 at 5:31pm

CPEC spurs Pakistan’s industrial growth, up by 5.4% in FY18

https://dailytimes.com.pk/286581/cpec-spurs-pakistans-industrial-gr...

The country’s large scale manufacturing (LSM) sector has witnessed growth of 5.38 percent during the fiscal year 2017-18 (FY18) compared to the corresponding period of last year, but, below the government’s FY18 target of 6.3 percent.

LSM grew 3.13 percent in 2015-16, 3.38 percent in 2014-15, 5.39 percent in 2013-14, 4.28 percent in 2012-13 and 5.6 percent in 2016-17.

The factors, according to the central bank, which facilitated LSM growth mainly included increased capacity utilization due to ease in energy supplies; high credit off-take owing to low interest rates; output stimulus in associated industries due to widespread construction activities; and an improved business environment on the back of CPEC related projects and favorable law and order situation.


Construction allied and consumer durable industries registered a notable growth. However, sugar industry was not able to capitalize on record sugarcane production; in stark contrast to last year, when it was the main driver of LSM growth.

The Quantum Index Numbers (QIM) of large scale manufacturing industries was recorded at 147.07 points during July-June 2017-18 against 139.55 points during same period of last year, according to latest data of Pakistan Bureau of Statistics (PBS).

The State Bank of Pakistan (SBP) said industrial production has witnessed the highest growth in the current fiscal year since FY08. The performance can be traced to noteworthy contributions from construction and manufacturing activities. Public sector development program (PSDP) and CPEC related expenditure have had a spillover impact on manufacturing sub-sectors such as steel, cement and automobiles. However, the industry could not achieve the growth target set for FY18 on account of a lower increase in gross value addition (GVA) by electricity generation and gas distribution.

The highest growth of 13.24 percent was witnessed in the indices monitored by Oil Companies Advisory Committee (OCAC) followed by Ministry of Industries with 5.04 percent and the indices of Provincial Bureaus of Statistics (PBOS) with 4.4800 percent.

On month-on-month basis, the industrial output increased by 0.51 percent in June 2018 compared to June 2017 while it decreased by 8.30 per cent if compared to May 2018.


Meanwhile, the major sectors that showed growth during the said fiscal compared to same period of the previous year, included textile (0.38 percent), food beverages & tobacco (2.78 percent), coke and petroleum products (13.24 percent), pharmaceuticals (2.94 percent), non metallic mineral products (11.04 percent), automobiles (17.78 percent), iron and steel products (21.78 percent), electronics (32.43 per cent), paper and board (9.38 percent), engineering products (7.58 per cent), and rubber products (6.21 percent).

On the other hand, the industries that witnessed negative growth include f, chemicals (0.23 percent), fertilizers (9.88 percent), leather products (0.19 percent), and wood products (37.75 percent).

The provisional QIM is being computed on the basis of the latest production data of 112 items received from sources including Oil Companies Advisory Committee (OCAC), Ministry of Industries and Production (MoIP) and Provincial Bureaus of Statistics (PBoS). OCAC provides data of 11 items, MoIP of 36 items while PBoS proved data of remaining 65 items.

Comment by Riaz Haq on September 6, 2018 at 5:40pm

50 Auto Factories' Production Improved With JICA Support

https://www.urdupoint.com/en/business/50-auto-factories-production-...

Small and Medium Enterprises Development Authority (SMEDA) has improved production systems of 50 Auto Factories with the support of Japan International Cooperation Agency (JICA).

Small and Medium Enterprises Development Authority (SMEDA) has improved production systems of 50 Auto Factories with the support of Japan International Cooperation Agency (JICA).

SMEDA Chief Executive Officer Sher Ayub disclosed this here Wednesday while commenting on second term of SMEDA-JICA joint project being run for technical support of auto parts manufacturing industry in Pakistan.

The project, he said, was being conducted in coordination with Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM).

He acknowledged services of the Provincial Chief SMEDA-Sindh Mukesh Kumar to make this project successful in close coordination with PAAPAM.

He said that Auto sector was one of the rapidly growing sectors in Pakistan. Its contribution towards the national economy in the form of technology transfer, employment and revenue generation is visible, he said and pointed out that the sector had a significant room to further improve quality, bring innovation and flexibility of manufacturing system which is being addressed with the support of JICA. He observed that Japan's technical support had helped the local auto parts manufacturers to get prepared for export market by improving quality and productivity of their products, as per world's requirements.

Earlier, at a ceremony held at PAAPAM Office, the SMEDA (Sindh) Provincial Chief Mukesh Kumar gave a briefing on the activities to be conducted under second term of SMEDA-JICA joint project for technical support of Auto sector in the country.

Yoshihisa Onoe - senior representative of JICA Pakistan Office, Hiroshi KANEKI - Chief of JICA Technical Team, Hiroshi SASAKI-Deputy Chief of JICA Team, Ikuta, Ishitaki, Sato (JICA Experts) and Muhammad Ashraf Sheikh, Senior Vice Chairman PAAPAM also spoke on this occasion.

Yoshihisa Onoe-the Senior Representative of JICA, in his address, assured to continue the technical support for Pakistan's industry to compete in the world market in terms of technical know-how and the modern manufacturing techniques.

He acknowledged that JICA's collaboration with SMEDA and PAAPAM had proved to be very useful for the local auto parts' manufacturing industry in Pakistan.

He was glad to note that productivity of the sector had increased to an optimal level, whereas, the rejection rates to be witnessed in the manufacturing processes had reduced to the lowest possible level. He said that the SMEs, engaged in auto parts manufacturing, had a great potential to compete the world market and assured to extend fullest technical support of JICA to impart the best practices being exercised in auto sector of the developed world.

Muhammad Ashraf Sheikh, Senior Vice Chairman (PAAPAM) appreciated SMEDA initiatives to get JICA's technical cooperation for auto parts industry.

He said that PAAPAM members had greatly availed of the assistance to increase their productivity and reduce rejection rates in their manufacturing processes. He urged SMEDA and JICA to continue the program even after completion of the set period.

Comment by Riaz Haq on September 7, 2018 at 10:10am

Livestock revolution enabled Pakistan to significantly raise agriculture productivity and rural incomes in 1980s. Economic activity in dairy, meat and poultry sectors now accounts for just over 50% of the nation's total agricultural output. The result is that per capita value added to agriculture in Pakistan is almost twice as much as that in Bangladesh and India.

https://www.riazhaq.com/2013/11/pakistan-leads-south-asia-in.html

http://sawtee.org/presentations/27-28-dec-2015-2.pdf

Comment by Riaz Haq on September 9, 2018 at 4:14pm

#Pakistan's #PTI government led by #ImranKhan plans to review or renegotiate #CPEC agreements with #China. #Chinese FM Wang Yi visiting #Islamabad indicates #Beijing open renegotiating its 2006 trade deal with Pakistan. https://www.ft.com/content/d4a3e7f8-b282-11e8-99ca-68cf89602132

Pakistani ministers and advisers say the country’s new government will review BRI investments and renegotiate a trade agreement signed more than a decade ago that it says unfairly benefits Chinese companies.

The projects concerned are part of the $62bn China-Pakistan Economic Corridor plan — by far the largest and most ambitious part of the BRI, which seeks to connect Asia and Europe along the ancient silk road.

They include a huge expansion of the Gwadar port on Pakistan’s south coast, as well as road and rail links and $30bn worth of power plants.

“The previous government did a bad job negotiating with China on CPEC — they didn’t do their homework correctly and didn’t negotiate correctly so they gave away a lot,” Abdul Razak Dawood, the Pakistani member of cabinet responsible for commerce, textiles, industry and investment, told the Financial Times.

“Chinese companies received tax breaks, many breaks and have an undue advantage in Pakistan; this is one of the things we’re looking at because it’s not fair that Pakistan companies should be disadvantaged,” he said.

Wang Yi, Chinese foreign minister, who visited Islamabad at the weekend, indicated that Beijing could be open to renegotiating its 2006 trade deal with Pakistan. “CPEC has not inflicted a debt burden on Pakistan,” he told reporters. “When these projects get completed and enter into operation, they will unleash huge economic benefits.”

But Islamabad's second thoughts follow other recent setbacks for BRI, which is seen by many as a bid by China’s President Xi Jinping to extend Beijing’s influence throughout the world. Governments in Malaysia, Sri Lanka, Myanmar and elsewhere have already expressed reservations over the onerous terms of Chinese BRI lending and investment.

Imran Khan, the former cricket star who was elected Pakistan’s prime minister last month, has established a nine-member committee to evaluate CPEC projects. It is scheduled to meet for the first time this week and will “think through CPEC — all of the benefits and the liabilities”, said Mr Dawood, who sits on the new committee.

“I think we should put everything on hold for a year so we can get our act together,” he added. “Perhaps we can stretch CPEC out over another five years or so.”

Several other officials and advisers to the Khan government concurred that extending the terms of CPEC loans and spreading projects out over a longer timeframe was the preferred option, rather than outright cancellation.

Pakistan is in the middle of a financial crisis and must decide in the coming weeks whether to turn to the IMF for its 13th bailout in three decades, as pressure on the Pakistani rupee makes the burden of servicing foreign currency debt more onerous.

Asad Umar, Pakistan’s new finance minister, told the FT he was evaluating a plan that would allow Islamabad to avoid an IMF programme, which several people close to the government say would i nvolve new loans from China and perhaps also from Saudi Arabia.

Mr Umar and Mr Dawood both said Pakistan would be careful not to offend Beijing even as it takes a closer look at CPEC agreements signed over the past five years. Mr Khan was elected on a platform of anti-corruption and transparency and has pledged to publish details of existing CPEC contracts.

“We don’t intend to handle this process like Mahathir,” Mr Umar said, referring to the newly elected nonagenarian Malaysian prime minister who has warned about the risk of Chinese “neo-colonialism” Malaysia has cancelled three China-backed pipeline projects and put a showpiece BRI rail link under review.

Comment by Riaz Haq on September 11, 2018 at 11:22am

#French #auto maker to launch five new models in #Pakistan - Renault has acquired 54 acres of land in the city of #Faisalabad and it is expected to invest 140 million U.S. dollars more in the venture. http://www.xinhuanet.com/english/2018-09/11/c_137459070.htm#0-twi-1...

Renault, which is one of the top international car manufacturing companies, has partnered with the largest U.A.E.-based entity Al-Futtaim Group. The joint venture is set to bring the latest technology to their manufacturing plant in Pakistan. The company will initially launch five variants to make a strong start in the Pakistani auto sector.

The Al-Futtaim Group has already started establishing its offices in Pakistan. The two companies will join hands to establish their showrooms and other offices in the country by 2019 whereas the French auto giant's variants are likely to get an official launch by June 2020.

The company's auto manufacturing plant in Faisalabad will have the production capacity of 50,000 vehicles per year. It will conduct sales through the local dealerships.

The arrival of five new variants by the top automaker will provide Pakistani buyers with additional options to choose from.

The advent of Renault in Pakistan is likely to hurt the market monopoly of Japanese automakers like Toyota, Suzuki, and Honda. It would also inspire the other automakers in the Pakistani auto market to bring more investment in Pakistan.

Comment by Riaz Haq on September 27, 2018 at 7:30pm

#Pakistan's #cement industry earned foreign exchange revenue of US$27.57m by #export of 617,745t of cement during the month of August 2018, up from US$20.96m in prior month.
https://www.cemnet.com/News/story/164961/pakistan-cement-exports-ri...

According to Federal Bureau of Statistics, Pakistan's cement industry earned foreign exchange revenue of US$27.57m by exporting 617,745t of cement during the month of August 2018, compared to US$20.96m from exporting 475,134t of cement in previous month. This equated to a growth of 31.5 per cent and 30 per cent in terms of value and quantity, respectively MoM.

When compared with the figure of August 2017, earning of US$22.41m from 442,945t of cement – it translates to a YoY growth of 23 per cent in foreign currency earnings and 39.5 per cent in quantity.

On a cumulative basis, export revenue during July-August 2018 surged by eight per cent to US$48.53m with exports of 1.09Mt of cement and US$44.93m from exports of 871,434t in July-August 2017. The growth in Pakistan rupees rose by 27.1 per cent to PKR6bn during this period.

Data from the All Pakistan Cement Manufacturers Association (APCMA) recorded that cement exports from Pakistan to Afghanistan and India fell by 34 per cent and 22 per cent to 278,253t and 164,552t, respectively during first two months of the current financial year. However, cement exports to rest of the world rose by 149 per cent to about 633,385t during this period.

Comment by Riaz Haq on September 30, 2018 at 8:22am

#Japan's Multi-national #Apparel Brand Uniqlo to Outsource #Garments to #Pakistan. Three #Pakistani garment #manufacturing companies one each in #Faisalabad, #Karachi and #Lahore have been selected. #RMG #textiles #Exports https://www.researchsnipers.com/japanese-apparel-brand-uniqlo-to-ou... via @researchsnipers

One of the most famous apparels brand in the world, Uniqlo is planning to outsource textile garments to Pakistan. Uniqlo will outsource for its 3000 branches worldwide from three Pakistani firms.

The subsidiary of Japanese retail holding company Fast Retailing Inc, Uniqlo Inc has collaborated with three local Pakistan companies aiming to boost the textile exports of the country.

Also read: Pakistan Textile Exports Increased by 8 percent reaches $8.8 billion
Initially, Uniqlo selected five textile companies in Lahore, Faisalabad, and Karachi. Uniqlo representatives were sent to all the companies to assess them and analyze their potential.

An official said, “The initial visit of the Uniqlo team has been successful, which is a big breakthrough.” Three companies were selected by Uniqlo for a joint venture.

Adding, “They still requested for some more companies for shirt fabric and others for circular cutting and sewing.”

For the fiscal year 2017-18, the textile exports of Pakistan increased by almost 9% to $13.53 billion. The textile exports account for almost 60% of total Pakistan’s exports. But compared to the last decade the textile export share of Pakistan in the world market has gone down from 2.2% to 1.7%.

The world’s biggest clothes retailer company Spanish Inditex Group opened its branch office in Pakistan in February. The aim was to double its imports from Pakistan. Other important foreign buying companies in Pakistan include Walmart Global Procurement, Li and Fung Pakistan, JC Penny and others.

Uniqlo is planning to make another trip to Pakistan by end of the month to finalize the deal with the three Pakistani companies.

Uniqlo is a big name in Japan known for providing quality products at affordable rates. The official said, “Therefore, any significant move by Uniqlo into Pakistan for investment and procurement will generate a ripple effect… it will boost textile export. From its factories, Uniqlo supplies apparels to its more than 3,000 sales outlets all across the world.”

Comment by Riaz Haq on October 25, 2018 at 5:10pm

#Pakistan agrees to sell #JF17 #aircraft to #Nigeria Air Force. #Nigerian Air Chief Air Marshal Sadique Abubakar called for closer coordination to fast-track the process for the acquisition of the JF-17 multirole fighter aircraft from Pakistan. https://www.nigerianews.net/naf-partners-with-pakistern-to-purchase...

The Islamic Republic of Pakistan has promised to strengthen its strategic partnership with the Nigerian Air Force (NAF) in equipment and spares acquisition to further enhance professionalism.

A statement by the NAF Spokesman, Air Commodore Ibikunle Daramola, said the Pakistan High Commissioner to Nigeria, retired Maj.-Gen. Waqar Kingravi, made the pledge when he visited the Chief of Air Staff (CAS), Air Marshal Sadique Abubakar on Friday in Abuja.

NIGERIA NEWS gathered that Kingravi said Pakistan would also partner with the NAF on research and development, training and other relevant areas to further enhance professionalism.

He said he was at NAF Headquaters to assure the CAS of the commitment of the Pakistan Government to strengthening the existing cordial relationship between Nigeria and Pakistan.

The commissioner said the relations between the two counties had spanned several decades and yielded several mutually beneficial military collaborations.

Kingravi noted that having once headed the Army Aviation Corp of the Pakistan Army, he was familiar with peculiar requirements of air operations.

He added that he would pay particular attention to ensure that the ties between the air forces of the two countries were taken to even greater heights.

Kingravi also commiserated with the NAF on the tragic air mishap that occurred on Sept. 28, which led to the death of Sqn.Ldr. Bello Baba-Ari.

In a remark, Abubakar said that the relationship between the Pakistan Air Force (PAF) and NAF was extremely cordial and had continued to grow over the past few years.

He noted that the story of the successes recorded in the counter insurgency operations in the North–East, could not be written without mentioning the support rendered by the Pakistan government.

Abubakar recounted several occasions when the PAF had gone beyond the usual to assist the NAF.

He assured Kingravi that the NAF would continue to provide the necessary support and cooperation to enable him succeed.

The CAS called for closer coordination in order to fast-track the process for the acquisition of the JF-17 multirole fighter aircraft from Pakistan.

He also appealed to the High Commissioner to liaise with PAF to develop a special programme for the conduct of basic fighter training for NAF pilots.

Comment by Riaz Haq on November 8, 2020 at 4:23pm

#China Radio on #CPEC: Improvements in #energy & #transportation infrastructure have laid the foundation for the #industrial development of #Pakistan. The next phase of the CPEC project focuses on industrial cooperation. #industries #Manufacturing https://tribune.com.pk/story/2271510/cpecs-rapid-progress-laying-fo...

The projects implemented under the China-Pakistan Economic Corridor (CPEC), a flagship project of the Belt and Road Initiative, will not only benefit certain areas but also development in Pakistan, commented China Radio International (CRI) Urdu on Sunday.

“The way in which the CPEC projects have been implemented over the past five years and the results that have emerged show that the purpose of building up CPEC is not to benefit certain areas, but to promote development in Pakistan,” the CRI Urdu said of the progress made in the construction of CPEC projects.

The Urdu service stated that the infrastructure, construction of industries and the elimination of energy shortages will provide an environment for Pakistan according to its resources, which will also benefit the people of Pakistan and guarantee a bright future.

The Orange Line Metro train in Lahore is the first electric public transport project, the introduction of which not only increased travel facilities for the people but also created new jobs.

In the past five years, CPEC projects have created 55,000 direct jobs in the road infrastructure sector, of which 48,000 have been created specifically for local Pakistanis.

According to a spokesman for the Chinese Ministry of Foreign Affairs, major projects with a direct investment of US $25 billion have been completed since the inception of CPEC. The projects completed under it are are part of The Belt and Road Initiative.

As for the shipping of cargo, the trade began at the Gwadar port during the first six months of this year, through which up to 20,000 tons of goods were shipped to Afghanistan; the initiative also created jobs in the shipping sector. There was no doubt that these projects entailed infrastructure as well as energy supply, and job opportunities, the CRI maintained.

According to the proposed two-gap model of economist Hollis B Channery, developing countries should introduce foreign investment and stimulate exports to boost their national economies. In this regard, CPEC has played an important role in the development of Pakistan.

The initiative has also addressed the issue of limited investment potential, insufficient foreign exchange savings and deficits in Pakistan, and has provided excellent quality for Pakistan’s economic growth.

Pakistan’s GDP growth rate is significant and it has created 70,000 jobs in Pakistan, the China-based Urdu service added.

Since its inception, CPEC has considered the elimination of energy shortages in Pakistan as an important sector for construction. Over a period of five years, energy projects under the CPEC framework added 3,340 MW of electricity to Pakistan in early April 2019, accounting for 11% of the installed capacity in the country.

The shortage of electricity has been significantly reduced and in addition to power generation projects, China has built the Matiari-Lahore (an 878 km long, 660 kV) HVDC transmission line project in Pakistan – the second HVDC transmission line in the world to extend the life of the country's power grid.

The construction of the corridor is progressing rapidly, significantly reducing Pakistan's energy problem in the process. Improvement in the transportation infrastructure has laid the foundation for the industrial development of Pakistan. The next phase of the project focuses on industrial cooperation.

Given the pace of the projects, their completion and results, it can be said that CPEC is undoubtedly a new impetus for the sustainable development of Pakistan, the CRI added.

Comment by Riaz Haq on June 30, 2022 at 4:10pm

Economic Survey of Pakistan 2021-22: Manufacturing

https://www.finance.gov.pk/survey/chapter_22/PES03-MANUFACTURING.pdf

Table 3.8: Production of Automobiles
Category Installed Capacity No. of Units 2020-21(July-March) 2021-22(July-March) %Change
CAR 341,000 106,439 166,768 56.7
LCV/JEEPS/SUV/Pickup 52,000 22,512 32,341 43.7
BUS 5,000 445 459 3.1
TRUCK 28,500 2,509 4,445 77.2
TRACTOR 100,000 36,900 41,872 13.5
2/3 WHEELERS 2,500,000 1,439,535 1,388,669 -3.5
Source: Pakistan Automotive Manufacturer Association (PAMA)

----------------

Table-3.2: Production of selected industrial items of Large-Scale Manufacturing
S# Items Unit Weights July-March % Change % Point Contribution 2020-21 2021-22
1 Deepfreezers (Nos.) 0.167 68,947 84,205 22.13 0.04
2 Jeeps and Cars (Nos.) 2.715 114,617 177,757 55.09 1.41
3 Refrigerators (Nos.) 0.246 928,170 1,024,335 10.36 0.02
4 Upper leather (000 sq.m.) 0.398 13,324 10,966 -17.70 -0.06
5 Cement (000 tonnes) 4.650 37,619 36,543 -2.86 -0.21
6 Liquids/syrups (000 Litres) 1.617 86,212 144,638 67.77 1.30
7 Phos. fertilizers (N tonnes) 0.501 545,612 601,184 10.19 0.06
8 Tablets (000 Nos.) 2.725 20,380,940 14,695,108 -27.90 -0.85
9 Cooking oil (tonnes) 1.476 334,107 370,181 10.80 0.21
10 Nit. fertilizers (N tonnes) 3.429 2,450,066 2,505,757 2.27 0.09
11 Cotton cloth (000 sq.m.) 7.294 786,042 788,285 0.29 0.02
12 Vegetable ghee (tonnes) 1.375 1,087,827 1,060,111 -2.55 -0.05
13 Cotton yarn (tonnes) 8.882 2,577,675 2,594,690 0.66 0.07
14 Sugar (tonnes) 3.427 5,618,976 7,759,825 38.10 2.13
15 Tea blended (tonnes) 0.485 100,566 112,544 11.91 0.06
16 Petroleum Products* (000 Litres) 6.658 - - 2.10 0.01
17 Cigarettes (million No) 2.072 39,473 46,070

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