Comments - Pakistan Tech Exports Continue to Soar: Up 40% in last 6 Months Amid COVID19 Pandemic - PakAlumni Worldwide: The Global Social Network 2024-03-29T06:09:57Zhttp://www.pakalumni.com/profiles/comment/feed?attachedTo=1119293%3ABlogPost%3A378977&xn_auth=noIT sector records sluggish gr…tag:www.pakalumni.com,2022-12-22:1119293:Comment:4171352022-12-22T02:34:20.805ZRiaz Haqhttp://www.pakalumni.com/profile/riazul
<p><span>IT sector records sluggish growth at 5%</span><br></br><span>Analysts say growth hindered due to government indifference, inconsistent policies</span><br></br><br></br><span><a href="https://tribune.com.pk/story/2392042/it-sector-records-sluggish-growth-at-5" target="_blank">https://tribune.com.pk/story/2392042/it-sector-records-sluggish-growth-at-5</a></span><br></br><br></br><span>Despite being entirely free from the cumbersome process of acquiring Letters of Credit (LCs) and not being dependent on…</span></p>
<p><span>IT sector records sluggish growth at 5%</span><br/><span>Analysts say growth hindered due to government indifference, inconsistent policies</span><br/><br/><span><a href="https://tribune.com.pk/story/2392042/it-sector-records-sluggish-growth-at-5" target="_blank">https://tribune.com.pk/story/2392042/it-sector-records-sluggish-growth-at-5</a></span><br/><br/><span>Despite being entirely free from the cumbersome process of acquiring Letters of Credit (LCs) and not being dependent on imports for its raw material, the export volume of the information technology (IT) sector only grew a meagre 5% in November year-on-year (YoY). Analysts are laying the blame for this low number on the government’s indifference towards unconventional export sectors.</span><br/><br/><span>Speaking to the Express Tribune on the condition of anonymity, an official from the Ministry of Information Technology and Telecommunication said, “Globally, IT companies’ exports grow in hundreds and thousands of times, a potential that Pakistan has in abundance but cannot tap into due to inconsistent policies. The cooperation of the finance ministry, Federal Board of Revenue (FBR) and State Bank of Pakistan (SBP) is crucial in this regard.”</span><br/><br/><span>“Any suggestion given to them by our ministry, however, is ignored,” said the official, lamenting that, “People in the government do not understand the export potential held by the IT sector.”</span><br/><br/><span>According to a Topline Research report by IT Analyst Nasheed Malik, “Pakistan’s IT exports for November 2022 increased by 5% YoY to $233 million due to a 29% jump YoY in telecom services. The exports also increased by 5% month-on-month (MoM) due to a 15% MoM increase in telecom services and 3% MoM in computer services.”</span><br/><br/><span>“The latest export number is also above the six-month rolling average of $221 million. Exports, however, are down by 10% from a peak of $260 million recorded in March 2022 but managed to cross the $230 million mark set in June 2022,” said Malik.</span><br/><br/><span>However, on a broader level, a slowdown is being witnessed with YoY growth averaging 6% in the last six months (June to November 2022), compared to the average growth of 17% YoY in December to May 2022.</span><br/><br/><span>“The IT Ministry has set an export target of $3 billion for FY2023,” said Malik, adding that, “With a current fiscal year monthly average rate of $217 million and a six-month rolling average of $221 million, there are concerns about whether Pakistan will be able to achieve the set target.”</span><br/><br/><span>In the five months of FY2023, IT exports are up by 3% YoY to $1.09 billion – the slight growth was witnessed due to a 5% YoY growth in computer services to $864 million.</span><br/><br/><span>According to a report conducted by Arif Habib Limited, the SBP’s reserves currently stand at around $6.7 billion, the lowest since January 18, 2019. Including the banks’ reserves of $5.9 billion, the total foreign reserves in the country stand at $12.6 billion – amounting to an import cover of less than one month – 0.99 months to be exact.</span><br/><br/><span>ICT Expert Parvez Iftikhar said, “So far, no government has been able to comprehend that the IT sector can help the country earn dollars without incurring any huge expenditures on raw material imports. This just indicates the lack of understanding in the government’s finance management team that decides on taxes and concessions.”</span><br/><br/><span>“If we equip our youth, however, with in-demand skill sets, facilitate them with in/out dollar payments, and high-quality internet connectivity, they’re quite capable of doubling the country’s exports within two years,” claimed Iftikhar, adding that the solution “isn’t even out-of-the-box!”</span><br/><br/><span>Si Global CEO Noman Ahmed Said told the Express Tribune that, “It is no secret that Pakistan is currently facing one of its worst economic crises yet and whilst the tech sector has consistently outperformed, it is no longer feasible for it to continue doing so at a snail’s pace.”</span><br/><br/><span>----</span><br/><br/><span>“Growth has slowed, but the trend still remains positive,” said Khurram Schehzad, CEO of ABCore.</span></p> Arif Habib Limited@ArifHabibL…tag:www.pakalumni.com,2022-07-27:1119293:Comment:4095252022-07-27T17:00:00.829ZRiaz Haqhttp://www.pakalumni.com/profile/riazul
<p>Arif Habib Limited<br/>@ArifHabibLtd<br/>During Jun’22, technology exports were up 12% YoY to $ 235mn. During FY22, technology recorded exports worth $ 2.6bn (38% of the overall services’ exports) marking a 24% YoY jump.</p>
<p><a href="https://twitter.com/ArifHabibLtd/status/1552323262889267203?s=20&t=pQZhjk6PdHGdxl4Pso9gYA" target="_blank">https://twitter.com/ArifHabibLtd/status/1552323262889267203?s=20&t=pQZhjk6PdHGdxl4Pso9gYA</a></p>
<p>Arif Habib Limited<br/>@ArifHabibLtd<br/>During Jun’22, technology exports were up 12% YoY to $ 235mn. During FY22, technology recorded exports worth $ 2.6bn (38% of the overall services’ exports) marking a 24% YoY jump.</p>
<p><a href="https://twitter.com/ArifHabibLtd/status/1552323262889267203?s=20&t=pQZhjk6PdHGdxl4Pso9gYA" target="_blank">https://twitter.com/ArifHabibLtd/status/1552323262889267203?s=20&t=pQZhjk6PdHGdxl4Pso9gYA</a></p> Pakistan’s tech exports witne…tag:www.pakalumni.com,2022-07-10:1119293:Comment:4092492022-07-10T05:00:53.783ZRiaz Haqhttp://www.pakalumni.com/profile/riazul
<p>Pakistan’s tech exports witness sharp 27% drop in May 2022<br></br><br></br><a href="https://www.techjuice.pk/pakistans-tech-exports-witness-sharp-27-drop-in-may-2022/" target="_blank">https://www.techjuice.pk/pakistans-tech-exports-witness-sharp-27-drop-in-may-2022/</a><br></br><br></br>Pakistan’s tech exports have taken a plunge for the first time since February 2021, as new data reveals that the country’s exports in the tech sector dropped by 27 percent in May 2022 as compared to April 2022.<br></br><br></br>As…</p>
<p>Pakistan’s tech exports witness sharp 27% drop in May 2022<br/><br/><a href="https://www.techjuice.pk/pakistans-tech-exports-witness-sharp-27-drop-in-may-2022/" target="_blank">https://www.techjuice.pk/pakistans-tech-exports-witness-sharp-27-drop-in-may-2022/</a><br/><br/>Pakistan’s tech exports have taken a plunge for the first time since February 2021, as new data reveals that the country’s exports in the tech sector dropped by 27 percent in May 2022 as compared to April 2022.<br/><br/>As per State Bank of Pakistan (SBP) data, IT exports in May amounted to $183 million while in April they were considerably higher at $249 million. Exports have fallen 8 percent year-on-year.<br/><br/>In May 2021, Pakistan exported $198 million worth of technology-related products and services. The technology sector witnessed exports worth $2.4 billion in 11 months of this fiscal year, contributing 38 percent to overall services’ export and marking a 25 percent year-on-year increase.<br/><br/>While IT export performance has certainly been encouraging, and has helped improve the country’s foreign exchange earnings, the monthly drop in exports in May is still far from an ideal scenario.<br/><br/>The reason being touted for the drop in IT exports is the extended Eid holidays. Since the pandemic resulted in a rise in freelancing, the export performance of country’s technology products and services stayed higher.<br/><br/>However, despite the Prime Minister of Pakistan’s ambitious declarations to target $15 billion in IT and IT-enabled services exports, the released budget brings down the industry’s potential to meet this aim. This was noted in a recent P@SHA press release.<br/><br/>According to Chairman P@SHA Badar Khushnood, the current taxation regime in place is “regressive” and has already proven disastrous for the IT industry’s growth.<br/><br/>“This year’s targeted exports of USD 3.5 billion are also not being achieved due to the introduction of an inefficient tax regime,” he stated. “Rather than facilitating the IT industry with more and better incentives to catalyze the existing organic growth, the previously announced one and the only benefit, i.e., ‘tax exemption’ committed till 2025 has been abruptly reneged and revoked. If nothing else, this is a recipe for disaster for a nascent yet fastest growing exports-led sector!”</p>
<p class="comment-timestamp"></p> While jumping 29 percent to $…tag:www.pakalumni.com,2022-01-26:1119293:Comment:4061432022-01-26T17:27:55.914ZRiaz Haqhttp://www.pakalumni.com/profile/riazul
<p>While jumping 29 percent to $251 million in December, IT exports surged 36 percent to $1.3 billion in the first half of this fiscal year, mostly riding a massive stream of investment pouring into Pakistan’s technology sector, data showed on Saturday.<br></br><br></br><br></br><a href="https://www.thenews.com.pk/print/927335-it-exports-surge-36pc-in-first-half-of-fy2022" target="_blank">https://www.thenews.com.pk/print/927335-it-exports-surge-36pc-in-first-half-of-fy2022</a><br></br><br></br><br></br>Technology…</p>
<p>While jumping 29 percent to $251 million in December, IT exports surged 36 percent to $1.3 billion in the first half of this fiscal year, mostly riding a massive stream of investment pouring into Pakistan’s technology sector, data showed on Saturday.<br/><br/><br/><a href="https://www.thenews.com.pk/print/927335-it-exports-surge-36pc-in-first-half-of-fy2022" target="_blank">https://www.thenews.com.pk/print/927335-it-exports-surge-36pc-in-first-half-of-fy2022</a><br/><br/><br/>Technology exports amounted to $667 million in the second quarter. Pakistan’s total IT exports stood at $1.44 billion in FY2020, which increased to $2.1 billion in FY2021.<br/><br/>According to Khurram Schehzad, CEO of Alpha Beta Core, this growth will gather more momentum down the line.<br/><br/>“Increased investment in the startup ecosystem is helping Pakistan develop technology infrastructure, which will in turn increase IT exports growth,” Schehzad said.<br/><br/>However, the recent increase in foreign investments in Pakistan, especially in tech based startups doesn’t reflect in the IT exports.<br/><br/>But Schehzad says it has been helping develop technology infrastructure and increase job opportunities in tech-based companies, which will eventually help increase IT exports further.<br/><br/>“I see IT exports recording a historic high of $2.8 billion to $3 billion in the fiscal year 2022,” an IT sector analyst said.<br/><br/>“But it depends on if the government is willing to incentivise the sector.”<br/><br/>He said the government also needed to establish tech zones to help the sector grow more.<br/><br/>He said around 15,000 IT companies were being established and hiring fresh employees, adding, expansion of the technology sector would subsequently fuel IT exports growth.<br/><br/>Wajid Rizvi, Head of Strategy and Economy at JS Global, expects IT exports to grow to $2.6 billion by the end of FY2022.<br/><br/>“The market-based exchange rate and devaluation of rupee has also enhanced the potential of technology sector exports as the companies/individuals associated with the sector receive their payments mostly in dollars,” Rizvi said.<br/><br/>He added that Pakistan was a net exporter of IT services and the sector had a great potential to grow, evident from a rising trend of software and other IT exports.</p>
<p class="comment-timestamp"></p> Arif Habib Limited@ArifHabibL…tag:www.pakalumni.com,2021-03-24:1119293:Comment:3996862021-03-24T01:07:07.536ZRiaz Haqhttp://www.pakalumni.com/profile/riazul
<p>Arif Habib Limited<br></br>@ArifHabibLtd</p>
<p>Technology exports up by 41% YoY during 8MFY21</p>
<p>During Feb’21, technology exports was up 69% YoY. <br></br>During 8MFY21, technology recorded exports worth USD 1,298mn (+41% YoY)</p>
<p><a href="https://twitter.com/ArifHabibLtd/status/1373720548316827648?s=20" target="_blank">https://twitter.com/ArifHabibLtd/status/1373720548316827648?s=20…</a></p>
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<p>Arif Habib Limited<br/>@ArifHabibLtd</p>
<p>Technology exports up by 41% YoY during 8MFY21</p>
<p>During Feb’21, technology exports was up 69% YoY. <br/>During 8MFY21, technology recorded exports worth USD 1,298mn (+41% YoY)</p>
<p><a href="https://twitter.com/ArifHabibLtd/status/1373720548316827648?s=20" target="_blank">https://twitter.com/ArifHabibLtd/status/1373720548316827648?s=20</a></p>
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<p><a href="https://storage.ning.com/topology/rest/1.0/file/get/8697944675?profile=original" target="_blank" rel="noopener"><img src="https://storage.ning.com/topology/rest/1.0/file/get/8697944675?profile=RESIZE_710x" class="align-full"/></a></p> IT exports rise 41pc to $1.3b…tag:www.pakalumni.com,2021-03-24:1119293:Comment:3997522021-03-24T00:58:14.248ZRiaz Haqhttp://www.pakalumni.com/profile/riazul
<p><span>IT exports rise 41pc to $1.3bln in July-Feb FY2021</span><br></br><br></br><span><a href="https://www.thenews.com.pk/print/808423-it-exports-rise-41pc-to-1-3bln-in-july-feb-fy2021" target="_blank">https://www.thenews.com.pk/print/808423-it-exports-rise-41pc-to-1-3bln-in-july-feb-fy2021</a></span><br></br><br></br><span>KARACHI: Pakistan’s information technology exports increased 41 percent to $1.3 billion in the eight months of this fiscal year, the central bank data showed on Monday, as the…</span></p>
<p><span>IT exports rise 41pc to $1.3bln in July-Feb FY2021</span><br/><br/><span><a href="https://www.thenews.com.pk/print/808423-it-exports-rise-41pc-to-1-3bln-in-july-feb-fy2021" target="_blank">https://www.thenews.com.pk/print/808423-it-exports-rise-41pc-to-1-3bln-in-july-feb-fy2021</a></span><br/><br/><span>KARACHI: Pakistan’s information technology exports increased 41 percent to $1.3 billion in the eight months of this fiscal year, the central bank data showed on Monday, as the coronavirus-related restrictions accelerated the demand for IT services to meet both social and economic needs of people.</span><br/><br/><span>IT exports rose 69 percent year-on-year to $179 million in February. The rise was 11 percent when compared with the previous month. Technology exports contributed 34 percent to overall services exports. Exports of services stood at $3.809 billion in July-February FY201, compared with $3.815 billion in the same period of the last fiscal year.</span><br/><br/><span>The growing use of digital means for making financial transactions and the measures taken by the State Bank of Pakistan (SBP) contributed to this rise in the exports of IT services. Electronic banking transactions increased 22 percent to Rs21.4 trillion in the second quarter of this fiscal year, according to the SBP’s Quarterly Payment System Review (QPSR) for the second quarter of the fiscal year 2020/21.</span><br/><br/><span>------------</span><br/><span>Pakistan’s IT exports maintain growth of 40% over 8 months</span><br/><br/><br/><span><a href="https://www.techjuice.pk/pakistans-it-exports-maintain-growth-of-40-over-8-months/" target="_blank">https://www.techjuice.pk/pakistans-it-exports-maintain-growth-of-40-over-8-months/</a></span><br/><br/><span>Pakistan’s IT sector has remained impressive throughout the current financial year, with consistent growth of above 40 percent in exports between July 2020 and February 2021.</span><br/><br/><span>According to data released by the State Bank of Pakistan (SBP), the export of IT and IT-enabled services had surged to $1.298 billion during July and February of the financial year 2020-21 as compared with the values of last financial year that had stood at $918 million. This shows an increase of $380 million or 41.2 percent, year-on-year.</span><br/><br/><span>The growth in exports has mainly been driven by the high demand for automation, e-commerce, software development, and other services of foreign clients who now prefer to place orders with Pakistani IT companies instead of other countries including India and the Philippines.</span><br/><br/><span>Industry experts have projected $2 billion worth of exports of the IT sector this year while considering the penetration of the local companies in various exportable countries in the different fields of the sector.</span><br/><br/><span>However, the local industry is fearful of being taxed heavily by the revenue collection authority, which may destabilize the prevailing trends of growth in the IT industry and its expansion.</span><br/><br/><span>The industry also fears being taxed as the government is mulling over the possible withdrawal of the tax exemption in the upcoming budget. It is demanding that the industry should be taxed duly after it achieves a sustainable level of maturity with a solid contribution to the economy.</span><br/><br/><span>The growth in the IT exports sector will strengthen the industry and facilitate the maintenance of the current account in surplus and the generation of employment for hundreds of skilled professionals.</span></p> Pakistani IT Exports Cross $1…tag:www.pakalumni.com,2021-02-24:1119293:Comment:3957572021-02-24T15:08:12.196ZRiaz Haqhttp://www.pakalumni.com/profile/riazul
<p>Pakistani IT Exports Cross $1 Billion Taking Clients From Indian Companies<br></br><br></br>According to data released by the State Bank of Pakistan, remittances under IT and IT-enabled services surged to $1.119 billion from July 2020 to January 2021 compared to $812 million recorded in the corresponding period of the last financial year, showing a handsome growth of 37 percent year-on-year…<br></br><br></br></p>
<p>Pakistani IT Exports Cross $1 Billion Taking Clients From Indian Companies<br/><br/>According to data released by the State Bank of Pakistan, remittances under IT and IT-enabled services surged to $1.119 billion from July 2020 to January 2021 compared to $812 million recorded in the corresponding period of the last financial year, showing a handsome growth of 37 percent year-on-year<br/><br/><a href="https://propakistani.pk/2021/02/23/pakistani-it-exports-cross-1-billion-taking-clients-from-indian-companies/" target="_blank">https://propakistani.pk/2021/02/23/pakistani-it-exports-cross-1-billion-taking-clients-from-indian-companies/</a><br/><br/>The growth in IT exports was driven by the increasing automation, and digitalized services in different countries after new ways of doing business emerged following the outbreak of COVID-19 worldwide.<br/><br/>Different foreign companies, mainly from the USA and EU markets, prefer placing their orders to Pakistani companies rather than Indian and the Philippines.<br/><br/>Barkan Saeed, Chairman Pakistan Software Houses Association (P@SHA) for IT and ITeS told Propakistani,<br/><br/>The growth in IT exports value was driven by the foreign clients moved from Indian companies to Pakistani companies in a post-COVID-19 scenario.<br/><br/>The government could double the exports from $2 billion per annum to $4 billion per annum by the next two years, with a concrete roadmap for the IT sector, which could not only fetch foreign exchange for the country, but it is a key sector that could provide the skilled job to millions of youngsters, Saeed further said.<br/><br/>Local IT companies and the government should work on a strategy to protect the growth of the IT sector on a sustainable basis for the future, he added.<br/><br/>Saeed demanded that IT should be declared a strategic sector with the same focus and treatment. The PM should resolve the pending issues of the sector immediately to unleash the true potential of the IT sector.</p>
<p class="comment-timestamp"></p> BRR (Business Recorder Resear…tag:www.pakalumni.com,2021-02-18:1119293:Comment:3924282021-02-18T06:13:54.855ZRiaz Haqhttp://www.pakalumni.com/profile/riazul
<p><span>BRR (Business Recorder Research) : With Pakistan competing with other countries in the region, where do you see Pakistan’s IT exports heading? Which areas need to be focused on to achieve the targets set by the IT ministry?</span><br></br><br></br><span>MN (Mahnoor Nadeem CEO REDTone): The MOITT is on a mission to first build an environment of innovation through knowledge parks, educational initiatives, investments in the start-up space etc.; and then incubate this country as a centre of…</span></p>
<p><span>BRR (Business Recorder Research) : With Pakistan competing with other countries in the region, where do you see Pakistan’s IT exports heading? Which areas need to be focused on to achieve the targets set by the IT ministry?</span><br/><br/><span>MN (Mahnoor Nadeem CEO REDTone): The MOITT is on a mission to first build an environment of innovation through knowledge parks, educational initiatives, investments in the start-up space etc.; and then incubate this country as a centre of excellence and development. This is a fantastic vision, because you are transforming the mindset of a country, to focus on core competencies and bridge gaps between talent and real-world experience.</span><br/><br/><span>If we can get our people to become more aligned with the innovation requirements of the world, we open ourselves up for business, which will immediately boost our IT exports, as our work will speak for itself. The key areas in development for local talent are IoT, Blockchain, Cloud/Edge Computing, Robotic Process Automation etc. We need to first get our people to understand the building blocks behind these innovations (which means giving them the right exposure/mentoring to understand how the tech was built, core languages/components behind it).</span><br/><br/><span>In short, the Ministry of IT is being led by brilliant people, they have the right vision and are taking necessary steps to incubate our domestic talent. The private sector needs to up their game, support the ministries initiatives and align efforts so that we are all moving in a cohesive manner.</span><br/><br/><span>BRR: Pivoting to retail, how is the retail ecosystem transforming, and how important is the role of digital payment system?</span><br/><br/><span>MN: Digital payments are essential to the growth of the retail sector, with more and more retailers augmenting their brick-and-mortar operations and making room for ecommerce initiatives, they need a robust digital payment system that can help them settle funds and receive payments efficiently.</span><br/><br/><span>The cash on delivery (COD) method relies on the transportation of physical cash from the buyer to the seller, one that is no longer necessary. To get rid of COD and truly embrace digital payments, we need to work on trust (both at the consumer and the retailer level - making sure that the right goods land on the right customers doorstep every time); real-time settlement to reduce the reconciliation and settlement process between buyer and seller to allow for smooth working; and incentivisation i.e., rewarding people for investing in a transparent business process - through cashbacks, tax incentives, smart-lending, rewards etc.</span><br/><br/><span>These measures build habit and reduce friction. If we put our weight behind digital payments, it will ease cashflow issues and reduce time to market, and hence lead to an efficient retail sector.</span><br/><br/><span>BRR: What impact do you think the introduction and implementation of Raast will have on the development of the retail ecosystem?</span><br/><br/><span>MN: Raast is Pakistan’s first instant payment system that will enable end-to-end digital payments among individuals, businesses, and government entities instantaneously. It aims to act at the centre of the Digital Financial Services ecosystem. As this begins to grow, stakeholders will be able to make instant transactions, with ease, which will allow for real time settlements at very low costs. With our proposition of digitising the kiryana ecosystem through REDRETAIL, an initiative such as Raast will play a pivotal role - it will allow us to have real time settlements between our merchants, distributors, manufacturers, and consumers, thereby optimising the ecosystem. I look forward to the exponential growth in digital payments we will witness through Raast - currently such payments only account for 0.2 percent of Pakistan’s transactions.</span><br/><br/><span>Our goal at REDtone has always been to enable innovation and digitisation in the country, and SBP’s initiatives such as these play an enabling and complementary role, thereby propelling Pakistan towards a digital and cashless society.</span><br/><br/><br/><span><a href="https://www.brecorder.com/news/40063876" target="_blank">https://www.brecorder.com/news/40063876</a></span></p> #Pakistan large-scale #manufa…tag:www.pakalumni.com,2021-02-12:1119293:Comment:3894342021-02-12T21:23:35.074ZRiaz Haqhttp://www.pakalumni.com/profile/riazul
<p><span>#Pakistan large-scale #manufacturing grew 11.4% in Dec 2020. #Automobiles (43.91%), #pharmaceuticals (13.82%), Textile (3.54%), food, beverages and tobacco (17.72%), coke and petroleum products (23.91%), chemicals (16.95%), fertilizers (11.98%). #economy…</span></p>
<p><span>#Pakistan large-scale #manufacturing grew 11.4% in Dec 2020. #Automobiles (43.91%), #pharmaceuticals (13.82%), Textile (3.54%), food, beverages and tobacco (17.72%), coke and petroleum products (23.91%), chemicals (16.95%), fertilizers (11.98%). #economy <a href="https://profit.pakistantoday.com.pk/2021/02/12/large-scale-manufacturing-expands-11-4pc-in-december/#.YCbvgoNlm3Q.twitter" target="_blank">https://profit.pakistantoday.com.pk/2021/02/12/large-scale-manufacturing-expands-11-4pc-in-december/#.YCbvgoNlm3Q.twitter</a></span><br/><br/><span>Large-scale manufacturing (LSM) in Pakistan grew 11.4 per cent in December 2020 as compared to December 2019, data released by Pakistan Bureau of Statistics (PBS) on Friday showed.</span><br/><br/><span>LSMI Quantum Index Number (QIM) was recorded at 167.21 points in December 2020 against 150.11 points in December 2019.</span><br/><br/><span>As per the data, the overall LSM output increased 8.16pc during the first half (July-Dec) of the current fiscal year (FY21), compared to the corresponding period of last fiscal year. Industrial production during July-Dec FY21 was recorded at 143.30 points against 132.49 points last year.</span><br/><br/><span>The highest increase of 6.23pc was witnessed in the indices monitored by the Ministry of Industries, followed by 1.63pc increase in indices monitored by the Provincial Board of Statistics and 0.29pc increase in the products monitored by the Oil Companies Advisory Committee (OCAC).</span><br/><br/><span>Meanwhile, on a month-on-month basis, the country’s industrial output witnessed an increase of 13.51pc in December 2020 when compared with November 2020.</span><br/><br/><span>Major sectors that showed a positive growth during the month under review included textile (3.54pc), food, beverages and tobacco (17.72pc), coke and petroleum products (23.91pc), pharmaceuticals (13.82pc), chemicals (16.95pc), automobiles (43.91pc), non-metallic mineral products (17.52pc), fertilizers (11.98pc), paper & board (8.93pc) and rubber products (8.24pc).</span><br/><br/><span>On the other hand, LSM industries that witnessed a negative growth in December included electronics (35.59pc), leather products (40.55pc), engineering products (23.93pc) and wooden products (30.20pc).</span></p> China has given immediate dut…tag:www.pakalumni.com,2021-02-10:1119293:Comment:3884092021-02-10T20:41:59.142ZRiaz Haqhttp://www.pakalumni.com/profile/riazul
<p><span>China has given immediate duty-free access for 3,707 (45%) tariff lines. A further 30% of tariff lines will have duty-free access by 2030. Tariffs on 412 tariff lines will be reduced by 20% in five years while tariffs will remain at base year (2013) levels for 1,867 (20%) tariff lines.…</span><br></br><br></br></p>
<p><span>China has given immediate duty-free access for 3,707 (45%) tariff lines. A further 30% of tariff lines will have duty-free access by 2030. Tariffs on 412 tariff lines will be reduced by 20% in five years while tariffs will remain at base year (2013) levels for 1,867 (20%) tariff lines.</span><br/><br/><span><a href="https://tribune.com.pk/story/2266948/china-pak-ties-fta-ii-a-significant-milestone" target="_blank">https://tribune.com.pk/story/2266948/china-pak-ties-fta-ii-a-significant-milestone</a></span><br/><br/><span>CPFTA-II will significantly improve Pakistani exporters’ access to the $2 trillion Chinese import market and thus help address the country’s trade deficit.</span><br/><br/><span>The tariff structure applicable to Pakistan under CPFTA-II shows a marked improvement over CPFTA-I. On over 80% of CPFTA-II product lines that China imports, Pakistan is now offered tariffs that are lower than or equivalent to those applied to China’s main trade partners.</span><br/><br/><span>Tariffs on nearly 40% of CPFTA-II products that China imports have been reduced compared to CPFTA-I and 45% of the tariff lines are now being offered duty-free access to China. Potential items that Pakistan could export to China include seafood, garments, synthetic blankets and knitwear shirts.</span><br/><br/><span>“Focus on these items in exports to China can provide Pakistan with easy gains in the short to medium term,” said Khalil. In the long term, “Pakistan needs to export those items which China imports but Pakistan does not export at present,” he said.</span><br/><br/><span>As a starting point, Pakistan can gain market access for export of machinery, mechanical appliances, electrical equipment and parts, mineral fuels, optical, photographic and surgical equipment, plastics, vehicles and essentials.</span><br/><br/><span>Industrialisation in the country and production of these goods must be the top priority of the government in a bid to ease the burden of imports and gain access to the Chinese and other global markets.</span><br/><br/><span>Market demand</span><br/><br/><span>With this opportunity, a question arises whether Pakistan can produce goods according to demand in the Chinese market?</span><br/><br/><span>“In order to evaluate Pakistan’s ability to produce good-quality goods as per Chinese market demand, it is important to see it in the context of Pakistan’s trade performance in general,” suggested Khalil.</span><br/><br/><span>Pakistan’s global export performance has declined over the past two decades – reasons for this include low competitiveness and exports of low value-added and non-unique products.</span><br/><br/><span>Apart from the textile sector, Pakistan has largely lost the world market over the past five years. Low value-added products are the main hindrance in the way of meeting Chinese market demand.</span><br/><br/><span>“Industrialisation is the need of the hour for building capacity to produce sufficient goods, which can satisfy domestic and international demand,” said Khalil.</span><br/><br/><span>“There is also a substantial information deficit facing Pakistani businesses. Factors behind this include a lack of research on China, identifying Chinese partners and meeting regulatory requirements,” he said.</span><br/><br/><span>“In order to translate the improved tariff concessions into sustained exports, the government must address the issues related to capacity building amongst Pakistani businesses and issues pertaining to ease of doing business – both of which affect the ability to deliver orders of the scale required in China within the specified time,” said the former KCCI official</span></p>