Comment by Riaz Haq on July 19, 2021 at 12:39pm

Indus Motors CEO on #Manufacturing Boom in #Pakistan:"As (car production) volumes (in Pakistan) grow from 250,000 to 500,000 units, at least one million new jobs will be created by the auto industry alone which augurs well for the present (#PTI) government"https://www.dawn.com/news/1635836

The government has showered auto assemblers with a number of incentives like a cut in the Federal Excise Duty (FED) by 2.5 per cent, additional customs duty (ACD) from 7pc to 2pc and general sales tax (GST) to 12.5pc from 17pc on cars up to 1,000cc. Consumers have recently witnessed price cuts of Rs11,000-400,000 on different engine power vehicles.

Industry people believe that the cut in duties and taxes in Budget 2021-22 is an integral part of the new Auto Development Policy 2021-2026 and some more relief measures are on the cards when the new auto policy will be unveiled.

Chairman Pakistan Automotive Manufacturers Association (Pama), Ali Asghar Jamali said the industry is extremely grateful to the government for duty and tax rationalisation that will certainly help grow industry volumes and in the process create more jobs — as the auto industry has the highest job multiplier effect.

“We are optimistic that through increased volumes the industry will generate more revenue for the government, create more jobs and increase economic activity in the country,” he said.

He said car and sports utility vehicle (SUV) sales would increase in 2021-22 after cuts in duties and taxes as almost all players have reflected the decrease in their prices. “Together with lower interest rates, growing remittances and a stable exchange rate and economy, demand should remain healthy for vehicles,” Mr Jamali said.

Comment by Riaz Haq on July 20, 2021 at 6:33pm

#Pakistan Commerce Chief says country aims to unlock #manufacturing & export potential. #Export-led growth & Make in Pakistan are our priorities. Exports reached a record $31.3b (goods $25.3b) & (services $6b) in fiscal 2020-21 despite #pandemic challenges https://gn24.ae/c047920aa036000

PAKISTAN EYES MASSIVE PARTICIPATION IN EXPO 2020 DUBAI
* The large-scale manufacturing sector recorded nine per cent growth during July-March 2020-21 – indicating a strong post-pandemic recovery.
* To bolster exports, the government has removed three barriers: Shift from fixed parity that artificially overvalued rupee, giving refunds to exporters and industrialists on time and exemptions on customs duties mainly on raw materials.
* The Ministry of Commerce has set its eyes on the export target of $35 billion in the next fiscal year.
As the country plans to move beyond simple manufacturing, the five key areas of focus will be: pharmaceutical, engineering, food processing, fisheries, fruits and vegetables.
* To identify new markets and boost trade ties and investments, Pakistan is eyeing massive participation at Expo 2020 Dubai.
“Make in Pakistan is our top priority now” Dawood asserted. Pakistan’s policy in the past has been to support trading rather than manufacturing which is now changing under Khan’s administration. “Manufacturing is wealth creation. It helps build industries, create more jobs” which Pakistan, a country of 220 million people, desperately needs. The large-scale manufacturing sector recorded nine per cent growth during July-March 2020-21 – indicating a strong post-pandemic recovery. Industrial support packages, incentives such as gas and electricity at regionally competitive rates for export-oriented businesses, tax exemptions for high-performing sector manufacturers helped achieve this growth.

Comment by Riaz Haq on August 3, 2021 at 11:28am

#Pakistan's domestic #oil consumption in FY2021 (July 2020-June 2021) totaled 19.45 million tons, up 19% from the 16.36 million tons in the previous year as #economic activity picked up and the country's imports moved to Euro 5. #energy #economy #COVID https://www.spglobal.com/platts/en/market-insights/latest-news/oil/...

Pakistan plans to secure adequate supply of middle distillates to supplement its improving economy but expectations of tight Chinese motor fuel exports for the second half of 2021 may prompt the South Asian nation to raise imports from other main supply sources in the Middle East, according to oil product trading sources and market analysts based in Karachi.

Pakistan's domestic oil consumption in fiscal year 2021 (July 2020-June 2021) totaled 19.45 million mt, an increase of 19% from the 16.36 million mt consumed over the same period the previous year as an improvement in domestic economic activity led to a strong uptick in gasoil and gasoline demand, data by the country's Oil Companies Advisory Council showed.
The uptick in gasoil demand was evidenced by the 18% year-on-year jump in diesel sales over FY 2021 to 7.699 million mt, in contrast with 6.546 million mt consumed in FY 2020, the data showed.

Easing COVID-19 restrictions during the last fiscal year increased industrial activity, boosting overall demand for petroleum products, which helped the economy to grow 3.94% after two years, Shahrukh Saleem, research analyst at Karachi-based ALD Securities, said.

Moreover, diesel sales also increased on the back of a stimulus package in the farming sector, with subsidies given to the sector to aid in the increase in agricultural output, another industry source said.

In addition to gasoil demand, Pakistan also recorded a sharp year-on-year growth in gasoline consumption -- the result of a recovering automobile sector.

According to data from the OCAC, Pakistan's petrol sales recorded an increase of 13% to 8.237 million mt in FY 2020.

"Lower interest rates enticed consumers to borrow funds to buy cars on installments," Tahir Abbas, head of research at Arif Habib Securities, said.

In FY 2021, domestic car sales rose to 181,397 units, from 111,632 units a year earlier, data from Pakistan's Automotive Assemblers Association showed.

Middle distillate supply sources
The improvement in Pakistan's gasoil and gasoline demand helped to absorb barrels from the regional market, with traders saying that this may have a knock-on effect of shoring up prices should this upward trend be sustained.

Pakistan imported around 800,000 mt of gasoline from China in H1 2021, almost double the 437,000 mt received in H2 2020, latest data from China's General Administration of Customs showed.

This is especially so given that regional supply balances are tightening, with several sources noting that deep cuts to oil product export volumes from North Asian producers, in particular China, have resulted in a tight outlook for the rest of 2021.

China's middle distillate exports are expected to fall over the coming months as Beijing looks to limit oil product export permits in an effort to cut emissions to meet the country's carbon zero target, while reserving enough barrels for domestic consumers.

Beijing is likely to allocate about 7.5 million-9.5 million mt of quotas for exporting gasoline, gasoil and jet fuel in the final round of allocation for this year, S&P Global Platts reported earlier. If the allocation hits 9.5 million mt, the total allocation would work out to 39 million mt for 2021, about 14.7% lower from the actual export level of 45.75 million mt in 2020, Platts calculations showed.

Reflecting the tight supply outlook, the physical FOB Singapore 10 ppm sulfur gasoil crack spread against front-month cash Dubai averaged $6.96/b over July, sharply higher than the $5.17/b average in January.

Comment by Riaz Haq on August 31, 2021 at 4:23pm

#Pakistan's TPL Plans to Raise $500 Million REIT to Gain From #NayaPakistan #Construction Push. It is seeking to raise 60% of the targeted funds from foreign investors, 30% from domestic investors & the rest from its parent TPL #Properties Ltd. #Karachi https://www.bloomberg.com/news/articles/2021-08-31/tpl-plans-pakist...

A unit of Pakistan’s TPL Corp. plans to raise as much as $500 million through a private real estate investment trust, marking one of the largest such fundraisings in the nation’s history.

TPL REIT Management Co. is seeking to raise 60% of the targeted funds from foreign investors, 30% from domestic investors and the rest from its parent TPL Properties Ltd., according to Ali Jameel, CEO of TPL Corp. The hybrid real estate investment trust plans to close the deal by June, and will offer an internal rate of return of more than 30% in local currency, he said.

Comment by Riaz Haq on October 20, 2021 at 9:15pm

#Pakistan to increase #automobile production to 8 million units per year to meet growing demand. Representatives of over 50 renowned automobile companies from different parts of China attended the seminar addressed by Pak envoy in #Beijing. #manufacturing https://dailytimes.com.pk/831684/pakistan-to-enhance-auto-productio...

“It is a bit ambitious target but it is possible to achieve this target due to the yearly growth in production as well as interest showed by different automobile companies from across the world especially from China which plans to invest in Pakistan,” he said while addressing Pakistan Automobile Industry Roundtable Seminar held at Pakistan Embassy, Beijing.

While addressing the participants, the ambassador said that a number of the Chinese companies are already in Pakistan in automobile manufacturing sector while up to 10 new companies have shown interest to invest in Pakistan and are in the process of having joint ventures with their local partners in the private sector. He informed that the government is formulating a new and very attractive automobile sector policy which will be announced soon, adding, more incentives and concessions in taxes are likely to be offered in the new policy.

Ambassador Haque said that automobile companies including manufacturers of energy vehicles from China will be invited to set up their plants both in the Greenfield and Brownfield sectors.

Giving details about the automobile sector in Pakistan, he said that the automobile is the fastest growing sector in Pakistan because of the large demand in view of the population which is close to 220 million people. In the past, the Japanese manufacturers had set up their production units but in recent times the Chinese automobile companies also started looking at the opportunities available in Pakistan.

Comment by Riaz Haq on November 18, 2021 at 10:23am

Saudi company signs MOU to invest in $12 billion real estate project in Pakistan


https://www.arabnews.pk/node/1968296/pakistan

Sarh Attqnia Company will partner with Javedan Corporation for an urban development project on banks of Lahore’s Ravi river
‘Join us,’ Riyadh-based investor tells other Saudi companies to invest in Pakistan


KARACHI: A Riyadh-based engineering and construction firm has signed an investment agreement in a $12 billion real estate project in the eastern city of Lahore with a Pakistani business consortium, officials said on Monday.
An MOU between Sarh Attqnia Company (SAC) and the Pakistani party, Javedan Corporation, was signed in Karachi on Sunday for the construction and development of the first phase of upcoming ‘Ravi City’ project to be built on 2,000 acres of land along the banks of the historic river Ravi.
The agreement comes hot on the heels of the recently held Riyadh investment conference during the three-day visit of Pakistani Prime Minister Imran Khan to Saudi Arabia last month.
“Investment conference was held in Riyadh where large Saudi companies participated... Fortunately, we got in touch with one of the big developers’ company- Sarh Attqnia- which was looking for some opportunities for development here (in Pakistan) as a partner,” Arif Habib, Chairman of Arif Habib Group of which the Javedan Corporation is a subsidiary, said at the signing ceremony of the agreement.
Habib said the Saudi company would contribute “financially and technically as well.”

Comment by Riaz Haq on November 19, 2021 at 11:18am

#Pakistan providing subsidies, incentivizing #construction industry. #imrankhanPTI: Rs 35 billion allocated for low income buyers. Rs. 300,000 subsidy on every house for the first 100,000 homes. #NayaPakistan #economy https://www.pakistantoday.com.pk/2021/11/19/govt-providing-subsidie... via @ePakistanToday

While visiting Naya Pakistan Housing Authority’s project Farash Town Apartments in Islamabad on Friday, Prime Minister Imran Khan expressed the government is providing subsidy and incentivising construction industry to help low income people to have their own houses.

The prime minister said thirty-five billion rupees have been allocated for subsidy on construction of houses by the low income people. He said the government will provide three hundred thousand rupees subsidy on every house for the first one hundred thousand units.

He said while one hundred thousand apartments are under construction, the process will now speedily move forward as the structure of the system has been finalised.

He said the construction industry has been incentivised in different ways including tax relief. He said One Window Operation has also been started to facilitate the construction sector.

Regarding Farash Town, the prime minister said of the total 4400 apartments, 2000 each have been allocated for low income people and middle income people and four hundred apartments will be provided to slum dwellers.

The premier, while chairing a separate meeting, said Ravi Urban Development Authority and Central Business District projects will promote modern, self-sustained, clean and green residential and business facilities in the country.

The PM said these projects are very crucial for attracting foreign direct investment in housing and construction sectors in the country. The prime minister directed the authorities to win over maximum investment for both the projects.

Earlier, the prime minister was informed that work on the development of basic infrastructure including roads, sewerage and drainage in the Central Business District is in full swing and is likely to be completed ahead of schedule. The construction work on Bab-e-Pakistan Project will also start soon.

The prime minister was apprised that the Ravi Urban project is all set to develop its Saphire Bay Project. A state of the art industrial estate, powered by renewable energy, is also ready to be launched very soon.

Comment by Riaz Haq on November 29, 2021 at 10:20am

Iron, steel output swells to 4.7m tonnes

https://www.dawn.com/news/1646475

KARACHI: The production of iron and steel, with billets/ingots mainly used in the construction industry, in the last 10 years swelled by 196 per cent to 4.777 million tonnes in FY21 from 1.616m tonnes in FY12.

H/CR sheets/strips, coils/plates, also known as flat steel products for production of electronics, surged to 3.296m tonnes in FY21 from 1.850m tonnes in FY12, Pakistan Bureau of Statistics (PBS) data of Large-Scale Manufacturing (LSM) showed.

Rising production of steel related products has led to higher imports of raw materials. For making steel bars, the country’s iron and steel scrap imports in FY21 rose to 4.719m tonnes costing $1.86bn from 1.568m tonnes valuing $538m in 2011-12, the PBS figures showed.

Besides, iron and steel imports swelled to 2.992m tonnes amounting to $1.959bn in FY21 from 1.755m tonnes ($1.4bn) in 2011-12.


Commenting on rising demand for steel bars, Pakistan Association of Large Steel Producers Secretary General Syed Wajid Bukhari said steel bar production till 2011-12 was about three to 3.5m tonnes while the current demand now hovers between 6.5m tonnes to 7m tonnes.

He attributed increase in steel bar prices to soaring scrap prices in the world market to $550 per tonne from $300 per tonne while one dollar is now equal to 168 as compared to Rs85 in 2011-12.

He said gas price increased to Rs97 per unit from Rs15 per unit in the last 10 years followed by power tariff to Rs21 per unit from Rs6 per unit. Freight charges are 100 per high now.

Mr Bukhari was of the view that steel bar demand would soar to nine to 10 million tonnes by 2023-24 in view of rising construction activities.

Private sector consumes 80pc of total steel bar production as compared to 20pc by the public sector, he added.

Hassan Bakhshi, former chairman Association of Builders and Developers (ABAD), said a multi-storey high project to be built on 1,000 yards plot with three floors for car parking requires around 1,100 tonnes of steel bars.

He claimed that steel bar demand has been on the rise due to 80pc construction work on highrise projects in Punjab while the Sindh Building Control Authority (SBCA) has been creating problems in clearing new projects.

“Only 91 projects have been cleared by the SBCA in the last two years in Karachi as compared to 500-7,000 projects a year some 10 years back,” he said.

The projects being promoted on the social, print and electronic media belong to Punjab while in Karachi, advertisement campaigns have been running for old projects which had been approved very late.

Pakistan Association of Parts and Accessories Manufacturers Association chairman Abdul Rehman Aizaz was of the view that auto assemblers and their vendors consume 15,000-20,000 tonnes per month of iron and steel in different forms which are used in making different parts by the vendors and the assemblers.

Bike production swelled to 2.475m units from 1.645m units in FY12, while jeeps/cars production rose to 163,122 units from 154,706 units in FY12.

Trucks and buses production in FY21 jumped to 3,808 and 570 units from 2,597 and 568 units FY12.

Domestic appliances and electronic products have shown phenomenal growth in the last 10 years. For example, production of refrigerators, deep freezers and air conditioners has swelled to 1.337m units, 109,029 units and 505,493 units from 1.062m units, 56,313 units and 240,338 units in FY12. Electric fans production rose to 2.498m units from 1.908m units.

Comment by Riaz Haq on December 11, 2021 at 6:39pm

Engro Corporation
@EngroCorp
·
Dec 10
With the addition of new 100,000 tons PVC III Plant, inaugurated by PM
@ImranKhanPTI
, Engro Polymer & Chemicals will now contribute around $240 million towards import substitution per annum, and fulfill export orders as well.


https://twitter.com/EngroCorp/status/1469376775914459141?s=20

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

Prime Minister Imran Khan inaugurated on Friday a 100,000-tonne PVC III plant of Engro Polymer and Chemicals (EPCL), which will enable import substitution of polyvinyl chloride (PVC) and boost exports, a press release said.

Addressing the ceremony, Prime Minister Khan said the government supports the expansion of local businesses in order to ensure import substitution and achieve higher exports. He urged the business community to focus on import substitution and diversification of the export base to support sustainable economic growth.

A subsidiary of Engro Corporation, EPCL is the only fully integrated chlorvinyl chemical complex and producer of PVC in Pakistan.

The plant expansion took place with up to $50 million financing support from the International Finance Corporation (IFC) and leveraged global expertise in project execution with a Japanese licenser and Chinese construction team.


EPCL can now produce 295,000 tonnes of PVC per annum. The press release said EPCL will now be contributing around $240m towards import substitution.

The company also exported PVC resin worth $25m to Turkey and the Middle Eastern markets in 2021. Demand for PVC has grown at six per cent a year, with around 70pc of the consumption originating from the construction sector.

https://www.dawn.com/news/1663146

Comment by Riaz Haq on December 24, 2021 at 8:36am

Faseeh Mangi
@FaseehMangi
Pakistan's subsidized house finance scheme data
-260b rupees ($1.5 billion) requested by people
-109b rupees ($600 million) approved for small houses
- 32b rupees disbursed

https://twitter.com/FaseehMangi/status/1474358251068313601?s=20

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

Prime Minister Imran Khan on Wednesday formally launched the Naya Pakistan Card initiative, bringing mega welfare programmes of the Pakistan Tehreek-i-Insaf (PTI) government covering health, education, food and agriculture sectors under one umbrella.

https://www.dawn.com/news/1662707

With the launch of Naya Pakistan Card, which covers Ehsaas Ration Programme based on a food subsidy package for low-income families, Kisan Card, Sehat Card and scholarships for students, beneficiaries of various initiatives can avail all services on the same card.

Addressing the ceremony held at the Governor House, Prime Minister Khan said that Kamyab Pakistan scheme was also in the pipeline under which two million eligible families would receive Rs400,000 interest-free loans for self-employment, free technical education to one member of each registered family, Rs2.7 million loan for house construction and free health insurance.

He said the proposed Kamyab Pakistan programme to be launched in the KP province would be extended to other provinces later.

Says a project promising interest-free loan for 2m eligible families is on the anvil

Besides, the government was awarding 6.3m scholarships to students to encourage them to pursue higher education as Rs47bn had been allocated in this regard, he said.

In order to ensure award of scholarships on merit, a special cell was being set up at the PM secretariat to collect students’ data, he announced

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