“We are not relying on importing mobile phones from China but our focus is the transfer of technology in the country so that we could manufacture our own product here. We have already started an assembly line for the laptops in Pakistan”, Afridi said in an interview with More magazine.
Haier Pakistan is currently producing refrigerators, deep freezers, washing machines, home air conditioners, commercial air conditioners, television sets, microwave ovens and other small appliances in a special economic zone (SEZ) on the outskirts of Lahore.
“Pakistan is one of eight countries around the world where the Chinese government plans to help its investors set up and operate SEZs, to use the country as a major base for manufacturing and exporting goods to the rest of the world. These zones have to be privately owned and operated,” said Afridi, who also heads the Haier-Ruba SEZ Company, according to Pakistan's Dawn newspaper.
Haier entered the Pakistan market in February 2001 by jointly establishing a facility with Pakistan-based Panapak Electronic Company to produce Haier air conditioners. The Group opened Haier (Pakistan) Industrial Park in Lahore in April 2001. In 2004, Haier was the first foreign brand home appliance manufacturer in Pakistan to obtain the ISO9001:2000 Certification, according to Andrew Delios, the author of "International Business: An Asia Pacific Perspective".
After 13 years in Pakistan, Haier has become the second most popular home appliance brand in the country. Haier Pakistan has maintained the highest market share for air-conditioners and washing machines for several years while Haier refrigerators curently enjoy the second highest market share. According to a Millward Brown survey in 2013, Haier has achieved 94% brand awareness, the second highest in the country.
Under the agreement signed by Chinese and Pakistani leaders at a Beijing summit recently, $15.5 billion worth of coal, wind, solar and hydro energy projects will come online by 2017 and add 10,400 megawatts of energy to the national grid. An additional 6,120 megawatts will be added to the national grid at a cost of $18.2 billion by 2021.
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| Pak-China Industrial Corridor Source: Wall Street Journal |
The transport and communication infrastructure—roads, railways, cable, and oil and gas pipelines—will stretch 2,700 kilometers from Gwadar on the Arabian Sea to the Khunjerab Pass at the China-Pakistan border in the Karakorams.
Starting in 2015, the Chinese companies will invest an average of over $7 billion a year until 2021, a figure exceeding the previous record of $5.5 billion foreign direct investment in 2007 in Pakistan.
Beyond the initial phase, there are plans to establish special economic zones in the Corridor where Chinese companies will locate factories. Extensive manufacturing collaboration between the two neighbors will include a wide range of products from cheap toys and textiles to consumer electronics and supersonic fighter planes.
The basic idea of an industrial corridor is to develop a sound industrial base, served by competitive infrastructure as a prerequisite for attracting investments into export oriented industries and manufacturing. Such industries have helped a succession of countries like Indonesia, Japan, Hong Kong, Malaysia, South Korea, Taiwan, China and now even Vietnam rise from low-cost manufacturing base to more advanced, high-end exports. As a country's labour gets too expensive to be used to produce low-value products, some poorer country takes over and starts the climb to prosperity.
Once completed, the Pak-China industrial corridor with a sound industrial base and competitive infrastructure combined with low labor costs is expected to draw growing FDI from manufacturers in many other countries looking for a low-cost location to build products for exports to rich OECD nations.
The CPEC will not be just an economic or industrial corridor; it'll also be a strategic corridor for both China and Pakistan in countering the growing US-India alliance and Obama's Asia Pivot both of which are seen as a threat to the regional stability of South Asia.
Clearly, China-Pakistan ties have now become much more strategic than the US-Pakistan ties, particularly since 2011 because, as American Journalist Mark Mazzetti of New York Times put it, the Obama administration's heavy handed policies "turned Pakistan against the United States". A similar view is offered by a former State Department official Vali Nasr in his book "The Dispensable Nation".
Here's a video about Haier laptop assembly in Pakistan:
https://youtu.be/K2H9BC1G3J8?list=PLZIgsmZfIYkq3VjROsXyBMkEmEuul2uLL
Related Links:
Haq's Musings
3G, 4G Rollout in Pakistan
Pakistan Starts Manufacturing Tablets and Notebooks
China-Pakistan Industrial Corridor
US-Pakistan Ties and New Silk Route
Can Pakistan Say No to US Aid?
Obama's Pakistan Connections
Seeing Bin Laden's Death in Wider Perspective
China's Investment and Trade in South Asia
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44 comments:
Laptops are facing a quick death worldwide. Aside from that, a friend of mine exports nearly 200,000 used corporate throwaway laptops from the US to Pakistan, guaranteeing them only in a contract that he would wipe all drives and install brand new operating system before selling. He has a big sweat shop in Faisalabad
He sells the laptops for about Rs. 20,000 +/- a piece. Still, he has tough competition since there are many importers like him in Pakistan.
Syed: "Laptops are facing a quick death worldwide."
Pakistan is bucking the trend in declining PC sales in MENA region:
PC sales in Africa and the Middle East (AME) will decline by 2% in 2014, with sales remaining flat to slightly negative for the next five years, according to new research by International Data Corp (IDC).
This is despite a positive third quarter in 2014, when the market expanded by 2,1% in volume terms year on year to reach 4,26m units. The grow was spurred in large part by two significant education orders in Pakistan and the revival of the Egyptian market.
Growth on the third quarter was seen across both the desktop and portable PC segments, IDC said. Desktop shipments to AME increased by 3,6% year on year to 1,73 million units, while shipments of portable PCs were up by 1,1% to 2,53m units.
“The market overcame ongoing instability in certain parts of the region to maintain its state of growth in the third quarter of 2014,” said Fouad Rafiq Charakla, research manager for personal computing, systems and infrastructure solutions at IDC Middle East, Turkey and Africa. “For example, the Nigerian market was hit hard by the outbreak of Ebola, while the war-like situation in Iraq greatly inhibited shipments to the ‘rest of the Middle East’ sub-region comprising Iran, Iraq, Syria, Yemen, Palestine and Afghanistan.”
PC makers also had to contend with a general slowdown in PC demand across the region due to the growing popularity of tablets and smartphones, said Charakla. “Indeed, an overall regional decline was only averted by the delivery of 150 000 notebooks into Pakistan’s education sector and the return of relative calm to Egypt, which saw these two countries become by far the fastest growing markets during the quarter.”
The three leading PC vendors in AME remained unchanged from the previous quarter. Hewlett-Packard continued to lead in market share, posting year-on-year unit growth of 14,4% for the quarter. Second-placed Lenovo continued to benefit from strong consumer demand and was again the fastest growing major PC vendor in the region, increasing its shipments by 58,2% year on year. Third-ranked Dell recorded 23% year-on-year growth, with one of the education deals in Pakistan serving as a major driver of sales.
Despite this, IDC expects the AME PC market to shrink by 2% overall in 2014. “The market will remain close to flat over the coming five years, and may even experience some minor declines, with demand for both desktops and portable PCs continuing to slow in many parts of the region. However, a number of underpenetrated markets — including Egypt, Pakistan, Nigeria and some smaller African countries — will continue to experience growth, preventing the overall region from experiencing any significant declines.” — © 2014 NewsCentral Media
http://www.techcentral.co.za/regions-pc-market-to-slump-by-2/53387/
I think should be called assembling not manufacturing.
Paki: " think should be called assembling not manufacturing."
You have an outdated notion of manufacturing.
The days of vertically integrated manufacturing companies are long gone. Major manufacturing companies today assemble parts sourced from hundreds if not thousands of different vendors spread across the world forming a modern supply chain.
Even fast food restaurant companies like McDonald's buy hamburger buns, beef patties, lettuce, tomatoes, fries, sauces etc from lots of different vendors to "assemble" hamburgers and fries. They all buy beverages from Coke or Pepsi to complete their meals.
When will the Economic Corridor be ready? All the money is coming from China in loan to be paid back?
I am afraid of corruption and lot of money taken away from Pakistan by over invoicing.
Anon: " When will the Economic Corridor be ready? All the money is coming from China in loan to be paid back? I am afraid of corruption and lot of money taken away from Pakistan by over invoicing"
Read the following:
The first phase of the economic corridor is focused on $45.6 billion worth of energy and infrastructure projects. China's state-owed banks will finance Chinese companies to fund, build and operate $45.6 billion worth of energy and infrastructure projects in Pakistan over the next six years, according to Reuters. Major Chinese companies investing in Pakistan's energy sector will include China's Three Gorges Corp which built the world's biggest hydro power project, and China Power International Development Ltd.
Under the agreement signed by Chinese and Pakistani leaders at a Beijing summit recently, $15.5 billion worth of coal, wind, solar and hydro energy projects will come online by 2017 and add 10,400 megawatts of energy to the national grid. An additional 6,120 megawatts will be added to the national grid at a cost of $18.2 billion by 2021.
http://www.riazhaq.com/2014/12/pak-china-industrial-corridor-to-boost.html
The Chinese money is not a loan to Pakistan govt; it's being borrowed by Chinese companies to invest and build infrastructure. The companies will profit recoup their investment and returns by charging their customers in Pakistan. Pakistan taxpayers will not be on the hook to repay.
Good news, sir!
Regards
I think we are seeing some overall positive trends and the Chiinese investment, if fully followed through on will add a lot to growth. Pakistan has a more equitable society, no billionaires like India but not as much abject poverty either. What is disappointing is that overall economic growth is too slow. With good policies Pakistan should be doing 7% a year for the next 20 years and reaching the level of Malaysia or Turkey. Too much internal violence also that needs to be brought to an end.
I wonder if we will see a modernized political system rather than the current patronage parties. A party like the AKP in Turkey that focuses on economic growth and reflects the new middle class.
The other major issue is population growth. While TFR has dropped it needs to be brought down to 2.2 or so ASAP. Can't imagine a Pakistan with 300 million people in 2050.
It is not known how much Pakistanis will be paying per kilowatt/hr. I am hesitant to think it will be a gravy train.
The Chinese Government is a all weather partner to Pakistan but the banks they own have free rein - they are out to make as much money as possible.
They have to be profitable because these banks have investors and many of them are Chinese shareholders who are paid dividends. This is the experience in many African countries now.
Keep in mind 45 billion is only an MOU. When Pakistanis have to pay for electricity to someone in another country, angers will surface!
‘If ‘One Belt, One Road’ is like a symphony involving and benefiting every country, then construction of the China-Pakistan Economic Corridor is the sweet melody of the symphony’s first movement.’
—Wang Yi, China’s foreign minister
Chinese President Xi Jinping is set to unveil a $46 billion infrastructure spending plan in Pakistan that is a centerpiece of Beijing’s ambitions to open new trade and transport routes across Asia and challenge the U.S. as the dominant regional power.
The plan, known as the China Pakistan Economic Corridor, draws on a newly expansive Chinese foreign policy and pressing economic and security concerns at home for Mr. Xi, who is expected to arrive in Pakistan on Monday. Many details had yet to be announced publicly.
“This is going to be a game-changer for Pakistan,” said Ahsan Iqbal, Pakistan’s planning minister, who said his country could link China with markets in Central Asia and South Asia.
“If we become the bridge between these three engines of growth, we will be able to carve out a large economic bloc of about 3 billion living in this part of the world…nearly half the planet.”
Beijing’s primary concern is that instability in neighboring Pakistan and Afghanistan is spilling into China’s predominantly Muslim northwest, and could grow worse with the withdrawal of U.S. troops from the region.
China sees a historic opportunity to redraw the geopolitical map by succeeding where the U.S. has largely failed, building critical infrastructure that could kick-start economic growth and open new trade routes between China and Central and South Asia. A cornerstone of the project will be to develop the Pakistani port of Gwadar, a warm-water port run by the Chinese on the doorstep of the Middle East.
If realized, the plan would be China’s biggest splurge on economic development in another country to date. It aims over 15 years to create a 2,000-mile economic corridor between Gwadar and northwest China, with roads, rail links and pipelines crossing Pakistan.
The network ultimately will link to other countries as well, potentially creating a regional trading boom, Pakistani and Chinese officials say.
The Pakistan program has been described by Chinese officials as the “flagship project” of a broader policy, “One Belt, One Road,” which seeks to physically connect China to its markets in Asia, Europe and beyond.
“If ‘One Belt, One Road’ is like a symphony involving and benefiting every country, then construction of the China Pakistan Economic Corridor is the sweet melody of the symphony’s first movement,” Wang Yi, China’s foreign minister said during a visit to Pakistan in February.
Andrew Small, author of “The China-Pakistan Axis: Asia’s New Geopolitics,” said China was reacting to the perceived failure of Western aid to make a significant difference to Pakistan. “The Chinese response is that you haven’t done it on a large enough scale,” Mr. Small said. “They’re saying that it is only by doing it on this kind of big-bang scale that you’re going to have the transformative economic effect that Pakistan needs.”
Gwadar, operated by a state-run Chinese firm, is set to begin commercial operations this year, and one of the deals to be signed by the Chinese president while in Pakistan is a final agreement on building a new international airport there, Pakistani officials said.
Mr. Small said propping up Pakistan economically furthers China’s regional competition with India. China sees Pakistan as a strategic counterweight to India. Conversely, the U.S. is backing India, which President Barack Obama visited in January, as a counterweight to China, despite Washington’s long relationship with Islamabad....
http://www.wsj.com/articles/china-to-unveil-billions-of-dollars-in-pakistan-investment-1429214705
Recalling the recent high-level exchanges from both sides, especially the visit of Commerce Secretary Pritzker to Islamabad in March to attend the US-Pakistan Business Opportunities Conference, the two sides expressed satisfaction over the relationship and agreed to intensify engagements in the coming months to further strengthen and deepen bilateral cooperation in all areas.
Finance Minister Dar shared with the Deputy Secretary of State the important achievements in the economic sector that led to the upgrading of Pakistan’s economic outlook in recent months.
The significant decrease in inflation, growing foreign exchange reserves, stable exchange rate and shrinking fiscal deficit, Dar underlined, were the result of sound economic policies pursued by the government of Prime Minister Muhammad Nawaz Sharif.
Noting the significant improvement in the security situation in the country, Deputy Secretary Blinken stressed the need to continue building momentum on expanded trade investment and economic cooperation between Pakistan and the United States. The two sides also agreed that energy remains the vital area with immense potential for enhanced cooperation.
In this context it was emphasized that the forthcoming meeting of the Working Group on Energy should review the entire range of collaboration to assist Pakistan in overcoming its energy deficiency.
Federal Finance Minister Mohammad Ishaq Dar also met President of OPIC Ms Elizabeth Littlefield and her team and discussed OPIC’s programme portfolio and the projects in the pipeline in Pakistan.
Dar apprised Ms Littlefield of the excellent economic recovery that was attracting investors to make new investment or expand operations in Pakistan. He said indicators like foreign exchange reserves, inflation, the discount rate and stock market index had markedly improved in the last 22 months and international agencies had acknowledged the economic recovery. He said the IMF Board has recently cleared the 6th review without any waiver and Moody’s has also upgraded Pakistan’s outlook from stable. He observed that in view of the renewed interest of investors OPIC can increase its presence in Pakistan and finance more projects especially in the energy sector.
Ms Elizabeth Littlefield congratulated the finance minister over the successful review of EFF programme and improvement in rating by Moody’s. She stated that Pakistan had staged a remarkable recovery in a very short span of time and the investors’ interest had evidently increased.
Ms Littlefield informed Finance Minister Dar to look into some of the pending issues of its wind energy projects of 50 MW each. She said that though the size of these projects was not big yet it was clean renewable energy which will improve its energy mix.
The finance minister informed Ms Littlefield that the government of Pakistan was working on the generation of 7,000 MW of electricity from hydel, coal, wind and LNG. He assured the president OPIC of all possible help in removing glitches in its projects which are in the pipeline. Dar apprised her about the import of LNG that will be used to produce electricity and asked OPIC to provide financing to US companies interested in these projects.
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Ishaq Dar who is currently visiting Washington to attend the World Bank and International Monetary Fund (IMF) meetings said that on the economic front far-reaching initiatives have been taken by Pakistan with neighboring countries including enhancing bilateral trade, streamlining transit trade issues, increasing investment cooperation, strengthening connectivity through road and rail links and promoting energy collaboration.
He told the participants of the Carnegie Endowment for International Peace that the government is implementing a four point agenda as per its manifesto and focusing on energy, economy, education and elimination of extremism.
http://www.thenews.com.pk/Todays-News-13-37079-Pakistan-US-agree-to-enhance-economic-cooperation
@Riaz
In recent months, Pakistan’s allegiances have begun to shift as the country strengthens relations with China and Russia, two countries with which Pakistan’s interests increasingly align.
It is difficult to understand Pakistan.
US, a country, that values religious freedom and where many Pakistanis (including Mr Haq) have the choice to become a citizen of, is today the most hated country in Pakistan.
China, a country, that restricts the practice of Islam (Unghur Province) and does not allow religious freedom or allow Pakistanis to migrate to or become a citizen, is today the most loved and an "all weather friend" of Pakistan.
Go figure!
NS: "It is difficult to understand Pakistan"
Is it more difficult understand Pakistan than to understand America?
Remember what Kissinger said?
“America has no permanent friends or enemies, only interests”
Translation: International relations are guided by interests, not love or values.
Following Kissinger or Mao is simply obsolete today.
Ask some Pakistani politicos or, more importantly, any of the Military Brass and they will tell you that China is their "all weather friend". There is almost an infatuation with China monetarily driven perhaps.
If there is any country today, it is China who puts its own interest, economic interest, at the front and center. Pakistanis are under the illusion that Pakistan is more important to China than India. To China, India is and will be a much larger trading partner already there are bilateral exchanges in multiple fields on a level that Pakistan cannot even come close to.
NS " Pakistanis are under the illusion that Pakistan is more important to China than India. To China, India is and will be a much larger trading partner already there are bilateral exchanges in multiple fields on a level that Pakistan cannot even come close to"
It's obvious that you don't understand the strategic nature of China-Pakistan ties.
China's emphasis on "connectivity and maritime sectors" and "China-Pakistan economic corridor project" is mainly driven by their paranoia about the US intentions to "check China's rise" It is intended to establish greater maritime presence at Gwadar, located close to the strategic Strait of Hormuz, and to build land routes (motorways, rail links, pipelines) from the Persian Gulf through Pakistan to Western China. This is China's insurance to continue trade with West Asia and the Middle East in case of hostilities with the United States and its allies in Asia.
Read the following to educate yourself:
http://www.riazhaq.com/2013/05/how-strategic-are-pakistan-china-ties.html
In answer to your claim that volume of trade determines strategic interests, let me explain to you that the US today is so dependent on China that ordinary Americans' daily lives would come to grinding halt, Walmart would go out of business and US F-35 stealth fighters would be grounded without imports from China.
http://www.reuters.com/article/2007/06/28/us-books-madeinchina-idUSN2425061320070628
http://www.reuters.com/article/2014/01/03/us-lockheed-f-idUSBREA020VA20140103
So why is it that the US wants to form alliances with India against China rather than its much bigger trading partner China in the post-Cold War world?
The regional security in South Asia and the adjacent regions to the west and north are on the cusp of a profound transformation. Broadly, there are three vectors involved here.
One, Iran’s integration with the international community as a ‘normal country’, a process that has already begun; two, the historic entente between Russia and China which has consolidated almost immeasurably in the past one year period since the New Cold War tendencies began appearing; and, three, a largely-unnoticed but extremely significant shift in the foreign-policy priorities of Pakistan, a genuinely ‘pivotal’ state in the politics of South Asia, given its highly strategic geographic location in the South Asian region, from where it impacts regional security in Central Asia and West Asia.
The state visit by the Chinese President Xi Jinping to Pakistan on Monday in many ways brings together the three vectors. The visit is, on the face of it, a bilateral event of historic significance to the long-standing ties between the two relationship, which from all accounts can be expected to add much strategic content to the relationship and elevate it to an altogether qualitatively new level.
However, China is also playing the long game insofar as Beijing is actually beginning the implementation of its “One Belt, One Road” initiative, which is a global project in character and scope and all but prefaces China’s inexorable rise on the world stage as a superpower.
It is extraordinary that China is committing such massive investment in excess 40 billion dollars in a single country, undeterred by the perception in the western financial circles that Pakistan is a “failing state” and a revolving door of international terrorism.
In the eighties or nineties, this would have lent itself to interpretation as “India-centric” and as a diabolical move by the Chinese policymakers to strengthen Pakistan’s capacity to challenge India, a common foe. But that is no more the case today. The impulses driving the Chinese policies toward Pakistan today are to be found elsewhere.
First and foremost, Pakistan’s stability has come to be a matter of serious concern from the perspective of China’s internal security needs, which is attributable not only to the spurt in terrorist activities in Xinjiang by groups that are to be traced to the Af-Pak region, but also out of China’s emergent concerns as a stakeholder in regional stability that is an imperative need to advance its regional and global policies (politico-military, economic and cultural) more optimally.
The dramatic shift in the Chinese thinking apropos of the issues of terrorism in South Asia and Beijing’s unmistakable empathy with India’s concerns as a victim of terrorism testify to this. A leading Indian daily brought this home today reporting from Beijing an extraordinary statement attributed to the head of the Chinese foreign ministry think-tank Institute of South and Southeast Asian and Oceanic Studies, Hu Shisheng that China finds itself “awkward diplomatically” to have taken a “neutral stand” on the terrorist attack on Mumbai in November 2011.
Hu said, “India’s concerns over terrorism will be addressed in a more constructive way. China also suffered due to terrorism.” He said China has suffered from U.S. double standards on terrorism and should not behave in a similar fashion.
---
Without doubt, Pakistan (along with Central Asia and Iran) becomes a gateway for China to the world market and it is crucial for Beijing that Washington’s ability to block this gateway is “zero”. Pakistan is actually the single most critical gateway for China in the emergent paradigm. Arguably, that alone could explain the extraordinary extent to which China is making the stabilization of Pakistan a real-time dimension to its own national policies of development.
http://atimes.com/2015/04/pakistan-china-iran-and-the-remaking-of-regional-security/
China signed 51 agreements with Pakistan in a ceremony in Islamabad Monday that could ultimately lead to $48 billion in infrastructure projects.
For now, $28 billion in spending is planned. China President Xi Jinping made his first state visit to Pakistan to unveil the development program known as the China-Pakistan Economic Corridor; it will include railway upgrades and power plant construction. China and Pakistan share a “mutual antagonism toward India, but their economic ties had lagged behind,” The Wall Street Journal reports.
Xi and Pakistani Prime Minister Nawaz Sharif highlighted five projects, including a $1.4 billion dam that will deliver 720 megawatts of electricity, and a $1.5 billion solar power park that will add 900 megawatts of power to the grid.----------
Renaissance Capital analysts Daniel Salter, Charles Robertson, Seki Mutukwa and Omair Ansari write that Pakistan is “an undervalued reform story” and add:
“The government is delivering on privatisations with the Habib Bank stake sale, and initial shipments of LNG [liquefied natural gas] have started to arrive (an important first step in rebalancing the country’s energy mix). On the negative side, the government again delayed the anticipated gas tariff hike until July. … If there has been one theme that has worked well in EM of late it is reform. Pakistan ticks many of the boxes here, yet trades on a far lower valuation (8.4x 12-month forward P/E) than other emerging markets and frontier market reform stories such as Vietnam (13.5x), India (16.8x), Philippines (20.0x), Bangladesh (21.4x) or Sri Lanka (13.4x). We believe Pakistan should be of interest not only to frontier funds, but also to mainstream emerging market investors able to look outside of their benchmark index. We like cement, consumer and, to an extent, banks top-down. Our top picks from our bottom-up coverage are: Lucky Cement (LUCK.Pakistan), DG Khan Cement (DGKC.Pakistan) and Packages (PKGS. Pakistan).”
In February and March, the MSCI Pakistan Index fell by over 20% in dollar terms, and the 13% drop in March was the largest in five years, Renaissance Capital reports. But the MSCI Pakistan Index started to rebound this month, up roughly 9%. So far in April, the iShares MSCI Frontier 100 ETF (FM) is up 4%, the WisdomTree India Earnings Fund (EPI) is down 1.5%, and the iShares MSCI India ETF (INDA) has tumbled 2.6%.
http://blogs.barrons.com/emergingmarketsdaily/2015/04/21/how-to-play-pakistan-as-china-invests-billions/
The United States and Pakistan on Wednesday announced to facilitate and accelerate private investment in clean energy projects in Pakistan.
Under this initiative, the US government will work with Pakistan to advance reforms that will allow the US, Pakistani, and international private sector developers and investors to add at least 3,000 megawatts of clean power to Pakistan’s national grid within the next 3-5 years.
“This clean energy initiative will help address Pakistan’s energy challenges,” said US State Department’s Special Envoy for Energy Amos Hochstein during the second US-Pakistan Energy Working Group under the broader US-Pakistan Strategic Dialogue framework. “It is a partnership to help alleviate Pakistan’s energy challenges based on a set of goals shared by Pakistan, the United States, multilateral banks, donors, and the private sector.”
Special Envoy Hochstein, Deputy Chief of Mission Williams and a delegation from Washington met Shahid Khaqan Abbasi, Khawaja Asif and a range of Pakistani government officials to discuss measures to increase cooperation in the clean energy sector. Energy demand in Pakistan is expected to double by 2020. Addressing this challenge will require significant action by the government to institute reforms that create space for private sector support, as well as the support of many countries and institutions.
To advance the goals of this common initiative, the US and Pakistani officials discussed steps to: strengthen regulatory institutions and develop market-based rules to attract private investment; develop an investment strategy for expanding the role of clean energy systems; expand transmission capacity for clean energy projects; and mobilise loans, grants, technical assistance and guarantees needed to manage and reduce private sector risks and leverage private capital into clean power projects.
Helping the energy sector become more market-based is one of the best alternatives to ending the current crisis and ensuring that future demand can be met. Clean power investments in hydroelectric, wind, solar, biomass, and natural gas, combined with an expanded effort to improve the efficiency at all parts of the energy sector, will reduce Pakistan’s dependence on foreign fuel sources, help address climate change, improve Pakistan’s energy security, and promote innovation and growth.
This initiative marks a new phase of US energy sector assistance to Pakistan, which since 2010 has contributed over 1,500 megawatts of electricity to Pakistan’s national grid by refurbishing existing hydropower and thermal generation facilities, completing hydropower projects, and improving the operation and efficiency of Pakistan’s transmission and distribution systems. inp
ISLAMABAD: The United States and Pakistan on Wednesday announced to facilitate and accelerate private investment in clean energy projects in Pakistan.
Under this initiative, the US government will work with Pakistan to advance reforms that will allow the US, Pakistani, and international private sector developers and investors to add at least 3,000 megawatts of clean power to Pakistan’s national grid within the next 3-5 years.
“This clean energy initiative will help address Pakistan’s energy challenges,” said US State Department’s Special Envoy for Energy Amos Hochstein during the second US-Pakistan Energy Working Group under the broader US-Pakistan Strategic Dialogue framework. “It is a partnership to help alleviate Pakistan’s energy challenges based on a set of goals shared by Pakistan, the United States, multilateral banks, donors, and the private sector.”
http://www.dailytimes.com.pk/business/30-Apr-2015/us-to-help-pakistan-get-3-000mw
LAHORE: The Pakistani society is quickly adapting to technological change. Be it the spectrum auction that marked the arrival of 3G, 4G services or wireless appliances making their way into the mainstream, Pakistanis are slowly coming of age. Similarly, awareness among people of electronic appliances has also increased the demand of these products.
This trend has been taken into account by businesses as an opportunity to invest in the Pakistani market and derive high rewards.
Haier-Ruba group is a company that has shown an exponential growth rate since its inception in the country. The group deals in many businesses ranging from polyester yarn, electronic appliances, power generation, real estate and automobile business.
Recently, its primary achievement can be attributed to the successful development of the Haier-Ruba Economic Zone (HREZ) with the support of Chinese authorities.
The HREZ is located near Lahore and is spread at 300 acres, but it is looking to expand especially after the China-Pakistan Economic Corridor (CPEC) breakthrough.
Haier-Ruba President and CEO Faisal Shah Afridi said the company is looking to buy more land, increase investments and target a wider market .
“We need more land around the motorway and are willing to buy 3,000-5,000 acres of land at market price,” Afridi said.
The HREZ is a part of the CPEC and Afridi expressed hope that this will prove to be a gateway for other Chinese industrialists to venture into Pakistan.
Afridi said that Haier-Ruba also plans to establish regional zones in Pakistan.
“Currently, under HREZ, we are have undertaken 11 projects, the annual turnover of these is $800 million,” said Afridi. “We are planning to invest another $1.5 billion in the next five years for our future ventures.”
The background
Ruba Group’s partnership with Haier dates back to 2001 when a company was established through a joint venture.
After the initial success and rising demand of electronic appliances, Haier Pakistan was set up in 2006, to further diversify its product line with another investment of $0.5 million kicking in later. Currently, the company boasts of annual turnover of Rs46 billion.
http://tribune.com.pk/story/883770/joint-ventures-haier-ruba-plans-expansion-investment-of-1-5b/
#China will establish special economic zone in #Pakistan via New Europe. #CPEC #Gwadar http://neurope.eu/article/china-will-establish-special-economic-zone-in-pakistan/ …
China Overseas Port Holding, will establish a special economic zone of over 152 hectares at the deep sea port of Gwadar, Pakistan. The government of Baluchistan –Pakistan’s poorest- will later on provide the rest of the land to the Chinese corporation, which will own for more than 40 years a tax-free 923-hectare land.
The Pakistani authorities gave the permission to the Chinese state-owned company to lease the land for 43 years. According to China Daily, Gwadar is considered to be at strategic location as it stands between South and Central Asia and the oil-rich Middle East. The Chinese state company will be in full charge of the Gwadar zone.
The agreement between the two sides is part of the China-Pakistan Economic Corridor, which is a massive investment project worth $46 billion aiming to connect western China to the Arabian Sea.
The firm promised to create a trade-oriented powerhouse, including the construction of an export zone and an international airport. “China has asked us to provide land for building an export processing zone and a modern international airport in Gwadar,” Baluchistan chief minister Abdul Malik Baloch told AFP. China will also build another sea port and a road network to link the trade zone to the airport.
Wang Shida, a trade expert who works at the Chinese Institute of Contemporary Relations said that the new agreement between Pakistani authorities and China is a win-win deal. “The Pakistani economy will gain from the large number of processing firms that will move to the Gwadar port. It will also boost export from Pakistan. As for China, it will gain from cheaper oil imports from the Middle East and opportunities for Chinese companies will go global,” he told China Daily.
AFP reported that the economic zone will be guarded by a special security force of between 10,000 and 25,000 men. Moreover, the French news agency underlined that the Pakistani province has plenty of resources including oil, gas and minerals.
Some people in Baluchistan, already criticised their authorities of doing little to raise the living standards for the locals, giving way too much benefits to the Chinese firm without ensuring the local interests.
#China to support #Pakistan to ensure security of new economic zone, says Chinese general. #CPEC http://www.scmp.com/news/china/diplomacy-defence/article/1878647/china-support-pakistan-ensure-security-new-economic?utm_source=&utm_medium=&utm_campaign=SCMPSocialNewsfeed … via @SCMP_News
Beijing will back Pakistan to ensure the security of a new economic corridor granting access to the port of Gwadar that aims to create direct links between China and the Arabian Sea, a top general has pledged.
Central Military Commission vice-chairman Fan Changlong told Pakistan's army head Raheel Sharif on Thursday that Beijing looked forward to close cooperation "to ensure proper management and security of CPEC", according to a Pakistani military statement.
The China-Pakistan Economic Corridor is an ambitious US$46 billion project giving Beijing greater access to the Middle East, Africa and Europe through Pakistan, via a highway to Gwadar port on the Arabian Sea.
Fan's visit, the first by a Chinese general of his seniority in more than a decade, came two days after Pakistan handed hundreds of hectares of land over to China for the development of a free-trade zone in Gwadar as part of the project.
The development is part of China's ambition to expand its trade and transport footprint across Central and South Asia while countering American and Indian influence. India has expressed wariness about the project in the past, though analysts recently said concerns would arise only if there were "defence-related matters".
Fan, who headed a high-level military delegation, on Thursday met Sharif at the Pakistani army headquarters in Rawalpindi to discuss "matters of mutual interest, regional security, steps for regional stability and enhanced bilateral defence collaboration", the statement said.
Fan said China "deeply appreciates" Pakistan's efforts to eliminate militancy, particularly by the East Turkestan Islamic Movement, which Beijing says is active in the Xinjiang region, which borders Pakistan.
Xinjiang - the homeland of China's 10 million Uygurs, a mostly Muslim ethnic minority - is sporadically hit by deadly violence. Beijing has claimed that militants from the movement are hiding in Pakistan, a claim that has been supported by local security sources.
"China values the efforts of Pakistan Army in fighting ETIM," Fan said, adding that China and Pakistan were "best iron brothers, good friends and strategic partners".
Fan also met Prime Minister Nawaz Sharif in Islamabad on Thursday, with Sharif lauding Islamabad's friendship with Beijing as a "cornerstone" of its foreign policy.
The government of Baluchistan province - Pakistan's poorest - handed over about 280 hectares of a 923-hectare swathe of tax-exempt land in Gwadar on Wednesday. Beijing will develop that land under a 43-year lease.
The rest of the land would be handed over under the agreement with the public China Overseas Port Holding Company "soon", senior Pakistani government officials said.
#China entrepreneurs explore joint ventures in #Pakistan #CPEC http://www.pakistantoday.com.pk/?p=469870 via @ePakistanToday
A delegation of Chinese entrepreneurs visited the Islamabad Chamber of Commerce and Industry to explore business partnerships and joint ventures in Pakistan for various products including construction machinery, heavy duty vehicles, consumer electronics, hardware and glass wares.
The delegation was representing some big companies of China including FOXCONN Technology Group, China JiangSu NanTong LiuJjian Construction (CAMBODIA) Group, Wealthpower Technology Ltd, and Suzhou Super Glass Optical Technology Co Ltd. FOXCONN Technology Group has 1.2 million employees all over the world out of which 8 million were working in China.
The delegation informed that FOXCONN Technology Group was the most dependable partner for joint-design, joint-development, manufacturing, assembly and after-sales services to global computer, communication and consumer-electronics (“3C”) leaders and was looking for partners in Pakistan for manufacturing and distribution of these products. Similarly, CAMBODIA Construction Group produced big cranes, heavy duty construction machinery, trucks and were interested to start joint ventures in Pakistan.
The delegation members said that after the finalisation of China-Pakistan Economic Corridor project between the two countries, many Chinese investors were taking increased interest in Pakistan for investment and they have come on an exploratory visit to find out opportunities of investment and joint ventures in Pakistan. They also invited the ICCI delegation to visit China to find out business matchmakings.
Speaking at the occasion, LCCI President Atif Ikram Sheikh and Vice President Sheikh Abdul Waheed briefed the Chinese delegation about lucrative investment opportunities in Pakistan’s IT, construction, infrastructure development and other sectors. They said Pakistan was a big market of over 180 million people with strong demand for consumers’ electronics including computers, laptops, mobile phones, printers, copiers and digital cameras etc, and the Chinese investors should set up manufacturing plants in Pakistan to exploit these opportunities.
They said the government had started many construction projects in various cities while the CPEC would usher in more projects in energy and infrastructure development. They said Chinese investors should make Pakistan a production hub to meet domestic needs and export products to other regions. They assured that the ICCI would extend all possible facilitation to Chinese investors for investment and joint ventures in Pakistan.
#Pakistan is "the only all-weather strategic partner" of #China - Global Times. #CPEC
http://www.globaltimes.cn/content/960904.shtml#.VoKzAasXjJs.twitter …
In April when President Xi Jinping visited Pakistan, China and Pakistan elevated the bilateral relations to "all-weather strategic cooperation partners." China has established partnerships with a lot of countries in the world, but Pakistan is the only one that is called an "all-weather strategic cooperation partner."
For countries with different social systems and ideologies that want to collaborate with each other, the China-Pakistan relationship has become a model to follow. This type of relationship is not based on common values and systems, but on same or similar strategic and security interests. Today common security concerns still exist, and some new concerns like global terrorism and maritime security have arisen for both sides in recent years.
Since the beginning of the 21st century, the basis of China-Pakistan cooperation has expanded. The "One Belt, One Road" initiative and China-Pakistan Economic Corridor has enlarged bilateral strategic and cooperative partnership to a more comprehensive framework.
Before, the basis of the all-weather partnership mainly included political, strategic and security cooperation, now the closer economic ties have become a part of this basis, which makes two countries form a "community of shared destiny." The two sides not only have common economic interest and common security concerns, but also share the dream of national peace, stability, and prosperity. "Shared destiny" is the solid foundation for our cooperation in international affairs.
China-Pakistan international cooperation has some key features as follows: First, China and Pakistan respect principles, value friendship, and "share weal and woe." When dealing with international affairs, both sides take the Five Principles of Peaceful Coexistence as the basic principle; when facing international affairs, both sides advocate justice and fairness, protect the common interests of developing countries, and have the courage to speak up.
In addition, China-Pakistan cooperation is always based on close communication and coordination, deep understanding of the other side's situation and interest, and full consideration of the other side's feeling. Pakistan always gives China full support on the Taiwan, Tibet, Xinjiang, and South China Sea issues. China is also a strong supporter of the independence, sovereignty, territorial integrity, and national dignity of Pakistan.
In 1972, the People's Republic of China used its veto power for the first time to support Pakistan at the UN Security Council by refusing to admit Bangladesh, the former East Pakistan, to the UN. After 1989, every time when China was blamed by the US and other Western countries at the UN Commission on Human Rights, Pakistan was always the first one to stand up and speak for China.
China and Pakistan conform to trends of the times, expand scope of cooperation, and jointly resolve challenges. After the Cold War, especially in the 21st century, the world has seen a trend toward peace, development, and cooperation.
Apart from traditional security issues, more and more non-traditional challenges arise. As a result, China-Pakistan cooperation has expanded from political and security fields to economy and trade, climate change, food and energy security. China takes the interests of Pakistan and other developing countries into careful consideration when it negotiates with Western countries.
#China #Pakistan Economic Corridor: 27 sites identified for Special Economic Zones (SEZs)| Business Recorder. #CPEC
http://www.brecorder.com/market-data/stocks-a-bonds/0:/1259793:economic-corridor-27-sites-identified-for-sezs/ …
The federal government has identified as many as 27 sites in provinces, Islamabad Capital Territory (ICT) and Gilgit-Baltistan for setting up of Special Economic Zones (SEZs) under the China Pakistan Economic Corridor (CPEC), it is learnt. Sources in the Finance Division and the Planning Commission told Business Recorder that provincial governments have also been requested to allocate land for sites of SEZs.
The federal government has identified seven sites in Balochistan for the establishment of SEZs. The sites identified in Balochistan for industrial estates are as follows: (i) Gwadar with 3,000 acres for mines, minerals, food processing, agriculture and livestock, (ii) industrial estate at Lasbela (1,290 acres, iron steel, hardware, paper industry, pharmaceuticals), (iii) industrial and trading estate at Turbat (1,000 acres, manufacturing), (iv) Dera Murad Jamali with 50 acres, (v) Winder Industrial and Trading Estate, (vi) mini industrial estate Khuzdar (50 acres) and (vii) Bolan Industrial Estate (1,000 acres). The government has identified three sites in Sindh to set up Special Economic Zones, which include Chinese industrial zone near Karachi (2,000 acres, Exclusive Chinese Industrial Estate), Textile City at Port Qasim, Karachi with (1,250 acres) and Marble City at Karachi with (300 acres).
As per official documents, eight sites in Khyber Pakhtunkhawa province have also been identified for special economic zones. They include, marble and granite based industrial estate at Mansehra (80 acres, mining), industrial estate Nowshera (1000 acres, manufacturing), expansion of Industrial Estate Hatter (424 acres, manufacturing), industrial estate at Chitral (80 acres, food processing) as well as Industrial Estate Ghazi (90 acres, manufacturing) and industrial estate Dera Ismail Khan (188 acres, manufacturing).
Industrial estate at border of Kohat and Karak and industrial and economic zone at Bannu (400 acre) in KP have also been identified as sites for SEZ under CPEC. The government has identified seven sites for special industrial zones in Punjab. These included Multan Industrial Estate phase-II (80 acres), Rahim Yar Khan Industrial Estate (450 acres), Bhalwal Industrial Estate (400 acres), DG Khan Industrial Estate (3815 acres), Mianwali Industrial Estate (600 acres), Rawalpindi Industrial Estate (200 acres) and Pind Dadan Khan Industrial City (10000 acres) for agri, textile, food processing, livestock, manufacturing & energy).
Additionally, the existing under-development sites would also be included in SEZs for the CPEC. One site for special economic zones in Gilgit-Baltistan Moqpondass (2,000 kanal, mining & food processing) and one for Islamabad Capital Territory has also been identified under the CPEC.
#CPEC for #Punjab or #Pakistan: Myth versus reality. #PTI #PMLN #PPP http://tribune.com.pk/story/1029155/cpec-for-punjab-or-pakistan-myth-and-reality/ …
The primary concern of the smaller provinces as reflected in the resolution of the K-P assembly that the western alignment is not on the priority list of the centre. This claim is wildly being repeated without any evidence to back it up. In fact, the work is underway on the western and eastern routes simultaneously. The Frontier Works Organisation is working to complete the missing 400km link between Gwadar and Surab passing through Quetta, Zhob, Dera Ismail Khan and Peshawar.
In order to make Gwadar operational in the shortest possible time, the eastern alignment linking Karakoram Highway to existing motorways is the best bet. Given high traffic volume, thriving industries and security on the eastern route, it is much more feasible to kick-start the project. With work in progress on the central, western and eastern alignments simultaneously – linking Gwadar, Pakistan to Kashgar, China within 15 years under the CPEC – there is no reason to make the whole project controversial by mere speculations.
Is motorway prerequisite for the corridor?
Some in the provinces are demanding Zhob-Mughal Kot (N-50) or Qila Saifullah-Wagum (N-70) on the western route be constructed six lanes on the pattern of Karachi-Lahore Motorway. It makes no sense because of negligible traffic at the moment on the route. Of course, this route would have to be expanded with the passage of time as the traffic volume increases with the economic activity along the corridor. Without going into the technical nitty-gritty, it suffices to say that the same size lane is being constructed across the border on Chinese side. So, motorway is not needed at this time on the western route.
Economic zones: K-P on top
Another major concern of the smaller provinces is the alleged shifting of the industrial parks along the original western route to the eastern route thus denying the dividends of the project to the people of K-P and Balochistan. Some fact checking reveals that Board of Investment (BoI) has identified 27 economic zones out of which eight fall in K-P. The committee of BoI tasked to identify the potential sites for economic zones has worked in consultation with the provinces. However, it’s subject to approval by the joint working groups of China and Pakistan.
CPEC energy goes into national grid
Some have questioned the criteria for the allocation of the energy projects to the provinces. As a matter of fact, the energy generated by the projects under CPEC would be added to the national grid for nationwide distribution regardless of its installation point. So, the location of the power plant does not really matter. Most of the energy projects are located either close to the source or the load centre.
Contrary to all the noise, benefits to the largest province Balochistan are also enormous. Once developed, Gwadar would serve as a game-changer not only for the country but also for the entire region. Preliminarily, seven industrial parks have been marked in the province, making it the second highest number after K-P. It would open new jobs for the locals, uplifting them from extreme destitution.
Who gets the lion’s share?
Here arises a question: who will benefit the most from the CPEC once executed as envisioned by its authors? It will benefit the whole of Pakistan given the presence of various projects under CPEC spread across the length and breadth of the country. All the provinces stand to benefit from the project as all the provincial capitals – including Lahore, Karachi, Peshawar and Quetta – would be the major nodes of the project.
#China's #CPEC investment in #Pakistan, largest ever in a foreign country, could grow even larger in 2016 and beyond
http://www.eurasiareview.com/17012016-china-pakistan-relations-forecast-2016/#.VpxRt1RZ6YU.twitter …
It appears that the recently announced China-Pakistan Economic Corridor (CPEC) will remain at the centre of Sino-Pakistan ties during 2016, and even beyond. The CPEC, signed in 2013, got a boost in April 2015 during Chinese President Xi Jinping’s Pakistan visit, where he announced the allocation of US$46 billion for its completion. This is the largest investment China has committed to another country, and the largest Pakistan has ever received.
According to some informed quarters, China may add to this volume if the implementation of the CPEC moves forward smoothly on the Pakistani side. The corridor intends to connect China’s western region with Pakistan’s Gwadar Port via a network of roads, rail and fiber optics.
The CPEC is a part of Xi’s grand strategic concept of “One Belt One Road” (OBOR) to connect with over 60 countries and regions. Under OBOR, besides CPEC, China has initiated other projects such as the Bangladesh, China, India, and Myanmar (BCIM) Corridor; Silk Route in Central Asia; and the 21st Century Maritime Silk Route. But the CPEC is regarded as the ‘flagship’ project among them due to various reasons.
It is the only corridor that involves just one other country, Pakistan, and with whom China has a ‘trust’-based relationship. Other corridors consist of different countries with varying degrees of relations with China. Moreover, the CPEC can provide China an access to the Indian Ocean by reducing both time and distance. This route is not only shorter in distance but avoids the Malacca Strait and the vast Indian Ocean dominated by rival Indian and US navies.
For Pakistan, the CPEC can bring large-scale investments in the energy sector, infrastructure building, and industry, giving a boost to its moribund economy. Once Pakistan is prepared, China may also move some of its industry and bring Pakistan into its chain of production. Above all, the CPEC will increase China’s stakes in Pakistan which will leverage Islamabad in regional affairs. It is this backdrop that demonstrates the centrality of the CPEC in future Sino-Pak relations.
From the construction point of view, the corridor has been divided into short, mid and long-term projects. In 2016, progress or completion of some projects for infrastructure development and energy are expected. Actually, it is the top priority of the incumbent government to finish some projects at the earliest to show its performance to the public.
According to the understanding that exists between the two countries, Chinese state companies will build several CPEC-related projects. 2016 will thus witness a number of Chinese engineers, technicians and workers coming to Pakistan. There are already over 120 companies and 1,20,00 technicians engaged in different projects in Pakistan. This increased number of Chinese nationals in Pakistan will add to two-way exchanges. At the same time, however, it will also raise the question of their safety and security. Pakistan has established a special force of 1,20,00 men under the army to provide security to Chinese expatriates and guard their construction work. But given the law and order situation in the country, these measures appear insufficient. Lack of sufficient security may restrict the free moment of Chinese workers and tourists.
GFIVE a mobile communication brand of GFIVE Group is the first-ever mobile manufacturing company in Pakistan. GFive is listed in top 10 in terms of global sales volume, has continued to hold the title of the fastest developing communication company. With established strong sales network based on the 95 global operations centers (including Pakistan), G’FIVE expands its business in full communication industry, dedicated in providing smart phone service to more consumers globally.
Since 2014 GFIVE team made efforts to establish world leading standard manufacturing plant in Pakistan. Today by the Grace of ALLAH (ALL MIGHTY) GFIVE Mobile (Pvt) Limited is the Pioneer in Pakistan who assembled and produced GFIVE Smart Phone & Bar Phone handsets first time in Pakistan with labeling “Made in Pakistan”.
By installing State-of-the- Art Assembling Plant and Equipment approved by Pakistan Telecommunication Authority (PTA) with the capacity to produce over half million handset per month. Gfive started its trail production successfully in January 2016, and produced over 87,000 handset of Smart and Bar Phones which completely meets the high quality standards.
With the aim, GFive Mobile (Private) Limited started their first ever state of the art Mobile production line & assembling unit in Pakistan for feature & Smart Phone segments to serve our valuable Pakistani customers nation-wide back up with strong after sale services.
GFive management always primarily focus on introducing reliable products to their customers at a very economical prices with strong after sale services & support nation-wide, We always believe, Pakistan is a highly potential market for production & assembling mobile handsets after the introduction of 3G/4G and upcoming 5G services together with a significant development towards digitized Pakistan and this is the right time to serve our Pakistani people, who feel proud to buy first ever “Made in Pakistan” handset.
GFive Mobile (Private) Limited has kept very strong network coverage, which cover all major & connecting cities of Pakistan through our strong distributional channel include whole-seller, dealer/retailers, high profile corporate sector such as Hypermarkets, Mobile Operators, Online Stores and Banks, etc. In addition of this, we also kept presence of our own outlets, regional offices, direct sales team and Customer care Centres.
We wish and hope that Government will also lead the initiative through practical steps in this direction and encourage companies to setup such type of production & assembling units in Pakistan and put Pakistan on the world map where handsets are assembled and manufactured in Pakistan and GFive Mobile (Private) Limited is a pioneer and of-course trend setter in Pakistan telecom industry and being served Pakistan 100% by Made-In Pakistan” Handset.
We are proud of what we’ve achieved but this journey continues and we want to be better than we have ever been before as we strongly believe that we are bigger than ‘a handset provider’.
http://phoneworld.com.pk/gfive-as-first-ever-mobile-manufacturing-company-in-pakistan/
From United Nations Industrial Development Organization (UNIDO):
Pakistan Manufacturing Value Added (MVA):
MVA per capita at constant 2005 prices increased from US$135.03 in 2005 to $143.84 in 2014
MVA as percentage of GDP at constant 2005 prices in US$ decreased from 18.05% in 2005 to 17.41% in 2014
http://www.unido.org/Data1/IndStatBrief/A_Industrial_Performance_MVA_GDP.cfm?Country=PAK
India Manufacturing Value Added (MVA):
MVA per capita at constant 2005 prices increased from US$155.73 in 2005 to $168.42 in 2014
MVA as percentage of GDP at constant 2005 prices in US$ decreased from 15.10% in 2005 to 13.85% in 2014
http://www.unido.org/Data1/IndStatBrief/A_Industrial_Performance_MVA_GDP.cfm?Country=IND
China tops the list of world's 10 largest industrial producers. It is followed by the US, Japan, Germany and South Korea, according to United Nations Industrial Organization (UNIDO).
India ranks 6th in the world in terms of total manufacturing output in 2013, up from 9th place in 2008,
http://economictimes.indiatimes.com/news/economy/indicators/india-jumps-to-sixth-place-in-top-10-manufacturers-list-report/articleshow/51663535.cms
India's manufacturing value added (MVA) per capita of 161.7 in 2013 is among the lowest in the world. It's up from 131.9 in 2008.
In fact India's 2008 MVA per capita of 131.9 was lower than Pakistan's 141.1. Since 2008, Pakistan's MVA per capita has slipped to 139.1 in 2013 while India's has increased to 161.7 in this period.
Bangladesh's MVA per capita has jumped from 82.2 in 2008 to 118.3 in 2013.
On UNIDO’s industrial competitiveness index, most industrialized countries lost ground in the last three years. Among the five most competitive are four high-income countries (Germany, Japan, the Republic of Korea and the United States), along with China ranking fifth. The four are among the world’s most industrialized countries and, with China, account for 59 percent of world MVA.
https://www.unido.org/fileadmin/user_media_upgrade/Resources/Publications/EBOOK_IDR2016_FULLREPORT.pdf
It's official: #GE Appliances now belongs to #China's #Haier http://cnet.co/1PeSkl1 via @CNET
http://www.cnet.com/news/its-official-ge-appliances-belongs-to-haier/
After six months and $5.6 billion, the appliance division of General Electric officially belongs to Chinese manufacturer Haier, the companies said at a press conference Monday.
Haier's purchase of GE's Louisville, Kentucky-based appliance division is an assertive attempt to build a stronger presence in the US appliance market. Haier, which is based in Qingdao, China, is the world's leading appliance manufacturer, but the company only holds 1.1 percent of the US appliance market (US customers might be familiar with the brand's refrigerators, air conditioners or rolling R2D2 mini-fridge). Meanwhile, GE Appliances claims nearly 14 percent of the same market.
For many US shoppers, the GE brand is synonymous with household appliances like refrigerators and ovens. But the multibillion-dollar sale to Haier gives GE the chance to rid itself of those consumer-facing appliances to focus on more lucrative industrial manufacturing (think jet engines, industrial power systems and locomotives).
In the short term, people won't see much of a change as a result of the acquisition, said Chip Blankenship, president and CEO of GE Appliances. The GE name will still appear on appliances, and customers will still receive the same support.
"We'd like (customers) to be confident that we stand behind our products as we always have," Blankenship said.
GE Appliances stated in a news release the sale will generate an after-tax gain of approximately $0.20 per share, but the company expects restructuring to offset those gains. When asked about potential layoffs of GE Appliances employees, Blankenship said, "we don't anticipate any change."
There's been talk of GE selling its appliance division for at least eight years. Sweden-based Electrolux came close to buying GE Appliances for $3.3 billion in 2014, but the US Department of Justice objected to the deal last year on the grounds that a merger of two leading manufacturers of cooktops, ranges and wall ovens would reduce competition and options for consumers. GE quickly rebounded with the announcement that it would sell to Haier in January.
Haier was initially set to buy GE Appliances for $5.4 billion, but the price increased by about $200 million because of "increased working capital in the business," according to GE. GE Appliances currently has 12,000 employees that produce appliances out of Louisville and facilities in Indiana, Alabama, Georgia and Tennessee.
#Turkey's Arcelik to acquire #Pakistan #Karachi-based appliance maker Dawlance for $258 millionNikkei Asian Review
http://asia.nikkei.com/Business/Companies/Turkey-s-Arcelik-to-acquire-Pakistani-appliance-maker
Earlier this year, Arcelik was outbid for General Electric's appliance business by Chinese heavyweight Haier. Later, another Chinese company, Midea Group, beat Arcelik in the race for Toshiba's home appliance business.
On Thursday, Arcelik announced that it has signed an agreement to acquire Dawlance, Pakistan's market-leading home appliance company. The $258 million deal is expected to receive regulatory approval and close by the end of the year.
The acquisition will provide Arcelik a foothold in the world's sixth-most populous country, which is expected to grow around 5% a year for the next three years.
It is also expected to give Arcelik's Asia-Pacific growth strategy another boost, following the company's recent $100 million investment in a Thai refrigerator plant.
Privately owned Dawlance was founded in 1980 in Karachi, where it has two manufacturing sites. It has another site in Hyderabad. Its workforce, which is also spread through its distribution, sales and service networks, is 3,000 strong.
It is Pakistan's leading refrigerator and microwave brand, No. 2 air conditioners and No. 3 in the laundry category. Dawlance in 2015 reported $221 million in revenue and $45 million in EBITDA (earnings before interest, taxes, depreciation and amortization).
"Arcelik's recent investments in Thailand and Pakistan [are expected to provide] a strong platform for growth in Southeast Asia," CEO Hakan Bulgurlu said, adding that European markets have reached a "saturation point for white goods" and are beset by "long-term economic malaise."
He continued: "Economic growth in Pakistan is leading to more disposable income and purchasing power whilst technological advances are making white goods more efficient and more affordable. Pakistan's rapid urbanization and social development is seeing the emergence of more single-family dwellings, creating more demand for consumer appliances."
The CEO also vowed to strengthen Dawlance's product offerings and brand position.
Arcelik is owned by Koc Holding, Turkey's largest industrial conglomerate, which is also active in energy, finance, consumer durables and auto manufacturing.
Arcelik had $5.2 billion in turnover last year. It leads Turkey's white goods and consumer electronics markets. With global brands like Beko and Grundig, Arcelik products are sold in 133 countries. Before the Dawlance deal, Arcelik had 10 brands under its umbrella and had become known for its aggressive acquisition strategy across Europe, Africa and Asia.
Arcelik is Europe's third largest white goods producer.
With its $324 million acquisition of South Africa's Defy Appliances in 2011, it became Africa's largest white goods maker.
Arcelik's total workforce after the Dawlance deal will reach to 30,000 across 18 manufacturing facilities, including those in Turkey, Romania, Russia, China, South Africa and Thailand.
#Pakistan to build country’s first Naphtha Cracker Complex. #petrochemicals #manufacturing #materials #CPEC
http://tribune.com.pk/story/1302875/initiative-pakistan-build-countrys-first-naphtha-cracker-complex/
In an unprecedented development to boost the economy, Pakistan is set to build the country’s first ever Naphtha Cracker Complex (NCC), a state-of-the-art “grand infrastructure” to change petrochemical raw substances into value-added products ranging from construction, home décor, appliances, furniture, medical care, paints, cleaning stuff and top of the line military gadgets.
The absence of a naphtha cracker complex means Pakistan has to buy all petrochemical feedstock from international market that take heavy toll on import bill and prices of long range of items.
India has nine naphtha cracker complexes providing it tremendous mileage in industrial and economic progress.
The creation of this complex will revolutionise the industrial landscape.
The game-changing development came after an 18-member delegation of Pakistan Chemical Manufacturing Association (PCMA) met recently with Federal Minister for Planning, Development and Reforms in his office, Islamabad where NCC was announced to be built to catalyse the economic progress.
Acknowledging NCC as a strategic need, Minister suggested PCMA to prepare feasibility report and viable business plan in consultation with market experts and technologists to help ministry to make it a reality.
NCC will have an impactful role in all industrial zones to be placed along the route of China-Pakistan Economic Corridor (CPEC), it was said at the meeting.
Chinese investors are contemplating to build a chemical and automobile city in Gwadar under the umbrella of #CPEC
https://tribune.com.pk/story/1341071/gwadar-china-build-automobile-city/
Chinese investors are contemplating to build a chemical and automobile city in Gwadar under the umbrella of the China-Pakistan Economic Corridor (CPEC).
According to a private news channel, sources linked to CPEC project stated that the Chinese authorities have already initiated paperwork on said projects, which reflects their seriousness.
Analysts have advised owners of local automobile industry to start joint ventures with Chinese as this would help in transfer of technology as well as boost the local industry. Earlier, China announced to set up a steel factory under CPEC apart from various other projects.
China is developing the Gwadar port as a strategic and commercial hub under its ‘One-Belt One-Road’ initiative that promises shared regional prosperity. CPEC is one of many arteries of the ‘One-Belt One-Road’
In 2013, Pakistan handed over the Gwadar port to the Chinese company by annulling a deal with a Singapore company that could not develop the port after taking over in 2007. The ECC further approved amendments in the Gwadar Port Concession Agreement for operating and developing the Gwadar port and free zone.
On October 31, hundreds of Chinese trucks loaded with goods rolled into the Sost dry port in Gilgit-Baltistan as a multibillion-dollar project between Pakistan and China formally became operational.
The corridor is about 3,000-kilometre long consisting of highways, railways and pipelines that will connect China’s Xinjiang province to the rest of the world through Gwadar port.
#Pakistan to set up #infrastructure bank with $1 billion capital to finance private sector development. #IMF #IFC
https://tribune.com.pk/story/1394404/pakistan-set-1b-infrastructure-bank/
Finance Minister Ishaq Dar has announced that the government will set up Pakistan Infrastructure Bank with a paid-up capital of $1 billion, which will give financing to private investors for development projects.
Pakistan government and the International Monetary Fund (IMF) would have 20% shares each in the bank and the rest would be held by global organisations such as the International Finance Corporation, he said.
AJK plans tourism corridor along CPEC
He was speaking at a briefing held for the Pakistani media towards the end of his visit to Washington DC during which he attended spring meetings of the IMF and the World Bank.
Dar also revealed that the government would soon be launching Pakistan Development Fund (PDF) and its shares worth Rs100 billion would be offered to Pakistani diaspora in order to channelise their remittances effectively.
Later, these shares will be listed on the Pakistan Stock Exchange. “After the success of Sukuk (Islamic bonds), the PDF will be another attractive investment for overseas Pakistanis,” he remarked.
Giving a detailed round-up on the plenary sessions with the IMF and World Bank, the minister said there was positive sentiment about the tremendous economic rebound experienced by Pakistan over the last four years.
“Pakistan was on the verge of bankruptcy in 2014 and today it is likely to achieve approximately 5% growth during the current financial year,” he said. “Both IMF and World Bank are on the same page with the Pakistani government in these projections.”
Promotion of it: Work on innovation centres begins
Global credit rating agencies have upgraded the rating of Pakistan from negative to stable and from stable to positive in the last four years to an extent that the country is likely to be included in G-20 countries by 2030.
Why Is Manufacturing More Expensive In India Than In China?
https://www.forbes.com/sites/quora/2017/12/13/why-is-manufacturing-more-expensive-in-india-than-in-china/#4cfa85506301
Why are manufacturing costs higher in India, compared to China? originally appeared on Quora: the place to gain and share knowledge, empowering people to learn from others and better understand the world.
Answer by Balaji Viswanathan, CEO of Invento Robotics, on Quora:
A number of my relatives run manufacturing plants in Tamil Nadu, a relatively developed state. My in-laws have also recently started importing from China (replacing their Indian suppliers) and I will tell you why costs are higher than in China.
Power availability: You start a plant and realize that power availability is not 24/7. In Coimbatore and other industrial places you get power for like eight hours a day. That means the machinery lies idle for sixteen hours and that wasted capacity adds to the cost.
Cost of power: In India, we subsidize the power to farmers so much (farmers are a huge political base to regional parties) that the electricity companies either have to go bankrupt or charge huge amounts for industries. Electricity cost is often higher than some developed countries.
Cost of labor: Getting good factory labor in places like Tamil Nadu has become extremely hard. Skilled people are already in high-paying industries. The unskilled ones are hard to deal with. When we get labor from the north, they often move out without much notice (go to Diwali on vacation and never return). Skill building is lacking. If you pay $250, the quality of labor you get in China is likely higher than what you get in India.
Cost of transportation: Given the poor roads, a shipment from India's north can take a week or more to reach India's south. Sometimes it is quicker and cheaper to actually get a shipment from Shenzhen than Kolkata. Time is money and all those delays add to your cost. If I could get something in two days, I could sell it immediately rather than wait two months to sell it (add up the interest costs).
Bureaucracy: Starting a new plant or to adding anything to an existing one is very costly in time and money. You need to fill out a huge number of forms and grease a lot of palms just to do something legal and useful. Shipping across states is also very delayed (this is why the industry is pushing for GST). Unless most of the Indian laws - especially the one dealing with factories and labor - are thrown out, corruption, delays, and inefficiencies will remain.
Anti-large enterprises: India grew up in the mindset that large industries are bad. While many laws have changed since 1991, some of our laws, especially in textiles, are structured around small enterprises. Small businesses do not have the scale to produce cheaply and take on massive factories in China or Bangladesh. Thus, in the huge lucrative market of ready-made garments, Bangladesh quickly took the number two spot - leading to huge improvements in women development, while Indians are clinging to outdated laws favoring small, cottage industries.
If India has to compete with China, we have to completely overhaul all of the economic laws - taxes, labor, factories - we have had in place since 1947. Otherwise we will continue to be costlier than Vietnam and Bangladesh.
This question originally appeared on Quora - the place to gain and share knowledge, empowering people to learn from others and better understand the world. You can follow Quora on Twitter, Facebook, and Google+. More questions:
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#Chinese businesses plan $1 billion #investment in #Pakistan's #automotive, #textile, #agriculture, information #technology and #telecom sectors. #CPEC https://www.thenews.com.pk/print/497017-chinese-businesses-plan-1-billion-investment-in-cpec-projects
Chinese businessmen on Thursday expressed desire to invest around one billion dollars in Pakistan as China’s funded economic corridor projects entered into their second phase with focus on industrial and agriculture cooperation and Gwadar development. The 50-member business delegation apprised Minister for Planning, Development and Reform Khusro Bakhtyar of its investment plan during a meeting. They are keen to invest in various sectors, including automotive, textile, agriculture-related, information technology and telecom industries. Bakhtyar said the ministry of planning would facilitate investment to further the economic cooperation between the two countries.
“The government is focusing on promoting export-led industry and import substitution for sustained economic growth,” an official statement quoted the planning minister as saying. “China can help increase Pakistan’s exports by relocating export-oriented industries and initiating joint ventures in various fields. This will boost industrial cooperation besides strengthening bilateral economic partnership between the two countries.”
China initiated $62 billion worth of infrastructure and energy projects in Pakistan as part of its Belt and Road Initiative.
The minister said the country offers liberal investment policies to attract foreign investment in different areas. “Private sector of both the countries should forge partnerships for mutual economic benefit of the two countries,” he said. “There are investment opportunities in various sectors such as maritime, iron and steel, petrochemical, agro-based industries, tourism, energy, minerals and mines and textiles.”
Bakhtyar further said establishment of industrial zones has the potential to revive the country’s industrial sector. “It will also create job opportunities besides developing local industries.”
Pan Guangfeng, head of the Chinese delegation acknowledged the significance of Pakistan’s strategic location and the immense investment opportunities in the country. Guangfeng said the city of Chongqing is side by side with One-Belt-One-Road and a centre of heavy industrial activity in central China, especially the automotive and electronics industries of the region along with 37 industrial parks. The delegation head said the investors could raise $300 to 500 million for special economic zone (SEZ) infrastructure development with an umbrella investment of $1 billion in several sectors. He hoped that Chinese investment in Pakistan would help to create 500,000 direct jobs for local youths in addition to transfer technology and raise industries’ tech standards in Pakistan.
Members of the visiting delegation, comprising of chief executives and general managers of businesses from the City of Chongqing, have experience in developing economic zones and expressed their intention to facilitate in the development of SEZs. They highlighted the potential role of Belt and Road Initiative in contributing to the economic and social development of Pakistan and further explored the avenues of collaboration in technological innovation and up-gradation, job creation, ecommerce, and development of human resource capabilities through industrial cooperation between China and Pakistan.
New #industrial city near #Faisalabad in #Pakistan to create 300,000 jobs & attract Rs400 billion #investment in #automobiles, #textiles, #engineering, #pharmaceuticals, #food processing, #chemicals, #construction materials, #FGCG and packaging sectors.
https://www.khaleejtimes.com/international/pakistan/300000-jobs-to-be-created-for-pakistanis
The project will attract a huge investment in automobiles, value-added textiles, engineering and pharmaceuticals.
Prime Minister Imran Khan on Friday, January 3, performed the groundbreaking of the Allama Iqbal Industrial City in Faisalabad which is being established under China-Pakistan Economic Corridor and expected to create around 300,000 jobs and attract Rs400 billion investment.
During a day-long visit here, the prime minister performed the groundbreaking of the mega project by unveiling a plaque and also planted a sapling at the project site as part of his 10-Billion Tree Tsunami.
The prime minister was briefed about the significance of the project which is expected to create 300,000 jobs during the next five years.
The project will attract approximately Rs400 billion investment in automobiles, value-added textiles, engineering, pharmaceuticals, food processing, chemicals, construction materials, FGCG and packaging sectors. It will contribute to the country's GDP, increase the exports of the country and would also encourage the import substitution.
In total, nine special economic zones had been planned under the China-Pakistan Economic Corridor (CPEC) Industrial Cooperation Framework.
Pakistan, China agreement on industrial cooperation a breakthrough: Dawood
https://www.brecorder.com/news/40153174
The advisor added that the agreement will augment the process of B2B [Business to Business] collaboration and matchmaking. “[It would] pave the way for industrial relocation from China and export-led growth with numerous direct/indirect benefits to the economy,” he said.
“I congratulate BOI for this landmark achievement,” said Dawood.
The CPEC Joint Working Group (JWG) on Industrial Cooperation was established in 2016 and an MoU was signed between the parties in 2018. With the passage of time and as the CPEC entered its second phase, the need for a comprehensive Framework Agreement became imperative.
CCoCPEC to fine-tune PM’s China agenda
Both sides reached a consensus on the elevation of the MoU into a Framework Agreement in 2020.
The agreement reaffirms prioritised development and operations of the nine CPEC SEZs, with primary focus on the early completion of Rashakai SEZ in KP, Allama Iqbal Industrial City in Punjab, Dhabeji SEZ in Sindh, and Bostan SEZ in Balochistan.
For colonisation of these SEZs, the business-to-business matchmaking mechanism of Pakistani and Chinese enterprises has also been emphasised, which will proliferate the people-to-people and institution-to-institution linkages.
---------------
Abdul Razak Dawood
@razak_dawood
Signing of Framework Agreement on Industrial Cooperation between 🇵🇰Pakistan & 🇨🇳 China is a breakthrough for CPEC Phase II and a significant outcome of the PM’s visit to China. The agreement will augment the process of B2B collaboration and matchmaking 1/2
https://twitter.com/razak_dawood/status/1491324260455190528?s=21
Abdul Razak Dawood
@razak_dawood
and pave the way for industrial relocation from China and export-led growth with numerous direct/indirect benefits to the economy. I congratulate BOI for this landmark achievement. 2/2
@investinpak
@mincompk
@aliya_hamza
@MAzfarAhsan
#China #Pakistan
@CPEC_Official
https://twitter.com/razak_dawood/status/1491324262359367680?s=20&t=YJ8CVsNeC58lFPWj4WYuRA
Muneeb Sikander
@MuneebASikander
1/2 Pak Flood hit rural economy
Work produces things of value and transforms physical world in ways to make life better and survival possible.
But without organised and purposeful productive action, i.e., work, not possible for most people asis at the base of economic order
https://twitter.com/MuneebASikander/status/1572606162939289601?s=20&t=hDUZH4AawwsjZEdasU77jw
----------------
2/2 Flood hit rural areas
Agrarian to agriculture/livestock based or limited workshop industry. Limited Agri TFP + 15.4 million at poverty risk
1. Need for agri TFP improvement
2., Need to diversify economic base by Proto-industrialization,
https://www.stlouisfed.org/publications/regional-economist/second-quarter-2021/how-jump-start-industrialization-sub-saharan-africa
https://twitter.com/MuneebASikander/status/1572606221076819970?s=20&t=hDUZH4AawwsjZEdasU77jw
How to Jump-Start Industrialization in Sub-Saharan Africa
May 27, 2021
By Yi Wen , Iris Arbogast
https://www.stlouisfed.org/publications/regional-economist/second-quarter-2021/how-jump-start-industrialization-sub-saharan-africa
KEY TAKEAWAYS
Most sub-Saharan nations have such low per capita incomes that it would take decades of double-digit growth to attain U.S. living standards.
Nations that industrialize successfully often begin with small-scale efforts and progress to mass-producing heavy industrial goods.
African countries could follow this development pattern with government-provided infrastructure and other support.
When considering income disparities across nations, the differences often can be striking, particularly for nations in the sub-Saharan region of Africa. Per capita income in many poor countries like these is 30 to 50 times smaller than in the U.S. In sub-Saharan Africa, 38 of 48 countries had gross national income (GNI) per capita levels below $2,300 in 2019, while GNI per capita was $65,850 in the U.S., according to data from the World Bank’s World Development Indicators database.
Generations of economists have studied economic development and given policy suggestions to officials in poor countries in Africa and elsewhere, but the disparities remain. To catch up to U.S. living standards, they would need to grow at about 11% per year for 40 to 50 years—an almost impossible standard that only China has come close to achieving in recent history.
The New Stage Theory of Development
The commonality between successful Asian countries’ industrialization (such as China’s rapid rise in the past 40 years) and successful European nations’ industrialization (such as the British Industrial Revolution in the 18th* and 19th centuries) is that these economies all went through three key stages during their industrialization, according to the New Stage Theory of Development (NST):1
Proto-industrialization, which features massive numbers of workshops in rural areas with small-scale production of basic consumer goods for long-distance trade
A first industrial revolution, which features mass production of labor-intensive, light consumer goods for domestic and international markets
A second industrial revolution, which features mass production of capital-intensive, heavy industrial goods
The first stage is very important but has been largely ignored by development economists. During this initial stage, rural farmers or poor households in urban areas use their free time to manufacture simple products and engage in long-distance trade. This raises their income and nurtures the formation of an increasingly unified market and primitive production networks, while developing entrepreneurship and labor skills. 2
During the second stage, large-scale factory systems become prevalent for light industries such as textiles, processed food, toys and furniture. This mass-production stage is labor-intensive, export oriented and benefits from poor countries’ comparative advantage in cheap labor. Mass production in the second stage is profitable only because proto-industrialization has created a large enough market and distribution networks for consumer goods.
Finally, the expansion of light industry in the second stage facilitates the formation of a large enough market for heavy industrial goods—such as means of transportation, energy, steel and heavy equipment. This is not only because the income of workers needs to be high enough to purchase big-ticket items such as automobiles, but because mass production of heavy industrial goods is profitable only after the second stage creates a mass-production chain to support their demand. 3
CPEC special economic zones to generate huge job opportunities in Pakistan: official
https://english.news.cn/20221215/e0172b03c8b5487d806730149fd7b5fb/c.html
Four special economic zones (SEZs) being set up under the framework of the China-Pakistan Economic Corridor (CPEC) are likely to generate about 575,000 direct and over 1 million indirect jobs in Pakistan, a senior official said on Thursday.
The economic zones being established in the country's Khyber Pakhtunkhwa (KP), Punjab, Sindh and Balochistan provinces would bring about immense opportunities for Pakistani people in job and business sectors, Chairman of Special Economic Zones Authority S.M. Naveed said.
"We have conducted a study to assess job opportunities in four out of nine SEZs, including KP's Rashakai, Sindh's Dhabeji, Punjab's Allama Iqbal and Balochistan's Bostan, to find out potential jobs and industries in the SEZs," the official said, adding that the SEZs offer employment in different fields for which the local youth would be trained before the initiation of the industrial phase.
The trained and skilled labor and engineers would not only get good jobs in the economic zones but also enable Chinese and local companies to recruit skilled professionals from local areas, he added.
The potential industries being set up in the CPEC special economic zones include food processing, cooking oil, ceramics, gems and jewelry, marble, minerals, agriculture machinery, iron and steel, motorbike assembling, electrical appliances and automobiles.
Launched in 2013, CPEC is a corridor linking Pakistan's Gwadar Port with Kashgar in northwest China's Xinjiang Uygur Autonomous Region, which highlights energy, transport and industrial cooperation. ■
The federal government has decided to go ahead with the China Pakistan Economic Corridor (CPEC) amid the watchful eyes of international entities. The federal cabinet has approved the commencement of the second, and most important, phase of the CPEC project for industrial development of Pakistan.
https://profit.pakistantoday.com.pk/2023/03/23/despite-international-pressure-pakistan-proceeds-with-the-second-phase-of-cpec/
According to reports, the industrial cooperation agreement between the two neighboring countries will be effective till 2025, with the possibility of further expansion. They elaborated that under the agreement, there will be capacity building and skill development of Pakistan’s CPEC workforce. The Ministry of External Affairs and Ministry of Law jointly endorsed the draft agreement, sources claimed.
To clarify, BoI is the lead agency of the Joint Working Group (JWG) on industrial cooperation under CPEC from the Pakistani side. On the other hand, the Chinese counterpart of the BoI is the National Development & Reform Commission (NDRC), China.
A framework agreement was also signed between both parties in 2022, which besides other matters of significance, also aims to foster skill development and capacity building of the local workforce. This shows the potential skilling and economic advancement that Pakistan anticipates would result from the current endeavor.
Here is what happened in the pursuance of the consensus reached in the Framework Agreement and the 10th JCC meeting of CPEC, held on 23rd September 2021, the NDRC– China has proposed that an MoC between BoI and the All-China Federation of Trade Unions (ACFTU) is likely to be signed, in order to strengthen workers’ exchange under CPEC Industrial Cooperation.
Sources further hinted that the proposed MoC envisages to conduct exchange programmes of Government officers and workforce associated with CPEC projects, through capacity building and skill development, Chinese language courses, and any other mutually agreed mechanism to promote people to people ties.
According to sources, BoI and ACFTU have reached consensus on the text of the draft MoC, which has been duly vetted by the Law Division, as well as been concurred by the Ministry of Foreign Affairs.
Based on the draft copy, available with Profit, of the MoC between the ACFTU of China and the BoI of Pakistan, there will be an agreement between the two entities to promote industrial cooperation, within the framework of the China-Pakistan Economic Corridor Industrial Cooperation (CPEC IC).
In the foreseeable future (2023-2025), and keeping in mind the COVID-19 pandemic, both sides will, on the basis of mutual consent, hold online workers symposiums at regular intervals, as well as, carry out relevant exchanges and cooperation. The online symposium will be designated for the workforces of both countries that are actively engaged in and contributing to the construction of CPEC. This will provide a platform to augment people to people exchanges through experience sharing and suggestions for the future development of CPEC.
Moreover, online seminars based on the Chinese’s successful experience in development for Special Economic Zones (SEZs) shall also be organized for the concerned stakeholders in Pakistan. Following the same timeline, in the next three years, both sides shall initiate an exchange programme by arranging activities in their respective countries to foster practical people to people and cultural exchanges on ground.
To provide first hand experience of the successful industrial models in China, the Chinese stakeholders shall facilitate the field visits of the concerned teams from Pakistan, including the Chinese SEZs, sources told Profit. Likewise, in order to mitigate the language barrier between the two countries’ workforces associated with CPEC, while promoting brotherly relations and cultural ties, both sides shall arrange exchange programmes by holding language learning courses in their respective countries.
KP takes lead by completing first CPEC originated project
https://dailytimes.com.pk/1114618/kp-takes-lead-by-completing-first-cpec-originated-project/
Khyber Pakhtunkhwa Economic Zones Development and Management Company (KP-EZDMC), a public sector company of the KP government, has taken the lead by completing the first phase of the China-Pakistan Economic Corridor (CPEC) flag-bearer Rashakai Special Economic Zone (SEZ), at District Nowshera.
Talking to APP here Sunday, the Chief Executive Officer (CEO) Javed Iqbal Khattak said that the completion of the first phase of the Rashakai SEZ comprising three phases and covering an area of 247 acres, was due in December 2023, but due to better teamwork and coordination with China Road and Bridge Company (CRBC,) it had been completed six months prior of its specified time period. The Rashakai SEZ is the first completed project initiated under CPEC in Pakistan. This marvelous performance shown by a public sector company of Khyber Pakhtunkhwa has given an edge to the province over other provinces of the country.
So far, an investment to the tone of Rs.85 billion has already been made in the zone and besides, Chinese several domestic big industrial groups are also investing in it, he said. The investors are going to set up units for manufacturing Active Pharmaceutical Ingredients (APIs) a raw material for the pharmaceutical industrial units while another investor has also shown interest in establishing a vaccine manufacturing unit in the zone while Pakistan Oxygen, a largest oxygen manufacturing unit has already invested in the Zone.
The current innovative management of company has initiated construction work on 9 new economic zones including two special economic zones of Hattar and Rashakai. 90 percent infrastructure development work at Hattar Special Economic Zone has been completed and now colonization is also in progress in the facility. During the current management, the total assets of the company by the end of the year 2022 have increased to Rs.15.8 billion as compared to Rs.13 billion in 2021.
Haier revolutionizes cooling solutions with launch of Pakistan's first Solar Hybrid Air Conditioner
https://en.dailypakistan.com.pk/28-Aug-2023/haier-revolutionizes-cooling-solutions-with-launch-of-pakistan-s-first-solar-hybrid-air-conditioner
Haier is proud to unveil an unprecedented leap in the realm of cooling solutions with the introduction of Pakistan's very first solar hybrid air conditioner. This groundbreaking innovation marks a monumental shift towards sustainable and energy-efficient living, setting new standards in the industry. The launch of the solar hybrid air conditioner underscores Haier's dedication to shaping a brighter future for generations to come.
The Haier solar hybrid air conditioner is a groundbreaking marvel that operates entirely on solar power during daylight hours, eliminating the need for any intermediary devices such as inverters, batteries, UPS, or converters. By seamlessly integrating four 540W solar panels and establishing a direct connection to the outdoor unit, the AC functions autonomously, setting an industry precedent. This marks a historic milestone in Pakistan, where an air conditioner operates directly on solar power without any supplementary support.
For the very first time, consumers can embrace cooling technology that not only cools their spaces but also ensures zero electricity bills during daylight hours. Never before in Pakistan has an air conditioner operated directly on solar power without any intermediate support. This innovative approach significantly minimizes the concerns related to electricity costs and additional equipment expenses. As daylight graces the solar panels, the AC operates exclusively on solar energy, providing cooling comfort without the burden of utility bills. The system seamlessly switches to the grid only in case of cloudy weather, mimicking the hybrid concept found in modern-day hybrid cars. Additionally, the same holds true for nighttime operations.
The road that's the 'Eighth World Wonder'
https://www.bbc.com/travel/article/20230903-the-karakoram-highway-the-road-thats-the-eighth-world-wonder
The 1,300km Karakoram Highway cuts through some of the most astounding rock faces on the planet. It's a road trip of dreams, yet few have ever heard of it or how it came to be.
Crisp mountain air rushed in through the car window as I drove past jagged mountain landscapes. Despite summer being in full swing, massive amounts of snowpack still clung to the 7,000m peaks. Glacial waterfalls dripped down to feed the aquamarine river below, through Pakistan's high-altitude Hunza Valley that was aptly termed "Shangri La" by British novelist James Hilton.
I was driving the Karakoram Highway (KKH), which cuts through some of the most astounding rock faces on the planet. Often coined the "Eighth Wonder of the World", it's a road trip of dreams, yet few have ever heard of it, or how it came to be.
The KKH was once a leg of the Silk Road, with its foundations built by locals centuries ago. However, it wasn't until 1978 – after nearly 20 years of construction by more than 24,000 Pakistani and Chinese workers – that it was officially inaugurated for vehicles, which brought trade, tourism and ease of travel to this remote part of the world.
The 1,300km highway extends from the small city of Hasan Abdal near Pakistan's capital of Islamabad to Kashgar in China's autonomous Xinjiang region via Khunjerab, the highest paved border crossing in the world at about 4,700m. But I was drawn to the 194km stretch of the highway that runs through the Hunza Valley, a region surrounded by the Karakoram Mountains that give the highway its name. This impossibly beautiful section is where you can see pristine glaciers, alpine lakes and snow-capped peaks right from the comfort of your ride. However, as alluring as the journey is, it's the incredible people and traditions of the Hunza Valley that make this part of the highway so special.
Nestled in the Gilgit Baltistan territory between Xinjiang and Afghanistan's Wakhan Corridor, Hunza was mostly cut off from the world until the 20th Century due to the formidable geography. Primarily home to the Burusho and Wakhi people, the remote region has its own languages, music and culture that's unlike anything you'd find in Pakistan – or anywhere else in the world.
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