Wednesday, November 8, 2017

Pakistan's Large Scale Manufacturing Soars By Double Digits

Large Scale Manufacturing (LSM) in Pakistan shot up 11.3% in the first two months of fiscal year 2017-18, according to the Federal Bureau of Statistics (FBS). It represents a big surge from 5.7% LSM growth seen in Fiscal 2016-17.

Courtesy: Dawn Newspaper

The broad-based LSM growth was led by 50% jump in iron and steel production and 31% in auto manufacturing sector. Cement production grew nearly 20%, engineering products 19% and Pharmaceuticals 11% in the July-August 2017.

Although production was driven mostly by strong domestic demand, the exports in July-Sept 2018 also increased nearly 11% over the same period last year.

Among the notable sub-sectors driving strong LSM growth in July-August 2017 are: Tractors 115%,  motorcycles 28.3%, deep freezers 16.2%, air-conditioners 26.8%, electric-fans 22.4%, electric motors 17.3% and electric meters 18.3%, and switchgear 20.8%.

Significant improvement in the country's security situation is helping restore confidence of investors, businesses and consumers who are pushing economic growth in Pakistan to new highs. The fast pace of execution of China-Pakistan Economic Corridor (CPEC) related projects is at least partly responsible for it. 

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Rizwan said...

The same article you quoted goes on to say, '---“the addition of certain raw materials in the list (of the items 731 items) will increase the manufacturing cost (for other industries),” warns Shakil Dhingrah, chairman of a standing committee of the Federation of Pakistan Chambers of Commerce and Industry.'

Fact remains that Pakistan does not have a coherent economic policy that can assure long term steady industrial and agricultural growth.

Riaz Haq said...

Overseas #Investors Chamber Reports #Business Confidence in #Pakistan Up 8% Since May 2017

Local and foreign investors are bullish and confident on the investment opportunities in Pakistan as they, despite having concerns over policy inconsistency, bet on governance improvement, a survey revealed yesterday.
The Business Confidence Index survey, conducted by the Overseas Investors Chamber of Commerce and Industry (OICCI) twice a year, found an 8% improvement in business confidence.
The index that considers various indicators found business sentiments 21% positive as compared to 13% recorded in the survey in May.
Overseas Investors Chamber of Commerce and Industry president Khalid Mansoor said the current positive business sentiment should not be taken for granted as it is ‘strongly’ co-related with good governance “that needs to be supported by a progressive, transparent, consistent and predictable policy framework.”
Mansoor advised the government to become more proactive and expedite critical interventions on all issues hindering investment and economic activities including foreign direct investment and export.
“There is an urgent need to focus on addressing the country’s very poor rating of 147 out of 190 countries in the recently issued World Bank’s 2018 ease of doing business report, down from 144 in 2016 and way below the 75 rating of Pakistan in 2010,” he said in a statement.
The survey is conducted through field interviews in all the four provincial capitals, Islamabad and key business towns across the country.
It is a feedback from representatives of all business segments in Pakistan, including retail marketplace, and covers roughly 80% gross domestic product.
The Overseas Investors Chamber of Commerce and Industry has 195 members from 35 different countries, representing 14 economic sectors and contributing over one-third of Pakistan’s total tax revenue.
The sentiments of the leading foreign investors, represented by the Overseas Investors Chamber of Commerce and Industry members and who participated in the survey, also recorded a 5% increase to 42%. Retail and wholesale trade sector led an upswing with 40% positive sentiment in the survey, up 27% in the six months period.
The manufacturing sector followed suit with a 16% positive sentiments, showing a substantial increase of 7%, while the service sector with 15% recorded a marginal decline of 3%. Chemical/cement sector grew 41%, financial services 30%, nonmetallic 23% and food sector 21%. Transport and communication and automobile sectors registered modest growth rates of 12% and 7%, respectively.
The Overseas Investors Chamber of Commerce and Industry attributed the overall index increase to improvement in
global perception and business environment as well as an expected rise in capital investment over the next six months.
“These views of the survey respondents were largely based on improvement in security, law and order and the overall economy, increased consumer demand, better business alliances, decline in the energy crises and decrease in fuel prices and low inflationary pressure on various other products,” it said.

A view of the Karachi city (file). The Business Confidence Index survey, conducted by the Overseas Investors Chamber of Commerce and Industry (OICCI) twice a year, found an 8% improvement in business confidence in Pakistan.

Riaz Haq said...

PAAPAM opens Pakistan's largest automotive Expo 2022 in Lahore

Pakistan Auto Show 2020 Chief Organizer and PAAPAM former chairman Syed Nabeel Hashmi said “Pakistan Auto Show 2022 is setting new benchmarks and trends for the automotive industry. Today, this mega event attracts more than 100,000 visitors from all over Pakistan and internationally. Over 200 international buyers and well over 100 international visitors will be attending the largest auto show in Pakistan.” The government needs to prepare long-term plans and support industries accordingly. The Chairman of Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM) – Capt. (R) Muhammad Akram stated that: People are passionate about seeing the latest revolutionary technologies being deployed in Pakistan. Some of the participants this year include global automobile brands, along with spare-parts manufacturers, component suppliers, Original Equipment Manufacturers (OEM vendors), automobile traders, investors, buyers and enthusiasts, who want to expand their business networks and gain more information about the innovations and products in this sector.” The inaugural day at the show, saw an overwhelming response from industry stakeholders, international large-scale buyers and diverse consumer segments, as the Pakistan Auto Show features; cars, tractors, trucks, buses, 4X4, motorcycles, three wheelers and exotic cars, while promoting a wide array of advanced technologies and solutions, including; engines, casting, forging, sheet metals, jigs and fixtures, along with electronics, car-paints, tools, tires, batteries, plastic parts, rubber parts and accessories.


Automobile Sector Has Key Importance In Economy: Secretary

LAHORE, (UrduPoint / Pakistan Point News - 31st Jul, 2022 ) :Provincial Industries and Commerce Department Secretary Dr Ahmed Javed Qazi said on Sunday that automobile industryenjoyed a key position in the national economy, and effective steps were being taken to increase its share in the GDP and get its proper share in the global market.

This sector, he added, was providing opportunities to value-added exports; therefore, the Punjab government was providing all possible support for development of this industry.

Addressing an industrial symposium, organised by the Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM) here at the Expo Center, he said 10 special economic zones were functional in the province, while recommendations had been sent to the Federal government for three new special economic zones. "There are vast opportunities for domestic and foreign investors in these special economic zones. There are also 24 small industrial estates for investors in the province," he added.

Qazi said that the University of Engineering and Technology (UET) Lahore was contributing much to promote automobile and engineering sector and the Punjab Tianjin University of Technology, Mir Chakar Khan University, Dera Ghazi Khan, and Rasool University Mandi Bahauddin were producing high-quality technologists; however, there was a need to strengthen the linkages between academia and industry.

The secretary said that such seminars prove helpful in policy-making process, assuring the recommendations that came out at the symposium would be considered by the relevant departments. He said that holding an auto show was a welcome step as 153 local and international exhibitors were participating in the event, factories making cars, tractors and motorcycles, apart from factories making auto-parts have set up their stalls.