Pakistan Technology Exports:
Pakistan's information technology exports have bucked the nation's declining exports trend with double digit growth to reach $1,065 million in fiscal year 2018, according to the State Bank of Pakistan. It is generally believed that Pakistan's central bank underestimates technology exports. Some have argued that the actual IT exports were closer to $5 billion in fiscal 2018. Some of the differences can be attributed to the fact that the State Bank IT exports data does not include various non-IT sectors such as financial services, automobiles, and health care.
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| Source: State Bank of Pakistan |
Pakistan IT exports surged 13.4% to $1.06 billion in fiscal year 2018 from $939 million in fiscal year 2017. The growth was even more robust in the prior year with IT exports rising 19.1% from $789 million in fiscal 2016 to reach $939 million in fiscal year 2017.
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| Source: State Bank of Pakistan |
About $320 million of IT exports revenue in fiscal 2018 came from software exports while the rest was made up of services such as consulting, telecom and call centers.
Scientific Research Output:
Pakistan is one of the world's top two countries where the research output rose the fastest in 2018, according to Nature Magazine. The publication reports that the "global production of scientific papers hit an all-time high this year...with emerging economies rising fastest".
Pakistan ranked first or second depending on whether one accepts the text or the graphic (above) published by Nature. The text says Egypt had 21% growth while the graph shows Pakistan with 21% growth. Here's an excerpt of the text: "Emerging economies showed some of the largest increases in research output in 2018, according to estimates from the publishing-services company Clarivate Analytics. Egypt and Pakistan topped the list in percentage terms, with rises of 21% and 15.9%, respectively. ...China’s publications rose by about 15%, and India, Brazil, Mexico and Iran all saw their output grow by more than 8% compared with 2017".
Pakistan's quality-adjusted scientific output (Weighted Functional Count) as reported in Nature Index has doubled from 18.03 in 2013 to 37.28 in 2017. Pakistan's global ranking has improved from 53 in 2013 to 40 in 2017. In the same period, India's WFC has increased from 850.97 in 2013 to 935.44 in 2017. India's global ranking has improved from 13 in 2013 to 11 in 2017.
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| Countries With Biggest Rises in Research Output. Source: Nature |
Pakistan ranked first or second depending on whether one accepts the text or the graphic (above) published by Nature. The text says Egypt had 21% growth while the graph shows Pakistan with 21% growth. Here's an excerpt of the text: "Emerging economies showed some of the largest increases in research output in 2018, according to estimates from the publishing-services company Clarivate Analytics. Egypt and Pakistan topped the list in percentage terms, with rises of 21% and 15.9%, respectively. ...China’s publications rose by about 15%, and India, Brazil, Mexico and Iran all saw their output grow by more than 8% compared with 2017".
Pakistan's quality-adjusted scientific output (Weighted Functional Count) as reported in Nature Index has doubled from 18.03 in 2013 to 37.28 in 2017. Pakistan's global ranking has improved from 53 in 2013 to 40 in 2017. In the same period, India's WFC has increased from 850.97 in 2013 to 935.44 in 2017. India's global ranking has improved from 13 in 2013 to 11 in 2017.
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| Pakistan Telecom Indicators. Source: PTA |
Digital Growth:
Mobile broadband subscriptions (3G and 4G) grew at a rate of 1-2 million per month to pass 60 million in 2018, according to data from Pakistan Telecommunication Authority (PTA). Rising digital infrastructure is enabling a whole range of applications from e-commerce to digital payments and greater financial inclusion. It prompted Google's Singapore-based Asia business lead to write that "Pakistan is quickly becoming a digital-first country"
Alipay, a subsidiary of Hangzhou-based Ant Financial, has received approval by the Competition Commission of Pakistan (CCP) to acquire a 45 percent stake in Pakistan's Telenor Microfinance Bank for $184 million. Alipay's entry is expected to expedite widespread adoption of digital payments in the country. Several domestic mobile payment services offered by telecom operators are currently operating in Pakistan. The lack of international reach has kept the penetration rate of the payment portals relatively low. Entry of Alipay, the world's largest mobile payment platform, will intensify digital payments competition, improve the quality of service, energize the industry and enhance financial inclusion in a country where less than 20% of the population has bank accounts.
E-Commerce Growth:
At the World Economic Forum in 2017, Ebay’s chief executive Devin Wenig highlighted Pakistan as one of the fastest growing e-commerce markets in the world. It might have prompted Alibaba to acquire Daraz.pk, Pakistan’s largest e-commerce platform, in May 2018.
Online sales in Pakistan's $152 billion retail market are doubling every year, according to Adam Dawood of Yayvo online portal. The country's retail market is the fastest growing in the world, according to Euromonitor. Expanding middle class, particularly millennials with rising disposable incomes, is demanding branded and packaged consumer goods ranging from personal and baby care items to food and beverage products. Strong demand for fast moving consumer goods is drawing large new investments of hundreds of millions of dollars. Rapid growth in sales of consumer products and services is driving other sectors, including retail, e-commerce, paper and packaging, advertising, media, sports and entertainment. Potential downsides of soaring consumption include increased amount of solid waste and decline in domestic savings and investment rates.
Summary:
Pakistan saw its technology exports grow by double digits to surge pass $1 billion mark in 2018. Nature magazine reported the country ranked first in the world in research output growth in year 2018. Pakistan mobile broadband subscriptions grew by 1-2 million a month to pass 60 million. Google's Singapore-based Asia business lead wrote that "Pakistan is quickly becoming a digital-first country". Chinese e-commerce giant Alibaba and its digital payments platform Alipay entered Pakistan market by acquiring Daraz.pk and Telenor EasyPaisa. Dr. Ata ur Rahman Khan, former chairman of higher education commission, asserted in an op ed that "Pakistan churns out about 22,000 computer-science graduates each year". Pakistan set an ambitious goal for its first human space flight in 2022. It was an exciting year for science and technology in the South Asian nation of over 200 million people.
Related Links:
Haq's Musings
South Asia Investor Review
Pakistan's Research Output Growth Fastest in the World
Alibaba Enters Pakistan Market
Alipay Enters Pakistan Market
AI Research at NED University Funded By Silicon Valley NEDians
Pakistan Hi-Tech Exports Exceed A Billion US Dollars in 2018
Pakistan Becomes CERN Member
Pakistani Scientists at CERN
Rising College Enrollment in Pakistan
Pakistani Universities Listed Among Asia's Top 500 Jump From 16 to 23 in One Year
Genomics and Biotech Research in Pakistan
Human Capital Growth in Pakistan
Educational Attainment in Pakistan
Pakistan Human Development in Musharraf Years
Alipay, a subsidiary of Hangzhou-based Ant Financial, has received approval by the Competition Commission of Pakistan (CCP) to acquire a 45 percent stake in Pakistan's Telenor Microfinance Bank for $184 million. Alipay's entry is expected to expedite widespread adoption of digital payments in the country. Several domestic mobile payment services offered by telecom operators are currently operating in Pakistan. The lack of international reach has kept the penetration rate of the payment portals relatively low. Entry of Alipay, the world's largest mobile payment platform, will intensify digital payments competition, improve the quality of service, energize the industry and enhance financial inclusion in a country where less than 20% of the population has bank accounts.
E-Commerce Growth:
At the World Economic Forum in 2017, Ebay’s chief executive Devin Wenig highlighted Pakistan as one of the fastest growing e-commerce markets in the world. It might have prompted Alibaba to acquire Daraz.pk, Pakistan’s largest e-commerce platform, in May 2018.
Online sales in Pakistan's $152 billion retail market are doubling every year, according to Adam Dawood of Yayvo online portal. The country's retail market is the fastest growing in the world, according to Euromonitor. Expanding middle class, particularly millennials with rising disposable incomes, is demanding branded and packaged consumer goods ranging from personal and baby care items to food and beverage products. Strong demand for fast moving consumer goods is drawing large new investments of hundreds of millions of dollars. Rapid growth in sales of consumer products and services is driving other sectors, including retail, e-commerce, paper and packaging, advertising, media, sports and entertainment. Potential downsides of soaring consumption include increased amount of solid waste and decline in domestic savings and investment rates.
Summary:
Pakistan saw its technology exports grow by double digits to surge pass $1 billion mark in 2018. Nature magazine reported the country ranked first in the world in research output growth in year 2018. Pakistan mobile broadband subscriptions grew by 1-2 million a month to pass 60 million. Google's Singapore-based Asia business lead wrote that "Pakistan is quickly becoming a digital-first country". Chinese e-commerce giant Alibaba and its digital payments platform Alipay entered Pakistan market by acquiring Daraz.pk and Telenor EasyPaisa. Dr. Ata ur Rahman Khan, former chairman of higher education commission, asserted in an op ed that "Pakistan churns out about 22,000 computer-science graduates each year". Pakistan set an ambitious goal for its first human space flight in 2022. It was an exciting year for science and technology in the South Asian nation of over 200 million people.
Related Links:
Haq's Musings
South Asia Investor Review
Pakistan's Research Output Growth Fastest in the World
Alibaba Enters Pakistan Market
Alipay Enters Pakistan Market
AI Research at NED University Funded By Silicon Valley NEDians
Pakistan Hi-Tech Exports Exceed A Billion US Dollars in 2018
Pakistan Becomes CERN Member
Pakistani Scientists at CERN
Rising College Enrollment in Pakistan
Pakistani Universities Listed Among Asia's Top 500 Jump From 16 to 23 in One Year
Genomics and Biotech Research in Pakistan
Human Capital Growth in Pakistan
Educational Attainment in Pakistan
Pakistan Human Development in Musharraf Years
11 comments:
With god's grace Inshallah, Pakistan will rise and become the best economy in 10 years. Not the biggest but the best because of equality, talent, youth drive and synchronization of all sectors of the economy. The dedication and ethics of PM IK in 10 years - and I hope for 10 years will turn Pakistan into a tiger economy with China as our partner and based on egalitarian society which you have talked about.
Thank you Mr. Haq for sharing hope and confidence in Pakistan.
11 CPEC projects completed, 11 in progress
https://nation.com.pk/31-Dec-2018/11-cpec-projects-completed-11-in-progress
$18.9 billion investment made so far have created 75,000 jobs
According to the latest progress report on CPEC issued by the Chinese Embassy in Pakistan, 20 more projects were in pipeline under CPEC, which was the largest and most comprehensive project under the Belt and Road Initiative (BRI), besides being of great political, economic and social significance to China and Pakistan.
For implementation of CPEC, the two sides have set up a ministerial-level Joint Cooperation Committee on CPEC Long Term Planning (JCC) and seven joint working groups on planning, energy, transportation infrastructure, Gwadar Port, industrial cooperation, social economic development and international cooperation. They also decided to establish Joint Working Groups on social economic development and international cooperation.
Out of 15 energy projects planned as priority with a total generation capacity of 11,110MW, seven have been completed and in operation, while another six are under construction with a total capacity of 6,910 MW.
At present, Zonergy 300MW Solar Park, 50MW Dawood Wind Farm, Jhimpir UEP wind power project, Sachal 50MW Wind Farm, Sahiwal 2×660MW Coal-fired Power Plant, Port Qasim 2×660MW Coal-fired Power Plant and Three Gorges Second and Third Wind Power Projects have been completed. These projects have added 3240 MW to the Pakistani national grid, amounting to more than 11% of the total installed capacity of 29,000 MW in the country.
CPEC energy projects are providing affordable energy to Pakistani consumers in a diversified way. The tariff of power plants has been sharply decreased from Rs 16-18 to around Rs 8 per unit. With the introduction of CPEC energy projects, Pakistan also reduced its heavy dependence on gas and LNG power plants, which account for 50% of total installed capacity. The CPEC energy projects are foreign direct investment and are executed in accordance with BO(O)T mode. Any debt arising from the CPEC energy projects would be borne by the Chinese investors instead of the Pakistani government.
Regarding infrastructure projects, the report said currently, three projects including KKH Phase-II (Havelian-Thakot section), Karachi-Lahore Motorway (Sukkur-Multan section) and Lahore Orange Line are under construction. The information highway for laying of an optical fiber cable (OFC) from Rawapindi to Khunjrab is in operation. These ongoing projects are funded by preferential loans from the Chinese government at around 2% interest rate with a total amount of 5.874 billion USD. The up-gradation of ML1 railway and the KCR are under discussion.
About Gwadar Port, it said up to now China Overseas Ports Holding Company (COPHC) has invested $ 250 million in the port renovation. Five new quay cranes, a 100,000 M2 storage yard, a seawater desalination plant with capacity of 220,000-gallon pure water/day, two sets of sewage disposal systems and cargo handling equipment have been installed and 80,000 M2 green space has been added to the port area. 400,000 tons of cargoes have been handled by Gwadar Port in 2017.
The Gwadar Free Zone is located in the northern part of Gwadar. The planned development period is from 2015 to 2030, and is divided into four phases. The 923-hectare Free Zone includes an initial area (25 hectares) and the northern area (898 hectares).
Around 30 companies have invested in the Free Zone, with direct investment of about $474 million. With the construction of the free zone, the city of Gwadar will become a commercial hub of the region in the near future. The construction of Gwadar East Bay Expressway project was started in November 2017 and would be completed in 36 months with the designed speed of 100 kilometers per hour
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Financing Run Down of 22 CPEC Projects
2018/12/29
https://pk.chineseembassy.org/eng/zbgx/t1625940.htm
The economy in 2019 by Hammad Azhar
The economy has slowed down, the Rupee has been devalued, interest rates have gone up and there has been some increase in the rate of inflation in the country. Why has this happened? And what prospects does the economy hold in 2019? This article answers the above questions in an honest and as simple a manner as is possible.
https://www.thenews.com.pk/print/413356-the-economy-in-2019
Pakistan’s economy is recovering from what can be best described as a ‘consumption led’ growth period that was financed by short term debt instruments and a stifling of investment climate. Consumption as percentage of GDP went up from the already worrying figure of 91.8% in FY14 to 94.5% in 2018. Correspondingly, total gross investment (that includes government investment also) in Pakistan was reported at just 16.4% of GDP in FY18 whereas India’s figure stands at close to 30% and Bangladesh is at 31% of GDP. Additionally, our spur of consumption spree was associated with policies in the past that instead of channeling the countries resources into savings, investments and industrialization further aggravated the problem of private investment. And here’s how:
To begin with, we saw a very visible deterioration in the economy’s fundamentals as the country exited the last IMF program in 2016 and all forms of fiscal and monetary discipline were abandoned. What this means is that we were fuelling growth in the economy by spending from resources that we did not have. For example, in the last financial year alone, RS 1300 billion of government spending was financed by printing money and monetization of public debt. The previous government was also happy to ask FBR to withhold genuine refunds to the tune of hundreds of billions of Rupees of businessmen and entrepreneurs that further squeezed their working capital and halted all their expansions. This whole model broadly represented the previous government’s fiscal policy and it’s no surprise that it fuelled only consumption growth. And it also led to whopping RS 2300 billion or 6.6 % of fiscal deficit in the system i.e. the excess of government spending over government’s income.
Now let’s take a look at the monetary side. In the first 4 years of the previous government, the Real Exchange Rate (the buying power of the currency in comparison to other currencies) appreciated by 28% without any improvement in the trade deficit to justify this increase. This means that our exports became that much uncompetitive in the international markets and we began subsidizing our imports. This led to the closure of hundreds of export houses and fuelled a largely consumption led increase in our imports. From a point where we had a Current Account deficit of just USD 2.5 BN in 2013, the figure soared to USD 19 Billion in 2018.
The second aspect of monetary policy is Interest Rates. The interest rates were kept low in the past but that also did not translate into any notable increase in private sector borrowing, the loans that our entrepreneurs use for investments and setting up businesses and industry. The reason that private sector was not advanced these loans by the banks is that the government was doing what the economists call ‘crowding out’ the private sector. The banks were more than happy to lend to the government in the form of Treasury Bills. So in effect, the lower interest rates actually did not lead to any investment and the whole monetary scheme of things further fuelled the consumption spree.
The result of the above mentioned fiscal and monetary policies was not surprising for any economist. The country came on the verge of bankruptcy at the close of the last financial year (FY2018). Once both the IMF program ended and oil prices began to rise, the superficial nature of the whole economic model unfolded and the State was left with nothing to finance its fiscal expenditures and its huge import bill.
So what has the new government done about this? And what does it plan to do in order to make sure that the repeat of the above does not take place?
The economy in 2019 by Hammad Azhar
The economy has slowed down, the Rupee has been devalued, interest rates have gone up and there has been some increase in the rate of inflation in the country. Why has this happened? And what prospects does the economy hold in 2019? This article answers the above questions in an honest and as simple a manner as is possible.
https://www.thenews.com.pk/print/413356-the-economy-in-2019
So what has the new government done about this? And what does it plan to do in order to make sure that the repeat of the above does not take place?
The first and foremost plank of the new government’s economic priority in 2018 has been that the country must meet its financing obligations in terms of debt repayment due this financial year (USD 9 billion) and that the current account deficit is reduced to the range from USD 11-13 Billion from the current USD 19 Billion. The fiscal side also has to show improvement as the last reported fiscal deficit of 6.6% is not sustainable. The above priorities are necessary and overarching in order to keep the economy functioning and not defaulting on its both external and internal obligations.
The good news is that as a result of adjustments by SBP in the exchange rate and the imposition of Regulatory Duties by the government on non-essential items, we have seen a sharp reduction in the growth of imports that has gone down from the figure of 26% growth to a negative figure. Some commentators have criticized the steep adjustment in the exchange rate. However, one has to take into account the fact that the exchange rate was allowed to appreciate in real terms and the need for corrections had been piling up for at least 4 of the last 5 years. Therefore the country had deviated significantly from its Actual Exchange Rate value and a one-time steep adjustment had become inevitable.
The foreign remittances, another foreign exchange source, have also shown a very encouraging rise of 12.5% in the first quarter and the export sector is also showing a positive growth. In 2019, the government shall announce a comprehensive incentives package for overseas workers to send their remittances through the formal channels. Improving the speed, security and reducing the red tape that is currently surrounding the formal channel procedures is a central aspect of the upcoming incentives package for foreign remittances.
The new government’s successful foreign policy has led to friendly countries offering us sizeable support for our Balance of Payments. Bilateral assistance in the form of funds and deferred oil payment facilities from KSA, UAE and other countries has begun to pour in. As a result of the above, the country has successfully averted the balance of payments crises and all economic trends indicate that our deficits are coming down rapidly to within manageable ranges.
The second economic priority of the PTI government is that growth shall now have to be led by exports, investment and productivity instead of consumption and imported finance capital. I mention exports first because a country earns its foreign exchange primarily by virtue of this sector. And foreign exchange earnings are required to fill our huge financing gap and escape from the debt dependency trap. The readjustment of the exchange rate by bringing it at par with its actual market value has helped in restoring competitiveness of our exports. Furthermore, the government has also reached an agreement with the export sectors with regards to freeing up their entire stock of working capital stuck up with FBR in the shape of pending refund claims.
86% of all #patents awarded in #India in 2017 went to #foreigners
The number of patents granted by India jumped 50 per cent to 12,387 in 2017 as compared to 8,248 granted in the previous year, according to data released by the UN's World Intellectual Property Organisation (WIPO).
India granted 86 per cent (10,675) of the total patents to foreigners as compared to 14 per cent (1,712) awarded to entities and individuals based in India.
#Indians received 1700 patents awarded in #India which is about 8x those awarded to #Pakistanis in #Pakistan
"Filing abroad reflects the globalisation of intellectual property (IP) protection and a desire to commercialise technology in foreign markets. The costs of filing abroad can be substantial, so the patents for which applicants seek international protection are likely to confer higher values," quoted the report released by WIPO in Geneva on Monday. Among other factors, technological specialisation, proximity and market size influence cross-border applications, the report highlighted.
https://www.businesstoday.in/current/economy-politics/india-patent-united-nations-un-world-intellectual-property-organisation-wipo/story/297303.html
#Pakistani #startups raised over $341 million of VC #investments in 2018
https://www.techjuice.pk/pakistani-startups-raised-over-317-million-of-investments-in-2018/
2018 has ended, and the Pakistani entrepreneurial ecosystem has yet to witness a unicorn. Yet, the number of investments raised by Pakistani startups in 2018 outdo the previous year.
Pakistan is now gaining traction as one of the emerging ecosystems to currently invest in the Asian region. While local investors continue to struggle to build their investment portfolio, foreign investors are taking the lead to venture into the Pakistani market.
This year, over 40 startups at different stages have closed investment deals out of which 54 percent were women-led businesses. While some of the major deals of the year were raised by a local extension of an international group, it is worth noting that Pakistan is attracting capital as a potential business location.
With the establishment of three venture funds involving international partners such as Sarmayacaar, SparkLabs, and i2i Ventures, 2019 is expected to fuel the local startups with more capital. Meanwhile, let’s look back with TechJuice at the year of investments.
#Pakistan’s First #Blockchain-Based #Remittance Service Launched Using #Alipay’s #Technology. Pak #Telenor and #Malaysia's #fintech firm Valyou offer the service. Service is expected to enhance the #efficiency and #speed of remittances
https://www.ccn.com/pakistans-first-blockchain-based-remittance-service-launched-using-alipays-technology/
A Pakistani financial institution has rolled out a cross-border remittance service based on blockchain technology developed by Alibaba affiliate, Alipay.
Telenor Microfinance Bank and Malaysian fintech firm Valyou have partnered to offer the service to that will operate between Malaysia and Pakistan. The service is expected to enhance the efficiency and speed of remittances from the former to the latter.
Additionally, Pakistan’s first blockchain-based remittance service will eliminate intermediary costs making it cheaper to send money. Users will also be able to track the remittances at ‘every step of the way’, according to a statement.
Lucrative Remittance Market
At the moment, it is estimated that Pakistanis living and working in Malaysia send around $1 billion annually. This is about 5% of the estimated $20 billion in remittances that is sent by the combined Pakistani diaspora spread across the globe. The State Bank of Pakistan’s governor, Tariq Bajwa, noted during the launch of the service that remittances contribute significantly to the country’s economy.
At around USD 20 billion per year, international remittances are important from the perspective of overall macroeconomic stability and their positive spillover in improving lives of millions of families. Home remittances contributed to over 6% in GDP, equivalent to over 50% of our trade deficit, 85% of exports and over one-third of imports during FY 2017-18.
This is not the first time that Alipay is involved in a blockchain-based remittance solution in Asia. Mid last year, Hong Kong-based AlipayHK announced a blockchain-based money transfer service between Hong Kong and the Philippines.
https://twitter.com/CryptoCoinsNews/status/101157117132065177
During the launch of the service the founder of Alibaba, Jack Ma, indicated that he had long wanted to reduce remittance costs between China and Pakistan:
This comes from a promise I made a long time ago when Alipay was just launched. I have friends who are Filipino and they asked me when they could use Alipay to send money home because it was too expensive through banks, which charge too much.
Filipino Remittance Market
Currently, the Philippines is the world’s third-largest remittance market. In 2017, inflows into the Southeast Asian country amounted to approximately $3 billion. A significant proportion of the expatriate community in Hong Kong hails from the Philippines. In 2016, Filipinos in the city-state are estimated to have remitted $561 million to their home country.
Another Chinese firm that recently announced plans to launch a remittance service in the Philippines is Huaren Capital. Unlike Alipay, Huaren Capital will launch a stablecoin pegged to the Filipino Peso and partner with local banks.
Hike shows why super apps don’t work in India the way they do in China
https://qz.com/india/1522956/why-kavin-mittals-hike-could-not-be-chinas-wechat-for-india/
In China, WeChat—a mash-up of WhatsApp, Facebook, Instagram, Yelp, Paypal, Twitter, Uber, Kindle, and more—has become an indispensable part of everyday life for people. The super app provides a long list of services from booking cabs to ordering food delivery to playing games to transferring money, keeping users locked in its ecosystem.
But the creator of India’s popular instant messaging app, Hike, believes this is no China.
Until now, Hike has housed messaging, news updates, digital payments, and cab bookings all under one app-roof. But on Jan. 10, it announced plans to unbundle in 2019.
“In our business the user experience is key and the value isn’t just in the number of users but how engaged they are on our platforms,” said founder and CEO Kavin Bharti Mittal. “Unbundling Hike into multiple apps focused on doing one thing allows us more room in the pixels to deliver much more around one problem.”
Social features like messaging, and content where snackable posts are available, are two segments within the current Hike app that drive high engagement. Users spend upwards of 30 minutes daily in each. Going forward, Hike’s 100 million users will be able to choose between continuing to use the current Hike app or migrating to the specific new apps as they branch off.
Experts think the decision is apt. “India is still in the formative stages when it comes to getting users acquainted to being app-dependent,” said Sanchit Vir Gogia, chief analyst and CEO at Greyhound Research. “Super apps are for more evolved users who have already gone through the learning curve. Hence they do way better in Japan and China, where penetration of smartphones and mobile internet is way better.” In fact, WeChat itself tanked in India.
The move comes eight months after Hike, which began as an instant messenger in 2012, admitted to spreading itself too thin. In the first place, the company didn’t have a clear path to monetisation; acquisitions and employees were weighing heavy on its costs. As part of cleaning up its act, Hike shuttered its Bengaluru office and laid off nearly 25% of its 350-strong workforce in May last year.
STEM schools to be established in Pakistan: Fawad Chaudhry
https://www.thenews.com.pk/latest/488302-stem-schools-to-be-established-in-pakistan-fawad-chaudhry
Chaudhry Fawad Hussain, Federal Minister for Science and Technology, on Friday said that STEM schools would be established in all the districts of Pakistan.
In a meeting with Chairman HEC Tariq Binori, he expressed his unequivocal intent to make the STEM School Project a success in Pakistan.
While describing the roadmap for the implementation of the STEM project, the minister said that initially seven reputed universities of Pakistan would be included in the Project to impart STEM education to the students ranging from grade 6 to grade 10.
According to the Project, each university will be entrusted with the task of imparting STEM education to two schools.
The Federal Minister said that the teaching staff of the selected university for the Project would be given incentives. He further said that the students of the universities participating in the Project would also be asked to be part of the STEM School Project.
While discussing the implementation of plan with the Chairman HEC, he said that a unique syllabus would be formulated which would be in line with the basic modern standards of science education.
Moreover, criteria for selection of schools and of students for the Project would be set. In this regard, the Minister said, National Testing Service (NTS) would be asked to conduct a screening test for the selection of students so that the suitable students who demonstrate the relevant aptitude for science education may adroitly be selected for the Project.
While expressing his views on the scope and extent of the Project, he said that all the provinces would be taken on board for the countywide implementation and accomplishment of the Project.
Tariq Binori, the Chairman HEC, extended his full-fledged support for the success of the Project. He said that the HEC would extend its technical and financial support for the Project.
While expressing his desire for awareness of science education among the people of Pakistan, Chaudhry Fawad revealed that an International Science Conference was being organised on October 17- the birth anniversary of Sir Syed Ahmed Khan- in which scientists and educationists would be invited from across the globe.
The focus of the Conference would be science, technology, education and innovation.
Terra Nova Capital Partners--#European #Investor in #Pakistan #IT company: "...they hire the best IT talent locally, 80% of their revenue comes from overseas thanks to strong client relationships in North America, Germany and the Middle East". #technology https://www.terranovaca.com/a-month-in-pakistan
On the ground, we found most companies in a depressed state due to currency devaluation and struggling domestic economy. However, the exporters are poised to benefit from the devalued rupee, while import substitute businesses take advantage of government policies such as tax subsidies designed to reduce the problematic current account deficit. As a result, we invested in four companies which we believe will do well even in this turbulent time for the economy: three export-related businesses (an IT company, a textile manufacturer, and a hydrogen peroxide producer that supplies textile industry) and a fertilizer business benefiting from import substitution policies.
The IT services company we invested in is a hidden gem that shines from all angles. First, the business stands to benefit from the weak currency: while they hire the best IT talent locally, 80% of their revenue comes from overseas thanks to strong client relationships in North America, Germany and the Middle East. Second, they have grown earnings for many quarters and expect further 15% bottom-line expansion next year. And third, they have built an open-minded, friendly culture: we were impressed that the company’s CFO is female (having women in top positions is rare in Pakistan), there is a gym at the office (with female-only hours), and the employees collaborate, look happy, and smile. This progressive and growing business was trading at only 7x P/E, a bargain compared to its historical levels of around 20x and IT outsourcers in other markets trading at over 30x.
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After many unsuccessful attempts to get a meeting with Pakistan’s finance minister, we decided to simply show up at his office. Getting through security was surprisingly easy, but as we were about to waltz into the minister’s office, a large man summoned us.
The large man was the “Additional Finance Secretary”. We explained that we have been active foreign investors in Pakistan for six years, and had sent five unanswered emails to the minister over the past four weeks requesting a meeting. The man assured us that every email gets printed and placed on his desk so he personally saw every message we sent (though he did not recall seeing any of them). Instead of minister@finance.gov.pk, he said we should send our request to the Yahoo! email address on his official business card (?!) and he would get back to us in a few weeks. As it was apparent he was just trying to get rid of us, we persisted. He finally told us that if we follow him he would take us to shake the minister’s hand and make the appointment.
However, as we were passing by the minister’s door we realized that the man had no intention to stop. Instead, he said he was escorting us out of the building. In a last-ditch effort, we knocked on the door and were about to open it – only to be dragged away by the large man. We later learned that finance minister takes 2-hour afternoon naps in his office, so we hope we didn’t wake him up.
Alibaba extends logistics arm to Pakistan for e-commerce unit Daraz | TechCrunch
https://techcrunch.com/2022/06/17/alibaba-logistics-arm-pakistan-daraz/
Cainiao, the logistics service operated by Alibaba, is launching two automated distribution centers in Karachi and Lahore as its first entry into Pakistan, it announced on Friday.
Alibaba’s overseas expansion has manifested in a mix of investment and integration over the past decade. In 2018, the e-commerce titan boughtPakistan’s e-commerce platform Daraz for an undisclosed amount. It controls the online shopping service Lazada, which is neck to neck with Shopee in Southeast Asia, and owns a stake in Turkey’s Trendyol as well as Indonesia’s Tokopedia.
Founded in 2012, Daraz was born out of the internet venture builder Rocket Internet like its sibling Lazada. It delivers to Pakistan, Bangladesh, Sri Lanka, Nepal, Myanmar and other countries in the region. Daraz declined to disclose how many active users it has, only saying it has “served a potential user base of 500 million people” and grew 85% in gross merchandise volume (rough metric for sales in e-commerce) over the last two years.
The smart distribution centers will come with a suite of Cainiao’s in-house tech like electric control units, software-based programmable logic controllers (PLC is critical for warehouse automation but traditionally is hardware-powered, Caniao told TechCrunch) and a computing solution that promises to combine the capabilities of cloud and the speedy runtime on the edge.
The suite of warehousing solutions, said Cainiao, could reduce manual labor by half and increase human productivity by 100%.
Given Alibaba’s far-reaching footstep worldwide, it won’t be surprising to see Cainiao following the parent into more countries. Cainiao already operates nine large overseas distribution centers across Europe, Asia and the Americas and has plans to ramp up operations in Southeast Asia, South Asia and Europe, the company’s vice president of technology Ding Hongwei said in a statement.
Integrating Cainiao into Alibaba’s sprawling e-commerce portfolio indeed looks to be the plan.
“Logistic network development is a priority in our globalization strategy as logistics is the fundamental infrastructure supporting a high-quality consumer experience based on integrated product supply from cross-border and locally,” Daniel Zhang, CEO of Alibaba, said on the firm’s December earnings call.
“Cainiao has been developing logistic network in Southeast Asia and Europe, leveraging the commerce use cases presented by Lazada, AliExpress, and the Trendyol.”
AliExpress is Alibaba’s cross-border e-commerce platform that mostly connects Chinese sellers to global consumers.
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