Honesty pays off because it is a rare commodity: Engr. Syed M. Ali Aamir

on 13/11/2024

CEO, SEM Engineers says in an interview with Engineering Review: we should not only look to the government for solutions; we should look at ourselves as well

Pakistan’s economy, and its direction

I have been in this field for over 40 years and have witnessed both good and bad times. My first project was with the Karachi Development Authority (KDA). There were very good people managing the institutions and the economy back then. However, degeneration started at all levels, and this continues to this day. We do not know when or where it will end.

Policymaking in Pakistan

As far as the country’s policies are concerned, it all depends on the policymakers and their level of discipline. We cannot develop our country unless we create policies that regulate business and commerce. We must understand how to conduct business activities and how to manage them systematically. We talk about manufacturing goods in Pakistan, but if you look at the standard of the products we produce, it is concerning. Who will trust locally made products if people consistently receive low-quality items? There exists a trust gap, and there is a background to this issue. Local manufacturers often focus solely on competing on price and ignore the importance of quality. For example, many manufacturing companies that make pipes produce substandard products.

Governments should regulate the industry to ensure quality standards are met, or things will never change.

How the Decline in Quality Started

I have witnessed both General Ayub Khan’s and Z.A. Bhutto’s administrations. During those days, there were the so-called “22 families,” and they were all patriotic. They produced goods out of their love for Pakistan. These individuals took education seriously and wanted our children to receive a proper education. What happened later? Everything was privatized, and it damaged everything; no one considered the potential outcomes.

Economic Revival

I believe we should not only look to the government for solutions; we should look at ourselves as well. We must think like Pakistanis and love our country. We should appreciate those among our fellow countrymen who demonstrate capabilities and contribute positively to the nation. Loving our country is equivalent to loving ourselves, as we are all from this land.

Middle Eastern Boom and Exports

We must export our products, but we should be mindful that if any substandard product is exported, it will harm our reputation. Importers have many choices and don’t always test your products. We should never do anything that tarnishes our credibility. Our companies may want to work abroad, but it’s not always easy. The successful companies abroad have efficient systems in place, and we must be part of that system.

ACEP and PEC Role

Companies must take the initiative themselves and get registered with relevant bodies. Unfortunately, the reputation of our country is not strong, and people abroad find it hard to place trust in Pakistanis. First, we need to regain trust by taking on small projects, and once we prove ourselves, we can move on to larger ones.

Safety and Investment

We are working on several projects, and more are coming, by the grace of God. We expect things to improve, but government policies need to be revised. One of the biggest issues is that investors do not feel safe here. Many businessmen from Karachi have invested their money in Dubai and elsewhere in the Middle East.

About SEM Engineers

I founded my company in 1983 with the objective of contributing to the improvement of this country. I completed my MS in the U.S. and returned to Pakistan. We began working on projects using scientific calculations that demonstrated our designs were both efficient and economical. By the grace of God, we have completed many successful projects, and it has changed my life. I learned here how my honesty paid off because it is a rare commodity, and it holds value.

Future Plans

Our goal is to serve the country. We prefer to undertake projects that enhance our credibility and bring distinction. We take ownership of our projects because we have completed them with honesty, and we will continue to do so. We are also exploring opportunities abroad.

— Mohammad Salahuddin

Rethinking Globalization for the Modern Era

on 11/11/2024

Globalization, a process that has reshaped economies and societies over decades, is now at a crossroads. The concept that once symbolized seamless international integration has come under scrutiny as nations grapple with new challenges and shifting priorities. The modern era demands an updated understanding of globalization, one that reflects the complexities of the current geopolitical and economic landscape.

In its early phases, globalization was driven by the pursuit of open markets, cross-border trade, and the movement of capital, goods, and services without significant barriers. It led to unprecedented growth and interconnectedness, lifting millions out of poverty and sparking innovation. However, this unbridled globalization also exposed vulnerabilities, such as economic dependency and the rapid spread of crises. The recent trend has seen a rise in strategic nationalism, where countries prioritize domestic resilience and self-sufficiency over extensive global integration. This shift was accelerated by events like the COVID-19 pandemic, which underscored the fragility of global supply chains and prompted countries to rethink their reliance on external sources.

Technological advancements are redefining globalization. Digital transformation has enabled global communication and commerce on an unprecedented scale, allowing businesses to operate and reach markets anywhere. However, it also presents new challenges, including cybersecurity risks and digital inequality. The future of globalization will likely hinge on how nations navigate the balance between open global collaboration and protecting their technological sovereignty. Emerging technologies such as artificial intelligence and quantum computing have become areas of strategic competition, further complicating the narrative of global interdependence.

A modern take on globalization must also incorporate climate change and sustainability. The shared global threat of environmental degradation has shifted priorities, prompting nations to collaborate on climate initiatives while balancing economic interests. Policies that foster sustainable globalization—such as green trade practices and international environmental accords—are crucial for a resilient global economy.

Updating globalization requires a nuanced approach that balances openness with strategic safeguards. Policymakers and leaders must forge frameworks that promote equitable growth, technological cooperation, and environmental responsibility while safeguarding national interests. By rethinking the global model to address today’s realities, a more inclusive and sustainable form of globalization can emerge, benefiting both economies and societies worldwide.

CCP Recommends Privatization or PPP Model for Distribution Companies to Improve Efficiency

on 11/11/2024

The Competition Commission of Pakistan (CCP) has advised the government to consider either the privatization or the implementation of public-private partnerships (PPPs) for the country’s power distribution companies (DISCOs). This recommendation comes as part of ongoing efforts to enhance operational efficiency and financial sustainability within the power sector.

Addressing Financial and Operational Challenges
DISCOs in Pakistan have long struggled with inefficiencies, including high line losses, billing issues, and financial mismanagement, which contribute to the sector’s mounting debt. The CCP suggests that transferring management control to private entities or creating joint ventures under the PPP model could help address these persistent challenges. By leveraging the expertise and resources of private sector partners, DISCOs could benefit from improved operational strategies and enhanced service delivery.

Potential Benefits of Privatization and PPPs
The CCP highlights that privatization or PPP arrangements could lead to better infrastructure investment, more efficient energy distribution, and enhanced customer service. Countries that have adopted similar models have seen marked improvements in the performance and sustainability of their power sectors. Additionally, involving private entities could incentivize innovation and competition, fostering a more responsive and robust energy market.

Government Consideration and Next Steps
The government is urged to explore these models with caution, ensuring a transparent process that safeguards public interest and maintains regulatory oversight. The CCP’s recommendation aligns with broader policy goals aimed at revitalizing the power sector and reducing its fiscal burden on the national budget.

As Pakistan faces ongoing energy challenges, adopting new strategies such as privatization or public-private partnerships may provide a pathway toward a more reliable and efficient power distribution system.

MSCI Adds Eight Pakistani Companies to Small-Cap Index, Removes TRG Pakistan from Frontier Market Indexes:

on 07/11/2024

The MSCI (Morgan Stanley Capital International) has announced updates to its global indexes, impacting several Pakistani companies. In its recent review, MSCI included eight Pakistani firms in its Small-Cap Index while removing TRG Pakistan Limited from its Frontier Market Indexes.

Additions to the MSCI Small-Cap Index

The following Pakistani companies have been added to the MSCI Small-Cap Index, which could enhance their visibility among global investors and potentially attract foreign investment:

  1. Engro Polymer & Chemicals Limited
  2. K-Electric Limited
  3. National Bank of Pakistan
  4. Netsol Technologies Limited
  5. Searle Company Limited
  6. Systems Limited
  7. TPL Properties Limited
  8. United Bank Limited

The inclusion of these firms reflects their growing market capitalization and relevance within Pakistan’s economic landscape. This move is expected to boost investor confidence and provide these companies with greater access to international capital markets.

Removal of TRG Pakistan from Frontier Market Indexes

Conversely, TRG Pakistan Limited has been removed from MSCI’s Frontier Market Indexes. The removal follows MSCI’s evaluation criteria, which consider factors like market capitalization and liquidity. This change could impact TRG’s visibility among global investors and may influence the company’s stock performance in the short term.

Implications for Pakistan’s Market

These adjustments by MSCI highlight the evolving nature of Pakistan’s stock market. The addition of eight companies to the Small-Cap Index could provide a boost to the local market by drawing attention from international investors. However, the removal of TRG Pakistan underscores the challenges some firms face in maintaining their standing within global indexes.

Overall, these changes reflect a dynamic investment landscape where Pakistani companies continue to adapt and compete on the international stage.

Hubco Plans Nationwide EV Charging Network to Boost Pakistan’s Electric Vehicle Adoption

on 31/10/2024

The Hub Power Company (Hubco) has announced plans to establish a countrywide electric vehicle (EV) charging network in Pakistan, marking a significant step toward promoting sustainable transportation. This initiative aims to address the need for accessible charging infrastructure, which has been a barrier to EV adoption in the country.

Expanding EV Infrastructure to Support Green Mobility

Hubco’s plan involves strategically placing charging stations across major cities and highways, making EV charging more accessible for both urban and long-distance travelers. By focusing on an extensive network, Hubco hopes to support Pakistan’s transition to cleaner transportation, aligning with global trends to reduce carbon emissions and combat climate change.

Accelerating EV Adoption in Pakistan

Currently, the limited availability of charging stations has deterred many potential EV buyers. Hubco’s investment in this infrastructure is expected to foster greater consumer confidence in electric vehicles, helping drive adoption across the country. This move is also likely to encourage other stakeholders and investors to participate in Pakistan’s emerging EV ecosystem.

Collaboration with Government and Private Sector

For this ambitious project, Hubco plans to collaborate with government agencies and private partners to streamline regulatory approvals and optimize the station setup process. By leveraging such partnerships, Hubco aims to expedite the installation process and ensure a seamless experience for EV users.

Contributing to Pakistan’s Clean Energy Goals

As part of its broader commitment to sustainable energy, Hubco’s EV charging network aligns with Pakistan’s national goals to reduce reliance on fossil fuels and increase the use of renewable energy. By building this infrastructure, Hubco not only positions itself as a leader in the EV charging sector but also contributes to Pakistan’s journey toward a cleaner, greener future.