Pakistan industry needs a comprehensive stimulus package

on 09/07/2020

Pakistan’s industry requires a comprehensive stimulus package as the government measures which, of course, helped the industry to some extent will fall short of the needs for the current situation, says Kamal Mian, the Director of Fast Cables in an interview with ER.
The measures taken by the federal government in terms of rescheduling of funds and salaries-support helped to delay the immediate impact of the Covid-19 pandemic for the formal sector. This is a positive thing. It is because of this reason businesses are still working. It created a space for the industry to meet both ends.
In the informal sector, the impact is bigger as it is difficult and also we are lacking the capacity for intervention.
Were these measures enough or you think it could be much better?
It could be much better of course. The challenge that the private sector is facing is that the State Bank of Pakistan (SBP) did not touch the cost of rescheduling of nonperforming loans of the banks. Now the businesses which cannot survive after rescheduling will suffer as they did not get any new relief. These businesses would have to pay for rescheduling for a year and also do not have the working capital to continue the business. The banks should have thought about it. It is like the banks are partners in good times only. They must understand that the losses of these businesses are ultimately to affect the banking sector as well as the economy. Thus, these businesses should be extended with support so that they meet the challenge. Also, the cost of rescheduling should be minimized.
Does it mean it was like a half-hearted effort?
Let me add to it, that the pandemic peak may be in August, it means the next three months would be tougher like the previous quarter. Thus, more measures are to be taken and it is a must. It must be kept in mind that if the customers would survive then only the banks will survive and ultimately the national economy. The banks should review their measures keeping in view the gravity of the situation. This is an extraordinary time.
Quite a few things must be done by the government. I think the purchasing power of the people has come down naturally and it will affect industry and business and commerce activity. Therefore, we need to announce a stimulus package. Under this, the government should make their spending more efficient. Our government should focus on this also. In our country, the companies which are working with the government on various projects are getting slow payments. The government should make faster payments instead the government systems have slowed down which is not good.
There is no slowdown in the world in terms of working. We have requested the government already. We have to expedite the work, pass the bills of the companies so that a stimulus be created from the demand side.
Challenges before Fast Cables
The biggest one is how to get payments. It is a must for survival. Cash flow is necessary.
Then we have to see how to move when there is a drop in business. In this situation either you have to cut the costs or get more business but we know the business has decreased. Thus, it was a huge challenge for us how to manage the cost with a drop in recoveries. We used the employees salaries scheme to retain the workforce which is like our family. Unfortunately, the governments projects got slow that should not have happened. It created a backlog. Moreover, ban on transportation affected our deliveries.
Budget 2020-21
There are no basic things in the budget. It is a kind of consensus that the targets are unrealistic as how you can generate revenue in this situation. Innovation has always been our problem in the budget making process. The budget makers see it as an assignment. There must be a debate before the process.
What we need is to target business so that activity is generated. Look at the past three years, we did not achieve anything despite not having pandemic situation.
But one good thing that we see since the last two years that the government has increased the cost of imports and moved on to encouraging the local industry

Naveena Steel being launched at Port Qasim

on 09/07/2020

Naveena Group, a conglomerate dealing in textile exports, spinning, wind power and other business sectors announced the launch of Naveena Steel – a green field plant located at Port Qasim, Karachi.
Naveena Steel is introducing its Italian plant with Pakistan’s first induction heating system using the revolutionary Direct Rolling Technology to consistently produce international standard pure steel rebars for all types of construction. Given the growing consumer needs and an effort to bring innovation to the nation’s evolving skyline, Pakistan is entering an era of modern construction ideas based on global standards. This new era requires expertise, modern technology, quality and precision that complies with American Society for Test and Materials to give solidity and strength to the foundations it is being built upon.
With a focused vision and an innovative approach- Naveena Steel is here to set a new benchmark for quality and trust that gives rise to innovative planning, new-age architectural ideas, and designs adding new strength to the country’s growth and prosperity

Energy Audits for Industries and Commercial Buildings

on 09/07/2020

Pakistan is an emerging economy with a growing number of different industries across the country. The increasing industries provide job opportunities, stability to the economy and raise in the Gross Domestic Product. On the other side, these industries demand an uninterrupted power supply to meet production targets.
According to the Pakistan Energy Year Book (2018), Industries consume 37.46% of the total energy consumption of Pakistan which is the highest among the other sectors. To reduce energy demand, one of the effective methodologies is to conduct energy audit of the industry. The Energy Audit is the process of evaluating the losses in the industry or building due to inefficient equipment and machinery, unjustified load management, and inadequate energy consumption practices. The Energy Audits are conducted under the guidelines of ISO 50002 Standards.
Objectives of Energy Audit
The main objectives of the conduction of energy audits include:
To reduce energy consumption, reduce emissions and equip the entity with state of the art efficient devices. The overall implementation of Energy Management System Implementation under the light of ISO 50001 standards.
Development of a self-sustainable system of continuous improvement of the energy performance
Development of key performance indicators to access the annual energy consumption performance of the port.
Introducing green procurement policy for each every organization working within the premises of the port
Induction of renewable energy resources where ever applicable
Deputing workforce and energy managers for measurement, monitoring and implementation of energy management rules
Utilization of different communication means such as posters, emails, banners and seminars etc. for providing awareness to the working entities for implementation of energy management within the port.
Potential Industries and Commercial Buildings for Energy Audits
Industries
• Textile Sector
• Cement Industry
• Food processing Industry
• Sugar Industry
• Fertilizer Industry
Commercial Buildings
• Hospitals
• Universities
• Offices
• Banks
• Shopping Malls
Process of Energy Audits
The process of Energy audit includes Walk-through audits and detailed audit. The walk-through energy audit helps in identifying the energy wastage, inefficient equipment operating and losses in the overall system. The detailed audit quantitatively evaluates the energy losses. The detailed energy audit includes HVAC energy audits, Electrical, Compression systems, etc.
Expected Outputs after Energy Audits
The expected outputs after conducting the energy audits include savings of million rupees on an annual basis if the recommendations in the energy audit reports are followed properly. (The author is Master Trainer Energy Audits and Head of Department Energy Research Center fawadazeem@cuilahore.edu.pk drsobia@cuilahore.edu.pk)

NED University designs, fabricates commercial ventilator!

on 09/07/2020

Although it cannot be the replacement of physical interaction, going online was the only option available for the universities in Pakistan, says Dr. Sarosh H Lodhi. NED University is running online classes successfully since the pandemic forced the institutions to stay home.
Dr Lodhi said they knew the issues associated with online classes such as connectivity and availability of electricity but still it was a successful process so far. NED has adopted a hybrid system for undergraduate classes and lectures are recorded coupled with live sessions. Our interaction with the students has been wonderful.
Since we are an engineering institution, we, of course, need laboratory support too. Thus we have allocated 5 weeks for practicals which we will either do in smaller groups keeping in view SOPs for the pandemic or go online again.
Moreover, examinations are also a challenge and we are experimenting with how to do it as we are examining the models being used around the world.
Keeping in view the financial crunch of the students, Dr Lodhi said the university had decided to reduce 20 percent in semester fees from the next semester. Also, we are reaching out to our alumni for more scholarships for the students. We have been targeting 1500 to 1600 students for scholarships which now we intend to increase to at least 3000.
Dr Sarosh Lodhi had another success to share with during the interview believing the university has played its due role in the context of the pandemic. He revealed that NED has designed the Sindh government’s COVID 19 database and is also managing it. The university did the modeling of that data as well.
He said the university also repaired damaged ventilators for the government and all that was free of cost.
Most importantly, he said Dr. Riazuddin of NED University designed and fabricated a commercial ventilator. All of its tests have been conducted except the clinical one. Now it will go for DRAP certification and, meanwhile, the PEC has asked to prepare for the manufacturing of the ventilator.
Yet another part that we played was designing of Sindh Assembly’s online session which was held recently for the new budget, reveals Dr Lodhi. This experience has developed our capacity which will be put in use in many respects.
As regards the Thar Campus of NED University, Dr Lodhi said the Sindh government has allotted 300 acres of land for constructing our building and a grant of Rs1.75. He expressed hope that they would start the construction by the third quarter of this year.

Pakistan to focus on engineering sector for import substitution!

on 09/07/2020

Abdul Razak Dawood, the Advisor to the Prime Minister has said that pursue the policy of ‘Make in Pakistan’ diligently is the need of the hour, and moving towards industrialization is a must for substituting the imports and enhancing our exports.
Meeting with a joint delegation of Chambers of Commerce and Industry at Ministry of Commerce Dawood said the government was focusing the engineering industry for boosting exports.
The moot was attended by the representatives of Islamabad, Rawalpindi, Lahore, Gujranwala, Faisalabad, Gujrat, Multan, and Mirpur chambers.
Dawood believed tariffs needed to be rationalized to achieve the objectives of ‘Make in Pakistan’ saying that due to COVID-19 situation and to address its impact on the economy, some of the sectors have not been considered for the tariff rationalization, while some important sectors have been given benefits.
He reiterated that the anomalies arising out of the budget have been addressed to a large extent while others will be resolved in consultation with the stakeholders.
Talking about the government’s plans, the Advisor told the delegation that the Government is following a three-year plan, gradually removing duties and tariffs, particularly on raw materials for the industry.
He added that the Government will put a special focus on engineering sector to boost the exports, including power sector equipment, the auto industry (auto parts, Two-wheelers, Three wheelers, and tractors), home appliances, mobile phones, sanitary ceramics ware, utensils & cutlery, and pumps & motors.
Mr. Dawood assured that the Government has taken important policy decisions in this regard and the engineering sector exports would considerably improve in the Fiscal Year 2020-21.
Discussing different opportunities for the production of value-added products and their export, the Advisor underlined the importance of investing in certifications and laboratories, particularly for exploiting the potential in the food processing sector.
The Advisor also informed that the Ministry is resolving issues of the exporters on priority particularly for the export of Personal Protective Equipment.
He reassured that export of all items, i.e. hand sanitizer, disposable gowns and gloves, face shields, biohazard bags, goggles and shoe covers made from various classes of materials, including woven and non-woven chlorinated polyethylene (CPE), Polypropylene (PP), spun bond and melt blown except N-95 masks, surgical masks, and Tyvek suits.
He reaffirmed that the Ministry is cognizant of the problems which are being discussed at the appropriate forums with the relevant stakeholders for early resolution