Economic conditions overshadow Pakistan Auto Show

on 03/04/2020

Annual Pakistan International Auto Show 2020 earlier called Pakistan Auto Parts Show (PAPS) or Pakistan Auto Show concludes on Sunday, February 23, 2020, after a three days presentation at Expo Centre Lahore with barely any representation from other large industrial cities like Karachi, Hub, and Islamabad.
The tough economic situation forced already struggling automotive vendors to stay away from once a glamorous showcase of their capabilities and strengths.
Interesting things found at the show include:
• Launch of a new brand of vehicles in Pakistani market i.e. BIAC by Sazgar with three new models D20, D25 and X25
• Showstopper presentation of robotic welding machine
• Showstopper demonstration of a yellow-colored Suzuki Jimny upon difficult stony terrain along with Suzuki’s Dirt Bike
• Showstopper display of a 6000 cc black hummer Pickup by pakwheels.com
• Hyundai launch of Grand Starex and Tucson
The automotive industry, considered as a backbone of any industrial based economy and a stepping stone for developing economics had been facing severe crises for the last two years, this show has happened between the times when companies are going for shift cuts, production shut downs and labor lay offs.
Unsurprisingly brands like Toyota and Hino chose not to participate in the show so did the group companies by House of Habib which were a regular participant with various sister concerns including Toyota Indus Motors, Agri auto, Auvitronics, Thal Engineering, Thal Boshoku, etc.
Auto parts giants like General Tyres & Rubber, Super Groups of Industries, many Atlas group companies like Atlas Engineering, Atlas Auto Parts, Atlas Hi-Tech, and Atlas Metals were absent. Many others who participated chose to keep a low profile in order to keep the participation costs down.
For some previous years, there had been overwhelming participation turned up to occupying around two-third of the spaces by Chinese exporters it was nearly zero this time. A lot of emerging three-wheeler, motorcycle and their parts manufacturers, importers and distributors just to name a few, Crown Group, Future, ISH, N. J. Autos, Rastgar Group, Unique, etc. that have been sponsoring the event in past and displaying their products with innovative ideas could not be found anywhere in this exhibition. Besides Atlas Honda Limited, two and three-wheeler manufacturers were like evaporated.
There were quite a many university and training institutes who exhibited their capabilities and projects including National University of Science & Technology, University of Engineering & Technology Lahore, University of Lahore, COMSATS, Bahria University, PITAC, TUSDEC and a teaching manufacturing facility Karachi Tools, Dies & Molds Company (KTDMC) besides some private training firms. Time will tell whether it’s a result of improved industry-academia linkage the business community and educational institutes have started realizing the importance of or rather empty stands got occupied by economy-ridden participants to fill out the spaces.
An interesting gallery was dedicated to artisans showcasing their sculpture making talent using used auto parts

Made in Pakistan

on 03/04/2020

Pakistan is passing through a challenging situation, apart from political challenges, economic challenges are very big for the government and people.
During the last few fiscal years, our imports were increasing and exports were decreasing. It is alarming that the industrial base is shirking as reduction of electricity consumption by
industries in the last several years.
Slowly and quietly, we became a consumption society for all the foreign goods from a bar of chocolate to big machines. The local industrial contributions in GDP is being reduced in last many years. The local industries were being closed due to a non-competitive environment. They were unable to compete with imported goods. The effects were, well known. That is unemployment and a serious balance of payment issues. We have to borrow dollars from every corner of the world.
The present government has taken some difficult decisions to recover the bad situation. We have to take more such steps at all level in the government to facilitate the use of indigenous
technology and equipment before it is too late.
All the state organs of the country such s government, bureaucracy, the establishment, and the civil society must support the initiative of “Made in Pakistan”, and take every small and big step to encourage the use of locally made components, products, machines, equipment as well as hiring of local consultant for the projects, etc.
“Made in Pakistan” means all of us should use and encourage locally produce goods. All our policies should be focused on reviving our engineering goods industries to produce locally
manufactured product.
The present government of Pakistan is continuously taking initiative for “ease of doing business” encouraging various sectors of industries for investment, as well as the revival of sick units.
The government has set a big export target for 2025. To achieve the target, our major contributors are the textile sector. These textile sector industries need investment to increase their capacity.
Similarly, there is also discussion that by 2030 the energy mix shall be changed to 30 percent from present less than 1 percent to renewable in particular clean energy (solar and wind).
We are using about 1 million air conditioners every year. The quantity may touch 1.3 to 1.5 million in the next 3 to 5 years.
The following are some opportunities to focus on “Made in Pakistan”.
The various component of air conditioners like air-compressors, refrigerator gases, refillable cylinders, copper pipe, and fittings, etc. are being imported which can be manufactured locally.
The local textile and engineering industries should find ways and means to motivate some of the international textile machine manufacturers to start assembly/manufacturing in Pakistan through joint ventures. Initially, these machines can be imported in the SKD condition and later on in CKD condition. This shall save foreign exchange and shall create new job opportunities. The textile sector is the main driver in the export of goods, and a little step shall be a benchmark as well
as a role model for other industries to produce locally made components, equipment, and machines.
The renewable energy sector also needs to focus on Made in Pakistan initiative. The GOP should focus its attention on the local manufactures of renewable energy components like
use of concrete turbine tower, fan blades, and other related balance of plant equipment.
Electrical vehicle and related equipment
• Buses being used in mass transport (Green Line, etc.)
• The Federal and all Provincial governments and arm forces departments must encourage purchasing of Made in Pakistan products and equipment.
The private entrepreneur always took the various initiatives in developing a locally indigenous solution which saves a huge amount of foreign exchange e.g. cleaning and washing of windmill blade during operations.
The universities in Pakistan have to be involved in the economic process to address various economic challenges. The joint venture initiative between private sector industries and
foreign manufacturers industries must be encouraged as a policy guideline which is a very successful model adopted by China and Malaysia. Encouraging the establishment of new
industries as well as revival sick units through joint venture initiative shall help in resolving quality issues, transfer of technology and skill development locally.
Actions suggested
• GOP long term (10 – 15 years) policy emphasizing on local manufacturing
• More initiative for “Ease of Doing Business” from Federal, Provincial and City Governments
• The incentive for new foreign and local investment in engineering goods manufacturing industries established in any part of Pakistan
• More initiative in the reduction of “Cost of Doing Business” (e.g. reduction in utility charges, etc.)
• To provide an enabling environment for the local engineering goods manufacturers & services
Improvement in IR law to meet 21st-century challenges
• Focus on enhancement in productivity at all levels
• Supporting attitude towards local manufacturing by all government organization/department
• Implementing SRO 827 in Public Sector procurement vigorously
• On job training to fresh engineers
• Implementation of apprentice scheme for the development of shop floor skilled manpower

IEEE Karachi Chapter organizes ‘Power Isolation’ seminar

on 03/04/2020

IEEE PES Chapter Karachi organized a technical Seminar—the first activity of the year 2020.
Participated by 50 engineers, it was a one-day session with the title “Power Isolation”.
The speaker of the seminar was “Muhammad Ghayas Gillani”. The program was started with the recitation of the Holy Quran by Secretary PES Mr. Imran Zafar.
He welcomed the participants and shared with them that PES is conducting a technical seminar every month aimed at spreading awareness and knowledge on the newest electrical practices in the industry.
The session covered topics both from academic research and practical field cases. He also informed the participants of a multi-topic seminar by PES scheduled tentatively in November 2020.
Appreciating keen interest and participation from the engineering community, Engr. Tahir Salim, Chairman PES applauded the presence of Young engineers.
He introduced to the audience the topic “Power Isolation” saying that many industries still are not implementing proper power isolation practices.
He believed that this session will help participants to understand and implement power isolation techniques in their organizations.
Engr. Ghayas Gillani who has 25 years of experience with the AKUH explained this technical and complicated topic in a very simple manner.
Using multimedia slides as well as animated videos, he talked about the consequences of neglecting power Isolation.
Young engineers took keen interest and asked questions to understand the theoretical concept while the veteran engineers present in the session shared their professional experiences to enrich the session.
A certificate of appreciation from United Engineering Services was presented to Speaker by Guest of Honor, Dr. Tariq Soomro

IEEEP and ‘Make in Pakistan’

on 03/04/2020

Institution of Electrical and Electronics Engineers Pakistan (IEEEP) had a successful show, at least, in terms of thought—‘Make in Pakistan’, a long-awaited dream yet to come true in a country where ruling psyche runs against this objective.
The institution’s 34th symposium held on February 26 and 27 offered a platform to the engineers to reiterate their resolve to work for advocating the policies that support local initiatives in Pakistan.
Engr. Irfan Ahmed, Chairman IEEEP Karachi Chapter says they focused on local manufacturing in Pakistan as to how, to begin with, this process and also rejuvenate local industry in Pakistan.
Although the moot was packed with a sense of boosting and recommending local manufacturing in Pakistan, PTI’s Senior Vice President Engr. Arshad Dad Arshad who graced the event in the inaugural session knew the issues in the implementation stage. He said the recommendations of such moots had not been attracting appropriate attention in the country, however, he said the PTI government would discourage it and move on to the recommendations of the engineers.
Engr. Dad made a commitment to play a proactive role in achieving the objectives the moot was supposed to set in Pakistan in terms of local manufacturing. Engr. Irfan also confirmed he had been helpful in this respect.
The symposium brought in light major issues in terms of Renewables Policy in Pakistan and the affairs of making Electric Vehicles in Pakistan.
There are reports that Pakistan’s two ministries—the Ministry of Environment and the Ministry of Production—are at loggerheads as regards the EVs policy. Engr. Irfan confirmed it saying they had shown us dreams that EVs would be made locally but, in fact, they wanted to import it.
Since the committee constituted in such respects is mostly comprised of conventional carmakers, they would not let it affect their business. ‘We want EVs that would be locally made as they would create jobs and save our foreign exchange’, Engr. Ahmed said.

Renewable projects receive a severe blow

on 03/04/2020

Pakistan’s renewable power projects have received a severe blow due to the government’s failure to pursue Energy Policy 2006 discouraging future potential investors in the country.
About two dozen renewable energy projects are in a sleep mode as the National Transmission Despatch Company (NTDC) has stopped evacuating power pushing these projects into a state of uncertainty.
Unlike thermal power projects, these projects are not knitted in capacity charges of 17 percent in power purchase agreements. However, they are supposed to get charges on 13 percent of the total capacity that is also connected with the generation of units. If the power project is in sleep mode, it means it would get nothing on such an account, sources say. As a result, all renewable energy initiatives that successive governments would claim are supporting to is doomed to be a failure.
An official privy to these affairs says if the government fails to evacuate power as per the agreement, it is liable to pay penalty to the power producers. Also connected is a drawback for the governments in this case as the government is supposed to pay to the power producers the amount with an interest rate of 13 percent if it delays in payments. All this adds to circular debt, he says.
In the current circumstances, it is almost impossible for renewable power producers to sustain in the country, says an official.
Along with these power projects, there are yet another 12 wind projects which are under construction in Jhimpir (Sindh) have been stopped by NTDC notifying ‘Force Majeure Event’ as a consequence of Coronavirus Outbreak in China.
National Transmission and Despatch Company (NTDC) has stopped evacuation of power from Wind Power Projects (WPPs) in Jhimpir, Wind Cluster. The evacuation month for these power projects is June 2021.
Interestingly enough, no other works in the country on which Chinese companies are working have been affected in the wake of the Coronavirus Outbreak. These works include being executed by WAPDA and other federal organizations.
The company has notified Force Majeure Event’ as a consequence of Coronavirus Outbreak for the evacuation of power from Wind Power Projects (WPPs) in Jhimpir, Thatta in Sindh.