Tag Archives: Pakistan

Free trade with China may Dampen Investment in SEZs?

on 01/06/2018

Pakistani Manufacturers start selling Chinese-made products with ‘Made in Pakistan’ tags!

Beijing’s push for further trade liberalization under second phase of the Pakistan-China free trade agreement (FTA) may severely dampen prospects of Chinese investment in prioritized special economic zones (SEZs) being set up under  (CPEC).

It would be convenient and cheaper for Chinese companies to manufacture in China and import products into Pakistan at zero duties, which would render the SEZs useless, officials in the Board of Investment (BOI) fear.This will also dash Pakistan’s hopes of starting a new wave of industrialization as almost 60% of the national output is contributed by the services sector which is not job-oriented. This means Pakistan is en route to becoming a trading nation.

Another worrisome aspect of the proposed second phase of the FTA, called FTA-II, is that it is shrouded in secrecy. Both Federal Board of Revenue (FBR) and the BOI were not aware of the tariff lines on which the commerce ministry wanted to slash duties to zero.

The timing of the FTA-II is also a matter of concern for some government agencies as Pakistan is not yet ready for further open trade due to a lack of product diversification and high cost of doing business.The Commerce Ministry says it will not sign the FTA unless every stakeholder is on board including the BOI and FBR.

Prime Minister Shahid Khaqan Abbasi will visit Beijing next month and the government intends to sign the expanded FTA with China. Pakistan has reportedly agreed to offer zero duties on 75% of tariff lines, which constitute roughly 5,340 out of total 7,120 tariff lines. About 35% of tariff lines were already subjected to zero duties, which have caused huge losses to the domestic industries.

It was unearthed in a meeting of the Senate Standing Committee on Finance that Pakistani manufacturers have even started importing goods from China and selling them as ‘Made in Pakistan’ products by placing their stamps on them.The FBR is concerned that the proposed 75% reduction in customs duty will adversely hit its revenues. However, the government said it did not care about the revenue loss because the FTA-II would help increase Pakistan’s exports to China from the current $1.5 billion to $9 billion. – ER Monitoring Desk

International HVACR Expo set to Create New Trends

on 16/04/2018

 

Over 120 companies display 1000 plus products, brands

The 25th edition of HVACR Expo is being held on April 5 – 7, 2018 in Islamabad. The event is supported by 16 related trade and engineering bodies from Pakistan and abroad.

Expected to be the most successful among all previously-held expos, the venue of the event is Jinnah Convention Centre.  The event, organizers say is to witness a direct participation of over 120 companies from Pakistan, Germany, Turkey, China, Malaysia, UAE and Korea who will display over 1000 products and brands. Over 15,000 visitors are being expected for the event.

Pakistan HVACR Expo is going to be truly an international meeting place for professionals and is anticipated to be attracting serious buyers from all over the country and abroad. The event provides an easy and essential route into the market for exhibitors, enabling professionals from across the industry to develop their business in a professional environment.

Pakistan HVACR Expo is the most significant event of Pakistan HVACR Society, conducted on rotational basis at Islamabad, Lahore and Karachi. This is the only and largest trade fair in Pakistan which is exclusively dedicated for displaying latest and innovative Heating, Ventilation, Air-Conditioning, Refrigeration and allied sectors’ technology and products.

In the event, renowned international speakers will also give their talk besides a HVACR students’ completion planned to encourage students of related fields.  The exhibition, spread over 121,000 square feet will have a B2B meeting area. International conferences, seminars, product presentations.

With the conference theme as “Conserve Energy for better Future”, this mega event will bring together national and international distinguished speakers, business entrepreneurs, government officials, consultants, contractors, equipment suppliers, scholars, from related fields/industry at one forum.

Key Topics of the conference

Energy: renewable, efficiency, audit conservation

Innovative building materials & construction methods

New HVACR technologies, designs and equipment

Air distribution, quality and equipment

District cooling & thermal storage

Refrigerants

Any relating innovative technology, procedure and best practices

Governmental policies, protocols, procedures, relating to HVACR Industry

 

Karachi Needs US$10 billion to Become Livable

on 01/04/2018

‘Transforming Karachi into a Livable and Competitive Megacity’

A highly complex political economy, highly centralised but fragmented governance, land contestation among many government entities and weak institutional capacity have made it difficult to manage the city of Karachi’s development. This was stated in ‘Transforming Karachi into a Livable and Competitive Megacity’, a city diagnostic and transformation study carried out by  World Bank Group.

Karachi is the largest city in the country, with a population of 16 million. It accounts for one-third of Sindh’s population and one-fifth of the country’s urban population.The city is Pakistan’s financial and economic hub, generating 12 to 15% of the country’s gross domestic product (GDP). It is also a powerhouse of manufacturing employment.

Though Karachi saw substantial poverty reduction in the 10 years up to 2015, with 9% of the city’s population living under poverty in 2014–15 compared to 23% in 2004–05; it is still ranked in the bottom 10 cities in Global Livability Index. This is due to the poor level of basic services in the city. However, Karachi is the richest city in Sindh and third ‘least poor’ in Pakistan, according to the report. No progress made in development package for Karachi announced by Centre.

The city is very dense, with more than 20,000 persons per square kilometer. Urban planning, management and service delivery have not kept pace with population growth, and the city seems to be headed toward a spatially unsustainable, inefficient and unlivable form. Public open spaces and cultural heritage sites are under threat from commercial development. Urban green space is shrinking and now only makes up 4% of the city’s built-up area.

An estimate says that 45 citizens compete for every bus seat, compared to 12 in Mumbai. According to the report, no cohesive transportation policy exists for Karachi, even as 1,000 new vehicles are added to the roads each day. Traffic congestion and road safety are serious concerns. The report noted a lack of an official public transit system.The study revealed that only 55% of water requirements of the citizens of Karachi are met daily. It added that the city is experiencing a water and sanitation crisis that stems largely from poor governance. Rationing is widespread and leakages and large-scale theft are common. Less than 60% of the population has access to public sewerage and almost all raw sewage is discharged untreated into the sea, along with hazardous and industrial effluent. Less than half of estimated solid waste is collected and transported to open dump sites, resulting in major public health hazards.

Karachi is one of the most disaster-vulnerable districts in Pakistan and is at a high risk for natural and man made disasters. Regular flooding occurs during the annual monsoon season due to the poorly maintained and clogged drainage system. Air pollution is one of the most severe environmental problems. Environmental pollution has a high cost to public health – explained the report.

‘Karachi is ahead of the rest of Sindh in economic development’ The report estimates that Karachi needs around $9 to $10 billion in financing over a 10-year period to meet its infrastructure and service-delivery needs in urban transport, water supply and sanitation and municipal solid waste. According to the report, unclear roles, overlapping functions and lack of coordination between civic governance and agencies has worsened the city’s woes. Municipal and city development functions are highly fragmented, with roughly 20 agencies across federal, provincial and local levels performing these functions, leading to a lack of coordinated planning and integration at the city level. These agencies also control nearly 90% of Karachi’s land but are reluctant to make it available for development recommendations.

The consolidation and disclosure of accurate city data is a first step toward effective integrated planning, recommends the report. It added that regional planning should utilize benefits from the China-Pakistan Economic Corridor for equitable, inclusive and efficient economic growth, while safeguarding environmental and cultural assets. Empowering elected local governments to deliver services to the city and enhance mechanisms for accountability of local governments to citizens to make them more inclusive and the provincial government for consistency and transparency of administration and oversight was another suggestion.

Other suggestions included ensuring that Sindh Mass Transit Authority has representation from the city government, improving management of existing urban road space by enhancing traffic management, providing off-street parking and better enforcement. Improving the non-motorised transport environment by developing sidewalks, road crossings, bikeways and so forth was recommended as a short-term plan to improve urban transport.

Enabling formal private sector financing for major investments in public transport systems, including bus rapid transit and rail systems, bus fleets, and so forth was another suggestion to improve the state of Karachi’s transport system, as well as providing incentives to the existing transport operators to organise formally with easier access to financing for fleet modernization.

Another recommendation made in the report was to transform  Karachi Water and Sewerage Board into a modern utility and make it autonomous, professionally managed by qualified staff, with clear lines of accountability and customer focus. It was also suggested to develop a new water board strategy that outlines performance standards, capital investment needs, systems, procedures and equipment deficits, training needs, institutional optimization and staff and management incentive structures.

Another recommendation made in the report was to improve the operating environment within the board by restructuring it, establishing a pro-poor unit and developing a pro-poor strategy.

It also suggested reviewing legal framework for solid waste management and clarifying responsibilities between local governments and the Sindh Solid Waste Management Board.

Philippines for Enhancing Trade Ties

on 27/03/2018

Pakistan and Philippines have agreed to enhance bilateral trade ties and explore investment opportunities at the Joint Economic Commission (JEC) meeting.

The two-day event was co-chaired by Secretary Economic Affairs Division, Arif Ahmed Khan and Deputy Minister of Industry Development and Trade Policy Group of Philippines, Dr Ceferino S. Rodolfo.The two countries agreed to re-activate the Pakistan Philippines Joint Business Forum and Council with the participation of Chamber of Commerce and Industry of Philippines and Federation of Pakistan Chamber of Commerce and Industry.

Pakistan offered Philippines investment opportunities in the power sector, particularly in the renewable energy and small hydro power projects. Training opportunities in the areas of hydrocarbon exploration, production, processing and survey were also offered by Pakistan.The two sides agreed to collaborate in the area of post-harvest management and processing of rice and banana.

Pakistan invited Philippines to invest in construction of highways on `Build, Operate and Transfer` (BOT) basis. Potential investment opportunities for Pakistani pharmaceutical and medical equipment manufacturing in the Philippines were presented on the occasion.The two countries agreed for exchange of visits between the officials of their respective central banks.

Both sides deliberated upon and agreed to review the proposals regarding revision of the convention on the `Avoidance of Double Taxation` between Pakistan and the Philippines and cooperation in matters related to the Customs. Detailed deliberations were held between experts of the two sides on trade, investment, energy, agriculture, tourism, health, industries and other matters of mutual interest. The two sides agreed to hold trade fairs, single country and product-based exhibitions in each other`s country on a regular basis. It was agreed to conduct feasibility studies on the possibility of `Preferential Trade Agreement` and for the formation of a technical working group within the JEC for this purpose.

US to help for :Pakistan’s 1st Renewable Energy Institute

on 26/03/2018

 GE appreciated for Re powering Initiative proposal

US Ambassador to Pakistan David Hale said that the United States would explore the ways and means to help Pakistan for establishing its first Renewable Energy Institute.

In a meeting with Federal Minister for Power Division Awais Khan Leghari, the ambassador said that the US would also share expertise of US National Renewable Energy Laboratory to ensure working of the institute as per international standards. He said the US would also consider assisting Pakistan in the formulation of National Energy Policy and National Electricity Plan.

During the meeting the minister informed the ambassador that the government has initiated the process of interaction with all the provinces and the federating units for the formulation of Energy Policy and National Electricity Plan. In this regard the government has also decided to take into consideration various proposals of the power sector stakeholders including the service providers.

The minister appreciated the US General Electric Company for its Repowering Initiative proposal that includes conversion or rehabilitation of the existing power generation units across Pakistan. He said that he has asked the GE to be part of the process of energy policy and electricity plan so that their proposal can be materialized based on the decisions taken.

The minister underscored the need of deep cooperation between Pakistan and USA in the renewable energy sector. He said that renewable energy is the only way forward to meet the energy requirements of Pakistan.

The minister also informed the US ambassador on the progress made so far by the Power Division for establishment of the institute. He said that LUMS has also shown keen interest to house the institute, and has sent its proposal in this regard. He said that HEC and AEDB are finalizing to identify the university in Pakistan to house the institute.

The US ambassador appreciated the Power Division initiative for establishment of the institute. He also underscored enhanced cooperation between the two countries in the energy sector. He also assured to soon appoint focal person for energy in US Embassy, who will frequently interact with his counterpart at the Power Division regarding cooperation in the sector.