Nov 5, 2020 

The Pakistan Industrial and Traders Association Front (PIAF) Chairman Mian Nauman Kabir has welcomed the termination of discriminatory peak-hour tariff system for commercial electricity users, with provision of uniform electricity rates round the clock, stating the overall energy relief package will promote trade and industry in the country that had suffered losses in the past due to high cost of electricity. 

In a joint statement with vice chairman Javed Siddiqi he observed that electricity rates are high in Pakistan and it is for the first time that power rates have been reduced. He said the decision would help boost economic growth, strengthen industry, increase exports, and create employment opportunities. 

Earlier, the industry was being charged the electricity tariffs on peak rates between 7pm to 11pm now if any industry has B1, B2 and B3 connections, it would get 50 percent relaxation on additional units. 

Mian Nauman Kabir said that in view of boosting the production, it was vital to reduce the power price and eliminate the peak hours’ tariff system. 

He added that the new relief package would help to expand employment opportunities, besides lifting economic activities in the country. 

Pakistan’s exports have become expensive as compared to the regional and other competitors. The discounted power rates would provide a breather to the export sectors and indicate that the economy has now been moving towards the positive trend, he added. 

Mian Nauman Kabir said that a strong infrastructure of energy was vital to help industries grow and compete with international market. He pointed that with 25 percent expensive electricity rates, Pakistan lagged behind India and Bangladesh in terms of exports. 

It is extremely important for Pakistan to strengthen industrialization, which will lead to wealth creation and thus help pay off the debt, he said. 

Mian Nauman said that it is right step in the right direction that the Small and Medium Enterprises (SMEs) would be getting 50% tariff relief on the use of additional electricity, considering their bills of November 2019, during next six months, while all the industries would be provided with additional electricity on 25% reduced rates for next three years, he added. 

The PIAF chief said that it was for the first time that such a big reforms package in the energy and power sector had been announced for the industries with the fixation of tariff for three years. 

PIAF vice chairman Javed Siddiqi said the way the whole nation fought the COVID-19 pandemic, early opening of businesses and the construction industry, and the policy of smart lock down which helped check the spread of coronavirus and death rate, pushed the wheel of economy running in Pakistan earlier than various countries. 

Business community is happy that the present government was bringing improvement in the power sector through various bold policy decisions.  

Javed Siddiqi also applauded the government for making a power production agreement for alternative resources like solar and wind energies at the rate of Rs 6.5 per unit against the previous agreements of Rs 24 per unit. 

It is good news for Pakistan in terms of the energy-mix that it would be meeting 25% and 30% of its electricity requirements through alternative energy resources by the years 2025 and 2023 respectively. 

ISLAMABAD : On the occasion of UN’s World Cities’ Day 2020 The Commission on Science and Technology for Sustainable Development in the South has marked the occasion through a webinar on “Challenges of Rapid Urbanization in the Global South” co-organized by COMSATS Centre for Climate & Sustainability (CCCS) and COMSATS’ Centre of Excellence, Tanzania Industrial Research and Development Organization (TIRDO).

The event emphasized on having strong legislation and policy measures for development of new cities safeguarding nations’ interests regarding natural resources and environment. Sustainable urbanization was deemed the best mitigative approach to climate change as urban air pollution is a severe threat to human health, along with poor transportation and industries.

A Press Release along with photograph of participants is attached with the request for its coverage in the media.

Islamabad, Nov 5 (DNA): Photovoltaic industry in Pakistan has huge potential under CPEC, as per the latest research report ‘Global solar PV market outlook’ released by Wood Mackenzie.

According to the report, as global solar PV markets continue to weather the challenges posed by the coronavirus pandemic, solar PV installations are expected to hit 115 GWdc this year.

This is up 5% from the total installed globally in 2019.

The report analysed that in Asia, the Chinese market is continuing its robust recovery and Wood Mackenzie now expects 39 GWdc of installations by the end of 2020. Of this total, 27 GWdc will be installed in the second half of the year.

The pipelines for both subsidy-free and auctioned projects have ballooned in 2020, and the Chinese market will grow by 30% year-on-year despite short-term supply chain disruption delaying module procurement for some developers.

In contrast, coronavirus cases in India are continuing to rise and social distancing measures are likely to slow installation activity for the rest of the year at the very least. Without policy enforcement, India’s 100 GW solar target is unlikely to be met.

According to Wood Mackenzie’s analysis, Indian PV installations will sit at just 4.9 GW in 2020, down 42% on 2019 and the lowest level since 2016.

In Pakistan, as the cost of PV power generation continues to fall, the market demand continues to soar.

The tender price for pv power in Pakistan is between $0.036/KWh and $0.038/ KWh, which is relatively low internationally. It means PV power as a new clean energy gaining more competitive in energy market.

Including EPC 30MW PV Project , QUAID-E-AZAM 100MW PV Project, China has invested and contracted to build most of PV power stations in Pakistan.

BEIJING, Nov. 5  : There are broad prospects for China-Pakistan service trade cooperation, China Economic Net (CEN) reported on Thursday quoting Chinese scholar Prof. Cheng Xizhong.

According to Prof. Cheng last September, China International Fair for Trade in Services 2020 was successfully held in Beijing, which shows that China attaches great importance to service trade.

Since China joined WTO in 2001, the total import and export volume of China’s service trade increased from 71.9 billion U.S. dollars to 743.4 billion U.S. dollars in 2019, that is to say, it has increased 10 times in the past 20 years.

In 2019, the added value of China’s service industry accounts for 53.9% of its total GDP, and will continue to increase.

In the future, the structure of China’s service trade will gradually upgrade, and the export of service trade will gradually tend to the areas with obvious “scale economy effect”, such as R&D, design, brand, etc.

Now, world trade in services accounts for 25% of the total world trade. WTO predicts that the proportion of service trade will be higher and higher, and it will increase to 50% by 2040.

Analysts believe that the higher the proportion of service industry in a country, the more developed its economy will be. In 2019, the American service industry reached 17.36 trillion U.S. dollars, accounting for 81% of its total GDP.

The American economic structure has already completed the transformation to service industry. Its real advantages lie in its strong service economic foundation, advanced information technology infrastructure, standardized and flexible business system and good innovation environment.

Pakistan`s service export fell by over 16.79 percent year-on-year to 352.92 million U.S. dollars in the second month of the current fiscal year. Service export has fallen since March after the Pakistani government imposed a lockdown across the country to contain the pandemic.

However, the service sector emerged as the main driver of economic growth with its share in the GDP increasing from 56 percent in 2005-2006 to 61.4 percent in 2019-2020. Its major sub-sectors include finance and insurance, transport and storage, wholesale and retail trade, public administration, and defense.

The prosperity of service industry is an important feature of modern economy. To accelerate the development of modern service industry can expand the employment field, increase employment opportunities, promote social stability, and improve people’s living standards and quality of life.

In my observation, Pakistan’s service market is more open than the average level of developing countries, but service trade in Pakistan is facing the problems of increasing deficit year by year and insufficient international competitiveness.

The two-way investment in the service industry of China and Pakistan is in the ascendant, and there is a great potential of service trade.

With the steady progress of the construction of the China-Pakistan Economic Corridor, there are broad prospects for service trade cooperation between both countries in project contracting, transportation, communication and other industries, Prof. Cheng added.

November 05-2020

The United Business Group (UBG) of FPCCI has lauded the decision of Prime Minister Imran Khan to provide economical electricity to the industrial sector which will give a new life to the struggling sector.

The decision to provide a three-year major relief to industries may cost around Rs30 billion to the government but the benefit will be manifold in the shape of improved production, exports, employment and taxes, said UBG leaders adding that it will also help the government use unutilized capacity.

Speaking at a reception arranged by former Vice Presidents FPCCI Atif Ikram Sheikh and Karim Aziz Malik, Chairman of UBG Iftikhar Ali Malik, Patron SM Muneer, UBG’s Presidential Candidate Khalid Tawab, Chairman of National Business Group Mian Zahid Hussain and others said that the decision will trigger economic activity which was calm due to coronavirus.

Electricity was almost 25 percent costly as compared to regional economies which helped them gain space in the international market while Pakistan products lagged behind due to cost factor but now we will be in a better position to compete with rivals, they said.

At the occasion, Atif Ikram Sheikh said that the government has played its role and now the private sector should also improve its products.

He said that PM’s focus on SMEs is very encouraging as there are almost 3.3 million SMEs in Pakistan providing 78 percent jobs to the urban workforce. This sector is responsible for 25 percent exports and its share in GDP is 30 percent but it has remained an ignored sector.

Now the government is focusing on its development which is going down very well with the business community.

Sheikh said that electricity tariffs have remained a major input cost of our productive sector impeding competition in the international market and promoting smuggling across our porous borders but now the cheap electricity will bring down prices which will discourage smuggling.