ISLAMABAD, FEB 7 (DNA) – The Friends of Business & Economic Reforms (FEBR) President Kashif Anwar on Sunday said the government has to formulate long-term and consistent policies for high industrial growth and sizeable improvement in exports, as Pakistan’s export has been stagnant for a long time.

Kashif Anwar observed that the output of Pakistan’s large industries has improved by around 7.5% in the first five months of current fiscal owing to sustained growth momentum, which is a ray of hope for economic revival. He said that cut in interest rate and reduction in duties on raw materials is expected to further spur economic activities in the current fiscal year.

He said that the growth has now broken a cycle of constant contraction in past over one year. He was hopeful that present trend of positive growth in large-scale manufacturing (LSM) will help achieve the annual economic growth target, besides creating jobs for skilled and unskilled workers.  Unless attention is paid to all factors that hamper industrial and exports growth, the country might not be able to achieve the desired results, he warned.

He said that businesses had been bearing the brunt of very high interest rate, issues of the Federal Board of Revenue and high energy prices. The sectors which registered a dip in their production included iron and steel whose production fell 3.7%, electronics 18%, leather products 43%, engineering products 32.6% and wood products 65% during the July-November period.

He said that the World Bank released a new report, which showed a gloomy picture of Pakistan’s economy. On a month-on-month basis, the LSM sector showed only 1.4% growth in November over Oct 2020. Data collected by the Oil Companies Advisory Committee showed that 11 types of industries registered average growth of just 0.09% in the first five months of current fiscal year. He said that Pakistan needs 6-7% annual economic growth to reduce poverty and unemployment.

He said that the Large-Scale Manufacturing sector registered a cumulative growth of 7.5% in July-Nov of current fiscal year, but industry has not yet achieved the production levels seen before the first wave of the coronavirus hit the country in Feb last year.

He said that industrial production after suffering months of damage inflicted by the corona pandemic mainly in the construction, sugar, automobile, and pharmaceutical sectors is now clearly reflecting a revival in economic activities in the country.

For the current fiscal year the government had set the economic growth target at 2 percent, which will be better in the current economic situation but is not enough to create jobs for a growing population. Out of 15 major sectors, 10 sectors recorded positive growth while output of five sectors contracted in the first five months of current fiscal year.

The LSM sector recorded a 14.5% year-on-year growth in Nov, which is the highest LSM growth but it is also the fact the index was still below the level of 160 points recorded in March last year, as the index jumped to still 147 in Nov 2020.=DNA

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The price of gold has dropped by Rs1,500 in Pakistan in February so far. A tola now costs Rs111,800, according to rates shared by the All-Sindh Sarafa Jewelers Association on Saturday.

Gold prices in Pakistan respond to its international rate. Its price has been dropping internationally since the news of the successful development of the coronavirus vaccines and the start of the vaccinations globally.

According to a gold expert, people are now directing their investment to the equity markets, which are stock markets such as the Pakistan Stock Exchange (PSX).

The international price of gold was $1,815 by Saturday evening.

“The price of gold has been declining but it’s not as if the precious metal value will deflate considerably,” said Adnan Agar, a commodities expert. “The US think tanks are considering the stimulus package of $1.9 trillion. If that happens, it will weaken the dollar and gold [and other metals] are inversely proportional to the value of the greenback.”

“During February on a short-term basis, gold may not lose significant value,” he added.

The price of gold started increasing internationally as countries across the world went into lockdowns in March 2020. It rose from $1,471 to reach an all-time high of $2,063 per ounce by August 6.

“Whenever there’s a year of low economic growth, the next year is generally considered a year of recovery,” Agar said. “So, expectations are that economies will recover this year so the price of gold may go down.”

The prices of gold and other precious metals increase because of uncertainty as they are considered safe for investment. Their prices fall when stable times are expected ahead. Investors turn to gold when things don’t look in favor of the economy and subsequently in stocks.

As the economy starts improving, investors move to capital market from gold and other metals. The situation in America plays an important role in influencing gold prices globally.

ISLAMABAD, FEB 7 (DNA) – The Islamabad Chamber of Commerce & Industry (ICCI) in collaboration with the Centaurus Mall, Islamabad organized a mega show of automobile brands in the open parking of Centaurus to highlight the potential of the automobile sector for economic revival of the country.

All major local and international auto brands like cars, SUVs, jeeps, heavy bikes, motorcycles including Toyota, Honda, Isuzu, Benelli, Aprilia, Changan Alsvin, Sigma, antique, vintage and exotic vehicles etc. were displayed for the interest of the visitors. Exclusive auto brands including Lamborghini, Ferrari, BMW, Range Rover, Audi, Mercedes were also on display.

This was the first of its kind auto show organized by the ICCI to cater to the needs of corporate and consumers markets. The auto show was free of cost while food stalls, and refreshment counters were also arranged for the convenience of the participants. At the conclusion, a musical concert was held for the entertainment of the people.

Zulfiqar Abbas Bukhari (Zulfi Bukhari) Special Assistant to PM on Overseas Pakistanis and HRD inaugurated the auto show as Chief Guest. Ali Nawaz Awan, Special Assistant to the PM on CDA Affairs was also present at the occasion. Fatma Azim Senior Vice President, Abdul Rehman Khan Vice President ICCI, Mian Akram Farid Chairman Founder Group and a great number of business community attended the auto show. A large number of people from all walks of life including some foreign nationals turned up to attend the auto show and they took keen interest in various types of auto brands.

Speaking at the occasion, Zulfi Bukhari SAPM on Overseas Pakistanis & HRD and Ali Nawaz Awan SAPM on CDA Affairs appreciated the initiative of ICCI for organizing an impressive automobile show in collaboration with the Centaurus Mall. They said that the Covid-19 pandemic has badly affected business activities across the world including Pakistan and after the reduction in coronavirus cases, organizing such events was very important to revive and boost the economy. They said that with the improvement of Covid-19 pandemic situation, the government would encourage more such initiatives as Pakistan needed to organize trade fairs and exhibitions on a regular basis to boost its trade & exports and stabilize its economy.

Sardar Yasir Ilyas Khan, President, Islamabad Chamber of Commerce & Industry (ICCI) in his welcome address said that the automobile sector was playing a vital role in the development of our economy in terms of revenue generation, foreign exchange, employment creation, and technology transfer, therefore, there was a great need to further promote it to steer the country out of current challenges. He said that the automobile sector was contributing nearly Rs.50 billion to the national exchequer, providing employment to around 3.5 million people besides playing a key role in the growth of the vendor industry and stressed further supporting this sector would help in creating more jobs, providing better auto solutions to people and generating additional tax revenue. He said that the government should focus on promoting the indigenous automobile industry so that instead of importing most of the vehicles and spare parts, all auto brands could be manufactured in the country. He said that for this purpose, the government should announce special tax incentives to attract maximum local and foreign investors in this important sector. He said that the purpose of organizing a mega auto show in Islamabad was to showcase the potential of the automobile sector and enable the general public of the region to find automobile brands of their choice at one location. He assured that the ICCI would continue to organize more expos/exhibitions in the coming months to highlight the potential of various sectors of our economy and generate more economic activities.=DNA

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