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ffsteel · 2 years ago

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CPEC: The Untapped Potential for the Steel Industry of Pakistan

Have you ever wondered how the China-Pakistan Economic Corridor (CPEC) could change the steel industry? It is evident that CPEC has been a major game changer for the economy of Pakistan and is a key milestone in China’s Belt and Road Initiative. But what are its untapped potentials for the steel industry?

The CPEC has provided access to a large market, simplified trading procedures, and reduced transportation costs. It has improved supply chain efficiency and generated greater opportunities for Pakistan’s Steel Sector. CPEC also provides foreign direct investment, technology transfer, and job creation opportunities in Pakistan.

This article seeks to explore how CPEC can be a game changer for the steel industry, opening the doors to new markets, new customers, and new technologies. We'll look at, how it can help to increase efficiency and productivity across the board, as well as how it can open up new trade channels for Pakistani steel makers.

CPEC & the Steel Industry: An Overview

CPEC offers an unprecedented opportunity for the Pakistan Steel Industry. It could prove to be a game-changer for the country as it unlocks new avenues for economic growth and investment. With CPEC, Pakistan can benefit from modern technology, foreign direct investments in steel-related industries, and improved infrastructure.

Moreover, the second phase of the China-Pakistan Economic Corridor (CPEC) has increased its focus on Special Economic Zones (SEZs). These SEZs are expected to be hubs for steel-related industries and will help stimulate growth in the sector. The SEZ in Faisalabad will become an industrial hub with a focus on light engineering activities such as auto parts manufacturing and electronics appliance assembly (2023, April 13). In addition to these, CPEC also plans to establish nine Special Economic Zones (SEZs) across Pakistan, which will attract more investment and industries that will further increase the demand for steel. According to the Board of Investment (BOI), these SEZs will create about 1.5 million jobs and generate about $10 billion in exports by 2030 (2023, April 13).

One of the main drivers of this growth was CPEC, which created a huge demand for steel for various projects. According to the Ministry of Planning, Development, and Special Initiatives, CPEC has completed 17 projects worth $13 billion as of December 2022, while another 21 projects worth $12 billion are under construction (2023, April 13). These projects include highways, railways, power plants, ports, and Special Economic Zones (SEZs), which require large amounts of steel for their construction and operation.

For instance, the Karachi-Lahore Motorway (KLM), which is a part of CPEC's eastern alignment, is a 1,152 km long six-lane expressway connecting Pakistan's two largest cities. The project cost $6.6 billion and was completed in December 2022 (2023, April 13). The project consumed about 1 million tons of steel during its construction, according to the National Highway Authority (2023, April 13).

Thar Coal Power is a part of CPEC's energy cooperation. The project consists of two coal-fired power plants with a total capacity of 1,320 megawatts (MW), located in Thar Block II in Sindh province. The project cost $2 billion and was inaugurated in March 2023 (2023, April 19). The project used about 400,000 tons of steel for its construction, according to the Sindh Engro Coal Mining Company (2023, April 19).

Another project is the Gwadar Port, which is also a part of CPEC's maritime cooperation. The port is located in the Arabian Sea, Balochistan, and is considered a strategic gateway for trade between China and the Middle East, Africa, and Europe. The port has been upgraded and expanded under CPEC, with new terminals, berths, warehouses, and facilities. The port handled about 1.2 million tons of cargo in 2022, an increase of 58% from 2019 (2021, April 19). The port also consumed about 300,000 tons of steel for its development, according to the Gwadar Port Authority (2021, April 19).

Ultimately, CPEC is likely to provide a great boost to both local and foreign investments in Pakistan’s Steel Industry by increasing profitability, competitiveness, productivity, and access to the International Markets.

Strategies to Leverage the Benefits of CPEC for Steel Producers

CPEC (China-Pakistan Economic Corridor) presents a great opportunity for Pakistan’s Steel Industry to capitalize on. The massive infrastructure development project is estimated to be worth around $46 billion and offers investments in various sectors from energy projects to road and rail networks, to ports (2023, April 13).

Steel producers in Pakistan are set to reap the rewards of CPEC, but in order for them to do so, they must formulate strategic plans that will evolve their businesses to meet the opportunities presented by this game-changing project.

Here are some strategies that can be employed by steel producers to leverage the benefits of CPEC:

Investing in Steel Technology

The modernization of the steel production processes is essential for the industry to grow, remain competitive and take advantage of the opportunities that CPEC offers (2023, April 13). Investing in advanced technology can help improve production efficiency, product quality and reduce costs.

Developing Strategic Partnerships

Partnering with other stakeholders within Pakistan's Building Material Industry can help increase market share and build better relationships with customers and suppliers. A strong network of strategic partners ensures that resources are utilized and knowledge is shared in an optimal way.

Making Use of Local Resources

By utilizing local resources such as tools, machines, raw materials, etc., Pakistani Steel producers can produce their products at a faster rate with fewer imports from China - thus ensuring that Indian Steel producers do not outpace them in this area. This also reduces costs associated with importing supplies from China or other countries.

Conclusion

The CPEC project has the potential to be a game-changer for the steel industry in Pakistan. With access to improved transport and communication infrastructure, the local industry can become more competitive in the global market. CPEC also provides a unique opportunity to tap into the potential of new technologies and the potential for more rigorous innovation, which can result in more efficient production processes and cost savings. Finally, CPEC's initiatives aim to reduce the cost of energy, which can also lead to improved profits. With the right implementation, the CPEC project can ultimately lead to increased economic prosperity and improved living standards for the people of Pakistan.

References

Business Recorder. (2023, April 13). The steel industry is likely to generate $32b annually by 2025. https://www.brecorder.com/news/40123587

State Bank of Pakistan. (n.d.). Industrial statistics. https://www.sbp.org.pk/ecodata/IndustrialStatistics.pdf

World Steel Association. (2021, April 19). Steel in the new age. https://www.worldsteel.org/media-centre/press-releases/2021/2021-04-19-steel-in-the-new-age.html

The Express Tribune. (2020, September 8). The steel industry is likely to generate $32b annually by 2025. https://tribune.com.pk/story/2343517/steel-industry-likely-to-generate-32b-annually-by-2025

State Bank of Pakistan. (n.d.). Exports by commodity group. https://www.sbp.org.pk/ecodata/exports_commodity.pdf

Wikipedia. (2023, April 13). China–Pakistan Economic Corridor. https://en.wikipedia.org/wiki/China%E2%80%93Pakistan_Economic_Corridor

Statista. (n.d.). Topic: Steel industry. https://www.statista.com/topics/1149/steel-industry/

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sigma-property · 4 years ago

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Nova City Islamabad: Brief Overview & Its Impact On The Real Estate Sector

Nova City Islamabad, an approaching home society around Islamabad International Airport, is formally launched. The society is dispersed on complete 8740 Acres of land situated along the CPEC Route. Nova City Plots construction is evenly split into 5 Marla plots, 10 Marla Plots & 1 Kanal residential plots. The plot-booking in Nova City Islamabad begins from 10 percent of their overall costs with four years simple installation plan. The development work of the mega society is in full swing along with enormous development functions in the Environment. Nova City NOC is under the procedure of the concerned authorities, and, likely, the society will shortly acquire the NOC.

Nova City Islamabad is a recommended project with odds of providing high returns on investment and increased feasibility for investment in addition to residential purposes. Nova City Islamabad: Big supply of water Dams from the Environment. Nova City Plots range from 5 Marla to 1 Kanal using a simple payment plan that provides four years of simple installments.

Nova City Islamabad Payment Plan

The payment plan of Nova City Islamabad is brought to you by Qazi Investments for our regarded clients and viewers. They are intrigued to know the rates of Nova City housing society in Islamabad. Blue World City rates and payment plans are pre-launch plot rates. The payment plan is as follows:

The 5 Marla plots rate is Rs.1,995,000/ with a down payment of Rs.199,500/, affirmation rate is likewise Rs.199,500. 40 monthly installments are also accessible with Rs.19,500, 8 half-yearly installments of Rs.45,000, and Rs.456,000 to be submitted on ownership of the property.

The 10 Marla plots rate is Rs.3,750,000/ with a down payment of Rs.375,000/, affirmation rate is likewise Rs.375,000. 40 monthly installments are also accessible with Rs.36,000, 8 half-yearly installments of Rs.99,000, and Rs.768,000 to be submitted on ownership of the property.

The 1 Kanal plots rate is Rs.7,250,000/ with a down payment of Rs.725,000/, affirmation rate is likewise Rs.725,000. Forty monthly installments are also accessible with Rs.68,000. Eight half-yearly installments of Rs.185,000 and Rs.1,600,000 to be submitted on ownership of the property.

The 2 Kanal plots price is Rs.14,200,000/ with a down payment of Rs.1,420,000/, affirmation rate is likewise Rs.1,420,000. 40 monthly installments are also accessible with Rs.130,000, 8 half-yearly installments of Rs.350,000, and Rs.3,360,000 to be submitted on ownership of the property.

Nova City Islamabad Distinguished Features

Wide & Attractive Main Entrances

Carpeted & Wide Roads & Main Boulevard

3 Dams for huge water reservoir

Jogging Tracks, Zoo & Parks

Children Playland

Water, Gas & 24/7 Electricity

Hospitals, Educational Institutes & Parks

Eco-friendly Environment with the waste disposal system

Invest in Nova City Housing Scheme

The first thing that arises after understanding society is why one needs to invest in Nova town, Islamabad? The response to this query is rather straightforward. There are many reasons for somebody to trust society and proceed to invest capital in this project.

First thing, investors look up to the increased Return on Investment (ROI) rates while still investing. This reason is creating it stand out in the industry. The worth of properties within this area is also raising multifold from the recent years due to appreciation.

Second, the prime place of Nova town can be a plus. The distance to each of the significant city hubs is relatively negligible. Thus, this is the ideal time to place your funds in Nova town, Islamabad, to reap the most output out of it.

Nova City Development Status

Since the project is now in the pre-launch phase, that that's why there is no proper visualization of the developmental work. However, the road infrastructure is built on-site, and maintenance and booking staff are hired that responds to all the queries of their visitors.

Telephone lines and Email service platforms are set up to provide uninterrupted services to the clients. A high-speed fiber-optics internet broadband line is being established in society.

As the society is currently in the pre-launch phase, it will take some time before we can witness the development work on the ground. The developer and planner are seriously working towards their objectives hands-in-hands with their highly professional and dedicated teams.

Latest Developments in Nova City Islamabad

The society is not launched yet; however, it is going through pre-launch infrastructure development that will tempt investors and build up a feeling of trust in the developers. These are some development pictures of Nova City Islamabad:

Also, the Sports center is completed along with the football pitch. Shows developer commitment towards development as health facilities are constructed at a very initial stage.

#sigma property #pakista property

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polestarmarketing · 6 years ago

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CPEC gains thrust, enters into second phase of cooperation

Islamabad: The Chinese Ambassador Yao Jing with an investor delegation held a meeting here in Islamabad. Federal Minister for Planning, Development & Reform Makhdoom Khusro Bakhtiar and the FBR team were also present to talk on investment incentives.

Federal Minister (PDR) said the government attaches most importance to the Rashakai economic zone, development of Gwadar and ground breaking of…

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#2nd phase of cpec projects #cpec progress #cpec project details #graana #gwadar cpec #gwadar master plan #news #pak china #second phase of cpec #second phase of cpec projects

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cpecwillproviide · 2 years ago

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CPEC WILL PROVIDE LONG TERM WELFARE FOR LOCAL RESIDENTS

By Qaiser Nawab：https://pakobserver.net/cpec-will-provide-long-term-welfare-for-local-residents-by-qaiser-nawab/

China and Pakistan are all-weather strategic partners. The two countries have formed a rock-solid friendship.

The China-Pakistan Economic Corridor (CPEC) is a landmark project of the co-construction of the “Belt and Road Initiative” by China and Pakistan, and an important manifestation of the ever-growing “Iron-clad Friendship” between the two countries.

The CPEC is of over 3000 kilometers, it is a bond, connecting the Silk Road Economic Belt to the north and the 21st Century Maritime Silk Road to the south.

While building a bridge for economic and trade exchanges between China and Pakistan, the CPEC is also constantly enriching the connotation of a China-Pakistan community with a shared future.

In 2013, the CPEC was formally proposed and positioned as a “Four-sphere Integrated” channel and a trade corridor covering roads, railways, oil and gas pipelines, and fiber-optic cables; in 2015, the “1+4” cooperation layout was formed with the construction of the corridor as the center, with emphasis on Gwadar port, energy, infrastructure and industrial cooperation.

In December 2017, the “China-Pakistan Economic Corridor Vision Plan (2017-2030)” was officially released, combining China’s “The Belt and Road Initiative” and Pakistan’s “Vision 2025”.

In December 2017, the “China-Pakistan Economic Corridor Vision (2030)” was officially released, dovetailing China’s “Belt and Road Initiative” and Pakistan’s “Vision 2025”, with a focus on development in areas including connectivity, energy, trade and industrial parks.

CPEC construction bears fruitful results since its start of construction in 2013, the CPEC has created miracles one after another: China-Pakistan cross-border optical cable, Karakoram Highway upgrading and reconstruction project, Karot Hydropower Station, Lahore Rail Transit Orange Line Project, second stage of dam cut-off achieved at the Sugejinaree Hydropower Project, etc.

As of September 2021, the 22 priority projects from the first phase of the CPEC are almost complete, half of which are energy projects. For example, the Port Qasim coal-fired power station, since it entered commercial operation in April 2018, has generated about 10% of the power supply of Pakistan’s national grid.

It is reported that the coal-fired power station will exceed 4.6 billion kWh in 2021. While accelerating its construction as a power supply base, the CPEC also attaches great importance to the development of clean energy.

In November 2021, the Karot Hydropower Station, the first hydropower investment project under the CPEC, has successfully completed the closure of its diversion tunnel and officially started storing water in the reservoir, laying a foundation for the commissioning of subsequent generators.

It is reported that the construction of the Karot Hydropower Station and the Sugijinari Hydropower Station is progressing smoothly, and the construction of the Kohala Hydropower Station project will also begin after the signing of the franchise agreement in May 2021.

During the first phase of construction, China and Pakistan are not only committed to improving energy shortage problems, but also focused on infrastructure constructions.

There are many highlight projects, including Gwadar Port, Lahore Rail Transit Orange Line Project, Karakoram Highway upgrading and reconstruction project Phase-II, China-Pakistan Cross-Border Optical Cable Project, etc. These mass transport infrastructure constructions are of great significance to Pakistan’s economic development.

Thanks to highways and energy infrastructures, an increasing number of Chinese enterprises have come to invest in Pakistan, effectively promoting Pakistan’s economic development and at the same time, laid down a solid foundation for industrial cooperation in the second phase of the corridor.

Under the framework of the CPEC, China and Pakistan have greatly facilitated inter-regional connectivity through the construction of various infrastructure facilities.

Taking Gwadar port in Balochistan as an example, it is not only one of the four key points of the CPEC, but also a pilot project for the co-construction of the “Belt and Road Initiative” between China and Pakistan.

In November 2016, Gwadar port was officially opened, and from this place, the first Chinese commercial ship set sail. From its humble beginnings as a small fishing village, over years of development, Gwadar port gradually turned into a regional logistics hub. Even during the epidemic period, the construction of Gwadar port continued to advance.

It is worth mentioning that Gwadar Port has also created many “firsts” in 2020: for example, the launch of transit trade through Afghanistan, fully showing its transshipment potential; for the first time, it is expected that 10,000 tons of LPG will be shipped to Pakistan each month through Gwadar Port; and it is the first time where commercial operation was realized.

In July 2020, a medium-sized cargo ship loaded with 16,000 tons of chemical fertilizers docked at Gwadar port for the first time, and completed the unloading, warehousing and storage of all goods, this marks the official launch of Afghanistan’s re-export business.

It also shows that the CPEC can be extended to Afghanistan and further to Central Asia. From this point on, Afghanistan and the landlocked countries of Central Asia have a connecting access channel.

Relying on the location advantage and connectivity of Gwadar port, in July 2020, a series of industrial projects such as Gwadar Fertilizer Factory, Gwadar Exhibition Centre and Gwadar Lubricating Oil Factory also started construction in Gwadar port Free Trade Zone. CPEC construction continues to benefit people’s livelihoods.

The changes brought about by the construction of the CPEC are noticeable. According to a 2012 study by PricewaterhouseCoopers, the power shortage has resulted in an average annual loss of $13.5 billion in Pakistan’s GDP.

The shortage of electricity has led to chronic power shortage in Pakistan, with rotating blackouts in all regions of the country, ranging from about 10 hours per day in major cities to 22 hours per day in rural areas, with an average national power shortage of 4,000 megawatts.

Since the construction of the CPEC, Pakistan’s domestic power shortage has been greatly alleviated. According to Pakistan’s CPEC Affairs Bureau, as of January 2022, the total capacity of completed energy projects under the CPEC framework has reached 5.32 million kilowatts.

Khalid Mansoor, Special Assistant to the Prime Minister of Pakistan on CPEC, has said that these power capacities have provided a large amount of residential and industrial electricity, relieving Pakistan from long power outages.

The local impact of the CPEC on Pakistan is also largely reflected in the boosting of local employment.

According to some statistics from the Planning Commission of Pakistan, the early harvest projects of the first phase of the CPEC have created about 38,000 jobs, more than 75 percent of which are local employment, with energy projects creating the most employment, absorbing 16,000 Pakistani workers and engineers in total. In addition, the construction of transportation infrastructure has created about 13,000 jobs. Chinese companies are also actively fulfilling their social responsibility when carrying out project construction.

Starting from 2021, the CPEC has smoothly entered its second phase of construction. The development priorities are also gradually shifting to the industrial sector and expanding agricultural cooperation between the two countries.

Pakistan is an agricultural country with a population of 220 million and with a good location, so it is reasonable for the second phase of the CPEC’s construction to focus on industrial cooperation, with a layout that focuses on sectors such as agriculture, manufacturing and textiles. With the joint efforts of China and Pakistan, CPEC’s constructions keep stepping up to new levels.

China and Pakistan are willing to work together to build the CPEC with the goal of higher standards, sustainability and benefit for people’s livelihood, and accelerate the construction of a closer China-Pakistan community of shared future in the new era.

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goodnewspakistan · 3 years ago

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Closing Ceremony of 4th Maritime Security Workshop 2021 (MARSEW-4) organized by Pakistan Navy held at Pakistan Navy War College (PNWC), Lahore. The theme of nine days workshop was "Blue Economy - Future of Pakistan". Federal Minister of Maritime Affairs Mr Syed Ali Haider Zaidi graced the occasion as Chief Guest. Chief of the Naval Staff Admiral Muhammad Amjad Khan Niazi was also present at the Ceremony.

On the same occasion, Pakistan Navy War College also celebrated its Golden Jubilee and commemorated successful completion of fifty years of inland PN Staff Courses in Pakistan. Two panels comprising officers from PNWC and participants of MARSEW-4 presented academic papers on Blue Economy and Maritime Policy Formulation, highlighting pertinent recommendations to the august gathering.

While addressing the audience, the Federal Minister lauded the efforts of Pakistan Navy in organizing the Maritime Workshop that was much needed for enhancing Maritime awareness and mitigating sea blindness. He acknowledged that Pakistan's prosperity is deeply linked to the sea and economic hardships of the country need to be propelled through exploring new economic avenues in sustenance of ocean resources. He underscored the importance of CPEC as strategic economic enterprise that will benefit the entire region. The Chief Guest praised efforts of panelists for recommending concrete way-forward to accrue maximum dividends from Maritime Sector of Pakistan. The Federal Minister also shed light on various initiatives and projects being successfully spearheaded under the ambit of Ministry of Maritime Affairs. Towards the end, the Chief Guest awarded certificates to the participants of MARSEW-4.

Earlier, during the welcome note, Commandant Pakistan Navy War College, Rear Admiral Shifaat Ali Khan expressed his gratitude to the Federal Minister Mr. Syed Ali Haider Zaidi for his worthy presence at PNWC. The Commandant highlighted various activities of MARSEW, underscored benefits achieved by the participants and envisaged role of Maritime Centre of Excellence in promoting Blue Economy and policies concerning maritime domain.

During the course of workshop, the participants visited important organizations of maritime sector including Karachi Port Trust (KPT), Karachi Shipyard & Engineering Works (KS&EW) and Pakistan National Shipping Corporation (PNSC). The participants were also afforded feel of sea where they witnessed different naval exercises while onboard Pakistan Navy Ship during the sea trip. The participants were also taken to Jinnah Naval Base (JNB) Ormara where they were given detailed briefing on CPEC maritime related projects and Pakistan Navy's reforms and initiatives in socio-economic uplift of coastal community in health and education sector.

The 4th Maritime Security Workshop was organized in two phases and was attended by parliamentarians, senior bureaucrats, academicians, industrialists and representatives from media besides senior officers from the armed forces of Pakistan. In the first phase, academic sessions on ‘Security dynamics in Indian Ocean Region: Challenges and Opportunities in Pakistan's Maritime Sector', 'Blue Economy & its Contribution Towards Pakistan's Economic Prosperity' and 'Development of Gwadar Port within China Pakistan Economic Corridor (CPEC)' were held at Pakistan Navy War College. For the second phase, the workshop members visited Naval Headquarters (NHQ) Islamabad, various Pakistan Navy installations at Karachi, coastal and Creeks Area for orientation and familiarization.

The Closing Ceremony was attended by senior civil, military and foreign dignitaries.

#Pakistan #Navy #PakistanNavy #PakNavy

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indochinanews · 3 years ago

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Enslaved Pakistan will assemble Chinese cars

The sell-out success of the Chang'an Alsvin sedan is the latest Pakistani-Chinese joint venture to have raised eyebrows in the low-cost, low-quality segment of the automotive world.

Chinese car firms seeking new avenues for cheap labor and the market to grow. Now hampered in India, due to China's all-out war, now sees Pakistan as an entry point to the right-hand-drive markets of South Asia and a way to avoid International Sanctions against China for launching the coronavirus pandemic on the world.

A Pakistan-Chinese automotive joint venture recently sold out six months' production of its first compact, low-cost sedan car within five days of market launch, a success that investors and analysts believe could pave the way for Pakistan to become a Manufacturing and export base for Chinese right-hand-drive vehicles.

The stock-clearing sale of 15,000 Chang'an Alsvin passenger vehicles is the latest in a series of headlines about joint ventures between privately held Pakistani conglomerates and Chinese state-owned automotive enterprises.

However, just like within China, people within Pakistan prefer higher quality Japanese, Korean or European cars. However, the low-cost segment will look at Chinese Cars as an entry point.

However, these cars have no Status Value or resale value due to the quality of manufacturing in a Chinese Car.

The Alsvin is assembled at a US$136 million plant near the port city of Karachi owned by Master Chang'an Motors (MCM), established in 2017 as a 70:30 joint venture between the local Master Group and leading Chinese carmaker Chang'an Automobile. In addition to the 30,000 units a year of the Alsvin, it began producing two pick-ups and a multi-purpose vehicle in 2018.

This month, shanghai-based SAIC Motor, owner of the British car brand MG, broke ground at the site of a US$100 million plant near Karachi, which is expected to begin production of three small-engined sports utility vehicles, or SUVs, next year.

KA Hanteng Motor, a joint venture with China's Hanteng Automobile, is building a US$50 million plant in Pakistan and is expected to start making 15,000 SUVs and passenger cars this year.

Al-Hajj FAW, a Karachi-based joint venture formed in 2012, ramped up production of hatchbacks last year to 20,000 vehicles.

When the Master Group proposed the joint venture to Chang'an Automobile in 2016, it did so with the ambition of leveraging the estimated US$60 billion China-Pakistan Economic Corridor (CPEC) to gain access to other Asian markets targeted for investment under the Belt and Road Initiative, MCM's chief executive Danial Malik said.

The CPEC is the single largest program under Beijing's Belt and Road Initiative to enslave economies to China to the detriment of many developing countries.

Under the first five-year phase of the CPEC, Chinese state-owned enterprises have built power plants generating 5,320 megawatts of electricity and 1,544km of motorways. Other projects under construction will add another 2,844 megawatts of power generation capacity and 1,456km of motorway, completing Pakistan's north-south network. However, this has come at a very cost to Pakistan which is drowning in Chinese Debt and has been enslaved, similar to the East India Company Rule.

The motorways, once completed, will greatly reduce transit times for Chinese cargoes entering Pakistan either at the sole overland border crossing with the Xinjiang Uygur autonomous region or through the Chinese-operated port of Gwadar on the Arabian Sea.

"We came into Pakistan with a joint venture with Chang'an, and this was under the umbrella of CPEC 2.0," Malik said, referring to the second five-year phase of the program under which Pakistan is developing special economic zones to attract Chinese manufacturers.

"Since China is a left-hand-drive market, Chang'an was looking to develop a right-hand-drive manufacturing base, and that is what we pitched Pakistan as – and as a country that we could then eventually export vehicles from China to other right-hand-drive markets" like populous Bangladesh and nearby Sri Lanka, he said.

London-based automotive industry analyst Puneet Gupta said the development of a righthand-drive manufacturing base was key to the profit growth of Chinese state-owned automobile manufacturers, which have limited growth opportunities within China, where the market is completely saturated.

After a decade of "phenomenal growth," the Chinese market had "entered into a stagnation phase in the last two years," said Gupta, an automotive research and analysis manager for IHS Markit, a UK-based data and information services provider.

"This made Chinese car manufacturers explore other markets and invest in neighboring markets to regain the growth path. One of the most vital strategies is to explore the righthand-drive markets like Pakistan," he said.

He said that Pakistan's potential as a strategic hub for Chinese carmakers has grown because of the extraordinarily close master-slave relationship between the evergreen allies. Neighbouring India has opposed the CPEC since it was launched in 2015 because it involves Chinese investments in the Pakistan-occupied half of Kashmir.

Since independence from British colonial rule in 1947, India and Pakistan have fought three wars over Kashmir.

China and Pakistan settled their dispute over the border between Xinjiang and Gilgit- Baltistan in 1963, a year after Chinese forces defeated India and occupied Hugh parts of Ladakh. in a war over the Himalayan border.

The conflict reignited in the Ladakh region of Kashmir last June after Chinese troops seized several hundred kilometers of territory belonging to India.

The stand-off in Ladakh prompted India's government to introduce restrictions on Chinese investments, effectively ending any prospect of Chinese carmakers establishing a manufacturing base in the world's largest right-hand-drive market.

"Chinese companies need security clearance for investment in India, so it has become difficult for them to do business and grow in India," Gupta said. "This is the reason why China is being forced to move towards the Pakistan market, which has potential to have limited growth and is a right-hand-drive market."

MCM's Malik said China's automotive giants, having previously devoted themselves to satisfying domestic demand, only recently decided to focus on developing countries after finding that Japanese and South Korean carmakers had captured the markets in developed economies.

"Similar to what they've done with consumer electronics," Malik said Chinese automobile manufacturers were looking to attract consumers with cars and commercial vehicles packed with state-of-the-art features at "a very accessible price point."

This policy determined the runaway success of this month's rollout of three Chang'an Alsvin in Pakistan.

Consumers' choices were previously limited to a very narrow range of locally assembled Japanese cars – all of which are one or more generations older than the versions marketed in developed economies.

Toyota, Honda, and Suzuki have enjoyed a virtual monopoly since they established joint ventures in Pakistan in the early 1990s and assembled cars specifically for domestic consumption.

Alternatively, Pakistani consumers looking for cars with more features and better technology buy imported used hatchbacks from Japan, which until two years ago would cost roughly 20 percent less than entry-level models of locally assembled compact sedans like the Toyota Corolla and Honda City, and about 20 percent more than hatchbacks and multipurpose vehicles made in Pakistan like Suzuki's Alto and Wagon-R.

This pricing formula was knocked off-kilter by the 50 percent rupee depreciation against the US dollar between 2018 and 2020, as Pakistan struggled with a balance of payments crisis sparked by its failure to grow exports as imported Chinese machinery flooded in for CPEC.

The rupee-denominated price of Japanese cars soared by about a third as a consequence, and the gap between hatchback and compact sedan prices widened to the point that most middle-class Pakistani families could no longer afford cars with boots.

Amid this market shift, MCM took aim at the recently deprived market segment. "Our strategy with the Alsvin was to give the Pakistani consumer access to a Low Cost – Low-Quality sedan, because the way prices were going, the entry-level sedan was out of reach for the general customer," Malik said.

"Not only did we bring a sedan that was accessible to the hatchback consumers of Pakistan. We also introduced features that were either unavailable in any sedan in Pakistan" or only available in sedan models priced more than 35 percent higher than the Alsvin.

It is also the first car model manufactured in Pakistan powered by an engine designed to use low-sulfur Euro-5 standard fuel, which Pakistan's government has ordered oil refiners to introduce this year.

Other Pakistan-based manufacturers have yet to replace polluting Euro-2 standard engines in their vehicles.

"Bringing those features to an entry-level sedan was the real wow factor, and the consumers loved it," Malik said. However, Low-Cost buyers do not really care about the environmental impact, and as Beggars cannot be Choosers.

Compared to the scale of China's domestic market, the world's largest, the probable sale of 30,000 Chang'an Alsvin compact sedans to Pakistani consumers appears relatively insignificant.

Chinese automobile manufacturers sold 19.29 million passenger cars last year, falling for a third consecutive year. According to the Chinese Passenger Car Association, sales were about 20 percent less than in the peak year of 2017.

On the other hand, Pakistani car makers are forecast to sell about 200,000 cars in the financial year 2020-21, which ends in June, down from peak sales of about 217,000 vehicles in 2017-2018.

However, Chinese automobile sales in Pakistan are already much higher than in Indonesia, where more than 800,000 vehicles were bought in 2019. Both right-hand-drive countries have populations well in excess of 200 million people.

Pakistan's government is consulting automobile manufacturers on a new policy framework approved in December to incentivize investment in electric vehicle manufacturing, a key growth market for Chinese carmakers.

They have already announced plans to market and manufacture Chinese electric vehicles in Pakistan as soon as tax incentives under the policy are finalized. According to MCM chief executive Malik, the sticking point is that the entrenched Japanese carmakers have sought to nullify any advantage to Chinese manufacturers by demanding the same deal for hybrid vehicles.

Naturally, Malik sees his competitors' lobbying as an impediment to establishing electrical mobility across Pakistan. He argued that Pakistan would benefit more by leapfrogging from combustion engines to electrical motors, similar to how it prioritized nationwide mobile telephony coverage in the early 2000s over laying landlines in its rural areas.

The dumping of Petrol driven vehicles should ideally be bypassed, and Pakistan should move directly to an electric vehicle. By allowing this Petrol driven vehicle is the equivalent of Dumping inferior goods into Pakistan

Once the arguments over Pakistan's policy are cleared, MCM plans to expand production capacity at its Karachi plant – where a dedicated 2.5-megawatt solar power plant is under construction – to add a range of electric vehicles.

Under its Shangri-La plan launched in 2018, Chang'an Automobile is building electrical versions of all its 30-plus models by 2025.

"Definitely, it makes sense" for Chinese automobile manufacturers to use Pakistan as a manufacturing base for right-hand-drive electric vehicles, IHS analyst Gupta said, "because Chinese players can easily import parts and assemble electric vehicles in Pakistan, and later on the move to manufacturing as the market becomes bigger in the country." However, how feasible this is is a matter of concern due to the very bad electrical infrastructure within the Country.

Modified from source: South China Morning Post

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dpr-lahore-division · 3 years ago

Text

CM MESSAGE ON NATIONAL DAY OF SAUDI ARABIA

With the compliments of, The Directorate General Public Relations,

Government of the Punjab, Lahore Ph: 99201390.

No. 1569/QU/Zahid

HANDOUT(A)

LAHORE, Sept. 23:

Chief Minister Punjab Sardar Usman Buzdar has felicitated the people and government on the eve of the national day of the Kingdom of Saudi Arabia.

In a message, the CM extended the heartiest congratulations to the Saudi King, Crown Prince and the royal family adding that Saudi Arabia has witnessed a spate of developments and prosperity under its leadership. The strong Pakistan-Saudi Arabia relations are an example for the world while KSA is the locus of Muslims' reverence and spiritual attachment. The services of the Saudi royal family for Islam and Muslims cannot be overlooked; he stated and added that Pakistanis consider Saudi Arabia as their second home. It is satisfying that Saudi Arabia has always supported Pakistan on every occasion and the bilateral relations will continue to prosper, concluded the CM.

*****

No. 1570/QU/Zahid

HANDOUT(A)

CM FOR EFFECTIVE STEPS TO CONTROL DENGUE

LAHORE, Sept. 23:

Chief Minister Punjab Sardar Usman Buzdar has directed the cabinet committee, as well as line departments, to effectively work for the eradication of the dengue virus and made it clear that field teams' performance will be constantly reviewed.

In a statement, the CM asked the line departments to ensure cent per cent implementation on the anti-dengue plan adding that effective surveillance should be ensured in Lahore, Rawalpindi and other cities. The commissioners and DCs should personally supervise anti-dengue steps; he said and asserted that the routine mantra of 'all good' will not be tolerated as he will personally monitor things. Every anti-dengue step will be audited along with daily evaluation of the performance, he stated. The line departments should ensure that the devised plan is executed as there is no room for any remissness, warned the CM.

*****

No. 1571/QU/Zahid

HANDOUT(A)

CM VISITS COLUMNIST'S RESIDENCE FOR CONDOLENCE

LAHORE, Sept. 23:

Chief Minister Punjab Sardar Usman Buzdar visited the residence of columnist and anchorperson Muzamal Soharwardi and extended sympathies to him over the death of his father Azam Sultan Soharwardi. The CM offered fateha for the departed soul to rest in eternal peace and tranquillity.

*****

No. 1572/QU/Zahid

HANDOUT(A)

PUNJAB GOVT IS WORKING TO ELIMINATE INHUMAN TREATMENT METED OUT TO THE DETAINEES- USMAN BUZDAR

LAHORE, Sept. 23:

Chief Minister Punjab Sardar Usman Buzdar inspected the new version of the police prison van which is equipped with the required conveniences for the prisoners.

SSP (motor transport) briefed him about amenities provided in the van while IG Police, Additional Chief Secretary (Home), PS to CM and others were also present.

The CM expressed the satisfaction that comfortable seats have been arranged along with the facility of the exhaust fans. Fans have also been fitted for police officials. The government has approved procurement of 72 such police prison vans with 95 crore rupees while comfortable seats and exhaust fans will be fixed in 300 police prison vans. Being human beings, the prisoners also deserve necessary facilities and this step will ease their movements, he maintained.

*****

No. 1573/QU/Zahid

HANDOUT(A)

CM TAKES NOTICE OF NEWS ITEM

LAHORE, Sept. 23:

Chief Minister Punjab Sardar Usman Buzdar has taken notice of a news item about the false entry of corona vaccination at Kot Khawaja Saeed Hospital and sought a report from the health secretary within 48 hours adding that action be initiated against those responsible for the oversight.

*****

No. 1574/QU/Umer

HANDOUT(A)

CM ADDRESS JOINT COOPERATION COMMITTEE MEETING OF CPEC AUTHORITY THROUGH VIDEO LINK

LAHORE, Sept. 23:

The Punjab government is thankful to Chinese for extending cooperation on CPEC Projects in the province and it is sanguine that Pakistan-China relations are touching new heights in the tenure of PM Imran Khan.

Chief Minister Punjab Sardar Usman Buzdar stated this while addressing the joint cooperation committee meeting through video link under CPEC Authority on Thursday. The CM thanked the Chinese government for cooperation with the Punjab government and stated that completion of CPEC projects in Punjab will give further impetus to Pakistan-China relations. Punjab has highest share in national GDP; he pointed out and invited the Chinese investors as conducive environment is provided in the province. The Chinese investors will be provided every facility for setting up industry and special incentives will be provided to them, he added.

While giving updates about CPEC related projects in the province, the CM informed the participants that special economic zone Allama Iqbal Industrial City has been operationalised in Faisalabad. 1050 acres land is earmarked for China zone in it while land lease policy is being given final shape for the benefit for Chinese investors, the CM disclosed. He announced to welcome Chinese assistance for establishing Pak zones free from foot and mouth disease of animals in Punjab and pointed out that agriculture sector has a lot of growth potential in CPEC phase-II. He thanked the experts assisting in social economic projects which were shared with Chinese experts’ team for their feedback. Though the last one and a half year’s period has proved very tough for Pakistan and global economies, the Punjab government has made significant progress in completing ongoing CPEC related projects, the CM added and divulged that new project proposals relating to agriculture, livestock, water reserves and infrastructure development have been devised and were same would be presented before next joint working group meeting for approval. The CM observed that agriculture would be promoted in Punjab by constructing dams and canals at different areas. It is planned to construct dams in Vohwa, Sanghar and Chachar hill-torrents, he stated and added that a new canal is being planned in Rahim Yar Khan to irrigate Cholistan desert. Similarly, 135-megawatt Taunsa Hydropower Project is leading CPEC energy projects and this would be a best decision to put it in the priority list of CPEC energy project, concluded the CM.

*****

No. 1575/QU/Umer

HANDOUT(A)

CM MESSAGE ON PASHTOON DAY

LAHORE, Sept. 23:

Chief Minister Punjab Sardar Usman Buzdar has said Pashtoons are brave and strong people while the Pashtoon culture enjoys the traits of diversity and individuality to give added blend of beauty to this culture.

In his message, the CM said the Pashtoon culture is ancient and very convincing. It also beautifully reflects multiple shades of Pakistani culture. The Pashtoon culture is universally acknowledged and the purpose of celebrating this day is to promote the passions of interprovincial harmony. The celebration of days of different areas and regions promote bonds of unity and affinity in the country, concluded the CM.

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xtruss · 3 years ago

Text

China-Pakistan Trade Relations Further Deepen As Enterprises From Two Sides Establish Stronger Ties

— Chu Daye and Xiong Xinyi | August 2, 2021

A view of the Karakul Lake on the Karakoram Highway (KKH) in Northwest China's Xinjiang Uygur Autonomous Region on June 8, 2021. The KKH is the only land route linking Pakistan with China. Photo: VCG

The operations of Chinese enterprises in Pakistan remain normal with both sides strengthening protection for Chinese nationals, a source close to the matter who asked to remain anonymous told the Global Times at a forum in Beijing on Thursday, adding that the Pakistani military has been providing protection for local Chinese enterprises including his company, and the Chinese embassy in Pakistan has warned Chinese nationals not to go out unless necessary, according to the source.

The move came after nine Chinese and four Pakistanis were killed in a shuttle bus blast on July 14 in Kohistan region in northern Pakistan and the blast was confirmed to be a terrorist attack on July 16. The construction of the Dasu hydropower station in Pakistan has since been suspended, according to China's Foreign Ministry.

The impact of the recent attacks will subside eventually and will not affect trade between the two countries and China-Pakistan cooperation projects under the Belt and Road Initiative (BRI), a Pakistan diplomat told the Global Time at the 2021 China-Pakistan Trade Forum on Thursday, emphasizing that Pakistan is giving maximum priority to the safety of Chinese nationals.

The Pakistani Foreign Ministry issued a statement on Wednesday stating that Pakistan attaches great importance to safety and security of Chinese nationals, projects and institutions in Pakistan.

Pakistan aims to boost the trade between the two countries, and welcomes more Chinese traders and further enhances cooperation in trade and business with China, according to Pakistan officials at the forum.

Pakistan could overtake India in trade with China in just eight years, even though its trade volume with China was only one-fifth of India's in 2020 as the relationship between the two countries has become stronger and investment has been increasing, recording a 34 percent hike in exports from Pakistan to China year-to-date, Badar U Zaman, commercial counsellor of the Embassy of Pakistan in Beijing, told the Global Times on Thursday.

"India has a population five to six times larger than that of Pakistan, so I hope that it will take eight to 10 years to overtake them," said Zaman.

The 2021 China-Pakistan Trade Forum took place in the Pakistani Embassy in Beijing on Thursday even under the impact of recent attacks, amid the 70th anniversary of establishment of diplomatic ties between the two countries, setting to strengthen the bilateral trade relationships, attract more Chinese traders and promote high-quality products from Pakistan in China

Given the two country's iron-clad relationship and the substantial progress already made in construction of the multi-billion-dollar China-Pakistan Economic Corridor (CPEC), projects could provide economic propulsion to boost bilateral trade, said analysts.

Multiple Chinese enterprises from a variety of industries have settled in Gwadar Port in Pakistan, which have been cooperating with local companies across different industries such as fisheries by providing them with refrigeration equipment and processing equipment, Liu Zongyi, secretary-general of the Research Center for China-South Asia Cooperation at Shanghai Institutes for International Studies told the Global Times on Sunday.

Liu noted that high-quality seafood products from the Gwadar Port now can be directly shipped to Northwest China's Xinjiang Uygur Autonomous Region as CEPC has provided improved infrastructure for the country.

A container ship docks at the Gwadar port in Pakistan. Photo: Xinhua

Pakistan's exports to China in the first quarter of 2021 totaled $888 million compared with $526 million during the same period in 2020, a year-on-year increase of 69 percent, Moin ul Haque, Pakistani Ambassador to China, tweeted in May.

The construction of the first industrial park under the CPEC framework has entered the full construction phase in Pakistan's Rashakai Special Economic Zone in May, as the strategic location of the Rashakai Special Economic Zone gives it great potential to develop export-oriented industries for Central Asia, per media reports.

Chinese scholars studying China-Pakistan relations also pointed out there are still spaces for both China and Pakistan to further deepen the bilateral trade, while Pakistan's exports to China have been booming since 2020 as China's imports from Pakistan reached $2.12 billion, an increase of 17.5 percent from the previous year, according to data from the Ministry of Commerce.

There could be more collaboration for enterprises from two sides in developing and manufacturing products together as there are only a handful of projects and products jointly funded and delivered by companies from the two countries, said Zhou Rong, a senior researcher at the Chongyang Institute for Financial Studies at Renmin University of China.

Zhou vowed that "made in China" has the potential to turn into "made in CPEC" since a large amount of Chinese capital especially of which from private enterprises can be invested to manufacture products jointly with Pakistani enterprises.

Such collaboration could also help Pakistan to upgrade its design and manufacturing in production in a bid to expand its overall exports.

Liu echoed Zhou's opinion emphasizing that China has been cooperating with Pakistan to develop its industries not only to boost Pakistan's exports to China, but also to help the country become a manufacturing base and industrial hub especially in manufacturing to increase Pakistan's exports to the rest of the world.

Experts noted that China has been working closely with some of traditionally strong industries in Pakistan such as cotton, textiles, and agricultural by offering technical skills training and exporting advanced equipment to Pakistan, as such industries could provide some of the potential items Pakistan could export to China including cotton, sugar, mango, and textile products which there is a great demand in China.

Moreover, Pakistani enterprises building closer ties with Chinese companies could promote more high-quality products to be exported to China as well, which have not been widely recognized by Chinese consumers including large-sized bath towels, soccer balls, generic drugs and generic medical products, said Zhou.

As of the end of 2020, there were a total of 70 projects under the CPEC - a landmark project of the BRI launched in 2013 - with 46 projects have been completed or under construction, the People's Daily reported in December.

China has been Pakistan's biggest trade partner for six consecutive years since the 2015 fiscal year. China is also Pakistan's main source of imports and second-largest export destination, according to data from the Economic and Commercial Office of the Chinese Embassy in Pakistan.

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