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06 RESCUE 24 EUROPE`S FOR PAKISTAN`s ECONOMY POST BREXIT FUTURE?

EDITOR IN CHIEF 32 TRENDS IN Meher Kashif Younis CONSTRUCTIOIN METERIAL

EDITORS Syed Afraz Ali Nazish 45 THE IMPACT OF Zamir A. Naushahi LEADERSHIP GDP

COORDINATOR Amir Dar

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PRODUCTION MANAGER Kamran Ahmed Kami

BUREAU CHIEF ISLAMABAD Javed Mahmood Choudhry

SPECIAL CORRESPONDENT BAHRAIN Ayaz Saleem 12 US IRAN CONTRIBUTORS CONFLICT WILL HURT GLOBAL Zahid Riffat 50 DOWNFALL Amir Raza OF FILM INDUSTRY Tahir Nasim Fatima Khan Barki Faran Ali Bukhari Naeem Zaidi Rao Shehzad Ahmed Ansar Malook Bhatti Nimra Ali Shah

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LETTER TO EDITOR: Feel free to mail us at: [email protected] FOOD SERVICES POSTAL ADRESS: 54 TRENDS IN 2020 Quarterly MODEL MAG, 7-E, Samanberg, Johar Town, Lahore - 54782, Pakistan. Tel: 92-42-35222660 Cell: 0300-4214400, 0321-4006247 HALAL ORGANIC www.modelmag.com.pk 62 [email protected] COSMETICS EMERGING 20 THE IMPACT OF WORLD ORDER Reg No. PCPB/353-M Vol.05 Issue: 02 Oct-Dec, 2019 83 PAKISTAN Issue: 03 January-March 2020 DIGITAL FUTURE Price: Rs.1000/-

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CORONA LOCKS DOWN ENTIRE WORLD, SHATTERS ECONOMY _ HOW TO MANAGE THIS MENACE?

In just few weeks, the corona virus has locked down the entire world and also caused an unexpected Meher Kashif Younis serious setback to the global EDITOR IN CHIEF economy as stocks markets, prices of crude oil and other major commodities are continuously tumbling. Likewise, international flights and global trade have been has caused to the world in just to save the country and people restricted to minimum to pre- few weeks, it is premature to from this pandemic. For empt the rapid penetration evaluate it. However, the global example, on the advice of the of this deadly pandemic that lock down triggered by this government, the educational had already engulfed more virus indicates that the global institutions have announced than 150 countries in the economy is sustaining billions two weeks holidays in Punjab, world. The epidemic that of dollars loss every day that is KPK, Islamabad, Balochistan surfaced from Wuhan city of bound to slowdown the global while Sindh government China in February 2020, has economic growth in 2020. has shut down educational now turned into pandemic, institutions till end May 2020. engulfing the entire Europe, Worth noting is that the airline The federal and provincial China, Iran and also affecting industry, tourism, hoteling governments have banned the America, Britain and many and stocks markets are on the public gatherings and holding other countries. China is still forefront in bearing massive of events to minimize public on top position although the loss and shocks in the wake of interaction. number of casualties in the massive outbreak of corona country has dropped to less virus. However, the real challenge than 12 coronavirus victims per for the Pakistan government day as compared to 80 and CORONA VIRUS AND is not to fight only against 90 deaths in a day when the PAKISTAN the pandemic, but take some virus was at its peak in China, Seeing lockdown in different measures that protect the the world’s largest economy countries, Pakistan too has national economy from the and most populated country. minimized flights operations, possible slowdown and make A few days ago, America sealed western border with efforts that lead to minimum has suspended its flights Iran, Afghanistan and China losses to different business operations to Europe and and suspended imports of industries and sectors in some other countries that are vegetables and fruits and the country. In Pakistan, fighting against corona virus some other items from these economic activities are already while Saudi Arabia too has countries to keep corona away experiencing a slump for over a completely halted its flights’ from the country. Pakistan year’s period, and the ongoing operations to overcome the government had already taken pandemic can further eclipse penetration of this virus. How some precautionary measures the economy and business in much financial losses this virus the country.

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Muhammad Zahid Rifat economy after overcoming the in Pakistan as he has emphat- serious crisis and challenges ically been promising fiscal rime Minister Imran Khan it has been facing in recent development in the country and his government lead- months. within the ongoing calendar Pers are saying that as a year. result of tough and unpopular While addressing the World but direly needed decisions Economic Forum at Davos, After a tumultuous first 12 taken last more than a year, the Switzerland, in January2020, months since Pakistan Tehr- national economy has come Prime Minister Imran Khan said ik-e-Insaaf (PTI) government out of the ICU and is stable that the took over power for the first and now the focus is on pro- time in Islamabad in August viding maximum possible relief YEAR 2020 2018, the fiscal indicators have within the available resources been positive and somewhat in all sectors to the people IS GOING TO encouraging for the country in particularly those in less-de- recent months. veloped areas and earning low BE ONE OF incomes. In September 2019, Pakistan’s ECONOMIC current account dropped by International financial institu- as much as 80 per cent to a tions and rating agencies are GROWTH FOR 41-month low of $ 259 million, also appreciative of the mea- with a 111.5 per cent rise in sures being taken by PTI-led PAKISTAN. foreign direct investment (FDI) allies’ government for ensuring His words echoed more or less and 194 per cent increase in full recovery of the national positively to the people back private investment. With FDI

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of $ 1.34 billion during the first half of current financial year, a 68.3 per cent increase was registered in January 2020 compared to $ 798.8 million of the same of the previous fiscal year. In February 2020, the reserves of the State Bank of Paki- stan have also hit a 21 month high at $ 11.586 billion. The economic positivity was also reflected by the Karachi Stock Exchange (KSE) which regis- tered a 16-month high crossing the 42000 point mark after a cumulative increase of 13000 points in four months. July last year. The agreement already lost 50 per cent of its The financial development was designed to address a value (devaluation) against the developments of Pakistan have multitude of macroeconomic US dollar. However, in the six also been duly recognized imbalances spearheaded by a months since the IMF bailout globally as well, with Moody’s balance of payment crisis. agreement, the Pakistani Ru- Investor Service uphgrading pee- US Dollar exchange rate Pakistan’s economic outlook The PTI federal government has been eased from around from negative to stable in De- was greatly criticized for taking Rs 165 to Rs 155 as of February cember 2019. over nine months to go to the 2020. IMF. The Finance Ministry offi- THE WORLD BANK cials revealed at that time that While the federal government’s ALSO ACKNOWLEDGED the initial plan under former delayed response had aggra- PAKISTAN AS ONE OF Finance Minister Asad Umer vated the currency exchange had been to seek aid from crisis in the currency, the THE TOP 10 “MOST IM- other friendly countries instead financial analysts argued that PROVED” COUNTRIES of approaching the Fund, for its foundation were laid by IN THE EASE OF DOING which a Finance Bill was also the previous Pakistan Mus- BUSINESS INDEX. passed about 12 months ago. lim League –Nawaz (PMN-N) federal government whose While there were positives The delay meant that by the aplenty, almost all of them Chartered Accountant turned time the government imple- Finance Minister Muhammad have in the aftermath of Pa- mented an IMF instructed mar- kistan reaching a 13th bailout Ishaq Dar had kept the Pa- ket driven currency exchange kistani Rupee-US Dollar ex- agreement with the Interna- rate, The Pakistani Rupee had tional Monetary Fund (IMF) in change rate artificially afloat around the 100 mark at the stock exchange. According to a local finan- cial expert contacted by this scribe, there has been an an- nual 5 per cent depreciation for the Rupee against the US Dollar since at least the 1970s, Whenever you fix the value artificially like former Prime Minister Shaukat Aziz, who fixed it around 60-65 or Ishaq Dar at 100, that appreciation is not allowed and when you do that , the current rates snap back into its actual place after the period of artificial valuation as the currency markets work on trends and sentiments, this snap forms a self-financing prophecy which resultantly generates a multiplier effect for the masses. However, the and we have seen the Pakistani critics argued that with the Rupee fall over 40 per cent inflation being cost-push and and not the 20-25 per cent not demand-pull, the enhanced it would have fallen over the rate would not suffice in ad- previous four to five years. dressing it. Furthermore, the high interest rate is attracting While the IMF-dictated policies overseas investment in trea- steered the national economy sury bills. towards macro corrections, the impact on the masses by and The financial experts main- large was somewhat jarring. tained that the high invest- Furthermore, the above-men- ment was owing to the trade tioned delay in agreeing to the whereas overseas investors are IMF terms meant that by the putting their back home owing end of August 2019, inflation to the high interest rate which tion targets, analysts believed had hot an 87-month high of is a “hot money” as such. that the deficit this time might 11.6 per cent , January 2020 be somewhat unprecedented. saw a r high inflation rate of WHEN YOU ARE GET- 14.6 per cent which the State TING HOT MONEY OW- Financial experts stated that Bank of Pakistan declared as ING TO THE HIGH IN- historically the highest was the being “transitory”. 8.8 per cent deficit in 2013, this TEREST RATE, YOU ARE time it is going to be the high- RELUCTANT TO REDUCE est, last year’s revenue collec- THE INTEREST RATE, ES- tion was Rs 3.8 trillion now the PECIALLY WHEN THERE federal government has it up to Rs 5.5 trillion, normally we aim ARE NO TRIGGERS FOR at for 18-20 per cent increase GROWTH. in the budget but this time it A former spokesperson on is a rise of as much as 45 per national economy for the cent which is quite unprece- PTI, Farrukh Saleem, on be- dented to say the least. ing contacted said that the federal government has been They indicated that there will trapped by this hot money, be additional sales tax because they have attracted the $ 2.2 they have not been able to col- billion owing to high interest lect direct taxes and the short- rates through treasury bills and fall therein was evident, if you rupee convertible accounts have collected Rs 2.083 trillion whereas the interest in the US in the first six months, then you was 1.75 per cent while Paki- cannot clearly add over Rs 3 stan was offering 13.25 per trillion in the remaining period cent, so they are borrowing of the ongoing financial year, The IMF conditions coupled US dollars and investing them and the easiest way was to with the, intentional on unin- here, if the government powers collect sales tax by increasing tentional, negligence of the the interest rate, such investors gas and power tariffs and also federal government leading up will run away. to the bailout, continue to take their toll on the masses at large In November 2019, the main with persistent increase in pric- tax generation and collection es of gas, power and fuel Fur- agency Federal Board of Rev- thermore, while inflation had enue (FBR, reported a shortfall caused hike in the prices of of Rs 220.4 billion in revenue commodities and food items, collection. On the whole a Rs 1 mismanagement saw shortag- trillion shortfall is expected on es of basic dietary ingredients the revenue generation target like tomatoes, wheat and sugar. of Rs 5.230 trillion which was revised downward in Decem- The federal government has ber 2019 from the original Rs attempted to address the infla- 5.503 trillion at the start of the tion through the State Bank of fiscal year. Pakistan by maintaining a high policy rate at 13.25 per cent, While it is normal for Pakistani providing the increased inter- governments to be over-ambi- est rate as a savings incentive tious in fixing revenue genera-

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the fuel prices. ON THE OTHER HAND, OFFICIAL SOURCES ON BEING CONTACTED MAINTAINED THAT THE HIGH BUDGET GOALS WERE SET TO BASED ON THE GROWING NUM- BER OF TAX PAYERS AND INCOME TAX FIL- ERS IN THE COUNTRY, THE 2.7 MILLION TAX FILERS FOR TAX YEAR 2019 WAS ALMOST TWICE THE NUMBER OF FILERS IN THE PRE- to bolster the national econ- federal and provincial govern- omy by filling the fiscal gaps ments in Islamabad, Lahore VIOUS YEAR , BUT STILL caused by misappropriation and Lahore despite having A FRACTION OF THE which had resulted in the been disqualified by the Su- NUMBER OF PROSPEC- promulgation of the Nation- preme Court of Pakistan. Fur- TIVE TAX FILERS INDI- al Accountability (Second thermore, the PTI’s critics point VIDUALS ARE THERE Amendment) Ordinance 2019 to Jahangir Tareen and other in December last. business and mill owners in WHO COME UNDER THE the PTI’s federal and provincial TAX NET. Even so, given the fiscal impact cabinets for benefitting from The PTI federal government felt by the masses in the first the financial crisis like inflated had come to power over its one and half years of the PTI sugar prices. pledges during the election rule, a significant percentage campaign to carry ruthless of the populace has become Critics emphasize there was accountability and create a more skeptical. Critics, mainly a lack of economic growth in corruption free Pakistan and with political affiliations with the country which even Prime transparency which meant the former ruling parties, have Minister Imran Khan’s aide greater scrutiny on tax returns blasted such measures for be- on commerce conceded and and a crackdown on mas- ing what they called “selective also questioning how the high sive corruption which Prime accountability” designed more interest rate could result in any Minister Imran Khan has been to target political opponents progress for local businessmen. repeatedly asserting was the than for any benefit to the na- tional economy. Punjab Government’s financial root cause and predominant advisor Dr Salman Shah, how- reason behind Pakistan’s eco- This rings truer given the ever, pointed out to the extent nomic woes, crisis and chal- continued influence of former of the economic crisis that the lenges. PTI Secretary General Jahan- PTI had inherited and main- The federal government aims gir Khan Tareen over the PTI’s tained that the worst was over. He said on being contacted “ We have carried out painful reforms—made the exchange rate market-based, which led to massive devaluation and inflation particularly in energy products, and food inflation even more so, but we have been firefighting to ensure that the more vulnerable segments are brought into the social safety net not to mitigate the impact of macro adjustment. The likes of Ehsaas program to address inequality and Kamyab Jawan Program to provide opportunities to the youth are prominent examples without. war adversary, Beijing (China), in this regard”. which continued to dictate IN FACT, THE $ 2.2 BIL- the great game changer Chi- Dr Salman Shah further said LION THAT HAVE COME na-Pakistan Economic Corri- “We need to see why we dor (CPEC) between the two repeatedly go to the IMF. MEANS THE DOMESTIC BANKS NOW HAVE AN time-tested friendliest neigh- Structural transformation are boring countries. needed in Pakistan’s produc- EXTRA $ 2.2 BILLION tion system—agriculture, indus- WHICH THEY LEND TO Relaxation at the counter-ter- try or services—to improve our THE PRIVATE SECTOR…. ror watchdog Financial Action productivity and export com- when that happens, the curve Task Force (FATF) was one of petitiveness. Import substitu- would come down, bringing many financial and geo-polit- tion with domestic production, the interest rates down”. ical benefits that Islamabad and export promotion is im- will be seeking in exchange for portant. Car manufacturing, Prime Minister Imran Khan’s letting the IMF run its eco- for instance, has been declin- dealings in Davos, during his nomic affairs. It was based on ing in the country because a maiden visit, where he had met IMF instructions that Pakistan lot its constituents are import- US President Donald Trump has been asked to keep the ed--- that needs to change. In and IMF President Karistalina interest rate higher than the agriculture, owing to devalua- Georgieva were also being inflation rate, with the feder- tion our wheat has become the seen as evidence of traction al government having been cheapest in dollars, hence it is that Pakistan’s regional role, barred from borrowing money being increasingly smuggled, particularly its peace efforts in from its own central bank i.e. causing the current domestic neighboring war-torn Afghani- State Bank of Pakistan. shortage.” stan, was getting internation- ally. Dr Salman Shah said “The bor- Adding, he said “Meanwhile, rower feels the impact. If it is exchange realignment has The potential for increased US for consumption then there is made our exports more com- influence in the region, amid less consumption, if for invest-

petitive, but we need to make the continued search for sta- ment then there is less invest- them even more robust. Ener- bility in Afghanistan, and the ment. We are basically running gy and gas export sectors are standoff with Iran following the IMF program. As things being given regionally com- the killing of its Quds Force stand, we are meeting the indi- petitive prices. Yes, there are Commander Qassem Solei- cators and targets given to us. glitches, but they are being mani, could possibly be inter- However, the CPEC is a huge addressed appropriately. The preted in the power corridors factor in increasing the invest- uproar among the Faisalabad of Islamabad and Rawalpindi ment. Many foreign parties are textile businesses over energy as an opportunity for Paki- coming and buying areas in the prices is not as much as it was stan to make itself useful for special economic zones (lo- a few months ago. Similar- Washington again. However, cated in different parts of the ly, this so-called ‘hot money’ Islamabad would have to coun- country).The first drops of rain owing to high interest is not a terbalance any financial gains have come. demon that we were better off from Washington with its trade

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direct talks with the United States. Relations between the two nations began in the mid-to-late nineteenth century, when Persia was known to the west as Iran. Initially, while Persia was very wary of British and Russian colonial interests during the Great Game, the United States was seen as a more trustworthy foreign power, and the Americans Arthur Millspaugh and Morgan Shuster were even appointed treasurers-general by the Shahs of the time.

During World War II, Persia was invaded by the United Kingdom and the Soviet Union, both US allies, but relations continued to be positive after the war until the later years of the government of Mohammad Mosaddegh, who was overthrown by a coup organized by the Central Intelligence Agency and aided by the MI6. This was followed by an era of very close alliance and friendship between Shah Mohammad Reza Pahlavi›s regime and the US government, Persia being one of the US`s closest allies, which was in turn followed by a dramatic reversal and US - IRAN disagreement between the two countries after the 1979 Iranian CONFLICT WILL Revolution. Opinions differ as to the cause of the cooling in HURT GLOBAL relations. Iranian explanations include everything from the natural and unavoidable ECONOMY conflict between the Islamic FATIMA KHAN BARKI protecting power in Iran. Revolution on the one hand, Contacts are carried out and perceived American ran and the United States through the Iranian Interests arrogance and desire for have had no formal Section of the Pakistani global hegemony on the other. Idiplomatic relations since Embassy in Washington, D.C., Other explanations include 1980. Pakistan serves as Iran`s and the US Interests Section of the Iranian government›s need protecting power in the United the Swiss Embassy in Tehran. for an external bogeyman to States, while Switzerland As of 2018, Supreme Leader furnish a pretext for domestic serves as the United States› of Iran Ali Khamenei banned repression against pro- democratic forces and to bind the government to its loyal constituency.

THE UNITED STATES ATTRIBUTES THE WORSENING OF RELATIONS TO THE 81–1979 IRAN HOSTAGE CRISES, IRAN›S REPEATED HUMAN RIGHTS ABUSES SINCE THE ISLAMIC REVOLUTION, AND ITS GROWING INFLUENCE close to conflict during the points and safe-haven bond IN THE MIDDLE EAST. 20–2019 Persian Gulf crisis. yields fell. In short order, though, despite the continuing Since 1995, the United States The Trump administration was risks of a US-Iran conflict and has had an embargo on seen as having embarked on the implications that it would trade with Iran. In 2015 the the path of strengthening an have for markets, the view United States led successful informal coalition with Saudi that both sides would eschew negotiations for a nuclear deal Arabia, Israel, the United Arab further escalation calmed (the Joint Comprehensive Emirates and other Sunni Gulf investors and reversed these Plan of Action) intended states, with a view to rolling price movements, with equities to dismantle Iran›s nuclear back Iran›s influence in the even approaching new highs. weapons capabilities, and region. when Iran complied in 2016, That turnabout reflects two sanctions on Iran were lifted. Following the US assassination assumptions. First, markets The Trump administration of Iranian al-Quds commander are banking on the fact that withdrew from the nuclear deal Qassem Suleimani and Iran’s neither Iran nor the US wants and re-imposed the sanctions initial retaliation against two a full-scale war, which would in 2018. Since this time, Iraqi bases housing US troops, threaten both the Iranian relations between the United financial markets moved into regime and Donald Trump’s States and Iran have worsened, risk-off mode: oil prices spiked re-election prospects. Second, and the two countries came by %10, US and global equities investors seem to believe that dropped by a few percentage the economic impact of a

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conflict would be modest.

After all, oil’s importance as an input in production and consumption has fallen sharply since past oil-shock episodes, such as the 1973 Yom Kippur war, Iran’s 1979 Islamic revolution and Iraq’s 1990 invasion of Kuwait. Moreover, the US itself is now a major energy producer, inflation expectations are much lower than in past decades, and there is little risk of central banks a conflict would mean for raising interest rates following Moreover, the Iranian regime’s markets is equally mistaken. an oil-price shock. survival is more threatened Though the US is less by an internal revolution than dependent on foreign oil than BOTH ASSUMPTIONS by a full-scale war. Because in the past, even a modest ARE CLEARLY FLAWED. an invasion of Iran is unlikely, price spike could trigger a the regime could survive a broader downturn or recession, EVEN IF THE RISK OF war (despite a very damaging as happened in 1990. While an A FULL-SCALE WAR aerial bombing campaign) – oil-price shock would boost US MAY SEEM LOW, and even benefit as Iranians energy producers’ profits, the THERE IS NO REASON rally around the government, benefits would be outweighed TO BELIEVE THAT US- as they briefly did in response by the costs to US oil to the killing of Suleimani. consumers (both households IRANIAN RELATIONS Conversely, a full-scale war and firms). WILL RETURN TO THE and the ensuing spike in oil STATUS QUO ANTE. THE prices and global recession Overall, US private spending IDEA THAT A ZERO- would lead to regime change and growth would slow, as CASUALTY STRIKE in the US, which Iran badly would growth in all of the desires. Iran not only can major oil-importing economies, ON TWO IRAQI BASES afford to escalate, but it has including Japan, China, India, HAS SATISFIED IRAN’S all the incentives to do so, South Korea, Turkey and most NEED TO RETALIATE IS initially through proxies and European countries. Finally, SIMPLY NAIVE. asymmetric warfare, to avoid although central banks would provoking an immediate US not hike interest rates following Those Iranian rockets were reaction. an oil-price shock, nor do they merely the first salvo in a have much space left to loosen response that will build up as The assumption about what monetary policies further. November’s US presidential election approaches. The conflict will continue to feature aggression by regional proxies (including attacks against Israel), direct military confrontations that fall short of all-out war, efforts to sabotage Saudi and other Gulf oil facilities, impeded Gulf navigation, international terrorism, cyber-attacks, nuclear proliferation and more. Any of these could lead to an unintentional escalation of the conflict. dampened last year, owing to But this outlook ignored many According to an estimate by worries about an escalation remaining fragilities. JP Morgan, a conflict that in the US-China trade and blocks the Strait of Hormuz for technology war and the Now, despite Wall Street’s six months could drive up oil possibility of a hard Brexit. optimism, even a mild prices by %126, to more than Just as these risks – that is, resumption of US-Iran tensions 115£( 150$) a barrel, setting the “option value of waiting” could push global growth the stage for a severe global – were receding, a new one below the mediocre level of recession. And even a more has emerged. Leaving aside 2019. A more severe conflict limited disruption – such as a the direct negative impact of that falls short of war could one-month blockade – could higher energy prices, fears increase oil prices to well push the price up to 80$ a of an escalating US-Iran above 80$ per barrel, possibly barrel. conflict could lead to more pushing equities into bear precautionary household territory (a decrease of %20) But even these estimates do saving and lower capital and leading to a global growth not fully capture the role that spending by firms, further stall. Finally, a full-scale war oil prices play in the global weakening demand and could drive the price of oil economy. The price of oil growth. above 150$ a barrel, ushering can spike much more than a in a severe global recession basic supply-demand model MOREOVER, EVEN and a fall of more than %30 for would suggest, because BEFORE THAT RISK equities markets. many oil-dependent sectors and countries will engage in EMERGED, SOME While the probability of a precautionary stockpiling. ANALYSTS (INCLUDING full-scale war remains low ME) WARNED THAT for now (no more than %20, The risk that iran could attack GROWTH THIS YEAR in my view), the chances of oil production facilities or MIGHT BE AS TEPID AS simply returning to the pre- disrupt major shipping routes assassination status quo are creates a “fear premium”. GROWTH IN 2019. even lower (say, %5). The Hence, even a modest oil-price most likely scenario is that the increase to 80$ per barrel Markets and investors had situation escalates into a new would lead to a sustained risk- been looking forward to a grey area (indirect conflict and off episode, with us and global period of easier monetary direct clashes falling short of equities falling by at least policies and an end to the tail war) that would drive up the %10, in turn, hurting investor, risks associated with the trade risk of a full-scale war. At that business and consumer war and Brexit. Many market new baseline, the market’s confidence. watchers were hoping that the current complacency will look synchronized global slowdown not just naive, but utterly It is worth remembering of 2019 (when growth fell to delusional. The risk of a growth that global corporate capital %3, compared with %3.8 in stall or even a global recession spending was already severely 2017) would end, with growth is now much higher and rising. approaching %3.4 this year.

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DISRUPTING BUSINESS MODEL IS NOT ENOUGH WE NEED TECH INNOVATION TOO.

VILLE SATOPAA

e hear the word PRODUCT “innovation” all the Often, when people are talking about innovation, they are thinking Wtime. It has become about a product innovation. This could be the development of such a buzzword that we a new product, such as a 3D TV; a new feature in an existing forget what it means. product, such as a watch with Bluetooth; or an improvement in a product’s performance, such as the iPhone X compared For some people, innovation to the iPhone 6. This type of innovation is typically driven by means building the next technological advancements, and is visible to consumers. One Facebook. For others, it’s a example is Tesla’s electric vehicle, which is a product innovation in new way to cook an omelet. the automobile industry.

For the purposes of this article, let’s break innovation down PROCESS into two general categories: This is typically an internal operational innovation. It could involve using technology in manufacturing and supply chains, or even There are 3 reasons for the in sales and accounting methods. One of the best examples of growing number of shared process innovation is Henry Ford’s invention of the world’s first economy start-ups: moving assembly line. This process shortened the time it took to produce a single vehicle from 12 hours to 90 minutes. LOW BARRIER Over the last decade, one particular innovation - the shared economy - has sparked many more. This was a type of process TO ENTRY innovation, disrupting the business models of traditional The shared economy›s industries. Uber and Airbnb are popular examples of the shared business model innovation economy. Both firms have transformed the business models of is not typically capital- taxi companies and hotels, rejecting the asset-heavy model for intensive, as it utilizes access one that leverages existing under-utilized assets. to previously private resources, such as cars for Uber or homes E-commerce is another example of process innovation. Platforms for Airbnb. This lowers the such as Amazon and EBay facilitate the trade of goods between overhead for young companies suppliers and consumers without a physical retail store. or any individual with basic But can process innovations fuel the Fourth Industrial Revolution programming skills trying to alone? In this article, we’ll take a look at the growth of shared enter the market. economy start-ups, compare the two types of innovation and explore ways to find a balance between them. DISRUPTIVE THE HYPE AROUND SHARED GROWTH POTENTIAL ECONOMIES The shared economy increases The shared economy, best known for crowd-based marketplaces the available customer base, such as Airbnb and Uber, blossomed as the recession set in. It was as it enables customers who also a time of aggressive growth for social media. Technology can’t afford to own an asset platforms enabled the shared economy by providing access to access it on demand. For to idle assets such as hotel rooms and car rides. People with example, Boat bound, a US something to spare or share gained fresh streams of income. The leisure boat rental firm, offers international sharing economy was worth around 15$ billion in customers the chance to enjoy 2014, and is on track to reach 335$ billion by 2025, according to an afternoon on the water PwC. without the cost and burden of

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boat ownership. perceived upside seems huge. Often we hear about unicorns (start-ups valued at more than 1$ billion) making immense Since these start-ups connect amounts of money, and begin to think: “I could have done that producers and consumers if I had stumbled upon the right idea”. It’s easy to think these directly, and further depend on entrepreneurs just got lucky - that they picked the right direction the growth of both producers at the right time, and then leveraged technology to accelerate. and consumers for the success of the platform, they can often achieve exponential growth BUSINESS MODEL INNOVATION with network effects. Given the must be accompanied by technological innovation, too. If the massive growth that shared Smartphone had not been invented, we would have no ride- economy start-ups have hailing app. It’s important that we continue to reinvent the wheel. reached in the past few years, and the attention the media has given them, entrepreneurs are attracted to Uberizing the next industry.

An estimated 23$ billion in venture capital funding poured into the market between 2010 and 2016. Successful start-ups, such as Airbnb, have gained immense growth and valuation. In March 2017, Airbnb was valued at about 31$ billion - roughly the same as Marriott International after its acquisition of Starwood Hotels and Resorts Worldwide. “THAT COULD The Fourth Industrial Revolution will be driven by both types of BE ME” innovation. Product innovation has already fuelled technology- With disruptive growth enabled shared economy businesses. Disruptions such as quantum potential and a relatively computing, artificial intelligence and the Internet of Things will low barrier to entry, the also fuel business model innovation across traditional sectors such as healthcare, law and insurance. The relationship can be symbiotic. CREATING SYMBIOTIC HYPE Increasing interdependence between the two types of innovation, in an organic manner, would create balance and reduce the two key barriers to entry for product innovation - investment and talent. Here are several means of doing so: INVESTMENT THROUGH EQUITY CROWD FUNDING Crowd funding has been a popular shared economy means to fund new ideas. It can be as simple as a Kick starter project to raise money and interest, or as sophisticated as equity crowd funding. The latter enables individuals to buy shares in businesses before they list on the stock exchange. It can be lucrative for both the entrepreneur and the investor, by delivering bigger profits, but it brings greater risks. In Australia, one of the seven licensed equity crowd funding companies, Equities, is currently raising money for Xinja, Australia’s first independent digital bank. It has already raised more than twice its minimum target of AUD 500,000$ through investment parcels as low as AUD 250$. About 700 investors have each injected an average of AUD 1800$.

Equities anticipates unveiling more investment opportunities, including a gin distillery, brewery, boutique clothing company and food chain. The minimum investment will be as little as AUD 50$ and will be open to anyone over 18. Equity crowd funding provides a good foundation for generating shared value in the form of ownership, and allows anyone who wants to invest to do so.

Leveraging equity crowd funding would reduce the barrier to entry for product innovation. It would make capital easily and efficiently available, and encourage people with ideas for tech innovation to pursue them. emphasize its importance. So far, the shared economy has disrupted traditional sectors. TALENT THROUGH CROWD But it’s time we leverage it to SOURCING disrupt the way we innovate. Several platforms have emerged on which the shared asset is There are more Elon Musks and talent. They connect people looking for flexible and freelance Mark Zuckerbergs out there, employment with people hiring for short-term projects. with product ideas to fuel the Fourth Industrial Revolution. TRANSFORMATION THROUGH Equity crowd funding and EDUCATION talent crowd sourcing could Education institutes can play an important role by including encourage the necessary ”that practical, product innovation-based projects in their curriculum, to could be me” motivation.

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GLOBALIZATION IS MOVING

Past the U.S. and Its Vision of World Order

IFTIKHAR AHMED BHATTI Japan, and restricted India’s access to the American market. He vowed to hit Mexico with f globalization were ever going to unravel, the tariffs mere months after he agreed to a new beginning would probably feel something like version of a deal liberalizing trade across North Ithis. America. President Trump, the leader of the country that But globalization has become such an elemental built the world trading system, continues to feature of life that it is probably irreversible. disrupt international commerce as a weapon The process of making modern goods, from wielded in pursuit of national aims. He has airplanes to medical devices, has become so unleashed trade hostilities with China, placed mind-bendingly complex, involving components tariffs on steel made by allies like Europe and drawn from multiple continents, that a few unexpected tariffs will not prompt companies to swiftly close factories in China and Mexico and replace them with plants in Ohio and Indiana.

What does appear to be ending is the post- World War II era in which the United States championed global trade as immunization against future conflict, selling the idea that the free exchange of goods was a pathway toward a more stable world order.

American administrations forged rules governing disputes, enabling countries to trade with diminished fear of capricious political intervention. In ceding this role, Mr. Trump has to play along, instead seeking alternatives to weakened the rules-based trading system while trade with a suddenly mercurial United States. removing a counterweight to China, whose This year, Europe and Japan set in motion transactional approach to trade places scant a mammoth trade deal that generates fresh value on transparency and human rights. opportunities for their companies, while leaving American players at a disadvantage. “ONE THING IS REALLY CLEAR: THERE HAS GOT TO BE A RESET IN Under the Trans-Pacific Partnership, a separate THE WORLD TRADING SYSTEM,” SAID trade deal forged by 11 countries, Japan agreed to open its heavily protected market SWATI DHINGRA, AN ECONOMIST to agricultural imports, handing American AT THE LONDON SCHOOL OF farmers a lucrative opportunity. Days into his ECONOMICS. “IT’S ALL BREAKING AT presidency, Mr. Trump closed that window by THE SEAMS AT THIS POINT.” renouncing American participation in the deal. Now, European farmers have secured their own The trade war unleashed by Mr. Trump has broadened access to the Japanese market. injected higher costs and confusion into the global economy, forcing businesses to anticipate China has responded to Mr. Trump’s tariffs with the next venue for hostilities. American retailers levies on American goods, including soybeans, and manufacturers voiced that complaint on wood products, and machinery. At the same Monday in testimony to the Office of the United time, China has lowered tariffs on imports from States Trade Representative, ahead of Mr. countries like Germany and Canada, lifting the Trump’s plans to put tariffs on a further 300$ fortunes of American competitors in those billion worth of Chinese imports. nations, according to an analysis by Chad P. Bown at the Peterson Institute. United States could recreate those supply chains at home, but at a far higher co “This is now the For example, China doubled duties on American post-American world economy, one in which agricultural and fish products to an average of globalization is much more spotty,” said Adam 42 percent from 21 percent, Mr. Bown found. At S. Posen, president of the Peterson Institute for the same time, China lowered average tariffs on International Economics in Washington. “The the same wares from the rest of the world to 19 world is a riskier place, where access to markets percent. is a lot less sure.” Mr. Trump has sold his trade war as a means of In the Trump framing, the United States is best returning jobs to a forsaken American heartland. served by the unsentimental exploitation of its In his version, naïve presidents allowed other position as the world’s largest economy. It must nations, especially China, to steal factory jobs brandish threats of limiting access to its market from the United States. His tariffs will pressure to force other countries to capitulate to its multinational companies to bring those jobs demands. back.

But the rest of the planet is increasingly refusing But if that story makes for rewarding politics, it rests on antiquated economic assumptions

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about the global marketplace. more than a third was focused on Southeast Asia or Mexico. Mr. Trump’s trade war will probably not increase the number of American jobs, although it has COMPANIES THAT DO RESUME imperiled paychecks at auto plants and other MAKING GOODS IN AMERICAN factories that rely on imported components. What it will bring is higher prices for FACTORIES ARE LIKELY TO BUY manufactured goods, economists say, along with ROBOTS AND OTHER MACHINERY, uncertainty over the terms of trade. It is sapping RATHER THAN HIRING LARGE vitality from an already weakening world NUMBERS OF AMERICANS. economy. The calculus of technology and geography Entire supply chains — expansive linkages — never simple — has been rendered more of parts for factory goods — has formed complicated by Mr. Trump’s trade war. Canary, an across Asia, Latin America and Europe. In oil field Services Company based in Denver, has the meantime, American industries would be been seeking to shift purchases of equipment severely constrained. from Chinese to Mexican suppliers to avoid American tariffs, its chief executive recently The largest manufacturers use China as a asserted. base to sell products to the world, limiting their exposure to American levies. Caterpillar, Yet in refusing to rule out across-the-board the agricultural and construction equipment tariffs on Mexican goods, Mr. Trump left the company, operates factories in China, but sells corporate world guessing about the commercial many of its finished products within Asia. map. Where can a company invest without worrying about a fresh outbreak of trade Companies that are inclined to leave China are hostilities? That question hangs over the world more likely to move production to other low-cost economy even after the president relented on nations like Vietnam rather than bring work back threats to impose tariffs on Mexican goods. to the United States. Hasbro, the toy company, is considering shifting production to the United “It’s not so much you don’t know where to States, but Go Pro, the maker of mobile cameras, go,” Mr. Posen said. “There is no place to go. is looking at Mexico. In a world in which there is arbitrary use of commercial regulation by the United States, no A poll last month by the American Chamber cross-border investment looks to be as safe and of Commerce in China found that 40 percent useful as it used to.” of its member companies had moved factory operations out of China or were considering Companies are mostly hesitating, limiting orders doing so. Among those leaving, fewer than 6 and holding off on investments in the hope percent were going to the United States, while that time will bring clarity. A similar worry now discourages commerce in Britain, as it remains assault on the concept of a rules-based trading stuck in its Brexit quagmire. With no inkling system. on the rules that will govern future dealings The dispute with Mexico elevates the fear. The between Britain and the rest of the European Trump administration cited a domestic law Union, investment is slowing. created to enable presidents to cut off finance But Brexit is a regional affair. Mr. Trump’s trade to rogue regimes, deploying a remedy for unfair war is downgrading expectations for growth trade — tariffs — as a cudgel in an unrelated worldwide. dispute over immigration policy.

Globalization did not happen by government “THIS SET OF TARIFFS AGAINST design, and it will not be dismantled by political MEXICO IS COMPLETELY OUTSIDE THE predilections. Businesses will continue to tap world markets and trade across borders — a W.T.O.,” SAID MEREDITH CROWLEY, wealth-enhancing formula, even as many major AN INTERNATIONAL TRADE EXPERT economies have failed to equitably distribute the AT THE UNIVERSITY OF CAMBRIDGE bounty, leaving communities vulnerable to job IN ENGLAND. “IT’S JUST A BIG PUNCH losses. IN THE NOSE TO THE W.T.O.”

Still, the risks are considerable. Mr. Trump’s Among the institution’s members, the sense relentless focus on factory jobs has produced is deepening that its rules need updating. an unhelpfully nostalgic view of the American The organization was not built to address the economy, Mr. Posen said, obscuring the reality disruptive force of China, a colossal economy that 80 percent of the country’s output comes that has subsidized key industries while pursuing from so-called services industries. China’s a vast collection of global infrastructure projects retaliation to Mr. Trump’s tariffs makes it harder known as the Belt and Road Initiative. for American accounting, legal services and engineering companies to crack the Chinese Beijing has lavished credit around the world market. in exchange for promises that recipient governments use the cash to hire Chinese The escalating trade war has dealt a potentially construction companies, willingly doing business grievous blow to the workings of the global with authoritarian regimes from Egypt to Iran. commercial system, and especially to its de facto In conducting his trade war outside the W.T.O. referee, the World Trade Organization. framework, Mr. Trump has ironically bolstered China’s mode of operation — one in which Many of Mr. Trump’s tariffs have come with the bottom-line concerns take precedence over credibility-straining legal justification that they labor and environmental standards, while are required for national security. Trade experts national interests eclipse general principles. have derided his approach as an existential

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EUROPE’S POST - BREXIT FUTURE IS LOOKING SCARY won’t be known for some time, THE CONTINENT IS SUDDENLY but the EU slogan of “ever- FACING SERIOUS QUESTIONS deeper union” clearly took a hit on Jan. 31. ABOUT ITS FUTURE ROLE IN This setback is the latest in WORLD POLITICS — AND EVEN a series of body blows that the EU has endured over the IN THE TRANS - ATLANTIC past two decades. The first was the Balkan Wars of the RELATIONSHIP 1990s, where the EU proved unable to handle the conflict AMIR RAZA without calling in the United States. The next blow was the lvis has left the building, and Britain has left the European protracted euro zone crisis, Union. Although a few pundits claimed it would never which led to severe economic Eactually occur, Brexit did in fact happen. The full ramifications hardships in several countries, fueled considerable resentment between creditor and debtor comes to foreign policy—and nations, and ate up vast amounts of time and political capital. The especially national security third was the 2015 refugee crisis, which exposed deep divisions policy—Europe today remains within the EU and gave far-right nationalist movements and a collection of sovereign states illiberal leaders like Hungary’s Viktor Orban a major boost. whose interests often diverge, and that lack the hard power Brexit came next, followed by U.S. President Donald Trump, whose that is often needed to get hostility to the EU and repeated threats to leave NATO have sent things done. shock waves through European capitals. Past U.S. presidents have complained that NATO members weren’t pulling their TAKE THE QUESTION weight, but none of them ever made a credible threat to actually OF IRAN. THE TRUMP withdraw from the alliance. Trump is different: nobody in Europe is completely sure he won’t get up some morning and decide to take ADMINISTRATION the United States out of NATO. FOOLISHLY WALKED AWAY FROM THE For those of us who admire the values the European Union stands MULTILATERAL for and its many achievements over the years, these developments DEAL THAT HAD are deeply disheartening. For an eloquent but gloomy reflection along these lines, see the columnist Roger Cohen’s eulogy here. SUCCESSFULLY CAPPED IRAN’S NUCLEAR PROGRAM, A DECISION THAT THE EUROPEAN SIGNATORIES FAILED TO DISSUADE TRUMP FROM TAKING. They knew it was a blunder, and they made a few feeble attempts to keep the deal alive. But when the United States threatened to impose secondary sanctions on European firms or banks doing business with Iran, the proud nations of Europe promptly caved. This sort of bullying may eventually persuade any number of countries to create But I fear the problems Europe is facing go far beyond Britain’s alternatives to the dollar- decision to leave and raise serious questions about Europe’s dominated financial order, but future role in world politics. They also cast further doubts about in the short term, the United the future of trans-Atlantic relations. States had the leverage, and bullying worked. The problem is inherently structural: Apart from trade negotiations, where the EU generally speaks with one voice, the Or take the continuing civil bloc is neither designed for nor capable of producing a united war in Libya. Because Libya is policy on major strategic questions and backing that policy up an important transit point for with the requisite capabilities. Vast oceans of ink have been spilled migrants and refugees trying describing the desirability of a “common foreign and security to get to Europe from various policy,” and the EU has tried to manufacture the appearance parts of Africa, continued of unity by creating a quasi-foreign ministry (the European anarchy there is also a serious External Action Service) and appointing a high representative problem for Europe. That for foreign affairs as its supposedly official voice. But at the end is why German Chancellor of the day, the member states have jealously guarded their own Angela Merkel recently foreign-policy prerogatives and declined to equip the External convened a summit meeting Action Service or the high representative with the capacity to in Berlin to devise a cease-fire do much more than hold meetings and make speeches. When it among the warring factions in

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IN THEORY, ONE SOLUTION TO EUROPE’S DEMOGRAPHIC CRISIS WOULD BE TO ENCOURAGE GREATER IMMIGRATION FROM ABROAD. BUT AS THE 2015 REFUGEE CRISIS SUGGESTS, BRINGING IN EVEN SMALL NUMBERS OF IMMIGRANTS CAN HAVE UNPREDICTABLE POLITICAL CONSEQUENCES. Given the difficulties that European nations have had in Libya. The summit produced an agreement that promptly broke assimilating immigrants in the down, as such agreements often do. past, and the clear opposition to it from xenophobic The underlying problem, however, is that neither Germany nor nationalists, it is hard to see anyone else in Europe has the capacity to enforce any agreement this as an easy fix. that might be reached in the future, or even much leverage over the warring parties. To the extent that outside powers have any Bottom line: Although Europe sway over the Libyan situation, it is Russia and Turkey and several remains a wealthy continent Gulf States, not the EU or any of its members. with a large, mostly integrated market; its overall power is Then there’s Europe’s policy toward Russia. French President destined to decline further in Emmanuel Macron is increasingly worried about China, and he the years to come. seems to want to mend fences with Moscow to wean it away from The core problem, however, Beijing. This is sound geopolitics from France’s perspective but is that Europe thought it anathema to Poland and some nations in Eastern Europe. How can could transcend power Europe have a “common foreign and security policy” when it can’t politics, build a thriving even agree on its approach to a strategically important neighbor? liberal society, and get away without an independent Alas, Europe’s problems are bigger than just these conflicts of European approach to world interest. Europe is also facing a long-term demographic crisis, affairs. During the Cold the full impact of which is still not fully appreciated. It is now the War, the limitations of this world’s oldest continent, with a median age close to 45, and its approach were masked by working-age population is projected to decline by some 50 million the overwhelming role of the people by 2035. In the east, this problem has been compounded United States: by emigration, with young people heading elsewhere in search of economic opportunities. The EU didn’t need a comprehensive or coherent Croatia has lost 5 percent of its population since 2013, and foreign policy, because security Bulgaria’s current population is projected to drop by 23 issues were handled by percent by 2050. Fewer young people means slower economic NATO, and the United States growth, which means fewer economic opportunities, which in ran the show. Even so, the turn encourages more emigration, while an increasingly older major European powers still population imposes greater health care burdens on societies had competent and capable whose economies are less and less productive. Older populations military forces of their own, as also tend to be more religious, more sympathetic to nationalist part of NATO’s collective effort appeals, and less committed to the EU’s liberal ideals, creating to deter Soviet aggression in further troubles for the EU vision. Europe. www.modelmag.com.pk | MODEL MAG | 27 28 | MODEL MAG | www.modelmag.com.pk AGRICULTURAL INNOVATION & TECHNOLOGY

POVERTY REDUCTION IN DEVELOPING COUNTRIES

AKIF SATTAR poor live in rural areas, with most relying on farming for their livelihood. eveloping countries need to dramatically increase Poverty reduction efforts, thus, agricultural innovation and the use of technology need an intensive focus on raising Dby farmers, to eliminate poverty, meet the rising agricultural productivity, which has demand for food, and cope with the adverse effects of the largest impact of any, sector on climate change, says a new World Bank report released poverty reduction, roughly twice that of today. manufacturing. The relative stagnation in agricultural productivity in recent decades, particularly in Asia, South Asia and Africa “Boosting productivity in the where the vast majority of the poor live, underscores the agriculture sector can lead to more and need for new ideas to improve rural livelihoods. better jobs while enabling more people to move off-farm to cities to pursue Renewed investment to increase new knowledge and other opportunities. This requires ensure its adoption can help harness the large potential comprehensive reform of domestic gains to be made in agricultural productivity and, hence, agricultural innovation systems, more income, says the Harvesting Prosperity: Technology and effective public spending and the Productivity Growth in Agriculture report. cultivation of inclusive agricultural value It notes that nearly 80 percent of the world’s extreme chains with an increased role for the private sector,” said World Bank Group Vice President climate challenges. for Equitable Growth, Finance and Institutions, Ceyla However, the world is facing a widening Pazarbasioglu. “New technologies are improving access research and development (R&D) to and costs of information, finance and insurance in spending gap, even as government all sectors, including agriculture. This can help raise the funding for agriculture is reaching productivity of low skilled farmers, but only with the right new heights. In developed countries,

incentives and capabilities to develop and scale these investment in agricultural R&D technologies,” she added. was equivalent to 3.25 percent of agricultural GDP in 2011, compared with The report examines the drivers and constraints to 0.52 percent in developing counties. agricultural productivity and provides pragmatic policy Among the latter group, Brazil and advice. It notes that while in East Asia, crop yields have China invested relatively high amounts increased six-fold in the past four decades, contributing into agricultural R&D, while Africa and to the dramatic reduction in poverty in China and other South Asia had the lowest spending East Asian countries, it has only doubled in Sub-Saharan relative to agricultural GDP. In fact, in Africa and parts of South Asia, with corresponding half of African countries, R&D spending disappointing reductions in poverty. is actually declining. Governments need to consider both IN ADDITION, CLIMATE CHANGE, TOGETHER public and private research and WITH A DETERIORATING NATURAL technology transfer in strengthening RESOURCE BASE, WILL HIT AGRICULTURE their overall innovation system. Repurposing the current public HARD, IMPACTING THE POOR AND support for agriculture offers a VULNERABLE, PRECISELY IN AFRICA AND significant opportunity to revitalize SOUTH ASIA. public agricultural research systems, invest in agricultural higher education, The key driver for increasing agricultural productivity and and create the enabling conditions rising incomes is the adoption of innovative technologies to leverage private sector R&D. The and practices by farmers. This will enable farmers to private sector, in turn, can stimulate raise yields, manage inputs more efficiently, adopt new more rapid access to new technologies crops and production systems, improve the quality of for farmers. In developed countries, their products, conserve natural resources, and adapt to private companies contribute about

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half the total R&D spending targeting the needs of these trends and improving the broader farmers, and as much as one-quarter in large emerging enabling environment to encourage economies, such as China, India, and Brazil. Policy private sector contribution as well,” tools to encourage more private R&D in agriculture said World Bank Chief Economist include reducing restrictions on market participation, for Equitable Growth, Finance and encouraging competition, removing onerous regulations, Institutions, William Maloney, who is and strengthening intellectual property rights. the lead author of the report. While new communication technologies “Agriculture in Africa and South Asia faces an innovation make improving access to information, paradox. While the economic returns to and growth finance and insurance more feasible effects of R&D and knowledge diffusion are documented than before, small farmers face to be very high, research spending is decreasing in major barriers to adopting the new critical areas of the world and local universities and think technologies that such research efforts tanks are not keeping up. Policy makers in developing yield. countries need to give careful attention to reversing

TECHNOLOGY BASED AGRICULTURE IN PAKISTAN akistan is blessed to have %40 is available in abundance. The rest of the economic arable (plough-able) land. Most of projection can only be achieved through introducing Pthe countries on the world map fourth generation technologies based on internet do not have that percentage of land communication systems. for their agricultural growth. Though agricultural growth is not a prerequisite for The nexus of third generation and fourth generation a prosperous economy, yet, it can provide technologies is natural and was inevitable for further self-sufficient food and raw material for development. One had to adopt the automated many industrial products like textile and the digital systems for their industries in order to save industrial growth of any country is directly time and manpower. This combination was the dependent upon agriculture. Yes, industrial only way forward to meet fast growing demands growth can impact the economic outlook of the growing population. For instance, gigantic of the country provided the raw material infrastructural development had not been possible without automated cement production Pakistan. The concept of a model dairy farming has now units. Innovations related to the fields of become redundant, we need to develop fully automated engineering were not possible without and computerized modern dairy farms. The world has the intervention of fourth generation now gone beyond hand and vacuum bucket milking, to technologies. Digital age has changed the milking parlors that can milk dozens of cows at a the concept of engineering mechanics time. altogether. In short, the old techniques and practices will become irrelevant PAKISTAN IS STILL STRUGGLING WITH THE and impractical if one fails to adopt OLD PRACTICES IN THE DAIRY FARMING upcoming trends and technologies. AND WE ARE THUS FORCED TO USE TEA- The agriculture sector of Pakistan WHITENERS AND CHEMICALLY PROCESSED constitutes the largest sector of our MILK. economy and contributes about %21 of GDP. This sector has the potential to Pakistan is a country where we often experience floods contribute even more to the county’s in one year and drought in the very next season. Apart GDP, if we start tech-based agricultural from constructing small and big dams, we should focus practices. Pakistan needs to adopt a on water resource management for agricultural purposes. fourth generation innovative approach It is high time to replicate world-wide modern irrigation to the traditional and old agricultural techniques to enhance agricultural productivity. Sprinkler, techniques. drip and central pivot irrigation systems are the latest techniques, which ensure productivity with the small There is no doubt that agriculture amounts of water. Hence water can be saved by applying research institutes in Pakistan are very these modern tech-based methods. progressive and contributing much to agricultural productivity. Scientist Moreover, all these systems have now been digitized and and biotechnologists in Pakistan have operate through information technology, saving time and achieved the diversification in seed avoiding mismanagement. All the modern techniques development and moved to higher should be replicated after tailor made alterations value-added seeds, particularly in keeping in view our local settings, environmental factors, the crops sector. Resultantly, we are atmospheric conditions and topography. producing surplus of wheat, maize (pulses) and sugarcane, according to We also need to strengthen the weak linkage between the statistics of Pakistan Agriculture our farmers’ community and industry that has not been Research Council. However, all good able to transform our agriculture commodities as per practices are required to be adopted our local market requirements. For our agricultural throughout the country of Pakistan so commodities to compete in the international market that productivity of the ordinary farms is still not very far, provided we start establishing our may also increase like the productivity processing units in accordance to our agriculture at the research centers. yield. There is no denying the fact that technology and innovation can play a vital role in accelerating and For instance, environment and climate deepening the agriculture growth. We definitely need are the major external factors that to streamline inadequately organized research systems impact our agricultural growth leading for innovative solutions to sort out our problems related to food insecurity. Climate change to agriculture. By developing tech-based agriculture in projections accompanied by the Pakistan, we would not only be able to strengthen the rapidly changing weather patterns backbone of our economy we would also be able to lift needs to be studied through proper up the social standing of our rural populace. climate change research centers, so as to adopt mechanisms protecting us from excessive rain-fall, melting of glaciers, floods and, sometimes drought spells. Likewise we also need to focus on integrated pest management techniques and systematic surveillance for the prevention of pest, disease and parasites in crops and livestock in

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HOW TECHNOLOGY IS RESHAPING THE CONSTRUCTION INDUSTRY? SYED AFRAZ ALI NAZISH 100 years ago. advancements have always driven construction forward, hat do a pickup truck, Imagine what the jobsite so it’s odd that so many a nail gun, a portable would be like today without companies are slow to Wcircular saw, a cement technology. Without power adopt new tech. We’re able mixer truck, and a modern tools, we’d be cutting boards to build stronger, taller, hydraulic excavator all have in and drilling holes by hand. and more energy efficient common? The obvious answer Without heavy equipment, structures. Technology has is that they are all tools and laborers would be excavating made construction sites equipment commonly found sites and digging trenches with safer and workers more on construction sites today. shovels and pickaxes. Without efficient. It has allowed us to Another correct answer would the elevator, buildings would increase productivity, improve be that they are all pieces of only be a few stories tall. collaboration, and tackle more technology that didn’t exist The point is, technological complex projects. Today, new technologies SOFTWARE & MOBILE and automatically organizes in construction are being APPS critical files—no more shuffling developed at a breakneck Today there are software through files looking for old pace. What seemed like future and mobile solutions to help reports. tech 10, 20 years ago like manage every aspect of a More and more software connected equipment and construction project. From providers are forming strategic tools, telematics, mobile apps, preconstruction to scheduling, partnerships to allow you to autonomous heavy equipment, from project management seamlessly integrate your drones, robots, augmented and and field reporting to data with your other software virtual reality, and 3D printed managing your back office, solutions, making it easier than buildings are here and being there’s a software solution ever to run your business. deployed and used on jobsites out there to help streamline across the world. your processes and improve OFFSITE Here’s a look at some of the productivity. Most software CONSTRUCTION major areas where technology solutions are cloud-based, Offsite construction is is impacting and improving the allowing changes and updates typically used on projects construction industry: to documents, schedules, and with repetitive floor plans other management tools to be PRODUCTIVITY or layouts in their design made in real time, facilitating such as apartment buildings, According to research better communication and hotels, hospitals, dormitories, from McKinsey & Company, collaboration. prisons, and schools. construction productivity has Offsite is performed in a remained flat for decades. The Mobile technology allows for controlled environment and traditional method of design- real-time data collection and it works similar to an auto bid-build makes construction transmission between the manufacturing plant. At disjointed and siloed. Every jobsite and project managers each station, workers have construction site is different, in the back office. Cloud- all the tools and materials to presenting its own unique set based solutions enable on- consistently perform their task, of challenges and risks. This site employees to submit whether that be constructing makes it difficult to streamline timecards, expense reports, a wall frame or installing processes and increase and requests for information electrical wiring. This assembly productivity the way industries (RFIs), work records, and plant method of construction like manufacturing and retail other verified documentation. reduces waste and allows have been able to do. This can save hundreds of hours per year in data entry workers to be more productive.

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Offsite construction typically better decisions, increase quantities installed, these comes in two forms: modular productivity, improve jobsite systems can tell you how much and prefabricated. With safety, and reduce risks. With work was done each day, which modular construction, entire artificial intelligence (AI) and it can then compare against rooms can be built complete machine learning systems, your construction schedule with MEP, finishes, and fixtures firms can turn the mountains of and alerts you if your project already installed. They can be data they have collected over is falling behind. The AI also rooms as small as bathrooms the years on projects to predict detects deviations between or modules can be fitted future outcomes on projects installed components and together onsite to create and gain a competitive onsite work with models so larger spaces like apartment advantage when estimating you can quickly identify errors units. The modular units are and bidding on construction and avoid costly rework. transported to the construction projects. site and then inserted and SAFETY & TRAINING AI can improve worker attached to the structural As technology adoption productivity by reducing the frame. continues to ramp up in the amount of time wasted moving construction industry, one With prefabricated about the construction site to area getting a lot of attention construction, building retrieve tools, materials, and is improving safety. Of the components are built offsite equipment to perform certain 4,963 worker deaths in 2016, and then assembled or tasks. Workers are tracked 991 were in construction. installed once they have been throughout the day using Worker safety should be the transported to the construction smart phones or wearables. number one priority of every site. Prefabricated building Sensors installed on materials construction company and components cover everything and equipment track how technology solutions are from framing, internal and everything else is moving making it easier to properly external wall panels, door about the construction site. train and monitor workers to and window assemblies, floor Once enough data sets are prevent accidents and reduce systems, and multi-trade collected, AI can analyze how the rate of serious injuries and racks, which are panels with workers move about and worker deaths. all the ductwork, wiring, and interact with the site to come plumbing packaged together. up with solutions to reorganize AUGMENTED & VIRTUAL AI & MACHINE the placement of tools and REALITY materials to make them more Safety training and equipment LEARNING accessible to workers and operator training are two areas Construction firms are reduce downtime. where virtual reality (VR) could now using data to make have a strong impact on the By classifying and measuring construction industry. With VR, regulations. without needing to take breaks workers could get exposure to or go home for a good night’s environments such as confined DRONES sleep. Robots don’t get tired spaces or working at height in Drones are being used on from lifting bricks, applying a safe, controlled environment. jobsites in a number of ways. mortar and setting them in Drones can be used to quickly place or constantly bending Augmented reality (AR) is conduct jobsite inspections over to tie rebar. another technology that can and identify potential hazards greatly improve safety on the each day. They can also be In both these examples, construction site. Whether it’s used to monitor workers humans are still needed to allowing for a more detailed throughout the day to ensure perform some of the work. safety plan to be developed everyone is working safely. Both still require workers to or providing training on Drones are being used to take set up the robots and get them heavy equipment using actual photos of as work progresses started. For the bricklaying equipment on real sites with to create as-built models of robot, a mason is needed to augmented hazards, there are jobsites to keep everyone oversee the work, ensure bricks a number of ways that AR can informed of the changing work are correctly placed and clean be deployed on the jobsite. conditions each day. up the mortar after they’ve been set. SITE SENSORS Drones are also being used That can be deployed across to tackle more dangerous AUTONOMOUS HEAVY a construction site to monitor jobs, like bridge and building EQUIPMENT, MOBILE things like temperature, noise inspections. This won’t levels, dust particulates, and eliminate the need for workers, TECHNOLOGY & BIM volatile organic compounds to but it will mean that workers Autonomous heavy equipment, help limit exposure to workers. will need to be trained on using similar technology for how to use the technology to self-driving cars, is currently The sensors are mounted perform these tasks. being used on jobsites to throughout the construction perform excavation, grading, site and can alert workers ROBOTS and site work. Smartphone immediately when they are Current robots are good at and mobile apps have at risk from permissible doing simple, repetitive tasks made communication and exposure levels being reached. which is why we are seeing collaboration on projects Data from the sensors are things like bricklaying robots easier. Building Information collected and can be analyzed or rebar tying robots. Once Modeling (BIM) is a process to mitigate exposure levels set up, these robots can work that incorporates digital and keep workers safe and continuously to complete tasks representations of buildings in stay compliant with OSHA faster than human workers 3D models.

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NEW TRENDS AND DEVELOPMENTS IN HEALTH INDUSTRY OF PAKISTAN TANVIR ZAHID lenging. There are about 800 pharmaceutical companies which are operating in Pakistan. Only about a decade back, the number he pharmaceutical in- was around 600. Major global leaders also having a presence in dustry in Pakistan is the country. The industry presents a lot of growth opportunities Tgrowing at a rapid pace for the drug manufacturers being driven by the rising burden of contributing quite appreciably chronic diseases and launch of the national health insurance pro- significantly to the national gram. Quite obviously, inflation and Rupee devaluation are having economy. It is a bitter fact that a drastic impact on the operating units. during the last couple of years, national economy has been PAKISTAN’S PHARMACEUTICAL INDUSTRY IS UN- suffering due to bad economic DOUBTEDLY THRIVING DESPITE FACING SOME conditions and also been under strain due to the war against TOUGH CHALLENGES IN RECENT TIMES. NEW RE- terrorism. The national econo- SEARCH BASED PRODUCTS ARE ENTERING THE my is also facing the problem MARKET ALMOST EVERY DAY AND COLLABORA- of inflation, slow economic TION WITH INTERNATIONAL COOPERATION AND growth as well as the devalua- RESEARCH LABORATORIES IS HELPING IN AD- tion of Pakistani Rupee against US Dollar. VANCING THE HEALTHCARE SYSTEM ALTHOUGH FEW COMPANIES HAVE ALSO BEEN WITNESSING Pakistan’s pharmaceutical FLUCTUATIONS AND DIPS BUT STILL THE GROWTH and healthcare industries are very competitive and chal- FACTORS MOSTLY REMAIN POSITIVE. Another research study recently undertaken says that Pakistan’s Also, the process of procure- pharmaceutical sector has not seen the growth and dynamism ment of medicines by various one would expect from industries with an upward growth trajec- provincial governments has tory. It has also not been competitive internationally, with limited greatly improved in recent exports. years as a result of the compe- tition induced since Pakistan’s Furthermore, the pharmaceutical sector in Pakistan has devel- transition to a democracy way oped a top heavy structure in terms of market share, where the back in 2008. top 100 firms, out of a total of around 750, cater to as much as 97 per cent of the market. In other words, approximately other 650 HOWEVER, THERE ARE firms survive on only 3 per cent of the market. ALSO MANY CHALLENG- Together, the poor competitiveness and the skewed industry ES THAT THE INDUSTRY structure suggest that there are factors preening this sector from IS FACING WITH REGU- contributing to the growth of national economy and public health LATORY AND PRICING as much as it should be. CHALLENGES BEING AT As regards pricing, the regime of strictly enforced price controls THE TOP OF THE LIST. and extended price freezes has created incentives for register- WHILE THE FEDERAL ing drugs at very high margins. Over time, these margins are squeezed and drugs become unprofitable to produce. GOVERNMENT’S FO- CUS IS ON BOOSTING The presence of poor-quality medicines—sub-standard, spurious and counterfeit drugs in not evident in significant numbers in the THE PHARMACEUTICAL data available from the government drug testing laboratories. AND HEALTHCARE MAR- KET, THE INDUSTRY IS POISED FOR GOOD GROWTH WITH MANY OPPORTUNITIES ARE ALSO THERE OR AT- TRACTING FOREIGN INVESTMENT. While looking back at the Pakistan’s pharmaceutical industry, the picture has obvi- ously changed which is a good sign to say the least. In the early 1990s, the scenario was that Pakistan Pharmaceutical industry was occupied by the multi-national companies but the last about two decades or so, the scenario has completely changed. Out of the 386 operating units, 30 are multi-national compa- nies which are producing the drugs in the country. It is an encouraging sign for the local investors that the share of the national companies in gradu- ally increasing as the ratio, as per latest available information, of the multi-national compa- nies and national companies is 45 per cent and 55 per cent respectively. According to the latest figures available, the total volume of the Pakistan Pharmaceutical market is US $ 3.25 billion out of which as much as 50.18 per

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cent of the pie goes to the 10 Presently, the Pakistan Pharmaceutical industry is developing top pharmaceutical companies pretty steadily mainly due to the contributions by the multi-na- operating in Pakistan. tional companies personnel at various levels of management, pro- duction, quality assurance and supporting services. As regards the A major factor for the Pakistan research work, it is somehow being contributed by the multi-na- Pharmaceutical market is that tional companies .National companies are predominantly produc- drugs are available compara- ing and marketing generic products. Many companies throughout tively at low price to the con- the world are also more or less concentrating on the production of sumers and the Federal Health generic drugs. Ministry is not considering the price increase due mainly to CURRENTLY DUE TO THE DRUG ACT OF THE FED- the political influence. ERAL GOVERNMENT, FOUR TYPES OF DRUG MAN- The per capita expenditure on UFACTURING LICENSES ARE ISSUED I.E. FORMU- drugs usage is also the low- LATION, BASIC MANUFACTURING, SEMI-BASIC est in the region and also the MANUFACTURING AND REPACKING. world. Due to these factors, Pa- kistan Pharmaceutical industry The pharmaceutical companies traditionally adopt is facing a great challenge in four major marketing strategies for promoting their terms of increasing the revenue products:- and also to ensuring significant profits. As the population con- • Giving drugs free samples to doctors. tinues to grow rapidly, having • Providing details of their products through already crossed 212.82 million journal articles, opinion leaders and organizing figures at 2.40 per cent growth seminars to introduce their products to medical rate (according to figures avail- personnel as well as the public at large. able from Pakistan Economic • Gifts that hold the company logo or details of Survey 2018-19)), which is the one or multiple drugs to doctors and in health main factor contributing to institutions, and, increase in demand for drugs. • Sponsoring continuing medical education. Furthermore, the health aware- ness is also gradually increas- Pharmaceutical representatives, also popularly known as medical ing in the country which may representatives, are the major pharmaceutical marketing strategy be helpful in increasing the per for marketing and introducing their drugs directly to the physi- capita expenditure on drugs in cians. Typically, the expense of this sales force of any pharmaceu- the coming years. tical companies comprises anything ranging between 20 to 30 per that medicine prices would be cent of annual product revenues. However, with changing times linked to the Consumer Price and new developments, the pharmaceutical industry faces some Index (CPI), non-essential very serious strategic issues. medicines would be allowed an annual increase of 70 per cent While most of the pharmaceutical companies successfully employ of CPI whereas all other med- a host of marketing strategies to target various types of custom- icines prices would be permit- ers, the business and customer trends are continuously creating ted 100 increases every year. new challenges as well as opportunities. If the pharmaceutical companies want to improve their Return on Investment (ROI) Moreover, the process has also ratio, they have to gradually and more importantly rapidly adopt been simplified as pharma- new communication technologies and scientific and technological ceutical companies now have developments. to merely notify DRAP of the price increase 30 days in ad- THE PHARMACEUTICAL SECTOR POSTED 9.7 PER vance in writing. Additionally, CENT RETURN DURING YEAR-TO-DATE IN CALEN- the negative impact of rupee DAR YEAR 2019 OUR PERFORMING KSE (KARACHI devaluation has also been STOCK EXCHANGE) INDEX BY 4.8 PER CENT. overplayed since the pharma- ceutical companies negotiate One major reason for the out performance of the sector was the prices of Active Pharmaceuti- announcement in January 2019 by the Drug Regulatory Authority cal Ingredients (APIs) following of Pakistan (DRAP) , with the approval of the Federal Government local currency weakness. More- to allow a 15 per cent price increase for all medicines including 9 over, the natural price decline per cent for saving medicines, according to the analysts. of APIs with time ( as the prod- uct matures) and new raw ma- This price increase which only recently came into effect was terial entering the market act indeed a welcome relief for Pakistan Pharmaceutical sector. To as natural hedges against the provide some perspective, price controls on the pharmaceutical impact of rupee devaluation. sector have been in place since as early as in 2001 and has been a long standing Achilles for the sector. Finally, we also flag that the re- cent deterioration of relations Companies have thus been unable to increase prices, in response with India will also have a lim- to rising costs, due to factors such as rupee devaluation, rising ited impact on cost of imports inflation etc. This has resulted in companies such as Merck and for the local industry as these Johnson & Johnson winding up their operations in the country. products can be re-routed via On top of this price increase, it was also established previously United Arab Emirates (UAE) for instance with some addi- tional costs and it is possible that following elections in India , the situation could normalize in the midterm, the analysts maintained ( although it had only worsened contrary to all hopes and expectations among the right thinking people. The pharmaceutical sector appears an attractive player particularly due to the present government focus on health- care, looking at international reports, healthcare is a signifi- cant driver of pharmaceutical revenues and the recent an- nouncement to increase cov- erage of the Sehat Insaaf Card could also provide impetus to local demand of medicines, the analysts added. Top 10 pharmaceutical com- panies operating in Pakistan, as briefly mentioned above, include both national and international corporations and

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wrestle with more than 800 pharmaceutical companies in the country to take the top positions. Top 10 pharmaceutical com- panies that lead the pharma- ceutical market in Pakistan and command collection revenue of Rs 10 billion every year are: • GlaxoSmithKline Pakistan Limited • Getz Pharma (Pri- vate) Limited • Abbot Laboratories Pakistan Limited • Sami Pharmaceuti- cal (Private) Limited • The Searle Compa- ny Limited • Martin Dow Pharma- ceuticals (Pakistan) Limited • High-Q Pharmaceu- ticals • Hilton Pharma (Pri- vate) Limited The federal government is not directly involved in medicines pro- • OBS Pakistan (Pri- duction business but it regulates pharmaceutical sector through vate) Limited its drugs regulatory authority of pakistan (drap) as already men- • Sanofi Aventis Paki- tioned above also which controls drugs prices and regulates the stan sector by and large. Pharmaceutical industry players in addition to the WHILE PHARMACEUTICAL SECTOR PRODUCES MED- above-mentioned leading com- ICINES, THESE ARE USED AND SERVED TO THE AIL- panies also include: ING PATIENTS THROUGHOUT THE COUNTRY UNDER • Efroze Chemical THE HEALTHCARE SYSTEM BY THE FEDERAL AND Industries PROVINCIAL GOVERNMENTS THROUGH PUBLIC AND • Ferozesons Labora- PRIVATE SECTORS HOSPITALS AND HEALTH CARE tories • Novartis Pakistan SPECIALIZED INSTITUTIONS. FOREIGN EDUCATION AN INDUSTRY UNDER THREAT!

RAO SHAHZAD of people who are engaged a better and more productive in teaching, managing, approach to living. s education an industry? In moderating, revising and response to this pertinent controlling others and aspects The scope of international Iquestion, educationists and related with business. study is very vast. There are scholars insist that education many areas of studies and jobs is definitely an industry and an The governments of almost available around the world for investment for the future of a all countries spend billions of the international applicants. country together on a means dollars to educate their citizens Studying at one of the ideal of understanding oneself and because they fill millions of locations provides them others. It has global effects on jobs to run a country in the multinational exposure. They humanity. way its government wants meet countless people who and believe. These individuals are different in demographics It is an industry because it innovate new technologies, and and assimilate into their employs very large number help the society on a whole for culture. Domestically there

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is very limited disclosure. specializations and few In early 90›s medium level employment opportunities in Pakistani students attracts their own country, students towards study abroad. This from Pakistan choose to was a starting of students to enlarge their horizons and think about study in foreign study abroad. To earn an countries especially in United international degree can be a Kingdom. After partition and dream of every shining student even before partition only rich but most of them could not families send their children in apply because of complicated foreign countries for studies. procedures. Parents also have OUR GREAT LEADER a controversial view regarding QUAID E AZAM ALSO advance society. Look now not only boys, girls also proceeding COMPLETED THEIR abroad and become doctor, HIGHER EDUCATION engineers, I.T professionals and FROM BRITAIN. business managers. With the passage of time the students from medium earning Employment, once provided families start applying to by the government, no longer different European countries exists for most. Spiraling for the international degrees inflation has brought the but United Kingdom among populace to its knees. Every and has a great job, are what the highest scorer because of youth has been exposed to our youth now believe in their cultural values, friendly a scenario in which parents waiting for them once they visa policy and economical fee struggle to make ends meet. leave Pakistan. Now a day’s packages. Lack of entertainment provides foreign education becomes an youth with unending hours industry in Pakistan. Thousands I personally believe that of idleness. This idle time is of students proceeds to initiative change the life of a filled with TV and the internet. different destinations and student. Due to an unstable Beautiful foreign lands, in start their career in Pakistan education system with a which everyone leads a life or outside Pakistan after low number of universities of fun and luxury, and where completing their degrees. It that don’t provide to many every youth is living in a flat Of course, a few actually do universities due to high merit so because studying abroad and limited seats. Female means learning; learning of student’s ratio is remarkable in the latest developments in this sector. their particular field, on-the- WHO APPROVED job training and knowledge that can actually be applied COURSES, PANEL to the real world. All that is HOSPITALS AND missing in most local institutes SEPARATE HOSTEL of education, it has to be FOR GIRLS WERE admitted. NEEDED THAT CHINESE The demanded destinations GOVERNMENT are Australia, Canada, United UNIVERSITIES Kingdom, China, USA, Italy, FULFILLED AMICABLY. Turkey and Cyprus. Australia MBBS FROM is currently the most popular KYRGYZSTAN, UKRAINE destination for Pakistani students in the English AND KAZAKHSTAN ARE speaking world. Students ALSO AVAILABLE FOR choose to study there PAKISTANI STUDENTS because of cultural diversity, WITHOUT HIGH MERIT friendly natives and high is highly recommended that AND ENTRY TEST. quality education. IELTS is the first they must get a degree or The Government of China basic requirements to apply qualification which is of value offers a wide range of developed countries to meet outside Pakistan. So the youth scholarships under China their language difference. of Pakistan have now decided Scholarship Council & One Belt They also checked a sound that if they are to work hard One Road. These scholarships financial background to pay and study for a qualification, are mostly in Engineering from their fees and maintain them they will only do it abroad. No post graduate to PhD. over there. MBBS/ Engineering use of doing so in this country. in China are a huge market Thus, they leave their country After Brexit, UK is going to for those students who could in thousands every month. revise its visa and immigration not get admission in Pakistani

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policies for south Asian region. MOST INSTITUTIONS are changing the higher It wills definitely a good come ARE JUSTLY PROUD OF education sector. To optimize back for our market. In such THEIR UNIVERSITY›S success, institutions must use countries students’ starts part data to identify and attract time job during their studies MISSION AND LONG- students, develop programs to to meet monthly expenses as STANDING PROGRAMS, meet those students› career law allowed to do so. In such EVEN WHEN THOSE goals, and follow through with scenario overseas student does PROGRAMS NO LONGER strong, streamlined recruitment not face any problem while RESONATE WITH and enrollment efforts. getting proper job related to Growth strategies their obtained qualification. STUDENTS. THE STATUS incorporating a new approach Many European countries offer QUO IS A RECIPE FOR to core Student Information post study work permits & DISASTER, HOWEVER, Systems can help institutions Temporary Resident Permits WHEN THOSE INVOLVED build comprehensive, (TRP) to foreigner students on IN STRATEGIC customized, data-backed completion of their degrees. growth initiatives across the So the interested students can PLANNING IMAGINE entire student life cycle. This also apply for immigration over A ROSY FUTURE results in increased enrollment there smoothly. WITHOUT TETHERING and fundraising, degree IT TO DEMOGRAPHIC programs that meet the needs Competition for international SHIFTS AND CHANGING of post-traditional learners, students has intensified as recruitment initiatives that more colleges spend time STUDENT INTERESTS. attract the best-fit students, and money recruiting in other and improved institutional parts of the world. Whereas While employment prospects effectiveness. Conversely, hope institutions used to compete for graduates have improved is not a strategy! against comparable institutions since the Great Recession, in the same state or peer many students fear that if they The overseas Pakistanis also group, they are now competing pick the wrong institution or contribute in our economy against institutions with very the wrong major they will be and bring expertise & foreign different value propositions saddled with large debt and exchange to home land. If and fee structures. Massive poor job prospects. Thus, the Government of Pakistan competition has led to a price tendency is to view higher facilitates this sector, it will war. Offering significant tuition education purely in terms of its become an industry which will discounts is now commonplace economic benefit. play a pivotal role to reduce in the race to attract unemployment. international students. Cascading declines in student enrollment and other realities price change, and is, therefore, net of IMPACT OF inflation. GDP is the broadest quantitative mea- sure of a nation’s economic activity. More specifically, GDP represents LEADERSHIP ON the monetary value of all goods and services produced within a nation’s geographical borders over a specified GROSS period of time. When GDP declines for two consecu- tive quarters, or more, by definition it is DOMESTIC supposed to be in recession. Meanwhile, when GDP grows too quickly and fear of inflation arises the federal bank of a country often attempts to stimulate the PRODUCT national economy by raising the interest rate. COUNTRY’S EXPORTS ARE (GDP) ADDED TO THE GDP AND ON THE OTHER HAND, IMPORTS M. Z. RIFAT ARE DEDUCTED FROM GDP. hat is Gross Domestic Product (GDP)? GDP is GDP as such is an important indication the total monetary or market value of all the fin- of a country’s economic power. In 2018, Wished goods and services produced with a coun- Pakistan’s GDP amounted to 314.49 bil- try’s borders in a specific time period. As broad measures lion US dollars; it declined to 284.21 bil- of overall domestic production, it functions as a compre- lion US dollars in 2019 and was 278.06 hensive scorecard of the country’s economic health. billion in 2016. Though GDP is usually calculated on an annual basis, it Prior to going onwards, it is pertinent can also be calculated on a quarterly basis as well. For to have a cursory look at the economy instance, in the United States, the government releases of Pakistan which is the 24th largest in an annualized GDP estimate for each quarter and also terms of purchasing power parity (PPP) for an entire year. Most of the individual data sets is also and 42nd in nominal terms. Pakistani given in real terms, meaning that the data is adjusted for rupee has undergone a year on year

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depression of about 30 per cent. 4.7 per cent for period FY 2014-2018, somehow became unsustainable due to Pakistan has a population of over 212.2 million, 5th larg- rising macro-economic imbalances i.e. est in the world, giving a nominal GDP of $ 1357 in 2019. High and increasing fiscal and current However, Pakistan’s undocumented economy is estimated account deficits. As a matter of bitter to be 36 per cent of its overall economy which is not tak- fact, the twin deficits have always per- en into consideration when calculating per capita income. sisted in the Pakistani economy. Howev- Pakistan is a developing country. According to interna- er, in FY 2018 trade deficit was his- tional economic experts it is identified as having high torically high both in monetary value

potential to be among the world’s largest economies in ($ 32 billion) and as a per cent of GDP the 21st century. Its economy is semi- industrialized with (10.1 per cent) while the fiscal deficit centre of growth along Indus River and primary export reached 6.5 per cent of GDP. commodities include textiles, leather goods, sports, chemicals, carpets and rugs and medical instruments. The continued inflation and main- tained exchange rate accelerated the Growth poles of Pakistan economy are situated along the growth in domestic demand. High Indus River. consumption expenditure and the government spending on in turn led THE DIVERSIFIED ECONOMIES OF KARA- to massive surge in imports. Some of CHI AND MAJOR CENTERS IN THE PUNJAB the required adjustments on fiscal ac- CO-EXISTING WITH LESSER DEVELOPED AR- counts and exchange rate were delayed EAS IN OTHER PARTS OF THE COUNTRY. in FY 2018 being an election year that obviously resulted in depletion of Economy of Pakistan has suffered in the past due to in- foreign reserves and increase monetary ternal political disputes, a fast growing population, mixed borrowing. trends of foreign investment, its foreign exchange re- serves are bolstered by steady workers’ remittances but As such, there was an urgent need to a growing current account deficit, driven by a widening address these growing imbalances trade gap as import growth outstrips exports expansion particularly in external accounts , by could draw down reserves and dampen GDP growth in taking strong measures to curb the the medium term. growth of money supply and realign exchange rate to market conditions. Pakistan is currently undergoing a process of economic These measures will have an adverse liberalization including privatization of all government short term effect on the fiscal imbalanc- corporations, aimed to attract foreign investment and es and obviously there would be a need decrease budget deficit. to address them in coming days and months. Pakistan has been named as one of the ten emerging economies with a particular focus on its manufacturing Moreover, over the time, the govern- hub. ment would have to make concerted efforts to tackle structural weaknesses The growth momentum of the Pakistani economy at in the national economy side to avoid a 5.5 per cent in FY 2018, with an average growth rate of repeat of similar crisis in future and at the same time also ensure a sustainable eign visits in whirlwind manner meeting top leadership growth rate for the country. abroad, in the form of short-to-medium term loans, de- ferred payment on imported oil and temporary deposits Looking back at FY 2017-18, while the in the State Bank of Pakistan. Saudi Arabia provided a macro-economic imbalances continued US $ 6 billion assistance package—US $ 3 billion in short to rise, required adjustments could not loan and another US $ 3 billion in the shape of deferred be undertaken until August 2018, as the payment on oil imports from there. Similarly, the United caretaker government, which was then Arab Emirates (UAE) government provided US $ 1 billion, in place for first two months of FY whereas China provided US $ 2.2 billion. 2019, was not mandated to take major economic retransformation. However, despite some of these positive measures, between neighboring atomic powers India and Pakistan As a result of general election held on in February 2019 (Pakistan downing two invading Indi- July 25, 2018, the present government an aircrafts and foiling evil designs of the enemy) had a of PTI-led collation headed by Prime short term adverse impact on business sentiments and Minister Imran Khan assumed the office investments in the country. on August 18, 2018 and immediately started tackling the serious challenge International financial agencies revised their downward of stabilizing the national economy their projections of economic growth. For example, the primarily by managing the aggregate International Monetary Fund (IMF) lowered its projection demand and addressing the deep-root- for economic growth in Pakistan in FY 2018-19 to below ed structural problems. 3 per cent, partly due to the government demand con- taining adjustments and partly because of the negative Tackling the situation, which they de-

scribed as inheriting the national econ- effects of tariff increases enacted in the United States omy in icu, squarely, they took pretty and China earlier in the year. difficult decisions in reducing the 0ver-valuation of exchange rate and In view of these above-mentioned factors, GDP growth in aligned it to the market value-based FY 2018-19 remained subdued. However, as some results exchange rate : Increased policy inter- of the stabilization process have already started to ma- est rate and energy prices which were terialize , particularly on external front, there has been a somehow kept subdued since 2017. sharp reduction in the current account deficit… an im- provement of 27 per cent in a year-on-year comparison The federal government also achieved for July-April FY 2019 and FY 2018 primarily driven by an considerable success in mobilizing increase in the workers’ remittances back home and fall additional financing of US $ 9.2 bil- in imports. lion from friendly countries, with Prime Minister Imran Khan undertaking for- It is expected that combination of adjustments and re-

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form measures initiated by the federal government, the national economy will attain a more stable and robust growth in coming years. As for the impact of leadership on GDP is concerned, it is generally believed and said on the basis of researches conducted from time to time by eco- nomic and financial experts throughout the world that leaders who have studied economics are better at driving GDP growth. A study of as many as 146 countries from 1950 to 2014 has found that po- litical leaders with an economics back- ground have helped their respective grounds took over power. It was found that the growth countries to perform better and on the had sustained, on average, during the following years other hand, GDP per capita actually of an economist’s tenure, although most subjects of the shrunk by 1.24 per cent in countries in study were in power for much less time. the year after leaders with non-eco- HE MAINTAINED “IN PRESIDENTIAL SYSTEMS, nomic backgrounds had taken over power in their countries. THERE IS A FIXED PERIOD OF TIME THAT THE PRESIDENT HAS IN ORDER TO IMPLEMENT Researched had pored over the educa- tional and professional backgrounds of POLICIES. WHEREAS IN PARLIAMENTARY as many as 1681 governments leaders, SYSTEMS, THE REGIME LENGTH IS NOT AS including several United States Presi- RIGID, SO THE ECONOMIC EFFECT IS STRON- dents , and the economic data of 146 GER FOR PRESIDENTS AS COMPARED TO countries from 1950 to 2014. PARLIAMENTARY LEADERS, SUCH AS PRIME A visiting Assistant Professor of Fi- MINISTERS.” nance at Purdue University’s Krannert School of Management focusing on Growth was more pronounced in the countries that al- the inter-section of finance and politics lowed politicians’ wide-ranging authority to enact eco- Craig Brown has been quoted as say- nomic policies promised on the campaign trail. In mixed ing “When I look cases within the US, regimes where there were some autocratic mechanisms, such as Ronald Reagan and Bill Clinton, the effect seemed to be stronger as compared to cases who both studied economics, the story of pure democracies. is consistent with what I find in the Craig Brown had collected government leader data and broader sample. It is easy to find other also drew from economic data maintained by the World examples across the globe: Singapore, Bank. He had also analyzed tax data from the World Tax a country that is well known for its Database to test one fiscal policy possibly during his economic success, benefited from the results: a reduction in the top personal income rate. First- effective leadership of Lee Kuan Yew year GDP growth likely was in anticipation of policies throughout his long tenure and Thabo proposed by economic leaders, who over time tended to Mbeki presided over the greatest eco- cut personal income tax rates for wealthy citizens. nomic expansion in South Africa since the country’s experience with fully dem- During 72 years long its politically chequered history, Pa- ocratic elections in 1994. Both of these kistan has been ruled by civil and military leadership for leaders studied economics”. varying periods and has experienced presidential system and parliamentary system as well as totalitarian dictator- According to him, during the 65-year ships. period covering the study, the GDP per st capita had grown by 1.53 per cent in the Fortunately, ever since the turn of 21 century Pakistan is year after countries had transitioned witnessing parliamentary democratic system prevailing. from incumbents with non-economic In view of what has been stated above, the readers can backgrounds to newly chosen presi- easily found that even in case of political leaders though dents, prime ministers or other govern- having not studied economics but still possessing an ment leaders with an undergraduate or economic driven vision and desire and commitment for advanced degree in economics. economic progress and development of the country, the Conversely, GDP per capita had shrunk net results are quite positive, better and encouraging by 1.24 per cent in countries in the year than other rulers. after leaders with non-economic back- www.modelmag.com.pk | MODEL MAG | 49 50 | MODEL MAG | www.modelmag.com.pk

the revival in the 2000s till present day today. Cinema 3.0 is where we are and should head the future from 2020 and beyond. CINEMA 1947 - 1990

ahore was the thriving northern circuit of the Lsubcontinent’s film industry and film production began in the late ’20s and early ’30s. After Partition, many from the Hindu community left the country and only a selected talent from the Muslim community stayed behind. The first film released after partition was ‘Teri Yaad’ directed by Daud Chand. Director-editor Shaukat Hussain Rizvi and his singer- actress wife Noor Jehan migrated from Mumbai in 1947. They renovated the old studios on Multan Road and created Shahnoor Studios, the first Pakistani film studios after independence. This was the second beginning of films in DOWNFALL OF PAKISTAN FILM INDUSTRY JAMAL SOHAIL writing we have made nearly Lahore. 5000 films in the past seventy- akistan came into two years. Urdu and Punjabi films thrived existence on August ,14 In this review, the cinema of and Anwar Kamal Pasha (our P1947. Since its inception Pakistan has been divided first writer-director, known the film industry of Pakistan into three phases, Cinema as auteur-director in French) has gone through several 1.0 (past), 2.0 (present) and made memorable films such phases. It originated, grew, 3.0 (future). Cinema 1.0 is as Ghulam (1953), Gumnaam matured, declined and revived. our cinema from 1947 till (1954), Qatil (1955), Sarfarosh Many films have been made the downfall in the nineties. (1956), Anarkali (1958) and in many genres and as of this Cinema 2.0 is our cinema from many others. Karachi became Film Awards in 1983 which the second film center. The first At the end of the decade remained for twenty years. Sindhi filmUmar Marvi came piracy from across the border These were the only film in 1956. In the sixties more ruined the box office with awards that had a cash amount studios were built nationwide smuggled and uncensored for the winners. By the end with air-conditioning. films. of the eighties and nineties the film industry faced severe New Directors brought In 1979 director Younis Malik’s setbacks with VHS/Video distinction on to the screen Maula Jatt was released piracy, violence on screen and with titles including Heera which started a new wave of inflation. Good films were few Aur Pathar (1964), Armaan Punjabi violent movies and the and far between. (1966), Ehsaan (1967), Doraha Gandassa Culture that lasted (1967) Maa Beta (1969) and for many years. In 1980 a Cinemas began turning into many more. East Pakistan super-hit movie titled Bandish shopping centers and wedding produced Bengali films along directed by Nazrul Islam took halls. Film was reduced with low-budget and filmed on the cinema screens by the to cheap and low-grade location Urdu film hits such as storm. entertainment. However, there Chanda (1962), Talash (1963), were few exceptions like Syed Chakori (1967) as well as high NAFDEC introduced National Noor’s Choorian (1998 – one of budget historical titles like Nawab Sirajuddola (1967) and Shaheed Titumir (1969).

In 1970 the highly acclaimed romantic musical Heer Ranjha directed by Masud Pervaiz was released. The beginning of the seventies also saw dismemberment of the country with East Pakistan becoming Bangladesh. We lost Dhaka, a thriving film centre with studios, hundreds of cinemas, film productions and so much more was lost forever. Noor Jehan left acting after thirteen films and reined as a playback singer for the next thirty years. Producers and distributors marketed films in her name and for over four decades she was the highest paid playback singer. In 1977 the film industry of Pakistan enjoyed its boom with 700 cinemas, 8 film studios and over 111 films being made.

In 1978 actress-director Sangeeta made a major art film titled Muthi Bhar Chawal. In 1979 NAFDC (National Film Development Corporation) was set up by the government for film export, quality film imports, new cinemas and better films.

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the highest grossing films of all It was very well received Narrative and composition for time in Pakistan) and Samina by the audience and critics film is different from that of Peerzada’s Inteha (1999) that and opened doors for many television. concluded the decade on a filmmakers and new talent to positive note. enter the film industry. Films that are currently being made contain elements The film also introduced of glamour and follow the CINEMA Pakistan in foreign territories. Bollywood formula. They do Many professionals from the earn big at the box office with (2000– TV industry started making titles like Jawani Phir Nahi Ani PRESENT) films. (2015), Punjab Nahi Jaungi (2017) and Teefa in Trouble s we move into the new Today with big push from (2018) that have grossed over millennium it was now TV networks (in terms multiple millions. Atime to follow the rest of of financing, production, the world with film technology marketing, distribution Cutting down from 111 films, and storytelling, and move and casting) we stand at 700 cinemas and 8 studios in into the digital, leaving behind the crossroads. With the Lahore and Karachi, we may analogue (35mm). In 2002 opening of more and more have been reduced to just a NAFDEC was dissolved and luxurious and modern small part of our prosperous closed. With this all its film multiplexes cinema is no longer seventies. However, again promotional activities came entertainment for the masses compensation comes with to an end including film with ticket prices starting from new talent, multiplexes and festivals, film export, seminars, 800 Rupees and above (this is young generation turning to conferences and the National excluding popcorn and drinks). films even if it has to be on Film Awards. computer and cell phones. Film production has improved The film industry now needed technically but still good Many of our films are not being a breakthrough to survive, new scripts and storytelling is still sent or distributed abroad. talent and films were needed. lacking. Many film directors are Our export record still remains In 2007 director Shoaib coming from the TV industry dismal even after seventy-two Mansoor’s film Khuda Kay Liye which is why our films look years of filmmaking. was screened in the cinemas. like teleplays and soap operas. CINEMA (2020 & BEYOND)

he third phase of cinema deals with where we are heading and where do we need to head. As of this writing our film industry does not have an identity of its own. Filmmakers are copying, TBollywood in order to shine at the box office. This has and will continue to damage our cinema industry and audience. With advancements in film technology and more multiplexes opening films too will have to be revamped. Focus on storytelling and scripts will be vital.

Our films should be made on unexplored topics like superheroes, depicting of real life, simplicity, glamour is to be added with action and narrative not with cheap songs and dialogs. Such films if made can boost our film industry and can be easily exported and distributed to other countries. Filmmakers would need to experiment in new genres.

International distribution companies (included OTT network, over-such as Netflix) and audience are interested in watching stories from the real culture of Pakistan, something which only we can do as filmmakers and citizens. The future nonetheless looks bright with new young educated and qualified talent in every discipline of filmmaking ranging from direction, acting to music and cinematography.

Films have come out of the studios to filming in houses and real locations. Hopefully, the new writers and directors would opt for more meaningful scripts, not always depending on the wins of box office and commerce. This would also give our film industry an identity of its own and after all, media is the reflection of the society.

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SAAD SALMAN RAUF RESTAURANT EEPING UP WITH EQUIPMENT FOODSERVICE TRENDS choosing smaller kitchen KHELPS YOU IDENTIFY TRENDS equipment that can perform THE SHIFTING NEEDS OF multiple functions to optimize YOUR CUSTOMER BASE ew restaurant equipment their space. For operators AND STAY AHEAD OF YOUR and product trends are of food trucks, small pop- COMPETITION. Nspurred on by a demand up restaurants, or food hall for greater efficiency and booths, equipment that fits on 2019 was a year marked by versatility. We›ve made a list a counter top frees up much innovation and growth, and of some of the most important needed square footage for we expect that growth to be trends for 2020. other important items. compounded upon in 2020 with a greater reliance on technology and sustainability. Space – Saving ROBOTICS It may seem futuristic, but We’ve made a list of the most and Multi - robots are finding their way important equipment, service, into foodservice in a variety delivery, and technology trends Functional of creative ways. You can now Kitchen space is shrinking as we see emerging in the New buy a 6$ burger made by the rent prices go up. As a result, Year. first all-in-one burger machine many restaurant owners are visibility for cooks.

VENTLESS HOOD SYSTEM As more restaurateurs choose non-traditional locations for their businesses, kitchen technology is advancing to accommodate unique

at the Creator restaurant in meal of chicken nuggets and San Francisco. One of the fries is being replaced with benefits of using robots in the plant-based proteins, fresh, kitchen is that repetitive or organic vegetables, and high-risk tasks can be allotted complex curbs like quinoa. to machines. Human staff members have more time to perform creative tasks, and the spaces. Ventless hood ALLERGEN labor savings can be passed systems will circulate air and - FRIENDLY onto the customer. collect the grease produced by commercial cooking KITCHENS TRANSPARENT equipment without the need The availability of allergen for outside venting. This allows - safe kitchen products is WINDOWS operators to install hoods in allowing cooks to designate Because of the rise of open locations that won’t support completely allergen - free work kitchens, back-of-house a traditional hood system, spaces and storage solutions. restaurant equipment is like food trucks or historical With the growing awareness getting a facelift. Equipment buildings without duct work. that would normally be out SERVICE TRENDS

heck out these top service trends to find Cways to keep your business concept fresh and competitive in 2020.

DIVERSE KIDS around the Big 8 allergens and a push towards inclusivity MENUS of all diets, we expect to see The collective taste buds of more restaurants declaring of sight is now front and consumers are be coming the allergens in their dishes or center for all customers to more sophisticated, so why creating separate allergen-free see. Features like transparent shouldn’t that cross over into menus. windows provide a view of kids menus? Parents want food while it cook, creating healthy meals for their kids, an immersive experience for but they also want a kids menu ZERO WASTE guests. Windows play a second that features creative dishes Climate change and role by providing greater with new flavors. The standard environmental issues are

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DELIVERY TRENDS

ith the increased demand of delivery Wand easily accessible apps like Uber Eats and Grub hub, delivery trends are beginning to take over ordinary delivery services. See what›s to come in the world of delivery for 2020. becoming a major selling point restaurants have. for customers, and restaurants ECO - FRIENDLY typically produce a lot of trash and recycling. To keep up with TAKEOUT IN - HOUSE the trend, some establishments are choosing to create a zero CONTAINERS DELIVERY waste kitchen by dropping With the world-wide push Many restaurants have taken disposables and coming up to be more environmentally the delivery of their food into with innovative ways to use all friendly, many restaurants are their own hands. Businesses parts of their food. ditching the foam containers like Panera have gone the to provide a healthier and SEASONAL RESTAURANTS Instead of updating the menu with a small list of seasonal specials, some restaurants are choosing to base their entire concept on the seasonal availability of ingredients.

extra mile to create their safer container for their own in-house delivery staff customers. Most eco-friendly instead of hiring third-party takeout containers are %100 delivery men and women biodegradable. to transport orders. This is saving businesses money and eliminating the fees they would A1 DELIVERY have to pay out to third-party In a world that can be services. automated, engineers have

taken food delivery to another level. Between delivery robots DELIVERING TO and drones, less people are Restaurants like True Food needed to deliver orders PUBLIC PLACES Kitchen, a national chain, and food is getting to its No longer do you need a feature an ever-rotating menu destination much faster. business or residential address of seasonal dishes. Automation is opening new for delivery. Have your food doors to the delivery options delivered to you wherever TRENDS

t`s no secret that the Smartphone has changed Ithe way we live, as well as the way we cook, order, and even pay for food. It seems like there›s an app for everything now, and restaurant technology is following suit. you are; a park bench, an intersection, or a picnic DIGITAL MENU table at the pavilion of your favorite hiking trail. With the BOARDS advancement in location Digital menu boards allow tailor their marketing strategies technology, delivery people business owners and managers around this data. can bring you your delivery to change their menu regularly order to any public place. TAP - TO - PAY DELIVERY DEVICES More customers are choosing INCENTIVES to sync up credit cards to With many third-party food their phones rather than delivery businesses competing carrying around bulky wallets, increasing the demand for

to accommodate specials and additions. They also allow restaurant operators to adjust prices for different times of day or seasons. For example, you can set lower prices during slow periods to entice customers to visit and for the same customer base, use higher prices during busy these businesses are working periods to boost profits. on creative marketing tactics to gain more customers. Many companies are offering DATA MINING delivery incentives like money Restaurant owners have more tap-to-pay options. Tap-to- off orders or reward points data mining resources available pay devices allow servers to when you order with them. to them now to track customer provide customers with the These incentives are easily related trends. There are check instantly and permit attracting new customers, several programs and websites customers to pay for their while also saving them a few that can show business owners food right at the table. When dollars. at what stage online carts are the meal is over, customers being abandoned, how often can conveniently pay with RESTAURANT customers are ordering, if their phones and be on their customers are leaving reviews, way, turning over tables more TECHNOLOGY and more. Owners can then quickly.

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BONU AZIZOVA and environmentally friendly technologies. Tashkent Architecture and Construction Institute, These concepts are defined by their own names. Most Uzbekistan famous were the following ones: energy efficient buildings and structures; buildings and structures with n the current days, all over the world low power consumption; buildings and structures with is paying more attention to the ultra -low power; buildings and structures with zero Iproblem of resource conservation on energy use; passive buildings and structures; bioclimatic heating buildings and its efficient use. architecture; healthy buildings and structures; «Smart» homes and buildings; intelligent buildings and structures; Saving energy is one of the most actual building and construction of high-tech; environmentally topics for today. Modern buildings and neutral buildings. In our country, buildings account for facilities have huge reserves to increase almost half of the country’s total energy consumption, or their thermal efficiency. 17 million tons of oil equivalents, annually.

Energy consumption of buildings, which Many buildings are now physically worn out and planned was not significant for the past, has for reconstruction or rehabilitation. Increasing population become the dominant measure of the quality of the project. Over time, modify and extend the object of study: energy efficiency in buildings and structures.

If at the beginning of the construction of energy efficient buildings, until the early 1990s, the main interest is the study of measures for energy saving, then in the mid1990-s, priority is given to energy efficient solutions that simultaneously contribute to the quality of the microclimate.

In the construction of a large number of buildings, neighborhoods and even architectural zones which have been designed and constructed based on different concepts of energy efficient places growing demand in education and healthcare hospitals and sports facilities. These services, which requires further renovation of the existing programs have targets at improving the ones and construction of new public buildings. energy efficiency of buildings, which include new opportunities for energy- Energy efficient construction is a safe bet and creates efficient building through improved independency from the fluctuations in energy costs. design and technology.

The foregoing examples of the construction and reconstruction of the buildings, that increased energy efficiency, are the part of sustainable development in architecture.

Sustainable buildings and structures includes the study of the possibility of the use of clean renewable energy, the optimal use of the requested energy, water conservation, use of building

REHAU system solutions cover all three pillars of energy efficiency: Creating energy efficiently, using energy efficiently, and reducing energy losses.

With innovative materials and highly developed system technologies, we offer our customers highly efficient options for positive energy rating and economical solutions for exceeding the EnEV.

Currently, the construction of buildings continued to follow outdated rules and practices in the construction industry, where energy efficiency considerations have not yet taken into account in the process of design and construction, which leads to excessive consumption of energy and makes a great contribution to greenhouse gas emissions in the country. materials reuse, improve the quality of the human environment. In order to solve these demographic and social Nonetheless, the study of several aspects of the problem is problems, the government has insufficient: it is necessary to study the complex development and taken a number of large-scale the environment, and their environmental and energy potential, programs for reconstruction through a complex of measures for energy efficiency program, and construction of public gradually introduced new technologies, constantly approaching buildings, including schools, the main goal is sustainable development as architecture as like colleges, kindergartens,

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the whole State. Specific annual energy consumption for heating – 135.2 kWh / m2 per year This is the main purpose of the theory Ultra-efficient home design combines state-of-the-art, and construction practices today energy efficient construction, appliances, and lighting with commercially available renewable energy systems, TECHNICAL such as solar water heating and solar electricity. By taking advantage of local climate and site conditions, CHARACTERISTICS designers can incorporate passive solar heating and OF THE BUILDING cooling and energy-efficient landscaping strategies. The Heated area according to the design – intent is to reduce home energy use as cost-effectively as 4,705 m2 possible, and then meet the reduced requirements with on-site renewable energy systems. Annual energy consumption for heating and ventilation – 647,878 kWh / year

Specific annual energy consumption for heating – 137.7 kWh / m2 per year TECHNICAL CHARACTERISTICS OF THE BUILDING Heated area according to the design – 4,922 m2 Annual energy consumption for heating – 665,761 kWh / year www.modelmag.com.pk | MODEL MAG | 61 62 | MODEL MAG | www.modelmag.com.pk

NIMRA ALI this article to help you choose the best organic skin care DID YOU KNOW very woman wants to products. THAT OUR have a glowing, healthy Ecomplexion Why is it so important to make SKIN ABSORBS that is protected against the best decision when it harmful external factors. If you comes to skincare products? %60 OF THE really are interested in your Most of the people think skin health, you will definitely chemical products are not SUBSTANCES want to use products that are really that dangerous. truly healthy for your skin. WE APPLY IN If you are one of those people, OUR DAILY But what exactly is healthy I respectfully disagree with nowadays? We specially wrote you. ROUTINE? If this does not surprise you, it comes with even worse news: DIFFERENCES Unlike natural cosmetics, If you are pregnant, beware of AND WHAT they must contain a much the products you use! Harmful higher degree of plant-based chemicals cause the most WOULD BE THE ingredients in order to be disease when they are present certified organic. during fetal development. Even BEST OPTION Our choice: more so, the toxic substances can lead to serious illness, such FOR MY SKIN? ORGANIC as cancer or infertility. Natural cosmetics contain ingredients derived from plants COSMETICS! If we convinced you to use and minerals. Ingredients such as aloe, chamomile, shea WHY? organic skincare products, you Here are some of the benefits would probably ask yourself: butter, beeswax or essential oils have a lot of benefits for of using this type of skin care WHAT EXACTLY hair and skin - even when they product: SHOULD I are not technically organic. Organic cosmetics do not ENVIRONMENT- CHOOSE, contain any chemical additions; AL FRIENDLY NATURAL OR they are composed of plant- When you decide to buy that based ingredients grown popular and top-rated brand ORGANIC? healthy and organic, without of anti-wrinkle cream that being treated with herbicides has been advertised daily, WHAT ARE THE or chemical fertilizers.

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you encourage indirectly the pollution of the planet. That cream is for sure unsafe for your skin.

If not, why would it need any marketing strategy? Unfortunately, many of the commercial cosmetic products contain toxic substances for both skin and body. The side effects cannot be discovered immediately, but they will leave marks on the body over time.

Cosmetics can damage both the environment and health. Chemicals used in cosmetics are washed into rivers, lakes, and streams. Thousands of plastic packages are left behind, chemical elements pollute waters affecting marine life and, generally, life on Earth. On the other hand, organic products are not just beneficial to you, but for the entire environment as well. ingredients that may have a Why? Because the ingredients Chemical - negative impact on your skin. are based on sustainable Free Skin Care Instead, what would you say agriculture. about: aloe vera, shea butter, Products coconut oil, eucalyptus, As I have already said, they Parabens, sulfates, phthalates green tea, and other more come from plants that have not or petrochemicals? When you pronounced names compared been chemically treated. choose to use daily organic to the above? These are just skin care, you no longer have some of the natural ingredients to worry about all these used in various cosmetics. NATURAL FLAVORS If you are one of the people who prefer the fragrance of a product to the detriment of any other qualities, we have good news: organic cosmetics have a pleasant smell too, and it is even closer to nature than any other chemical. The flavors of the products you find on the market are due to the chemicals that are mixed with other ingredients, which can cause skin damage, nervous system GENTLE WITH THE SKIN Do you remember that cosmetic product you bought just because it was cheap and “could not affect you at all”, but the next day, after applying it, your face was irritated and full of pimples? Unfortunately, events like this happen quite often and can never be forgotten. Even if the products were cheap, they had a much higher cost: the long-term health of your complexion. Are you really willing to pay this price?

By choosing organic products, not only will you enjoy the short-term beautifying effects, but you will also make a sustainable choice for your health! So what do you think? Are these products really good for you? «Yes, but they certainly cost too much!» I diseases, cancer or allergies. Choosing an organic cosmetic hear this statement quite often, Make sure the products you product made from natural but I find it just a myth, organic buy have a genuine smell of minerals will offer you, besides products are healthier, cheaper natural ingredients and not of many advantages, a certain and contain only ingredients synthetic flavors. sun protection. In organic that extremely helpful for your ingredients, you can also find: beauty, they are environmental antioxidants from vitamin C, friendly, and their use makes RICH IN rose oil, rose water, rosemary you feel good. Do not forget, NUTRIENTS oil or sunflower oil. your skin deserves the best! Most organic makeup products contain coconut butter. Their fatty acids may help reduce wrinkles, dry skin, and age spots. You can also find ingredients such as peach extracts, grapes, white tea, which prevent aging skin and naturally build collagen for glowing, youthful skin. SLOW DOWN THE AGEING PROCESS Solar radiation is one of the most important factors when it comes to premature aging.

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DR. S. M. ALAM in Pakistan can not only beautify the coastal areas but will also minimize environmental pollution along with reducing IL palm is an important considerably the edible oil import bill. plant for obtaining Oedible oil and other THERE EXIST GOOD PROSPECTS FOR ITS materials. The crop grows CULTIVATION IN THE COASTAL BELT OF SINDH AND in tropical areas as it needs sunshine and rainfall. Suitable BALUCHISTAN WHERE CLIMATIC CONDITIONS ARE conditions for its cultivation FAVORABLE, THOUGH THERE IS LACK OF WATER are 15-10 degrees, north and AND EXTREME HEAT WITH MONSOONS LEAST south of the Equator. The AFFECTING THE AREA. tree grows up to 50 feet in high rainfall areas. It produces The annual rainfall is as low as 25mm to 50mm. There are plans to large primate leaves. Quality provide incentives to people living along the coast from Karachi seeds are suitable for good to Gawadar for oil palm cultivation. The 750km belt lies between produce. It is a native plant of 62 of and 68 of longitude and 24 on and 26 on latitude. Acidity coastal belt of West Africa and is the main characteristic of the region. The mean maximum requires spacing of 25 feet. temperature ranges between 32 o C to 42 o C with high humidity. It is being cultivated in many The sea breeze in summer moderates the temperatures near parts but Malaysia is the main the coast. It has been reported that these areas are suitable for exporter of palm oil to the cultivation of oil palm. world. The country spends more than 800$ million on edible oil imports Cultivation of oil palm annually. It has been reported that more than 8,000 acres of land the US was 50kg, Europe 47kg, Japan 21kg, China 17kg, Bangladesh 6.7kg, India 12kg, Pakistan 11kg, and world average at 18.7kg.

Palm oil substitutes about 22 per cent of global demand for oils and fats and 49 per cent of oil export. Palm oil is a vegetable oil and does not contain cholesterol with saturated cholesterol less than that of the coconut. It is consumed in cooking, margarines and shortening, and as an ingredient in fat blends and food products like bakery and confectionery, ice-creams and chocolates. It should be classified as both saturated and unsaturated fat. The in Sindh and nearly the same size along saturated fatty acids are made up of 44 per cent palmatic the coastal areas of Baluchistan would acid and five per cent stearic acid. be brought under oil palm cultivation in the near future. The unsaturated fatty acids consist of 39 per cent oleic acid 10 per cent linoleic acid. A number of studies have THE COUNTRY IMPORTS reported that palm oil diets reduce blood cholesterol SEEDLINGS FOR WHICH from seven to 38 per cent. The vitamin E, particularly the tocotrienols present in it suppresses the synthesis THE PAKISTAN OILSEED of cholesterol in liver. As a consequence tocotrienols DEVELOPMENT BOARD (PODB) lowers the cholesterol. Tocotrienols exhibit anti-cancer IS ACTIVELY WORKING properties. The oil prevents formation of thrombus in TOWARDS ACHIEVING THE blood vessels. Vitamin E inhibits platlets from sticking to GOAL. each other. It showed that a palm oil diet either increases The plant starts to bear fruit within production of a hormone that prevents blood-clotting or 4-3 years with an economic lifespan decreases the formation of a blood-clotting hormone. of about 25 years. Oil palm is the most productive crop with an annual yield of Crude palm oil is one of the richest natural sources of about five tons of crude palm oil/ha. It carotenoids with concentration of 700-500ppm. The is reported that after soybean, palm oil beneficial effects of carotenes on cancer and other is the second major oil produced in the chronic diseases have been demonstrated in studies and world. Currently, worldwide production clinical trials. No other vegetable oil contains carotenoids is nearly 22 million tons. Major palm in such quantities. This oil lowers blood cholesterol oil producing countries are Malaysia, and bad LDL cholesterol and increases the good HDL- Indonesia, Nigeria, the Ivory Coast cholesterol and Apo A1- levels. It is stable and versatile and Colombia. Malaysia has a unique even without hydrogenation. Palm oil is also used in position as it meets almost 50 per soaps, candles, detergents, lubricants, fuel, caked residue, cent of the world palm oil needs and exports nearly 80 per cent of the total world trade of palm and palm kernel oils, according to figures estimated for 2004.

Malaysia has the highest yield per hectare and possesses the most modern oil palm nurseries infrastructure such as the mills, refineries, storage tanks along with high safety channels with a total area of about 3791x103 hectares. Indonesia is the second highest producing country. The world palm oil consumption in 2003 was 27.3 million tons and the projected yield for 2005 is estimated at 30.9 million tons. The per capita consumption in 2004 for

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cosmetics, and other personal-care products. It is a rich As for socio-economic benefits, source of vitamin e and b – carotene. Pakistan is one of Pakistan is in a win-win situation. The the biggest consumers of palm oil besides china, india, likely socio-economic benefits would japan, europe and the middle east countries. be self-sufficiency in edible oils or at Since the evolution of edible oil industry, palm oil has least moving in that direction, savings played the role of lifeblood for this sector. Despite of foreign exchange, encouragement Pakistan being an agricultural country, we face chronic of industrialization, improvement of shortage of it. The climate, eating habits, logistics, per acre income of growers, utilization economy and others make palm oil the most preferential of rural manpower round-the-year, choice for Pakistan industry. Every good quality improvement of natural environment, Banaspati contains palm oil. Besides being largely used substitution of sugarcane, each hectares for edible purposes, its by-products are used for soap under oil palm yields 10 times more oil making. The major oilseeds produced are cottonseed, than most other oil crops, and income rapeseed and sunflower. Linseed, groundnut and sesame far exceeds expenditure when both oil are butterfat. palm is planted, and intercropping is done simultaneously. In 30 to 40 years, FOR THE PROMOTION OF OIL PALM Pakistan can become an exporter to the CULTIVATION THE FOLLOWING POINTS Gulf and the Middle Eastern countries, if properly managed. This sector shall SHOULD BE TAKEN INTO CONSIDERATION: be the most effective, efficient income Research station should be established at Karachi; generating and poverty reduction Oil palm seedlings should be provided free of cost; tool. Besides, Oil palm is known to be Arrangement should be made for raising of seedlings; consumer and environment friendly. Marketing channels for growers should be set up so that when farmers start planting oil palm along the coastal There are 34 reasons to substantiate. areas of Sindh and Baluchistan they should not face However, an oil palm forest, with its crop disposal problem; Irrigation facility through sweet perennial green cover and closed water should be provided; Training of required manpower canopy, displays the main features of involved in nurseries and plantation may be arranged a tropical rainforest. It is also a more from any oil palm producing country; Mills for the efficient carbon sink than a tropical extraction should be planned. rainforest and helps absorb greenhouse gases. FAROOQ AHMED BHUTTA

ince the 1820s, tea has remained the most- Sfavored beverage in the subcontinent. Presently, it is one the things common among the denizens of both Pakistan and India.

From breakfast to supper, tea is an incumbent item. The beverage’s popularity in Pakistan has statistical evidence. However, statistics reveal one more thing that does not bode well for the economy. Despite its popularity, tea is mostly imported instead of being cultivated locally. According to the current market situation and medium- term outlook, published by the Food and Agriculture (FAO) of the United Nations, Pakistan is among the seven countries where per capita consumption of tea has been increased. The highest increase was www.modelmag.com.pk | MODEL MAG | 69 70 | MODEL MAG | www.modelmag.com.pk

seen in Malawi with 565.2pc, Tea imports into the country is the third largest importer followed by China 128.6pc, during the period July-August of tea in the world. It spends Rwanda 110.2pc, Turkey 25.9pc, 18-2017 increased by 2.36pc around Rs. 54 billion annually Indonesia 26.6pc and Libya as compared to the imports on the beverage. The bureau 39.8pc. of the same period of last further revealed that Pakistan year. According to the data of imports tea from 17 different Currently, black tea Pakistan Bureau of Statistics, countries. consumption in Pakistan has a tea import into the country been estimated at 72,911 ,1 was recorded at 34,126 tones TEA AND HIGH- tones which is expected to valuing 94.419$m as compared VALUE CROPS increase to 50,755 ,2 tones in to the imports of 39,115 tons 2027, the FAO report projects. worth 94.194$m of the same RESEARCH INSTITUTE This showed in next 10 years, period last year. AND PAKISTAN tea consumption will increase AGRICULTURE by 77,844 tones. As per the data of Pakistan RESEARCH COUNCIL Bureau of Statistics, Pakistan HAVE SUGGESTED CULTIVATING TEA LOCALLY ON 64,000 ACRES OF LAND IN SWAT, AZAD JAMMU & KASHMIR, AND MANSEHRA TO REDUCE THE TEA IMPORT BILL. THEY THINK THAT THESE AREAS ARE CONDUCIVE TO THE CULTIVATION OF TEA LOCALLY.

Global tea consumption and production are projected to keep rising over the next decade, driven by robust double from 1.5m tones in demand in developing and 17-2015 to 3.3m tones in 2027. emerging countries. This Global demand for tea is also will create new rural income benefiting from a new clientele. opportunities and improve food security in tea-producing Young urban consumers in countries, according to the large producing countries like FAO report. China and India have emerged as the fastest growing WORLD PRODUCTION segment, eager not only to OF BLACK TEA IS pay a premium for specialty teas but also curious to know PROJECTED TO RISE more about the product they ANNUALLY BY 2.2PC consume — its quality, origin OVER THE NEXT and contribution to sustainable DECADE TO REACH 4.4 development. MILLION TONS IN 2027, The total food imports into REFLECTING MAJOR the country were recorded OUTPUT INCREASES IN at 4702.440$ million during CHINA, KENYA AND SRI the current year against the the deficit of 30.169$ billion LANKA — WITH THIS imports of 5216.454$ million recorded during July-April CHINA WOULD REACH during last year, the data (18-2017). The exports during revealed. THE OUTPUT LEVELS OF the period under review KENYA, THE LARGEST witnessed nominal decrease It is pertinent to mention here of %0.12 by falling from BLACK TEA EXPORTER that the country’s merchandize 19.191$ billion during last year IN THE WORLD. trade deficit plunged by to 19.169$ billion during the 12.82 percent during the first ongoing fiscal year. Global output of green tea is ten months of the current foreseen to increase at an even fiscal year compared to the On the other hand, the imports faster rate of 7.5pc annually corresponding period of declined by %7.88 to 45.471$ to reach 3.6m tones in 2027, last year. The trade deficit billion during the period under largely driven by China, where contracted by 3.867$ billion review from 49.360$ billion the production of green tea to 26.302$ billion during last year, the data revealed. is expected to more than July-April (19-2018) against

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SIGNIFICANCE OF CHABAHAR FOR INDIA Pakistan had never allowed India to use its territory as a TAHIR NASEEM Iran’s seaborne trade but since transit for trade with Central it is not a deep-water port Asia and Afghanistan because n February 2018, Iranian and it can’t handle the cargo of which India had to sign President Hassan Rouhani ships of 250,000 tonnages and an agreement with Iran for Ipaid an official visit to India above. Such ships had to dock development of Chabahar where Indian and Iranian at United Arab Emirates (UAE) port to get an alternate route governments inked nine and then cargo is transferred to Afghanistan and Central agreements including the on smaller ships for Bandar Asia bypassing Pakistan. India operational control of the parts Abbas port. shipped first consignment of of Chabahar Port to India for 18 wheat to Afghanistan through months. As Chabahar is equipped to Chabahar in October 2017. handle larger ships, it will Chabahar port, developed by reduce the dependency of Iran Chabahar port will cut the Indian assistance, is located on UAE. transport cost and time to on the Gulf of Oman along the Iran, Afghanistan and Central Makran coast in south-eastern Iran also plans to transform Asia by one third in the wake Iran. Chabahar port into a transit of Pakistan’s denial of transit hub for trade between route to India. Chabahar port has a strategic northern parts of Indian Ocean importance for both India and and Central Asia and earn Chabahar is India’s first major Iran. Currently, the Bandar revenue in the form of transit overseas port venture and is Abbas port handles %85 of fee. seen as a counter to China’s development of the Gwadar port in Pakistan. Gwadar is located 90km away from Chabahar in Baluchistan province of Pakistan. It is developed by China to gain a direct access to Indian Ocean through Pakistan. In this way, Chabahar is also seen as Indian initiative to counter the Chinese influence in Indian Ocean.

HISTORICALLY, THE TRADE BETWEEN INDIA AND CENTRAL ASIAN COUNTRIES COULD NOT EXPAND UP TO THEIR POTENTIAL DUE TO THE development in Central Asia. freed from its dependence on ABSENCE OF VIABLE Pakistan. ROUTES. The Hajigak region in Afghanistan is said to have The proposed 7,200km largest deposits of iron INDIAN International North South ore in Asia. Seven Indian Corridor (INSTC) will provide companies have already INDUSTRIES access to the five Central Asian acquired the mining rights but countries. Central Asia is the AFFECTED BY the absence of viable trade resource rich regions which route was a major obstacle are yet to be exploited. The CHABAHAR in its development. With the expanding trade between India Indian agriculture is expected operationalisation of Chabahar and Central Asia will not only to benefit from Chabahar as it port, Afghanistan is also help India but will also usher will facilitate Indian agriculture

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Central Asia will go a long way in ensuring the energy security in India.

Chabahar had already started showing signs of operational success as there are unconfirmed reports that traffic is being diverted from Karachi to Chabahar. The port of Chabahar is 800kms closer to Afghanistan than the port of Karachi. Due to the proximity with Central Asian countries of Turkmenistan and Uzbekistan, it is called as ‘Golden Gate’ to these landlocked countries.

As India is aspires to be a exports to Afghanistan. In mineral-rich Hajigak region in global player, it has to expand fact, the first consignment Afghanistan. its outreach in all the regions of wheat was already sent to of the world. The Indian Afghanistan via Chabahar on As india is planning robust presence in Central Asia, Latin October 2017 ,29 India had set investment in infrastructure America and Eastern Europe up a urea plant in Chabahar that includes construction of is so far not commensurate to catering to the needs of roads, railway lines as well its ambitions. Both India and Afghanistan, Iran and Central the further development of China are trying to expand Asia. Later, the companies chabahar port, industries like their clout and as of now, engaging in agriculture iron and steel, cements and China seems to be winning machinery may also get other infrastructure companies the race. Indian involvement benefited by the development. may get a big share in the in Chabahar is also seen as a pie. As the infrastructure measure to counter Chinese Potential for growth of Indian development gathers pace influence in Indian Ocean and mining sector is also evident in the region, investment in Central Asia. Thus Chabahar is from the fact that National supply chain management and not just a transit trade port for Aluminum Company (NALCO) logistics industry will also gain Central Asia and Afghanistan has signed a MoU to locate an momentum. but a turning point for Indian aluminum plant in Chabahar. geopolitical ambitions in the India is also contemplating Last but not the least, direct region. connecting Chabahar with connection with energy rich www.modelmag.com.pk | MODEL MAG | 75 76 | MODEL MAG | www.modelmag.com.pk SMEDA - A QUITE SUCCESS STORY OF SME DEVELOPMENT

LIAQAT ALI GOHAR available in the surrounding i.e. brain, the human being also Water, Trees, Stones, Mineral, gained control over the animals mall and Medium Business Herbs and the man-friendly and exploited their strength for is the foundation of the animals like horses, cows and movement to the remote and Shuman economy on earth. Dogs etc. odd areas. Hence the mankind The human beings are made of discovered the further exploit- soil and water from the earth The small and Medium Enter- able items hidden in moun- and their resources of surviv- prises began with the acti- tains, deserts, rivers and sea. al have also been enwrapped vation of human brain that within the same planet. This started adding value to the The process of value addition is true in case of every living available resources and created in the natural resources turned creature of the Earth. shelters in caves of trees and into expertise and professions, mountains, produced vegeta- exchange of which was trans- The mankind started its life bles, fruits and grains through formed into small and medi- by exploiting the resources cultivation. With the power of um businesses. Businesses of house building, food making, resources. This inherent char- ment for its key clients – the Utensils and dress manufactur- acteristic of an SME makes it SMEs of Pakistan. ing created the early civiliza- imperative that there should tions, which rose to the present be a mechanism through which At the same time, SMEDA also level after millions of the years it may get support in different interacts with the SMEs work- interaction of human mind with functions of business including ing in industrial sectors such as the nature. technical up-gradation, mar- Agriculture, Fisheries, Textiles, keting, financial and human re- Handloom Weaving, Trans- Nature has been providing source training & development. port, Leather, Marble & Granite, the scoop, and brain has been Carpets and Light Engineering. adding value to it. The present SMEDA is the flagship organi- This interaction takes place at civilizations bearing state of zation of Pakistan which is pro- the individual as well as col- the art technology, techniques viding the necessary services lective level to provide proac- and expertise is result of the to help SMEs overcome the tive and responsive financial, same process, still going on weaknesses that are endoge- technical, management and to the further discoveries and nous to their very nature. It is marketing services to SMEs. inventions; consequently creat- an autonomous body work- ing new areas of the trade and ing under the umbrella of the AT THE COLLECTIVE industry. Ministry of Industries & Produc- LEVEL SMEDA AD- tion and contributes towards Since the SMEs are easy to the growth and development DRESSES THE PROB- establish as per the potential, of SMEs in Pakistan through; LEMS AND NEEDS OF experience and skill available Creation of conducive and en- SMES IN THE FORM to an individual or group of abling regulatory environment; OF AN INDUSTRIAL individuals, the ratio of SMEs Development of industrial clus- CLUSTER – A CONCEN- all over the world is above 90 ters; and by providing Business % of the total businesses. In Development Services to SMEs TRATION OF LARGELY Pakistan, too, the SMEs con- in all areas. Adhering to a clear HOMOGENOUS ENTER- stitute nearly 90% of all the mandate and a logical path to PRISES WITHIN A CER- enterprises in Pakistan, which achieve quantitatively verifi- TAIN GEOGRAPHICAL employ 80% of the non-agri- able targets, SMEDA carries AREA. cultural labor force; and their out comprehensive analyses of SMEDA interacts with the share in the annual GDP is international trends, national stakeholders operating in such 40%, approximately. However, policies and other macroeco- clusters on a regular basis and unlike large enterprises in the nomic factors affecting SMEs collects firsthand information formal sector, a small and me- in Pakistan for a gradual prog- about their problems and dium enterprise is constrained ress towards the creation of needs. During this interaction, by financial and technological a favorable business environ- the issues are prioritized and

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the important problems are success story among public utilizing a SMEDA developed selected for detailed working sector organizations. It has pre-feasibility study. It does through which the project and done hundreds and thousands not mean that SMEDA initia- programs are identified. SME of the interventions to develop tives have gone in vain. Once I support through cluster devel- SME sector. The two-decades came across with a renowned opment programs is provided history of SMEDA has a rich businessman, who told that on two fronts; at first Regula- performance record includ- his famous brand of packed tions and Policy level support ing a lot of sectoral devel- milk was based upon SMEDA and secondly the institutional opment strategies coupled Feasibility. Similarly, there may and networking support. with implementation plans, a be many other projects, which large number of pre-feasibility could have emerged on the IN THE POLICY LEVEL studies, business plans, Train- basis of SMEDA plans. SUPPORT, PROBLEMS ing programs, policy interven- tions, stakeholders network, But, SMEDA has no tracking RELATED TO ANY GOV- consultants data, website and system in place. Now, when ERNMENT DEPARTMENT B2B Portals, joint ventures SMEDA has embarked upon a OR GOVERNMENT POL- with international development new big country-wide initiative ICY/REGULATION ARE agencies, and over two dozens titled as STUDIED AND, IF FOUND of the common facility centers “THE NATIONAL established across the country BUSINESS VALID, ARE ADVOCAT- under Public Sector Develop- ED WITH THE CON- ment Program (PSDP). DEVELOPMENT CERNED AUTHORITIES. PROGRAM”- (NBDP) At the institutional level, But SMEDA always remains followed by a unique One-Win- SMEDA provides support to unable to reply the one ques- dow facility Program for new SMEs by creating networking tion that how many new SMEs business start-ups”, SMEDAwill amongst the concerned stake- have come into existence since have to develop a foolproof holders or by directly starting inception of SMEDA. Creation tracking system so as to re- development projects in the of new SMEs is the topmost main abreast with the out- clusters. Such projects may agenda of SMEDA mandate. To comes of its initiatives. Simul- include establishing a training create new SMEs SMEDA holds taneously, the activities as institute, building a common series of the training programs well as services, bearing posi- facility center, building a model on entrepreneurship every year tiveimpact on growth of SMEs plant with state-of-the-art with an equitable spread city- should be projected through technology for SMEs to em- wise and the sector wise. But, an integrated media campaign, ulate through reverse engi- it does not know how many which have ever been missing neering. These projects also of the participants practically in the history of SMEDA opera- include upgrading technology were encouraged to become tion due to scarcity of market- in a particular industrial sector new entrepreneurs. SMEDA has ing funds. and starting a program-lend- developed over 200 pre-feasi- ing scheme for this purpose in bility studies on almost every (Writer is a free-launce journalist collaboration with the financial potential area of SME sector. and Media Management Expert having worked with SMEDA, LCCI institutions. and Nawai Waqt Group on senior But it is again blank about the positions. Currently working as No doubt SMEDA is a great people who became an SME by Media Consultant to SMEDA) are Instagram, Twitter, and YouTube — though the blogosphere has long been an influencer haven. In 2019, Instagram alone had approximately 13.9 million brand- sponsored influencer posts. That number is estimated to double by the end of 2020, creating an estimated market size of nearly 1.7$ billion.

SOME PROJECT TOTAL INFLUENCER MARKETING COULD REACH 10$ BILLION BY 2020, ENABLED BY GROWING INFLUENCER MARKETING PLATFORMS THAT ALLOW EASY SEARCH AND ACCESS TO INFLUENCERS BY ADVERTISERS. Decentralized communication platforms have inspired NAEEM ZAIDI a true influence revolution, with cascading effects. But as the power of this channel grows, it changes just hey are distinct from celebrities, as rapidly, blurring the lines between fact and fiction, politicians, and athletes because authenticity and advertising — even when you’re not Tthey gained their influence actually getting paid, as we learn how to tap into its through social media platforms first, power. usually building off of an authentic voice that speaks to a specific With its remarkable growth, we’ve also seen major (usually millennial) audience, and yes, controversies, from the YouTube beauty community attractiveness, especially for visual- scandal, to the now infamous Fire, a hoax musical festival based media, helps. The three biggest built on social media influence and very little else. Social platforms for individual influence media influence, as quickly as it rose, may die just as

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quickly, or transform, in a vacuum of personal meaning appear genuine. At its core, influencer and authenticity — the driving forces that led to this marketing is about storytelling and the alternative universe in the first place. There is change in co-creation of unique and engaging store for influence in 2019. content. Honesty and transparency are often important, and this category Here are a handful of emerging trends in the world of especially has given voice to a spectrum personal branding and influence we are particularly of voices and perspectives that are fascinated by: often missed by mainstream media, China’s influencer economy totaled 17$ billion in 2019. channels, and advertisers The recent “flaunt your wealth challenge” generated more . than a million posts on Weibo. China’s growing army of INFLUENCER MARKETING social influencers has played a role in popularizing the HAS PUSHED DIGITAL meme. They usually pose as if they’ve just fallen out of a luxury car and spilled their most valuable possessions CAMPAIGNING TO A NEW onto the pavement. Chinese influencers have also LEVEL. RESEARCH INDICATES capitalized on their online popularity to launch clothing THAT SOCIAL MEDIA and beauty lines, and even sell cars directly to fans PLATFORMS’ ELECTION through live-streaming apps that reach an audience of MOBILIZATION FEATURES 398 million. Many own businesses that sell products created around their personalities and lifestyles. (I.E., DIGITAL EQUIVALENTS OF THE “I VOTED” STICKER) In Pakistan, influencers have inverted the funnel to such HAVE INFLUENCED VOTING an extent that marketers are starting to factor them BEHAVIORS. into their annual calendars. Young African influencers We’ve seen influencers use their are coming onto the scene in fashion, music, arts, and reputation to back specific candidates food. With new products and services being consistently and become active — and activist, introduced in Africa, there is a myriad of opportunities voices. In Africa, where a generational for influencers to introduce new brands or products divide between aging political rulers to a wider market. Influence is even crossing over into and their young constituents is strongly healthcare. Patients in the US, for instance, with social felt, youth influencers are playing an media influence are getting paid by pharma companies active role in challenging corruption, for their opinions. censorship, and economic crisis plaguing much of the continent. Some Mega-influencers are highly valued by consumer goods predict that “influencers (will) become and fashion, but nano-influencers can be just as valuable, the new liberated power in Africa” in especially for brands and ideas that trade on trust and 2019. To many this feels like a way for authenticity. Nan influencer is a new term to describe regular people to make their mark on people who have as few as 1,000 followers and are willing politics. to advertise products on social media. Their lack of fame is one of the qualities that make them approachable and But, as we’ve already seen, there are risks when social media is combined with elections, that we’re seeing creep into the influencer landscape as well. In Indonesia, political actors are paying social media influencers to spread propaganda ahead of the 2019 elections. Dozens of influencers, referred to as “buzzers”, are working in swarms to flood social media in order to influence election results.

It’s common for a celebrity to use influence platforms to build their brand, increasing their value as they negotiate media deals and contracts.

We see the same trend among influencers — savvy influencers using influencers can help brands gain trust and authenticity their followings, personal brand, and due to their “real life” authority, we can, through social social capital to further their careers, media, craft an idealized persona through fake followers, start new businesses (e.g., Tammy fake content, fake images, fake recognition, even fake Hebrow, fitness influencer, now experience, none of which can be verified or proven with a 3.6$ million at leisure brand), otherwise, the exact opposite of its original intent. sometimes propelling them into new areas, or into becoming celebrities Deep fakes are further blurring the line between reality themselves. and falsehoods, raising many questions: How do we begin to prove that online political movements are real if we Bots are increasingly playing a can’t even tell if they are created, managed, or followed significant and transformative role in by AI/bots or actual people? This becomes murky social influence not just as followers or territory for advertisers in the business of influencer creators of content, but as influencers marketing. A new status marker has emerged — the themselves. And it’s becoming more number of people who follow, like, or “friend” you. But difficult to differentiate between real deciphering who has real marketplace and consumer human influencers and artificial ones. influence is getting harder to prove, particularly as it becomes more difficult to differentiate on social media With the pickup of social media between humans and AIs impersonating humans. advertising, regulation has followed. The UK Advertising Standards Agency This could all very well lead to the demise of the and Competition and Markets Authority influencer, or at least its transformation, as those have created an Influencer’s Guide with in search of authentic experience and unmediated rules around social media advertising. relationships look to new channels and voices. Reputation The US Federal Trade Commission is a new currency, for employability, value in society; has started selectively bringing legal but how is “influencer value” affecting us — both socio- action against notable brands and culturally and geopolitically? What effect will influencer- paid influencers who haven’t disclosed coordinated misinformation campaigns on social media sponsorships, saying disclosure tools by have on global politics? Or global citizenry? Mainstream platforms like Facebook are insufficient media? as they are. More broadly, what effect will social influence have on In the Middle East, where media can everything from corporate shareholder profit to hiring be influencer-led given blocks on practices to future employability? Will it reinforce traditional new sources and content, pre-existing beliefs to dangerous levels? Ignite more countries like the UAE are even polarizing and extremist viewpoints? Or could it give introducing regulations requiring voice to the disenfranchised, the marginalized, and expensive licenses to become an the subjugated? What made us seek out and listen to influence. In a world of digital influence, influencers in the first place? What new power “influence the “who” (and increasingly, the institutions” are being created, and what will the counter- “what”) become harder to define. While reaction be?

www.modelmag.com.pk | MODEL MAG | 81 82 | MODEL MAG | www.modelmag.com.pk ANSAR MALOOK BHATTI business class and involves too these digital payment giants, much Paperwork, guarantees Pakistan will open doors for AKISTAN is amongst and regulations. It would be Foreign Direct Investment such fortunate countries great to boost and promote and it will also reduce heavily Pwhere youth population digital services paving the demanded paper currency as is %60 of the total population. way for International digital people avoid using cash and This percentage of the regular bigwigs i.e. Google, PayPal, prefer using their credit and users of digital services Amazon, eBay, Yahoo, Alibaba debit cards at online stores, in- such as digital payments Group, Alipay, Stripe and Apple store shopping purposes. or e-payments, internet to enter Pakistani financial EVEN PAKISTAN’S access and professionals in markets specially the PayPal, GOVERNANCE MODEL Smartphone usage provides eBay and Amazon are strongly infinite opportunities to required by freelancers and MAY GO AHEAD WITH succeed as going digital. It is authors to get their Payments MODERNIZING AND the gigantic and innovative processed. At present, only UPGRADING REPORTING initiative taken by Prime Skill, Payoneer and traditional SYSTEM, COMPLAIN Minister Imran Khan to upgrade IBAN/Swift code or wire MANAGEMENT, digital banking infrastructure transfers are available to and easing the conditions or Pakistan which is very costly, RECEIPTS AND requirements and exhausting time consuming having inflated PAYMENTS, PUBLIC paperwork to avail digital fee of %10 to %30 plus bank SECTOR SPENDING services such as e-payments, charges of local bank to THROUGH AN online transactions and the process the amount. ELECTRONIC issuance of credit cards, and their use at online stores i.e. On other hand, our DASHBOARD THAT in-store shopping, fuel fill-up neighboring country India has WILL REFRESH at stations, online utility bill reaped benefits of digital world AUTOMATICALLY IF payments and universities as the world’s best companies ANY DEVELOPMENT fee payment gateways, but i.e. PayPal, Amazon and Google RELATED OR PUBLIC unfortunately, such easy and are serving country with their instant payment facility is innovative digital products and SECTOR TRANSACTION currently available to elite services. By giving access to TAKES PLACE.

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The ownership certificates, falls heavy upon rupee and LUMS, IBA Karachi, IBA, heir ship certificates, birth due to substantial pressure, Sukkur, SZABIST, NUST, FAST, certificates, domicile, PRC and the rupee gets devalued and COMSATS, Virtual University all other certificates should inflation jumps up. and SDPI so that entrepreneurs be generated online through may learn to launch their developing software’s mobile THE GOVERNMENT startups successfully to applications of Android or such SHOULD MAKE THE conquer the digital world. as devices that will reduce the process and improve the DIGITAL LITERACY A Higher Education Commission, productivity of the public COMPULSORY PART IN IT Boards, Technical Education, sector institutes. EVERY MINISTRY AT Intermediate Education FEDERAL, PROVINCIAL Boards should promote digital District Accounts Officers, AND DISTRICT LEVEL Pakistan vision by introducing Account Generals of Provinces governance, payment solutions and Accountant General of BY SETTING UP IT and fund the ideas at school Pakistan so that trail may SKILL DEVELOPMENT and college level. Though some be available to track salary CENTERS TO TRAIN online shopping sites such as disbursements. There should THE SUPERVISORY Popular Daraz.pk and Yayvo. be central directorate of all the AND OFFICE STAFF com have started accepting departments so that they may Credit/Debit Cards issued by have coordination on digital SO THAT DIGITAL Pakistani banks but still the grounds especially the FBR, COMMUNICATION number transactions is very AGP, Finance Ministry and INFRASTRUCTURE MAY low owing to hassles involved Departments, Establishment BE IMPLEMENTED. in getting credit cards from Division, Cabinet Division, NAB Moreover, the Government the banks. At present, only a and Intelligence Directorates. should establish a venture few banks are issuing Credit capital firm to support, Cards with online transactions Digital Pakistan vision will incubate, accelerate and fund and Point of Sale (POS) have a great impact to attract the startups that will ultimately transactions that include Foreign Direct Investment, develop and accelerate the Standard Chartered Bank, strengthening of rupee against mushrooming growth of big unfortunately, limited to big dollar, stabilization of the startups. The entrepreneurship cities such as Karachi, Lahore, economy and discouraging courses must be introduced Islamabad, including Bank paper currency that usually with the help of SMEDA, Al Falah which issues Credit Even after 20 years of online access, Pakistan is still at the beginning of a digital revolution. While we have progressed from modems to broadband to smart phones and witnessed a transformation in the way we carry out our routine tasks, the truth is that Pakistan has been disinclined to fully exploit the opportunities offered by ICT. Pakistan’s position at 110th on the World Economic Forum’s Technology Readiness Index cuts a sorry figure. This is below even some of the Cards on quick processing since it is very costly and conflicted regions of the world. lasting for 10 to 20 days. you cannot be issued credit cards in small cities. There is Silk Bank is also the favorite also a big concern regarding BUT WHY ARE bank of many customers inflated taxes levied upon the WE SO FAR who are interested in digital business community which Transactions. Silk Bank offers need to be reduced if they use BEHIND? AND a wide range of Credit Cards Digital currency since digital as per income levels of currency will enable FBR to WHO IS AT customers. UBL is also offering track payments and appraise credit cards but it has too the financial strength of the FAULT? many conditions and terms. Individuals. The e-currency If we ask the country’s Besides these banks, there are spectrum will help reduce leading telecom firm, Jazz, other banks that are issuing the crime rate, tax evasion, achieving a completely digital credit cards such as HBL, MCB, hoarding of money as People Pakistan without the required ABL, Faisal Bank, Askari bank will use credit cards and digital support of all stakeholders is and JS Bank. The government wallets such as PayPal, Ali Pay, wishful thinking. The journey especially state Bank of Google pay those can easily be towards a digital Pakistan is Pakistan must direct the public tracked and monitored through one that can’t be undertaken and private banks to lower digital systems. alone. Therefore, Jazz, for the markup ratio and ease the conditions to avail this facility especially suited to salaried class and Businessmen. In big cities, credit cards are issued instantly by commercial banks to the employees of Government and companies but in small cities, the untrained and local managers avoid issuing credit cards to customers since it involves risks of recovery or payment of credit Bill. I have personally visited many banks where I maintain my bank account, but regrettably, all the managers expressed their inability or forbade to get Credit Cards

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the longest time, has been recently partnered with the (among others) to enable it insisting that policymakers NIC to organize an SDG to join the league of upper- provide the infrastructure, Hackathon, which allowed middle-class countries. which enables connectivity techpreneurs to come forward to a greater number of with inspiring ideas of startups THE SMARTPHONE, ONE people. Unfortunately, past and walk away with prize OF THE EMBLEMATIC governments have not been money to kick start their so responsive in realizing idea. In 2017, the Jazz Smart TECHNOLOGIES OF the benefits afforded by Schools program was designed DIGITALIZATION, digitalization. Despite the to educate children through HAS ALREADY fact that digitalization will, a digital blended learning CONTRIBUTED GREATLY primarily, improve business platform. The goal was to TO ACHIEVEMENTS processes for the government digitize Pakistan’s youth bulge itself. and equip them to access IN THE SOCIAL AND opportunities when they are ECONOMIC SPHERE. As a company that believes ready. It has enabled improved access wholeheartedly in the power to information, more reliable of digital transformation, Jazz Jazz believes that the time communication, effective data could not be any happier is ripe for digital disruption collection in rural healthcare; about this breakthrough. Jazz of all kinds in Pakistan. As it has facilitated banking has been involved in several Pakistan is committing in remote areas, and much initiatives to both create a itself to the attainment of more. Therefore, further conversation around a digital Sustainable Development digitalization of services can future and contribute towards Goals 2030, digital technology offer equal opportunities to building a Digital Pakistan. has great potential to help the underprivileged sections Pakistan deliver these goals. of society for participation in From Jazz Smart Schools to its Technology, if leveraged the economy. For a developing numerous collaborations with positively, can help achieve nation like Pakistan, ICT National Incubation Center the benchmarks, which include specifically can drive the to support digital startups, ending poverty, hunger, and attainment of these goals Jazz has invested itself in ensuring quality education, by providing access to implementing technological peace and justice and access populations that have been solutions to problems. Jazz to safe drinking water by 2030 deprived. ZULFIQAR ALI BABAR members of the international manufacturers Policy. The automobile industry including government has also reduced akistan already has a South Korea, China, and Japan customs duty on kits of electric significant market for also believe that Pakistan vehicles from 25 per cent to 1 Phybrid vehicles with has a high potential market per cent. Honda›s Vezel, Toyota›s Prius for EV technology, and local and Aqua, and other models businesses are collaborating KARAKORAM MOTORS seen on the roads. The with them to bring EVs in is a Pakistani automobile Automotive Development Pakistan. In the budget –2018 manufacturer based in Karachi, Policy (2021–2016) and the 19, the government has given Sindh, Pakistan. Karakoram launch of China-Pakistan exemptions of 16 per cent Motors is the authorized Economic Corridor (CPEC) customs duty on charging assembler and manufacturer of are encouraging foreign stations of electric vehicles, Dynasty IT electric cars. investments for the new reduction of customs duty automobile brands to enter from 50 per cent to 25 per RAHMAT GROUP Pakistani market, while the cent and an exemption of 15 is bringing electric cars leading manufacturers in per cent regulatory duty (RD) to Pakistan. As per Dawn the automobile industry in on electric vehicles. News, the Group has already Pakistan are not interested to acquired 25 acres of land to introduce EV models or it›s And on November, ,05 establish Electrical Complex at wide range of prices which 2019 Federal government Nooriabad. At the initial stage, target consumers of diverse of Pakistan approved First the group will produce electric income groups. Several Draft of Electric Vehicles buses to tap the transport

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market, and in the second country. The agreement HYBRID CARS phase, a manufacturing plant signing ceremony was held Pakistan already has a would be established at the in Kuala Lumpur. BMW has significant market for hybrid complex to produce electric introduced their top of the line vehicles with Honda›s Vezel cars and two-wheelers. As per electric cars, the i3 and the i8 and Freed, Toyota›s Prius the reports, Rahmat Group in Pakistan. Nissan, Hyundai, and Aqua. However, these will partner with two Chinese Audi and Renault are already cars aren›t being locally manufacturers to turn its plans in talks with the Ministry of manufactured in Pakistan, but into a reality. One company Industries and Production are directly imported from will handle the electric car for producing locally Japan. production while the other will manufactured electric cars in assemble electric vans and the country. Audi is expected ON MAY 2019, AN ALL- trucks. The group also plans to to launch its e-Tron 50 Quattro NEW SUZUKI SWIFT develop lithium batteries for in Pakistan by April 2020. buses, cars and two-wheelers. WAS RUMORED, Rahmat Group has signed an ECONOMIA PRESUMABLY DOING agreement with Chinese EVs is a Pakistani-based TEST ROUNDS ON THE manufacturer BYD. company that specializes ROADS OF PAKISTAN. in the manufacturing of CHONGQING CHANGAN solar vehicles. They mainly The car was rumored to be AUTOMOBILE LIMITED manufacture solar powered registered under Pak Suzuki’s has signed an agreement with bikes, Rickshaws, Golf Carts, name. The most important Master Motors of Pakistan Vans, Cars and Central Air bit of information about this to assemble and sell their Conditioning units. Swift was its hidden emblem cars in the country. Jinbei PAKISTAN IN presumably “Hybrid”. has collaborated with Zenith COLLABORATION Automotive (Pvt) Ltd. to WITH CHINA HAS Pak Suzuki, according to distribute and sell its Electric images, had hidden the vehicles across the country. INTRODUCED ITS FIRST- emblem with tape on it. If the EVER ELECTRIC CAR rumors are to be believed then AL HAJ AUTOMOTIVE COMPANY, TOPSUN this CBU Swift Hybrid could be PRIVATE LIMITED MOTORS, WHICH available in Pakistan by the end of 2020. recently signed an agreement INAUGURATED ITS with Proton as the exclusive SHOWROOM IN JAIL However, it cannot be authorized distributor and ROAD OF LAHORE ON conclusively said whether assemblers of Proton vehicles Pak Suzuki will launch the in Pakistan has plans to launch 3RD JANUARY 2020. vehicle in the local market, as their Electric vehicles in the the company has not made all-electric Neon M3 motorbike any official statement in this in Pakistan. The macho looking regard. The spotted one was sports bike comes with fourth generation Swift. emission-free and noiseless features.

SCOOTERS, Economia is a Pakistani-based company that specializes MOTORCYCLES in the manufacturing of AND AUTO solar vehicles. They also manufacture solar-powered RICKSHAWS bikes and Rickshaws. Sunra, On 2017, Jolta International a Chinese electric bike had created the first locally manufacturer, also has a manufactured electric presence in Pakistan. motorcycle. The company is based just outside of On 31 August 2019, Federal Bahria Town Rawalpindi, Minister for Science and reported that two motorbike and showcased three Jolta Technology visited Pakistan manufacturers from Sahiwal Chargeable Electrical Council of Renewable Energy and Lahore had launched Motorcycles in Gwadar. Jolta Technologies in Islamabad an electric bike series by also develops electric bike kits where he announced to the name of «Jaguar». Auj that can be retrofitted to any introduce eco-friendly Technologies – a Lahore-based Chinese and Japanese bikes electric motorcycles and electric motorcycle company being assembled in Pakistan. rickshaw to save the energy – says they had started a joint Jolta is a subsidiary of Auj and environment. He gave venture with MS Group to Technologies, a company a demonstration of e-bikes produce the bikes. They claim based in Lahore. and e-rickshaws by driving that these are the nation›s them himself. He said that the first both locally designed and Leading automobile ministry would roll out electric manufactured electric bikes. manufacturers, including motorcycles and rickshaws Super Power Motorcycles, across the country. He added On 24th January 2020, Original Star Electric Bikes that electric motorcycles and Sazgar unveiled Pakistan›s by SITARA AUTO IMPEX rickshaws are the future of first locally manufactured Industries Ltd have started the Pakistan›s transportation electric rickshaw. The unveiling introducing EV models. Neon, system. ceremony was held on Sazgar a Pakistan-based motorcycle car plant located at Sundar assembler, has introduced an On 9 October 2019, BBC Urdu Road in Lahore. RAILWAYS Pakistan Railways has 29 electric locomotives of class BCU30E numbered 29-7001. These are British- built locomotives of 3,000 horsepower for 25 kV AC. They are stored out of use because the overhead lines are unserviceable, owing to theft of copper.

CHALLENGES BEING FACED The industry of electric vehicles faces serious

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challenges in Pakistan. The have been shut due to gas major problem is the lack of In the budget 19–2018, the shortage will be converted awareness among common car government had given to EV charging stations. buyers about the advantages exemptions of 16 per cent Pakistan is also planning to of EVs over the combustion customs duty on charging set up special units of electric engine vehicles. stations of electric vehicles, car manufacturing in the reduction of customs duty Special Economic Zones being The shortfall of electricity and from 50 per cent to 25 per established under the China- lack of charging infrastructure cent and an exemption of Pakistan Economic Corridor. are the major reasons why 15 per cent regulatory duty electric vehicles aren›t (RD) on electric vehicles. The CHARGING considered by the public. government had also reduced INFRASTRUCTURE Charging time required customs duty on kits of electric The charging infrastructure for by the electric vehicles vehicles from 50 per cent to 10 electric vehicles in Pakistan has and the driving range that per cent. not been fully developed yet. they offer are considered to be the negative factors On 6th November 2019, In January 2017, Dewan that discourage the local Pakistan’s federal cabinet Motors with BMW inaugurated consumers from buying EVs. had approved the first-ever Pakistan›s first public charging national Electric Vehicles (EV) station for electric and plug- INITIATIVES BY policy in a bid to tackle effects in hybrid electric vehicles in of climate change and offer Emporium Mall, Lahore. Dewan GOVERNMENT affordable transport. In the Motors had installed another first phase, the government station for plug-in hybrid and OF PAKISTAN will focus on converting 30 electric vehicles at Dolmen Mall The Automotive Development per cent of the total number in Karachi on February 2017. Policy 2021–2016 and the of vehicles, mainly cars and launch of China-Pakistan rickshaws, into EVs by 2030. BYD has also plans for setting Economic Corridor (CPEC) According to policy, 100,000 up charging stations in have been encouraging foreign cars and 500,000 bikes and Pakistan which will be done in investments for the new rickshaws will be converted to association with the leading oil automobile brands to enter EVs in next 4 years, and more company in the country, Total Pakistani market. than 3,000 CNG stations that Parco. www.modelmag.com.pk | MODEL MAG | 91 92 | MODEL MAG | www.modelmag.com.pk

level, and hit the 43,207 points, the highest level in 2020, in second week of January 2020. However, this buying spree ended, when the market came under selling pressure due to profit taking and some other reasons. The latest jolt to stock market has been triggered by the corona virus that has motivated investors to pace up profit taking amid global panic on the virus that is emerging as a major challenge in China, South Korea, Iran, Pakistan and some other countries.

Detection of a couple of patients of this virus in Karachi and reports of screening of 1,500 Pakistanis belonging to Karachi and other areas of Sindh province, who recently visited Iran, has further triggered panic in stock market and other circles in the country.

AFTER CHINA AND SOUTH KOREA, IRAN HAS EMERGED AS THE THIRD LARGEST COUNTRY, AFFECTED BY THIS VIRUS. In the last week of Feb 2020, the benchmark index of Pakistan Stock Exchange has fallen to around 38,300 points, showing erosion of more than 5,000 points in few weeks amid multiples reasons, including uncertainty intensified by this virus. KSE- 100 index witnessed massive volatility on Feb 2020 ,27, when the index tumbled to 36,900 points during inter-day trading and later recovered and closed at 38,087 points.

At morning, the benchmark JAVED MAHMOOD CH. marched towards stability as index lost about 1300 points, investors’ evinced interest in showing height of volatility, t the beginning of the renewed buying. Consequently, but later on regained most year 2020, Pakistan the PSX benchmark index, of the lost glory, before the AStock Exchange KSE100-, excelled 43,000 closing of the market with 251 minus points. Renewed buying oil and downward trend in oil market will lose both volume in some important shares like price will certainly dither the and value until the investment MCB, UBL, HBL, Engro and profits of listed companies, returns. Lucky averted a big setback depending on oil trade. in trading at stock market in Experts say the global Pakistan on Feb 27. APART FROM A BIG markets have an impact on BLOW OF CORONA local markets too. With global The market was floating at issues such as the corona virus around 38,300 points on Feb VIRUS, THE EXPERTS affecting markets, the slump 2020 ,28, the current year’s ATTRIBUTE THE LOSSES usually translates to local lowest level of KSE100- index. TO STOCK MARKET equity and this cannot be ruled This was a drastic change from BECAUSE OF HIGHER out. Experts are expecting a January 10, when the KSE100- THAN EXPECTED further increase in inflation as index saw a -17month high, at gas and sugar prices have yet 43,207 points. INFLATION RATES. to be adjusted in the basket Falling OPEC oil prices is With such a high inflation rate, of goods and services that the another important issue experts doubt improvement Pakistan Bureau of Statistics that is eroding investment in the economic activities and uses to trace prices across from the capital market as stock market trading at least in the country. Some analysts oil-based listed companies the short-run. also see the aftermath of profit is expected to squeeze the corona virus playing a because of this unexpected The %14.6 inflation rate, the part in bringing the index development. OPEC crude highest in almost a decade, down. Experts say the global oil has dropped below 54$ a was not expected, and coupled markets have an impact on barrel in last week of Feb 2020 with no revision in monetary local markets too. With global because of substantial decline policy; investors are resorting issues such as the corona virus in demand and further slump in to profit taking. Profit taking affecting markets, the slump global economic activities. is a situation when investors usually translates to local take their investments off- equity and this cannot be ruled In coming days, OPEC oil is loads their stakes in the market out. set to skip below 50$ a barrel to make profits, anticipating because of this factor. Pakistan uncertainty in the capital Stock Market again to gain is a leading buyer of OPEC market. This usually means the +51,000 points in 2020

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Stock market analysts, however, believe that the market is likely to cross 51,000 points during year 2020, owing to growth in earnings and justified price to earnings ratio. Arif Habib Limited, in its report on Pakistan Strategy 2020, said that Pakistan equity market is expected to generate a total return of 25 percent during 2020. AHL experts expect that the They further stated that the have a cumulative around benchmark KSE100- index country has successfully 61.7 percent weight age in the of Pakistan Stock Exchange managed to attract foreign KSE100- index. Higher net to reach 51,000 points by investment in lucrative short interest income coupled with December 2020. The index term government papers. stellar earning rebound in large target mapping methodology High yields coupled with banks shall stem growth in the included: earnings growth; strengthening currency have banking sector, whereas power justified PER; and target price helped lure over 1.2$ billion sector profitability mainly mapping. foreign investment in treasury stem from CoD of HUBC’s bills, which is unprecedented in 130MW coal-based power The analysts believed that the history. Further, this shows the plant. The analysts said that balance of payments front confidence of foreign investors the local bourse is expected to is quite manageable now in the local currency parity and amass strong returns in 2020 with continuous decline in economic reforms, and could supported by ongoing PER re- imports, thanks to Pak Rupee also trigger equities flows in rating hypothesis. depreciation and taxation the country in 2020. Earnings measures at large to curb growth in 2020 is estimated The analysts view that firmness imports, along with several to be 14.4 percent; the double in external sector, stable inflows planned for the next digit growth is attributable foreign currency outlook, hot year tagged with hot money to earnings growth in heavy money inflows, increase in SBP flows which are expected weight including commercial foreign exchange reserves in to lead towards continuous banks (41 percent), power (53 external sector and strong increase in reserves of State percent), fertilizers (12 percent) earnings growth. Bank of Pakistan (SBP). and E&P (10 percent), which FARAN ALI BUKHARI class sought to replace them how it works and its effect with activities such as baseball, on consumers. While the he commercialization horseracing, and boxing. promotional element of of sport is not a cultural advertising has been carefully Tuniversal, but a product Sponsorship has seen a rapid researched, sponsorship has of unique technical, social, and growth in recent years in both rarely undergone systematic economic circumstances. Only the dollars devoted to it and study. It is usually mentioned in the latter part of the 19th its prominence as a legitimate as “war stories” of specific century did organized sport element of a company’s examples which worked well cross the ocean from Great promotional mix. As traditional for a company. Britain and arrive in America. media have become more At that time, urbanization expensive and cluttered, Discusses the definitional forced a large number of sponsorship is viewed as a dilemma of sponsorship, and people to live in new settings cost-effective alternative. As proposes a revised definition. and to abandon traditional an element of the promotional As a step towards better leisure activities, which mix, sponsorship has been a understanding the effects of included drinking, carousing, stepchild when it comes to sponsorship on consumers, and gambling. The dominant a careful understanding of develops and empirically tests

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scales for three attitudinal now been joined by people 90 percent of their earnings. constructs: attitude towards from all political and social the event; attitude towards perspectives. Owners of professional sports commercialization; and franchises are some of the attitude towards behavioral PROFESSIONAL SPORTS wealthiest people in the world. intent. Results show that the Professional sports, a big They continue to make large three constructs consistently business that has grown profits from their sports teams. appear across three global rapidly over the last three In the United States there sports events. decades, may be the epitome are about 110 professional of commercialization, its sports franchises, including THE influence pervasive throughout. football, basketball, baseball, COMMERCIALIZATION Athletes, support personnel and hockey. The combined (managers, coaches, officials, revenues of these four sports OF SPORT leagues equaled 5.1$ billion The commercialization of media persons, lawyers, and agents), and sports team in 1993. In addition to the sports is that aspect of the money from gate receipts sports enterprise that involves owners benefit handsomely from the willingness of sports and television revenues, the sale, display, or use of owners realize profits through sport or some aspect of sport fans to pay to watch their favorite sports and to purchase the buying and selling of so as to produce income. franchises. Sports franchises Some experts prefer the term the commodities endorsed by sports personalities. are very profitable shorthand “commoditization of sport” as long-term investments. a label for the same process. Forbes’s 1994 list of the top- For example, the Dallas Interest in the earning athletes included basketball stars Michael Jordan Cowboys football team was commercialization of sport has purchased for 600,000$ in existed for several decades, at 30$ million and Shaquille O’Neal at 17$ million, golfers 1960. In 1989 the team sold for but only in recent years has 140$ million. The profits for the phenomenon has been Jack Nicklaus at 15$ million and Arnold Palmer at 14$ million, the players, owners, and other taken seriously on a larger associates of professional scale. The first attention came and boxers Michael Moore and Evander Holyfield at 12$ million sports come from various from a small group of critical, sources. One source, the mostly leftist writers, who have each. In most cases, athletes’ endorsements make up over fares paid at the gates for the opportunity to see one’s from the private sector, there high. Television contracts for favorite professional players or is concern about how much the coverage of professional, teams, continues to increase. help and control should be Olympic, and international exchanged. Private enterprises events reach billions of dollars. OLYMPIC GAMES that range from soft drink The return on the investment The ideal of the modern producers to automobile by the major television Olympic Games stands companies compete to be an networks is just as impressive in stark opposition to the official sponsor of the games. Television has altered individual commercialism of sports. For example Coca-Cola paid sports in the effort to However, many commentators 22$ million for the guarantee accommodate larger viewing have argued that this idealism that no competitive soft drinks audiences. In some sports, has been compromised to be allowed to display the additional time-outs have been the point that the Olympics Olympic symbol for the Seoul implemented to allow for more is currently the epitome of Games. commercials. The scheduling commercialism. of events in the Olympic Mass Media Games has been modified not In the early part of the 20th The mass media have been to provide athletes with the century 98 percent of the linked to the commercialization optimum conditions for peak Games’ amateur competitors of sports. They exist in a athletic performances, but to made no money from their symbiotic relationship with allow large audiences in the participation. In contrast, sports, each benefiting greatly United States to view events at today’s Olympic athletes from the other. Sports employ more convenient times. are far from amateurs. all forms of the mass media. The International Olympic Books and magazines that GAMBLING Committee recognized specialize in particular sports A rise in gambling on sporting the inevitable creep are published regularly. events has been an indirect of commercialism and consequence of these professionalism, and instead Newspapers often devote phenomena. Great Britain and of requiring participants to be up to one third of their no Las Vegas permit some legal amateurs they merely ask that advertising space to sports gambling. However, it is likely participants have an “amateur coverage. Radio stations all that more money is bet on spirit.” over the country have changed sports illegally. According to their menu to include -24hour McPherson, Americans lose The Games have also come coverage of sports. However, an estimated 200$ million on under criticism because television has affected sports sports bets annually. The link of the movement toward most profoundly. Television between sports and gambling corporate sponsorship. While and sports are involved in is complex. For example, the most Olympic administrators a relationship in which the profits from legalized gambling recognize the need for support economic stakes are very are often used to build sports

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facilities and to operate many many different purposes, enough because audience is youth sports programs. such as providing information, getting far more fragmented. entertaining, persuading Because of the variety of HOW ADVERTISING and also by carrying a vague audience, it is important IMPACTS THE PURITY general function of culture to to find a way of reaching millions of people. In order the mass audience. Sport is OF SPORTS for mass media to exist, there one of the few instruments, The commercialization of sport must be an audience. sometimes the prime, which is has evolved over decades, able to gather millions people from the 1950’s advertisements In the first place, sport is together. For instance, during of athletes pitching shaving an emotional thing. Hence, the Super Bowl in America the cream to the multi-million it involves everybody. In average view is 97.5 million dollar shoe endorsement fact, during the Football fans. deals of today. Much like World Cup fans feel a great other aspects of capitalism, involvement. Furthermore, when a profit is to be gained HOW DOES THIS people supporting a team are COMMERCIALIZATION by promoting a consumer completely faithful to it. As a product, sport is not exempt consequence, emotions and AFFECT THE from commercialization. sense of attachment generated INDIVIDUAL AND However, even when by sport play such a relevant SOCIETY? adjustments for inflation are role in the marketing strategy. Proponents of modern figured, the astonishingly Secondly, sport is a good sport argue that capitalist lucrative field of sport thing because it is extremely systems have made more commercialization has become important for health and mind sports available to more a staple of product promotion and, in fact, sport is advised people. They contend, too, and corporate gains. by every doctor. So, the that the owners, producers, association of health and sport and distributors of sports EFFECT OF may be a perfect combination are simply responding to the for those companies which, demands of sports consumers. MEDIA ON sponsoring a sporting event, Critics of commercialization want to become more reject this view and argue that SPORTS appreciated by the large in reality only a small segment Influences of Mass Media in audience. of society-the wealthy-have Sport When communication access to many sports. In is spread not just between As a matter of fact, sporting addition, some critics also two individuals but rather events can change the image argue that commercialization between tens of millions of of products, thus it may modify via television especially has people it is known as mass the perception of brands in turned sport yet another form media. Mass media is known the global audience. In the of passive entertainment. as the central nervous system third place, nowadays, TV In addition, it is argued that of society. “Mass media has advertisement is not effective commercialized sports, when used to display social status, effectively divides society.

Finally, critics complain that commercialized sport is another way of defining life in terms of the purchase price rather than an inner sense of meaning and achievement. Despite these criticisms, there is little doubt that sports continues to become more and more commercial and the process is spreading to the non-Western world. www.modelmag.com.pk | MODEL MAG | 99 100 | MODEL MAG | www.modelmag.com.pk