#PakistanTheWorldfolio Our World #TheWorldfolio Thursday, October 22, 2015

artnership w n p ith partnership w I In ith

E mbassy of Pakistan in the United States PAKISTAN Board of Investment This supplement to USA TODAY was produced by United World Ltd., Suite 179, 34 Buckingham Palace Road, London SW1W 0RH – Tel: +44 (0)20 7305 5678 – [email protected] – www.unitedworld-usa.com Security and economic gains

Internationalawaken rating agencies praiseinvestor Pakistan over progress interest made on the security front, while the country experiences increased political stability and is poised to be the world’s next economic turnaround story. In spite of these advances, Pakistan is still believed to be a country in turmoil, which is far from the realities on the ground pon an invita- “The global threat of tion from Pres- terrorism cannot be ident Barack defeated unless we Obama, Prime address its underlying Minister of Pa- causes. Poverty and kistan Nawaz Sharif is ignorance are part of in Washington today for the problem. Extremist U ideologies must a meeting at the White House, and he is set to be opposed” bring good news. First and foremost, Mr. Sharif will Nawaz Sharif, tell of an encouraging re- Prime Minister of Pakistan cord on security that will be received here with a sense of relief. Indeed, his nation As credit rating agen- of 180 million is situated in cies are upping Pakistan’s one of the most volatile re- ratings – in June, Moody’s gions on the planet, tucked upgraded its sovereign next to Iran and Afghani- credit ratings for the first stan – with which it shares time since 2008 and in a long border – in the west, September, Fitch assigned China to the north and In- it a B credit rating with a dia to the east. stable outlook – foreign After Mr. Sharif accepted investors are starting to his White House invitation see potential in this strate- in August, U.S. National Se- gic Asian country. curity Adviser, Susan Rice, As in most parts of the commended the Prime developing world, China Minister for supporting re- is leading and has pledged cent talks between the Af- Pakistan Prime Minister Nawaz Sharif talks with U.S. President Barack Obama at the Nuclear Security Summit in March 2014 to invest about $46 billion ghan government and the in infrastructure projects, Taliban, and urged Paki- in fighting Islamist extrem- show that major terrorist “Pakistan’s three- healthy pace and reached nearly equal to the amount stan to intensify its efforts ism. The Pakistani army has attacks have declined by year IMF-supported $13.5 billion at the end of foreign aid the U.S. has to counter terrorist sanc- been combating the domes- 70% since last year. This program has produced of June 2015, covering provided to Pakistan over tuaries inside its borders in tic front of the Taliban and significantly improved se- significant achievements three months of imports,” the past decade to support order to promote regional its allies in the north of the curity environment com- in reducing near-term said the IMF. its war in Afghanistan, peace and stability. country, along the border bined with the economic risks, improving the “Pakistan’s three-year according to Bloomberg. Ms. Rice’s comments with Afghanistan. policies of Mr. Sharif’s fiscal balance, and IMF-supported program Fitch also noted that “the were echoed by a U.S. of- “We will fight terrorism government are bearing strengthening the foreign has produced significant China-Pakistan Economic ficial, whom the New York in all its forms and mani- fruit. For the first time in exchange reserves of the achievements in reducing Corridor initiative an- Times quoted as saying, festations, irrespective of years, hope is palpable for State Bank of Pakistan” near-term risks, improv- nounced in April could “Addressing this challenge who their sponsors are,” Pakistani entrepreneurs ing the fiscal balance, and significantly strengthen will be imperative for Paki- Mr. Sharif said recently in and the general popula- Harald Finger, strengthening the foreign Pakistan’s economy.” stan’s relations with its his address at the 70th ses- tion, a quarter of which IMF Mission Chief for Pakistan exchange reserves of the Western investors have neighbors and with Wash- sion of the UN General As- live below the poverty line. State Bank of Pakistan,” also shown interest, as re- ington, especially given the sembly. “The global threat And international institu- added the IMF’s Mission flected by major interna- recent upsurge in violence of terrorism cannot be de- tions as well as investors for next year. This perfor- Chief for Pakistan, Harald tional business media such in Kabul and the Taliban’s feated unless we address its are taking note. mance is “helped by macro- Finger. as The Wall Street Journal bloody campaign this fight- underlying causes. Poverty In August, the Inter- economic stability, low oil The World Bank, for its (“Pakistan’s pleasant sur- ing season in Afghanistan.” and ignorance are part of national Monetary Fund prices, planned improve- part, said, “Pakistan’s eco- prise”) and The Economist The office of Mr. Sharif the problem. Extremist ide- (IMF), which extended a ments in the domestic nomic growth is showing (“Pakistan is enjoying a rare hailed Ms. Rice’s visit to ologies must be opposed.” $6.2 billion loan, praised energy supply, and invest- signs of sustained recovery. period of optimism about Pakistan and stressed the Pakistan’s efforts to com- the 4.1% growth in gross ment related to the China- Supported by a favorable its economy”). importance of cooperation bat terrorism are paying domestic product this year, Pakistan Economic Cor- slump in international oil As the London-based chief between the two countries off: government statistics projecting 4.5% growth ridor. Inflation dropped prices and stellar imple- economist at Renaissance to 1.8% in July. Despite de- mentation of the IMF re- Capital, Charlie Robertson, clining exports, the exter- form program, growth re- told Bloomberg News in A UNITED WORLD SUPPLEMENT PRODUCED BY: nal current account deficit covery remains underway, June, Pakistan “is the best, Paulina Gallardo, Country Director, Miguel Caso, Editorial Director, Lucia Flematti, Proj- narrowed to 0.8% of GDP. with projected GDP growth undiscovered investment ect Assistant, Leandro Cabanillas, Regional Director, Fatima Ruiz Moreno, Regional Director Foreign exchange reserves now at 4.3-4.6%,” it reported opportunity in emerging or continued to increase at a in September. frontier markets.” 2 Thursday, October 22, 2015 Distributed by USA TODAY PAKISTAN Op-Ed: U.S. and Pakistan in a “long term and mutually beneficial partnership” With the two countries joining forces to combat violent extremism, ensure regional stability, and develop economic integration, relations are stronger than ever, writes Jalil Abbas Jilani, Pakistan’s Ambassador to the U.S. RUSSIA s the arc of in- stability extends its tentacles from Africa to the Middle East, KAZAKHSTAN with shadowy forces like MONGOLIA IslamicA State of Iraq and the Levant (ISIL) seeking UZBEKISTAN KYRGYZTAN to expand influence on TURKMENISTAN the fringes of South Asia, President Obama’s call for forging counter-terrorism IRAN AFGHANISTAN CHINA partnership from Sahel to South Asia must be KUWAIT Jalil Abbas Jilani, Ambasasador of Pakistan to the U.S. NEPAL viewed as a timely initia- PAKISTAN BHUTAN tive geared to stemming QATAR this emerging exponent of divisible for the country Thanks to the wide UAE BANGLADESH violent extremism. and that progress on one ranging economic SAUDI OMAN MYANMAR ARABIA INDIA LAOS Pakistan, the largest objective could not wait at reforms introduced by the government, Pakistan’s democratic Muslim state the cost of the other. The YEMEN THAILAND in South Asia, is joining government’s response to economy is showing CAMBODIA hands with the United terrorism and militants positive signs of recovery. States and other civilized challenging the writ of the Resultantly, inflation has VIETNAM PHILIPPINES reached its lowest in SRI nations of the world in our State was the comprehen- LANKA enduring struggle against sive military operation, several years and foreign- extremism. Pakistan and Zarb-e-Azb. It stands out exchange reserves of the the United States have suc- as a critically important country have more than cessfully collaborated in national endeavor that has doubled, touching their the past to extinguish the enjoyed unflinching sup- highest level ever (over core of the terrorist group port of all the major po- $18.6 billion). A map which shows the route of the China-Pakistan Economic Corridor compared with maritime trade route known as Al-Qaeda from litical parties and has been the region, and indeed fully owned and blessed Pakistan has credentials to by the people of Pakistan. stan’s economy is showing at advanced stages lend us Eighteen months down corporate culture is en- offer its support to the in- Eighteen months down the positive signs of recov- the confidence that Paki- the road, Zarb-e-Azb is trenched in the principles ternational community for road, Zarb-e-Azb is the ery. Resultantly, inflation stan’s energy crisis will the greatest success story of free market economy. this monumental task once greatest success story of has reached its lowest in be largely contained by of not only Pakistan’s It is this democratic and again. After all, Pakistan not only Pakistan’s coun- several years and foreign- end of 2017. counter-terrorism stable Pakistan that offers has been both a frontline ter-terrorism history but exchange reserves of the Pakistan’s growing en- history but has also the best chance of part- state and itself the greatest has also been acknowl- country have more than gagement with the World been acknowledged nering with the United victim of terrorism. edged and appreciated doubled, touching their Bank – as evidenced by and appreciated by the States and other nations of As Ambassador of Paki- by the defense experts highest level ever (over the approval of an unprec- defense experts around the world to deal with our stan to the United States, I around the world. Today, $18.6 billion). edented $11 billion ‘Coun- the world. common challenges, rang- wish to highlight some key we can proudly say that The efforts of the Gov- try Partnership Strategy’ ing from violent extremism developments in the coun- Zarb-e-Azb has broken the ernment are also bearing for Pakistan (2015-2019), to climate change, nuclear try that have transformed backbone of all terrorist fruit on the energy front. as well as the release of Pakistan is also commit- proliferation and refugee its security and economic networks operating from The roadmap for installing eight tranches by the In- ted to playing a positive crises. Pakistan and the paradigm over the last two Federally Administered 21,000 megawatts (MW) ternational Monetary Fund role for restoring peace U.S. are already working years, making Pakistan an Tribal Areas (FATA) and of cheap energy in the (IMF) as part of its Extend- and stability in the region. closely in many of these even stronger partner of their command and con- short, medium and long ed Fund Facility program – Pakistan has demonstrated areas under the Strategic the international commu- trol structures have been terms has been finalized. is proof of the international resolve and willingness to Dialogue Framework. With nity in stemming the rising completely destroyed. We intend to tap coal, community’s growing con- facilitate an Afghan led more convergences on re- tide of ISIL and promoting The nation-wide effort is gas, hydel, renewable and fidence in the direction of reconciliation between gional stability, economic peace and prosperity in not confined to eradicating nuclear energy resources. our economy. all stake holders in Af- integration and mutual South Asia. terrorist networks and de- The government has add- Acknowledging these ghanistan. As a responsible desire to expand people to On assuming office in stroying their safe havens ed more than 3000 MW positive developments, neighbor, Pakistan is ready people contacts, this rela- 2013, Prime Minister Mu- in FATA. In line with the of operational capacity to Moody’s and Standard and to make peace with India tionship is transforming hammad Nawaz Sharif National Action Plan, intel- the national grid, half of Poor’s have upgraded Paki- on principles of sovereign into a long term and mutu- understood that peace ligence-based law enforce- which is directly linked to stan’s credit rating and eco- equality and mutual re- ally beneficial partnership. and development were in- ment and clean up opera- U.S. assistance in the en- nomic outlook from stable spect in order to resolve all As Prime Minister Mu- tions are also proceeding ergy sector cooperation. to positive. Bloomberg has disputes, big and small, for hammad Nawaz Sharif throughout the country in- What’s more, the conclu- recently short listed Paki- lasting peace in South Asia. visits Washington DC this Pakistan and the U.S. cluding in major urban cen- sion of the China Paki- stan as one of the attrac- Having consolidated its week on the invitation are already working ters to eliminate any terror- stan Economic Corridor tive emerging markets in democratic institutions af- of President Obama, the closely in many of these ist sleeper cells. Overall, it (CPEC) in April this year the next few years. A new ter a peaceful transition in two leaders will discuss all areas under the Strategic is no small achievement for an ambitious portfo- energy policy, new security 2013, Pakistan stands tall these issues in great detail. Dialogue Framework. that while incidences of lio investment of $46 bil- policy, initiation of several in the comity of nations I am confident that Prime With more convergences terrorism continue to rage lion (mainly focusing on big and small dams and en- as a large Muslim majority Minister’s engagements on regional stability, in many troubled spots of energy related projects) ergy projects as well as re- democratic State commit- in DC will contribute to economic integration the world, in Pakistan ter- will be a game changer gional connectivity initia- ted to political pluralism, further strengthening the and mutual desire to rorism attacks have come in turning Pakistan’s eco- tives like CASA 1000 and good governance and the relationship not only for expand people to people down almost 70%. nomic fortunes. It will also TAPI (Turkmenistan-Af- rule of law. Pakistani me- the benefit of the peoples contacts, this relationship Meanwhile, thanks to serve as a source of prog- ghanistan-Pakistan-India- dia is conspicuously free, of Pakistan and the United is transforming into a the wide ranging eco- ress and prosperity in the Pipeline) are all promising our courts are indepen- States, but also for peace long term and mutually nomic reforms introduced wider South Asian Region. signs of a better, stable and dent, civil society is vigi- and stability in South Asia beneficial partnership. by the government, Paki- Multiple projects already progressive Pakistan. lant and our business and and the broader region.

Trade Crossroads: strategic positioning on a promising emerging trade route and the China- Pakistan Economic Corridor Op-Ed: Sirajuddin Aziz, President and CEO of Habib Metro Bank says that the China- Pakistan Economic Corridor will bring in $46 billion worth of Chinese investment

The China-Pakistan Eco- nomic Corridor (CPEC) is being referred to as a game changer, and rightfully so. Pakistan is strategically lo- cated on the China-Middle East and China-Central Asia routes. Gwadar port in Paki- stan offers China the prospect of access to the warm waters of the Persian Gulf through a ‘Maritime Silk Route’. It also offers the prospect of signifi- cantly reducing the region’s cost of doing business in Afri- Sirajuddin Aziz, President and CEO, Habib Metro Bank ca, Europe, and the Americas. The Corridor, connect- The CPEC will bring a ciprocal benefits by pre- ing Kashgar in China to promised $46 billion worth emptively mobilizing its Gwadar, will reduce China’s of Chinese investment to industry and foreign & oil import costs from the Pakistan, with $11 billion be- trade policies. Without this Middle East significantly ing utilized for infrastructure required groundwork, the down to one-third of what development and $35 billion Corridor will only serve as it currently incurs. This new being channeled into energy the realization of the Chi- route measures 3,626 miles ventures, which are expected nese Dream of obtaining till Central China (and only to spur growth of industrial a foothold in the Indian 2,295 miles till West China) zones. The Corridor will also Ocean - through Pakistani – compared to the route facilitate Pakistan’s trade with soil, with protection being through the Strait of Ma- the Central Asian republics. offered on Pakistani tax- lacca, which amounts to a Pakistan must seek to payer money by the Paki- distance of 9,912 miles. optimally utilize these re- stani armed forces.

Our World Insert is produced by United World. USA Today did not participate in its preparation and is not responsible for its content Distributed by USA TODAY Thursday, October 22, 2015 3 PAKISTAN Companies are making “very good money” here Dr. Miftah Ismail, Chairman of the Board of Investment, discusses Pakistan’s growth potential and what it is that makes the South Asian nation such an attractive investment proposition

United World: Paki- tion in the last two years, We also have now the high- stan has been dubbed by and fortunately for us the est ever foreign exchange Forbes as the ‘next suc- results have started com- reserves in our history. So cess story’ and the best- ing in better than we ex- we have come a long way undiscovered investment pected and sooner than we in terms of getting the right opportunity by Bloom- expected. In this last fiscal foundation in Pakistan al- berg. How would you year, from July to June, we though we are not where we evaluate Pakistan’s grow- have had growth of 4.25%, need to be. We need to be at ing pains over the last which is the highest in 8 7-8% growth or more. We’re two years? years. The Inflation rate not happy with just 4.25%, Dr. Miftah Ismail: We have was 2.11% on a year-on- but we understand that the not lived up to our poten- year basis, which is again world´s economy is slow- tial in the last fifty years, or the lowest in 13 years. The ing down so this is a good twenty years. But the last State Bank of Pakistan has achievement for us. two years have been really been able to bring down the foundational for us, we’ve interest rate to 6.5%, which How would you evalu- made a very solid founda- is the lowest in 42 years. ate the role of the BOI to attract and promote in- vestment from the USA and which are the main challenges to overcome A great destination in your opinion US is a large trading part- Miftah Ismail, Chairman of the Board of Investment ner for Pakistan, US is a for investment large investor in Pakistan, In this op-ed, Chairman of the Board of Investment, directly and also indirect- to Washington DC and ing it to the final client. Our about that. Is Pakistan an Miftah Ismail, discusses why Pakistan offers some of ly. US obviously is a large Chicago will give a great road and rail infrastructure easy place to do business? I the best investment opportunities in the world technology partner as well. and better understand- will be upgraded. We also think so. Is Pakistan a lucra- The US government in- ing of the country and the plan to establish special tive place to do business? I stitutions are helping the wonderful changes that economic zones where you think so as well. Is Pakistan here to Sharif’s government, all the Pakistani Government to have happened already in can have factories that are as easy as Switzerland and invest fundamental economic in- develop better tools to Pakistan; this story needs set up by Chinese investors Singapore? Probably not is one dicators are pointing in the govern, whether it’s the to be told. or others. We are fervently but there is another side to of the right direction. power sector or humani- promoting free trade and this equation. For instance, hardest Since the early 90s we tarian aid. We enjoy very China is expected to in- regional connectivity and if you invest in Pakistan in decisions investors make. have guaranteed 17% an- good relations with the US, vest about $46 billion we look forward to becom- power generation, you get WThey have to balance re- nual dollar return in ener- probably the best in many into infrastructure and ing a trade partner to all a minimum 17% return on wards and risks, look at past gy. Almost everyone who years. They make a great energy projects under interested nations. investment, that’s a guaran- track record, future oppor- has invested in energy in effort encouraging both the so-called China- teed ROI in Pakistan. We are tunities, and consider a host Pakistan wants to invest US investors and over- Pakistan Economic Cor- Reliable and liberal a very thriving democracy, of regulatory issues. But no more. That tells you about seas Pakistanis to invest in ridor (CPEC). In your regulation is key to be- with very independent me- matter what calculus inves- our track record and future Pakistan. We are trying to opinion, how will this coming an attractive in- dia and very independent tors’ use, Pakistan offers potential. General Electric increase investments from enormous inflow of FDI vestment destination. In courts. Look at the KSE, in some of the best invest- is poised to install mul- the US based on sound boost Pakistan´s eco- your opinion, what ad- the last 14 or 15 years it has ment opportunities around tiple power plants by 2017. key economic fundamen- nomic growth? What will vantages do Pakistan´s given more than 20-30% real the world. Our consumer markets are tals. The US Exim Bank is it change? investment policies offer return in dollar terms. So With close to 200 million booming too and many providing more loans for The corridor does two or compared to other coun- there is a history and record people, about two-thirds of US-based multination- US companies to invest in three things for us. It im- tries in the region? of KSE being one of the best whom are 25 or less, Paki- als, Coke, Pepsi and P&G Pakistan. Some companies proves our electricity gen- FDI is as protected in Paki- performing stock markets stan offers a growing con- included, keep investing that are already present eration capabilities because stan as it is anywhere else in the world. P&G, Unile- sumer market and a skilled more in Pakistan. in the country are doing a they will install power plants in the world. We have legal ver Pakistan, Nestle Paki- and disciplined workforce. And it’s not just large great job such as GE. They in Karachi, Sindh and Pun- guarantees, Pakistani laws stan, all of those companies With proven large coal, players who find Pakistan are very active in Pakistan; jab as well as and solar and to protect investments. We are staying in the country. copper and hydrocarbon lucrative. Smaller com- a third of all power gen- wind power plants. It also have never nationalized a Coca Cola is investing 350m reserves Pakistan has some panies, from IT start-ups eration in Pakistan comes upgrades our transmission foreign industry in Pakistan dollars in Pakistan as well. of the best natural resourc- to solar technology firms through GE turbines. US and distribution infrastruc- and we have signed foreign There must be some reason es globally. And after two find Pakistan a great des- obviously has unbeatable ture because electricity is arbitration clauses for large they’re staying here. There’s years of successful stew- tination for investment technology, therefore we not just about producing it investment in Pakistan. So only one reason I would say, ardship of the economy and outsourcing of busi- want to use their expertise. but also about transmitting investment is much pro- they’re making money, very by Prime Minister Nawaz ness processes. The Prime Minister’s visit it efficiently and distribut- tected, there is no doubt good money.

GDP GROWTH

3.6% 3.8% 3.7% 4.03% 4.24% (2010-11) (2011-12) (2012-13) (2013-14) (2014-15)

GDP COMPOSITION 2014-15

Finance & insurance Transport, storage & communication 24.06% 20.88% Whole sale & retail trade 10.62% Other industrial sector 13.36% Large scale 9.68% manufacturing 18.26% Agriculture 3.14% Other services

CONCENTRATION OF EXPORTS 2014-15

Other items 31%

Cotton manufactures 55% Leather 9%

Rice 5%

Our World Insert is produced by United World. USA Today did not participate in its preparation and is not responsible for its content 4 Thursday, October 22, 2015 Distributed by USA TODAY PAKISTAN Sweeping reforms pave the way for economic prosperity Political change and regulatory reform help Pakistan to emerge as a major growth prospect with a burgeoning economy and numerous investment opportunities

ew countries have ger term strategies can now jected GDP growth figures, experienced such be put into play. “Fortunately, there is enormous room for a swift and whole- these positive developments expansion in our banking sec- sale turnaround in and improving business sen- tor. Our national investment prospects as Paki- timents have created much policies are quite liberal, and stan, and having faced seem- needed room for the policy we welcome foreign investors; Fingly insurmountable chal- makers to focus on a compre- they not only bring in invest- lenges just over two years ago hensive reform and growth ments in our country, but also the country’s economy is now strategy. To further strengthen share with our banks their ex- focused on continuing growth. this hard earned macroeco- periences of business model Pakistan had struggled nomic stability and to unleash and governance.” on the global stage but since the growth potential, Pakistan The combination of an im- Prime Minister Nawaz Sharif’s is following a well-defined proved regulatory system, po- election win in 2013, sweep- reform process to deal with litical reform and the added ing reforms have enabled the structural rigidities.” boon of low oil prices have all Pakistani economy to return Key strategies include the combined to help Pakistan’s to prosperity. privatization of loss making economy grow on a sustain- The most vital aspect of public sector enterprises, which able basis, while an improved Mr. Sharif’s actions after tak- will free up fiscal resources and security situation is helping to ing office was to stabilize the - with improved tax revenues grow confidence in the coun- economy and provide a sound - mean more money can be try. But Mr. Wathra is keen and reliable footing for busi- injected into vital infrastruc- to attract investors for both nesses and the private sector. ture developments. finance and their expertise in The country approached the Private sector investment order to help put the nation International Monetary Fund is also expected to surge as onto the right track to achieve (IMF) for support in 2013 fac- companies are enticed to assist its Vision 2025 target. ing a balance-of-payments cri- with Pakistan’s energy short- “With improved security sit- sis that has since been averted. Minister of Finance, Mohammad Ishaq Dar age while companies from the uation and a more comfortable Importantly, however, the US are increasingly interested external account, foreign inves- Pakistani government has also this year, compared with 8.6% “The IMF Executive Board steps on improving the busi- in forging ties with the oil and tors are now tracking Pakistan. ramped up reserves at the State in 2014, and further monetary welcomed the authorities’ ness climate and the privati- gas sector in the country. The And why not? This country of- Bank of Pakistan (SBP), and in easing is expected to help pro- commitment to economic zation of public enterprises China-Pakistan Economic fers immense potential due to a August recorded the highest pel a widespread recovery in reforms and noted that already underway. Corridor (CPEC) is also set large domestic market, as well reserves figure achieved by the private sector investment. The economic activity in These reforms have been in- to provide further avenues as its geographical location that country to date. result of this, it is hoped, will Pakistan is picking up cluded within Pakistan’s Vision for foreign direct investment, provides a gateway to central Such statistics, and Mr. be improved growth numbers pace and vulnerabilities 2025 project, which outlines a and the construction sector is Asian countries.” Sharif’s regulatory interven- with a real GDP target of 5.5% are gradually receding. At roadmap for the country and poised to boom. “The first tangible success tions, have helped to slash set for 2016. the same time, it called for aims to move the Asian nation “It is set to gain from mega is the start of development the country’s fiscal deficit, Pakistan’s widespread continued efforts to lock in into a group of upper-middle- infrastructure projects and work on infrastructure and which had loomed over Paki- program of reform has cut the recent macroeconomic income countries within a de- growing private sector resi- energy projects under the stan and topped 8% just three across many sectors but one stability gains as well cade. To achieve this, a GDP dential projects,” adds Mr. CPEC. While China is in- years ago. It has since dropped of the most important moves as for maintaining the growth of around 8% will be Wathra. “Work on road con- creasing its stakes in Pakistan to under 5%, enabling the was to reduce costly and in- momentum of structural required between 2018 and struction under CPEC is likely in various other sectors like country to regain access to efficient electricity subsidies reform to achieve high 2025, something Mr. Wathra to gather pace during the year telecom, and renewable en- international capital markets which have been slashed and durable growth over says can be achieved by focus- and the manufacturing sector ergy, Japanese investors have and implement a long-term from 2% to just over 0.5% of the medium term” ing on developing the work- will be a major beneficiary as also shown keen interest in strategy for growth. GDP this year. Further drops force, ensuring sustained and the construction and allied in- investing in Pakistan’s auto- “Pakistan started broad- are expected, until the fig- Harald Finger, indigenous growth, and main- dustries are likely to gain from mobile sector and coal-based based reforms under the Ex- ure reaches around 0.3% in IMF Mission Chief for Pakistan taining governance through this increasing activity.” energy projects. Similarly tended Fund Facility (EFF), 2016, and Mr. Wathra says institutional reform and mod- Such a positive outlook is Russian and Korean firms covering resolution of struc- the result of such actions has ernization of the public sector. driving interest amongst in- are also planning to enhance tural issues, removal of energy been to create a more buoy- the country’s infamous energy Equally important will be vestors and the financial sector investment in Pakistan’s infra- shortages and inefficiencies, ant macro environment for shortage issues. encouraging private sector and is proving particularly attrac- structure and energy sectors.” consolidation of fiscal ac- the country that “has already Electricity outages are com- entrepreneurship-led growth tive, with a consistent track The US is also a major counts, strengthening of finan- allowed SBP to focus on monplace and the infrastruc- and developing a competitive record of profitability. The source of FDI in Pakistan, with cial stability, and enhancement growth, and reinforce trans- ture for both creation and sup- knowledge economy, adds Mr. industry still has considerable a total stock of US$1.2 billion. of central bank independence,” mission of monetary policy.” ply of power across Pakistan Wathra, while modernizing room for expansion, with only In 2015, it had a share of 32% explains Ashraf Mahmood Mr. Wathra is also keen to has hindered the country for transport infrastructure and re- 12% of the country’s 180 mil- of total net inflows, according Wathra, Governor at the State see SBP expand its remit and decades, stunting economic gional connectivity is also key. lion population having access to Mr. Wathra, with energy Bank of Pakistan. the formulation of an indepen- development and providing “We know achieving this high to financial services meaning and information technology “These reforms, along with dent monetary policy decision- constant challenges for the growth will be challenging,” the growth prospects aplenty. sectors proving particularly the decline in oil prices, have making committee would populace as a whole. SBP chief says, who admits that “Not only are large banks attractive for American inves- definitely catalyzed signifi- enhance operational indepen- Efforts are now being made reaching the target while dealing performing well, middle-tier tors. The oil and gas explora- cant improvement in macro dence of the State Bank as it across the energy sector and with terrorist threats and issues banks have also evolved into tion sector still has “a lot of economic conditions over the pursues price stability, he says. there are plans to entice inter- such as climate change will re- good shape in terms of growth, potential” as well, he adds. last two years,” he says, adding “The proposed reforms national investment to develop quire persistence. profitability, and solvency,” Mr. The two countries have al- that reserves have been vital in would further improve infrastructure and supply proj- Yet Pakistan has become Wathra says. “Being an emerg- ready agreed to facilitate and ensuring stability in the foreign the governance structure; ects. Chinese companies have one of the more stable coun- ing economy with decent pro- accelerate private investment exchange market. Domestic strengthen personal autonomy been quick to make the most of tries in the region over the in clean energy projects with reforms have also been cru- of Board members; and ensure the considerable opportunities past two years and its macro the aim to add at least 3,000 cial to Pakistan’s recovery and the financial autonomy of the on offer while the recent agree- economic outlook is largely “Positive developments megawatts to Pakistan’s na- regulatory changes to both SBP,” continues Mr. Wathra, ment between the US and Iran positive. Its IMF program is and improving business tional grid within the next taxation and the energy sector who adds that the financial looks set to kick start Pakistan’s on track and ratings agency sentiments have created three to five years and there have brought returns, deliver- organization has already in- oil and gas industry, with the Moody’s recently upgraded much needed room for the are also plans to cement ex- ing real GDP growth. troduced measures to improve country strategically placed to Pakistan’s credit rating by a policy makers to focus on port ties between the nations “The last two years have the interest rate corridor. benefit on many fronts. notch, reflecting a “stable out- a comprehensive reform with a Bilateral Investment proven helpful in uplifting the While some reforms have Furthermore, Pakistan’s tax look”, something noted by the and growth strategy. To Treaty (BIT). While the US economy of the country,” says come as a direct result of Mr. system has been revamped country’s finance minister. further strengthen this hard has supported the country in Finance Minister, Mohammad Sharif’s policies, Pakistan has with numerous Statutory Mr. Dar says the upgrade is earned macroeconomic its fight against terrorism, Mr. Ishaq Dar. “GDP growth was also benefitted from the global Regulatory Orders, or SROs, “recognition of Pakistan’s ro- stability and to unleash the Wathra is clear that he wants recorded at 4.24%, while the slump in oil prices. As a net that allow loopholes for tax bust economic performance growth potential, Pakistan to see concentrated efforts government has managed to importer, the result has effec- exemptions and concessions that the foreign exchange re- is following a well-defined on improving trade - and not bring down the fiscal deficit to tively been a cash injection for to be closed. These changes serves are at a record high to- reform process” simply receive aid payments, 5.3% from 8.8%.” the country that perhaps for- have come hand-in-hand with day and exceed $18.5 billion.” yet another clear marker of the Elsewhere inflation fell to tuitously arrived as the govern- improvements to the country’s And Mr. Wathra says the Ashraf Mahmood Wathra, growth ambitions that Paki- a decade low of 4.5% earlier ment itself focused on tackling trade regime with some initial buoyant economy means lon- Governor, State Bank of Pakistan stan now holds.

Public and private programs help build better society Government initiatives, the country’s history and one helped to improve transpar- ity, those using 50 kilowatt ship, and the Institute of Busi- “Through our sports divi- such as the Benazir of the largest in South Asia. ency and the delivery of funds hours a month and below are ness Administration are among sion, which has given the na- Income Support The short-term objective of the to beneficiaries. exempt from electricity price the schools it has assisted with tion hockey and cricket heroes, Program, combined with program was to cushion the For instance, more than increases which this year was donations for scholarships and we added new high impact the Corporate Social adverse impact of the food, fuel, 100,000 women are now reap- more than 30%. infrastructure improvement. programs to engage our youth Responsibility projects and financial crisis on the poor, ing the benefit of a new cell While the lion’s share of so- “We aim to provide acces- who possess talent and need of Pakistan’s private but its broader objective was phone and for the first time cial assistance is still managed sible education, affordable and our backing,” said Sultan Ali Al- sector are ensuring aid to provide a minimum income learning to engage in modern by the government, the private high quality healthcare and lana, Chairman of HBL. “One is being given to the most support package to those most day technology. sector, particularly the bank- improvements in infrastruc- such initiative was our celebra- vulnerable and creating in need and to those who are To get their handsets, BISP ing industry, has stepped up its ture and community wellbe- tion for Pakistan’s Street Chil- hope for a better future highly vulnerable to economic clients must bring their national efforts to support the commu- ing through a detailed and dren Football Team, who made shocks ranging from illness identity cards and have their nity through its Corporate So- all-encompassing CSR pro- us all proud by making it to the and unemployment to natural thumbprints checked against cial Responsibility programs. gram,” said Wajahat Husain, Street Children’s World Cup in When world leaders gath- disasters. With funding help the National Socio Economic When a 7.7 magnitude President and CEO of UBL. Brazil and winning a bronze ered at the United Nations in from the World Bank, BISP Registry (NSER), the infrastruc- earthquake struck the province “We intend to take our vision medal in 2014.” September to make a commit- currently provides direct cash ture key to the success of the of Balochistan, killing nearly forward to become a recog- The Al Baraka Bank in ment toward eradicating ex- transfers to nearly five million program. The NSER hosts a da- 400 people and injuring hun- nized player in a viable Paki- Pakistan adheres to Islamic treme poverty by 2030, it was families, up from 1.7 million tabase of more than 27 million dreds in September 2013, Unit- stan, by entrenching ourselves principles of banking so it an opportunity for Pakistan’s families since the program was households, the first in South ed Bank Limited (UBL) one of as a leading corporate citizen doesn’t offer interest; instead leaders to really measure the launched in 2008. Asia and determines beneficiary the oldest and largest private and, in doing so, reaching out depositors share in the risk progress the country has made The size of monthly ben- qualification based on an objec- banks in Pakistan announced and elevating the standards of and wealth that the bank cre- toward improving conditions efits has also increased by 25% tive targeting system. it would assist in building a living and fulfilling dreams.” ates. Social responsibility is for its poor. over the last two years. An- In another government ini- village to help relocate victims Habib Bank Limited (HBL) baked into all aspects of the In recent years the govern- nual spending for the program tiative, poor families are also of the quake. UBL for the last views itself as a partner in business and plays a role in ment has increased its outreach reached more than $928 mil- getting a break from the ris- several years has been very ac- community building and its the decision-making, strategy, to impoverished families by ex- lion last year. And new tech- ing cost of energy. In Pakistan tive in its support of education CSR efforts have included pro- and operations. The firm and panding the Benazir Income nology updates such as bank where the electricity supply and health care. The Forman moting youth sports as well as all its branches embrace the Support Program (BISP), the debit cards and free cell phones far outweighs demand, the Christian College, the Karachi assisting with education and community development as largest safety net program in in some communities have lowest consumers of electric- School of Business and Leader- health initiatives. part of its mission.

Our World Insert is produced by United World. USA Today did not participate in its preparation and is not responsible for its content Distributed by USA TODAY Thursday, October 22, 2015 5 PAKISTAN Robust earnings and high solvency for big time banking players As Pakistan’s economy gets back up to speed, the banking sector will continue to play a leading part in its recovery. In three years, the total value of assets held by the banking system has climbed from $116 billion to $147 billion

little more than million people where only two years after 12% currently have access to the first-ever essential financial services, handover from there is still a lot of room one civilian go- for growth.. Local players vernment to another, the are aware of the opportuni- numbersA coming out of the ties awaiting them if basic macroeconomic cruncher operations like paying utility are confirming that Paki- bills are made available to an stan is back on course to immensely wider customer sustainable growth. Busi- base in the northern part of ness-friendly policies and the country, says Sirajuddin reforms initiated by Prime Aziz, President and CEO of Minister Nawaz Sharif’s ad- Habib Metro Bank (HMB). ministration have led some “Until three years ago, to compare Pakistan with HMB was largely centered “With a narrowing Colombia as champions in in Karachi, the country’s deficit combined with the the economic turnaround commercial capital,” recalls government’s resolve to category, citing their stable Mr. Aziz. “We also had a get the energy situation governments, market-ori- sparsely spread branch net- right, you can’t ask for ented reforms and manage- work in the north. Since a better platform for able security situations. then, we have worked on initiating the large-scale With GDP growth pre- strategic organic growth by infrastructure projects that Ashraf Mahmood Wathra, Governor of State Bank of Pakistan dicted by the International enhancing our branch out- Pakistan is in dire need of” Monetary Fund (IMF) to reach with a particular fo- end the year at 4.5%, it can “The Financial Inclusion tainable development, and for the sake of business and cus on northern Pakistan.” Wajahat Husain, fairly be said that Pakistan Program (FIP) includes growth of the microfinance in the national interest.” Opportunities in Pakistan’s President and CEO, United Bank Ltd is actually doing better than risk sharing initiatives, sector, branchless banking, At the retail-banking end banking sector and other ar- the United States or Canada, smart grant facilities, and SME finance.” of Mr. Ashraf’s remit, the eas under development may as The Economist magazine innovation and HBL was founded shortly emphasis is increasingly come as old news to canny pointed out to its readers market infrastructure after independence in 1947, falling on Sharia-compliant foreign investors. In 15 of the in May. That same month, development for and has established itself as banking. NBP has five Is- 21 locally incorporated pri- the State Bank of Pakistan sustainable development Pakistan’s largest commer- lamic banks and 15 Islamic vate banks, foreign investors slashed interest rates to and growth of the cial bank, with a presence windows in operation. “The are the majority sharehold- their lowest level in 42 years, microfinance sector, in 29 countries, including State Bank of Pakistan is en- ers. Together, those 15 banks triggering a spurt in con- branchless banking, and in the United States since couraging banks to separate hold over 50% of the sector’s sumer spending and boost- SME finance” 1973. It serves eight mil- Islamic banking from the total assets. ing home purchases in the lion customers and aims to conventional type. For this “The US has been con- GDP-critical construction Ashraf Mahmood Wathra become the first Pakistani reason we are establishing a sistently involved with Paki- sector. Not least of all, the Governor, State Bank of Pakistan lending institution with two bank with separate manage- stan since the 1950s and Karachi Stock exchange was billion rupees on deposit by ment, a different CEO and understands the terrain, the up by a year-on-year 16% as the end of 2015, as well as totally different staff. I be- people, the logic and even of this past July, and Bloom- with a highly positive take the largest corporate port- lieve that other banks will be the political system better berg did not hesitate to place on prospects for prosperity folio in the country. working along the same lines. than any other trade/busi- it among the world’s top 10 is Wajahat Husain, Presi- With 1,600 branch offices At the moment Islamic banks ness partner,” says Mr. Aziz. “Whenever our country securities markets. dent and CEO of United and 1,700 ATM outlets stra- hold 14-15% of the deposits. I “Infrastructure development needs financial expertise, “Our government has Bank Limited (UBL) one of tegically positioned across think this will rise very quick- offers many attractive oppor- we are always there. taken painful yet necessary the country’s most respect- the country HBL holds the ly as people believe that it is a tunities. Many listed compa- We work for the sake reforms since taking office ed banking institutions. number-one spot, acknowl- safer type of banking.” nies are looking to link up to of business and in the in June 2013 which has re- “When you talk about oil edges Mr. Nauman K. Dar, After all, in banking, it is a major American firm. So national interest” sulted in the stabilization of prices going down you have the bank’s President and the bottom line that counts I think Americans have got the economy,” Minister of to keep in mind that 35% CEO since 2012, who has and Pakistan being a coun- a greater understanding of Syed Ahmed Iqbal Ashraf Finance Mohammad Ishaq to 40% of our import bill overseen the introduction try with a population of 180 Pakistan than some others.” President, National Bank of Pakistan Dar told attendees at a US- comes from oil, so clearly of an array of new products Pakistan business confer- this is a big plus for the and services including in- ence in March. “I can con- macro numbers,” says Mr. ternet banking and a cash- fidently inform you that the Husain. “With a narrowing back credit card for fuel pur- economy of Pakistan has deficit combined with the chases. “Innovation is HBL’s been put back on the right government’s resolve to get hallmark and we have always track due to the far-reaching the energy situation right, delivered financial products structural reforms, stabiliza- you can’t ask for a better which aim to provide ease tion measures and initiatives platform for initiating and and convenience to improve of the past 21 months.” completing the large-scale our customers’ financial This state of affairs is a infrastructure projects that well being,” notes Mr. Dar. far cry from 2013, when the Pakistan is in dire need of.” “This is another step towards IMF had to step in with a As an example of UBL’s strengthening existing con- $6.6 billion credit to defuse commitment to innovation sumer product portfolios the balance of payments cri- Mr. Husain points to Omni, while providing quality prod- sis that greeted Mr. Sharif on an electronic platform in ucts to our customers.” taking office. which a wide range of secure Pakistan’s fiscal deficit, banking services are avail- “I can confidently inform which then stood at 8.8%, able to both account hold- you that the economy of has since been trimmed to ers and walk-in customers Pakistan has been put 5.3%. However, it still comes at a ‘Dukaan’ - an unstaffed back on the right track up short of the 4.9% cap the electronic outlet that extends due to the far-reaching government had been aim- far beyond the network of structural reforms, ing for this year and had branch offices. stabilization measures pledged to meet as a condi- As Pakistan’s economy and initiatives of the past tion for IMF support. Ac- gets back up to speed, the 21 months” cording to the State Bank of banking sector will continue Pakistan Governor Ashraf to play a leading part in the Mohammad Ishaq Dar, Mahmood Wathra, plans for recovery. In three years, the Minister of Finance staying within budget were total value of assets held derailed by the devastating by the banking system has floods of 2014 and security climbed from $116 to $147 Both HBL and UBL were operations in the north of billion. Pakistan has also previously owned by the the country. mandated implementation government and success- “On top of the flood di- of the Basel III regulatory fully privatized. The gov- saster in itself, we were con- framework on all banks op- ernment’s sale of its last fronted with nearly 300,000 erating in the country to give remaining shares in HBL internally displaced people the system additional resil- last April was the largest fleeing the area,” Mr. Wathra ience and transparency. provatization deal in the last recalls. “The government is An IMF report released in decade, with $764 million of supporting them and they August confirms that earn- the total sale price of $1.02 will have to be sent back ings remain robust and key billion coming from foreign and rehabilitated as well. We solvency rations high for the sources such as Morgan missed our target of 4.9% but banking sector’s big time Stanley, Wellington and we are hopeful the IMF will players as well as for the of- Templeton. Roughly half of understand that those were ten-underestimated middle the price realized went to clearly necessary, though un- tier. In the first quarter of pay off a tranche of the IMF budgeted, expenses.” 2015, UBL’s profits soared loan. That success was rap- Mr. Wathra and his team by 36.8% over the previous idly followed by the govern- have much to be proud of, period a year earlier. Core ment’s decision to offload including the recovery of earnings and non-interest the remaining 20% of their Pakistan’s depleted foreign income helped offset an in- UBL shares, in what was the reserves, which had fallen to crease in operating expens- first equity transaction by $8 billion at one point but es. End of year results were the Privatization Commis- are now hovering around equally striking at another sion in the last eight years. $19 billion. When sector- long-established bank, Habib The National Bank of Pak- by-sector results are sorted Bank Ltd (HBL), where prof- istan acts as the commercial out and compared with their its surged by 24.9% to total arm of the State Bank of Pak- benchmarks, nobody expects Rs16.9 billion last year. istan, but is in the process of the larger picture to be a uni- What was the strategy transitioning from public formly rosy one. “For the first that made recovery possible? sector to become a commer- time in our history, demand Mr. Wathra cites the imple- cial bank, says its president, for our exports has declined,” mentation of a Financial In- Syed Ahmed Iqbal Ashraf. says the state bank head. clusion Program (FIP) that “Government revenues are But these are all problems includes risk sharing initia- collected by the NBP and that admit solutions, and tives, smart grant facilities given to the State Bank or the sense that the country for capacity development, the Ministry of Finance. has turned the corner is innovation and market in- Then whenever our country palpable at all levels of Paki- frastructure development needs financial expertise, we stani society. Among those since 2008 primarily for sus- are always there. We work

Our World Insert is produced by United World. USA Today did not participate in its preparation and is not responsible for its content 6 Thursday, October 22, 2015 Distributed by USA TODAY PAKISTAN Banks enjoy unprecedented expansion over past two years Pakistan’s economy is fuelling growth across sectors, with its financial sector providing numerous opportunities for global investors

akistan’s revival in “If you take a look fortunes since the at UBL’s DNA, you’ll election of Prime notice we are the most Minister Nawaz successful bank in terms Sharif has seen of having a diversified the country’s economy enjoy strategy geographically. surging growth since 2013, Over 25% of our assets P are overseas, and over with a multitude of oppor- tunities for foreign investors nearly half a decade we now emerging. have managed to create Few sectors better high- the UBL brand in our light this than the country’s niche targeted market in financial industries, which the Middle East” have enjoyed unprecedent- ed expansion during the Wajahat Husain, past two years. Profits are President and CEO, United Bank up and demand for services Limited is growing, with the coun- try’s population increas- ingly looking for banking One aspect powering the services where previously Pakistani financial sector they had not. revival has been the qual- Recent figures clearly in- ity of assets that its banks dicate the potential of the now hold, with credit risks Pakistani banking sector, lower than regional peers: with companies such as HBL, for example, has Habib Bank Limited (HBL) slashed its non performing recording six-monthly prof- loans by more than 50% to its of PKR 16.9 billion ($162 PKR 2.2bn. million) in the first half There is also a more of 2015, up nearly 25% on global outlook from Paki- the same period last year. stan’s financial firms, and Elsewhere United Bank the potential to entice new Limited (UBL) has enjoyed customers is huge. consistent growth and Mr. “I hope that other Paki- Wajahat Husain, the firm’s stani banks will look out- President and CEO, says his ward and tap the Pakistani company’s success reflects diaspora present across that of the sector – and the the globe,” says Ishaq Dar, country – as a whole. Pakistan’s Finance Minis- ter, who has urged other fi- Recent figures clearly nancial institutions to look indicate the potential of abroad for growth. “Our the Pakistani banking banks have the expertise to sector, with companies provide the best service in such as Habib Bank their domain and the bank- Limited (HBL) recording ing industry has done very six-monthly profits of PKR well even during the last 16.9 billion ($162 million) financial crisis.” in the first half of 2015, Indeed Pakistan’s finan- up nearly 25% on the cial institutions have devel- same period last year. oped numerous innovative schemes, often through joint ventures with tele- “UBL is the second larg- communications firms, est private sector bank in to enable remote banking Pakistan, and if you were services. UBL has become to follow its progress, it a key player in the remit- would tell you the story tance market, processing of how the banking sector banks, foreign investors ploration, has attracted as government sell its stake “National Bank has always a quarter of all payments has performed, in spite of are the majority sharehold- much foreign direct invest- in UBL, something Mr. Za- been a flag bearer for Paki- that come into the coun- the economic challenges,” ers in more than 15. It’s a ment as the financial sec- meer Choudrey, UBL direc- stan at national as well as in- try. HBL is also a key player he says. similar environment with tor over recent years and tor, described as a “resound- ternational forums,” he says. in the market with a 55% Overcoming those chal- the 10 microfinance banks, deals such as the sale of the ing vote of confidence” in “We act as the commercial share in inward foreign re- lenges have helped to turn with 5 entities owned by government’s HBL stake in the company. Other firms, arm of the State Bank of mittances while NBP has around Pakistan’s fortunes foreign shareholdings. April 2015 marked Paki- such as National Bank of Pakistan, so all the revenues partnered with Money- and delivered confidence Part of the reason for this stan’s largest ever capital Pakistan (NBP) have also that the government col- Gram to meet its clients’ to the market. Importantly, has been because of the market transaction. With enjoyed growth and its lects are collected by the needs, particularly those it is not just domestic opti- capital requirements intro- $1.02bn raised, and $764m president, Mr. Syed Ahmed NBP and given to State Bank living in the Gulf region. mism either – international duced by Pakistan’s govern- from foreign investment, Iqbal Ashraf, says its suc- or the Ministry of Finance. Despite such recent de- investors are increasingly ment, designed to ensure a both local and internation- cess has come off the back Then whenever our country velopments, many of the bullish about the poten- stable and well regulated al investors have shown of focused efforts on im- needs financial expertise, we country’s financial insti- tial for Pakistan’s banking banking sector. The result confidence in HBL’s future. proving banking possibili- are always there. We work tutions are already well- sector and of the 21 lo- has been that no sector, Similar arrangements ties on a domestic and in- for the sake of business and versed in operating abroad, cally incorporated private other than oil and gas ex- have seen the Pakistani ternational stage. national interest.” with firms such as UBL

Limited (UBL), needs no con- vincing that Islamic banking is a big part of its institutional Islamic finance growth future. “Last year our bal- ance sheet grew by 47%,” he explains proudly. In several areas where demand is high, outpaces conventional banking UBL is converting its conven- Islamic finance has expanded from a niche activity to emerge as a sector in its own right where all the important tional banking branches into growth indicators have been outpacing those of conventional banks Islamic ones. With a state-of-the-art technology platform, UBL here can be no “We plan to convert opened its first Islamic bank- ing Group (ABBG). Since its has been able to make Islamic question that Is- 150 National Bank ing branch back in 2006. founding in 1978, it has creat- banking facilities or windows lamic banking has conventional branches “We now plan to convert ed a strong international pres- available at all its branches. Shafqaat Ahmed, CEO of Al Baraka become an in- to Islamic banking by 150 National Bank conven- ence and become involved in “We rely on a renowned Pakistan Limited (ABPL) creasingly signifi- June 2017. As part of this tional branches to Islamic one capacity or another with Sharia board, and under its cant part of the global develop- plan, one conventional banking by June 2017,” says initiatives in 15 countries, expertise and guidance we en- din Aziz. About 10%-12% of ment agenda. On a worldwide branch was successfully Syed Ahmed Iqbal Ashraf, such as the European Islamic deavor to become the fastest- HMB’s assets are Sharia-com- T converted to an Islamic basis, the Sharia-compliant President of NBP, whose Investment Bank and the Is- growing Islamic bank in the pliant. Even so, he acknowl- financial services sector Banking Branch in 2014 massive expansion plans in lamic Bank of Britain. country,” Mr. Husain adds. edges “a lot has yet to be done has witnessed remarkable and we are converting 64 the Islamic banking sector In Pakistan, ABBG was Another bank determined in terms of understanding the growth, with deposits and more branches in 2015.” is indicative of the industry’s one of the pioneers in Islamic to raise its Islamic profile is the principles of Sharia and creat- other assets under manage- rapid growth. banking, starting up opera- Habib Metro Bank (HMB). ing awareness in the market ment currently totaling be- Syed Ahmed Iqbal Ashraf, “As part of this plan, one con- tions as far back as 1991. The “Islamic finance products for potential customers.” tween $1.5 and 2 trillion. President, National Bank of Pakistan ventional branch was success- CEO of Al Baraka Pakistan have great prospects and are Meanwhile, the Securities Many people outside the Is- fully converted to an Islamic Limited (ABPL), Shafqaat immensely appreciated by and Exchange Commission lamic community are vaguely Banking Branch (IBB) in 2014 Ahmed, credits its successes to the market,” says the bank’s of Pakistan (SECP) has ap- aware of what Islamic banks sector in its own right where and we are converting 64 more “the advantage of global expo- president and CEO, Sirajud- proved a four-member Sharia do not do, which is charge all the important growth in- branches to IBBs in 2015.” sure. We bring in those things Advisory Board. The Al Bara- or pay interest. Instead, the dicators have been outpac- Habib Bank Limited (HBL) which the other local banks ka bank played a central role customer enters into a kind ing those of conventional was the first commercial bank don’t even have the access to.” “Islamic finance products in pressing for the introduc- of joint venture deal with the banks. The government is established after indepen- Al Baraka offers a diverse have great prospects and tion of legislation relating to bank in which increases in the encouraging foreign financial dence in 1947 and has since product portfolio that con- are immensely appreciated Islamic financial products, as market valuation of a given service providers to consider become the biggest. Today, forms to Shariah principles by the market. …A lot the Central Bank had previ- asset are shared out between entering the market segment HBL also ranks as Pakistan’s while at the same time meeting has yet to be done in ously drawn up regulations them. (In theory, losses are that now accounts for around second-largest provider of the needs of a broad customer terms of understanding for only conventional bank- too, but Sharia law prohibits 12%-14% of turnover. Islamic banking services, an- base that includes individuals the principles of Sharia ing practices. The SECP has speculation and a bank that The National Bank of Paki- chored by a nationwide net- as well as corporate clients and and creating awareness also been active in drawing up could not meet its commit- stan (NBP) is a major Paki- work of 45 branch offices and SMEs invited to choose from a in the market for potential regulations affecting the is- ments would self-destruct.) stani commercial bank with some 500 windows. wide range of deposit and in- customers” sue of Sukuk (Islamic bonds), In Pakistan, faith-based fi- headquarters in Karachi. Al- One of the big names in vestment schemes. with an aim to strengthening nance has expanded from a though state-owned it oper- Islamic banking is the Bah- Wajahat Husain, President Sirajuddin Aziz governance and broadening niche activity to emerge as a ates as commercial bank, and rain-based Al Baraka Bank- and CEO of United Bank President and CEO, Habib Metro Bank their appeal to investors.

Our World Insert is produced by United World. USA Today did not participate in its preparation and is not responsible for its content Distributed by USA TODAY Thursday, October 22, 2015 7 PAKISTAN

street is not so visible yet “Certainly Pakistan’s DEPOSITS - QUARTERLY FLOWS and a better economic un- outlook has undergone derstanding is needed for a remarkable PKR billion the people to appreciate transformation over the these improvements.” past 24 months and This is set to change its changing economic 680 however and the effect fortunes are now being of both the oil price fall reflected by ratings and the burgeoning finan- agencies and investor cial sector is set to be felt sentiment. The IMF across huge swathes of the program is widely seen Pakistani economy. “UBL to be on track and 430 has been proactive and Moody’s has upgraded we have made the best of the country’s credit all viable opportunities to rating by a notch and “Since the mid-fifties, the provide stable progres- assigned a stable US has been consistently sion, which is necessary outlook” involved in investment from a systemic bank,” 180 within Pakistan and says Mr. Husain. understands Pakistan’s “With the interest rate also has great business po- terrain, people, logic scenario coming down, tential here. Pakistan has and even the political potentially, all the banks been blessed with natural system better than any are highly liquid and will resources and American other trade or be focusing on every and expertise regarding the re- business partner” any opportunity in the lated industries would be -70 private sector, be it cor- very welcomed.” Sirajuddin Aziz, porate, commercial, agri- UBL is also eyeing up op- President, Habib Metropolitan culture, real estate... the portunities as the amount BankBank complete gamut of oppor- of investment coming tunities for financing the into the country for sec- private sector.” tors such as oil, gas, and -320 HMB is also looking to infrastructure, increase. expand its services and Mr. Husain says the ability Mr. Aziz says the firm of UBL “to contribute in Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 wants to improve financial terms of investments com- access for the country’s ing into Pakistan is of the agrarian sector, adding top drawer and we are the Customer deposits - Fixed Customer deposits - CA(R) that the company is al- best equipped to support ready providing resources any such initiative.” Customer deposits - Saving Customer deposits - CA(NR) to some of the industry’s HMB is also preparing corporate clients. for further growth and Mr. The domestic front also Aziz says his company has provides a huge range of been forging relationships opportunities for Paki- with global operators to banking sector profitability stan’s banks. Only 12% of provide a more interna- the country’s population tional service. “Looking at “Innovation is HBL’s of 180 million has access the trade flows and trade hallmark and we have to financial services and patterns of Pakistan we June 2014 June 2015 always delivered while profits have more have been able to create Nº of Banks financial products which recently come from in- strategic and strong rela- 30 aim to provide ease and vestments in bonds, the tionships with other finan- convenience to improve private sector is now cial institutions intermedi- our customers’ financial widely seen as a mas- ating international trade, well being” sively untapped source of to help our clients do potential revenues. business worldwide.” 20 19 Nauman K. Dar, “We had investment in Certainly Pakistan’s out- President and CEO, Habib Bank Ltd government securities, be- look has undergone a re- 15 cause we had an opportu- markable transformation nity in the long term, but over the past 24 months having numerous offices now there is going to be a and its changing econom- 10 9 across the globe. clear focus onto the private ic fortunes are now being 7 “If you take a look at sector off take,” says UBL’s reflected by ratings agen- 6 5 5 UBL’s DNA, you’ll notice president Mr. Husain. It’s cies and investor senti- 4 2 we are the most success- a similar story from Mr. ment. The IMF program is 1 PKR ful bank in terms of hav- Aziz at HMB, who says widely seen to be on track 0 billion ing a diversified strategy the potential to expand its and Moody’s has upgraded <6 4,6 2,4 0,2 >0 <6 4,6 2,4 0,2 >0 geographically,” says Mr. customer base across the the country’s credit rating Husain. “Over 25% of our country, potentially us- by a notch and assigned a assets are overseas, and ing the aforementioned stable outlook. over nearly half a decade remote services, is huge. “Fortunately, these posi- we have managed to cre- The company has already tive developments and ate the UBL brand in our been working on organic improving business senti- niche targeted market in growth by enhancing its ments have created much the Middle East. branch outreach across needed room for the pol- “We are present in Pakistan and Mr. Aziz says icy makers to focus on a four continents. We are he is now paying “particu- comprehensive reform in the Middle East, the and growth strategy,” adds U.S., in Europe (the U.K. “National Bank has Mr. Ashraf Mahmood and Switzerland), and we always been a flag Wathra, governor of State made our debut in Africa bearer for Pakistan Bank of Pakistan. via Tanzania.” at national as well He is now focused on With a presence in 29 as international maintaining stability and countries¸ HBL claims forums. We act as the “unleashing the growth to be Pakistan’s largest commercial arm of the potential” by dealing with domestic multinational. State Bank of Pakistan, structural rigidities, includ- Habib Metropolitan Bank so all the revenues ing the privatization of loss (HMB) also enjoys a glob- that the government making PSEs, increasing al presence through Habib collects are collected tax revenues and attracting Bank AG Zurich, its par- by the NBP and given further investment. ent organization. It has fi- to State Bank or the This is being aided by nancial institutions locat- Ministry of Finance. an improved security situ- ed in 10 countries across Then whenever our ation and the creation of four continents and Sira- country needs financial the China-Pakistan Eco- juddin Aziz, President of expertise, we are nomic Corridor, while his- HMB, says the network is always there” torically low interest rates “another attractive factor are also encouraging FDI for clients as we can offer Syed Ahmed Iqbal Ashraf, inflows. Japanese inves- them the cost efficiencies President, National Bank of Pakistan tors are moving into au- provided by our internal tomobiles and coal-based trade linkages.” energy projects while Rus- Such international ex- lar focus” on reaching out sian and Korean firms are pansion is also helping do- to the customer base in exploring infrastructure mestic coffers and Pakistan Northern Pakistan. and energy sectors. And has enjoyed a remarkable Indeed both on the in- Mr. Wathra is clear that transformation over the ternational and domestic investors are only just past two years as increased fronts, opportunities are scratching the surface of political stability has pow- emerging for Pakistan’s Pakistan’s potential. ered progress that has financial sector. Foreign “This country offers im- been helped by the falling direct investment has also mense potential due to a oil price, something Mr. been ratcheted up to record large domestic market, as Aziz says has been a boon levels but with the possi- well as its geographical for the country. bilities for extensive growth location that provides a “Pakistan is favored by across growing sectors of gateway to central Asian a changing global market the economy, further in- countries,” he adds. “With place with the oil prices flows – especially from the an improved security situ- dropping, the commodity US – are likely. ation and a more com- prices generally being low “Since the mid-fifties, the fortable external account, and Pakistan importing US has been consistently foreign investors are now heavily in terms of energy, involved in investment tracking Pakistan. And which has added more sta- within Pakistan and under- why not?” bility and balance. stands Pakistan’s terrain, “If you look at the infla- people, logic and even the “The domestic front tion rate in the economy, it political system better than also provides a huge stands at the lowest that it any other trade or business range of opportunities has been in 42 years, which partner,” says HMB presi- for Pakistan’s banks. is a testimony to the Gov- dent Mr. Aziz. Only 12% of the ernment having success- “I would say it is much country’s population of fully managed the macro easier for US investors to 180 million has access factors of the economy; come in and invest money to financial services other proof of this is the here. Infrastructure devel- and while profits have contained fiscal budget opment offers many attrac- more recently come deficit, which has been tive opportunities; there from investments in brought down from a high are many listed companies bonds, the private of 8.5% to below 5% – so looking to be linked up to a sector is now widely things seem to be improv- major American firm. The seen as a massively ing in tandem. The impact energy sector, especially untapped source of of it to the man on the oil and gas exploration, potential revenues”

Our World Insert is produced by United World. USA Today did not participate in its preparation and is not responsible for its content 8 Thursday, October 22, 2015 Distributed by USA TODAY PAKISTAN Landmark MOU signed to form new stock exchange Integration of the Karachi, Islamabad and Lahore stock implement a strong enforce- exchanges follows the global trend of consolidation, a ment and compliance regime move clearly welcomed by foreign investors with zero tolerance for any attempt at market manipula- tion, inside trading, miscon- ith an en- Results confirm that mar- duct or abuse. ergized ket analysts who thought KSE boss Mr. Naqvi said economy Pakistan was nearing the that investors in Lahore generat- point of converting from and Islamabad would ben- ing new a “frontier” to “emerging” efit from the merger with opportunities for Pakistan to economy have an argument “better, quicker and more takeW advantage of its hu- worth making. “Pakistan of- efficient price discovery”, man potential, a modern, fers very good returns with as brokers in those two cit- closely regulated securities a minimum of 50% and even ies will be able to place or- exchange plays a key role for the worst projects [inves- ders directly without having in raising and allocating tors] get huge benefits. No them routed through Kara- the capital needed to get other country in the world chi-based brokerages and an the productivity ball roll- can offer the returns which IT platform over which they ing. Commercial banks are Pakistan offers to investors,” have no control. often hard pressed to of- says Aqeel Karim Dhedi, “The underlying philoso- fer financing for long-term Chairman of AKD Securities phy behind the integration projects in a country where Ltd, one of the leading secu- is that a single, deep and deposits and other instru- rities firms in Pakistan which centralized stock exchange ments in their portfolios are provides a comprehensive will bring greater efficiency, mainly short-term or not range of investor focused ser- enhance regulatory oversight readily liquid. Public sector vices and accounts for more Small and Medium Enter- would be the right outlet for “The underlying and improve the structure of institutions or multilateral than 6% of the average daily prises, SMEs, have the hard- private equity. This is one philosophy behind the presently fragmented se- lenders had to make up the value of the KSE. est time putting up collateral area I’m very excited about.” the integration is that curities industry,” he added, shortfall, but even so, too The benchmark KSE- for bank loans, but they are U.S.-based investors who a single, deep and and cited the more stringent many opportunities in both 100 is up 16% this year, af- responsible for creating and are unfamiliar with the South centralized stock criteria for risk management the public and private sec- ter a rise of 200% over the maintaining 95% of the jobs Asian marketplace now have exchange will bring by the KSE as another aspect tor had to be turned down past five years. The value of in Pakistan. Beginning this the option of putting their greater efficiency, that will improve as a result on account of inadequate combined debt and equity year, smaller concerns are money into a country spe- enhance regulatory of consolidation. access to capital. capital raised on the Kara- being offered special breaks cific ETF (Exchange Traded oversight and improve What comes next? Under All that changed, however, chi exchange stood at $546 for listing their issues on a Fund) as a vehicle giving the structure of the the terms of its demutualiza- when the Pakistani Stock Ex- million by the end of 2014, customized section of the them exposure to Pakistan’s presently fragmented tion, the KSE is looking to changes were demutualized up from 31 billion in 2013 counter, where the amount blue chip performers.. Avail- securities industry” sell off a 40% equity stake to in 2012 and transformed and 22 billion over the pre- of paid-up capital required able through the New York- strategic investors. Another into limited companies. The vious period. Investments from them is just PKR25 based ETF specialists Global Nadeem Naqvi, 40% will be retained by bro- Karachi Stock Exchange, denominated in US dollars million ($240,000) as versus X, the dedicated ETF is Managing Director and CEO, Karachi kers and the remaining 20% KSE, on its own now has an originating from outside the PKR250 million ($2.4 listed as PAK, and tracks the Stock Exchange offered to the public as an equity base of $80 million. the country have climbed at million) required from their performance of the MSCI Initial Public Offering (IPO). Currently, shares and debt an annual rate of 26% since larger counterparts. Simi- 25/50 index. Among the share markets that issued by 577 different com- 2008. Earnings in the bank- larly, during the first few Late this August, a giant win-win situation for all con- have been approached with a panies are traded on the KSE ing sector have risen 56%, years, norms in the corpo- step towards was taken when cerned and will go a long way view towards entering into a that Bloomberg has ranked compared with 2014. rate governance code that an MOU was signed in pres- towards consolidating a sus- strategic partnership are ex- in third place on its list of the All told, foreign interests big companies are required ence of Finance Minister tainable capital market,” he changes in Istanbul, London, 10 best performing world invested over $2.3 billion in to adhere to will be relaxed Ishaq Dar, to merge all three said of the merger, and urged Tokyo, and Malaysia. “Our capital markets. “Emerging Pakistan’s premier capital for newcomers. Mr. Naqvi is Pakistani Stock Exchanges the three exchange share- objective is to have a partner Asia will require over a tril- market. As a backstop for particularly eager to see this into one. At the signing cer- holders to complete the dis- who can bring great exper- lion dollars in infrastructure bear markets in other coun- initiative succeed. “Our job emony, Mr. Dar said his gov- bursement process to speed tise and technology,” says Mr. finance if growth is to be tries, it should be noted that is to bridge the link between ernment remained commit- the unification along. At the Naqvi. “It’s a big change but I maintained anywhere near Pakistani equities had zero public equity and the private ted to a strong, vibrant and same time, he called on the believe that once we get over past levels,” says Nadeem correlation with the S&P equity that is just starting to competitive capital market regulatory agency, the Secu- the transformation phase, we Naqvi, Managing Director 500 in 2014, according to a emerge in our country. As as a basic building block for rity and Exchange Commis- will be as good as any other and CEO of the KSE. Bloomberg study. I see it, the SME exchange a strong economy. “It is a sion of Pakistan (SECP) to international stock exchange.”

Our World Insert is produced by United World. USA Today did not participate in its preparation and is not responsible for its content Distributed by USA TODAY Thursday, October 22, 2015 9 PAKISTAN “The world has to understand that Pakistan needs trade to expand its growth” Yunus Brothers Group (YBG) is leading the way in Pakistan in terms of boosting the country’s trade and diversifying its economy. With a turnover of U$1.6 billion as of June 2015, YBG has steadily expanded its operations and exports over a number of years. Group Director and CEO of YBG’s flagship company Lucky Cement Limited, Muhammad Ali Tabba says that increasing foreign trade is vital for the future of Pakistan

ith a wide and making our corporate YBG has grown integrated production fa- range of footprint more visible. Our remarkably over the cility that has now become business closing business numbers last 50 years and it Pakistan’s largest exporter interests, are in excess of $1.5billion,” has today become the of home textile products. Yunus says Mr. Tabba sponsor of one of the Yunus Textile’s clients in- Brother Group (YBG) is Indeed, YBG has stra- largest industrial units in clude some of the high end one of the largest and fast- tegically expanded ex- Pakistan in the cement, brands such as Walmart, W chemicals, real estate, est growing business con- ports across Asia - India, Target and Macy’s and glomerates in Pakistan that Sri Lanka, Afghanistan, as energy and textile has subsidiaries in North is made up of several sub- well as Tanzania, Mada- sectors. What’s more, America and Europe. sidiaries. Since its incep- gascar, Mozambique, Ke- the group now has some Mr. Tabba is no doubt tion as a commodity trad- nya, and Uganda, among of the most sustainable enthusiastic about what ing business house in 1962, other African countries. and effective business such foreign trade, espe- YBG has grown remarkably Having already diversified relations with leading cially with the United States over the last 50 years and it in the energy sector with private and public means for Pakistan. “We al- has today become the spon- the establishment of Lucky sector organizations ready enjoy good business sor of one of the largest in- Energy – a gas-based ther- throughout the country. relations with USA. We are dustrial units in Pakistan mal power generation unit, trading textiles and looking in the cement, chemicals, YBG’s other ambitious forward to becoming part- real estate, energy and tex- project is Lucky Electric neering technologies, excel- ners in the energy sector. tile sectors. What’s more, Power Company Limited. lent customer service and Their expertise can be very the group now has some of Lucky Electric Company is an uncompromising culture beneficial for our engineers the most sustainable and setting up a 660MW coal- of ethics, safety and people and consultants. I think the effective business relations based power project in development. world has to understand with leading private and Karachi. YBG also recently Lucky One, a commer- that Pakistan needs trade to public sector organizations signed an engineering, pro- cial and residential project expand its growth.” throughout the country. curement and construction by YBG, is yet another ex- There can be no doubt Lucky Cement Limited contract for setting up a 50 ample of the group’s port- that YBG, one of Pakistan’s (LCL) is one of the largest megawatt wind farm for folio expansion. The Mall most successful business producers and leading ex- generation of electricity is to be built on 2.2 million conglomerates is leading the porters of quality cement “We never stop of YBG and CEO of Lucky through wind turbine gen- square feet and will redefine way in this respect. While in Pakistan with a produc- investing irrespective of Cement Limited, the group’s erators being supplied by the real estate contours in domestic companies could tion capacity of 7.75 million the situation because success as a whole is entirely Nordex Germany. Pakistan. It will be several certainly do well for them- tons per annum. Over the in a country of 200 due to its unwavering faith In another example of its times the size of any mall in selves and for their country years LCL has consistently million people we will in moving ahead, regardless expansion, the group in 2012 Pakistan and has attracted a by emulating the success of been driven by the ethos: to perish if we don’t take of circumstances. “We never acquired a majority stake multitude of local and inter- the group, Mr. Tabba says be the leader of the cement initiatives...We are stop investing irrespective with management control in national retail brands while there are great opportuni- industry in Pakistan and expanding our business of the situation because in a ICI Pakistan Limited from generating employment op- ties in Pakistan for foreign to contribute to industrial in all directions and country of 200 million peo- the Dutch multinational portunities in the country. investors and that they only progress and a sustainable making our corporate ple we will perish if we don’t and paints giant AkzoNo- Gadoon Textile Mills need to look at the success future by operating with footprint more visible. take initiatives,” he says. bel N.V. ICI Pakistan’s pres- Limited is another success of business houses like YBG state-of-the-art technology, Our closing business Although Pakistan’s eco- ence in this region predates story of YBG. Gadoon Tex- to realize that. making a positive impact on numbers are in excess of nomic performance as a the independence of Paki- tile Mills holds the distinc- “Those who want to in- the environment and adher- $1.5billion” whole has not been the most stan and the company is a tion of being the second vest in Pakistan must come ence to highest standards of promising in recent times, market leader in the field of largest textile mill in the here,” he says. “People are re- quality. The company has Muhammad Ali Tabba, Mr. Tabba is confident that soda ash, polyester, life sci- world to introduce compact luctant to invest in Pakistan embarked on the journey Group Director of YBG through continued efforts ences and chemicals. With core spun yarn. In Pakistan, based on the perception that of global expansion by set- being put on new projects over 70 years of successful it is the largest spinning unit it is a volatile country. But if ting up cement grinding and the expansion of exist- operations, ICI Pakistan is a comprising of nine produc- you have a closer look at the facility in Basra, Iraq and in Forbes Asia’s “200 Best ing ones, YBG can play its leading manufacturing con- tion mills with more than results achieved by multina- a cement manufacturing under a Billion Company” part to further drive Paki- cern supplying products to 250,000 spindles installed tionals operating here, you plant in Democratic Repub- several times. stan’s GDP growth. almost every industry in the under one roof. In Yunus will realize that few other lic of Congo (DRC). Lucky According to Muhammad “We are expanding our country. ICI Pakistan enjoys Textile Mills, YBG also has places offer such an attrac- Cement has been listed Ali Tabba, Group Director business in all directions a strong reputation for pio- a state-of-the-art vertical tive return on investment.”

Our World Insert is produced by United World. USA Today did not participate in its preparation and is not responsible for its content 10 Thursday, October 22, 2015 Distributed by USA TODAY PAKISTAN Global catalysts reignite oil and gas industry

Oil imports dip 20% due dependence on imported liq- to international oil prices, uid fuels has grown substan- which Pakistan’s Minister tially,” Mr. Abbasi says. of Petroleum and Natural “Taking into account that Resources reckons could the cheapest way of transport- put the country on track ing gas is through pipelines to achieve an energy and that we have a neighbor surplus before the end of and a near neighbor who have the decade the largest gas reserves in the world, this represents a great advantage to Pakistan. Iran akistan’s oil and gas has the second largest reserve sector had struggled in the world and Turkmeni- to establish itself stan the fourth.” on the global stage Indeed Pakistan’s govern- but the country ment is hopeful that the U.S. is now emerging as a key in- and Iranian deal will mean ternationalP player following the country can at last start the recent collapse in global to construct planned pipe- oil prices. lines that will link the two Figures from the Interna- countries like never before. tional Monetary Fund (IMF) The so-called ‘Peace Pipeline’ suggest that the Asian na- was first proposed by a young tion already stands to save Pakistani civil engineer in the around $18.5 billion over the 1950s and it is hoped that its next three years thanks to the completion will provide not fall in the price of oil but the just O&G benefits but also benefits to Pakistan go far help to curb cross border ter- beyond what might seem like rorism and maintain stability straightforward economics. within the region. The country is now enticing “Pakistan imports over 6 international investments million barrels of crude and from around the world, with 10 million tons of petroleum Shahid Khaqan Abbasi, Minister of Petroleum and Resources China recently committing products a year, the possi- more than $46 billion for bility of imports of Iran can country has received an un- ductive foreign investments ing a competitive bid process, “Pakistan has vast oil transport and energy proj- mean lower prices for Paki- precedented $2 billion of and offers high rates of return with LNG off-take commit- and gas resources and ects in the country – high- stan due to a more competi- Chinese investment in 2015, in the LNG sector for example. ment by the public sector and is looking for American lighting the vast potential tive environment and lower with deals such as Poly-GCL US investors could participate construction by the private, is investors interested that Pakistan is offering to transportation cost. We need Petroleum Group of China in the pipeline projects, which now a model for the industry in joint ventures. The global investors. to increase trade with our agreeing to invest $500 mil- are all open for investment, in Pakistan.” Pakistani government Few sectors of the coun- neighbors and we are hope- lion with Ocean Pakistan especially the Turkmenistan “Both LNG and pipelines looks forward to try’s economy offer the po- ful that the new geo-political Limited (OPL) to power fur- pipeline project.” have their own advantages,” productive foreign tential returns that its oil and situation will mean new op- ther exploration into oil and Pakistan currently imports adds Mr. Abbasi. “So expect investments and it even gas industries can provide. portunities for Pakistan,” ex- gas reserves within Pakistan. around six million tons of pet- Pakistan to be roughly a 15 offers high rates of Arguably one of the biggest plains Mr. Abbasi. With a sedimentary base of rol a year, mainly from Oman million tons annual market return in the LNG sector developments to Pakistan’s around 800,000 square kilo- and Dubai, but Mr. Abbasi within the next five years, and for example” fortunes over the recent cou- Pakistan already has meters, the country of nearly hopes the new deal with Iran one of the top five markets ple of decades has been the one of the lowest carbon 200 million has a huge po- could help the country lower in the world. A very positive Jalil Abbas Jilani, historic nuclear deal between footprints per capita tential that remains relatively its import costs even further. result of all this will be the Ambassador of Pakistan to the United States Iran and the US, which is set in the world, but it is unexplored and opportuni- “Instead of shipping long decrease of liquid fuels, both to transform the way the determined to achieve ties across the upstream, distances, Iran would ship directly and indirectly.” country’s oil and gas sector even lower levels. The midstream and downstream short distances when it Pakistan already has one of Regulatory reforms have can operate. Indeed, this pact government has built sectors are all available to be comes to Pakistan,” he says. the lowest carbon footprints also taken place, with poli- looks set to ignite the O&G one of the largest solar exploited. The government is “I think that trading with per capita in the world, but it cies being streamlined, tar- sector in Pakistan and finally parks in the world in also going to great lengths to neighbors is the easiest way is determined to achieve even iff subsidies being phased enable the country to address Bahawalpur, and is keen boost oil and gas production of trading – consequently lower levels. The government out and business red tape its chronic energy shortage. to encourage clean within the country, drilling 81 we are very positive about has built one of the largest being slashed - and this has “The oil and gas sector of energy consumption new wells in 2015. It also aims this situation, and we are cer- solar parks in the world in partly helped to drive the Pakistan is on the rise and where possible. to refine an extra six million tain that it will open a lot of Bahawalpur, and is keen to rapid increase of foreign working hard to fulfill the na- tons of petroleum products investment opportunities.” encourage clean energy con- direct investment inflows, tional demand,” says Shahid next year, while reducing its sumption where possible. which is up around 26% this Khaqan Abbasi, Minister of Indeed, the Iranian and import of refined products to “The biggest challenge “Pakistan is a very respon- year alone. Petroleum and Natural Re- Pakistani pipeline will im- 90% of total consumption. for the government sible country when it comes Such a figure clearly dem- sources of Pakistan. pact countries across the The West has also been has been the power to environment,” says Mr. onstrates the surge of interest “We have had a very posi- region. India is also keen on keen to explore opportuni- shortage, and we are Abbasi. “We are doing a lot of for investors looking at Paki- tive two years with this gov- developing a link with Iran ties in Pakistan and the Asian very hopeful that within oil replacement with gas, so stan and there are few sec- ernment despite the fact that and Mr. Abbasi adds that country is actively looking to the next five years it is very clean in that sense. tors that are generating such there was a political domestic there are plans for an exten- attract short and medium- Pakistan will overcome Also, a lot of vehicles have optimism. Domestic demand upheaval. Inflation has gone sive network that will en- term investments from entre- its energy shortage been converted into gas ve- is only set to grow as lower down and the investment able countries such as Turk- preneurs. Mr. Abbasi adds that and can have surplus in hicles, which also contributes oil costs help the country’s levels are unprecedented, as menistan to benefit as well. the country’s historical records power production” to the environment by de- economy to expand faster, Pakistan has signed for over The potential of a North to of providing returns to inter- creasing petrol consumption. while the improved politi- $50 billion investments from South gas pipeline is also be- national investors is helping Shahid Khaqan Abbasi, Gas has many qualities that cal environment is provid- Chinese companies in in- ing discussed with countries to bolster confidence but he Minister of Petroleum and Natural contribute to a better envi- ing a stable footing for those frastructure. Plus, the lower including Russia, Qatar and admits that foreign expertise Resources ronment. Pakistan has over a looking to Pakistan as a place price of oil has also helped.” China, but the potential of is also meaning that the coun- 100,000 MW hydel potential; to invest. Chinese and U.S. he continues. “The biggest all these plans will likely pro- try’s O&G industry can grow this source of power is now companies are already mak- challenge for the government vide benefits far beyond the quicker and more efficiently. As the Iran-Pakistan pipe- being pursued with several ing their mark in the country has been the power shortage, oil and gas sector. It is hoped “An American company line will not be ready before large dam and run of the riv- by improving infrastructure and we are very hopeful that they will contribute to better has already become the big- 2017, the government in- er projects under construc- across the O&G sectors but within the next five years Pak- growth prospects for Paki- gest player in the LNG field tends to raise its liquefied tion in addition to smaller there remain considerable istan will overcome its energy stan and its neighbors, and supplying ships and further- natural gas (LNG) capacity hydel projects.” opportunities for further shortage and can have surplus engender a more cohesive more, the US is also present in in the short term. Pakistan He adds, “I think every exploration, requiring in- in power production.” relationship between coun- the oil and gas sector supply- already operates the biggest source of energy has its limi- vestment but also expertise. Such a situation would be tries in the region and more ing expertise and technology. LNG plant in the world, en- tation – the solution being to And with the potential boost a considerable achievement cohesive thinking between “Pakistan has been receiv- abling the government to integrate them all, especially coming from Iran’s recent and a major benefit for Paki- partner countries. ing foreign investments for import and store natural gas- the integration of gas. More settlement with the US, Paki- stani businesses that have “We are very hopeful that more than 60 years and I have ses for both the domestic and gas availability will contrib- stan is fast finding that it has had to regularly deal with before the end of 2017 gas not heard of a single company industrial sectors. This tech- ute to the growth of other become an integral player on power outages and incon- pipelines will be built and gas that has defaulted here. So nology allows substances like energy sources also.” the global O&G stage, a posi- sistent supplies for decades. will flow into Pakistan,” adds the legal framework and con- methane to be transported Pakistan’s government has tion that it is now well placed When the U.S. finally lifts the Mr. Abbasi. “Furthermore, tracts are not problematic is- and stored incredibly effi- also played a key role in pro- to capitalize upon. sanctions, Iran is expected to the pipelines will not only sues when it comes to foreign ciently, as they take up just pelling the country’s oil and add roughly a million barrels connect Iran with Pakistan, investment. U.S. investors can 1/600 the volume of natural gas sector forwards, with “Taking into account of oil a day to global produc- but India is also interested in participate on the pipeline gas in its gaseous state. considerable restructuring that the cheapest way tion – lowering oil prices by building a pipeline from Iran. projects which are all open The terminal was built in taking place across its energy of transporting gas is $10 per barrel next year, ac- Iran-Pakistan ground-break- for investment, especially the just 11 months – a record- sector. The industry had tra- through pipelines and cording to the World Bank. ing should be in October and Turkmenistan pipeline proj- breaking achievement made ditionally been dominated that we have a neighbor For a net importer of fossil the Turkmenistan ground- ect,” he explains. all the more impressive by by two utilities companies and a near neighbor fuels, the consequences for breaking will be in December, Ambassador of Pakistan the country’s relative lack of but these have been priva- who have the largest gas Pakistan could be great. which is a $10 billion project.” to the United States, Jalil Ab- experience in the sector. “This tized and unbundled lead- reserves in the world, “Pakistan is a country that Clearly such developments bas Jilani, says, “Pakistan has is even more remarkable con- ing to greater competition. this represents a great today relies on imported liq- come at great cost but Paki- vast oil and gas resources sidering that Pakistan had 5 It has also led to investment advantage to Pakistan” uid fuels and domestic natural stan has already been success- and is looking for American separate failures at import- and the private sector energy gas; over the last two decades ful in attracting international investors interested in joint ing LNG over the last 8 years generation capacity has in- Shahid Khaqan Abbasi, the domestic natural gas pro- investors that are aware of ventures. The Pakistani gov- since 2006,” says Mr. Abbasi. creased markedly by around Minister of Petroleum and Natural duction has stagnated and the the potential windfalls. The ernment looks forward to pro- “Our unbundled approach us- 30% since 2009. Resources

Our World Insert is produced by United World. USA Today did not participate in its preparation and is not responsible for its content Distributed by USA TODAY Thursday, October 22, 2015 11 PAKISTAN Power generation from LNG set to double by 2017 to 3,600 MW As the cleanest hydrocarbon with a key role to play in the reduction of CO2 emissions, liquefied natural gas (LNG) is becoming increasingly popular across the globe. Pakistan is one of four new countries to enter the LNG market in 2015, together with Poland, Egypt and Jordan

n a move described as “Gas is a cleaner fuel. a “game changer in the It is definitely more energy sector” by Min- economical than oil and ister for Petroleum and especially compared Natural Resources Sha- to diesel, which power hid Khaqan Abbasi, Pakistan generation companies has turned to imported Lique- are using constantly I nowadays” fied Natural Gas (LNG) in an effort to solve its long-running energy crisis. Khalid Rahman, The developing country Managing Director, Sui Southern Gas of more than 180 million Company people has long struggled to meet its rising energy needs due to a dearth of hanced gas usage will deliver indigenous hydrocarbons reductions and materially and unreliable generation address the very immediate networks, prompting it to health issue of air quality by press ahead with the con- virtually eliminating NOX struction of its first LNG and SOX pollutants and terminal, which opened particulates that contribute earlier this year after be- to respiratory diseases such ing built in world-record as asthma.” time. The $135 million As Mr. Rahman points terminal was completed in out succinctly: “Gas is a 335 days, when similar ter- cleaner fuel. It is definitely minals elsewhere usually more economical than oil take at least three years to and especially compared to become operational. diesel, which power gen- A total of 30 ships carry- eration companies are using ing LNG are expected to ar- constantly nowadays.” rive in Pakistan in the first In addition to its emis- year, bringing diversity and sion-reducing role, gas can security to Pakistan’s energy bly Standing Committee na Petroleum Pipelines Bu- For proponents of the sec- A total of 30 ships contribute to world peace, supply. Power generation on Petroleum and Natural reau will build a 500 mmcfd tor, natural gas should not be carrying LNG are Mr Ferrier believes. This from LNG is estimated to Resources that the govern- LNG terminal in Balochistan equated with polluting fossil expected to arrive in is because gas is a “longer- increase from 1,800 MW to ment had succeeded in province, together with a fuels such as oil and coal. LNG Pakistan in the first year, term business” than oil. 3,600 MW by 2017 as a re- restricting the benchmark pipeline that will bring gas is widely seen as the cleanest bringing diversity and “It requires physical infra- sult of this policy shift. price to 14.5% of the Brent from Iran to central Paki- of hydrocarbons with key role security to Pakistan’s structures, be it pipelines Pakistan has been facing crude price. Minister Ab- stan. Work will commence in to play in efforts to reduce energy supply. Power or LNG trains, which con- a severe shortage of natural basi pointed out that be- November 2015. global CO2 emissions, in line generation from LNG nect buyers and sellers gas, both for its electricity cause of certain clauses in with the objectives COP21, is estimated to increase over a longer period. It is generating plants and for the pricing mechanism; The LNG the global climate change from 1,800 MW to also more capital intensive: general use by industrial India was buying LNG international landscape conference taking place in 3,600 MW by 2017 as a these projects easily cost sectors. Domestic gas pro- from Qatar at around $13 With LNG growing in glob- Paris in December. result of this policy shift tens of billions. So there is duction of 4 billion cubic per million British thermal al importance, Pakistan is The IGU has present- a common interest to pro- feet per day (bcfd) is un- units (mmbtu), whereas one of four new countries ed its vision for COP21 tect these investments and able to meet the country’s the cargo that arrived in to enter the LNG market in in which they promoted duce emissions. Natural make them profitable.” demand. Indeed, the sup- Pakistan on April 27 cost $8 2015, together with Poland, greater use of gas in the gas provides a proven solu- This type of cooperation ply-demand gap is approxi- per mmbtu, for example. In Egypt and Jordan. “All eyes energy mix. Incoming IGU tion that works in almost can be seen in the gas pipe- mately 2 bcfd and has been that same meeting, the par- have turned to LNG as it has President David Carroll any application for all en- lines under construction steadily rising. liamentary panel was told emerged as a useful back up said, “Enhanced usage of ergy uses, is affordable and that will eventually connect Khalid Rahman, Man- that if the price was kept at resource for diversifying natural gas is the single plentiful around the world. Pakistan with Iran, India, aging Director of the Sui 14.5% of Brent crude rate, and securing energy sup- most effective way for the “Of course COP21 is about Afghanistan and Turkmeni- Southern Gas Company, LNG would be around 10% plies. Investment decisions world to responsibly re- carbon reduction, but en- stan (see page 14). one of the country’s leading cheaper than high sulphur on LNG projects, both firm integrated gas firms, says fuel oil, 20% cheaper than and pending, were unaffect- that Pakistan has hitherto low sulphur fuel oil and 50% ed by the unstable market depended too heavily on cheaper than diesel. and went ahead as planned,” imported crude oil. LNG, he according to the Interna- adds, will be crucial to make Pakistan is importing tional Gas Union’s World up the energy deficit. its LNG from Qatar, LNG Report 2015. The International Fi- the global leader in Overall, LNG trade glob- nance Corporation has said LNG exports by some ally reached around 241 that power outages are es- distance. Qatar exported million tonnes in 2014, a timated to cost Pakistan 77 million tonnes in 4.3 million tonne increase the equivalent of 7% of its 2014, or one third of the over 2013 levels, added gross domestic product per global supply, according the report. year, with blackouts and to an International Gas Some 60% of the world’s brownouts lasting up to 8 Union (IGU) report conventional gas reserves hours in urban areas and are located in just four even longer in rural areas. countries: Russia, Qatar, In the latest enterprise sur- “All this misinformation Turkmenistan and Iran. vey conducted in Pakistan, was being spread by the oil However, in terms of ex- the absence of a reliable importers as Pakistan pur- ports, the top ranking coun- electricity supply was cited chases furnace oil and die- tries are Qatar, Malaysia, by two thirds of business sel worth $2.5 billion per Australia and Nigeria. owners and managers as annum and if LNG imports A separate report by the top constraint facing become successful, then BG Group, an interna- firms in the country. who will buy furnace oil,” the tional LNG company, said Pakistan is importing its Minister told the meeting. that LNG supply has been LNG from Qatar, the global In addition to the use in stalled for the past three leader in LNG exports by power generation, it is en- years. 2014 saw the start of some distance. Qatar ex- visaged that the imported exports from Papua New ported 77 million tonnes LNG will also serve the fer- Guinea, the 19th nation in 2014, or one third of the tilizer industry, bringing fur- currently exporting LNG. global supply, according to ther benefits to the country The two train PNG LNG an International Gas Union and eventual savings to the plant exported its first car- (IGU) report. economy. Minister Abbasi go in May and by July was A major criticism faced has calculated the over- reported to be producing by the government over its all savings to the economy at a full capacity of 6.9 PROGRESSING pivot towards LNG is the from importing and storing metric tonnes per annum. perceived high cost. Mr LNG to be used in power However, this new supply Rahman said: “We do rec- generation and industry at from Papua New Guinea ognize that LNG is 50% or $1 billion annually. Fertilizer was offset by reduced TOWARDS 60% more expensive than manufacturers have been performance from some the indigenous resources, exempted from sales tax on existing plants. but we have to consider the imported LNG products in PROSPERITY options available right now effort to stimulate their in- Minister of Petroleum for Pakistan.” dustry further. Shahid Khaqan Abbasi Pakistan State Oil, the nation's largest Oil Marketing has calculated the Minister Abbasi has In early September, Company (OMC) is committed to fulfilling the fuel needs consistently defended the Prime Minister Nawaz overall savings to the price that Pakistan agreed Sharif approved the con- economy from importing of Pakistan in a timely and responsible manner. struction of a second LNG and storing LNG to with Qatar for LNG, claim- Serving around 3 million customers every day across ing it is the cheapest rate terminal at Port Qasim be used in power in the world. In May 2015, and directed that it should generation and industry the entire economic value chain, PSO strives to provide the Minister told a meet- be completed by the end at $1 billion annually the highest quality petroleum products and services ing of the National Assem- of 2016 in order to satisfy to its customers. Dedicated to keeping the wheels of urgent demand. The sec- progress moving forward, PSO is standing by the nation ond terminal will have a Jérôme Ferrier, Presi- at all times. “All eyes have turned to capacity of 500 mmcfd. In- dent of the IGU, has stated LNG as it has emerged ternational Finance Corp. that there are enough re- as a useful back up is making an equity in- serves of gas worldwide to resource for diversifying vestment in the terminal prompt a global transition and securing energy and providing a loan of as towards a gas-supported supplies. Investment much as $20 million, the sustainable energy system, decisions on LNG World Bank affiliate has re- especially when shale gas is projects, both firm ported. The project is part taken into account. He has and pending, were of IFC and the World Bank made it clear that the world unaffected by the Group’s strategy to mobi- cannot meet its growing unstable market and lize as much as $10 billion energy needs through re- went ahead as planned” in investments to address newables alone, and if fos- International Gas Pakistan’s power shortage. sil fuels are necessary then Ta’aluq Care Line: 0800-03000 | Website: www.psopk.com Union’s World LNG The following month, it natural gas and LNG is the UAN: 111-111-PSO (776) | /PSOCL Report 2015 was announced that the Chi- best option.

Our World Insert is produced by United World. USA Today did not participate in its preparation and is not responsible for its content 12 Thursday, October 22, 2015 Distributed by USA TODAY PAKISTAN

Capital-intensive industry seeks foreign partners Downstream sector gears This has come in numer- gional gateway for energy,” selling practices; local fi- economic value chain last “The foreign partner up for technology and ous guises through both he adds. “The petroleum nancing; and inexpensive, year alone. It has more can bring in foreign capacity upgradation as direct investment in infra- sector is amongst the most energetic, versatile and than 3,500 retail outlets financing; technology; global oil prices allow structure and plans to re- vibrant sectors. The coun- trainable manpower.” and is estimated to control production and room for achieving self move red tape and regula- try is very open to foreign Parco already has expe- around 75% of the coun- management practices sufficiency tory reform of the sector, investment and has intro- rience of such ventures, try’s oil storage capacity. benchmarking with which it is hoped will fur- duced an aggressive ex- with the firm currently Such infrastructure international standards akistan’s oil and ther increase local and for- ploration and production working with the Govern- places PSO at the center of and the power of gas sector is en- eign interest in the market. policy, allows unhindered ment of Pakistan, the Abu the government’s plans to international brands” joying unpreceden- The $46 billion China- repatriation of profits, Dhabi Petroleum Invest- improve Pakistan’s down- ted growth and its Pakistan Economic Cor- and offers great oppor- ment Company, OMV of stream activities. Its range Tariq Rizavi, downstream sec- ridor is further proof that tunities for international Austria and Total SA of of products – from gaso- Managing Director, Pak-Arab Refinery tor is no exception, with the Asian giant is becom- energy companies.” France. Its oil pipeline joint line and diesel to fuel oil, jet Limited (Parco) surgingP demands propelling ing an increasingly at- Parco’s management venture company, Papco, fuel and CNG – highlights investment and infrastruc- tractive proposition for sees international joint was created in a similar its wider economic signifi- ture spending. foreign investors. ventures as the best route guise, with the likes of cance. The firm has also company’s total refining The unreliable nature of the “With improvements ahead. “The foreign part- Shell and Pakistan State invested heavily in lique- capacity to 155,000 bpd. country’s energy supply has in political stability and ner can bring in foreign fi- Oil involved. Parco also fied natural gas (LNG) and Management at Byco be- been well documented over security, keenness of the nancing, technology, pro- recently acquired Chevron earlier this year became the lieve it makes the country recent years but as Pakistan’s government, availability duction and management Pakistan Limited and now first company in Pakistan well positioned to import economy enjoys a revival, the of a large, young, energetic practices benchmarking intends to enhance its re- to import the product into oil from abroad, and that need for efficient refinery in- and English speaking la- with international stan- finery capacity by 20%, and the country via the FSRU the new installation could frastructure and distribution bor force, this is probably dards and the power of it’s also looking to increase Exquisite, a floating stor- even be offered cheaper methods has become increas- the best time to invest in international brands,” the throughput of its White age and re-gasification unit crude oil from Iran after ingly important. Pakistan in the past two adds Mr. Rizavi. “The lo- Oil Pipeline and expand its holding 148,000 cubic me- the expected removal of in- Electricity black-outs are decades,” comments Tariq cal partner can contribute LPG business. ters of the product. The deal ternational sanctions. Un- commonplace across large Rizavi, Managing Direc- by its knowledge and un- Indeed there is little marked a turning point for like other facilities tied to swathes of the country and tor of Pak-Arab Refinery derstanding of the coun- doubt as to the impor- the company and country, long-term contracts with Pakistan’s government, un- Limited (Parco). try; its domestic policies tance of the downstream and while the LNG market crude oil suppliers, and der the tutelage of Prime “With its strategic geo- and business norms; op- aspect of Pakistan’s oil continues to throw up con- who may find it difficult in Minister Nawaz Sharif, is graphical location at the erating conditions and and gas industries, which siderable challenges, PSO is changing to new suppliers, now focusing both its time crossroads of Central Asia critical factors of pro- are estimated to have an- confident that issues over the new refinery is wide and money on rectifying and the Arabian Sea, Paki- duction and the market; nual sales of PKR 1 trillion the regularity and reliability open to new deals and that the situation. stan is considered the re- consumer behavior and ($9.6 billion). The govern- of supply can be overcome. could prompt Iran to con- ment’s efforts have come The nature of Pakistan’s sider offering a discount at a time when oil prices downstream oil and gas on crude oil supplies in a are lower than they have sector means this is likely, bid to open up its market, been for around a decade, with considerable compe- which would equally prove with expected savings of tition in the market. More beneficial for Pakistan. around $18.5 billion over than 10 major players are Prior to the new com- the next three years. Un- present, including the likes plex, the Pak-Arab Refinery doubtedly this is providing of multinationals such as (Parco) was the country’s challenges to the country’s Shell and Caltex involved. largest refinery, with a re- downstream sector but the PSO has maintained its fining capacity of around hope is that Pakistan – tra- position although like its 100,000 bpd, followed by ditionally a heavy importer competitors, the impact of the 68,000-bpd National of fuels – can capitalize on the plummeting oil price Refinery, 48,000-bpd Paki- the lower import prices by has not left it untouched, stan Refinery, and 45,000- improving its infrastruc- while other operators such bpd for Attock Refinery. ture as the economy grows. as Sui Northern Gas Pipe- According to its manage- The downstream sec- lines Limited (SNGPL) are ment, Parco’s mid-country tor already accounts for also focusing on new deals refinery is operating at direct employment of to secure growth. over 100% capacity. In re- around 100,000 people In September, the firm cent years, the company with another 25,000 or signed a far-reaching agree- has commissioned two ad- so in related industries. ment to supply three power ditional plants for diesel And there have been con- plants with re-gasified liq- hydrodesulphurization and siderable changes to the uefied natural gas (RLNG) asphalt production have market, with around PKR in a deal that saw the com- been commissioned. “In ad- 30 billion being invested pany linking with other dition, Parco is aggressively over the past five years Pakistani suppliers to pro- evaluating and acquiring across the sector to im- vide a sustainable supply existing businesses and prove facilities. Mean- from 2017. The deal high- turning them around with while the recent landmark lighted not only the com- its technical, human and deal between near neigh- pany’s clear ambitions, but marketing capacity,” says its bor Iran and the U.S. is also the wider optimism MD Mr. Rizavi. set to provide further lo- that is encircling the coun- Parco was recently con- gistical opportunities for try’s oil and gas sectors. firmed as being one of 10 companies in Pakistan. One of the industry’s public-sector enterprises SNGP Cross-border pipelines are headline-grabbing events of (PSEs) to be privatized being mooted and com- the year came in June 2015, as viable businesses over panies are increasingly when the Prime Minister the next year. During the looking to invest to secure inaugurated Pakistan’s larg- eighth review with the In- long-term profits. est oil refinery, whose ca- ternational Monetary Fund One such firm is Pakistan pacity to produce 120,000 (IMF) for a $6.2 billion State Oil Company (PSO), barrels per day (bpd) could bailout package, Pakistan which had traditionally op- potentially satisfy around and the IMF agreed to ac- erated as an oil retailer and 39% of the country’s energy complish the privatization is now completing a 40,000 needs. The $750 million of 10 PSEs through stock barrels per day (bpd) re- complex built by the Byco market transactions. finery to help the country Group is capable of annu- With global oil prices re- reduce its reliance on im- ally producing 1.6 million maining stubbornly low, ported fuels. tons of fuel, oil, 2.4 million Pakistan’s importing ten- This is being done tons of diesel, and 1.1 mil- dencies are meaning the through new investments lion tons of liquefied petro- country is in a position to and the acquisition of pre- leum gas (LPG). enjoy considerable savings viously foreign-owned ac- At the inauguration, Mr. that should power sustained tivities, as well as through Sharif remarked that the economic growth. Compa- partnerships with inde- project was a valuable addi- nies such as PSO, SNGPL pendent or foreign tech- tion to the petroleum sector and Parco undoubtedly face nology providers. The and would help in achieving challenges adapting to this firm is one of the country’s the national goal of sus- recent change, not least largest in terms of turn- tainable productivity and in securing long-term and over and has been a leader increased profitability. He reliable sources of energy in marketing the sector, also noted that the country for the country’s burgeon- both in black oil and white needed some 22 million ing demands. Yet the op- oil, with shares standing at tons of oil but the country portunities this change of 66.6% and 49.8% respec- still lacked capacity to re- circumstance affords the tively this year. fine crude oil and that it companies – and the wider The scale of PSO’s opera- would take time to achieve downstream sector as a tions are well known, with total self-sufficiency. whole – mean growth and the firm serving around The new complex is the investment should flow, de- 3 million customers ev- Byco Group’s second facil- livering benefits across the ery day across the entire ity and brings the Pakistani entire population.

Our World Insert is produced by United World. USA Today did not participate in its preparation and is not responsible for its content Distributed by USA TODAY Thursday, October 22, 2015 13 PAKISTAN USAID & EIA help to unlock Pakistan’s unconventional potential With estimated recoverable resources of 14 billion barrels of shale oil and around 95 TCF of risk recoverable free gas, Pakistan is working closely with international partners USAID and the Energy Information Administration (EIA) to boost production

ith only ship firms for the country’s “Our cost of production is “Shale gas can be a two years exploration and production not too much, we talk about real game-changer at the (E&P) sector. $6-7 a barrel, which means for Pakistan. The most helm the It posted record profits that we can survive low pric- glorious advantage of N a w a z after tax last year that sur- es, but for the new projects shale gas is the potential Sharif government has taken passed the PKR 100 billion we have to make sure that we massive job opportunities numerous measures to create mark ($956 million) and in will have an acceptable re- for skilled and semi- W skilled Pakistanis” an investment friendly envi- July reported that it had made turn on investment. Never- ronment, already improving a substantial discovery in the theless my perception is that regulatory oversight and pro- Punjab region of the country, prices will go up, I don’t share SHAHID KHAQAN Abbasi, cedures that streamline and suggesting the potential of the the widespread negative out- Minister of Petroleum and Natural facilitate approvals. country’s E&P sector. look for the oil and gas sec- Resources Pakistan’s blessed geo- OGDCL has started explo- tor,” he explains. graphical location has pro- ration of shale oil/gas reser- Indeed, Pakistan’s oil and vided it with a bounty of op- voirs in the country, which gas infrastructure is in need of “I am very keen to work portunities for oil and gas recently approved $8 million substantial development and it with American companies exploration and development, for exploring shale oil/gas remains a “limiting factor” ac- and utilize their expertise with a sedimentary base of reservoirs, which according cording to Mr. Bokhari, mean- in shale gas extraction,” he more than 800,000 square to the U.S. Energy Informa- ing investment into the service says. “There is a huge oppor- kilometers offering extensive tion Administration (EIA), sector has the potential of sub- tunity in Pakistan as far as possibilities for those operat- shale gas/oil reservoirs esti- stantial returns. Forging links shale gas is concerned. We ing in the upstream sector. mates of Pakistan are backed with international groups, do not have a lot of techni- According to the shale gas by proven studies and veri- particularly those in the U.S., cal expertise, we do not have study done under the US- fied technical data. could help to propel growth, experience, and we have got AID Energy Policy Program, At present, no shale gas is while the recent nuclear agree- the formations so the shale Pakistan has tremendous being produced in Pakistan ment with Iran is being seen as is there; the gas is there and shale gas/oil resources in the and significant work is re- a game changer for the pros- obviously Americans are ex- middle-lower Indus basin quired to kick start this high pects of the Pakistani industry. perts in this matter.” alone. The risked recoverable potential energy source. Although OGDCL is al- While such partnerships free gas is estimated at 95 “It must be underscored ready looking at investing its could offer the potential for TCF with significant upside that shale gas cannot be dis- own money abroad, it is clear considerable returns, envi- from adsorbed gas estimated credited because of its huge that the country’s oil and gas ronmental concerns are also at over 6,300 TCF. The same potential, estimated to be sector is also enticing inter- being addressed. OGDCL has study has confirmed that the enough for the next 70 years. national partners, particularly forged agreements with Paki- middle-lower Indus basin Shale gas can be a real game- from the U.S. The Pakistani stan’s government to develop has approximately 14 billion changer for Pakistan. The government has made it clear local eco-friendly projects, and barrels of risked recoverable most glorious advantage of The firm is 100% owned by ing facilities to the maximum they will consider investment it has also set aside PKR 2 bil- oil in place. shale gas is the potential the Government of Pakistan capacity, reduce unnecessary in pipeline infrastructure, and lion on schemes that focus on Minister of Petroleum and massive job opportunities for and operates under the Min- items and costs.” Mr. Mir admits that working developing roads, schools and Natural Resources, Shahid skilled and semi-skilled Paki- istry of Petroleum and Natural OGDCL tests each pro- together on projects – includ- hospitals. Such a strategy high- Khaqan Abbasi, highlights stanis,” says Mr. Abbasi. Resources, and had a manda- spective project out against ing on shale gas exploration – lights that despite global price that it is important to note OGDCL is not alone in tory 5% interest in all explora- different economic scenarios could provide a boon for both volatility, Pakistan’s E&P sector that Pakistan shared its Pakistan’s upstream sector tion licenses granted by the and if they remain viable the companies investing and remains committed to long- geological data as part of however, with another major government during the explo- against a price of $40 per bar- Pakistan itself. term growth that benefits not the U.S. Geological Survey E&P player being Pakistan ration phase which was to be rel – allowing the company just its stakeholders but also (USGS) from 1955 to 1970, Petroleum Limited (PPL). carried by other joint venture to at least break even – they Government Holdings the country as a whole. while India and China were Syed Wamiq Bokhari, Man- partners. GHPL holds work- will progress. PL currently has more Mr. Abbasi adds, “In not on the U.S. bloc during aging Director and CEO at ing interest in a total of 120 Mr. Mir adds that while than 60 development the PML-N manifesto, we the cold war. It had obtained PPL, believes the country is joint ventures and is currently the price fall is inevitably and production leases promised to address the multi-million dollar grants well placed to capitalize and in partnership with 27 nation- having an impact on the and 50 exploration challenge of unemployment. from the U.S. to the set up perhaps most importantly al and international oil firms, sector, it is also providing licenses, highlighting Using energy as a driver of a geological survey of Paki- make cost-effective invest- making it one of the largest opportunities by allowing the extent of potential economic growth, and uti- stan, including development ments that will reap benefits E&P companies in Pakistan. companies such as his to across the country and lizing indigenous resource of laboratories and facilities in the longer term. Political developments are take advantage of low devel- an underlying optimism must be on the top agenda in all over the country. “If you work for the brave, also helping to cast optimism opment and drilling costs. in the industry for energy security.” Oil and Gas Development today, there is an opportunity. over Pakistan’s oil and gas sec- Company Limited (OGDCL) In our industry, returns are tor, and the recent landmark is one such company making after several years, it is a long nuclear deal signed between the most of Pakistan’s natural cycle. If you are willing to in- Iran and global powers could resources and one of the flag- vest now, your investments open up more possibilities for will be substantially lower, OGDCL and PPL. because the costs have gone With fewer Western sanc- down. We are seeing around tions, a much-discussed pipe- a 20% reduction in most of line between the two countries our drilling and facilities, so could finally come to fruition, this is very positive for those “Iran is our neighbor, so there willing to be brave right now is a natural partnership al- and make investments,” Mr. ready,” Mr. Bokhari says. “They Bokhari explains. have also developed their ser- PPL is well known as the vice sector quite a bit, so open- operator of Pakistan’s larg- ing the borders between these est gas reserve, the Sui field, two countries will allow a big- which has been operational ger participation of that sector since 1952, but it has a further in both regions. Our guys can 47 exploration blocks and op- work over there; their guys can erates from 27 of them. work over here, so there is an “We are very different in advantage for both sides.” our operations. When I was The ambitious goals of OG- “There is a huge working outside Pakistan DCL see its vision go even fur- opportunity in Pakistan and looking into some in- ther afield for future growth as far as shale gas is vestment opportunities in prospects. It has around $2.5 concerned. We don’t Pakistan, we did an analysis billion to invest in expand- have a lot of technical of all the companies here, ing the company’s reach, and expertise, we don’t have and at that time I identified Managing Director and CEO experience, and we’ve PPL as the partner of choice, of OGDCL Zahid Mir is clear got the formations so the and now I’m sitting here,” that moving out of Pakistan shale is there, the gas says Mr. Bokhari. will be a key plank to the com- is there and obviously It is also keen to expand pany’s strategy. Americans are experts in from its exploration and “We want to make the this matter.” production activities and is company reach new levels of well placed to increase its growth, and in order to do that, Zahid Mir position as a provider of oil there is absolutely no other Managing Director and CEO, OGDCL and gas to meet rising do- way but to go international,” he mestic demand. says. “Oil production in Paki- From an international stan ranges from 60,000 bar- viewpoint, PPL is a mid- rels to a maximum of 110,000 sized oil company, but what barrels. When we find oil, they most people do not realize are small reservoirs; you keep is that in terms of barrels of on finding those small fields oil equivalent (BOE), Paki- but there is no game changer. stan is on the same level as “My opinion is that there Indonesia. PPL is close to may be a game changer if we doing 180,000 BOE per day, are able to find something big which is no small feat. The offshore, but it is not happen- difference is that Pakistan ing so far. So, if we want to has mostly a gas mix and the grow from our current size we market is relatively close. Mr. need to go international. We Bokhari explains, “The rea- are looking at different places son is very simple: when the such as Africa, Kazakhstan, country came into existence, and Turkmenistan.” they found a huge field. For While there is little doubt many years they thought all that oil price volatility is pro- “If you work for the their needs were met, but viding considerable challenges brave, today, there is an with the population growing to the industry – particularly opportunity. In our industry, so fast, those needs require for those operating in the returns are after several more energy.” E&P sector – Mr. Mir says his years, it’s a long cycle. If Another major E&P player company is concentrating on a you are willing to invest is the state-owned Govern- longer-term strategy and not now, your investments will ment Holdings PL (GHPL). basing its future on short-term be substantially lower, It currently has more than forecasts and predictions. because the costs have 60 development and produc- “Regardless of the prices we gone down” tion leases and 50 explora- do not stop our on-going proj- tion licenses, highlighting the ects; we are already commit- Syed Wamiq Bokhari, extent of potential across the ted and we will finish them,” he Managing Director and CEO, Pakistan country and an underlying says. “But for the new ones, we Petroleum Limited (PPL) optimism in the industry. try to use efficiently the exist-

Our World Insert is produced by United World. USA Today did not participate in its preparation and is not responsible for its content 14 Thursday, October 22, 2015 Distributed by USA TODAY PAKISTAN Huge gas supply boosts in the pipeline The landmark TAPI Pakistan currently has a pipeline and Iran-Pakistan deficit of 2 billion cubic pipeline, which, after a feet (bcf) of gas per day, long delay, now looks set rising to 2.5 bcf per day to go ahead thanks to the during the winter months. removal of sanctions on Unfortunately Pakistan Iran, will help Pakistan’s cannot meet the demand gas utility companies, Sui for gas through domestic Northern Gas Pipelines production; therefore Limited and Southern Gas importation of natural Company, cope with rising gas is a necessity. demand for natural gas

akistan’s oil and says Ms. Khan, who con- gas industry has tinues by sharing her op- faced consider- timism for the future – an able challenges optimism fueled by these over recent years pipeline projects coming but domestic demand for on stream. Penergy and untapped re- “I feel that the govern- sources means it’s fast be- ment and SNGPL will work coming a tempting market in harmony and make a for investors. Energy short- joint leap forward in re- ages in Pakistan are com- spect to attaining the ul- monplace and the resultant timate goal of delivery of negative effect on domestic uninterrupted supply to output means solutions are our gas consumers,” she keenly sought by the gov- says. “The IP project for ernment, one of which is the 700 mmcfd of gas coupled importation of gas. with the 1.2 billion cubic Pakistan currently has a feet per day of RLNG that deficit of 2 billion cubic feet SNGPL will receive are (bcf) of gas per day, rising to Pakistan’s oil and gas infrastructure is in need of substantial development likely to materialize in the 2.5 bcf per day during the short term. This will also winter months. Unfortu- try’s leading gas utilities. to India (200 kilometers States, was first conceived “There are a lot of be beefed up in the medi- nately Pakistan cannot meet “LNG (liquefied natural will run though Turkmeni- in the 1990s. It has long opportunities for um term by the import of the demand for gas through gas) will be a game breaker stan, 773 kilometers – Af- suffered from delays, but transmission and gas through the TAPI proj- domestic production; there- because any shortfall that ghanistan, 827 kilometers in September Turkmeni- distribution in Pakistan ect. The government will fore importation of natural you have can be solved – Pakistan). Proponents of stan government officials and coming into the also be laying the North- gas is a necessity. by bringing it by vessel. the project say it will form said that building work market as a JV (joint South pipeline for meeting “We have a major deficit LNG has to and will play a vital part of the establish- would finally begin in De- venture) partner for the energy requirement of and so far there is a heavy a very important role in ment of the modern Silk cember. Pakistan’s Prime companies such as the country.” reliance in imported crude going forward.” Road, which was once an Minister Nawaz Sharif SSGC or SNGPL. That The North-South gas oil. The idea of gas is to be Aside from the impor- ancient network of trade told a meeting of business will support our business pipeline will spread over able to meet the shortfall tation of LNG by vessel, routes through the Asian leaders in Islamabad that going forward and 1,100 km and is due for be that we have,” says Khalid there are a number of pipe- continent connecting the he would travel to Turk- bring the partner very completion by March 2017 Rahman, Managing Direc- line projects set to come on West and East. menistan in December for attractive opportunities” at a cost of $2 billion. In tor of Sui Southern Gas stream that will significantly The project will cost the project’s inauguration April, Pakistan and Rus- Company, one of the coun- boost Pakistan’s supply of around $10 billion and ceremony, adding that it Khalid Rahman, sia finalized a $2-billion imported natural gas. is being developed and would take just four years Managing Director, SSGC energy deal for laying the One of the most notable partly funded by the Asian to complete. The prime LNG pipeline from Karachi “I feel that the projects is TAPI, a 1,800 ki- Development Bank. It was minister has hailed TAPI to Lahore. Russia’s Minis- government and SNGPL lometer-long pipeline that recently reported that the as a game changer that “We have requested a try of Energy and Pakistan’s will work in harmony will pass through Turkmen- bank will not limit itself would help to spur greater meeting with Iranian oil Ministry of Petroleum and and make a joint leap istan, Afghanistan, Pakistan to funding, but will ren- regional integration. minister to inform him Natural Resources will su- forward in respect to and India, through which to der assistance in attracting Another game changer about the latest IP develop- pervise and coordinate attaining the ultimate up to 33 billion cubic meters the credit sides, as well as for Pakistan will be the ments. We are also look- the implementation of the goal of delivery of (bcm) of natural gas will be take part in the coordina- Iran–Pakistan (IP) gas ing for more cooperation North-South Gas Pipeline uninterrupted supply to pumped per year. The pipe- tion of the work to attract pipeline, also known as the in post-sanctions era with Project. Russia has also ex- our gas consumers” line will transport Caspian other interested funders Peace Pipeline, which will Iran. Holding a meeting pressed interest in support- Sea natural gas from Turk- and investors. deliver natural gas from with Iranian oil minister at ing the IP pipeline. Uzma Adil Khan, menistan through Afghani- TAPI, which is also being Iranian fields to Pakistan. this time is important. While SNGPL will receive CEO and MD, SNGPL stan into Pakistan and then supported by the United Like TAPI, the 2,775 kilo- “Based on the IP con- 994 mmcfd of gas imported meter-long IP pipeline has tract, the basic price (of through the TAPI pipeline, long been delayed, but the gas) is agreed but it was the remaining 331 mmcfd, changing geopolitical land- also agreed that one year or 25%, will be allocated to scape that will lead to the before the first gas flow, SSGC. Like SNGPL, SSGC removal of sanctions on the two parties will sit to- also has its own pipeline Iran will pave the way for gether and negotiate the project in the works. Its construction of the project final price based upon the 358-kilometre network of to finally begin. market realities.” pipelines, with a diameter of “We need gas. Iran has Once operational, the 42 inches, will be completed the world’s second-largest IP and TAPI pipelines will at a cost of Rs44 billion. gas reserves,” Pakistan’s offer a significant boost to “We have already started Minister of Petroleum Sha- Pakistan’s gas utility com- to work on various pro- hid Khaqan Abbasi has stat- panies struggling to keep grams and the first one is ed. By 2020, the minister up with rising demand. this pipeline, from Karachi predicts that the IP pipeline One such company is SNG- to Sawan, where there is a will provide Pakistan with PL, the country’s largest connecting point to trans- a peak of 750 million cubic integrated gas company, mit gas to SNGPL system,” feet of gas per day (mmcfd), which today serves more explains SSGC managing equating to $2.5bn annually than 4.9 million consum- director, Mr. Rahman. at current prices. ers in North Central Paki- SSGC’s transmission sys- stan, through an extensive tem extends throughout “Sanctions are still in network in Punjab, Khyber Southern Pakistan, from place and investors are Pakhtoonkhwa, Azad Jam- Sui in Balochistan to Kara- worried that even after mu and Kashmir. chi in Sindh, covering over removal of sanctions, Chief Executive and 1200 towns in the Sindh still there is possibility of Managing Director Uzma and Balochistan. And the sanctions coming back Adil Khan admits that the company is very involved in because of different company currently cannot the communities in which legal issues. But we are keep up with demand in it operates through its cor- working on it (the Iran- the region (which in winter porate social responsibility Pakistan pipeline). There months can exceed 3 bcf), (CSR) programs. is no serious problem particularly in Punjab prov- “If you really want your and we are going ahead ince, where the utility com- business to be sustainable with the pipeline from pany is forced to carry out a you have to engage com- Gwader to Nawabshah” gas rationing plan. But the munities,” says Mr Rahman. IP pipeline and TAPI could “We are making a better life Shahid Khaqan Abbasi, change all that. for them, not in a giveaway Minister of Petroleum “SNGPL is hopeful that model, but really creating long delayed IP pipeline will new opportunities with now become a reality since programs such as develop- Construction of 700 kilo- the landmark nuclear deal ment of schools, orphan- meters of the pipeline from between Iran and global ages, scholarships etc. We Gwadar to Nawabshah, the powers will help remove need to respect the under- main part of Pakistan side western sanctions. SNGPL privileged to the maximum of the project will be man- is likely to get an additional and that´s where our CSR aged by a reputed Chinese 500 mmcfd from IP in the program comes in.” firm. The remaining 80 kilo- beginning, which will be In terms of helping com- meters of the pipeline from ramped up to 700 mmcfd,” panies like SSGC and SNG- Gwadar to the Iranian bor- says Ms. Khan. PL move forward, where can der will be built by two Paki- In addition, SNGPL is also U.S. investors come in? stani companies, Sui North- looking forward to the al- “The biggest issue we ern Gas Pipelines Limited location of 994 mmcfd, or have is technology and that’s (SNGPL) and SSGC. Ac- 75 per cent of gas imported something where interna- cording to Mr. Abbasi, con- through the TAPI pipe- tional expertise, specifically struction will begin within line, most of which will be from the U.S., can be of great six months, with the proj- pumped into Punjab prov- help,” Mr. Rahman replies. ect due for completion by ince to help it overcome the “We need to find new December 2017. severe energy crisis. ways to make technology “Sanctions are still in place SNGPL is also laying a work in our favor and help and investors are worried 762 kilometer-long pipe- us overcome our challenges. that even after removal of line network at a cost of There are a lot of opportu- sanctions, still there is pos- PKR 57 billion ($ 546 mil- nities for transmission and sibility of sanctions coming lion). “This pipeline project distribution in Pakistan and back because of different le- will ensure the timely im- coming into the market as gal issues,” Mr. Abbasi said in port of RLNG (re gasified a JV (joint venture) partner a recent interview. “But we liquefied natural gas) into for companies such as SSGC are working on it. There is no our system from Karachi. or SNGPL. That will support serious problem and we are This will definitely reduce our business going forward going ahead with the pipeline our fuel bill since RLNG and bring the partner very from Gwadar to Nawabshah. will be cheaper than diesel,” attractive opportunities.”

Our World Insert is produced by United World. USA Today did not participate in its preparation and is not responsible for its content Distributed by USA TODAY Thursday, October 22, 2015 15 PAKISTAN SHALE IN PAKISTAN PAKISTAN’S ENERGY MIX

According to the shale gas study done under the USAID Energy Policy Program, Pakistan has tremendous shale gas/oil resources in the middle-lower Indus basin alone. The risked recoverable free gas is estimated at 95 TCF with significant upside from Pakistan the adsorbed gas in place estimated at over 6,300 TCF. The same study has confirmed that the middle-lower Indus basin has approximately 14 billion barrels of risked recoverable oil in place

Shale gas Shale oil Country (trillion cubic feet) (billion barrels) Gas Russia 285 75 35% Oil U.S. 862 58 46.2% Hydro China 1275 32 Nuclear

Mexico 681 13 5.4% 2% Coal

Pakistan 95 14 11.4%

Indonesia 46 8 USA

Annual CONSUMPTION of DIESEL, PETROL AND FOREIGN RESERVES 2015 Coal

Other gases 27% Renewable billion million million 39% $20.05 USD 7. 2 tons 4.8 tons Hydro FOREIGN RESERVES 1 DIESEL 2 PETROL 2 Oil 1 Source: State Bank of Pakistan 2 Source: Min. of Petrol Gas 19% 1% Nuclear 1% 6% 7% LNG: LIQUEFACTION CAPACITY

0% 120% World Algeria 3% Australia Coal 3 Pakistan 16% Renewable USA 41% Hydro 13% Oil Qatar Gas 0 20 40 60 80 MTPA Nuclear 21% 2014 2020 Utilisation, 2014 (top axis) 6%

3 Projected demand

Our World Insert is produced by United World. USA Today did not participate in its preparation and is not responsible for its content 16 Thursday, October 22, 2015 Distributed by USA TODAY PAKISTAN Privatization and U.S. support put Pakistan on track towards 50,000 MW goal

Pakistan’s power sector has hampered growth energy started developing of Pakistan’s power is gen- for many years. The mainly with hydro. Then erated using GE technol- combination of new they diversified into gas ogy,” said Mr. Sheikh at a government initiatives, a and in the late 90s, they recent conference. revitalized private energy invested quite heavily on GE established its roots sector and cooperation heavy fuel oil as a source of in Pakistan with the coun- with international power. I think what Paki- try’s independence and partners – namely the stan needs to do is to con- has had a direct presence U.S. – is going a long tinue to diversify its energy through its subsidiaries way to not only deal with needs and also, particular- since 1980. GE has ex- the issues that Pakistan ly, to keep an eye on energy panded its portfolio to sup- faces, but also to make it security and cost.” port other GE businesses one of the most dynamic Much progress towards in addition to GE Power and geopolitically this goal has already been Systems (now GE Infra- important energy players made, with the Pakistan’s structure Energy) located in the world Ambassador to the U.S. at Lahore, and has since Jalil Abbas Jilani recently been working actively with quoted as saying: “I have national companies and no doubt that by 2017, private businesses. Today, ne of the ma- we will not only be able GE is a key player in sup- in challenges to overcome the energy porting the development Pakistan’s eco- shortfalls, but also we will of the power sector, hav- nomy faces to- have surplus energy, as ing signed a Memorandum day is power we’re going to add about of Understanding (MoU) supply. Prime Minister Nawaz 10,000 MW of power in to develop Pakistan’s en- OSharif’s government has said the national grid.” ergy resources to meet Sarim Sheikh, CEO and President of GE Pakistan that it plans to improve Paki- the projected demand of stan’s power sector through “$1.2 billion has been 54,000MW by 2020. reform and investment to invested in the company In May 2015, GE reit- tion capacity,” said Azeez “We had to change the “I think what Pakistan boost growth, and hopes to and both the distribution erated its commitment Mohammed, CEO and mindset of our workers from needs to do is to end chronic power short- and transmission to Pakistan when a high- President of GE Power a public sector institution to continue to diversify its ages that have crippled the capacity has improved level business delegation and Generation Services a private one,” explains CEO energy needs and also, economy for years. So, it has to bridge the gap representing GE and M/s (Middle East and Africa). of KE, Tayyab Tareen. “$1.2 particularly, keep an made real strides to tackle between the demand American Ethane Com- “Strengthening its energy billion has been invested in eye on energy security this issue head on. and supply of electricity. pany visited Islamabad to sector capacity is crucial the company and both the and cost” Federal Minister for Fi- Our privatization stands show interest in setting to meet the growing de- distribution and transmis- nance Ishaq Dar has been as a success case and up a new 6000MW eth- mand for power in Paki- sion capacity has improved Sarim Sheikh, praised for undertaking has helped the company ane gas power plant in the stan. It also highlights the to bridge the gap between CEO and President, GE Pakistan structural reforms to cre- get back on the track of country. Ethane – a smart, capabilities of our Power the demand and supply of ate an investment friendly growth” cost-effective and environ- Generation Services busi- electricity. Our privatization environment, especially ment friendly fuel – burns ness to provide smarter, stands as a success case and ment Agreement, with in the energy, infrastruc- Tayyab Tareen, up to 80% fewer emissions cleaner and more efficient has helped the company get the China Datang Over- ture development, large- CEO of K-Electric Limited as compared to oil & coal solutions to our custom- back on the track of growth.” seas Investment Com- scale manufacturing and and is suitable especially ers, and the communities “K-Electric’s turnaround pany (CDTO) and China agricultural sectors. The for areas not served by they serve.” from a loss-making entity Machinery Company showpiece of this policy is Indeed, U.S.-Pakistani natural gas lines. Along Aside from the American into a profitable one is a (CMEC), for the develop- the Integrated Energy Plan, relations are vital to the with American Ethane, GE multinational, the recent story of sustained optimism ment of a 700-MW project which aims to achieve self- success of this develop- Pakistan is now consider- privatization of domestic and unwavering determina- at Port Qasim. sufficiency by generating ment. When Mr. Dar met ing setting up the large energy firms also marks a tion that set a benchmark “KE is developing new 50,000 megawatts (MW) with U.S. Under Secretary scale plant in order to help huge step toward the Paki- for state-run power entities generation projects and of power within the next of State Catherine Novelli Pakistan further reduce its stani energy challenge; with in the country,” adds Chair- is giving them the high- 25 years. they both agreed that en- energy deficit. the privatization of Hubco man Tabish Gauhar. est priority. This particular While addressing the ergy remains the vital area The announcement and K-Electric Limited dra- KE – formerly known project will go a long way in recent National Energy that holds immense po- comes on the back of a matically improving the ef- as Karachi Electric Supply addressing the power needs Conference on Prospects tential for enhanced co- MoU that GE signed last ficiency of both firms. Company Limited (KESC) of the country, specifically of Power Generation, or- operation. The U.S. has year with Pakistani firm For instance, since it was – manages the generation, the people of Karachi,” said ganized by South Asian continuously stressed the Sapphire Electric Company taken over by Pakistani in- transmission and distribu- Mr. Tareen, commenting af- Strategic Institute Univer- importance of continuing Limited. The MoU is for the vestor Hussain Dawood in tion of electricity to Kara- ter the three parties issued sity in Islamabad, Minister to build momentum on ex- creation of ‘GE Predictiv- 2012, Hubco’s (Hub Power chi, and in doing so lights a statement in September. of Water & Power Kha- panded trade, investment ity’ solutions that will play Company Limited) profits up one of the most popu- The statement declared that waja Muhammad Asif said and economic cooperation an integral role in deliver- have soared. In the fiscal lous cities in the world (20 “considerable progress” had that to develop a concrete with Pakistan. ing more power to Pakistan, year ending June 2015, Hub- million people). been made on the project road map for a secure en- “We are grateful to the and help close a gap be- co recorded a 50% growth “Karachi was once con- during the last few months ergy vision for the future, United States for the eco- tween the country’s power in net profit, while its gross sidered the city of lights and that the agreement was the nation must work at nomic cooperation as well capacity and ongoing elec- profit margin at 11% was and we want to restore a major step forward to- developing indigenous sci- as its assistance in the en- tricity demand. one its highest ever. Fur- that pride back,” says CEO wards the finalization of the entific and industrial ca- ergy sector. Pakistan-U.S. thermore, in January 2015, Mr. Tareen. “I believe that flagship project. pacities to explore domestic cooperation in the energy “The government is Hubco announced it would through the transformation The project is set to bring energy reserves. sector has added 1400MW making every effort set up 1320MW coal-based our company is achieving in an investment of over “The government is mak- of electricity to our na- to increase electricity power plants next to its we are changing people’s $1 billion to Pakistan, not ing every effort to increase tional grid. The U.S. is also supply to the national thermal power station in lives and lifestyle.” only helping the country to electricity supply to the supporting large hydro- grid through all Balochistan and gradually Today the company cov- diversify its fuel mix, but national grid through all electric projects like Dasu possible avenues, enhance coal based genera- ers an area of over 6,500 lower generation costs as possible avenues, private and Diamir Bhasha dams, private sector being tion to 3600MW. square kilometers and pro- well, ultimately benefiting sector being one of them,” initiated by Pakistan,” Mr. one of them.” Meanwhile, K-Electric vides electricity to all the the end consumer. Going said Mr. Asif. Jilani has stated. (KE) – Pakistan’s only ver- industrial, commercial, forward, KE is set to invest He also explained that U.S. firms, namely GE Khawaja Muhammad Asif, tically integrated power agricultural and residen- further in the future of Pak- the geographical position Pakistan, have had a huge Minister of Water and Power utility – has also turned its tial areas that come under istan with the realization of of Pakistan not only makes role to play in the Pakistani fortunes around since it its network, which totals a even more power projects. it a potential energy ex- energy revolution. As the was privatized in 2005 and number of more than 2.2 “An LNG (Liquid Natural porter, but also a trade and Chairman of the Pakistan’s GE explained in its press taken over by UAE’s Abraaj million customers in Kara- Gas) based power project energy corridor for South Board of Investment, Dr. release: ‘Predictivity solu- Capital three years later. chi and in the nearby towns of around 225MW is in the and Central Asia. And due Miftah Ismail, says: “Some tions combine the power of Since then, the company of Dhabeji and Gharo in works. We believe LNG can to this advantage, Paki- companies that are already the company’s connected has enhanced its genera- Sindh and Hub, Uthal, Vin- be an effective tool to over- stan can maneuver itself present in the country are machines network, data tion capacity by 1037MW dar and Bela in Balochistan. come energy shortages,” in a way that significantly doing a great job, such as analytics and people at through the addition of Having demonstrated a says Mr. Tareen. increases its bargaining GE. A third of all power work to help power genera- four new power plants and strong ability to bring about Should progress in the power in the region and generation in Pakistan tors manage their plant fa- a steam turbine, and in a sustainable change, the energy sector in Pakistan beyond, thus signifying the comes through GE tur- cilities more productively, FY2014-2015 its tax profit company has followed a continue at its current importance of the reform bines. The U.S. obviously and make well-informed stood at PKR28,325 million path of growth and trans- pace – in no short thanks of the sector. has unbeatable technol- operational decisions. The ($271 million). formation, in turn placing to the continued invest- Key to the success of this ogy, therefore we want to MoU is part of GE’s stra- itself amongst the most dy- ment of companies such policy is energy diversifica- use their expertise.” The tegic partnership approach namic institutions in Paki- as K-Electric – there is no tion. The aim is to maxi- relationship is amicable on to co-create tailored solu- “I have no doubt that by stan and in the South Asia doubt Pakistan will remain mize the use of indigenous both sides, with GE more tions that will increase the 2017, we will not only region. “We will ensure we well on its way to achieving resources to achieve a more than happy to assist the de- plant’s (Muridke Power be able to overcome keep the ‘lights on’ and we the ambitious energy goals. diversified energy mix velopment of the Pakistani Station) output.’ the energy shortfalls, will improve our perfor- Such goals are so important (hydel 20%, coal 15%, LPG energy sector. “We are proud to but also we will have mance to provide the en- not only on a domestic level 2%, nuclear 3%, renewable “We are proud to have strengthen our partner- surplus energy, as we’re ergy that Pakistan needs to in terms of Pakistani energy 12%, domestic gas 21%, im- been a partner of Pakistan ship with Sapphire Elec- going to add about grow,” says Mr. Tareen. use, but also on an interna- ported gas 7%, oil 20%). in its development story; tric Company through 10,000 MW of power in This sentiment was re- tional level as the country As President and CEO we have been involved in this important agreement, the national grid” affirmed last month when looks set to gain massively of General Electric (GE) building dams, we have which will help drive more KEL announced a deal for from the excess electrical Pakistan, Sarim Sheikh, been involved in gas pow- momentum in expanding Jalil Abbas Jilani, a coal-fired power plant, capacity which will be de- recently noted, “Pakistan’s er plants, so almost a third Pakistan’s power genera- Pakistan Ambassador to the U.S. signing a Joint Develop- veloped in coming years.

Our World Insert is produced by United World. USA Today did not participate in its preparation and is not responsible for its content Distributed by USA TODAY Thursday, October 22, 2015 17 PAKISTAN Renewables to reduce hydrocarbon use by more than 25% by 2025 While renewables currently only generate 1-2% of the country’s energy, Pakistan is committed to using more solar and wind sources to reduce its dependence on hydrocarbons

akistan has faced ister of Finance, Mohammad severe and repeat- Ishaq Dar, the U.S. renewed ed energy short- its support of the Diamer ages that have left Bhasha Dam – a gravity dam rural areas with- on the Indus River, which out power for up to 20 hours upon completion will be the aP day, and have even forced highest roller compacted local factories to close down concrete dam in the world. due to highly diminished out- It will produce 4,500MW of put. This is largely because at electricity through hydro- present, 87% of the country’s power generation and store energy comes from hydrocar- 10.5km3 of water for irriga- bons such as imported coal, tion and drinking, in addition oil, and gas – a dependence to helping control for flood which Pakistani energy offi- damage. While the U.S. has cials hope to reduce to 60% by already offered $250 million 2025 through the use of alter- in assistance, in further sup- native energy sources. port of this project and paral- “Pakistan offers good As Najam Ahmed Shah, the projects to its repertoire, in- Development Bank (IDB) Although Pakistan cur- lel opportunities, USAID also opportunities for chief executive officer of cluding a 50MW wind farm and the Asian Development rently generates only 1-2% pledged its support for help- investment in renewable QASP recently announced, at the Ghoro-Keti Bandar Bank (ADB), there are hopes of its energy from renewable ing to improve governance in energy as the country is the solar park will also shrink which received $95 million to continue facilitating new energy sources, it is commit- the power sector by announc- blessed with vast natural Pakistan’s carbon footprint in financing from the U.S. projects that will also more ted to making solar and wind ing plans to hold a conference resources” by displacing about 57,500 Overseas Private Investment fully engage the private sec- energy a larger component of highlighting investment pos- tonnes of coal burn and re- Corporation (OPIC). Known tor. “The government is its future power bank. The sibilities in Pakistan’s renew- Khawaja Muhammad Asif, ducing emissions by 90,750 as the Sapphire wind farm, supporting investors and Pakistani Federal Minister able energy sector. Federal Minister for Water and Power tonnes every year. it uses 33 General Electric developers through various for Water and Power, Khawa- To encourage and facilitate (GE) turbines. incentives and has removed ja Muhammad Asif, recently A New Silk Road? the transparency of projects “I think energy is evolv- certain challenges such as affirmed that the govern- “Even though we are strength- project known as Quaid- in a similar vein, Pakistan’s ing and the main thing is to making land accessible and ment welcomes renewable ening our relationship with e-Azam Solar Power Park energy regulator, the National diversify, to try and focus aligning project develop- energy projects. “Pakistan China, the meaningful num- (QASP), the first solar power Electric Power Regulatory on getting more indepen- ment with grid capacity,” offers good opportunities for bers still come from USA,” plant ever built in Pakistan. Authority (NEPRA), has re- dence rather than growing said Mr. Awansaid at a recent investment in renewable en- said the Pakistani Minister Spread over almost 500 acres cently approved net metering dependent on imports,” said event held in London to pro- ergy as the country is blessed for Privatization & Chairman of land and completed for schemes for solar and wind Sarim Sheikh, the CEO and mote new opportunities in with vast natural resources,” of the Privatization Commis- $130 million in just three generation of up to 1MW. President of GE Pakistan. He the renewable energy sector. he told Sabah News. Follow- sion of Pakistan, Mohammad months after the Chinese Under this system, NEPRA underscores the importance “We have a shared vision and ing talks in early September Zubair. “USA delegations are company, Xinjiang Sunoasis, will grant generation licenses of using energy that can be a commitment to developing with a delegation from Zorlu constantly coming to visit us took the construction reins, to solar and wind system sought through the use of re- a clean energy regime.” Energy Pvt Limited – the as well and this is extremely it is the first installment of a owners after inspecting and newables and indigenous or largest solar company in important, especially in the $46 billion China-Pakistan approving their equipment. neighboring sources; a senti- Turkey – it was announced energy sector.” Economic Corridor project. As far as eolic power goes, ment largely echoed by Am- “I think energy is that Zurlo would make a 200 Indeed, while the US still Linking Pakistan to China’s Pakistan also has an impres- jad Ali Awansaid, the CEO of evolving and the main megawatt (MW) investment provides solid support when western region of Xinjiang sive lineup of projects in Pakistan’s Alternative Energy thing is to diversify, to in solar power and a 100MW it comes to furthering the use through a new “silk road,” the pipeline. The country’s Development Board (AEDB). try and focus on getting investment in wind power. of renewable energy in Paki- the project is predicted to first wind park was commis- AEDB has been a strong more independence Likewise, in a recent meet- stan, China has also pitched become the world’s largest sioned in 2012 and offers proponent of the develop- rather than growing ing between Donald Sampler in to help build the world’s solar farm by 2017, with 5.2 49.5 MW of capacity drawn ment of Pakistan’s wind pow- dependent on imports” Jr,the acting assistant to US- largest solar farm in the million photovoltaic cells from 33 1.5MW Nordex tur- er sector, and while grateful AID for Afghanistan and Pak- Punjabi desert – a 100 MW, producing enough electric- bines. Since 2012, Pakistan for the support of institu- Sarim Sheikh, istan, and the Pakistani Min- 400,000-panel pilot power ity to power 320,000 homes. has added several more wind tions like the International CEO and President, GE Pakistan

Our World Insert is produced by United World. USA Today did not participate in its preparation and is not responsible for its content 18 Thursday, October 22, 2015 Distributed by USA TODAY PAKISTAN Education improvements boost competitiveness Education, one of the central concerns of Pakistan’s Vision 2025 plan, is becoming more accessible to population, and higher education in particular is moving the country forward in science and technology

National University of Science and Technology, Islamabad

mong the am- ulation was 5,900; today, it “We are looking towards bitious goals is more than 15,000. The the developed and that Pakistan’s university admits students advanced countries to Prime Min- based on merit alone, train our people, either ister, Nawaz which gives the student in Pakistan or in an Sharif, has set for his coun- population a mix of qual- advanced country like try, a strong focus on the ity from all socioeconomic the USA, Canada, the A UK, and all European accessibility and quality of classes. “We select one out education is top of the list. of every 35 candidates, and countries” Access to higher education they are the best of the is expected to increase to best,” Mr. Asghar shares. Junaid Zaidi 12% over the next decade, Just 24 years old, the uni- Founding Rector, COMSATS Institute while the number of PhD versity is often recognized of Information Technology holders in Pakistan will for the quality of its edu- more than double, from cation. Q/S Quacquarelli 7,000 to 15,000. Plans are Symonds, a UK-based development, and indeed also afoot to make vocation- ranking agency, recently bilateral cooperation in al training more responsive named NUST among the education is key to this to emerging technologies top 500 world universities. partnership. In June, it was and to the changing needs It is the only Pakistani uni- announced that four Paki- of the private sector. versity to be consistently stani and three U.S. univer- The prime minister’s placed on this list since sities would collaborate on plan, called Vision 2025, 2007. It is ranked among a research project called also calls for the promo- the top 120 universities in Center for Advanced Stud- tion of improvement in Asia, and among the top ies (CAS) in order to find the quality of science and 100 universities from 22 innovative solutions to wa- technology education, developing nations. ter, agriculture and energy two areas in which the COMSATS Institute of challenges for Pakistan. country’s educational in- Information Technology The United Stated Agen- stitutions are already quite is another higher educa- cy for International Devel- strong. Pakistan is among tion success in Pakistan. opment (USAID) and the the top 10 countries in the It opened in 2000 in Is- HEC are investing $127 mil- world for its number of lamabad with just 320 stu- lion in the project, which scientists and engineers, dents, but today has 40,000 will train about a thousand according to Engineer Mu- students and 3,500 faculty graduates in education, hammad Asghar, Rector of members across eight cam- business and governance by the National University of puses, with plans in devel- applying research solutions Science and Technology opment for starting a dis- in the water, power and ag- (NUST) in Islamabad. tance education program riculture sectors. Mr. Asghar gives much via a virtual campus. NUST will participate in of the credit to the Higher One of the institute’s ar- the energy department of Education Commission eas of focus is improving CAS, along with the Uni- (HEC), established in 2002. its professors’ education. versity of Engineering and “After its establishment, Around 1200 of its faculty Technology, Peshawar and HEC promoted the re- members have PhDs, and Arizona State University. search culture and valued the institute expects to Other participating univer- creativity. The research and one-day reach 6000 PhDs, sities include the University creativity which were never so it is turning to a global of Agriculture, Faisalabad given importance in the approach to educating its and the University of Cali- past have now become so faculty. According to Jun- fornia, Davis in the agricul- indispensable that one can- aid Zaidi, the Founder Rec- ture sector, while Mehran not survive in the university tor of COMSATS, “We are University of Engineering without it,” he says. “More- looking towards the devel- and Technology, Jamshoro over HEC emphasizes on oped and advanced coun- and the University of Utah the quality and relevance of tries to train our people, will collaborate on finding our education and believes either in Pakistan or in an solutions to challenges in in increasing the access advanced country like the the water sector. to education for all.” The USA, Canada, the UK, and Speaking about the commission, he adds, “be- all European countries.” U.S.-Pakistani education lieves in increasing access partnership, Mr Asghar to higher education… [the “[The Higher Education says, “Pakistan has been a rate] was 2.6% in 2002 and is Commission] believes longtime ally of the U.S. about 10% today of the uni- in increasing access to and that gave us the op- versity-aged population.” higher education… [the portunity to benefit from To date Pakistan has rate] was 2.6% in 2002 that educational system lagged behind regional and is about 10% today in the past. And we don’t peers in taking advantage of the university-aged have any second opinion of the new growth oppor- population” about USA’s education be- tunities created by techno- ing the best one. logical advances, particu- Muhammad Asghar, “Therefore, we would like larly in ICT. But many of Rector of the National University of to benefit from this leading the foundational factors are Science and Technology (NUST) system. We have visited U.S. in place now to seize the many a times and our obser- opportunity going forward. vation is that at the individ- Increased investment in While Mr. Zaidi recog- ual level, excluding politics, higher education has creat- nizes some of Pakistan’s cur- Americans are friendly and ed an opportunity to lever- rent limitations in its prod- very good human beings. age science and technology uct output, he knows that At the same time Pakistanis for a knowledge economy. higher education is the key also possess the same traits. As part of its vision, the to improvement: “We have Hence they study and work government aims that ev- started producing skilled together in a very conducive ery school, college and uni- graduates, and I am very op- environment. In engineer- versity will be digitized and timistic that in the next five ing and technology we fol- computerized by 2025. years, the situation will dra- low the U.S. system.” NUST is an example of matically change.” the success experienced by higher education institu- Partnerships tions in Pakistan in recent with U.S. institutions years. When Mr. Asghar The U.S. is partnering with became the rector eight Pakistan in number of ar- years ago, the student pop- eas to support its economic

Our World Insert is produced by United World. USA Today did not participate in its preparation and is not responsible for its content Distributed by USA TODAY Thursday, October 22, 2015 19 PAKISTAN Strong growth expected for leading industries Despite a challenging environment in the traditional industry sector, the pharmaceutical and technology sectors are emerging as strong growth drivers for the economy

Pakistan’s economy As people’s access to the in- has experienced ternet grows, in part due to the some significant is- increase of 3G/4G networks in sues in the recent Pakistan, the number of Paki- past, but thanks to stan’s dealers using the internet several factors, including gov- to reach buyers—and the num- ernment-ledP changes in pricing ber of buyers using the internet and taxes and increased inter- to find vehicles—should in- national investment, strong crease dramatically. This is one growth is expected in some way in which substantial finan- of the country’s leading in- cial industry growth could take dustries, including textiles, place if dealers and customers telecommunications, automo- are ready to take advantage of biles, and pharmaceuticals. this new sales avenue.

Textile Manufacturing Pharmaceutical Industry Textile manufacturing is Pakistan’s pharmaceutical in- the mainstay of Pakistan’s dustry is the world’s sixth larg- economy, which isn’t surpris- est, with a total market size ing considering the country Textiles is the mainstay of Pakistan’s economy Pakistan’s pharmaceuticals industry is the world’s sixth largest of PKR220 billion. It directly is the world’s fourth largest employs 70,000 people and producer of cotton, the third indirectly employs 150,000. largest yarn producer, and human resources and a low that the industry faces, with Textiles manufacturing process have been crossed, Though the sector’s workforce the third largest consumer employment rate of women the majority of members now generates billions of and now that companies own is significantly smaller than that of cotton. The value chain in the garment sector. from the private sector. Ad- dollars in economic the equipment and know how of the textile or automobile sec- in textiles is made up of 10 The industry does face chal- ditionally, for 2015-2016, the activity, a sum that has to use it, the market should tors, it is still able to meet 70% industrial sub-sectors, and lenges. Other countries, like custom duty assessed on eli- been increasing over continue to grow. Companies of Pakistan’s demand for phar- all of these sectors are in- Bangladesh, can earn greater gible textile machinery is zero, the last year or so. In in the industry can encour- maceutical products, in terms terdependent: the finished profits than Pakistan through which should enable business- August 2015, textile age this growth by showing of volume, by domestically pro- product from one sub-sector importing Pakistani cotton es to better afford purchases exports recorded double- consumers how to use smart- ducing analgesics, anti-depres- becomes the raw material for and then re-exporting it after that can increase or streamline digit growth of 11.24% phones and how the devices sants, herbal and homeopathic the next sub-sector. It begins processing it and making final their productions. compared to the same can improve their lives, while medicines, and penicillin. with cotton growth and pick- retail products. While farm- The Ministry of Textile In- time one year ago. remaining sensitive to con- Other needed pharmaceutical ing, then on to ginning, spin- ers in other countries have dustry also seeks to help via sumers’ economic concerns. products, such as cancer drugs, ning, weaving, knitting, pro- received subsidies, Pakistan’s initiatives that involve many are produced in other countries cessing, and stitching. farmers have not, which has government ministries and development and growth. It is Automobile Industry and then imported. The industry employs more resulted in distorted prices. divisions, including Finance, estimated that by December The automobile industry, The industry’s cumulative than 10 million people, which The sector also grapples with a Petroleum and Natural Re- 2016, there will be 40 million which employs around 3.5 annual growth rate has been is 40% of the industrial labor lack of skilled human resourc- sources, and Commerce. The smartphones in Pakistan. million people in Pakistan, is around 12% for the last three force, throughout the produc- es and a low employment rate Climate Change Division is Over two million users look experiencing long-overdue years, and this is likely to in- tion and processing stages. of women in the garment sec- working on helping cotton at purchasing a phone online growth. Part of this is due to crease due to several factors. It receives about 40% of the tor. Information technology is producers meet buyers’ desire each month, and cell phone interest rates. Auto loan rates Pakistan has a high rate of pop- banking credit extended to the under-utilized and inventory for “Better Cotton,” an initia- companies in Pakistan are are currently around 11% (an- ulation growth, with more than country’s manufacturing sec- control systems are generally tive that trains farmers to re- trying to capitalize on this. In nual), compared to the previ- 50% of its population under the tor. And textile manufacturing poor. Worldwide, the textile duce their use of pesticides, September, Google hosted ous high rate of 20%, so con- age of 19. The average life ex- accounts for around 8% of the industry’s focus is shifting water, and fertilizer. By 2020, Google’s Tech Mela, a 10-day sumers are more willing and pectancy is rising. In addition, country’s GDP and more than more towards manmade fi- 30% of the world’s consumed shopping festival that featured able to purchase vehicles. The the World Bank has approved 50% of its exports value. bers, rather than natural fibers, cotton will come from “Better many new cell phones and country’s overall economy is a loan for approximately $100 while Pakistan’s industry uses Cotton” farms, and Pakistan specials. Attendees could pur- another positive factor, as it is million for financing health In the first quarter of mainly cotton. wants its farmers to be among chase tablets, data bundles, at a seven-year high. reforms in the Punjab region, 2015, smartphones made Infrastructure is another those providers. and personal tracking devices. This optimism is reflected which should increase the up around 30% of all major area of concern, as it is Participating companies in- in sales figures. A study re- number of people who have ac- mobile devices shipped problematic or even absent in Telecom cluded Samsung, Microsoft, leased in June by Carmudi cess to quality health services. to Pakistan. This is up some areas. For example, in the Three years ago, 93% of all mo- Huawei, PTCL, Rivo, TPL showed that more than 58% of Healthcare spending overall from 25.3% in the fourth Punjab region, where around bile phones shipped to Paki- Trakker, Innjoo, Infinix, Intex, car dealers in the country saw is expected to increase from quarter of 2014, and 65% of the country’s indus- stan were feature phones, not Telenar, and Zong. an increase in sales in the pre- PKR521.91 billion in 2012 to from 14.7% in the first trial units are located, energy smartphones, as the country Pakistan’s leading vendor vious twelve-month period. PKR986.53 billion by 2017. quarter of 2014. supplies in the area are un- lacked the network needed to is QMobile, with a market Experts believe that around Perhaps most notably, the predictable. The physical and support smartphones, even share of around 58%. Nokia 165,000 vehicles will be sold government is finally allowing institutional infrastructures at though some users did own and Voice are the runners-up in 2015, which is close to the pharmaceutical companies to In addition, it generates bil- sea and dry ports need a over- them. The creation of 3G/4G at 17% and 5%, but many new amount sold in 2012. raise prices for the first time lions of dollars in economic haul. The legal infrastructure networks across the country vendors are coming into the Another sign of the in- since 2001, with the exception activity, a sum that has been is redundant in many places, has changed mobile phone market to take advantage of its dustry’s growth is in vehicle of certain medications whose increasing over the last year with numerous parallel and usage since then. In the first upswing. Huawei, for example, manufacturing. In April 2015, prices could be raised through or so. In August 2015, textile overlapping regulations that quarter of 2015, smartphones gained a 7% share of the market Yamaha Motor began build- a hardship allowance. The gov- exports recorded double-digit only increase production and made up around 30% of all in the first quarter of 2015 due ing motorcycles at its new ernment’s strict regulations of growth of 11.24% compared management costs. mobile devices shipped to to a buyer-pleasing balance be- facility in Bin Qasim, outside how prices can be raised and to the same time one year ago. The Pakistani government Pakistan. This is up from 25.3% tween features and pricing. Karachi; this is the first time to what degree, combined with While August 2014’s total was recognizes the many areas are in the fourth quarter of 2014, The telecom industry did in seven years that Yamaha Pakistan’s growing economy, $889 million, August 2015’s in need of improvement, and and from 14.7% in the first experience a setback fairly Motor has assembled motor- should keep prices in check so total was $1.02 billion, due to it has committed to building quarter of 2014. recently. The Pakistan Tele- cycles in Pakistan. that consumers can still pur- a substantial increase in pro- up the industry via its Textiles As of July 2015, there were communication Authority Globally, 80% of customers chase them while allowing phar- ceeds from cotton cloth, raw Policy 2014-19, which contains 14.6 million 3G and 4G mo- required that all SIM cards be looking for a new car and near- maceutical companies to re- cotton, bed linens, yarn, and a generous financial package bile users in Pakistan, but that biometrically reverified, in ly 100% of customers look- coup their production costs and ready-made garments. of PKR64.15 billion ($613 mil- is only about 10% of all mobile an effort to curb terrorism. ing for a used car begin their increase their profits. Thus, the The industry does face lion). The extensive policy has subscribers in the country. The Members of the telecom in- search online. In Pakistan, pharmaceutical industry offers challenges. Other countries, a few central elements that are mobile phone penetration rate dustry had to purchase equip- however, only 30% of buy- opportunities for both domestic like Bangladesh, can earn particularly noteworthy. Some is 75%, so one-quarter of the ment specifically for biometric ers use the internet to gather and international investors. greater profits than Pakistan of this money is set aside for country still has not purchased reverification, install it, and information before buying a through importing Pakistani workers’ skill development, any mobile device. Those who then use it to biometrically vehicle. The rate of internet Pakistan’s cotton and then re-export- textile exhibitions, and major already have a mobile device identify all SIM card activa- usage among sellers is lower: pharmaceutical ing it after processing it and textile awards. One of the pol- may still choose to purchase a tions through the National 25% of dealers have reported industry is the world’s making final retail products. icy’s goals is to double textiles smartphone to take advantage Database and Registration using websites to reach poten- sixth largest, with a While farmers in other coun- exports, boost exports to $26 of the new networks. This de- Authority’s database. They tial customers, while Facebook total market size of tries have received subsidies, billion, and create three million gree of market penetration, then passed these costs on to is used by about 17% of deal- Rs. 220 billion ($2.1 Pakistan’s farmers have not, more jobs by 2019. combined with the availability consumers, which resulted in ers. More car dealers prefer billion US). It directly which has resulted in dis- The Federal Textile Board of 3G and 4G networks, means a market slowdown. to advertise offline, mainly in employs 70,000 torted prices. The sector also has been restructured to better that Pakistan’s telecom industry However, the major hurdles newspapers, at a rate of about people and indirectly grapples with a lack of skilled address and resolve the issues stands to experience significant of the biometric reverification 42% of dealers. employs 150,000.

World-class hotels tell ‘the other side of the story’ Pakistan is not widely “Nothing but Pakistan” is are proud of their Cultural and known for its luxury Mr. Boolani’s mission state- Sports Diplomacy Initiatives tourism, but hotels such ment as well as his personal operating under the banner of as those owned by the motto. “As soon as you walk the Serena Environmental and Serena Hotel Group are into the lobby you see the Educational Development Pro- changing all that beautifully laid Pakistani mar- gram (SEED). The Initiatives ble and the wooden Mashra- aim to connect communities or far too long, Paki- bia, crafted by the Pakistani with each other. During their stan has been a vic- artisans. “The ceilings are ‘Spirit of Compassion’ cam- tim of what Mr. Aziz hand painted by Pakistani art- paign, Serena Hotels in Paki- Boolani calls “the ists. Our SerenArts Program stan contributed double the narrative” -- where showcases talented Pakistani amount of funds collected from the media does not depict the artist’s work and provides the restaurant’s guests and do- trueF reflection of the country. them with a platform to con- nated towards the relief efforts You almost never hear about nect with the right audiences.” for those affected by the coun- its cultural treasures, natural But the success of the lo- try’s monsoon floods in 2015. Mr. Aziz Boolani, CEO of Serena Hotels wonders, traditional hospi- cal approach is best reflected Serena Hotels are particu- South and Central Asia tality and steadily improving are located. We make sure A glance around the public in the personalized treatment larly proud of their role in macroeconomic indicators. that a stay with us is a pillar areas, guest rooms, terraced guests receive from hotel staff, forming the Adventure Diplo- ture Diplomacy Initiative set a Serena Hotels aim to project of our guests’ experience in gardens and grounds of the an aspect that has been widely macy Group (ADG), in which world record for Pakistan. a country making every effort Pakistan. What they see gets five-star Islamabad Serena praised in social media. The Serena Hotels and the Ambas- Located near the cool Mar- to secure the well-being of its registered in their minds and Hotel attests to the company’s Hotels have an extensive train- sadors of the United States of galla Hills adjacent to the diplo- people, adds Mr. Boolani, who when they get home they say participation in Pakistan’s ing and mentorship program America, Nepal, Indonesia, matic compound, the Islamabad as CEO of the Serena Hotels, ‘I had this great experience cultural outreach initiatives. for all associates aimed at in- the Russian Federation and Serena Hotel offers a full range South and Central Asia wants in Pakistan’ or ‘The people The eye is held entranced by creasing and honing their skill the Argentine Republic, spon- of spas, fitness centers, banquet to make sure the other side of were fantastic’. Our Hotels’ its Islamic-inspired architec- set. These training programs sored the young Pakistani halls, meeting and conference the story gets told. interiors and operating style ture, the opulent detail of its also have important benefits climber Samina Ali Baig, in facilities that draw on state of the “Serena Hotels’ philosophy also reflect and transmit lo- lacquered furniture and deco- for local communities. her bid to become the first fe- art technology, not to mention is to promote and project the cal traditions and culture; rative screens, all the work Corporate social responsi- male mountaineer to reach the nine different outlets special- cultural values and heritage this makes us different from of traditional craftsmen and bility is high on Serena Hotels seven highest summits on the izing in Asian, Middle Eastern of the countries where they other hotel chains.” skilled artisans. list of priorities, and the Hotels seven continents. The Adven- and Continental cuisines.

Our World Insert is produced by United World. USA Today did not participate in its preparation and is not responsible for its content 20 Thursday, October 22, 2015 Distributed by USA TODAY PAKISTAN

Our World Insert is produced by United World. USA Today did not participate in its preparation and is not responsible for its content