Fish export

Exports of fish and fish preparations of Pakistan increased by 16.5% 

during the first half of the current fiscal year.

The exports of fish and fish preparations were recorded at $153million 

during July-December 2011as against the exports of $131.941 million 

during July-December 2010, Pakistan Bureau of Statistics  reported.

In terms of quantity, the fish exports during period under review increased 

by 6% from 57,044 metric tons last year to 60,536 metric tons during this year, the data revealed.

On the other hand, the exports of fish increased by 20.4% during

 December 2011 as compared to the same month of the last fiscal year.

Foreign investment

Foreign direct investment(FDI) fell by 27.1 percent from $2150.80 millions in FY10 to $1573.90 millions in FY 11.

There was a decline of 17.2 percent in its value, with the investment falling from $109.80 millions in July 2011 to $90.90 millions in July ,2012.

This does not only hamper GDP growth and employment generation in the country, but also has a battering on the balance of payment which is a big problem for the govt . BOP problem  also exerts pressure on rupee dollar parity.


Law and order situation was main reason but law and order situation has improved somewhat especially on war on terror attacks and suicide bombing. Currently power crisis has taken a big toll on FDI.

Production of steel

As economic growth slow down globally has also impacted  steel industry heavily.

Managing excess capacity in the face of a persistent gap between demand and supply is fast becoming an existential threat for many of the biggest players in the steel industry worldwide.

According to the Global Steel Report released by Ernst and Young, the world  production overcapacity of steelmakers at the beginning of 2012 stood at 493 million tons/annum.

The report of the Ernst and Young adds that since 2001, the global production of steel has grown at an average rate of 6% and over the same period the consumption grew by an average of 5.5 only.

The steel industry is also threatened by the rise in raw material prices, retardation of economic activity in the West and lack of operational agility.

Over the past few decades steel makers enjoyed purchasing power over raw material suppliers.They also had been setting prices for distributors but now the tides have turned on steel manufacturers and purchasing power has shifted to raw material suppliers of iron ore.

As a result, prices of key inputs such as iron ore and coking coal have spiked; corroding the erstwhile high margins pocketed by steel manufacturers.

Being capital intensive business, the industry cannot quickly adjust to the changes in change in demand patterns.
Steel makers inability to make timely operational changes in certain segments means they are stuck with substantial costs that are likely to persist for some time.

Steel makers should broaden product offerings and focus on profitable segments by going for niche markets and focusing on higher margin products.

The focus of POSCO and U.S steel on Advanced High Strength Steel (AHSS) is an example of specific niche market targeting.

In emerging economies the focus should be on steel used in building infrastructure.

The report also focuses on optimisation of capital, especially since almost about 94% of the financing faced by the steel industry is from debt.

Kino export

Kino is one of main fruits that are exported to earn precious foreign exchange.
Since the start of Kino harvest season in November 2011 so far fruit exporters of the fruit estimate that exports are at about 100,000 tons.

"At this pace, we are very unlikely to export 300,000 tons of Kinnows by March,2012" laments Mr. Ahmed ,a leading exporter.

The sudden turn of events for the worst in Iran especially on borders is not the only worry for Kino exporters.

The sector has been eyeing negotiations between the Federal Government and its counterparts in Indonesia over a PTA in hopes of re-entering that market with a good bang.

Although Pakistani exporters had found a lucrative market in that country, a Free Trade Agreement between Indonesia and China has left Pakistani fruit exporters uncompetitive there.

Although govt has repeatedly extolled plans to sign a PTA with Indonesia, the said deal is yet to be inked.

Federal Commerce Minister Amin Fahim is expected in Indonesia soon for this purpose.

For fruit exporters and growers, the promise of a broader market lies in the balance.

Cars production

Pakistan’s auto industry believes that govt should discourage import of used cars and other used vehicles by amending the existing liberal used cars policy to safeguard the interest of the local auto industry and vendor industry employing about 400,000 people directly and 2,000,000 indirectly. 

The industry estimates that Pakistan’s local auto industry is likely to see increase demand of locally produced cars from 184000 units in the year 2011-12 to 222000 units in 2013, 259000 units in 2014, 293000 units in 2015, 323000 units in 2016 and about 349000 units in 2017. In case the government revises its used cars policy, than there would be more tax collection on sale of increased new cars, there would be more job opportunities in auto assembly as well as vender industry, improved policy would help attract more investors in sector and all this would help reduce the dependence on import by spending precious foreign exchange which are already under pressure. 

The auto maufacturers wants reversal of the used cars policy and allowing only 3 years old and used cars instead of existing 5 years old and bringing depreciation to 1%/annum from existing 2%. 
The industry also demands that registration of used car should remain in the name of overseas Pakistanis on whose name used car have been imported. Otherwise, government should collect tax on registration of such car on any other name instead of overseas Pakistani on whose papers such car was imported. 

As per industry data released, some 13,000 used cars and other vehicles were imported during fiscal 07-08 and when policy was tightened during  08-09 this import dropped to 7,000 and 4000 in 09-10 and just 7000 units in the fiscal 10-11.