A Country StudyA Country Study

Good Morning Good Morning Ladies and GentlemenLadies and Gentlemen

Nabeel AhmadNabeel Ahmad

AndAnd

Umer HussainUmer Hussain

Stay Stay

RelaxRelax

&&

FocusedFocused

What Pakistan has got today?What Pakistan has got today?

Strategic Location Of Strategic Location Of PakistanPakistan

A glimpse of glorious history…..A glimpse of glorious history…..

average economic growth rate after average economic growth rate after independence was higher than the average independence was higher than the average growth rate of the world economygrowth rate of the world economy

6.8% in the 1960s6.8% in the 1960s

4.8% in the 1970s4.8% in the 1970s

6.5% in the 1980s 6.5% in the 1980s

fell to 4.6% in the 1990sfell to 4.6% in the 1990s

Average annual GDP Average annual GDP growth ratesgrowth rates

During the 1960s, Pakistan was seen as a During the 1960s, Pakistan was seen as a model of economic development around the model of economic development around the worldworld

Korea South Copied Strategic economic planKorea South Copied Strategic economic plan

World Financial Center in Seoul is designed World Financial Center in Seoul is designed and modeled after Karachiand modeled after Karachi

Pakistan Became Role Pakistan Became Role ModelModel

Economy went downEconomy went down

Debts continued to increaseDebts continued to increase

Terrorism startedTerrorism started

Law and order became worstLaw and order became worst

Then came the down Then came the down fallfall

729 billion rupees flight capital729 billion rupees flight capital

Current reserves of Pakistan which State bank of Current reserves of Pakistan which State bank of Pakistan have are 7 Billion dollars.Pakistan have are 7 Billion dollars.

GDP growth 3.2 GDP growth 3.2

(Less than some poor african countries)(Less than some poor african countries)

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National Costs of Load National Costs of Load SheddingShedding

Cost to the Industrial SectorCost to the Industrial Sector Rs 157 billionRs 157 billion

Cost to the other sectors of industrialCost to the other sectors of industrial

loss of Value Addedloss of Value Added Rs 53 billionRs 53 billion

Total cost of industrial load sheddingTotal cost of industrial load shedding

to the economyto the economy Rs 219 billionRs 219 billion

Cost as percentage of GDPCost as percentage of GDP 2 %2 %

Loss of employment in the economyLoss of employment in the economy 400,000400,000

Loss of exportsLoss of exports Rs 75 billionRs 75 billion

(equivalent to US $ 1 billion)(equivalent to US $ 1 billion)Source: IPP estimates listed in Beacon House National University publication: State of the Economy – Emerging from Crisis 2008Source: IPP estimates listed in Beacon House National University publication: State of the Economy – Emerging from Crisis 2008

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ECONOMIC IMPACT DUE TO ENERGY DEFICITECONOMIC IMPACT DUE TO ENERGY DEFICIT

For firms with self generationFor firms with self generation

Additional cost of Power self GenerationAdditional cost of Power self Generation Rs 32 billionRs 32 billion

Value Added LossValue Added Loss Rs 42 billionRs 42 billion

Total CostTotal Cost Rs 74 billionRs 74 billion

For firms without self generationFor firms without self generation

Additional cost of Power self GenerationAdditional cost of Power self Generation Rs 6 billionRs 6 billion

Value Added LossValue Added Loss Rs 77 billionRs 77 billion

Total CostTotal Cost Rs 83 billionRs 83 billion

Overall Cost to the Industrial SectorOverall Cost to the Industrial Sector Rs 157 billion Rs 157 billion

Cost as % of Industrial value addedCost as % of Industrial value added 9%9%

Percentage loss of ProductionPercentage loss of Production 7%7%

Loss of industrial EmploymentLoss of industrial Employment 300,000 workers300,000 workers

Source: IPP estimates listed in Beacon House National University publication: State of the Economy – Emerging from Crisis 2008Source: IPP estimates listed in Beacon House National University publication: State of the Economy – Emerging from Crisis 2008

Rank County Name Rank County Name

1 1 Colombia Colombia

22 Israel Israel

33 Pakistan Pakistan

44 United States United States

Likelihood Of Likelihood Of Terrorist Attack Terrorist Attack

Pakistan started to sufferPakistan started to suffer

But……….But……….

So, Sit back and So, Sit back and watchwatch

We still are having worlds We still are having worlds greatest resourcesgreatest resources

Umer HussainUmer Hussain

RankRank CountryCountry

11 ChinaChina

2 2 IndiaIndia

3 3 USAUSA

4 4 PakistanPakistan

Cotton productionCotton production

RankRank CountryCountry

11 EUEU

2 2 ChinaChina

3 3 IndiaIndia

7 7 PakistanPakistan

Wheat productionWheat production

WheatWheat Wheat is the most Wheat is the most

popular cash crop of popular cash crop of Pakistan.Pakistan.

We use wheat and its We use wheat and its products in a number of products in a number of ways.ways.

RankRank CountryCountry

11 ChinaChina

2 2 IndiaIndia

3 3 IndonesiaIndonesia

11 11 PakistanPakistan

Rice ProductionRice Production

RiceRice Rice holds an important Rice holds an important

position among the cash position among the cash crops of Pakistan.crops of Pakistan.

It fulfills the food It fulfills the food requirements of our requirements of our country but we also earn country but we also earn a lot of foreign exchange a lot of foreign exchange from its export.from its export.

Besides it is an Besides it is an important raw material important raw material for manufacturing grain for manufacturing grain as well as its husk is also as well as its husk is also used as fodder for cattle. used as fodder for cattle.

RankRank CountryCountry

11 ChinaChina

2 2 IndiaIndia

3 3 IndonesiaIndonesia

5 5 PakistanPakistan

Sugar cane ProductionSugar cane Production

SugarcaneSugarcane

CropsCrops The most important The most important

crops are wheat, crops are wheat, sugarcane, cotton, and sugarcane, cotton, and rice.rice.

Pakistan's largest food Pakistan's largest food crop is wheat.crop is wheat.

Pakistan exports rice, Pakistan exports rice, cotton, fish, fruits cotton, fish, fruits (especially Oranges and (especially Oranges and Mangoes), and Mangoes), and vegetables, wheat, vegetables, wheat, cotton, pulses and cotton, pulses and consumer foods.consumer foods.

LivestockLivestock

The livestock sector The livestock sector contributes about half of contributes about half of the value added in the the value added in the agriculture sector, agriculture sector, amounting to nearly 11 amounting to nearly 11 per cent of Pakistan's per cent of Pakistan's GDP.GDP.

The world's fifth largest The world's fifth largest milk producing country milk producing country and Asia’s largest camel and Asia’s largest camel market.market.

FishingFishing

Fishery and fishing Fishery and fishing industry plays an industry plays an important role in the important role in the national economy of national economy of Pakistan.Pakistan.

With a coastline of With a coastline of about 814 km, Pakistan about 814 km, Pakistan has enough fishery has enough fishery resources that remain to resources that remain to be fully developed. It is be fully developed. It is also a major source of also a major source of export earning.export earning.

Pakistan’s Coal ReservesPakistan’s Coal Reserves

SindhSindh186.560 billion 186.560 billion

tonnestonnesThar 175 billion Thar 175 billion

tonnestonnes

PunjabPunjab235 million tonnes235 million tonnes

BalochistanBalochistan217 million tonnes217 million tonnes

KPKP90 million tonnes90 million tonnes

Azad KashmirAzad Kashmir9 million tonnes9 million tonnes

TharThar

30www.sindhcoal.gos.pk

Coal Used in Electricity Generation & Lignite ReservesCoal Used in Electricity Generation & Lignite Reserves% age of

Electricity Generated from

Coal

Lignite Reserves Billion tonnes

South Africa 94 30.15*

Poland 93 1.37

China 81 18.6

Australia 76 37.2

Israel 71 -

Kazakhstan 70 12.1

India 68 4.5

Czech Republic 62 0.98

Morocco 57 -

Greece 55 3.02

USA 49 30.16

Germany 49 40.6

World Average 41 195.38

Pakistan 0.1 186.2*** Sub bituminous & Anthracite reserves only** Thar Coal Resources are 175 billion tonnes Proven Reserve in 9 explored Blocks alone is 20 billion tonnes

( Source,2008, IEA)31www.sindhcoal.gos.pk

World 29World 29thth largest gas reserves largest gas reserves

5353rdrd largest Oil reserves largest Oil reserves

Oil & Gas reservesOil & Gas reserves

Gawadar portGawadar port

Backbone of Pakistan Backbone of Pakistan

A CHROMITE MINE AT A CHROMITE MINE AT CHAGAICHAGAI

A LIMESTONE MINE IN A LIMESTONE MINE IN POTOHAR PLATEAUPOTOHAR PLATEAU

Thar COAL Thar COAL

Incentives for Thar Coal DevelopmentIncentives for Thar Coal Development

Zero percent Zero percent customs dutiescustoms duties on import of coal mining equipment on import of coal mining equipment and machinery including vehicles for site use.and machinery including vehicles for site use.

ExemptionExemption on withholding tax to shareholders on dividend for initial on withholding tax to shareholders on dividend for initial 30 years.30 years.

Exemption on withholding tax on procurement of goods and Exemption on withholding tax on procurement of goods and services during project construction and operations.services during project construction and operations.

Exemption for 30 years on other levies including special excise duty, Exemption for 30 years on other levies including special excise duty, federal excise duty, federal excise duty,

37www.sindhcoal.gos.pk

A COPPER MINE IN PAKISTANA COPPER MINE IN PAKISTAN

Tourism Sector Tourism Sector

Many Countries Gain Many Countries Gain

66thth largest Armed forces, with latest technology largest Armed forces, with latest technology in hand.in hand.

And our pride…….And our pride…….

With all these things in our hand if we say we With all these things in our hand if we say we are a failure state then we are totally are a failure state then we are totally

WrongWrong

Leader requiredLeader required

Pakistan Is Not A Poor Country But Poorly Pakistan Is Not A Poor Country But Poorly Manage.Manage.

By World Bank CEO By World Bank CEO

If we still see deeply, nothing is lost.If we still see deeply, nothing is lost.

Some thing which is missing isSome thing which is missing is

leadershipleadership

Our Research was done on:www.pak.gov.pkhttps://www.cia.gov/library/publications/the-world-factbook/geos/pk.html