Archive for the ‘Economy/Business’ Category

It is the Stock Exchange for the time being

Yesterday’s situation in Pakistan’s stock exchanges was no different from each day during the last four months that saw the markets plunge consistently resulting in the main Karachi bourse losing more than 30% of its value.

LSE protests
Protestors burning tires outside the LSE - Daily Times

Angry small investors went on rampage in the Karachi Stock Exchange demanding the closure of market for a few days to curb its slide. Scenes were a bit calmer in Lahore where a crowd protested outside the Lahore Stock Exchange building by burning tires and shouting slogans against the regulators and the big players.

This grim situation follows the failure of the new coalition government in tackling rising food & oil prices, electricity shortages and burgeoning trade & budget deficits triggering mindless inflation and depreciating the Pakistani Rupee to record lows against the US Dollar.

All this is happening when the country is facing a huge security threat on its western borders from the militants and NATO forces as its cities are no better safe from street-crimes, robberies and bomb blasts. Amidst all this lawlessness and chaos, our leaders seem to be least concerned when they are visiting their ‘families’ abroad leaving no person of strength and character in authority behind in the country.

I’ve never beeen pessimistic about my country’s situation but this has to be sorted. People in authority need, I repeat, desperately need to become serious in tackling the country’s problems. People in the north-west are Pakistanis, they need to be heard not bombarded upon; Balochistan deserves its gas-royalties and Sui itself should be supplied with gas; Thar coal should be exploited to create a mega-pool of electricity supply which can provide at least 20,000 MW of electricity by using only 2% of the reserves over the next 20 years.

Forget the judges, forget the president, yes, I mean it! Focus on the core issues, the main problems of the masses and the industrialists alike for poverty can only be elevated if industry flourishes.

Bring peace, bring food, bring prosperity, bring unity - only this is what has elected you guys to the seats of power and the failure in bringing what will pull you down. We have seen the violence at the Stock Exchanges; I’m afraid it’s not that hard to imagine when it comes to the streets soon…

Can we solve the energy crisis?

The sleepless nights and disruption to daily routine through load-shedding has come to be known as business as usual in Pakistan. Over the years however, the realms of what is normal in terms of duration has been pushed to the limit with the country experiencing up to 10-hour electricity and gas load-shedding - an unprecedented level. My sympathies go out to the people who have to bear this experience alongside soaring mercury levels (up to 50 degrees celsius). Thanks to a series of broken promises and sheer mismanagement by the rulers, there doesn’t seem to be any short term solution nor a long term commitment to solve this problem.

It doesn’t take much to conclude that the existing scenario is essentially due to some of the following factors (in no particular order):

1. Uncontrolled population explosion
2. Rising Middle Class with more energy needs
3. Unchanged power infrastructure
4. Inefficient management of power authorities
5. Lack of vision and investment by the Government

Add to the above a consistently unstable political framework and massive levels of illiteracy, any solution not only seems very daunting but downright impossible for the next few years. So what can be done to break this vicious (and self-sustaining) cycle. Considering the indispensability of energy to the future growth needs of the country, a clear vision and plan needs to be drawn up and an unwavering commitment by people and rulers to the process of rolling out the goods regardless of political affiliation.

Based on geological analysis, it is evident that the most pragmatic and sustainable solutions would involve adding multi giga-watt capacity through coal and hydropower based projects. According to research, Pakistan sits on top of the world’s 8th largest reserves of coal and is also home to one of the most extensive natural river systems. Despite the fact that there is widespread agreement on the basis of these two options, progress has been slow and even stalled due to lack of commitment at all levels of government. I would like to draw a distinction here between financial and political ability. It is fair to assume that if a nation wide motor-ways and a new port city (Gwadar) can be built, so too can more dams, power plants and coal exploration be funded by the same government.

Another less talked-about aspect of power generation is solar and wind energy. It is clear that the world’s appetite for non-renewable sources such as crude oil, coal and gas is set to diminish over the next 50 years as some of the world’s largest deposits show signs of depletion. At the same time, there is a shift towards renewable energy sources such as solar, wind and water with great advancements in the development and distribution of infrastructure. Pakistan could seize an opportunity in the current crisis by investing in solar and wind energy farms. With one of the most sunniest outlooks in the world, the plains of Punjab and Sindh could house industrial-scale solar farms or subsidise the technology for distribution at domestic level to help increase self-sufficiency. The coastal regions of Sindh and Baluchistan could be utilised for off-shore wind farms which would not only provide additional capacity but also result in thousands of jobs for locals across the coastal regions.

All the above options seem quite plausible in the case of Pakistan and given some political will, might even get to see the light of day. But what can we do to stop the crisis from further deterioration and provide some ways to survive this summer? The solution lies in a collective national effort.

It is clear that consumption habits of consumers across Pakistan are grossly inefficient. Leaving lights and home appliances on even when they are not being used is a common practice across our homes. Similarly, many businesses such as small retail outlets use excessive lighting. It is commonly observed that shops that could do with a few energy efficient lights to meet the desired level of luminance use as many as 15 to 20 tube lights. Not only does this increase power consumption, it also generates heat and creates a need to purchase even more power hungry cooling appliances such as ACs. The inefficient consumption trend simply runs across all domestic, industrial, trade and commercial sectors. It is crucial that there is an immediate collective national-level effort to stop this misuse of energy.

So what can be done to buck the current trend? With minimal effort, well over ten percent of the overall consumption can be saved by simply changing our attitudes. The people of Pakistan need to acknowledge that the country is faced with an acute energy crisis which requires a national-level effort to overcome it. Together we must draw a distinction between electrical necessities and luxuries. There is simply insufficient levels of energy to fuel both aspects.

There is real potential to avert a real disaster by simply promoting conservation and meet almost half of the energy deficit. To ensure success, public awareness is essential. With the help of effective electronic and print media campaigns the government can quickly educate the masses on the necessary steps.

Unfortunately, we will have to compromise on luxury in order to meet the necessities. Commercial establishments can substantially reduce their power consumption by changing their working hours. An early start and early end to maximise daylight ought to be adopted as opposed to afternoon until late at night hours. AC usage must be dropped to a minimum.

The AC has long been associated in Pakistan with higher social class and with a sign of a luxurious lifestyle. It is probably a fact that rising middle class’s demand for ACS finally broke the proverbial camel’s back. At the current AC consumption trends, we will probably have to stare at the silent ACs with no power as there will be no electricity left for anyone to run them. So let’s stop the use of ACs and grab the good old fan and mosquito net and take in the pleasure of sleeping on the roof. Oh and the beauty of the celestial setting will truly take away any worries of heat. On a personal note, some of my most memorable nights in Lahore have been under the sky during cloudless summer nights.

To conclude, there is no denying the fact that probably the whole world is faced with a form of energy crisis. Energy is scarce and is becoming increasingly dear. The power to harness and conserve energy is in the hands of the people of each nation - In our case, all Pakistanis.

I call on the educated and ruling elite to lead by example and convince the poor and common man that charity indeed starts at home. The masses will take on the idea when they see that the rulers practice what they preach and will play an equal role in changing the status quo.

Hopefully projects such as Dams, Wind, Nuclear and Solar farms will eventually see the light of day. But until then, it is the simple solutions that could potentially save us from a slow and painful process of suffering.

CDGL’s Operation Cleanup

City District Government Lahore (CDGL) is finally taking an effective step against encroachers on main commercial streets in the city starting with demolition of illegal extensions of gas and fuel stations on Thokar Niaz Baig and removing encroachments on both sides of Multan Road.

CDGL’s Operation Cleanup - 2

CDGL’s Operation Cleanup - 1

This bold step has been undertaken in presence of LDA (Lahore Development Authority), LESCO (Lahore Electric Supply Company) representatives and officials belonging to the related law-enforcing agencies.

Regulation and proper implementation of property laws and strict action against offenders regardless of their status are initiatives that are so very good for the commuters, business owners and ultimately the annoyed residents of the affected localities and their surrounding areas.

Unfair or just competition in another LIGHT!??

The Cavalary crossing that leads to Cantt on one side and Defence Housing Authority on the other flaunts few of the largest sites available for outdoor advertising. No brownie points for guessing that two of the leading telcos have captured these sites and using them for their advantage to its max. However on a regular basis for at least the past few weeks (if not months for sure) Every evening, the Warid billboard is dark as the night itself whereas the Mobilink one is shining like a golden sun.

 daytime     night time

Is this a deliberate move by the golden sun or is night descending on the brand team of the other player? (Comments are welcome, what do you think?)

PIA’s Gola Project

PIA’s Gola Project

Looks like now they are raising capital from selling ‘Golas’ outside girls colleges in Lahore to recover from soaring budget deficits at the Pakistan International Airlines.

Why is ‘Aata’ now available?

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And they say it was an artificial crisis caused by smuggling of wheat to Afghanistan, Central Asia; fueled by evil intentions of the stockists; worsened by unplanned exports by the government; and hyped by bulk consumer purchases…

What factor do you blame the most?

Startup Insiders ~ Nourishing Young Entrepreneurs

Experiences, insights, thoughts and ideas were shared in abundance at the 6th Startup Insiders session held on February 24 at the LUMS campus.

With quite an active, participating and respectably patient audience, though limited to almost 50 individuals, the session took off in high spirits and was able to maintain it throughout.

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Main topic of discussion was ‘the ways of finding, identifying and targeting the right customer’ as an entrepreneur specifically in the Information Technology industry which was very intelligently moderated by Jehan Ara [President, P@SHA] and Jawwad Farid [CEO, Alchemy Technologies].

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Everyone benefited from listening to and questioning some of Pakistan’s most promising IT entrepreneurs including Zafar Khan [Sofizar]; Faisal Qureshi [Kolachi Advanced Technologies]; Fahd Bangash [Amaana]; Zia Imran [Vahzay]; Umar Saif [BumpIn; Chopaal] and Jawwad himself. Almost all of these people started off with just a few individuals and have tasted success of varying degrees.

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The most refreshing aspect of the session was the desire as expressed by all panelists to help and guide people who really want to break barriers and are striving to make a mark for themselves and their country. It was very heartening to see these people actually willing to share and spread their success among promising stars of the future.

Using LinkedIn

I recently signed up on LinkedIn, which is, and I quote:

LinkedIn is an online network of more than 19 million experienced professionals from around the world, representing 150 industries.

When you join, you create a profile that summarizes your professional accomplishments. Your profile helps you find and be found by former colleagues, clients, and partners. You can add more connections by inviting trusted contacts to join LinkedIn and connect to you

Although the Internet is part and parcel of daily lives of millions in first world, developed countries, it still has to make deep impact on countries like ours. But Lahore is a modern city to say the least and a lot of people are now not only Internet-savvy but visit blogs like this one to get their news, have their own blogs to communicate/vent/rant their opinions and have their company websites to fully market their business.

I have only started using LinkedIn, and would recommend all of our visitors to use this service to not only expand their ‘network’ but to make friends across their industry worldwide.

The city of footballs takes off

Sialkot, situated almost half the way to Islamabad from Lahore, is a city famous for exporting world class sports goods (read footballs), utensils and surgical instruments. Despite of its high industrial and economic status, the city pathetically lacks decent accomodation or hotels, and good logistics links with the rest of the country. But everything is going to change for the good now.

With a new Rs.40 billion Motorway link between Lahore and Sialkot in the planning stages, the city already has an international airport now.

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Last year, the people of Sialkot made history by building the first privately owned airport in the country. SIAL by every mean and measure is the largest privately sponsored infrastructure project in Pakistan and speaks for the marvels industry investments into society can bring.

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Pakistan International Airlines (PIA) started its first scheduled service off Sialkot on November 30, 2007 and from February 15, 2008, Sialkot has been brought online on PIA’s international service with weekly flights to Kuwait. Plans for a regular international cargo service are in the final stages too.

This indeed is great news for the people of Sialkot while for Lahoris, it gives us access to the facility of Pakistan’s longest runway (welcoming prospective arrival of the A380 in Pakistan) just on a two hours drive.

LMB congratulates the people of Sialkot for showing us all how citizens can make real difference and benefit from unity of economic and social strength.

Precautions with Fireworks

Shaadi (wedding) season in Lahore is in full swing these days for which winter months of November, December, January and February are considered as ideal. And in traditional Pakistani weddings, aatish-baazi (fireworks display) is an essential component for Baraats (groom’s arrival at the bride’s home). Crackers and Shurlees are fired as an expression of celebration and happiness for the two families tying the knot while children can’t resist playing with crackers, and bang-pranks of every kind.

Fireworks depict merry moments, however, if played with carelessness, can turn celebration into tragedy. Many a times we hear about things going wrong when some mischief related to fireworks causes fire and results in loss of property, in some cases, even precious lives.

Everyone is advised to practice caution and play it safe with fireworks. Keep children away from firing crackers alone, without an adult’s supervision and store the material in a safe and proper way. Just zooming through DT’s website and I found these useful tips to keep one safe from fire hazards:

* Plan your firework display in advance to make it safe and enjoyable

* Keep fireworks in a closed box and use them one at a time

* Read the instructions on each firework carefully

* Keep flames, including cigarettes, away from fireworks except when ready to set them off

* Light the firework at arm’s length with a taper and stand well back

* Never go back to a firework once it has been lit, even if it doesn’t go off

* Don’t put fireworks in your pockets and never throw them

* Point all rocket fireworks well away from spectators

* Never use paraffin or petrol on a bonfire

* Make sure that the fire is out and surroundings are made safe before leaving

In Pakistan, and specifically in Lahore, most of the fireworks are either imported or smuggled in from India and China while many in this business operate without adopting any safety measures threatening safety of the people at the facility as well as to those using these.

Government, on and off takes a tough stand against illegal manufacturers of unsafe fireworks related products just like today the City District Government of Lahore is cracking down on such elements through-out the city.

If you have such illegal businesses operating in your neighbourhood, report them immediately to the police or to the City District Government officials.

Live and let live safely!

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