MESSAGEpgbf.com.pk/assets/user_assets/pdf-publications/2014/July...MESSAGE Contents Published by Pakistan German Business Forum in cooperation with the German Consulate General Karachi

MESSAGEContents

Published by Pakistan German Business Forum in cooperation with the German Consulate General Karachi.

n Message ofDr. Tilo Klinner,Federal Republic of Germany to Paistan

n Message of Mr. Nadeem Kazmi,Board Director

n Board of Directors

2. Articles n

•Dr. Poetis (Econimic Cooperationbetween Germany and Pakistan

•Mr. Yasin Siddiq (Impact of GSP)plus

•Mr. Kalim Farooqi

•Dr. Farhan (Pakistan-China Tradeties and its impact on Pak’sEconomy)

•Dr. Samina Khalid (FDI and Exportsof Pakistan)

•Tourism in Pakistan

•Salient Features of Budget 2014

3. Events n

•Farewell of Mr. Qazi Sajid

•Cultural Events at Goethe Institute

•Consulting House Event

•German Business delegation

•Trade Fairs in Germany

•Trade Fairs in Pakistan

4. Visit n

•Dr. Nun visit to PGBF

5. From the press n

•Interview of Mr. Qazi Sajid-Ali, BASF

6. Trade Fairs in Germanyand Pakistan n

•Messe Berlin

•Messe Frankfurt

•Karachi

7. Tourism in Pakistan n

8. Advertisementrequest form n

GPTI Ñ PGBF TWO TWIN ORGANIZATIONSON THE WAY TO SUCCESS

he fiscal year 2013/2014 was a year of unprecedented success for thePakistan German Business Forum. Its overall membership grew by 27,5 %to 232 members. Especially remarkable is the increase of corporate memberswhich has more than doubled in the last year. The income of the PGBF has

more than tripled. The additional funds were generated from membership fees,advertisement, from our business delegation in October 2013 and from profit oninvestments.

Also the internal organization of the PGBF has made remarkable progress. Administrativeprocesses have been streamlined. Proper records and files are kept. A new format ofminutes has been introduced in order to ensure full implementation of the board¥s decisions.

On the 20th of June 2014 a long-hoped for moment took place. At the premises ofPGBF in Zamzama the new service organization ìGerman Pakistan Trade and Investmentîwas launched. At its constituent session the terms of reference for the future set-upwere agreed upon. GPTI will be a service provider offering a menu of business-relatedproducts comparable to the one which are marketed by the bilateral chambers ofcommerce under the brand DE International. Since the inception of the project I wasfrequently asked why we should have two organizations instead of one. A pertinentquestion, but one with a clear answer. A forum like the PGBF is run by a board ofdirectors which is its main coordinating body. It does not have a CEO and employs onlya work-force for its own administrative purposes. As a corporate-like organization andservice provider GPTI has a different structure. It is headed by a CEO, hiring permanentand temporary staff according to its work load and aims to be financially self-sustaining.

According to the agreed division of labor PGBF will continue to work as the umbrella organizationfor companies involved in German-Pakistan business relations. PGBF will continue to representits membership dealing with political, administrative and economic decision makers. The forumwill be the platform which aggregates its memberís interests as a lobby organization. It willbe the nodal point for alliances with other business organizations, the competence center forevents and the main instrument for networking between its members.

The outlined twin structure shall also be emulated at the Northern Chapter in Lahoreand may be at a later stage expanded to Islamabad, Faisalabad and Sialkot.

Above all it is important to understand that GPTI and PGBF are indivisible. They are twosides of the same coin, committed to the same set of objectives and ideals. Why do Iemphasize this point so strongly? Because I felt that parts of the membership of PGBFwere insecure about the future of the two entities. Somehow the mood was quite similarto the atmosphere prevailing in Germany 1989 after the fall of the Berlin Wall. An objectivewe all had worked for over many years suddenly appeared to be imminent causing amongstsome members uncertainties about their role in the future set-up. But skepticism is outof place. Nobody should feel faint-hearted and everybody may rest assured that he willreceive more added-value from the combination of both organizations.

Where are we heading to? PGBF and GPTI are precursors of the future chamber organization.Once the CE service component is fully established both organizations will be merged. Theunified organizations will form two pillars of a bilateral chamber of commerce.

A third pillar of our network is about to be established in Germany. Together with the HonoraryConsul of Pakistan in Munich Dr. Poetis and with the ambassador of Pakistan in Germany,Syed Hasan Javeed, we want to launch at the end of August 2014 a German-PakistanBusiness Association. Its main task is to unite German and Pakistani companies operatingon German soil and doing business with Pakistan. This association will be our main platformfor business delegations to Pakistan and Pakistan-related events in Germany.

This will complete the network of Pakistan German business organizations. Let us forgeahead with confidence and courage completing a journey which the PGBF began in 1997.

MESSAGED r . K l i n n e r

The GSP+ is granted to thosecountries that ratify and implementinternational conventions relating

to human and labour rights,environment and good

governance. Roughly 20% ofPakistani exports now enter theEU without any tariff, while 70%

percent are exported atpreferential rates. In previous

years, custom duties for theseproducts ranged from 3.2%

(cotton yarn) to 9.6% (textile made-ups). However, no product may

exceed the 6% import ceiling setby the EU. This status will be in

effect until 2017.

00July 2014 .de.pkPublished by Pakistan German Business Forum in cooperation with the German Consulate General Karachi.

T

ear Member,

It gives me great pleasure and pride in reporting that we closed of financialyear 2013/14 in June by recording substantial growth in our membership base andour in financial strength.

Pakistan holds enormous business and investment opportunities provided it's potentialis show cased properly. Pakistan is full of resources, be it human assets or naturalwealth. It is for this reason, and with your support, that we are trying to manage andtransform the forum in such a way that we are able to provide precise and up to dateinformation to business inquires from Germany and vice versa. This means implementationof processes and systems in the office environment to respond quickly. As we endeavorto improve our service platform, I would like to acknowledge the help and support beingextended by Deutsche Gesellschaft fuer Internationale Zusammenarbeit (GIZ) GmbHby providing and funding consultancy services to PGBF.

It is pertinent to mention here that our business delegation to Germany last year inOctober by the name of 'Pakistan Days in Berlin and Munich' had been a great successand it would not have been possible without unabated and untiring strength and supportfrom H.E. Dr. Nunn, the Ambassador and Dr. Klinner, the Consul General of the FederalRepublic of Germany. We intend to make a matching show here in Pakistan towardsthe end of this calendar year besides other local shows and workshops. Eventually, wewish to transform our forum into Pakistan German Chamber of Commerce with yoursupport.

I am confident that all the efforts that are being put in PGBF will become centralinstrument for the promotion and expansion of bilateral economic relations betweenGermany and Pakistan.

MESSAGEMr. Nadeem Kazmi

Pakistan holds enormousbusiness and investment

opportunities provided it'spotential is show cased properly.Pakistan is full of resources, be

it human assets or naturalwealth. It is for this reason, andwith your support, that we are

trying to manage and transformthe forum in such a way that weare able to provide precise and

up to date information tobusiness inquires from Germany

and vice versa. This meansimplementation of processes and

systems in the officeenvironment to respond quickly. As we endeavor to improve ourservice platform, I would like to

acknowledge the help andsupport being extended by

Deutsche Gesellschaft fuerInternationale Zusammenarbeit

(GIZ) GmbH by providing andfunding consultancy services to

PGBF.


D

MESSAGEList of Board of Directors


Board Directors

Mr. Abdul Baqy KhanC/o Merck (Pvt) Limitedwww.merck.com.pk

Mr. Mian Abrar AhmedC/o Cuckoo Industries (Pvt) Ltdhttp://cuckoo-industries-pvt-ltd.pakbd.com/

Mr. Masud AkhtarC/o KSB Pumps (Pvt) Ltdhttp://www.ksb.com/ksb-pk

Mr. Mohammad Ali RajparC/o General Shipping Agencies (Pvt) Ltdwww.gsa.com.pk

Mr. Asif Ali RashidC/o Almurtaza Machinery Co. (Pvt) Ltd

Patron in Chief

Dr. Cyrill Nunn

H. E. The Ambassador of theFederal Republic of Germany to Pakistanwww.pakistan.diplo.de

Patron

Dr. Tilo Klinner

H. E. The Consul General of theFederal Republic of Germany to Pakistanwww.pakistan.diplo.de

Chairman & CEO

Mr. Syed Nadeem Ali Kazmi

C/o Siemens Pakistan Engg. Co. Ltdwww.siemens.com.pk

Vice Chairman

Mr. Noordin Karim

C/o Shermah Enterprises

Mr. Ashraf BawanyC/o Linde Pakistanwww.linde.pk

Mr. Mazhat ValjeeC/o Schneider Electricwww.schneider-electric.com

Mr. Khawaja Jahan ZebC/o Zeb Travelswww.zebtravels.com.pk

Mr. Taher G. SachakC/o EFU Life Assurance Ltd.www.efuinsurance.com

Mr. Faisal Akhtar

ith the beginning of 2014 and the taking effect of the Generalized System of PreferencesPlus (GSP+), Pakistan's economic environment has been significantly altered forthe upcoming years. After a long process of preparation and mediation, the trade

concession package has been granted to Pakistan (among others) by the EU parliament onDecember 12, 2013. Throughout the process, Germany has fully supported and backedPakistan's bid for the EU's GSP+ status.

The GSP+ is granted to those countries that ratify and implement international conventionsrelating to human and labour rights, environment and good governance. Roughly 20% ofPakistani exports now enter the EU without any tariff, while 70% percent are exported atpreferential rates. In previous years, custom duties for these products ranged from 3.2%(cotton yarn) to 9.6% (textile made-ups). However, no product may exceed the 6% importceiling set by the EU. This status will be in effect until 2017.

This new situation puts Pakistani businesses and policymakers in a position where previouslyexisting strategies may need to be revised. The opportunities offered by the package needto be met with sincere efforts to reach such long-term goals like stabilising and diversifyingthe economy, accelerating growth and reducing poverty in the Pakistan.

Pakistan's export performance and corresponding challenges

Pakistan's overall export performance until the end of year 2012 is displayed in Table 1.There has been a continuous increase in growth for Pakistani products from 2003 until2008, a decrease afterward in 2009, another increase until 2011, while export finally fallsto US$ 24 billion in 2012 (row 1). The year to year growth rates fluctuate to a large degree,with the mentioned negative growth in 2009 and 2012 (row 2).

Correspondingly, Pakistan's exports to EU-27 (row 3) have been rising steadily since 2003,except in the years of 2009 and 2012. We also observe that the global EU-27 export sharedeclines from roughly 30% in the years 2003 and 2004 to 21.5% in 2012. In this timeperiod, Pakistani total exports have more than doubled (almost US$ 12 billion to US$ 24.6billion). Nevertheless, the EU remains Pakistan's largest export market.

Pakistan's exports to the Germany rose from US$ 608 million in 2003 (with small fluctuationsin 2006 and 2008) to US$ 1.3 billion in 2011 and fell again to just under one US$ billionin 2012 (row 5). Germany's share of total Pakistani export on average of the previous tenyears is 4.5% (row 8).

Given the natural resource base, manpower and entrepreneurial skills and the size of theEuropean import market (2011 imports from extra-EU 27 were US$ 1.54 trillion), Pakistan'sexport to the EU does not reflect its potential volume. The performance gap rises from variousdomestic inconsistencies, one of which is the inability to diversify the country's basket of exportcommodities. As a result, Pakistan's exports to the EU are observed to be supply-driven ratherthan demand driven. Except for goods covered by knitted and woven apparel , the top sixcategories that constitute almost 90% of Pakistan's exports to the EU, do not find a place inthe top 45 EU import categories. This mismatch extends also to GSP exports, where only

ARTICLED r . P o e t i s








effect until 2017.


W

SITUATION OF TEXTILE INDUSTRYIN CONTEXT OF GSP+ STATUS

Since 1971, the EU has had rules ensuring that exporters from developing countries paylower duties on some or all of what they sell to the EU. This gives them vital access to EUmarkets contributing to the growth of their economies. This scheme is known as the"Generalised System of Preferences"

The European Union has granted the Generalized Scheme of Preferences Plus status (GSP+)to Pakistan in December 2013. This status is likely to increase access to the EU marketthrough duty free imports of GSP-eligible products. The grant of the GSP Plus status is effectivefrom January 1, 2014. This is indeed a positive development for the growth and prosperityof the economy of Pakistan.

There are many speculations and assumptions regarding GSP+ status given to Pakistan arenow almost becoming a myth. It is now our duty to present a very clear picture of its impacton the economy of Pakistan in general and the actual benefit we likely to fetch and thebottlenecks and barriers in getting the maximum advantage of tariff reduction.

The EU is not only one of the largest trading partners of Pakistan, but is actively engaged andcontributing effectively to socio-economic development of Pakistan. The EU remains majortextile trading partner; 80 to 85% percent of Pakistan's exports to the EU consists of textilesand clothing, in which competitors such as Turkey, Morocco, Tunisia and Bangladesh enjoyduty-free access to the EU market against peak duties paid by the Pakistani merchandise.Moreover, 80 percent of Pakistan's exports are directed to seven EU member countries,Germany, the UK, Italy, Belgium, The Netherlands, Spain and France.

While approximately 12 percent of Pakistan's remittances come from the EU, foreigninvestment from there has declined rapidly in recent years. Almost 35 percent foreigninvestment originated from the EU in the mid-1990s. It increased to 43 percent in 2000-01 but declined drastically to 11.5 percent by 2010-11. Factors like the economic slowdown,less than satisfactory security environment, energy bottlenecks, and war against terrorismcoupled with poor governance appear to have contributed towards making Pakistan a lessdesirable destination for foreign investment.

The tariff advantages provided by the GSP Plus status are powerful and must be exploitedby our exporter and government. However, they are not the only factor that can make Pakistanmore competitive in the EU market. Tariff preferences under GSP+ are subject to quantityrestraints and safeguards. These instruments are not applied to exports under MFN rates(more than one-half of all MFN tariff lines are set at zero percent and another one-quarterare below five percent). The EU buyers, therefore, prefer imports cleared under MFN becausethey are more reliable and sustainable and are not subject to quantity restraints and safeguardsas well.

Although the prospects of duty-free under the GSP+ access for textile and clothing suggestenormous scope for Pakistan's exports expansion, the reality is somewhat different. The applicablequantity threshold, that is, tariff preferences are not available to a country for a product whose

ARTICLEMuhammad Yasin Siddik

Secondly, Bangladesh - the secondbiggest textile exporter in the world

after China - is not getting thesame number of export orders as

it was getting a year ago. Thecountry is facing major challenges

in safety concerns of textileworkers. Recent fire incidents infactories of Bangladesh, wherehundreds of workers had died,

attracted negative internationalmedia coverage. In addition to theabove, China is focusing more onthe technology sector instead of

textile, but yarn demand fromChina is growing. Most of the

benefits under GSP+ should bedelivered from volumetric sales asthe bulk of decrease in unit prices

post duty elimination is passedonto end-consumers.


BY MUHAMMAD YASIN SIDDIKChairman - All Pakistan Textile Mills Association (APTMA)



exports exceed six percent of the EU's annual GSP imports of thatproduct, means that Pakistan's textile and clothing exports will largelyremain subject to MFN imports duties.

CAVEATS IN EU DUTY CONCESSIONS

We should be very careful while exporting to EU under GSP+ Scheme,which has a number of safeguard clauses.

1. Protects its own industry from losses, unemployment or closures.It also has provisions by which a surge in the export of any singleitem will lead to its exclusion from duty-free concession.

2. The General Safeguards Article 22 clearly states: ̀ where an articleis imported in volumes and/or prices which cause or threaten tocause serious difficulties to Union producers of like or competingproducts, normal tariffs shall be reintroduced.

Imposition of anti-dumping duties on our bed linen exports by EU inthe past is one of the example.

3. Article 29 under the `Safeguards in Textiles, Agriculture, andFisheries Sector` clearly states that all items in Annexure 5 andAnnexure 9 will be subject to this clause.

Annexure 5 and 9 include most of our value-added textiles, whichhave the best chance of increasing our exports.

• The clause states, in simple terms, that if any item shows agrowth rate of more than 13% in sales to the EU in any oneyear as compared to the previous year, then it shall be excludedfrom the duty exemption regime.

• Similarly, if any items share exceeds 6% of total imports of thatitem into the EU, it will also be excluded from the exempt list.

• If total imports to the EU from any country enjoying GSP +status exceed 2pc of the EU`s global imports, then that wholecountry would lose duty-free access.

4. The GSP+ status granted to Pakistan is conditional on the ratificationand implementation of 27 international conventions in the areasof human rights, labour standards, environment and goodgovernance. Adoption of these conventions will assist Pakistan inintegrating into the cross-border supply chain which will strengthenmanufacturing activity and further promote its exports. Pakistanhas ratified almost all the conventions. The most critical aspect ofthese conventions is that their compliance will be strictly monitoredby the EU through the unnamed third parties from civil society orNGOs.

IMPACT OF GSP+ STATUS ON TEXTILE INDUSTRY

The GSP+ status will likely result in an increase in textile exports,particularly in the higher value added segment in textile by $600 millionto $700 million per year (increase of 9.5 percent to 11.5 percent

versus FY13 exports). Analysts say home textiles are not likely to benefitsignificantly from the arrangement as Pakistan already has a highmarket share in the segment. Fabrics, readymade garments and madeups should end up as key beneficiaries. Growth in total textiles exportsunder the GSP Plus scheme is capped at 14.5 percent per annum.Within this backdrop, individual companies that manage to increasetheir proportional share in exports to the EU should emerge as relativewinners.

Secondly, Bangladesh - the second biggest textile exporter in the worldafter China - is not getting the same number of export orders as it wasgetting a year ago. The country is facing major challenges in safetyconcerns of textile workers. Recent fire incidents in factories ofBangladesh, where hundreds of workers had died, attracted negativeinternational media coverage. In addition to the above, China is focusingmore on the technology sector instead of textile, but yarn demandfrom China is growing. Most of the benefits under GSP+ should bedelivered from volumetric sales as the bulk of decrease in unit pricespost duty elimination is passed onto end-consumers.

STRATEGY TO CAPITALIZE GSP+ FACILITY

In order to avail the facility of GSP+ at the maximum level and gainingsignificant global market share that China is loosing in basic textilebecause of becoming expensive as compared to their competitors,the stakeholders of the textile industry of Pakistan need level playingfield with the regional competitors in the terms of:

• Provision of energy both gas and electricity on priority basiswithout any outages and interruption.

• Provision of concessionary rate of finance for capital investmentin the textile sector.

• Provision of adequate raw materials i.e. Cotton, Polyester StapleFiber, other Man-Made Fibers like Viscose, Acrylic etc.

• Cost of financing to be compatible as compared to the rateprevailing in the region.

• Incentives for Revival of sick and closed industrial units.

PAKISTAN-GERMANY ECONOMIC RELATIONSAN OVERVIEW

Pakistan and Germany can together boast of a long, extensive and friendly relationship sincethe diplomatic relations was established between them. It was Germany which partnered withPakistan to launch an industrial programme in the early 60ís when President Ayub Khan ofPakistan visited Germany to meet his counterpart, Heinrich Lubke and Chancellor KonradAdenauer. It was Germany which idealized Pakistan as an example of development policy inthe developing country. During the 70ís, the Bhutto Government took further initiatives tostrengthen Pakistanís ties with Germany and it was then the military academies of bothcountries signed a strategic and military training pact. It was also in this decade that GermanFederal Ministry for Economic Cooperation and Development (BMZ) accelerated their effortsto fund projects in energy, education, telecommunications and health. In the 80ís the German-Pakistan relations saw the beginning of a military alliance supporting each other with convergentviews on all global issues and pursuing development programmes at home for furtherdevelopment of economic relations.

The 90ís saw the emergence of a vibrant bilateral business forum, Pakistan German BusinessForum (PGBF) through the efforts of the then German Ambassador in Pakistan in associationwith business houses from both countries locked in trade and investments. Consequently, andto date, relations between the two countries have expanded to include cultural, military, economic,political and academic exchanges at all levels. Germany is a preferred destination for Pakistanistudents to pursue higher education, especially in research, engineering, science and technology.It may surprise many to know that there are more than 2000 students from Pakistan inGermany, which is also associated with a Pakistani legend, Allama Iqbal. A Street in Heidelberg(Iqbal-Ufer) is named after him. Germany is home to some 35,000 Pakistani immigrants.

On the business front, an 80 member delegation was organized last year by the PGBF to visitBerlin and Munich and which was led by the Chief Minister of Punjab, Shahbaz Sharif. Thesuccess of the visit can be gauged by the fact that their counterpart organization, DIHK, bothin Berlin and Munich, had arranged high level meetings with the German Government toinclude the Foreign and Trade Ministers. Leading business houses of Germany also participatedand took active part in the panel discussions related to core business prospects. It provedto be an eye opener for many Germans to understand the tremendous opportunities thatexists for trade and joint ventures in Pakistan. The successful visit of the PGBF delegation toGermany last year has provided further impetus towards economic cooperation between thetwo countries. This is evident by the subsequent visits of various business and politicaldelegations to Pakistan. Combined efforts are in place to establish a Joint Chamber ofCommerce in Pakistan, the first of its kind to be established by any bilateral forum.

The first high level diplomat to visit the present government after their election and meetPrime Minister Nawaz Sharif in June last year, was the German Foreign Minister, GuidoWesterwelle, pledging economic assistance of EUR 112.5 million towards development effortsof the new government. He had earlier signed the Roadmap for the Pakistan-German StrategicDialogue in Berlin on 17th of December, 2012.

Germany has been a staunch and a vocal supporter of Pakistan and it was much due to theirefforts that Pakistan was granted the Generalised System of Preferences (GSP) plus statusby the European Union enabling the much awaited greater access to the European marketsfor Pakistani products, specially textile and leather goods. Heimtextile Trade Fair in Germanyhad participation of over 150 Pakistani companies. This fair is the worldís largest with almost3000 participating from over 60 countries with Pakistan ranked 4th in terms of number ofexhibitors from a single country last year. As of last year, bilateral trade between the twocountries was in excess of Euro 2 Billion, divided almost equally between the two, a situationwhich Pakistan desires to achieve with its other trading partner countries to help lower thetrade deficit.

ARTICLEK a l i m F a r o o q u i


BY KALIM FAROOQUIManaging Director, Technology Link (Pvt.) Limited

The journey, starting from 1961 when Pak-German Development Cooperation began,has seen numerous pacts, agreements,MOUs in different sectors. From the Germangovernment, Pakistan has so far receiveddevelopment funds in excess of EUR 2.5Billion concentrating on infrastructure,Healthcare, Technical and VocationalEducation, Energy and Governance to helpcapacity building.

Germany is Pakistanís largest tradingpartner within the European Union and alsoa major investor in Pakistan. Severalmultinationals from Germany are operatingin Pakistan which are not only providing jobopportunities, but also contributingsignificantly to Pakistanís overall GDP.Investment Protection Treaty signed by theprevious government in 2009 may seefurther investments in the days ahead.

Germany maintains a significant diplomaticpresence in Pakistan. With an Embassy inIslamabad, it has a consulate in Karachi andhonorary consulates in Lahore, Peshawarand Quetta. The present Ambassador toPakistan, Dr. Cyrill Nunn and the ConsulGeneral in Karachi, Dr. Tilo Klinner havebeen helpful in bringing the people of thetwo countries closer and specially themembers of the business communities withwhom they interact on a very regular basis.The well-known Goethe Institute in Karachiand the Annemarie Schimmel House inLahore, are supplementing their efforts inpromoting bilateral cultural relations byoffering language courses and holdingcultural programmes.

ECONOMIC RELATIONSBETWEEN PAKISTAN AND CHINA

he article explores the argument that economic relations between Pakistan andChina have been a development of the recent past as opposed to political-militaryrelations that have grown exponentially since the 1960s. What explains the slow

growth of economic relations between Pakistan and China compared to political and militaryrelations? Second, now that economic relations between the two states are becomingmanifest, what is the nature of economic relations in terms of trade and investment? A thirdquestion may be posed, that is, do economic relations between China and Pakistan approximatethe dependency theory where the powerful state (China) benefits and the weaker economy(Pakistan) is merely exploited for the development of the powerful metropolitan core? Thearticle concludes on the note that the Pakistani ruling elite are comfortable with the rise ofChina as a military and economic power and that economic relations between the two countriesare bound to grow in the coming years provided that internal security and market conditionsin Pakistan are stabilized.

The slow growth of economic relations between the two states can be explained with attentionto a number of variables. First, during the 1960s and 1970s, China was very much a developingcountry (similar to Pakistan) and the Chinese were primarily an inward looking state whoserelations with both the superpowers were frosty. In this sense, China did not offer any economicincentive for the Pakistani ruling elite. Second, though Pakistan and China came closer to eachother after the Sino-Indian border war of 1962, the Pakistani state was still primarily reliant onthe US for its economic and military aid. In fact, during 1962, Pakistan was the United Statesímost allied ally, a relationship that soured during and after the 1965 War, remained cold duringthe 1970s and then reached its zenith during the 1980s after the Soviet invasion of Afghanistan.During the 1990s again while Pakistan and China consolidated their military alliance throughtransfer of missile technology, it was again the United States which became the Pakistani stateísmost important political-military and economic ally as the War on Terror dawned on the worldbeginning September 11, 2001. Third, since the Pakistani ruling eliteís West-centric foreignpolicy has consolidated since Pakistanís independence, the Pakistani economy and specially itsexporters traditionally and even in contemporary times mainly look towards markets in the Westas opposed to looking towards China.

This has now changed perceptibly as Pakistanís ruling elite seeks to expand its trade, investmentsand aid linkages with a robust Chinese state which has leap-frogged the Japanese to becomethe worldís second largest economy. The volume of bilateral trade between Pakistan and Chinahas risen from $1 billion to about $7 billion from 2000 till 2010, however growth in percentageof Pakistani exports on a yearly basis has been declining and the balance of trade has beenconstantly in favour of China. This is explicable because China is a much larger economy comparedto Pakistan. Pakistan exports mainly raw materials including copper, cotton, chrome etc againstthe import of value added manufactured goods. Chinaís exports to Pakistan constitute morethan 20% of Pakistanís imports while Pakistanís exports to China constitute only 0.13% ofChinese imports. In 2011, the central banks of the two countries signed the Pak Rupee-RenminbiCurrency Swap Arrangement which should enable traders and investors to settle their transactionsin their natural currencies. For Pakistan, the real benefit that the Chinese state offers is withrespect to investments in building of new port (Gwadar), natural resources and raw materials

ARTICLEDr. Farhan Hanif Siddiqi










BY DR. FARHAN HANIF SIDDIQIAssistant Professor, Department of International Relations,

University of Karachi

T

ARTICLEDr. Farhan Hanif Siddiqi


such as coal and even gold and copper and Pakistanís beleagueredenergy sector. Pakistan formally handed over the Gwadar Port to Chinaenvisaging an economic corridor with an investment of US$ 12 billionby Beijing in February 2014. The benefit which China foresees from theGwadar Port, once it becomes fully operational, is that it will cut downby almost one-third the ocean distance that it takes to ship oil from theMiddle East to China. At present, the supply line to China runs over theDubai-Shanghai-Urumqi ocean route which is over 10,000 km ascompared to ocean and land route through Dubai-Gwadar-Urumqi whichspans 3,600 km. In this regard, Pakistan and China signed five agreementsin February 2014 for building a new airport in Gwadar and upgradingthe Karakorum Highway.

In the context of Pakistan-China relations, the facet of economic relationsis the most ill-developed. For that to improve, the domestic securitysituation in Pakistan along with electricity production and overall marketstability needs a radical overhaul and improvement so that investmentsfrom China are brought in and effectively materialized. Very recently,a leading Chinese company Haier Ruba SEZ after dire requests fromthe government to provide it with the requisite facilities primarily anincrease in electricity load is contemplating closing down its businessas it is losing confidence in the Pakistani market. On the other hand,it has to be kept into perspective by the Pakistani ruling elite that anyinvestments in natural resources and raw materials by the Chineseare bound to benefit the powerful Chinese economy and in this sense,Pakistan approximates a Third World state rich with natural resourcesbut poor in terms of industrial power. Thus, the dependency theoryhas the potential to come into play with respect to economic relationsbetween Pakistan and China. However, the Pakistani political eliteincluding the major political parties seem content with respect toinviting Chinese investments as a way of deliverance from the destituteeconomic conditions that plague the country. For the Pakistani rulingelite, it is imperative that they do not merely concentrate on invitinginvestments from China (which would ultimately reap benefits to theChinese state) but that the Pakistani industrial sector increases itsexports to China (from a more diversified manufacturing base) so thatreal financial benefits accrue to the state and peoples of Pakistan.

THE ROLE OF FDIIN GROWTH OF EXPORTS OF PAKISTAN

The specific effects of Foreign Direct Investment (FDI) arise because foreign capitalinflow may incorporate different competitive advantages such as superior knowledge,technology and higher productivity or better information about export markets ascompared to local firms. We believe that differentiation between the good and badeffects of FDI on export is especially important in terms of policy implications. It is oftenargued that successful FDI promoting policies should lead to among other things, asignificant increase in the host country's export. However, if evidence indicates that FDIincreases exports only through increasing export supply capacity, then FDI inflows arenot specified, in that, policy makers could increase exports through alternative meansas well, such as promoting domestic investment rather than FDI. If on the other handone finds that there are direct FDI specific positive effects of foreign capital inflow onexports, this would mean that specific efforts aimed at attracting further FDI would bejustified.

The early 1980's saw major developments in international economics as industrialorganizational aspect of international trade were integrated into more formal tradetheory. Prior to 1980's two rather distinct literature existed. There was generalequilibrium trade theory, which relied almost exclusively on the twin assumption ofconstant returns to scale and perfect competition in production. Second, there was apartial equilibrium literature that considered industrial organization effects on tradesuch as the effects of trade barriers on concentration, competition and productionefficiency (Markusen).

The history of FDI in many developing countries reveals that FDI promotes the exportof the host countries to a large extent due to their vast contacts and up-to-dateinformation of the foreign markets. However their example cannot be generalized toa developing country like Pakistan. The reason behind this is that Pakistan is still havinglow infrastructure facilities as well as under developed commodity market which isnecessary in order to achieve the fruits of foreign direct investment in the shape

of rising exports. Thus it shows that relationship between exportgrowth and FDI depends upon the priorities of the original country.

Figure 1 Historical relationship between FDI and Exports inPakistan

The above figure depicts the trend of exports and FDI. Greenline indicates that exports are stagnant till mid eighties andafterwards it continuously grows. The growth in exports occursmainly due to major shift in emphasis of trade policies ofmany developing countries including Pakistan. In the year

2008 the growth in exports fell rapidly due to global economic slowdown.In the case of FDI, the situation is little different. The growth of FDI was stagnant in the

ARTICLEDr. Samina Khalil

The history of FDI in manydeveloping countries reveals that

FDI promotes the export of thehost countries to a large extent

due to their vast contacts and up-to-date information of the foreignmarkets. However their example

cannot be generalized to adeveloping country like Pakistan.

The reason behind this is thatPakistan is still having low

infrastructure facilities as well asunder developed commodity

market which is necessary in orderto achieve the fruits of foreign

direct investment in the shape ofrising exports. Thus it shows that

relationship between exportgrowth and FDI depends upon the

priorities of the original country.


Figure 1 Historical relationship between FDI and Exports in Pakistan

last three decades of the previous century. However it grew rapidlysince last decade. The reason behind this rising trend is mainlyconsistency in policies. It fell in the same pattern as exports inyear 2008 due to global economic recession as well as law andorder situation in the country.

Importance of export performance of PakistanFollowing Tables show historical record of export sector of Pakistansince separation of East Pakistan (Bangladesh) and its ups anddowns in various periods.

Table 1 Average share of exports in GDP and its growth

Years Average export as Percentage growthpercentage of GDP

1980-84 8.96 -

1985-89 11.28 25.85

1990-94 13.52 19.85

1995-99 13.22 -(2.22)

2000-04 12.94 -(2.12)

2005-09 11.28 -(2.83)

2010-13 12.33 (1.90)

Source: Author's estimates based on Economic Survey of Pakistan (various issues)

Table 1 shows the share of export in GDP. The figure indicatesthat the average share of export in GDP rises up to the first halfof nineties but falls continuously since then. The percentage growthin the share of export to GDP shows that the performance ofexport sector is falling overtime. Though the average share ofexport to GDP shows a rising trend but later on it falls once again.On the other hand, the percentage growth falls persistently anda negative growth occurring since late nineties. It may not be aclear depiction of the economic performance because there maybe a possibility that the composition of various sectors may bealtered. e.g. share of other sectors like services, agriculture,manufacturing would be changed. However, one thing is clearfrom the above Table that growth rate is negative that is not agood s ign for a developing economy l ike Pakistan.

Table 2 Major export markets for Pakistan

Countries Years1977-781982-83 1986-871991-92 1997-98 2001-02 2007-08

U.S.A 5.6 6.02 10.11 12.8 20.5 24.7 26.4

U.K 6.6 4.87 7.15 6.1 6.9 7.2 5.6

GERMANY 5.6 4.50 6.94 7.1 6.3 4.9 4.3

JAPAN 8.5 8.17 13.30 8.3 4.2 1.8 0.8

S.ARABIA 3.3 9.31 7.08 4.3 2.5 3.6 1.7

Source: Economic Survey of Pakistan (various issues)

Table 2 presents five major export markets for Pakistan. It includesU.S.A, U.K, Germany, Japan and Saudi Arab. It indicates that UnitedStates is the major market for Pakistani exports. Its share was

5.6% in 1977-78 and continuously grew to 6.02% in 1982-83,10.11% in 1986-87, 12.8% in 1991-92, 20.5% in 1997-98, and24.7% in 2001-02 and to 26.4% in 2007-08. United Kingdomis the second largest market for Pakistani exports with a shareof 6.6% in 1977-78 and 5.6% in 2007-08. Similarly, Germany isthe third largest market with its share ranging between 4% to7%in the period 1977-78 to 2007-08. Japan and Saudi Arab arefourth and fifth major export markets with their share varyingovertime. The share of Japan fell from 8.5% in 1977-78 to only0.8% in 2007-08. The share of Saudi Arab also fell from highestof 9.3% in 1982-83 to 1.7% in 2007-08.

Signif icance of Foreign Direct Investment in PakistanFollowing Tables and discussion show the records of foreign directinvestment inflow in Pakistan from various aspects and its relevantimportance. Table 3 Share of manufacturing in total FDI

Years Average MFDI Share of MFDI in FDI %

1971-75 41.66 75.1

1976-80 179.74 53.74

1981-85 254.58 80.9

1986-90 343.2 11.3

1991-95 2987.96 22.1

1996-2000 2931 15.71

2001-05 5643 15.8

2006-2009 37930.7 11.9

Source: Author's estimates based on “Foreign Liabilities, Assets and ForeignInvestment in Pakistan (SBP various issues)

Table 3 shows average manufacturing FDI and share ofmanufacturing in total FDI. The period under consideration hasbeen divided into aggregate of five years. In the first half of 70's,the share of manufacturing was 75%, which fell to 54% in thesecond half of 70's. However, manufacturing gained its shareonce again in the first half of 80's and the share of manufacturingwas only 11% of the total FDI. One reason behind this trend wasthe change of government and its policies. The second reasonwas the situation in the neighboring country Afghanistan. In sucha situation, the foreign investors were shy to invest in themanufacturing sector of Pakistan. In 90's manufacturing receivedonly 22% in the first half of the decade and 15% in the secondhalf in total FDI. Similar situation was observed in the first decadeof this millennium where the share of manufacturing was 16%and 11% in the first and second half respectively. Though theinflow of FDI has increased many times during this period butmost of FDI inflow fell in services and financial sector where thegrowth of those sectors was also high.





Table 4 Share of country wise FDI Inflow (percent)

Country 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10USA 67 27 25 21 15 18 24 23 22UK 6.25 28 6.80 11.91 6.92 16.73 8.50 7.08 13.46UAE 4.43 15% 14.18 24.11 40.45 12.87 10.89 4.78 11.02JAPAN 1.32 1.76 1.59 2.96 1.61 1.25 2.42 1.99 1.21Hong Kong 0.005 0.007 0.006 2.11 0.006 0.006 6.28 4.19 0.004Switzerland 1.52 0.003 21.63 9.02 4.84 3.39 3.12 6.11 7.80S. Arabia 0.002 5.45 0.007 1.20 7.88 2.01 0.008 -2.48 -6.06Germany 2.31 0.004 0.007 0.008 0.008 1.53 1.28 2.06 2.40Norway 0.0002 0.0003 15.44 2.06 7.17 0.0004 5.08 2.71 0.0001China 0.0006 0.003 1.50 0.0002 0.0004 13.85 0.002 -2.72 -0.001Others 15.80 21.79 11.44 24.23 14.82 29.42 37.006 52.80 47.60Total 100 100 100 100 100 100 100 100 100

Source: Author's estimates based on Economic Survey of Pakistan.

Table 4 reveals ten major contributors of foreign direct investment(FDI) in Pakistan for the last ten years. United States was themajor contributor with 67% share in 2001-02. Share of UK, UAEand Germany were 6.25%, 4.43% and 2.31% respectively in theyear 2001-02. One point is clear from the above Table that theshare of United States is huge as compared to all other countriesincluding the above Table except two years i.e. (2005-06) and(2006-07) where the inflow of foreign direct investment camefrom UAE which contribute almost 50% share in the total FDIinflow in Pakistan. Some countries like Japan, Hong Kong, SaudiArabia, Norway and China though contribute a very small sharein the FDI but still it considered much important for the economicdevelopment of an underdeveloped country like Pakistan.

An empirical study done by this author reveals that foreign directinvestment is significantly associated with overall exports in thelong run. However world' income is insignificantly linked withexports in short run. The short run behavior show different results.The coefficient of FDI is insignificantly linked with export in shortrun. However, real effective exchange rate world's income andrelative price shows positive association with export performance.Now if the policy makers are interested in raising exports and aapply policy tools through using channel of FDI, it can be done byraising FDI in the long run. However, in the short run FDI may notbe an effective tool.

FDI-export relation for three major export destination and FDIsource countries (U.S.A, U.K, and Germany) has been investigatedin this study. The study reveals that FDI is positively associatedwith export in the short run as well long run for source countryUnited States. It suggests that any policy for enhancement ofexports, raising FDI would be fruitful both in short run and in longrun policies in case of FDI-source country i.e. United States. Realeffective exchange rate is also positively associated withmanufacturing export in short and long run. For FDI-source country,United Kingdom, the study does not provide any statistical evidencein favor of long run relationship. For source country Germany, theresult is quite different. On the basis of the empirical estimation,

we come to know that foreign direct investment is not linked withexport to source country Germany.

Foreign Direct Investment is a double edge sword creating bothpositive and negative opportunities. The positive impact of FDI isthat it creates competitive environment in the host country, makesavailable superior knowledge, skill, technology and also informationabout export markets. On the negative side it retards growth ofthe host country if it gives rise to reverse flow of resources in theform of profit and dividends.

References

Afzal, Mohamad,'lmport Functions for Pakistan - A SimultaneousEquation Approach, The Lahore Journal of Economics, Vol 6,No.2'Amoateng, K., & Amoako-Adu, B. (1996). Economic growth,export and external debt causality: the case of Africancountries. Applied Economics~ 28, 21-27.Aqeel, Anjum (2004), The Determinants of Foreign DirectInvestment in Pakistan, Pakistan Institute of DevelopmentEconomics. Vol. 43, issue 4, pages 651-664 'Atique, Zeeshan, Ahmad, Mohsin Hasnain, and Azhar Usman(2004), The Impact of FDI on Economic Growth Under ForeignTrade Regimes: A Case Study of Pakistan,The PakistanDevelopment Review, 43:4 Part II (winter), pp. 707 -718Brainard, S. L. (1993). A simple theory of multinationalcorporations and trade with a trade-off between proximityand concentration (NBER Working Paper no. 4269).Dijk. Michiel van (2002), "The Determinants of ExportPerformance in Developing Countries: The Case of IndonesianManufacturing", Eindhoven Centre for innovation Studies, TheNetherlands, Working paper 02.01Economic survey of Pakistan (various issues) Government ofPakistan

zad Jammu & Kashmir (AJ&K) is pre-Partition Kashmirís western third,administered by Pakistan. Its crowning feature is its natural splendor, exemplifiedby the forested valleys of the Lesser Himalayas and the Pir Panjal Range, which

forms the southwest rim of the Valley of Kashmir.

The Azad State of Jammu & Kashmir is bestowed with exquisite natural beauty. Its stunningvalleys, dense forests, winding rivers, turbulent foaming streams, majestic towering mountains,bracing climate, historical & cultural heritage, holistic shrines & festivals and diversity offlora and fauna all go together to make it an excellenttourist destination. Its population is composed of adiverse range of ethnic groups claiming theirdescent from Semitic, Mongoloid, Aryans,Persians,Turks & Arabs. The people of Kashmirare deeply attached to their land.

One can enter Azad Jammu & Kashmir(AJ&K) via the Muzaffarabad district fromMansehra or Murree. Traveling by road toAzad Kashmir is itself an opportunity not to bemissed as you pass by some of the most wondrouswinding rivers and hills in the world. It takes about 4to 5 hours to reach Muzaffarabad from Islamabad by car.

The capital of Azad Jammu & Kashmir, Muzaffarabad, is situated at the confluence of theJhelum & Neelum Rivers and is widely regarded as the main starting point for exploringthe rest of Kashmir.

Neelum Valley, the most important tourist destination in Kashmir, is a beautiful valleycontaining about 370 small and large villages with panoramic views, and towering hills onboth sides of the noisy Neelam River. Lush green forests and enchanting streams encompassthe entire valley. The valley is connected to Muzaffarabad through the Neelam road, whichleads up to Kel. The condition of the road from Muzaffarabad to Athmuqam is very goodand suitable for any kind of transport. It stretches to about 50 km north of Muzaffarabadtill the existing Line of Control between Azad Kashmir and Indian Kashmir. The valley isconnected by a road that snakes alongside the Neelum River and ends at the village ofTaobat.

The valley features a number of trekking trails, lakes, mountain passesand other unique scenic features which are spread around the wholevalley.

Places of interest within the Neelum Valley

Keran

Keran, a village and popular tourist resort, is situated 1524 metersabove sea level. The village has a population of about one thousand,and is situated on the bank of meandering river Neelum, across fromwhere Indian controlled Kashmir is also visible. The panoramic lush

ARTICLETourism in Pakistan








effect until 2017.


A

ARTICLETourism in Pakistan


green valley, profound in wild fruit and wildlife, attracts tourists fromevery corner of the country.

Sharda

Sharda is reputed to be the mostbeautiful area of the Neelum valley. Itis located on the banks of the NeelumRiver at an altitude of 1981m, about136 kilometers Northeast ofMuzaffarabad. The ruins of the famoustemple and Hindu pilgrimage siteSharada Peeth, dedicated to thegoddess Sharada who representslearning, is situated in this town. Otherhistorical sites in the town include theSharda fort, and Kishan Ghaati. Shardaand Nardi are two spectacular mountain peaks overlooking Shardain the valley.

Sharda was a sacred Buddhist and Hindu place of learning forcenturies and the Sharada script was also developed here in the 9thcentury.

Kel

19 kilometers upstream away from Sharda takes one to Kel. It is asmall valley at the height of 2097 meters where the Shounter Nullahjoins river Neelum and leads to the Gilgit Agency over the ShounterPass (4,420 meter). Kel is also a base camp for mountaineeringactivities on the Sarawaali Peak (6326 meters above sea level) andìSarawaali Glacierî which are said to be the highest peak and biggestglacier of Azad Kashmir.

The uniqueness of the Neelum Valley lies in the variety of diverseexperiences that it has to offer. From its dusty rocky roads to beautifulwinding trekking paths, heavenly green pastures to crystal clearwaterfalls and well maintained hotel accommodations, Neelum Valleyis an ideal tourist package for all those who appreciate nature at itsbest.

ARTICLESalient Features of Budget 2014


Budget 2014/15 Salient Features

Finance Minister Ishaq Dar presented the budget for the fiscal year 2014-15 witha total outlay of Rs3.945 trillion in the National Assembly.

he total outlay of budget 2014-15 is Rs 4,302 billion. This size is 7.9% higherthan the size of budget estimates 2013-14.

• The resource availability during 2014-15 has been estimated at Rs 4,074 billion againstRs 3,011 billion in the budget estimates of 2013-14.

• The net revenue receipts for 2014-15 have been estimated at Rs 2,225 billion indicatingan increase of 16% over the budget estimates of 2013-14.

• The provincial share in federal revenue receipts is estimated at Rs 1,720 billion during2014-15, which is 14.5% higher than the budget estimates for 2013-14.

• The net capital receipts for 2014-15 have been estimated at Rs 691 billion againstthe budget estimates of Rs 493 billion in 2013-14 i.e. an increase of 40%.

• The external receipts in 2014-15 are estimated at Rs 869 billion. This shows anincrease of 50.7% over the budget estimates for 2013-14.

• The overall expenditure during 2014-15 has been estimated at Rs 4,302 billion, outof which the current expenditure is Rs 3,463 billion and development expenditure is Rs839 billion. Current expenditure has been estimated to be higher than the revisedestimates for 2013-14 by 8.3%, while development expenditure lower by 2.4%.

• The share of current expenditure in total budgetary outlay for 2014-15 is 80.5% ascompared to 78.8% in revised estimates for 2013-14.

• The expenditure on General Public Services is estimated at Rs 2,543 billion which is73.4% of the current expenditure.

• The size of Public Sector Development Programme (PSDP) for 2014-15 is Rs 1,175billion. Out of this, Rs 650 billion has been allocated to provinces. Federal PSDP hasbeen estimated at Rs 525 billion, out of which Rs 296 billion to Federal Ministries /Divisions, Rs 176 billion to Corporations, Rs 12.5 billion to Pak Millennium DevelopmentGoals and Community Development Programme, Rs 36 billion to Federal DevelopmentProgramme / Projects for Provinces and Special Areas, and Rs 5 billion to EarthquakeReconstruction and Rehabilitation Authority (ERRA).

• The other development expenditure outside PSDP for 2014-15 has been estimated atRs 162 billion.

• To meet expenditure, bank borrowing has been estimated for 2014-15 at Rs 228billion, which is lower than the budget and revised estimates of 2013-14.

•

T

The size of Public SectorDevelopment Programme

(PSDP) for 2014-15 is Rs 1,175billion. Out of this, Rs 650 billionhas been allocated to provinces.

Federal PSDP has beenestimated at Rs 525 billion, outof which Rs 296 billion to Federal

Ministries / Divisions, Rs 176billion to Corporations, Rs 12.5

billion to Pak MillenniumDevelopment Goals and

Community DevelopmentProgramme, Rs 36 billion to

Federal DevelopmentProgramme / Projects for

Provinces and Special Areas, andRs 5 billion to Earthquake

Reconstruction andRehabilitation Authority (ERRA).

METRO Cash & CarryPakistan in coordination

with this initiative ofPunjab Government,

organized a ceremony atits H.O. in the presence

of Ms. Waseema Omer, District Officer

Coordination, where 25interns were formally

inducted for on-job-training program at 4

stores of METRO inLahore.

METRO & GPTAIIN CONTEXT OF GSP+ STATUS

Govt. of Punjab has initiated a Punjab Youth Internship Program and have a talent pool of2000 interns in various disciplines. The idea of the Punjab Govt. is to provide Private andPublic Sector exposure to the youth by arranging OJT to selected interns for 6 months forwhich costs will be fully borne by the Govt.

METRO Cash & Carry Pakistan in coordination with this initiative of Punjab Government,organized a ceremony at its H.O. in the presence of Ms. Waseema Omer , District OfficerCoordination, where 25 interns were formally inducted for on-job-training program at 4 storesof METRO in Lahore.

Pic: Present on this occasion were -Left to Right - Nadeem Rehmani, Director Operations,Bouzeneth Benaouda, Managing Director, Shaista Hassan, Head of HR Operations, Waseema Omer , District Officer Coordination, CDGL, Pervaiz Akhtar, Director Corporate Affairs, NayabBaig, Director HR

Press coverage of this ceremony is different newspapers is listed below for your read.

Best regards/ Mit freundlichen Grüßen /__ __ ________

Pervaiz AkhtarDirector Corporate Affairs &Company Secretary

METRO-Habib Cash & Carry Pakistan (Pvt) LimitedThokar Niaz Baig, Multan Road,Lahore-53700. Pakistan.

Phone: +92 (0) 42 37508000Fax: +92 (0) 42 37508112Mobile: +92 (0) 324 [email protected]

EVENTSMetro & GPTAI


EVENTSMetro & GPTAI


Visit our homepage www.metro.pk and read more about our productsand services

This e-mail message and any attachment are intended exclusively forthe named addressee. They may contain confidential information whichmay also be protected by professional secrecy. Unless you are thenamed addressee (or authorised to receive for the addressee) youmay not copy or use this message or any attachment or disclose thecontents to anyone else. If this e-mail was sent to you by mistake pleasenotify the sender immediately and delete this e-mail.

SAVE PAPER - THINK BEFORE YOU PRINT

Placement ceremony of interns at METRO Cash & Carry(Source: Pakistan Observer)

Monday, March 17, 2014 - Lahore-A formal ceremony took place atMETRO Cash & Carry Pakistan's head office regarding initiative ofPunjab Government's Youth Internship Program. Representing PunjabGovernment on this occasion was Ms. Waseema Omer , District OfficerCoordination and the 25 interns who were formally inducted for on-

job-training program at 4 stores of METRO in Lahore. “It is a pleasureto see this young talent pool in front of us who are eager to be a partof the professional world. Punjab Youth Intern Placement Program isa futuristic approach and a great initiative, to realize the importanceof on-job-training. We not only appreciate this initiative but also wantedto be a part of this training program as a part of our global Care &Share program. We strongly believe that this initiative will not only openup doors of opportunity for the youth but also enable them to gainexperience in professional environment.” Said Bouzeneth Benaouda,Managing Director METRO Cash & Carry Pakistan. Waseema Omerstressed on the importance of the internship program and said thatgovernment sees a bright future for the youth of Punjab. Stipend ofRs. 12,000 per intern will be contributed for six months period of thistraining program by the Punjab Government. She also hoped that theseinterns gain the best of knowledge and skills being a part of professionalenvironment and succeed in their professional careers once they passout.-PR

Dunya News Link: http://e.dunya.com.pk/detail.php?date=2014-03-15&edition=LHR&id=944053_93759400

GPTI - PGBF TWO TWIN ORGANIZATIONSON THE WAY TO SUCCESS

The fiscal year 2013/2014 was a year of unprecedented success for the Pakistan GermanBusiness Forum. Its overall membership grew by 27,5 % to 232 members. Especiallyremarkable is the increase of corporate members which has more than doubled in the lastyear. The income of the PGBF has more than tripled. The additional funds were generatedfrom membership fees, advertisement, from our business delegation in October 2013 andfrom profit on investments.

Also the internal organization of the PGBF has made remarkable progress. Administrativeprocesses have been streamlined. Proper records and files are kept. A new format of minuteshas been introduced in order to ensure full implementation of the board´s decisions.

On the 20th of June 2014 a long-hoped for moment took place. At the premises of PGBF inZamzama the new service organization “German Pakistan Trade and Investment” was launched. At its constituent session the terms of reference for the future set-up were agreed upon. GPTIwill be a service provider offering a menu of business-related products comparable to the onewhich are marketed by the bilateral chambers of commerce under the brand DE International.Since the inception of the project I was frequently asked why we should have two organizationsinstead of one. A pertinent question, but one with a clear answer. A forum like the PGBF is runby a board of directors which is its main coordinating body. It does not have a CEO and employsonly a work-force for its own administrative purposes. As a corporate-like organization andservice provider GPTI has a different structure. It is headed by a CEO, hiring permanent andtemporary staff according to its work load and aims to be financially self-sustaining.

According to the agreed division of labor PGBF will continue to work as the umbrella organizationfor companies involved in German-Pakistan business relations. PGBF will continue to representits membership dealing with political, administrative and economic decision makers. The forumwill be the platform which aggregates its member's interests as a lobby organization. It willbe the nodal point for alliances with other business organizations, the competence center forevents and the main instrument for networking between its members.The outlined twin structure shall also be emulated at the Northern Chapter in Lahore andmay be at a later stage expanded to Islamabad, Faisalabad and Sialkot.Above all it is important to understand that GPTI and PGBF are indivisible. They are two sidesof the same coin, committed to the same set of objectives and ideals. Why do I emphasizethis point so strongly? Because I felt that parts of the membership of PGBF were insecureabout the future of the two entities. Somehow the mood was quite similar to the atmosphereprevailing in Germany 1989 after the fall of the Berlin Wall. An objective we all had workedfor over many years suddenly appeared to be imminent causing amongst some membersuncertainties about their role in the future set-up. But skepticism is out of place. Nobodyshould feel faint-hearted and everybody may rest assured that he will receive more added-value from the combination of both organizations.

Where are we heading to? PGBF and GPTI are precursors of the future chamber organization.Once the CE service component is fully established both organizations will be merged. Theunified organizations will form two pillars of a bilateral chamber of commerce.A third pillar of our network is about to be established in Germany. Together with the HonoraryConsul of Pakistan in Munich Dr. Poetis and with the ambassador of Pakistan in Germany,Syed Hasan Javeed, we want to launch at the end of August 2014 a German-PakistanBusiness Association. Its main task is to unite German and Pakistani companies operatingon German soil and doing business with Pakistan. This association will be our main platformfor business delegations to Pakistan and Pakistan-related events in Germany.This will complete the network of Pakistan German business organizations. Let us forge aheadwith confidence and courage completing a journey which the PGBF began in 1997.

EVENTSGPTI - PGBF










PAKISTAN PURCHASE MORE TEXTILE MACHINES

The state does not want to export only simple stuff and yarns / The profit in the area of textilehas increased / By Ulrich Binkert

Bonn (gtai) - Pakistan's textile industry wants to enhance its vertical range of manufacturewith the new investments. A huge amount of indigenous cotton goes as primary product toforeign manufacturers that results success in the world market for them. The demand ofmachines with new technology instead of the old one specially for refining of the fabrics andmanufacturing of the garments is in increase. German engineering companies are good attrading and could certainly increase their supplies. (Internet addresses).

There will be a dynamic demand of textile printing machines such as dyeing machines, tentersand other refining technologies in the near future. The market observers are expecting in thecurrent year and increasingly in 2015 a double-digit growth rate for these machines thatfinish the fabrics. Therefore there is a high demand of dyeing machine-knit products forinstance for T-Shirts. A proper seller's market is dominated by industrial sewing machinesand other technologies for manufacturing of apparel. In this area the representation of Germansuppliers is quite less.

The spinning's companies are relatively well equipped and are the most important buyers inthe machine market. They are reluctant, as expected, to invest in the total production. Thechangeover to a fine quality for the fabrics used for the apparel is being planned. Howeverthe existing machines have to be updated with lesser expanses. The chances for the turnoverregarding the power looms and knitting machines are estimated higher.

INCREASED DEMAND OF NEW MACHINES

In addition a new trend of having better equipment is emerging. “ I recently sold two customersnew machines from Germany who always bought used machines”, said a representative.Several producers acquired awareness that the low cost for energy and maintenance cancompensate the acquisition cost of the machine. Because of the intense water shortage thecompany expends a huge amount of money for the processing of waste water. Furthermorebecause of frequent electricity cut the manufacturer decided to also generate electricity andto supply the excess electricity to public network.

Pakistan's textile industry wants to retain more value added textile in the country and requiresmachines for that purpose. The land is the 4th biggest producer of cotton and exportspredominantly basic products. Almost half of the total exports of textile goods of 13 billionUS$ in the fiscal year 2012/13 (July till June) was comprised of apparel and other processedproducts. Thereby one fifth belongs to relatively simple products like towels and bedclothesand another one fifth of the export revenue was due to the export of cotton yarn and cottonmaterials which are in fact the of the simple kind: About 70% of the produced yarn is ofaverage or raw quality while 55% of the materials are natural (grey cloth). These productsare exported to China, Bangladesh and other countries as primary product where garmentsand other finish products for the world market are produced.

EVENTSPakistan Purchase More Textile Machines










ARTICLEPakistan Purchase More Textile Machines


GARMENT MANUFACTURER SEE NEW CHANCES FOR EXPORT

The garment producers now see better marketing potential abroadbecause the competitor's costs are increasing: after the disaster offactories in Bangladesh, the main competitor, the wages are beingraised as well as the working standard; international purchasingmanagers are looking for the alternatives for the country that hasimage problem with the western consumers. Until now the wages, asgiven in Pakistan Textile Journal (PTJ), in the textile industries ofBangladesh are significantly lesser; Cambodia has the same as Pakistanwhile India and China are far more expensive. The global factory Chinais generally facing the high cost increase and wants to get rid ofmanufacturing the apparel for export.

Aside from that Pakistan is having a better access to the market inthe European Union since the beginning of 2014: The government ishoping the additional export of one billion US$ through the GSP PlusStatus (Generalised System of Preferences ) for Pakistani goods. Inthe last fiscal year almost two third of the total garment's export of1.8 billion US$ went to the European Union and 26% to the USA.

At the same time the industry is also under sales pressure. Since Chinahas built big warehouses and is buying lesser quantity of yarn, the yarnspinning plants are facing over-capacity. For this reason the producersare in quest of export markets and considering buying knitting machinesand power looms as well as finishing technologies for processing at home.

The textile sectors can afford the investment, „they have huge amountfor it“, says an observer. The price of exporting garments has beendistinctly increasing since 2010; the price spike of 2010/11 for yarnhas attracted the export quantity. At the Stock Exchange Karachi thepre-tax profit of the companies dealing with „Personal Goods“ amountedto 43 billion PR that is 450 million US$ in the fiscal year 2012/13,in the previous year it was 0.3 billion PR. In this stock market segmentis Calgote Palmolive also listed, apart from that it comprises almostentirely the big textile companies of Pakistan.

FOREIGNERS ARE ALSO INVESTING

The capital is coming from outside. The textile giants of China aremoving abroad due to the rising costs and they have taken their politicaland traditional ally Pakistan into consideration. Shandong Ruyi announcedthe taking of majority holdings of Mansoor Textiles in Faisalabad inDecember 2013, but a certification of implementation of transactionwas not provided. On the other hand the textile groups of Pakistanhave invested in Bangladesh and are entering into the business regardingenergy sector and real estate as observed by PTJ where the companiesare expecting more profit.

The meaning of new textile clusters remains unclear. The authoritieswant to promote this area by giving incentives to the private economy

and hope for a huge investment from China. The government hasalready decided in the "Trade Policy 2003-04" to establish “GarmentCities” in Karachi, Lahore and Islamabad. A textile industry park inKarachi and a “textile city” at port Qasim as well as a special economiczone have been planned. The authorities will sell the land at thereasonable prices and grant tax rebates for the export purposes. Thegarment city in Karachi is relatively very advance, as said the observers.But even there the factories are being established. None of these isproducing.

The big question mark for the development of textile industries isbecause of the tough trading conditions. How secure is the country,how do the state, administration and the provision of energy function?Because of that the clothing manufacturers will hardly get any additionalorder when the sewing machines do not function and the deadline forthe fast moving fashion shops is not met. Because of the shortage ofelectricity and gas the industries, according to PTJ, will refuse to takea second order for the Christmas market. That is why 1/6th of theexport orders in 2012 went to Bangladesh, Sri Lanka and India. Theexport opportunity is also dependent on international businessenvironment, whether the custom duty for the Pakistani yarn in Turkeyhas risen or India is supporting its clothing manufacturers.

The textile industries play an enormous role for the economy of Pakistan.In the fiscal year 2012/13 the export reached 53 % of total exportand created 40 % jobs in the industries. About 40 companies arevertically integrated and cover from fiber treatment to finish productthat means the total textile processing. According to the statistics 11million spindles have been installed (working capacity), in the downstreamprocess there will be about 12000 knitting machines and about 700processing plants. The reliable figure is available only for the tax payingcompanies. The important informal sector produces simple productsfor the local market and works with the discarded machines of bigcompanies, imported used machines or cheap technology of China.

IMPORT OF TEXTILE MACHINES FLOURISHING

The market for the textile machines has already increased in 2013,as given in the statistics for import. The suppliers of Europe particularlyGermany have significantly increased their export to Pakistan. Theearning from Germany in 2013 with 76 million Euro was almost twiceas that it was two years before. It represents, according to the dataof Euro-statistics, 9 % of the total of German-Pakistan exports andmore than half of the industry export of European Union to Pakistan.However the data are different according to some sources, but still31 million Euro of the export of German textile machine in 2013 wasclassified as “confidential” (confidential trade of SITC group 724).

ARTICLEPakistan Purchase More Textile Machines


IMPORT OF TEXTILE AND LEATHER MACHINES2011 TO 2013

SITC-Code Product/Land 2011 2012 2013Textile and leather machines 1) (Mio. US$) 420 450 561

724 Total (Mio. US$) 2) 488 439 k.A.724.4. Machines for making fibre, Spinning etc. 238 242 k.A.724.41 Machines forExtruding etc. 52 100 k.A.724.43 Machines for spinning,

doubling or twisting of spinning stuff etc. 85 51 k.A.724.5 weaving and knitting machines etc. 144 107 k.A.724.53 Gimping-, Tulle-, lace mashines etc. 55 53 k.A.724.51 Weaving machin 61 31 k.A.724.54 ..Machines for making spun yarns 14 13 k.A.724.52 Knitting and Stitch-bonding machines 14 9 k.A.724.7 Dyeing, drying machines etc. 45 38 k.A.724.6 Auxilliary machines and

apparatus for SITC 724.4 bis 724.53 25 23 k.A.724.3 Sewing machines 23 20 k.A.724.8 Leather machines 8 5 k.A.724.9 Parts for SITC 724.7 und 775.1 4 4 k.A.

Countries (Total/SITC 724):Germany 119 151 k.A.

China 118 107 k.A.Japan 96 56 k.A.

Switzerland 43 32 k.A.Itly 44 30 k.A.

Belgium 19 17 k.A.724 EU-27 (Mio. Euro) 3) 88 128 146

.Germany 40 55 76

1) according to State Bank of Pakistan, Database: Import paymentsof Banks;

2) according to UN Comtrade;3) according to Eurostat

Sources: see above

The simple machines are manufactured in Pakistan. High-End-Technologycomes still from Europe, while the competition with China in respectto simple machines is gaining strength. Indian manufacturers, despitethe relief in trading between both the countries, do not play a significantrole. The annual important fairs in the country are "Textile Asia" (14.to 16.3.15 in Karachi) and "Igatex" (21. To 24.10.14 in Lahore). Besidesthe Pakistani customers also visit the international fairs like "Heimtextil"(14. to 17.1.15 in Frankfurt).

Internet address:

Fairs: Igatexhttp://www.igatex.pk

Textile Asiahttp://www.textileasia.com.pk

Authorities:Ministry of Textile Industryhttp://www.textile.gov.pk

Textile Commissioner Organizationhttp://www.tco.com.pk

Further Information:Karachi Garment Cityhttp://kgcc.org.pk

Pakistan Textile Journalhttp://www.ptj.com.pk (B.U.)

This article is relevant for:

PakistanTextiles, Clothing, Leather, general Textile and Leather machines,Environmental protection for Water

CONTACTUlrich Binkert _0228/24993-267

Your quetioneshttp:// www.gtai.de/GTAI/ Navigation/ DE/ Trade/maerkte,did=995058.html© 2014 Germany Trade & Invest

Promoted by Federal ministry of Economy and Energy.

he Forward Sports factory is the only one in the area that employs women. (AnnabelSymington/GlobalPost)

SIALKOT, Pakistan - When the world's top soccer players take to the pitch in Brazil this summerfor the FIFA World Cup, few will spare a thought for the ball. But as the teams battle it out forvictory and the chance to lay their hands on the World Cup trophy, those orbs on the field willshow that one man has already achieved his goal.

Khwaja Masood Akhtar, owner and CEO of ForwardSports in Sialkot, Pakistan, has long dreamed ofproducing the official ball for the FIFA World Cup.Forward Sports is one of the major suppliersfor Adidas, the official brand sponsor for the2014 games.

In the boardroom at Akhtar's factory is a standproudly showcasing all the balls his factory hasmade for major soccer events. He has made theofficial ball for Europe's UEFA Champions League,the Africa Cup of Nations and the German Bundesliga.But the top position of the stand has remained empty,waiting for an official FIFA World Cup ball.

In 2010, when the last World Cup took place in South Africa, the official ball was exclusivelymanufactured by a factory in Shenzhen, China. But this year, Akhtar's factory is also making theofficial ball, which has been named the Brazuca in reference to the host nation of this year'sWorld Cup, Brazil.

"When they announced that we would be making the official ball we had a party," said Akhtar, aswe toured his factory. "This gives us good satisfaction that this big brand has trusted us that thejob can be done in Pakistan. It is very exciting, not only for me but for my colleagues and the country."

?In the boardroom of Akhtar's factory is a stand showcasing the balls made for major sportingevents. Up until now, the top position has remained empty, awaiting a World Cup ball. (AnnabelSymington/GlobalPost)

Pakistan is not a country commonly associated with soccer - or football, as soccer is called inmost countries apart from the United States. The South Asian nation is better known for itsprowess on the cricket pitch. It is cricket, not football, that is played in narrow back alleys in citiesand towns or on any spare open stretch of ground in villages across the country: an empty bottlecrate for a wicket and a homemade bat fashioned out of a wooden plank. A tennis ball carefullywrapped in tape produces that distinctive 'tok' of bat on ball.

But Pakistan is the undisputed champion of football making. For more than a century, the garrisontown of Sialkot, in the northeast just a few miles from the border with India, has been producinghand-stitched footballs. Today the industry is increasingly mechanized, and Sialkot's football makersproduce around 60 million footballs a year, making up 70 percent of the world's production.

Akhtar acknowledges that it is Pakistan's plentiful cheap labor that has allowedhim to compete with China, where labor costs have risen sharply in recent years.Akhtar says that he pays his workers the minimum wage, currently 10,000 rupeesper month (US$102).

But the industry has had to sharply clean up its act. In the '90s, Sialkot's football industrybecame notorious for child labor. Most footballs were then stitched by workers athome, and sold to a middleman, which made it difficult to tell who was actually stitchingthe balls.

While a series of initiatives in the late '90s by UNICEF and the International LaborOrganization, supported by the Sialkot Chamber of Commerce and the major brands

One man's dream

come true: Making the

official ball for the 2014

FIFA World Cup

In Pakistan, cricket is

the sport of choice, but

soccer balls are nearly

a national business.

ARTICLEOne Man’s Dream


T

ARTICLEOne Man’s Dream


including Adidas and Nike, removed the practice from the big factories,some of the hand-stitched balls produced by small suppliers are stillmade by workers at home.

Local activists say that it is impossible to be sure that no children arestitching some of the footballs produced in Sialkot. According to estimatesby the Pakistan Commission of Human Rights, almost 10 million childrenin Pakistan are believed to involved in child labor.

Workers at the factory test soccer balls' response to humidity. (AnnabelSymington/GlobalPost)

Sialkot's football making industry is yet another hangover of British colonialrule, or so local legend has it. Prior to the partition of India and thecreation of Pakistan, Sialkot was home to hundreds of British soldiers.One day as the soldiers were enjoying a kick about, the legend goes, theypunctured their ball. They took the ball to a local cobbler and asked himto repair it. Impressed with his work, the cobbler became the go-tofootball repairman.

Over time, the story goes, the cobbler carefully studied the constructionof the ball and set about trying to replicate it. When he was satisfied withhis design, he presented it to the soldiers and persuaded them to buyballs directly from him rather than bringing them from England. And sobegan Sialkot's football making industry.

Today Akhtar's factory is the largest football producer in Pakistan, primarilymanufacturing footballs for Adidas. Only a tiny fraction of the footballsmade at Akhtar's factory on the edge of Sialkot are hand stitched. Mostare machine stitched - still a highly labor intensive process involvinghundreds of men and women hunched over whirling sowing machines.And some - including this year's World Cup ball - are now "thermalbonded," a seamless way of making footballs. The thermal bondedtechnology is the only way of making balls that meet FIFA's newly introducedstrict rules related to the roundness of the ball.

The balls go through a rigorous testing process at the factory beforebeing deemed fit to be kicked by the world's soccer stars. There are 80tests, Akhtar explains, as we walk through a warren of laboratories. Thelab technicians dressed in white lab coats and goggles dart between thelabs, monitoring the range of football experiments.

The balls are subjected to heat, humidity, and high intensity UV rays to seehow they'll cope with the harsh Brazilian sun. There are tests to see if theprinted designs will withstand the pace of the match, and a machine thatfires the balls at a metal studded plate at more than 60 kilometers perhour (37 mph) - apparently the speed that the ball can reach when kickedby a top striker. If the ball passes the test, it can then enter mass production.

The factory also makes bags for Adidas and there are machines thatmimic the effects of the roughest airport baggage handlers, includinga machine officially named the "bag handle jerker."

Workers at Forward Sports test the strength of the soccer balls theyproduce by firing them at 60km per hour. (Annabel Symington/GlobalPost)

As Pakistan's economy otherwise flounders, Akhtar's factory is a successstory and he has been awarded the “Best Export Performance Award”by the Pakistani government for the last seven years. "You see the prime

minister changing, but I stay the same," said Akhtar, indicating the lineof photos in the boardroom that records his impressive track record.

Sialkot has been largely insulted from the violent Islamic insurgency thathas brought business almost to a standstill in other parts of the countryand has devastated the country's economy. There has never been asuicide bombing in the city - though the city is heavily guarded anddominated by a fortified army cantonment.

But the country's power crisis has not left anyone untouched. Cripplingenergy shortages leave swathes of the country without power for up to18 hours a day. At the moment Akhtar relies on expensive diesel-poweredgenerators for 12 hours a day - an improvement, he says, from a yearago when he only got electricity from the grid for around three hours.The power cuts will likely get worse as the summer heat kicks in and sodo the air conditioners, further burdening the strained grid. During thesummer months the electricity shortfall can reach 60 percent.

The factory employs about 3,000 people, making it one of the largestemployers in the area, and it is the only factory that employs women -providing a rare opportunity for formal employment for women in ruralareas. There are currently around 600 women on the assembly line.

But despite making footballs for a living, the love of the game has notrubbed off on the workers. "We made the employees a football pitch,"says Akhtar, gesturing toward a large grassy area on the edge of thefactory compound. "But they started playing cricket instead."

o > CONTINUE READINGsource:http://www.globalpost.com/dispatch/news/regions/middle-east/140422/one-mans-dream-come-true-making-the-official-ball-the-2014

Dear members,

On March 17th an interactive session between Dr. Cyrill Nunn, Ambassador of Germanyin Pakistan, the PGBF Board and PGBF members took place at PGBF head office.

After a short introduction by Vice Chairman Mr. Noordin Karim about the PGBF progressand its activities, Dr. Nunn explained that a new association will be created to fit therequirements of becoming a German Pakistan Chamber of Commerce as the PGBF doesnot fulfil these legal requirements. This association will work in close collaboration withPGBF for the benefit of achieving this goal.

Dr. Nunn spoke also about trade and investment between the 2 countries and the securityissue in Pakistan.

Germany is a privileged trading partner and German investments are highly appreciatedin Pakistan. In Germany as well, there is a high interest on working with Pakistan. Companieswho donít know the country are unfortunately still hesitant to pay a visit.

The security warning on the website of the German Foreign Affairs are not saying not tocome to Pakistan, especially cities such as in Punjab, Faisalabad or Sialkot have no riskissues but places such as Baluchistan or KPK are updated frequently according to thesituation there.

A very big problem for Pakistan is the ranking of †Minus 7 from Euler Hermes for exportguaranties, which is a combination of economic and political elements.

The Ambassador informed that together with his French Colleague, they work on a betterranking. The Pakistan Government as well as the business society should also use theirinfluence for better ranking.

On the question on how Dr. Nunn estimates the new Government, he replied that he sees a verypositive trend since the last 9 months. Prime Minister Nawaz Sherif has a challenging reformprogram that he wants to achieve and a privatization program is a good example to quote.

BET composites took the initiative to praise the delegation who went to Berlin and Munichorganized by PGBF, it provided them the opportunity to sign with Europole in Germany.BET Composite wil l be their representative in LED l ights in Pakistan.

Thanks and best Regards,

Your PGBF team

V I S I TDr. Nunn visit to PGBF










A SEMINAR ON MARKET ENTRY IN GERMANY

On 25 of March 2014 the much awaited Consultinghouse Market Entry and ExpansionSummit 2014 took place at the Pakistan German Business Forum in Karachi, Pakistan.

The summit, part of Consultinghouse's six day roadshow through the Pakistani market,was attended by the German Consul & Deputy Head of Mission in Karachi and the PakistanGerman Business Forum (PGBF)

PGBF, the co-operation partner for this event, has been founded in 1997 and since thistime the PGBF is engaged to serve for the development of the Pakistan German Tradeand Investment cooperationís. The organization is serving the business communities ofGermany and Pakistan with dedicated service offers, in order to develop, maintain andback-up Pakistan German business-, investment projects and social relations. The Karachioffice around Ines Chabbi and Imran Shamim has already supported numerous Pakistaniand German companies to establish their business and expand operations in the region.

Expand your business with a reliable partner

On this day, Pakistani CEOs, Entrepreneurs and individuals got the opportunity to gatherinformation about how to expand their business in the German market. On the followingdays of the main event, the participants had the opportunity to meet the consultants ofConsultinghouse personally and discuss their individual market entry strategy as well asinvestment opportunities in the German market in face-to-face meetings. A deeper insightinto capturing the German market was given, especially with regard to unknown tax andlegal regulations "We talked about how our consultants support Pakistani businessesand how to grow sustainably in Europe while benefitting the brand through the positiveimage of the business location in Germany" said Martin Wilke, Managing Director ofConsultinghouse.

E V E N TCounsulting House












E V E N TCounsulting House


The Managing Director of Consultinghouse welcomed theparticipants and gave a short introduction to the MarketplaceGermany and the services his company provides for internationalclients who want to expand their business in Germany. Mr. MartinWilke talked about the challenges Pakistani companies have to facewhen entering the German market and Ritika Malik, the businessdevelopment manager of Consultinghouse, provided a detailed lookat the legal and tax barriers foreign companies have to overcomein a new business environment. She also gave insight on the newestablished EU Blue Card, which is particularly designed for highlyqualified individuals planning to come and live in Germany.

To overcome challenges when capturing new markets in Europewas the key point

The participants at the Expansion summit included CEOs, decisionmakers and entrepreneurs from various industries such ashealthcare, ITC, tourism, fashion and the textile industry, who joinedthe event in order to share their future plans. The main objectiveof this event at the Pakistan German Business Forum was "to informeveryone how Pakistani companies can differentiate themselves bycapturing the German market" says Andreas Wilke, BusinessConsultant responsible for the Pakistan and Indian market. "At thesame time we talked about the cultural challenges companies havefaced in the past when expanding their operations into a newmarket."

After the presentation, the company representatives come togetherfor a network and get-together in the afternoon. The One2Onemeetings were held on the next three days with the senior partnerof Consultinghouse and the decision makers of various companiesin order to discuss their customized market entry strategy.

DR. TILO KLINNER HONOURED BY KARACHICOUNCIL ON FOREIGN AFFAIRS

The Karachi Council on Foreign Affairs (KCFR) honoured PGBFís Patron, Dr. Tilo Klinneron his joining the council as a member at a function held in Karachi recently and attendedby the city elite.

KCFR was registered as a society over a decade ago with the aim to facilitate betterrelations between Pakistan and the representative of foreign countries based in Pakistanas well as visiting relevant dignitaries from different countries. The Council is a Pakistanibased non-profit organization and serves the community in Pakistan by providing itsmembers and the general public with a forum to deliberate upon significant internationalissues and its bearing on Pakistan's foreign policy.

Members of KCFR comprise of a cross section of eminent personalities from differentwalks of life and include former Chief Justice of Pakistan, former Governor of Sindh, retiredjudges, retired military/naval/air force chiefs, retired diplomats, professionals, corporateexecutives, bank presidents, journalists, businessmen, as also from a varied section ofacademia. Each member is a leader in his or her own field of specialization; thus makingKCFR an effective think tank body in Pakistan

KCFR regularly arranges programs to meet with foreign visiting dignitaries as well asAmbassadors and High Commissioners of countries based in Islamabad and in Karachi.This gives the members, as well as the public at large, an opportunity of understandingtheir view-points as well as information on the state of existing relations with their respectivecountries and the way forward for better relations.

Since most such programs allows question and answer sessions, it provides an opportunityfor both sides to appreciate and understand each otherís views.

Dr. Tilo Klinner was honoured by the Council at an event organized to pay tribute to itspast Chairmen. A memento was presented by the Senior Minister of the Sind Governmentand also the Education Minister, the Honourable Nisar Khuro, in the presence of theHonourable Minister for Culture, Sharmila Farooqui. The Secretary General of the Council,Mr. Ahsan Zubairi, announced the joining of Dr. Tilo Klinner as the first diplomat basedin Karachi which was largely applauded. The event was held at the residence of KalimFarooqui, an active member of PGBF and also on the Board of Governors of KCFR.

ARTICLE












International Trade Fairs & Exhibitions in Germany

Date City Exhibition30.08. - 02.09.14 Frankfurt a.M. Tendence31.08. - 02.09.14 Cologne Spoga + gafa/spoga horse - The garden trade fair;

Cologne/International Trade Fair for Equestrian Sports Cologne5.09. - 10.09.14 Berlin IFA - Consumer Electronics Unlimited06.09. - 08.09.14 Offenbach/Main I.L.M - International Leather Goods Fair Offenbach - Summer

Styles09.09. - 12.09.14 Hamburg SMM - the leading international maritime trade fair Hamburg10.09. - 11.09.14 Cologne Dmexco - Leading expo & conference for digital business11.09. - 14.09.14 Cologne Kind + Jugend - The Trade Show for Kids' First Years16.09. - 20.09.14 Frankfurt a.M. Automechanika Frankfurt - The World's Leading Trade Fair for

the Automotive Industry16.09. - 20.09.14 Stuttgart AMB - International exhibit ion for metal working16.09. - 21.09.14 Cologne Photokina - World of Imaging17.09. - 20.09.14 Nuremberg GaLaBau - International Trade Fair for Urban Green and Open

Spaces/ Design - Construction - Maintenance + Playground +Deutsche Golfplatztage

19.09. - 21.09.14 Dortmund Inter-tabac - International Trade Fair for Tobacco Products andSmoking Accessories

20.09. - 28.09.14 Friedrichshafen International Water Sports Exhibition21.09. - 23.09.14 Munich Cinec - International Trade Fair for Cine Equipment and

Technology23.09 - 26.09.14 Hamburg WindEnergy Hamburg - The global on- & offshore expo23.09. - 26.09.14 Berlin InnoTrans - International Trade Fair for Transport Technology

- Innovative Components - Vehicles - Systems23.09. - 26.09.14 Essen Security Essen - The world forum for security and fire prevention24.09. - 26.09.14 Hamburg COTECA - Tea, Coffee, Cocoa - Global Industry Expo25.09. - 02.10.14 Hanover IAA Nutzfahrzeuge - International Motor Show Commercial

Vehicles30.09. - 02.10.14 Nuremberg POWTECH + TechnoPharm - World Leading Trade Fair for

Processing, Analysis and Handling of Powder and Bulk Solids01.10. - 05.10.14 Cologne INTERMOT Köln - International Motorcycle, Scoter and Bicycle

Fair06.10. - 08.10.14 Munich EXPO REAL - International Trade Fair for Property and Investment06.10. - 09.10.14 Stuttgart Motek - International trade fair for automation in production

and assembly07.10. - 09.10.14 Dusseldorf ALUMINIUM - World Trade Fair and Conference07.10. - 09.10.14 Berlin INTERGEO - Conference and Trade Fair for Geodesy,

Geoinformation and Land Management07.10. - 09.10.14 Nuremberg It-sa - The IT Security Expo and Congress08.10. - 12.10.14 Frankfurt a.M. Frankfurter Buchmesse - Frankfurt Book Fair09.10. - 12.10.14 Augsburg RENEXPO® - International Trade Fair for Renewable Energy

and Energy Efficiency14.10. - 16.10.14 Nuremberg Chillventa - International Trade Fair for Refrigeration, Air

Conditioning, Ventilation and Heat Pumps14.10. - 18.10.14 Friedrichshafen International Trade Fair for Plast ics Processing18.10. - 21.10.14 Stuttgart Südback - Trade Fair for the Bakery and Confectionery Trades21.10. - 23.10.14 Munich eCarTec Munich/ MATERIALICA - International Trade Fair for

Electric & Hybrid Mobility/Lightweight Design for New Mobility/ Car IT

21.10. - 24.10.14 Dusseldorf Glasstec - International Trade Fair for glass production,

EXIBIT IONSInternational Trade Fairs


International Trade Fairs & Exhibitions in Pakistan

Date City Event12-14.08.2014 Karachi Association of Buildeers & Developers Expo26-28.08.2014 Karachi ITCN Asia 2014 Intl Exhibitio & Conference02-04.09.2014 Karachi Plastic & Pack and IFTECH07.09.2014 Karachi Suzuki certified Used Cars Gala16-18.09.2014 Karachi Health Asia 2014 Intl Exibition & Conference23-25.09.2014 Karachi Build Pakistan 2014 Intl Eibition & Conference11.10.2014 Karachi Asia’s leadership Expo

23-26.10.2014 Karachi Expo Pakistan 201418-22.12.2014 Karachi Karachi International Book Fair

EXIBIT IONSInternational Trade Fairs


processing and products25.10. - 02.11.14 Hamburg Hanseboot - Hamburg Internat ional Boat Show05.11. - 07.11.14 Frankfurt a.M. Viscom Frankfurt - International trade fair for visual

communication11.11. - 14.11.14 Munich Electronica - International Trade Fair for Electronic Components,

Systems and Applications11.11. - 14.11.14 Hanover EnergyDecentral - International trade fair for innovative energy

supply12.11. - 15.11.14 Dusseldorf MEDICA - World Forum for Medicine - International Trade Fair

with Congress with COMPAMED29.11. - 07.12.14 Essen Essen Motor Show - Automobile/Motorsport/Tuning/Classics

AD Rates

Double Page (Middle)Member Rs. 93,000Non Member Rs. 106,250Trimmed Size: 240(w) x 160(h) mmBleed Size: 246(w) x 166(h) mm

Front Inside Page (Full)Member Rs. 49,000Non Member Rs. 56,350Trimmed Size: 215(w) x 290(h) mmBleed Size: 221(w) x 296(h) mm

Full Page (Full)Member Rs. 31,000Non Member Rs. 35,650Trimmed Size: 215(w) x 290(h) mmBleed Size: 221(w) x 296(h) mm

Half Page (Half )Member Rs. 26,000Non Member Rs. 29,900Trimmed Size: 215(w) x 145(h) mmBleed Size: 221(w) x 151(h) mm

Quarter Page (Quarter)Member Rs. 21,000Non Member Rs. 24,150Trimmed Size: 215(w) x 97(h) mmBleed Size: 221(w) x 103(h) mm

Back Page Inside (Full)Member Rs. 49,000Non Member Rs. 56,350Trimmed Size: 215(w) x 290(h) mmBleed Size: 221(w) x 296(h) mm

Advertorial (Full)Member Rs. 37,000Non Member Rs. 29,000Trimmed Size: 215(w) x 290(h) mmBleed Size: 221(w) x 296(h) mm

Advertorial (Half )Member Rs. 29,000Non Member Rs. 33,350Trimmed Size: 107(w) x 290(h) mmBleed Size: 113(w) x 296(h) mm

Double PageMember Rs. 46,000Non Member Rs. 52,900Trimmed Size: 420(w) x 297(h) mmBleed Size: 426(w) x 303(h) mm

Category selected :

Please fill out this form and send it along with your advert to PGBF office.

Advertisement to be send as Ai (Adobe Illustrator), Tiff , or in high quality.

Fax this form to 021-35837419 orEmail [email protected]

Name: Signature:Date:

Name :

Company :

Job title :

Office address :

Phone :

Email :

Cell :

Technical Requirementsl JPEG / Ai / PDF Formatl Ai / Illustrator _ Text must beoutlined and saved togetherwith high-res pictures withpictures embedded.

l All format must be at least -300 dpi pictures and/orembedded pictures in Ai

l Films are not acceptable

MEDIA DATA 2014Advertisement Request Form


Documents

MESSAGEpgbf.com.pk/assets/user_assets/pdf-publications/2014/July...MESSAGE Contents Published by Pakistan German Business Forum in cooperation with the German Consulate General Karachi