Pakistan’s burgeoning youth have turned the nation into the world's fastest growing retail market.
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KARACHI:
After a long wait, Pakistan is finally going to start manufacturing mobile phones locally as five mobile companies are looking to set up their assembly lines in the country.
The development is set to attract foreign direct investment (FDI) worth millions of dollars and is expected to reduce the country’s growing import bill.
The companies that sought government’s permission to set up assembly lines include Haier, G5, Jio Phone, Mobo Mobiles and Foxconn.
Last month, the Pakistan Telecommunication Authority (PTA) issued guidelines for setting up assembly lines in Pakistan in a bid to step up the pace of digitalisation.
“We expect these companies to start manufacturing mobile phones in their plants soon,” a senior PTA official said.
“Mobile phone users in Pakistan are fast shifting to hi-tech products; of the 24 million mobile sets being imported in a year, almost half are smartphones,” he added.
Domestic manufacturing was expected to bring down phone prices and increase demand for smartphones, which would help achieve the goal of rapid digitalisation, he claimed.
China has been the hub of mobile phone manufacturing over the past one decade due to cheap labour. The resulting economic boom, however, has led to an increase in labour costs, which is also impacting cellphone prices in the international market
“The government should frame a policy to provide incentives to the brands establishing assembly lines in Pakistan,” suggested a Samsung official in an email reply to a query.
PTA has insisted that all devices assembled in Pakistan should have clear marking stating “Assembled in Pakistan”.
Establishment of the assembly plants is expected to create a ripple effect and help boost broadband adoption since more people will be able to afford smartphones
https://tribune.com.pk/story/1560609...ssembly-lines/
Pakistan emerges as top market for smartphones’
http://dailytimes.com.pk/business/26...or-smartphones
KARACHI: The usage of 3G/4G services is increasing at an impressive pace in various cities of the country, providing an opportunity to the people to adopt new ways of communication, education and infotainment through devices, especially mobile phones in Pakistan.
The acquisition of mobile broadband technology is the significant in Pakistan so as the adoption of smartphones making Pakistan as one of the fastest growing market in the region.
According to Pakistan Telecommunication Authority (PTA), some 42 million people are using 3G/4G services in Pakistan as compared to 140 million GSM phones in the country.
But the trend of switching from GSM to 3G and 4G technologies is rapidly increasing due to the popularity and availability of the services by mobile phone companies and smartphones by handsets makers.
A good smartphone having long life and advanced features are indispensible for gaining a useful experience of mobile broadband, hence brands of smartphones are increasing their presence in Pakistan with their advanced, high-tech and unique devices.
Pakistan is an interesting market and one of the top markets of the region in terms of volume for smartphone brands, commented Sharay Shams, General Manager for Smartphone, Lenovo Middle East.
The smartphone penetration is still below 50% and there is still a lot of feature phone/ non-3G/4G devices being used in Pakistan.” As the 4G coverage in Pakistan is increasing, there is a lot of growth potential in Pakistan and you will see it growing in years to come” Shams noted.
“My region comprises of Middle East, Turkey and Pakistan. I feel Pakistan is the number one volume market, but it is still low in terms of smartphone penetration,” he noted.
Most of the population here is in the youth category, below the age of 30, which is a sign that there will be massive digital transformation ahead. Besides, Pakistani consumers are internet savvy showing a good scope of growth for smartphone brand, Shams observed.
Over the last 2-3 years the smartphone penetration has gone up from almost 30% to about 50% for smartphone brands, he mentioned.
Talking about his experience, Shams said “We aim to bring the right product to the market at the right price point for the consumer, and do customized marketing relevant to the local market trends and needs”.
The smarthphones in the prices range of Rs10,000 to Rs20,000 is the biggest in Pakistan due to affordability factor. Some 35% of the smartphone users in Pakistan carry a low cost phone for safety reasons.
Keeping in view the purchasing power of the local population, he said Lenovo has marketed wide range of products starting from Rs 15,000 all the way up to Rs 75,000 thus addressing all the key price segments of the Pakistani market. “The Pakistani market has a good association and acceptability of the Motorola brand and the aim is to re-ignite the brand in this region”, Shams added.
Talking about future demand trends in Pakistan, he expressed optimism, saying: “In October, we will bring range of products in Pakistan. We will bring the Moto E Family, the Moto E and E plus. The Moto E is about the finger print technology and Moto E plus is with a big battery of 5000 (which is almost 2 days of battery life).”
According to data some 68% of the smartphone users in Pakistan are on Android. 77 % users are just 21 to 30 years old, and 60% of the Pakistani’s use more than one cell phone.
3G/4G Users in Pakistan Reach 44.49 Million
https://propakistani.pk/2017/09/29/3...44-49-million/
The number of 3G and 4G users in Pakistan reached 44.49 million by the end of August 2017 against 42.998 million by end July 2017, said Pakistan Telecommunication Authority (PTA).
The number of mobile phone users in Pakistan reached 139.97 million by end of August 2017 compared to 139.781 million by end of July 2017, which registered an increase of 189,008 during the period under review.
Jazz & Warid
Jazz’s total count for 3G users stood at 13.191 million by end of August 2017 compared to 12.533 million by end July 2017, registering an increase of 657,733. Jazz 4G user numbers jumped from 953,743 in July to 1,236,307.
Zong
Zong 3G subscribers increased to 8.77 million by the end of August 2017 compared to 8.686 million by July, while the number of 4G users jumped from 4,418,333 by end July to 4,573,970 by the end of last month.
Telenor
The number of 3G users of Telenor network also increased from 10.531 million by end July 2017 to 10.568 million. Like others, the number of 4G users jumped sharply, from 724,157 in July 2017 to 849,139 by the end of August 2017.
Ufone
Ufone added 148,075 3G users on its network during the month of August as the total reached to 5.298 million by the end of August against 5.150 million in July 2017.
Mobile User Teledensity
Teledensity for cellular mobile reached 70.25 percent and broadband subscribers reached 46,868,237 by the end of August as compared to 45,500,756 in July 2017.
New Mi store in Faisalabad
Telecom Sector Adds Rs. 583 Billion to National Treasury
https://propakistani.pk/2017/07/14/t...onal-treasury/
The telecoms sector, a significant source of revenue generation, has contributed around Rs. 582.95 billion to the national exchequer during the last three and a half years.
Major telecom contribution of Rs. 243.28 billion to the national kitty was registered during the year 2013-14 while 2014-15 witnessed a contribution of Rs. 126.26 billion.
Similarly, during 2015-16, the telecom sector contributed Rs. 159.65 billion while the first two quarters of 2016-17 brought Rs. 53.76 billion in.
Sources at Pakistan Telecommunication Authority (PTA) on Thursday said the contributions comprised all PTA’s receipts including Initial and Annual License Fees, Annual Radio Frequency Spectrum, Spectrum Administrative Fee, Universal Service Fund (USF) and Research & Development Fund Contributions, APC for USF, Numbering Charges, License Application fee etc. The others included Custom Duties, With Holding Tax (WHT) and other charges.
The sources said the commercial launch of 3G and 4G services has opened new opportunities for revenue generation for the mobile operators.
Availability of 3G and 4G services has enabled development of new applications and database services, and people of Pakistan are quickly adapting to these new technologies and services.
Moreover, the sources said there has also been a consistent growth in Information Technology (IT) remittances over last decade at a Compound Annual Growth Rate (CAGR) of around 23 per cent. There has been an impressive growth approximately 97 percent in IT remittances over last four years.
Hence, Pakistan’s IT exports are estimated to have crossed $ 2.8 billion a year at present as per estimation standard of Bearing Point. Annual domestic revenue is around $500 million. Total revenue of the national IT industry is estimated to be around $3.3 billion a year at present.
Pakistan Ranks Closer to USA for Average 4G Speeds: Survey
https://propakistani.pk/2017/06/07/p...speeds-survey/
Pakistan’s 4G users experience an average speed of 11.71Mbps on local 4G networks, which is just below USA’s average speed of 14.99Mbps, reported OpenSignal in its latest network report on 4G services.
According to a comprehensive survey, which is based on billions of tests conducted from several thousand devices, Pakistan ranks higher than Saudi Arabia, Bahrain, Argentina, Iran, India and Indonesia in terms of 4G average speeds.
Report said that highest average speeds for 4G networks were recorded in Singapore that stood at 45.62 Mbps. South Korea won the second slot while Hungary was third for the highest average 4G speeds.
OpenSignal said that more than half of Pakistani population had access to 4G services at the time of survey. It said that 4G is accessible to 53% Pakistanis but didn’t say where 4G coverage was available geographically.
Wi-tribe & Huawei collaborate to deliver advanced 4.5G LTE network in Pakistan
https://www.techjuice.pk/wi-tribe-hu...k-in-pakistan/
Wi-tribe has announced a $15 million contract and strategic partnership with Huawei of China for advanced upgradation of LTE.
This contract is a part of $50 million investment program of wi-tribe. ProPakistani reported that the upgraded version of LTE is also billed as 4.5G and that wi-tribe has already signed Huawei to deploy it in at least five cities. It will be capable of delivering speeds of up to 100Mbps per household within the next few months which will be raised to 200Mbps per household by the end of 2018 and 400Mbps by 2019.
Joint Statement from Hasan Bokhari HB Group Chairman and Owner of wi-tribe & Shahid Malik Chairman of the wi-tribe Advisory Board states,
“We are excited to formally announce that after taking a number of key strategic initiatives in recent months such as the $multi-million spectrum upgrade in August, we have now agreed a $15 million contract and long term strategic partnership with Huawei of China. This investment and partnership will secure Wi-tribe’s future as the leader in Pakistan’s fast changing fixed internet and technology market for the next 5+ years.”
In a saturated market of broadband services, wi-tribe wants to be the game changer and leader of this industry. It aims to deliver the fastest LTE services. The LTE equipment will be imported from Hong Kong.
“It is also great news for Pakistan because our LTE Advanced upgrade investment is not only the first of its type in Pakistan, but also the first 3.5 GHz deployment in South Asia and the Middle East. Hence, we can truly say that for the first time in our history we are today technology pioneers not just in Pakistan but also across a whole region – a fact that should make us all feel proud to be part of the Wi-tribe family.
Despite our $multi-million investments in Wi-tribe, we are committed not to take a single dollar in profit out of the business for the first 3 years of operations and instead we are committed to investing $millions more into the business.”
They expect LTE-A, A for Advanced, to be fully operational by June 2017. They intend to offer competitive packages with unparalleled technology, speed and reliability and best customer support.
Wi-tribe is an internet service and payment solution provider of Pakistan which operates in Islamabad, Rawalpindi, Lahore, Karachi and Faisalabad.
Jazz Pakistan inaugurates its state-of-the-art Network Operations Center
In line with its commitment to going digital, Jazz inaugurated its state-of-the-art Network Operations Center (NOC), which will utilize IBM and Dell EMC solutions to provide optimal network quality, and unique customer experience, while also improving overall operational performance.
The facility provides 24/7×365 network surveillance across Fault Management, Real-time Performance Management, Change Management, Access Management, and Customer Support for Jazz’s fixed and wireless businesses.
Speaking at the inauguration, Hassan Ali – Head of NOC – Jazz, said, “By investing on a world-class NOC, our aim is to build a more efficient and competitive organization, which will provide unparalleled customer experience in today’s fast paced world.”
This latest NOC is optimally managed to support speedy customer facilitation for quicker complaint resolution and support. This is also made possible through complete automation allowing for proactive monitoring and management of end to end network and services layer.
‘Govt will soon launch 5G services for the public’
KARACHI:
The government will soon be launching 5-G mobile broadband technology for commercial purposes, said Minister for Interior Ahsan Iqbal on Tuesday.
Addressing a seminar on “China-Pakistan Economic Corridor Business Opportunities”, organised by the Federal Ministry of Planning and Development, he said that the government is committed to technology-induced development across the country.
https://tribune.com.pk/story/1582683...rvices-public/
These Pakistani students were chosen to to to CERN Laboratories in Switzerland, Pakistan is an associate member of CERN.
http://campus.mangobaaz.com/cern-pakistani-students/
After a long wait, Pakistan is finally going to start manufacturing mobile phones locally as five mobile companies are looking to set up their assembly lines in the country.
The development is set to attract foreign direct investment (FDI) worth millions of dollars and is expected to reduce the country’s growing import bill.
The companies that sought government’s permission to set up assembly lines include Haier, G5, Jio Phone, Mobo Mobiles and Foxconn.
Last month, the Pakistan Telecommunication Authority (PTA) issued guidelines for setting up assembly lines in Pakistan in a bid to step up the pace of digitalisation.
“We expect these companies to start manufacturing mobile phones in their plants soon,” a senior PTA official said.
“Mobile phone users in Pakistan are fast shifting to hi-tech products; of the 24 million mobile sets being imported in a year, almost half are smartphones,” he added.
Domestic manufacturing was expected to bring down phone prices and increase demand for smartphones, which would help achieve the goal of rapid digitalisation, he claimed.
China has been the hub of mobile phone manufacturing over the past one decade due to cheap labour. The resulting economic boom, however, has led to an increase in labour costs, which is also impacting cellphone prices in the international market
“The government should frame a policy to provide incentives to the brands establishing assembly lines in Pakistan,” suggested a Samsung official in an email reply to a query.
PTA has insisted that all devices assembled in Pakistan should have clear marking stating “Assembled in Pakistan”.
Establishment of the assembly plants is expected to create a ripple effect and help boost broadband adoption since more people will be able to afford smartphones
https://tribune.com.pk/story/1560609...ssembly-lines/
Pakistan emerges as top market for smartphones’
http://dailytimes.com.pk/business/26...or-smartphones
KARACHI: The usage of 3G/4G services is increasing at an impressive pace in various cities of the country, providing an opportunity to the people to adopt new ways of communication, education and infotainment through devices, especially mobile phones in Pakistan.
The acquisition of mobile broadband technology is the significant in Pakistan so as the adoption of smartphones making Pakistan as one of the fastest growing market in the region.
According to Pakistan Telecommunication Authority (PTA), some 42 million people are using 3G/4G services in Pakistan as compared to 140 million GSM phones in the country.
But the trend of switching from GSM to 3G and 4G technologies is rapidly increasing due to the popularity and availability of the services by mobile phone companies and smartphones by handsets makers.
A good smartphone having long life and advanced features are indispensible for gaining a useful experience of mobile broadband, hence brands of smartphones are increasing their presence in Pakistan with their advanced, high-tech and unique devices.
Pakistan is an interesting market and one of the top markets of the region in terms of volume for smartphone brands, commented Sharay Shams, General Manager for Smartphone, Lenovo Middle East.
The smartphone penetration is still below 50% and there is still a lot of feature phone/ non-3G/4G devices being used in Pakistan.” As the 4G coverage in Pakistan is increasing, there is a lot of growth potential in Pakistan and you will see it growing in years to come” Shams noted.
“My region comprises of Middle East, Turkey and Pakistan. I feel Pakistan is the number one volume market, but it is still low in terms of smartphone penetration,” he noted.
Most of the population here is in the youth category, below the age of 30, which is a sign that there will be massive digital transformation ahead. Besides, Pakistani consumers are internet savvy showing a good scope of growth for smartphone brand, Shams observed.
Over the last 2-3 years the smartphone penetration has gone up from almost 30% to about 50% for smartphone brands, he mentioned.
Talking about his experience, Shams said “We aim to bring the right product to the market at the right price point for the consumer, and do customized marketing relevant to the local market trends and needs”.
The smarthphones in the prices range of Rs10,000 to Rs20,000 is the biggest in Pakistan due to affordability factor. Some 35% of the smartphone users in Pakistan carry a low cost phone for safety reasons.
Keeping in view the purchasing power of the local population, he said Lenovo has marketed wide range of products starting from Rs 15,000 all the way up to Rs 75,000 thus addressing all the key price segments of the Pakistani market. “The Pakistani market has a good association and acceptability of the Motorola brand and the aim is to re-ignite the brand in this region”, Shams added.
Talking about future demand trends in Pakistan, he expressed optimism, saying: “In October, we will bring range of products in Pakistan. We will bring the Moto E Family, the Moto E and E plus. The Moto E is about the finger print technology and Moto E plus is with a big battery of 5000 (which is almost 2 days of battery life).”
According to data some 68% of the smartphone users in Pakistan are on Android. 77 % users are just 21 to 30 years old, and 60% of the Pakistani’s use more than one cell phone.
3G/4G Users in Pakistan Reach 44.49 Million
https://propakistani.pk/2017/09/29/3...44-49-million/
The number of 3G and 4G users in Pakistan reached 44.49 million by the end of August 2017 against 42.998 million by end July 2017, said Pakistan Telecommunication Authority (PTA).
The number of mobile phone users in Pakistan reached 139.97 million by end of August 2017 compared to 139.781 million by end of July 2017, which registered an increase of 189,008 during the period under review.
Jazz & Warid
Jazz’s total count for 3G users stood at 13.191 million by end of August 2017 compared to 12.533 million by end July 2017, registering an increase of 657,733. Jazz 4G user numbers jumped from 953,743 in July to 1,236,307.
Zong
Zong 3G subscribers increased to 8.77 million by the end of August 2017 compared to 8.686 million by July, while the number of 4G users jumped from 4,418,333 by end July to 4,573,970 by the end of last month.
Telenor
The number of 3G users of Telenor network also increased from 10.531 million by end July 2017 to 10.568 million. Like others, the number of 4G users jumped sharply, from 724,157 in July 2017 to 849,139 by the end of August 2017.
Ufone
Ufone added 148,075 3G users on its network during the month of August as the total reached to 5.298 million by the end of August against 5.150 million in July 2017.
Mobile User Teledensity
Teledensity for cellular mobile reached 70.25 percent and broadband subscribers reached 46,868,237 by the end of August as compared to 45,500,756 in July 2017.
New Mi store in Faisalabad
Telecom Sector Adds Rs. 583 Billion to National Treasury
https://propakistani.pk/2017/07/14/t...onal-treasury/
The telecoms sector, a significant source of revenue generation, has contributed around Rs. 582.95 billion to the national exchequer during the last three and a half years.
Major telecom contribution of Rs. 243.28 billion to the national kitty was registered during the year 2013-14 while 2014-15 witnessed a contribution of Rs. 126.26 billion.
Similarly, during 2015-16, the telecom sector contributed Rs. 159.65 billion while the first two quarters of 2016-17 brought Rs. 53.76 billion in.
Sources at Pakistan Telecommunication Authority (PTA) on Thursday said the contributions comprised all PTA’s receipts including Initial and Annual License Fees, Annual Radio Frequency Spectrum, Spectrum Administrative Fee, Universal Service Fund (USF) and Research & Development Fund Contributions, APC for USF, Numbering Charges, License Application fee etc. The others included Custom Duties, With Holding Tax (WHT) and other charges.
The sources said the commercial launch of 3G and 4G services has opened new opportunities for revenue generation for the mobile operators.
Availability of 3G and 4G services has enabled development of new applications and database services, and people of Pakistan are quickly adapting to these new technologies and services.
Moreover, the sources said there has also been a consistent growth in Information Technology (IT) remittances over last decade at a Compound Annual Growth Rate (CAGR) of around 23 per cent. There has been an impressive growth approximately 97 percent in IT remittances over last four years.
Hence, Pakistan’s IT exports are estimated to have crossed $ 2.8 billion a year at present as per estimation standard of Bearing Point. Annual domestic revenue is around $500 million. Total revenue of the national IT industry is estimated to be around $3.3 billion a year at present.
Pakistan Ranks Closer to USA for Average 4G Speeds: Survey
https://propakistani.pk/2017/06/07/p...speeds-survey/
Pakistan’s 4G users experience an average speed of 11.71Mbps on local 4G networks, which is just below USA’s average speed of 14.99Mbps, reported OpenSignal in its latest network report on 4G services.
According to a comprehensive survey, which is based on billions of tests conducted from several thousand devices, Pakistan ranks higher than Saudi Arabia, Bahrain, Argentina, Iran, India and Indonesia in terms of 4G average speeds.
Report said that highest average speeds for 4G networks were recorded in Singapore that stood at 45.62 Mbps. South Korea won the second slot while Hungary was third for the highest average 4G speeds.
OpenSignal said that more than half of Pakistani population had access to 4G services at the time of survey. It said that 4G is accessible to 53% Pakistanis but didn’t say where 4G coverage was available geographically.
Wi-tribe & Huawei collaborate to deliver advanced 4.5G LTE network in Pakistan
https://www.techjuice.pk/wi-tribe-hu...k-in-pakistan/
Wi-tribe has announced a $15 million contract and strategic partnership with Huawei of China for advanced upgradation of LTE.
This contract is a part of $50 million investment program of wi-tribe. ProPakistani reported that the upgraded version of LTE is also billed as 4.5G and that wi-tribe has already signed Huawei to deploy it in at least five cities. It will be capable of delivering speeds of up to 100Mbps per household within the next few months which will be raised to 200Mbps per household by the end of 2018 and 400Mbps by 2019.
Joint Statement from Hasan Bokhari HB Group Chairman and Owner of wi-tribe & Shahid Malik Chairman of the wi-tribe Advisory Board states,
“We are excited to formally announce that after taking a number of key strategic initiatives in recent months such as the $multi-million spectrum upgrade in August, we have now agreed a $15 million contract and long term strategic partnership with Huawei of China. This investment and partnership will secure Wi-tribe’s future as the leader in Pakistan’s fast changing fixed internet and technology market for the next 5+ years.”
In a saturated market of broadband services, wi-tribe wants to be the game changer and leader of this industry. It aims to deliver the fastest LTE services. The LTE equipment will be imported from Hong Kong.
“It is also great news for Pakistan because our LTE Advanced upgrade investment is not only the first of its type in Pakistan, but also the first 3.5 GHz deployment in South Asia and the Middle East. Hence, we can truly say that for the first time in our history we are today technology pioneers not just in Pakistan but also across a whole region – a fact that should make us all feel proud to be part of the Wi-tribe family.
Despite our $multi-million investments in Wi-tribe, we are committed not to take a single dollar in profit out of the business for the first 3 years of operations and instead we are committed to investing $millions more into the business.”
They expect LTE-A, A for Advanced, to be fully operational by June 2017. They intend to offer competitive packages with unparalleled technology, speed and reliability and best customer support.
Wi-tribe is an internet service and payment solution provider of Pakistan which operates in Islamabad, Rawalpindi, Lahore, Karachi and Faisalabad.
Jazz Pakistan inaugurates its state-of-the-art Network Operations Center
In line with its commitment to going digital, Jazz inaugurated its state-of-the-art Network Operations Center (NOC), which will utilize IBM and Dell EMC solutions to provide optimal network quality, and unique customer experience, while also improving overall operational performance.
The facility provides 24/7×365 network surveillance across Fault Management, Real-time Performance Management, Change Management, Access Management, and Customer Support for Jazz’s fixed and wireless businesses.
Speaking at the inauguration, Hassan Ali – Head of NOC – Jazz, said, “By investing on a world-class NOC, our aim is to build a more efficient and competitive organization, which will provide unparalleled customer experience in today’s fast paced world.”
This latest NOC is optimally managed to support speedy customer facilitation for quicker complaint resolution and support. This is also made possible through complete automation allowing for proactive monitoring and management of end to end network and services layer.
‘Govt will soon launch 5G services for the public’
KARACHI:
The government will soon be launching 5-G mobile broadband technology for commercial purposes, said Minister for Interior Ahsan Iqbal on Tuesday.
Addressing a seminar on “China-Pakistan Economic Corridor Business Opportunities”, organised by the Federal Ministry of Planning and Development, he said that the government is committed to technology-induced development across the country.
https://tribune.com.pk/story/1582683...rvices-public/
These Pakistani students were chosen to to to CERN Laboratories in Switzerland, Pakistan is an associate member of CERN.
http://campus.mangobaaz.com/cern-pakistani-students/
somebozo
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Pakistan needs long term investment in capital and r/d intensive industries to create long term knowledge based economy...such investment in retail are short term and typically all profits are repatriated..
Thanatos
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I happen to visit Pakistan few months ago, was stunned by development going on, mostly lead by private sector. However the gap between rich and poor was very evident. I think still a lot needs to be done. What Pakistan need to learn from past is to stay away from wars and global politics and focus on development of people and institutes. CPEC has been a blessing for the country, and would continue to do so at least in the next decade or so.
N.Siddiqui
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Right, R&D sector need home grown solutions, foreign players will not transfer the tech. to Pakistan and to lose their cutting edge. Some universities are doing this, but still not enough. Retail sector investment in Pakistan is mostly local, some foreign big brands here as well.
Telecom sector has attracted more than 21 billion USD in the last decade or so...leads the way.
Need to be more holistic and across the board, but some road map seems to be there, hazy though.
Hephaestus
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Lovely.
Reminds me of the Pulp Fiction scene..
nang2
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hope they also use their entrepreneurship to make Pakistan a manufacturing powerhouse in middle east.Pakistan’s burgeoning youth and their freewheeling attitude toward rising incomes have turned the nation into the world's fastest growing retail market.
The market is predicted to expand 8.2 percent per annum through 2016-2021 as disposable income has doubled since 2010, according to research group Euromonitor International. The size of the middle class is estimated to surpass that of the U.K. and Italy in the forecast period, it said.
Pakistan's improving security environment, economic expansion at near 5 percent and cheap consumer prices are driving shoppers to spend up big. Almost two-thirds of the nation's 207.8 million people are aged under 30, according to the Jinnah Institute, an Islamabad-based think tank.
“We have a new millennial shopper at hand. They don’t mind spending to have the kind of lifestyle they would like,” said Shabori Das, senior research analyst at Euromonitor. “It’s not like the Baby Boomer generation where savings for the future generation was important.”
Pakistan is bucking the trend in the U.S. -- where stores are closing at a record pace as e-commerce undermines bricks-and-mortar. It's also attracting foreign operators: Turkish home appliance maker Arcelik AS and Dutch dairy giant Royal FrieslandCampina NV entered the market last year via acquisitions. Meanwhile, Hyundai Motor Co., Kia Motors Corp. and Renault SA are all building plants in the South Asian nation.
Pakistan’s retail stores are expected to increase by 50 percent to 1 million outlets in the five years through 2021, Euromonitor said. Its three biggest malls, Lucky One in Karachi and Packages Mall and Emporium Mall in Lahore, opened in the past two years.
Pakistan is mirroring what India went through about four years ago. Both countries have young populations with more income and less inclination toward saving which is a distinct difference to what retailers elsewhere are dealing with, said Das.
https://www.bloomberg.com/news/arti...llennials-drive-world-s-fastest-retail-market
somebozo
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Telecom service sector which is also probably repatriating 100% profits...
A true telecome investment would be long term manufacturing sector such as Huawei setting up local plants..
N.Siddiqui
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Most of the FDI do that, repatriate a substantial proportion of their income, hence the myth associated to FDI should shift to local entrepreneurship and local investment. There is some HR investment and R&D investment in Telco sector in Pakistan, training and delegating tech. counts as this here, not real R&D though.
Hephaestus
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Middle East???
N.Siddiqui
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- Fintech’s silent revolution
Enticed by disruptive and yet innovative technology, the financial system is reorganising itself to regain its robust health, reduce costs and make its services more efficient and affordable after the 2008 crisis. Fintech is ushering in a silent revolution.
Its outreach is expanding and it now embraces activities that can be broadly categorised into: Lending tech, Payments tech (billing/remittance), Crypto currencies (bitcoin), Wealth Management (Robo advisors), Crowd funding, Insurance and Regtech (regulations).
Pakistan’s financial sector has responded to the challenges of applying these new technologies by strengthening its human resource and developing customer interface platforms. Most banks now have Chief Innovation Officers or Digital Initiative departments.
Various online Payment Systems and Mobile Apps have been developed to encourage footfall in branches.
The demand for a swift payment mechanism is evident from the quick adaption of digitisation efforts and rising e-commerce platforms. The latest State Bank’s Annual Performance Review states that “e-Commerce is picking up with 571 merchants offering their products online. During FY2017, 1.2 million transactions valued at Rs9.4 billion were processed through e-commerce”.
The SBP report further states that “25 financial Institutions provide internet banking and 18 have mobile apps. During FY17, 25.2m internet banking transactions were processed valuing at Rs969bn. Mobile banking accounted for 7.4m transactions valuing Rs141bn, representing an annual volume growth of 32 per cent and 12pc respectively”.
Pakistan’s financial sector has responded to challenges by strengthening its human resource and developing customer interface platforms
The slower uptake of mobile banking may be attributed to frequent technical errors. High speed internet connectivity is a much desired pre-requisite for internet and mobile banking.
Moreover, concerns of data hacking through misplaced/snatched phones are barriers in the mind of consumers.
To counter some of these issues, HBL is among the first to offer a biometrically enabled mobile app. Bank Islami has also recently launched its own biometric app.
To further tap this market, social advisory is also on the cards. Apps using location will be able to advise the user of the closest ATM, and the discounts that the banks provides. Currently, a tech start up is providing proximity discount alerts on HBL’s mobile app.
The other aspect gaining traction is the process re-engineering to increase efficiency. For example, a Letter of Credit can soon be opened electronically, reducing the time from three days to four hours.
Similarly, FIs are also simplifying the process of getting a basic, low transaction volume account through biometric verification in just an hour or so. This is the first step towards financial inclusion.
Bank Islami has recently launched its biometric banking, enabling opening accounts with biometric impressions. Given the large segment of the population seeking Shariah-compliant financial services, the product may have better penetration.
However, globally the discussion isn’t about process reengineering, it’s about change in the model itself.
Conversations on tapping digital stamp on trading goods and services and cash management terminal access to clients are some of the examples. For large international customers, cash management and foreign exchange swaps are now being traded through the company’s own terminals — making them the most affected revenue streams for financial institutions. The gurus in the field are hinting at digital platforms, making the current model redundant.
In the context of Islamic financial institutions, this presents a tremendous opportunity as they don’t have a legacy problem. Islamic banks can develop Shariah compliant products more in line with their way of doing business.
One such low hanging fruit is auto and housing finance, if digitisation efforts for quicker turnaround and greater reach are introduced.
Crowd funding, which is perhaps closest to Islamic financial institutions’ mode of doing things, is not encouraged by the regulator as various Modaraba scams have burnt consumers’ fingers. Little work has been done and, even in better regulated jurisdictions like Singapore, Malaysia and the UK, there are only a few Islamic Crowd funding platforms.
A challenge faced by Islamic banks is the increased spending on research and development which is already high due to cost of training personnel and product development needs.
The harbingers of innovation in the financial sector are the non-financial telecoms with huge data of biometrically verified customer base and their payment history. Telecoms are already offering payment services and telebanks micro-credit services.
The use of m-wallets (over 27m as of June 2017) for microfinance lending is also being experimented with. However, given the upper limit of Rs 50,000 for SMEs, telco banks may be entering into traditional bank’s space and may give them a tough competition.
On the collection side, there is a need for the financial sector to develop products so as not to lose out to some unconventional sectors. In China, for example, Alipay (a company of Alibaba) has created a money market fund from the change left in the accounts after payments. Perhaps companies like Careem can do the same, given the scale and regulatory support in due course.
Beyond banks, Al Meezan Investment’s app lets you draw funds out of your mutual funds account and credit to your Meezan bank account which can be withdrawn at the ATM within half an hour. This in principle serves as an alternate to keeping ready cash/deposit with the banks.
On the technology side, there are several Fintech startup firms in Pakistan. However, according to Mr Rehan Akhtar, Director Digital Financial Services, Karandaz, a lot of Fintech start-ups need to build deeper understanding of financial system to be able to disrupt them adequately with their solutions.
Data is another aspect of technological development. Some large financial institutions are hiring Data Analytics teams and software specialists to assess, innovate and design new product offerings. Needless to mention, collaboration is the buzz word here.
With estimated ownership of 40 million smart phone users and 120 million millennials as per various press reports, the growth in this field is unprecedented. Dynamic changes in the job environment and skill set demands that educational institutions also respond and upgrade curriculums. Synthesising the subject matter with technology driven programmes may give students a competitive edge in exciting times to come.
The writer is Senior Manager at IBA Centre for Excellence in Islamic Finance.
sahson@iba.edu.pk
Published in Dawn, The Business and Finance Weekly, December 18th, 2017
Pakistan’s economy to grow at 5.9 percent over medium-term, predicts: World Bank
LAHORE: World Bank released its “Global Economic Prospects” report on Tuesday revealing growth slowed down in South Asia to 6.5 percent during 2017.
In respect to Pakistan, the WB report said, “growth continued to accelerate in FY2016/17 (July-June) to 5.3 percent, somewhat below the government’s target of 5.7 percent as industrial sector growth was slower than expected.”
“Activity was strong in construction and services, and there was a recovery in agricultural production with a return of normal monsoon rains. In the first half of FY2017/18, activity has continued to expand, driven by robust domestic demand supported by strong credit growth and investment.”
According to the report, fiscal consolidation slowed down in Pakistan due to increased government spending and revenue shortfalls, accompanied by rises in current account deficit. Inflation remained at a historic low across the region barring Sri Lanka where a drought caused a spike in prices.
WB forecast growth for Pakistan to pick up to 5.5 percent in FY2017/18, and reach at an average 5.9 percent a year over the medium term on the back of continued robust domestic consumption, rising investment, and a recovery in exports.
Highlighting the risks to this outlook, said domestic and fiscal slippages could hamper economic growth in Pakistan. It added “as an external risk, an abrupt tightening of global financing conditions or a sudden rise in financial market volatility could set back regional growth.”
Furthermore, rising contingent liabilities linked to infrastructure projects in Pakistan, slippages related to upcoming elections, weak tax revenues could forestall fiscal consolidation efforts, read the report.
Also, “weaker debt sustainability could weigh on confidence, financial markets and already-weak investment” in South Asia, the report noted.
https://profit.pakistantoday.com.pk/...ts-world-bank/
Kallisto Multi level restaurant Islamabad/Rawalpindi Bahria Town.
The restaurant evokes a sense of nostalgia for remnants of past cultures, with nods to the paleolithic, roman and egpytian eras. Offers a spectacular view of Bahria Town’s sprawling hill suburbia.
The Coffee Bean & Tea Leaf Officially Launch in Pakistan
The Coffee Bean & Tea Leaf is the newest addition to Pakistan’s rapidly growing café culture, launched by entrepreneurs Usman Yousuf and Adnan Azam.
The grand opening of its first store in Pakistan took place on 1st of December, 2017 at Mount View Plaza, F-6, Islamabad.
Marketing team Eikon7 and PR agency Rezz PR and Events both organized the event. An official ribbon cutting ceremony by Mayor Sheikh Ansar Aziz marked the occasion.
There were also appearances by many renowned personalities from Islamabad’s elite, including Momina Mustehsan and host Natasha Hussain.
“It’s been a long time since such a big lifestyle brand such as The Coffee Bean & Tea Leaf has launched in Pakistan,” stated the Mayor of Islamabad.
I’m glad they have chosen Islamabad as their launching pad. It’s a truly fantastic store offering a premium marquis experience – a little piece of Los Angeles under the Margallas! I’m hoping to see more Coffee Bean stores open in our city.
Born and brewed in Southern California since 1963, The Coffee Bean & Tea Leaf is heralded as the oldest and largest privately-held specialty coffee and tea retailer in the world, with over 1200 stores across 31 countries today.
It has immediate plans of launching next in Olympus Mall, Islamabad, as well as in Packages Mall and Main Boulevard Gulberg, Lahore. The company has plans of opening 30 stores all across the country in the next 5 years, all owned and operated by the master franchisee to maintain quality and standard.
The Coffee Bean & Tea Leaf is committed to sourcing and roasting the top 1% of Arabica beans, and serving over 20 handpicked whole leaf teas, all from small farms and private estates in East Africa, Latin America and the Pacific.
Its philosophy is to “respect every Bean” and create a social hub where customers can relax and enjoy in a casual, friendly Southern California environment.
It is especially known for concocting the signature ‘Ice blended’ drink, variations of which are now offered at other coffeehouses as well around the globe. The brand is especially a favourite in Hollywood, catering to the likes of Johnny Carson, David Beckham, Madonna and Eddie Murphy.
The Coffee Bean is truly international. The coffee and teas are picked from across the world, roasted in LA and ground in best-in-class Swiss equipment, pulled in an Italian “Ferrari of coffee machines” with water that comes from a world-class filtration system and served in mugs from Korea.
Their chocolate and cocoa comes from Belgium and Switzerland, the butter from France, and the flour from Dubai. As for the people, the trainers are from Malaysia and the Baristas are 100% pure Pakistani.
313ghazi
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Not being from a big city in Pakistan myself, my view of it is skewed. The levels of investment in infrastructure in AJK are really poor. We only really get as far as the airport in Pakistan. I recently realised this isn't the case in all of Pakistan. I was following a guy on snapchat because he's funny and i came across him on twitter. I don't know this person, i just enjoy his humour. I watched his snapchat videos and assumed he was living in the US. It slowly dawned on me that this guy is living in Karachi! I was surprised to see this completely modern lifestyle in Pakistan. Hopefully in my next visit i can visit some of the bigger cities and see it for myself.
I didn't want to sound negative but the same things worry me. I also wonder if a lot of the yuppie (young urban professional) spending is fueled by not being able to afford things like houses and apartments. How affordable is that sort of thing to the young urban professional Pakistani? In the UK it's difficult to attain so people do spend quite a bit of their income on things like holidays and phones, designers, eating out etc because the idea of being home owners is really difficult to attain.
I didn't want to sound negative but the same things worry me. I also wonder if a lot of the yuppie (young urban professional) spending is fueled by not being able to afford things like houses and apartments. How affordable is that sort of thing to the young urban professional Pakistani? In the UK it's difficult to attain so people do spend quite a bit of their income on things like holidays and phones, designers, eating out etc because the idea of being home owners is really difficult to attain.
No it does not. You see all kinds in these stores, that is the point. We have always had such stores and outlets, but they served as you said, a small elite. Whats changed is now that these are MASS MARKET businesses. My parents maid buys Khaadi. She is a poor woman. She still will buy the occassional dress from there.
The difference between her and my sister (a banker) is that most of my sister's stuff comes from there, while its only that lady's "best", but again its within the pockets of the masses.
Myth_buster_1
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Well your maid is exceptional case, not every other maid can afford to have khaadi cloths.
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