R&D presentation

1. Karachi Chamber of Commerce and Industry - KCCI
“Pakistan”
A COUNTRY of IMMENSE POTENTIAL &
OPPORTUNITIES
June 2015
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Prepared By: KCCI Research & Development Cell

2. Scope of presentation
 Strengths and potential of Pakistan
 Strategic importance in the world
 Twin Deficits as main hurdles in growth
 Pakistan’s trade situation
 Growth potential in sectors
 Strategy and way forward
Prepared By: KCCI Research & Development Cell
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3. Pakistan has it all….
Prepared By: KCCI Research & Development Cell
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Agriculture
Livestock
Natural
Resources
Industry
Energy
Sources
Infra-
structure
Tourism
Services

4. Potential of Pakistan - Agriculture
Cotton
• 12-13Mn bales
production.
Cereals
• wheat, rice, maize,
barley, oats, rye,
millet and mixed
grains
Fruits &
Vegetables
• Mangos, Mandarin,
guava, apricot, dates
• Sugarcane, Onion,
Potatoes, chickpeas
etc.
Spices
Turmeric, garlic, chili
pepper, coriander etc.
Prepared By: KCCI Research & Development Cell
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5. Potential of Pakistan – Livestock
Cattle & dairy
38Mn cattle, 34Mn
buffaloes, 29Mn
sheep, 65Mn goats &
1Mn camels produce
~50Mn tons of milk
Poultry
700Mn poultry
Poultry meat
constitutes 25% of
total meat
production
0.9Mn tons of
poultry meat & 14Bn
eggs
Fish
531 species of which
233 of fresh water
Mahasher is the
national fish of
Pakistan
Wildlife
Leopard, bear, otter,
wolf, lynx, ibex,
markhor, peacock,
Marcopolo sheep, musk
deer, partridge, rhesus
monkey, red fox, flying
squirrel, chakor, Indus
dolphin, turtles &
snakes
Prepared By: KCCI Research & Development Cell
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6. Potential of Pakistan - Agriculture
Areas to focus
Use of technology for farming
Storage &warehousing
Automobiles &Autoparts
Logistics
Certification
Value addition
Monitoring &planning
Training skill sets
Packaging & marketing
Integrationof activities
Prepared By: KCCI Research & Development Cell
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7. Potential of Pakistan - Industry
Large Scale
Manufacturing
Mining &
Quarrying
Medium Scale
Manufacturing
Cottage Industry
Textiles apparel andarticles
Leather articlesof leather
Automobiles &Autoparts
Pharmaceuticals
Chemicals & dyes
Metallurgy, steelandallied
Food processing
Consumer goods
PetroleumE&P & refining
Constructionmaterials
Fertilizers
Gems & Jewelry
Furniture andhome décor
Sports goods
Prepared By: KCCI Research & Development Cell
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8. Potential of Pakistan – Natural Resources
Copper & Gold, Iron,
Aluminium (Bauxite),
Chromite, Manganese,
Celestite, Zinc, Lead,
Phosphates, Antimony,
Magnetite
Metals
• Crude oil recov. reserves of
342Mn bbl or 46Mn TOE
• Natural gas reserves of 23
TCF or 495Mn TOE
• Huge shale oil (33Bn TOE)
& gas (16Bn TOE) reserves
Oil & Gas
• 64 types of Marble,
Granite, Gypsum,
Limestone, Kaolin
• Barite, Dolomite, Feldspar,
Silica sand
• Emerald, Ruby, Pink Topaz,
Peridot, Green Ruby,
Aquamarine, Tourmaline,
Moonstone, Epidote,
Zircon, Turquoise
Marble & stones
• Thar coal total est. reserves
of 175.5Mn Tons
• Khewra Salt Mines reserves
estimated up to 600Mn
Tons
Salt & coal mines
Prepared By: KCCI Research & Development Cell
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9. Potential of Pakistan
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10. Potential of Pakistan – Energy Sources
•Dams - 25 operational,
22 under const., 46
proposed
•Potential of 50,000
MW – production
~7,000 MW
Hydel
•787 MW Capacity
•3 under const. of 2800
MW & 3 proposed of
3000MW
Nuclear
• Coastal belt has power gen.
potential of 50,000 MW
through wind & 340,000
MW across Pakistan
• 48 wind projects of 3,200
MW in process
• Solar Energy - 1000 watts
/m2
• Waste to energy (Karachi
9000 tons/day)
Renewable Energy
• Potential of >10,000 MW
from Thar, Lakhra & Sonda
Jharak.
• ~40% gen. through oil
source.
Coal, oil & gas
Prepared By: KCCI Research & Development Cell
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11. Potential of Pakistan – Infrastructure
Makran coastalHW,
KarakoramHW, Grand
Trunk and Silk roads.
Rail, road & Bridges
Motorways M1, M2,
M3
Airports &Seaports
148 Airfields including
•13 International
Airports
Transmission&
Distribution
Karachi& Gwadar
ports, PortQasim, Port
of Pasni, KICT, PICT.
Dams & barrages
Prepared By: KCCI Research & Development Cell
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12. Potential of Pakistan – Tourism
Kaghan, Shangla,
Neelam, Skardu,
Hunza, Chitralvalleys
etc.
Mountains &valleys
Forests (4%) of Pakistan
are a main sourceof
food, lumber, paper,
fuel wood, latex,
medicine as well as for
wildlife conservation
and ecotourism
Greenplains & forests
Moen-jo-Daro,
Harappa, numerous
historicalmonuments
Heritage &historical
landmarks
Pakistan has a coastline
stretched over 240,000
Km2
Resorts &sealeisure
Prepared By: KCCI Research & Development Cell
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13. Potential of Pakistan – Services
IT and
Software
experts
Technicians
& Artisans
Scientists &
Educationist
s
Hard work
Labor
Prepared By: KCCI Research & Development Cell
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14. Pakistan's Rankings in the World
Gwadar-Largest Deep Sea Port - 1st
Khewra Salt Mine - 2nd
K-2 MountainPeak - 2nd
Milk Producer (Buffalo) - 2nd
Milk Producer (Goat) - 3rd
Rice Exporter - 3rd
Coal Reserves - 3rd
Cotton Lint Production - 4th
Dates Production- 5th
Reko Dig Gold & Copper Mine – 5th
Wheat Producer - 7th
Textile Exporter in Asia - 8th
Shale Oil Resources - 9th
Prepared By: KCCI Research & Development Cell
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15. Strategic location of Pakistan
Pakistan has potential to develop transit economy due to its strategic
location
*It is located adjacent to energy richcountries of Central Asia & Iran
*China finds way to Indian Ocean and Arabian sea through Karakoram
highway
*Pakistan offers central Asian regions the shortest route
Prepared By: KCCI Research & Development Cell
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16. Twin deficits dragging economic growth
Pakistan despite being a blessed nation struggles on
economic front
Fiscal and trade deficit are main hurdles to growth
Dire need to do away with deficits
Strategy of managing resources is required
The World visualizes Pakistan amongst the fastest growing
emerging economies!!
Prepared By: KCCI Research & Development Cell
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17. Managing The Fiscal Deficit
(2,000)
(1,000)
-
1,000
2,000
3,000
4,000
5,000
FY08 FY09 FY10 FY11 FY12 FY13
PKRBn
Revenue Vs. Expenditure
Fiscal Deficit Total Revenue Collection Total Expenditures
Source: KCCI Research, MoF
Prepared By: KCCI Research & Development Cell
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18. Managing The Fiscal Deficit
-
1,000.0
2,000.0
3,000.0
4,000.0
5,000.0
6,000.0
FY08 FY09 FY10 FY11 FY12 FY13
PKRBn
Development Vs. Non-Development Expenditures
Development Expenditure Non-development Expenditure Total Expenditure
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Prepared By: KCCI Research & Development Cell

19. Managing The Fiscal Deficit
FY08 FY09 FY10 FY11 FY12 FY13
-
2,000.0
4,000.0
6,000.0
8,000.0
10,000.0
12,000.0
14,000.0
16,000.0
18,000.0
External Vs. Domestic Debt
Domestic Debt External Debt Total Debt
PKRBn
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Prepared By: KCCI Research & Development Cell

20. Managing the Trade Deficit
-20.00
-10.00
0.00
10.00
20.00
30.00
40.00
50.00
FY08 FY09 FY10 FY11 FY12 FY13
$Bn
Exports Vs. Imports
Trade Deficit ($ Bn) Exports ($ Bn) Imports ($ Bn) Source: KCCI Research, SBP
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Prepared By: KCCI Research & Development Cell

21. Pakistan's Trade Snapshot
China
12%
Saudi Arabia
10%
U. A. E. Dubai
10%
Kuwait
9%
Singapore
8%Malaysia
4%
India
4%
Japan
4%
U. A. E.
Abudhabi
3%
U. A. E. Fujairah
3%
U. S. A.
3%
Germany
2%
U. K.
2%
Others
26%
Pakistan's Import from the World (FY13)
Source: KCCI Research, SBP
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Prepared By: KCCI Research & Development Cell
America
18%
Western
Europe
23%
Eastern Europe
2%
Middle East
16%
Africa
7%
Asia
33%
Others
1%
Pakistan's Export to the World (FY13)
Source: KCCI Research, SBP

22. Pakistan's Trade Snapshot
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Prepared By: KCCI Research & Development Cell
Textile
54%
Manufactur
es
20%
Food
17%
Others
6%
Petroleum
3%
Pakistan'sExports - FY13
Textile Manufactures Food Others Petroleum
Source: KCCI Research, SBP
Petroleum
39%
Agri. &
Chemical
18%
Machinery
11%
Food
11%
Textile
7%
Metal
7%
Transport
5%
Miscellanou
s
2%
Pakistan'sImports-FY13
Source: KCCI Research, SBP

23. Potential Growth Sectors
Energy sector including coal and renewable
energies
Logistics and infrastructure
Increasing agriculture and livestock yields
through use of modern techniques
Halal food market
Processing of wide ranging agriculture
products
Warehousing and cold storage
Promotion of export of value-added
commodities (handicrafts, processed food,
etc.)
Enhancing capacity or upgrading cottage
industry to Medium Enterprise and so on
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Prepared By: KCCI Research & Development Cell

24. Lets make a better Pakistan together!!
Private sector development is critical for
economic growth and poverty reduction
Policies and measures should focus on a
conducive business and investment climate
Focusing on broadening of tax base
Increase tax revenue through increased
corporate profits
Build strong infra-structure
Efficiently utilize available resources
Plugging the missing links in the value chain
Security to human lives, public and private
properties must be ensured
Develop technologies and skill sets
Take all stakeholders on board for devising
growth plan for the country
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Prepared By: KCCI Research & Development Cell

25. UNITY, FAITH & DISCIPLINE
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In describing the Government’s policy with regard to the
role of private enterprise, Father of the Nation Quaid-e-
Azam Muhammad Ali Jinnah told the Meeting of the then
Karachi Chamber of Commerce held in 1948:
“Government will seek to create conditions in which
industry and trade may develop and prosper …
Commerce and Trade are the very lifeblood of the
nation. I can no more visualize a Pakistan without traders
than I can one without cultivators and civil servants. I
have no doubt that in Pakistan, traders and merchants
will always be welcomed”
Prepared By: KCCI Research & Development Cell

26. Pakistan Zindabad
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Prepared By: KCCI Research & Development Cell