General situation
COVID-19 indicators in Pakistan are presenting a definite slowdown in Pakistan. Except for large indoor functions, the social and commercial lockdown has grown. Pakistan `Educational companies have opened progressively with SOPs in place. Limitations while traveling by train and airlines are partially lifted since 1st October.
Preventive measures
The COVID-19 numbers show a slowdown. Screening at the airports wanted masks in public places, and a ban on large indoor social groups is but imposed. The government has started performing a “micro-smart lockdown” strategy. Preparing for the likely resurgence of COVID-19 cases in Pakistan, authorities have included new limitations on wedding receptions, including checking the number of fellows to 300 (indoor gatherings) and 500 (outdoor gatherings) and reducing the term of the events to 2 hours.
Exit strategy
The government has confirmed the new Gwadar Airport project at the more precious than the first cost review. Abroad grant funding for the project comes from Oman and China. The share of the Chinese honor in the entire construction cost is 63.3%.
The State Bank of Pak, in partnership with the Naya Pakistan Housing & Development Authority, has announced the allocation of PKR 33 Billion for payment of margin support for financing directed at the construction and selling of new houses.
As a symbol of progressive business agreement post-COVID-19 lockdown, banks have reported an increase in new property in September 2020 after successively holding back accommodations from borrowers in the first three months.
In November, Pakistan has voted to open up the LNG market for the private sector to reduce business risks for the government and enhance gas stores through the winter period. The secret member will be allowed to import LNG from November 2020 to February 2021.
Economic force
Related to the Pakistan Automotive Manufacturers Association rules, car sales rose by 18% to 13,882 parts in September 2020, matched to 11,724 units in the same period. Sales of Atlas Honda and Indus Toyota showed an increase of 106% and 87%, individually, in September 2020. Sales of Pak Suzuki descended by 20% from 8,157 units last year to 6,491 units throughout in September 2020.
The online cab-hailing and food purchase company, Careem, has declared that it will boost its workers to work remotely from home. The company currently has 0.5 million cars and two-wheeler engineers in Pakistan. Careem has acquired US$ 80 million in Pakistan, with a complete workforce of about 450 workers.
The ‘World Economic Outlook’ report by the (IMF) divined a bleak outlook for the Pakistani economy, declaring that it would only grow by 1%, an increase may cross above 10%, and the lay-off rate could further jump by the end of the current fiscal year. According to the FMI report, Pakistan’s earnings, which contracted by 0.4% last FY, is projected to rise by 1% during the current FY, which is less than the real dummy of 2.1%.
In a recent recall, the CEO of the state-owned Pakistan International Airlines (PIA) has announced that the airline has experienced a loss in the current year due chiefly to the COVID-19 related lockdown and discontinuing of services.
The growth of the large-scale development (LSM) industries slowed down to 1.2% in August 2020. The LSM had sector recorded a 5% YoY growth last month. Still, 8 out of 15 major industries showed negative production, while seven enterprises showed a 2% to 15% growth on a YoY foundation. Sectors that posted positive growth added Textiles, non-metallic metals, humus, food, tobacco and drinks, elements, paper & board and rubber products. Industries that recorded a decline in a generation are coke and oil, pharmaceutical, iron and steel products, automobiles, electronics, leather funds, engineering goods and wood outcomes in August 2020 on a YoY basis.
Economic outlook
The first British Airways soaring to Lahore in higher than 40 years came last week, marking a resumption of direct flights between Heathrow and Lahore.
FDI in Pakistan hit a 6-month high at US$ 189 million as funds inflows assigned to different sectors, individually in oil and gas research and energy generation. However, the FDI descended by 24% in the first portion of the current FY matched to US$ 545.5 million in the same period last year. Notable investors are Norway, China, Hong Kong, Malta, and the Netherlands. The potential sector brought the most FDI of US$ 113.3 million, followed by financial business and oil and gas research during the 1st quarter of the current FY.
Short term opportunities
Flemish troops write to the post to develop the grounds for opening the market when Pakistan normalizes again. Pakistani systems have started reaching this office with new trade leads, which continue to FIT.
Long term opportunities
Apart from the healthcare & healing and building & construction divisions, the long-term opportunities for Flemish lands would depend on the offer and expertise of the Flanders area, which is already well appreciated in Pakistan (steel, metals, chemicals, raw supplies, industrial appliances, and goods, etc.)
Dossier Coronavirus
The coronavirus has global contact, not only on health but also on the market place. Your shipping may also be affected or even hindered. FIT controls the ventures daily, and our foreign network notifies you about all the implications for Flemish exporters on their foreign activities.