The abundance of centralised shopping areas has led to a change in the social aspect of shopping: shoppers who previously frequented open markets now head to malls for a one-stop shopping experience. Such shopping malls also create a flaming aura of glitz and glamour, attracting wealthy customers like moths and encouraging them to spend from their wealth, helping many businesses grow.

Lahore, the provincial capital of Pakistan’s most populous province, has a number of malls that cater to all imaginable clothing needs under one roof, making it easy for customers to find all they require in one place. Whereas people previously headed to unorganised shopping centres and renowned open markets for their clothing needs, such shopping districts rarely housed branded goods, and offered limited choices for customers as far as quality was concerned. The few big names in the clothing industry were considered too posh for the common customer. The shopping mall has changed all that.

An influx of new domestic and international brands in the market over the past few years has created a need for well-equipped shopping malls where they can all be housed together. Industry insiders estimate that around 150 high end brands sell their goods in different cities in Pakistan, out of which 30% do not have formal outlets of their own and rely on such malls for sales.

Pace Pakistan introduced Lahore to the concept of shopping malls before the turn of the century, and it remains one of the most recognised names among savvy shopaholics of the city. The group is currently operating four malls in Lahore, one in Gujranwala and one in Gujrat. Other groups have entered the fray, with Bahria Town introducing its state-of-the-art Mall of Lahore.

“These shopping malls are proving a lifeline for new and existing [clothing] designers and are playing an important part in helping the industry flourish,” Shahzad Mughal, Chief Operating Officer of Urban Elements, said while talking to The Express Tribune. “Many designers have their own outlets in different parts of the city, but with the entry of shopping malls that attract the wealthier crowd, we cannot afford to miss out on the opportunity of displaying our brands there,” he added.

As the average Lahori becomes ever more brand conscious, with the entertainment industry playing a major role in influencing tastes, the city’s denizens have been looking for new things to expend their increased purchasing power on. And they are still relatively happy to experiment.

“I am not a designer, but I somehow managed to open a fashion outlet by hiring a few traditional tailors,” said Nadeem Ali, who has been involved in the garments business in one of the Pace shopping malls for quite a few years now. “This mall has provided me with a lot of opportunities. I used to import garments in the past, but then I decided to design my own clothing line to improve my business,” he added.

A few groups are now realising the potential in this relatively unexplored area, and wish to take the concept of shopping malls to cities which have erstwhile been neglected. Some, like Pace Pakistan and the Chenab Group, have already established a presence in regional cities, while others plan to march on southern Punjab and capture important cities there.

“We have just announced a shopping mall in Multan, and half of our mall has already been booked by famous brands for outlets and food courts,” Ali Zubair, general manager development of Pearl Real Estate Holdings, told The Express Tribune. “Investors normally think of potential in megacities only, but people of the smaller cities also want to spend money in classy malls. With such malls, not only will we introduce a new lifestyle to the city, but also create opportunities for small and medium scale retailers to expand their businesses,” Zubair added.

Published in The Express Tribune, May 19^th, 2013.

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LAHORE: LG Electronics, a South Korean multinational company, has launched world’s first 84-inch Ultra HD TV, equipped with 3D technology, in Pakistan with ambitious plans to invest billions of rupees to widen its product range and compete with fellow multinational Samsung in the market.

The 84-inch television carries a price tag of Rs2 million that only the wealthy can afford to buy.

“We have decided to expand our operations by enhancing production capacities to capture growing consumer demand in Pakistan,” said DY Kim, President of LG Electronics Gulf, while talking to The Express Tribune on Thursday.

“Currently, our production in Pakistan is only limited to televisions and LCDs, but in a couple of months we will start producing other household items like microwaves and washing machines,” he added.

LG Electronics is a global leader and technology innovator in consumer electronics, mobile communications and home appliances with 117 operations around the world.

LG achieved global sales of $49 billion in 2011. It is offering products in four segments – home entertainment, mobile communications, home appliances and air conditioning & energy solutions.

In Pakistan, LG is increasing investment to enhance production capacity, but Kim did not divulge exact figure and only said it would be in billions of rupees.

The company is looking to compete with Samsung, which has increased its market share in recent years.

“We want to give consumers with some other option and we are hopeful this will not take much time,” Kim said.

LG is at second place in the US in the home entertainment segment, but in Pakistan it is behind. However, Kim believes that LG, with focus on long-term technologies, will be the strongest company in Pakistan in about a year.

“We want to cover the whole segment for consumers, we have launched 84-inch TV, which I believe is still in its infancy, but it is important to claim a stake in this space and tell our competitors that the company has enough brains to think for future needs.”

LG considers Pakistan an important strategic partner to focus on in a bid to further strengthen its presence here. Though the company is not offering a complete range of products at its first brand shop in Lahore, as it does globally, it hopes that it will fill the gaps in a couple of months.

LG is also working to enhance its product line in the mobile segment in Pakistan.

Published in The Express Tribune, May 17^th, 2013.

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LAHORE: After enduring a difficult five years when industries were crippled by energy shortages, the business community of Punjab is now pinning its hopes on the incoming government, which will be formed by the Pakistan Muslim League-Nawaz that has won a majority in Punjab and is also well ahead in the Centre.

They believe that the PML-N government, led by Mian Nawaz Sharif, himself an industrialist, will put the economy back on track and put it on solid footing. They link the victory of PML-N to ‘discrimination’ by the previous PPP-led coalition government against Punjab in electricity supply.

Energy crisis is the biggest issue besetting the industrialists of the province that has slowed down economic activities with around 50% of industrial units have either been closed or have suspended work because of electricity shortage.

“We know what our resources are, we only want equal distribution of resources, especially electricity supply to all provinces, we have attached our hopes to the incoming government that is capable of resolving this issue and will do it,” said Ramzan Sheikh, Chairman of Mainland Husnain Group, while talking to The Express Tribune.

Sheikh stressed that the PML-N enjoyed wide experience of governance and had also experienced people to run the affairs of the country.

The industrialists are also of the view that a smooth and uninterrupted energy supply will encourage investment in the economy.

“I believe if the energy crisis is resolved, then I am sure that investments will start coming in Pakistan,” said All Pakistan Textile Mills Association (Aptma) Punjab Chairman Shahzad Ali Khan. “We only need a smooth provision of electricity, rest is our responsibility.”

“There is also a need to call local and overseas Pakistanis to invest in industrialisation in Pakistan,” Sheikh said. “I am ready to start new hospitality projects as I believe that this industry has much potential, especially if unrestricted trade with India is initiated.”

Published in The Express Tribune, May 14^th, 2013.

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Election offices of both the parties are over-flowing with campaign workers and supporters at any given time.

The constituency comprised 18 union councils. The cantonment area has 15 villages, most of which are turning into urban settlement. The city is said to be expanding from this constituency rapidly with new housing schemes and infrastructure. The Allama Iqbal International Airport and the Ring Road have significantly added to the value of properties in the area.

Rafique’s supporters are confident of a PML-N victory in the area saying that Khan, a former Supreme Court Bar Association president who was also a prominent figure in the lawyers’ movement for the restoration of superior court judges, has not been very active in the campaign.

Major issues

Cantonment is seen as a major problem in the constituency. Civilian residents complain of lack of access to many facilities, including the public parks. Most civilian residents say getting cantonment offices to do something is “the most difficult thing”.

The urban areas have carpeted roads and streetlights, but the rural villages lack infrastructure, including proper sewerage. Water filtration plants were installed in most areas over the last five years. No major sewerage project got off despite a couple of proposals and several meetings with the divisional commissioner.

Residents of areas along Bedian Road are the worst off. The road has seen several construction and repair initiatives in the last five years, but parts of it are still in a dilapidated condition.

Majid Shakoor, a 55-year-old resident of Saddar, says none of the lawmakers from the constituency has been able to solve the problems people face.

He also talks of the lack of a public park in his neighbourhood and the fact that only army families are permitted to enter parks in the cantonment. Even for regulation work requests, he says, staff at the cantonment offices have to be bribed.

“Older people in my area are not hopeful about a positive change …Most of them do not want to vote. But the younger lot are pressing us to try PTI this time.”

Promises

At his corner meetings, Rafique says he will seek fresh delimitation of the cantonment. He says Rs3.5 billion was spent on various infrastructure projects in the area over his term. If elected, he says, he would solve the sewerage problems and complete the pending development works.

But some of the residents say they haven’t seen much development besides the roads leading to the airport.

Talking to The Express Tribune, Khan said there was a dire need for legislation in the Cantonment Act, 1924. He said since its introduction, no solid amendments had been made in the act to facilitate the civilians, who he said, were greater in number than army residents. He promises to make a new legislation for the cantonments if elected.

While Khan denies being inactive in the election campaigning, he admits he hasn’t been able to go door-to-door due to shortage of time.

“The PTI youth are taking care of that, while I am focusing on our weak areas.”

PP-155

PML-N’s Mian Naseer Ahmad and PTI’s Hafiz Farhat Abbas are leading the race for the provincial seat in PP-155. While Abbas hopes to give Ahmad “a tough time”, Ahmad is seen to be having an edge over his rival.

Thirty-nine candidates are running from this constituency. Of these, only eight are affiliated with political parties, while the rest are independent. PPP’s Ashraf Bhatti is rarely seen in person as well as through campaign banners and posters.

PP-156

PTI’s Ahsan Rasheed is predicted by many to beat his PML-N rival Yasin Sohail, who won the 2008 elections. As many as 31 candidates are running from this seat, of which only nine have party tickets.

LAHORE: Independent power producers (IPPs) warn of longer power outages in the near future as they blame the previous and the current government for not taking any short or long term measures to contain circular debt.

In an interview with The Express Tribune, IPPs Advisory Council chairman Abdullah Yousaf said the first priority of the next government should be the payment of outstanding dues to IPPs to maintain power supply at current levels or reduce load-shedding to some extent.

The government still has to pay the total current outstanding bill of Rs57.48 billion to eight IPPs namely Atlas, Nishat Power, Halmore, Sapphire, Liberty, Orient, Saif and Nishat Chunian Power. Considering the amount, it is evident that the eight cash-strapped IPPs cannot produce more power than 1,600 megawatts (MW).

It will be crucial for the next government to supply gas to power producers who are efficient, so it can be translated into maximum power generation, which Yousaf believes is a simpler formula. Uninterrupted fuel should be supplied to IPPs who can produce power at cheaper rates than generation companies (Gencos), he added.

Under the policy framed in 2002, per unit fuel costs recorded by IPPs on oil-based power plants stood at Rs14.05 against Rs21.04 reported by Gencos. This could have led to savings of Rs6.94 on every unit produced if the economic order was followed. Moreover, gas-based IPPs produced a unit of power Rs2.36 cheaper than Gencos.

Previous governments did not pay heed on availing the aforementioned option, hence putting immense pressure on national finances and incurring huge losses on account of efficiency.

Over the five-year period, performance of distribution companies (DISCOs) and Gencos had deteriorated and the steps recommended by international lenders on account of economic reforms were never implemented.

“Despite the fact that IPPs save billions of rupees on behalf of the government through their efficient plants, they were suffering the most due to the payment crisis on part of the government.”

Published in The Express Tribune, May 10^th, 2013.

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LAHORE: The Hashoo Group, a leader in the domestic hospitality industry, has formally inaugurated its sister concern, Pearl Real Estate Holdings Private Limited, which will look after the residential real estate projects of the group in the future.

The road map provided for Pear Real Estate Holdings is quite interesting: the company will not be focusing on megacities at all, as it believes that traditional urban centres have already become overcrowded. Gated communities in such cities, established by other real estate developers, are already offering a luxurious lifestyle for those who can afford it within secure environs.

Instead, the group will be focusing on cities whose residents have money to spend but are forced to migrate to larger cities in search of better living standards. Multan, Bahawalpur, Rahimyar Khan, Sukkur, Murree, Abbotabad, Faisalabad and Gujranwala are the cities earmarked by the group, in which its real estate projects are about to be kicked off, or will do so in the near future.

Such housing projects will not only include residential villas, but shopping malls, business towers, community centres, parks and entertainment areas as well. Interestingly, the group has also provisioned for five-star hotels in some select locations.

“We will provide an option for the people of smaller cities to live within their cultures, but with the amenities that accompany modern lifestyles,” said Haseeb Gardezi, CEO of Pearl Holdings, while talking to The Express Tribune. “We are sure that, with modern living standards available within their own areas, people will opt not to migrate to megacities. This will ultimately reduce the increasing burden of rural-urban migration in the future,” he added.

The real estate segment is rapidly becoming a lucrative industry, with housing needs increasing with changing social and demographic dynamics. To cover the demand-supply gap, many renowned groups are now entering the real estate market, a majority of whom have opted to make safe profits by providing luxury lifestyles to people.

The main focus of such groups has been on traditional urban centres like Karachi, Lahore, Islamabad and Peshawar. Bucking that trend, the Hashoo Group wishes to target relatively smaller cities which have their own importance, economically and socially, but which have been neglected as regards to high-end real estate development.

The Pearl City project has already been initiated in Multan, in which the company has invested Rs5 billion so far, while overall investment will come to around Rs15 billion by completion. Spread over 50 acres, the project will include a hotel, shopping mall, community centre, entertainment areas, 330 villas and a business tower. “We are focusing on generating economic activities within the premises of the project, so that the overall economy of the city can also improve,” Gardezi added.

Surveys are being conducted for the rest of the cities, and paperwork has been initiated in some cases. The company is committed to providing similar facilities to all cities, but will modify its plans according to individual needs. For instance, if the company constructs a hotel in Multan, it may skip this option in Bahawalpur and Sukkur, as these cities do not particularly need five-star hotels right now. The company may instead focus more on housing units for these cities. On the other hand, as in the case of Murree and Abbotabad, the company may focus more on hotels and shopping malls, as these cities are traditional tourist destinations.

“Our main concern is to deliver on our commitments to the people. The Hashoo Group is not a small group, and minor mistakes on our part will hurt its prestige. Therefore, it is important to us that we deliver what we promise,” Gardezi said.

Published in The Express Tribune, May 7^th, 2013.

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LAHORE: The possibility of pre and post election riots has forced many banks to take precautionary measures, including dispensing of smaller amounts to their Automated Teller Machines (ATM’s).

In Lahore, the ATM machines of many banks display the message: “This ATM is out of cash”. People have been observing this issue since start of this month, especially in congested and highly populated areas of the city.

“We have been directed by the higher ups of our bank, to put less money in ATMs located in congested localities or those areas where election campaigns are in full swing,” the manager of a small bank told The Express Tribune on condition of anonymity. He maintained that the ATM tray, which usually contains Rs2.5 million in cash, is nowadays fed with just around Rs0.2 million in view of possible attacks on ATM machines. According to the bank manager, the reasons behind such directives were past incidents where people looted ATMs following riots.

“We have seen this several times in the past and want to avoid it in the future,” he added.

There are 36 banks operating in Pakistan, out of which around 5 are considered as large banks, while the rest are classified as medium or small scale banks. These banks have around 11,000 branches with 6,200 ATMs.

A visit to several ATMs in Lahore over the last couple of days revealed that the machines, especially those located in middle-class and low-income neighbourhoods, were frequently out of cash. ATMs belonging to smaller banks faced similar issues as well, placing an increased burden on the larger banks.

“This problem might be faced in some branches and there may be multiple reasons for it. But as far as our bank is concerned, we don’t issue any order for putting less cash in our ATM machines,” said Mubashar Bashir, Head of Corporate Communications at Muslim Commercial Bank. He maintained ATM machines in congested areas often ran out of cash due to higher usage.

“But our special teams regularly monitor this and refill the cash trays whenever they get empty,” he added.

Bashir said that at times long power outages choked the system, putting machines out of order.

“In such a scenario, if any area witnesses a law and order issue, it is not possible for us to restore the system until the situation in the city settles down,” he maintained.

Published in The Express Tribune, May 6^th, 2013.

LAHORE: The 25-million-ton wheat production target set by the government for 2013 seems too close yet so far as agriculture experts expect production to clock in between 23 million and 24 million tons according to actual estimates on the ground – depicting that the country is going to miss the target by at least a million tons this year.

With the expectations of missing the target for the fifth consecutive year, the fear of wheat shortage and high flour price is on, and this is expected to hit the country in December or early 2014.

With an annual population growth of 2.5%, Pakistan’s population had shown a growth of 12.5% in the last five years and for the same period the government has failed to achieve the stagnant wheat production targets, said Ibrahim Mughal, chairman of Agri Forum Pakistan while speaking to The Express Tribune. Keeping in mind the carried forward stock of 0.5 million tons, it will be tough for authorities to meet wheat demands for the whole year.

Pakistan requires 26 million tons of wheat to cater its annual consumption, of which 23 million tons is consumed as food, 1.5 million tons for seeding and around one and half million tons is wasted during the whole process. In an optimistic scenario, if wheat production clocks in at 24 million tons this year, then Pakistan will have 24.5 million tons available for fiscal 2013-14 after adding the carryover stock.

“The role of middlemen this year will be quite disturbing, either they will purchase wheat from growers to sell it to government-regulated food departments where they will sell it for Rs1,200 per maund or will smuggle it to Afghanistan or Iran where they can make higher profits,” said Mughal. Internationally, a 40 kilogramme bag will fetch a price of Rs1,469, the price difference makes smuggling attractive even after deducting transportation charges, he added. Iran is always facing food scarcity due to international sanctions.

If they become successful at achieving procurement targets, it will still leave around 67% of the total production lying around to be bought by the middlemen, flour mills or other growers, who will want to buy wheat to fulfil their consumption needs.

To curb smuggling, Director Food Punjab Captain Usman said, “If we end our drive by May 15, only then the middlemen will crash the current bullish wheat market and the ultimate disadvantaged party will be the grower.” “We will remain in the market for the next 45 days to ensure this does not happen,” he added.

Published in The Express Tribune, May 3^rd, 2013.

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In an attempt to give a boost to the industry, the government has made some efforts in the past few years, especially in Punjab, where the Punjab Agriculture and Meat Company (Pamco) has been established. However, it has yet to give desired results.

The private sector has been involved in this industry, but not aggressively because of issues like taxation, freight rates, energy crisis, etc. The industry needs modern and hygienic slaughter houses that can meet international standards for export of chilled or frozen red meat to countries where demand for halal meat is growing.

Pakistan is ranked 19th in terms of meat production with an annual output of 2.2 million tons. In the three-trillion-dollar halal product industry of the world, the meat segment is worth $600 billion. Pakistan’s share in it is only $115 million.

Meat exporters believe that this figure can be tripled with the right policies.

“The industry is in its initial stages in Pakistan, with literally 0% contribution to the global industry, we need relaxation in taxes, less interference from provincial departments and a clear policy to boost the industry,” said Nasib Ahmad Saifi, Chief Executive Officer of Anis Associates, a sister concern of Saifi Group, while talking to The Express Tribune.

The group is one of the largest exporters of meat in Punjab, whose export revenues have crossed $15 million annually.

“Rising tax rates, zero rebate, high freight charges and above all energy crisis are hitting us hard, otherwise our company has the potential to at least triple its export volume,” Saifi said.

He believed that total meat exports of the country could reach $500 million if the government started taking interest in this industry. Citing the example of India, he claimed that the neighbouring country, which is not even an Islamic state, was exporting halal meat worth $23 billion annually just by properly organising the industry.

He highlighted smuggling of live animals to Afghanistan and Iran as another problem that has been hitting the livestock market.

According to Pamco, around 2.5 million live animals worth $1.4 billion are smuggled every year, dealing a damaging blow not only to domestic meat sales, but also to exports.

Saifi stressed that if smuggling was brought under control, the export of red meat would grow and prices would also come down in the country.

This will also provide a boost to the local leather and tannin industry which will have access to high quality hides at lower cost. In fact it has been a long-standing demand of the local leather industry to limit livestock exports and to promote meat exports.

Published in The Express Tribune, April 27^th, 2013.

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According to a press statement, at a meeting at the chief minister’s secretariat, it was decided that a sum of Rs45 billion will be given to Punjab, to relieve the province of its energy crisis.

Later during the day, Sethi tweeted: “Punjab government has persuaded the federal government to reduce load-shedding by three hours within four days, [and] a further two-hour reduction in the first week of May.”

“A reduction in load-shedding will leave a positive impact on all sectors,” the statement quoted the caretaker chief minister as saying.

For about a month, all urban centres of the province are getting a maximum of 12 hours of electricity. However, in the past ten days, the situation has gotten worse. In rural areas, people are facing up to 22 hours of load-shedding.

The shortfall has crossed 5000 megawatts for National Transmission and Dispatch Company (NTDC), and is fluctuating between 1300-1800 megawatts for LESCO.

“We only need oil and gas in required quantities to reduce load-shedding. If it is provided today, the masses will feel the difference”, NTDC Director General Tariq Majeed told The Express Tribune.

It depends on the finance ministry; if it provides funds then we can pay oil marketing companies and Independent Power Producers (IPP’s) for generation, Majeed said.

When asked about the development, NTDC director general said he was not aware of it since the company had not been informed as yet.

Published in The Express Tribune, April 26^th, 2013.