Sales of locally assembled cars rebound, rise 7.5%

The govt had reduced the age-limit of used cars from five years to three years. Since then, a gradual decrease in used car imports has been helping sales of locally assembled vehicles. PHOTO: FILE

KARACHI: 

The sales of locally assembled vehicles (including LCVs, vans and jeeps) jumped 7.5% – a healthy increase – to 32,841 units from 30,541 units during the first quarter of the fiscal year 2013-14 compared to the same period of last year.

In September alone, sales volumes remained stable, clocking in 1% higher at 11,166 units from last month, and 15% compared to the corresponding month of 2012.

Analysts believe the sales of locally assembled cars will improve in the coming months due to lower influx of imports of second-hand Japanese cars. The government had reduced the age-limit of used cars from five years to three years in December 2012. Since then, a gradual decrease in used cars imports was helping the sales of locally assembled vehicles.

However, local assemblers say that they do not see much improvement in sales going forward into fiscal 2014.

Amongst individual companies, Pak Suzuki sales during the increased 1.7% to 17,966 units, against 17,659 units sold in the same period of last year.

However, sales surged 5.1% to 6,287 units in September alone compared to August, and 4.1% when compared to September 2012.

In the first quarter of fiscal 2014, sales of Indus Motor Company improved 1.4% to 8,419 units over the last fiscal’s first quarter. Indus Motor’s flagship automobile Corolla’s sales were up 1.1% to 7,109 units in the quarter from 7,032 units in the corresponding quarter of fiscal 2013.

However, Indus Motor’s sales have been on a decline, and keeping up with the trend in September alone, sales fell 11% to 2,602 units against 2,923 units sold in August.

Maintaining previous month’s record, Atlas Honda car sales surged 43% to 6,304 units in the first quarter of fiscal 2014 compared to the same period of last year, mainly due to sales of the new civic model.

In the quarter, sales of civic increased 87%, while city sales rose 20%. The massive growth in sales of the civic is attributable to the launch of the newer model.

Bumpy road ahead: IMF puts financing requirement at Rs9t

The IMF said that in the current fiscal year Pakistan will need an amount equal to 29.9% of its GDP (Rs7.6 trillion) to pay off its maturing debt, 17.2% higher than last year’s requirement. PHOTO: FILE

ISLAMABAD: 

Contrary to the government’s claim of reducing the country’s total debt this year as required by law, the International Monetary Fund (IMF) has said that there will be a net accumulation of debt, as Pakistan’s total financing requirements are predicted to balloon to an alarming Rs9 trillion this year.

In terms of percentage of the Gross Domestic Product (GDP), Pakistan’s total financing requirements were second only to Egypt among emerging markets, according to the Fiscal Monitor report that the IMF has released on sidelines of its annual meetings being held in Washington.

The report stated that Pakistan’s total debt will increase to 64.1% of its total estimated size of the economy in the current fiscal year 2013-14. This will be higher than the debt level of 63.4% of the GDP in the previous fiscal year ended on June 30.

Under the Fiscal Responsibility and Debt Limited Act of 2005, the government has to restrict the total national debt to 60% of the GDP. Besides, if the debt level is above 60% of the GDP, it has to be brought down by 2.5% of the GDP each year.

Finance Minister Ishaq Dar had promised at the time of the budget that his government will reduce the debt burden by 2% of the GDP this year, despite taking fresh loans from the IMF and other international lenders.

The IMF has also put question marks over the policy of retaining the debt limit at 60% of the GDP, terming the debt limit too high for a developing country like Pakistan that remains vulnerable to balance of payments crises and also faces problems of financing its expenditures.

The IMF further said that Pakistan’s gross national debt will increase to 66.6% of the GDP from last year’s level of 66.2%.

Another worrisome element that the IMF highlighted in its report is increasing total financing needs of the country, reflecting the maturity of short-term debt and higher budget deficits. The report noted that Pakistan’s total financing needs will increase to 35.4% of the GDP, or almost Rs9 trillion. In the previous fiscal year, total financing needs stood at 34% of GDP.

The IMF said that in the current fiscal year Pakistan will need an amount equal to 29.9% of its GDP (Rs7.6 trillion) to pay off its maturing debt, 17.2 % higher than last year’s requirements.

Maturing short-term debt is also increasing the cost of borrowing that has already crossed the Rs1 trillion thresholds− the single largest expense on the budget followed by defence spending.

Expecting the federal government to be in a desperate position, domestic banks have long been refusing to provide long-term debt to the federal government, which many saw as an administrative weakness of the finance ministry.

The IMF said that gross financing needs are set to rise in emerging market economies this year relative to previous projections, mainly driven by higher levels of maturing debt. Countries with particularly large (exceeding 20% of the GDP) debt requirements are Egypt, Jordan, Hungary, and Pakistan, reflecting short maturities and high deficits, according to the IMF.

The IMF said that these countries have high levels of deficit, debt and large gross financing needs, are exposed to shocks and swings in market sentiment and thus must take early decisive steps to safeguard against adverse debt dynamics and bolster credibility.

Helping hand: Govt urges financiers to support development projects

Enhanced regional connectivity through regional transit and economic corridor between Pakistan and China is being pursued aggressively. PHOTO: FILE

ISLAMABAD: Federal Minister for Planning and Development Ahsan Iqbal urged developing partners, World Bank, Asian Development Bank (ADB), United States Agency for International Development (USAID) and Department for International Development (DFID) to collaborate with Pakistan in carrying forward the agenda for regional connectivity for improving trade and economic growth.

Speaking at the meeting of the development partners over regional integration, he reiterated that Pakistan had been pushed towards a severe economic crisis because of being a frontline state in the war against terror as it had paid a heavy human and economic cost. Hence, Pakistan alone would not be able to afford huge burden of its development needs and restructuring the economy, the minister added.

However, the minister still appreciated the role and contribution of development partners in the economic growth of Pakistan over the years. Still he asked for further support of the development partners to push the agenda of regional connectivity for improved trade and growth.

Iqbal highlighted that Pakistan was a member of the South Asian Association for Regional Cooperation (Saarc), Economic Cooperation Organisation (Eco), Central Asia Regional Economic Cooperation (Carec), and actively participated in Association of Southeast Asian Nations (Asean) and Shanghai Cooperation Organisation (SCO), however he admitted that Pakistan had not utilised the benefits in a significant way.

Iqbal went on to say that the failure to develop infrastructure and protocols for large-scale overland trade and streamline the trade structure, together with the absence of comparative advantage in the capital intensive and high value-added products were some of the reasons for Pakistan’s failure in taking advantage of the potential in regional trade. He suggested that trade complementarities could be developed in the region only if the regional counterparts were able to achieve vertical specialisation through production-sharing arrangements. Therefore, enhanced regional connectivity through establishment of regional transit and economic corridor between Pakistan and China was being pursued aggressively by the government, he added.

At the occasion, the planning minister also discussed the future plans of the government, saying that the incumbent government had started preparing documents of Vision 2025 and the 11th five-year plan 2013-18, which will be finalised by the end of the year. He reassured the development partners that regional integration was an important element of the government’s vision.

Iqbal was of the view that the economic corridor project with China would be a milestone project, and transform the region by bringing in trade and job opportunities for all of people in the region. Regional connectivity projects in the fields of rail, road, energy and telecommunication were already being pursued by the government.

“Pakistan appreciates the support of its development partners; however, our strategy is to increasingly rely on local resources by focusing on tax reforms, promoting investment and exports.

LG reveals G Pro Lite phablet with 5.5-inch display

LG's new G Pro Lite.
(Credit: LG Electronics)

LG has given birth to a baby brother for its LG G Pro phablet.

Dubbed the G Pro Lite, the new device is outfitted with a 5.5-inch screen but otherwise lacks some of the more robust features found in the full Pro model. The display offers a resolution of just 960x540 pixels, compared with the 1,920x1,080 pixels offered in the Pro edition.

The G Pro Lite comes with a 1.0 GHz dual-core processor, 1GB of RAM, and 8GB of internal storage. An 8-megapixel camera is on the rear, while a 1.3-megapixel shooter is on the front. The 3,140 mAh battery is removable.

But cellular speed is limited to 3G, whereas the full Pro model supports 4G LTE. Outfitted with AndroidJelly Bean 4.1.2, the G Pro Lite will come in both black and white.

The phone does offer other useful features, including a stylus pen and stereo speakers. A dual SIM slot comes with its own hot key to let users easily switch between the two SIM cards.

The LG G Pro Lite is slated to debut this month in Latin America followed by launches in Asia, Russia, China, India, and the Middle East. LG didn't reveal the price or whether the phone will launch in the US. Thefull Pro model sells in the US through AT&T for US$199.99 with the standard two-year contract.

Wind power project: Sindh govt inks MoU with Turkey

Government of Sindh and STFA Yatirim Holding, a Turkish company signed an MoU on Friday for implementation of a wind power project. PHOTO: FILE

KARACHI: 

The government of Sindh and STFA Yatirim Holding, a Turkish company signed an MoU on Friday for implementation of a wind power project.

The Secretary Energy, Sindh, Agha Wasif Abbas signed the MOU with Project Development Director, STFA, Mehmet Orhan.

Sindh CM, Syed Qaim Ali Shah while speaking on the occasion said that Sindh was the only province blessed with powerful wind corridor in Pakistan. However he stressed the need of implementation on the project at the earliest to benefit the people of Sindh. Shah said that Turkish businessmen take keen interest towards investment in Pakistan, as they enjoy good relations with government and private sector.

Bale's secret slips out

Gareth Bale has a slipped disc on the L5 -S1 vertebrae and a bulge on the L4 -L5. This amounts to a significant injury which, at least for the moment, isn't giving him trouble and won't prevent him from playing for the foreseeable future. However, further down the line it may force him off the pitch and, depending on how things progress, may even require surgery.

Real Madrid medical staff diagnosed the injury on 2nd September, the day of his official presentation at the club. The MRI scan left no room for doubt: a slipped disc on the L5 -S1 vertebrae and a bulge, which is the beginnings of another, on L4 -L5. An injury that set alarm bells ringing at the Sanitas clinic in La Moraleja, just outside Madrid, and from where Florentino Pérez was informed of the injury hiding in the former Tottenham player's spine.

Bale said he hadn't noticed any pain at all and claimed he had never had problems in that area before.

There was no going back on the signing. The deal was done and Florentino Pérez, who was now up to speed on Bale's secret, did not object. The € 91million deal was going to go ahead as planned and neither hell nor high water would prevent Bale from running onto the pitch at the Bernabeú in a Nº 11 shirt, in front of a 40,000 strong crowd.

Since he was in no pain, the club chose not to dwell on it. But those who saw that MRI scan know all too well that they may face a very serious problem with the Welsh player at any moment..

A well-scripted and premeditated retirement drama of Sachin Ramesh Tendulkar

Phew, finally… This was one of the comments posted on a social website by a present generation cricket writer.

Yes, he was reacting to the big announcement on Thursday that the ‘Lordly’ figure of Indian cricket is going to hang up his boots.

It was news that took the Indian and world media by storm, for this personality — Sachin Ramesh Tendulkar — had finally announced his intent to say goodbye to the game he eats, drinks and sleeps come November 14.

Coming back to the comment of the cricket writer, I too would have reacted the same way, for I have been one of those who felt the ‘R’ day for the Indian icon was long overdue.

I have many-a-time opined that Sachin Tendulkar might have called it a day when India won the World Cup in 2011. The entire nation had dedicated this crowning glory to the man they adored.

At least he should have bid adieu to the One-day format, but that was not to be, and he continued.

He bore the brunt of critics, who even went to the extent of calling him ‘selfish’. His extensive stint of failures, too, deterred him from saying, it’s time.

What resulted, was that his fame was being questioned. Comparisons emerged with Australia’s Ricky Ponting retiring when failures dogged him.

India’s highly respected figure was suddenly being portrayed negatively. He was also accused of blocking the entry of the next generation. To an extent, this was true, as there were many talented cricketers lurching around, but they just could do nothing much but keep knocking at the door of Indian cricket.

The doors started opening only when players, who shared the stage with this icon, gracefully disappeared to the back stage.

It was in December last year, when Sachin Tendulkar realised age was catching up and his reflexes were not matching his talent. Then he called it quits in the 50-over format.

A good ‘late’ realisation, indeed, but that only made his countrymen more curious about his final statement — ‘I am quitting all forms of cricket’.

And finally, the statement came after months of deliberations.

Though his all-time companion, Rahul Dravid, claimed that Sachin Tendulkar has finally listened to his heart, I feel this decision has come out not wholeheartedly, but after a shrewd off-the-pitch move.

There were, indeed, reports about the Indian cricket board’s (BCCI) sounding to the Mumbai star that it’s time for his swan song. It was also hard to believe when chief selector Sandeep Patil denied that he voiced the ‘retirement’ opinion to Tendulkar.

Then, why was the South African sojourn stalled  temporarily?

Why did BCCI hastily arrange a home series with West Indies?

The game plan, as I understand, has been stage-managed with the consent of the Indian star, who has crossed 50,000 runs in all forms of cricket. With due respects to Tendulkar’s unmatchable achievements, it is acceptable that the cricketing hero wants to bow out on his home soil.

But his greatness could have climbed a notch higher had he decided to go off the field the hard way, just as he came on.

Remember that bleeding, brave face on his debut tour to Pakistan? I am sure no one will erase it from their memories.

In the same way, a South African sojourn could have left more impact on this retirement drama, rather than stage-managing a show for the ceremonial exit.

Now that it has been made clear that the ‘master blaster’ will call it quits after playing 200 Tests. And much to his liking, the BCCI has decided to play the November 14-18  Test (Tendulkar’s 200th) in Mumbai.

Nevertheless, the majority in India and abroad have found it hard to digest that their hero will play only two more Tests. And I, too, join them in applauding what the little master has done for Indian cricket. It has been a 24-year legacy for this noncontroversial gentleman, who has not even spoken out on the various scams the game has witnessed. Now, what’s next for this personality?

Indeed, he will still live on as India’s most respected ‘brand’, but can he live without cricket?

“It’s hard for me to imagine a life without playing cricket, because it’s all I have done since I was 11-year-old,” Sachin Tendulkar was quoted as saying. Yes, very soon we will see Sachin Tendulkar in his new avatar, but I would like to see him dig deeper as an administrator and clean up the scam-tainted game. Only he can do it.

He may find it difficult to live without the game, but as a true cricket fan, it’s time for everyone to move on — for a new hero will emerge, even though none can replace this ‘great’ icon.