ME investors expanding into Pakistan’s property market (CPI Financial, April 14,2015)
Middle East investors are snapping up property in Pakistan's expanding real estate market,
according to new data from global property portal Lamudi. Online property-seekers from the
USA top the list of foreigners searching for real estate in Pakistan, followed by Saudi Arabia, the
United Arab Emirates, the United Kingdom and Canada.
Pakistan’s real estate sector is currently seeing increasing interest from foreign investors, Lamudi
onsite data shows. Despite political protests in August last year dealing a blow to the country’s
economic outlook, the real estate market has since rebounded. The property sector is now poised
for growth in 2015, leading to improved investor confidence.
Saad Arshed, Country Director of Lamudi Pakistan, said: “In recent months, we have seen
renewed interest from overseas investors inquiring through our website. This comes after the
economy has shown signs of recovery in the wake of last year’s political sit-ins, and with it the
real estate sector has also rebounded.
“Our onsite data shows that the USA is the leading foreign investor in Pakistan's real estate
market, with the highest number of overseas views and leads coming from the country. Foreign
investors and overseas Pakistanis based in the Middle East, particularly Saudi Arabia and the
United Arab Emirates, are also showing interest in Pakistan’s buoyant property sector.”
Stagnant prices coupled with uncertainty regarding the political sit-ins in Islamabad had an
adverse impact on Pakistan’s property market last year. However, the market has since
recovered, with prices stabilising and even increasing in some areas of the country’s capital in
the second half of the year. The strongest price growth in Islamabad during Q3 2014 was
registered in E-11/3 (seven per cent), B-17 (4.5 percent) and DHA (4.4 percent). Property market
growth has been stronger in key cities including Lahore and Karachi.
At the same time, the country’s economic outlook has also improved. The International
Monetary Fund recently raised its gross domestic product (GDP) growth forecast for Pakistan to
4.7 per cent for the 2015-16 financial year. The government is now confident of reaching its 5.1
per cent GDP growth target for 2014-15.
Foreign direct investment in Pakistan has declined in recent years, from $5.4 billion at its peak in
2008 to $1.46 billion in 2013. The current government is seeking to reverse this decline by
courting international investors through its Board of Investment.
Pakistan has one of the most liberal foreign investment regimes in South Asia, with investors
offered incentives such as tax exemptions and reduced tariffs. “As the real estate market
continues its recovery, we predict that these factors will help further spark the interest of foreign
investors in Pakistan’s most promising investment sector,” Arshed said.
Top investing countries:
1. USA
2.
3.
4.
5.
Saudi Arabia
UAE
UK
Canada
British footwear steps into Pakistan (The Express Tribune, April 14,2015)
KARACHI: International shoe manufacturer and retailer, Clarks, entered Pakistan by launching
its first ever store in Karachi on April, 11. The expertly crafted footwear is now available at The
Forum mall. The stores are also being opened up in Lahore and Islamabad.
The brand has a unique heritage of almost 200 years in remarkable shoe design. Shoeaholics,
both men and women, will get finest retail experience with the brand’s signature collections and
styles. Nancy Huang, C&J Clark International President of Asia Pacific, said, “It’s always great
to see a new store open, especially when it’s in such a good position within a premium shopping
mall. The Pakistan team and our partners have done a magnificent job in setting up the store. We
are in great company here; this mall is an impressive shopping destination with a fantastic mix of
brand names and customers. We are delighted to be a part of it.”
The brand is also well-known for its celebrity clientele and collaborations with high-fashion
designers. It has been successful in becoming the leading shoe company in the UK and a global
business in over 100 markets worldwide. With their latest franchise in Pakistan, the brand
intends to penetrate the markets and set impeccable shoe-trends.
One of the leading groups in the textile industry, Umer Group of Companies is behind the
successful launch of the franchise. The store was inaugurated by the acting Deputy High
Commissioner of the British High Commission Gillian Atkinson. The event was followed by a
fashion showcase. Sleekly styled, renowned models adorned the latest in-store collection.
Afghanistan, Pakistan Seek to Increase Bilateral Trade (Voice of America, April 14,2015)
WASHINGTON/ISLAMABAD— Officials from Pakistan and Afghanistan held talks Tuesday on
an agreement that would boost bilateral commerce and lower the cost of trading items between
the neighbouring countries.
A Pakistani delegation led by Trade Minister Khurrum Dastagir visited Kabul for the
negotiations.
Pakistan's Minister of State for Education and Narcotics Control, Muhammad Balighur Rehman,
told parliament that Pakistani officials shared a draft of the Preferential Trade Agreement (PTA)
with their Afghan counterparts. He said both countries were also establishing a joint business
council.
Ikram Hoti, an Islamabad-based expert on Afghan-Pakistani economic issues, told VOA's Deewa
Radio that trade between Pakistan and Afghanistan generally incurred high transportation costs
and that the proposed agreement would reduce the cost of the traded goods.
He said fruits were one of Afghanistan's most exported items, noting the agreement would give
Afghan traders the opportunity to explore other Pakistani markets.
Last year, Afghan President Ashraf Ghani vowed to double annual trade with Pakistan to $5
billion.
Separately, Alyssa Ayres, a former U.S. assistant secretary of state and now a fellow at the
Council on Foreign Relations, told Deewa that India needed to play a greater role in Afghan
civilian security in the coming years, as the war-torn nation underwent a critical rebuilding
phase.
"The international approach to Afghanistan is to also promote the integration of Afghanistan
across the region in better economic, communication and transportation kinds of activities,"
Ayres said. She noted that for Afghanistan, this is also a means to "integrate itself [into] all
regional diplomatic forums," said Ayres.
According to Afghan officials, India holds a very important position in Afghan foreign policy
especially in terms of an economic partnership.
"We want India to help us in different fields, especially investment in Afghanistan's economy,"
Afghan presidential spokesman Ajmal Obaid Abidi told Deewa.
Afghan Trade Minister Muzamal Shinwari said Kabul is seeking more opportunities to trade
with India by transiting goods through Pakistan.
Pak-Nigeria trade reach $56m: Business community urged to consider Africa as potential
market (Customs Today Pakistan, April 14,2015)
ISLAMABAD: The business community of federal capital has been asked to focus on Africa in
bid to enhance economic activities and search new markets as the continent offers immense
potential for promoting trade and exports.
This was stated by Ambassador-designate of Pakistan to Nigeria Lt Gen Agha M Umer Farooq
(R), while interacting with businessmen at Islamabad Chamber of Commerce and Industry. He
said that despite being a high risk country, Nigeria possessed vast scope for Pakistani
entrepreneurs to make investment, especially in agriculture, fertilizer, beverages, tractors,
motorcycles, rickshaw manufacturing, iron ore and other sectors and export their products to
huge market of African region.
He said that Africa was emerging as a future food basket of the world and it was right time that
Pakistani investors should explore investment opportunities in agriculture sector of Nigeria. He
said Pakistani teachers and doctors have earned great goodwill in Nigeria that should be encashed for promoting trade and economic relations. He said Pakistan should establish
warehouses in Nigeria and private sector should consider financing such facilities.
He said Nigeria was in the process of privatizing its 11 banks and Pakistani banks should explore
possibilities of purchasing banks in Nigeria that will help in improving bilateral trade as well. He
assured that he would try to extend all possible facilitation to Pakistani entrepreneurs during their
exploration visits to Nigeria.
Speaking at the occasion, ICCI President Muzzamil Hussain Sabri said that Pakistani missions
abroad should become more proactive in identifying market potential for Pakistani products on
host countries. He said they should do marketing of local products in foreign countries that
would help in promoting Pakistani trade and exports with outside world.
He said Pakistani missions abroad should extend maximum support and facilitation to business
delegations for exploring business matchmakings in foreign countries. He stressed that Pakistan
Embassy in Nigeria should support in organizing single country exhibition of Pakistani products
in order to showcase quality of our products and get better penetration in Nigerian market.
The bilateral trade between Nigeria and Pakistan reached $56 million in 2010. Pakistan exported
$37million worth of goods to Nigeria, while it imported $19 million worth of goods from the
Nigeria.
Oracle Coalfields has funds to reach financial close at Thar (Proactive Investors UK,
April,14,2015)
Oracle Coalfields’ (LON:ORCP) recent placing has given it sufficient funding to take its Thar
coal and power project in Pakistan through to financial close, it said today.
The company raised £3.37mln and it is now working with partner Shandong Electric Power
(SEPCO) on the final term sheets on the two EPC contracts (for the mine and for the power
plant).
When this is complete, Oracle said it would negotiate financing arrangements with Sinosure, the
China Export & Credit Insurance Corporation.
On site, pre-development work is underway on a corporate social responsibility programme
(CSR) for water, basic healthcare and veterinary support. Land survey and resettlement work has
also started.
Oracle is running behind schedule due to the unexpected cancellation of its mining lease in
November, but it was restored in February after the company complied with a number of
requests from the Sindh provincial authorities.
The group posted a loss in 2014 of £710,000 (£1.04 mln). Cash at the yearend was £383,000
since when it has carried out the placing.