Despite the governments efforts, FDI scorecard is not budging much. Latest SBP data show that net FDI (derived as gross FDI inflows less outflows) stood at $669.8 million for the Jul-Mar period, showing a nominal 6.1 percent year-on-year growth. Even the small improvement owes largely to a 22 percent decline in outflows. The gross inflows--which concern fresh investment--went down by 11 percent in the same period to $1.42 billion.
Nestle Pakistans profit margins have been under stress for a while and that situation has not reversed in the first quarter ending March 2014.
Nestle enjoys huge product portfolio with an added advantage of market penetration and good brand positioning in dairy sector. During 1Q CY14, the net sales of the company witnessed 18 percent accretion year on year with growth, seemingly accruing from increase in volume and selling prices. Thats a good sign following the 9 percent year-on-year growth in CY13.
A year of profits, followed by a year into losses; the cyclical trend seen in Pakistan Refinery Limiteds (PRL) profitability since FY10 till 9M FY14 suggests that its profitability might just remain below par in FY14.
What was largely anticipated has finally happened! Recall that April 14 was the last date to submit sealed bid offers for mobile spectrum auction for 3G/4G services. PTA has made it public now that it received four bids. No bids were received from potential new entrants. All four bids are from existing operators. As expected, Warid Telecom did not bid.
Better take a cue from the not-so-famous Nigeria, a usual companion of Pakistan on many socio-economic indicators. The two countries have had some common problems in the power sector as well: gas shortage and vandalism of pipelines.