Last update: Wed, 25 May 2016 02pm

BR Research: All


The contours of the much anticipated AIDP-II have been under discussion in the media for over past two months, with contradictory news reports agreeing at least on one point: the policy will be announced before the end of CY13.
Better late than never! The Pakistan Telecommunication Authority (PTA) seems to have finally realised its authority to regulate the market for mobile phone sales.
The government is managing to adhere to a few IMF conditions in the economy which is otherwise at the verge of balance-of-payment crises.
Champagne glasses have been brought out and backs are being profusely patted. But for all our jubilation, there still exists very little clarity about the actual implications of this development, the tariff lines which will see reduction and the textile products which will bear the windfall as a result.
One can only try so hard--the rest is determined by luck. It seems the same holds true for Pakistans cement sector these days. Five years ago when local cement sales shrank amid economic slowdown and liquidity crunch, exports became the saving grace for the sector, recording highest ever volumes. Domestic sales have since recovered, while exports have now become the bane of the sector.
The newly-selected consultants for Pakistans upcoming next-generation spectrum will soon get down to the business of auction design and spectrum pricing. Informed observers suggest that one of the critical success factors for this auction will be the level of participation of new telecom operators. The ew operators will most likely be the established, multinational operators that want to do business in Pakistan.
For the first time in the countrys history, quarterly GDP growth has been publicly announced. Though this is a step in the right direction, PBS should have released its computation methodology and the detailed numbers that culminated into the reported growth rate. A summary of the sectoral growth rates is shown in table 1. In particular the estimated growth rate of services is on the high side, for reasons given below.