12072016Wed
Last update: Wed, 07 Dec 2016 05pm

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Rising appetite for packaged food products and widespread advertising, marketing and distribution efforts seem to have pushed up FMCG sectors top line by double digits in 1Q CY14 compared to the paltry growth of 1.5 percent year on year in 1Q CY13. Here is a quick snapshot of FMCG sectors performance in the quarter ended March 2014, where Nestle, EFOODS and Unilever Pakistan Foods have been taken as a proxy.
Pakistan is the third largest milk producing country, and out of 36 million liter milk produced with 20 percent wastage and 25 percent consumption by farmers themselves, the industrys size comes to $15-16 billion at average market price of Rs80 per liter. Its contribution to value-added GDP is around six percent of GDP (i.e. half of the livestock).
If the central banks monthly credit data release is any guide, consumer economy in Pakistan has begun to take off. Have any doubts? Consider the following.
Earnings of the oil and gas exploration sector rose notably during the 9M FY14 leaving no doubt that the listed E&P sector will have a profitable FY14. The listed sector witnessed 14 percent jump in the revenues from oil and gas during 9M FY14 versus 9M FY13. Amid a weak oil price scenario, this increase in the revenues was due to higher oil and gas production and better gas well head prices.
That Pakistan faces a unique set of challenges on its borders, both eastern and western, is no secret, after the regime change in neighbouring countries. That, plus the expected American pullout of Afghanistan may also mean added tensions on the Pak-Afghan border.
PML-N government’s economic efforts so far have primarily been confined to the increase in forex reserves and the setting up of power and other infrastructure. And for both it has been relying on external loans.
“If India is computer, Congress is its default programme,” Rahul Gandhi told a Congress workshop in August last year. Today, only nine months later, India’s political disk has been formatted and possibly reprogrammed—with the BJP winning a majority on its own and form the first non-coalition government outside Congress in India’s history.