South Asia Investor Review

Prime Minister Imran Khan has effectively led Pakistan through multiple crises in the last 4 years. Khan inherited dangerously low forex reserves in 2018 which are now at  $23 billion, near the highest level in the nation's history. The COVID pandemic that hampered Pakistan's recovery has been handled well with the fully vaccinated rate for the eligible population at more than 75%. Not only has Khan deftly navigated his nation through these crises but his government has also revived the country's economy and grown exports by 26%.  Domestic savings rate recovered to nearly 17% after plunging to a low of 12% in 2018.  The year 2021 was a banner year for Pakistan's  technology startups  that raised over $350 million in funding, more than the amount raised in the previous 5 years. Manufacturing and construction industries are enjoying a boom last seen during the  Musharraf years  in 2000-2007.  Pakistan has pursued an independent foreign policy under ...

Pakistani Prime Minister Imran Khan has recently announced a  new housing construction incentives  package that includes down payment assistance and expansion of home loans portfolios by commercial banks at discounted rates for affordable housing for the poor. Shariah compliant financing is also included in it. Pakistan’s mortgage finance to GDP ratio is just 0.25%, among the lowest in the world, according to the  World Bank . The average for South Asia 3.4%.  New housing drives a large number of sectors of the economy from  banking  and  building materials  to  construction  and  manufacturing  of furniture and  home appliances . These incentives are designed to stimulate the economy, boost employment and deal with the growing shortage of affordable housing in the country. Naya Pakistan Housing: Pakistan government's Naya Pakistan housing program offers Rs. 33 billion in direct subsidies for down payments for...

Fitch Solutions, a global company focused on credit, economic, and political research, says in its latest report that the China-Pakistan Economic Corridor  (CPEC) will drive Pakistan's construction industry in the next decade, as the risks associated with CPEC projects recede. Fitch forecasts that the real annual growth rate of Pakistan's construction industry will average 8.9% over the next 5 years. "We will adjust our forecasts to account for possible positive ripple effects across the economy, including the construction industry, in the event an IMF bailout is secured", the report adds. Fitch Solutions' report titled "Industry Trend Analysis - CPEC to Remain a Primary Driver of Pakistan's Construction Industry" says: "We expect debt concerns surrounding CPEC projects to ease after financial details are released. In addition, we believe political risks associated with CPEC projects have diminished since the 2018 Pakistani general elect...

Steel production in Pakistan jumped 39.3% to 5 million tons last year, according to  World Steel Association . Earlier, Pakistan steel industry ramped up its output from 2.9 million tons in 2015 to 3.6 million tons in 2016. While Pakistan's steel production growth is the world's fastest,  its relatively small steel production volume of  5 million tons  ranks it 28th in the world. Other nations seeing strong growth in steel production are Iran (up 21.4%), Vietnam ( 31.9%) and Egypt (35%).   Iran ranks 13th with 21.7 million tons; Vietnam ranks 19th with 10.3 million tons; Egypt ranks 23rd with 6.8 million tons produced in 2017. Some of the key names ramping up  production capacity  in Pakistan are Aisha Steel Mill (ASM),  Amreli Steels and Agha Steel Industries. ASM, an Arif Habib Group company, is planning to  expand capacity  to a total of 700,000 tons a year from its current capacity of 220,000 tons. Amreli Steels Limite...

Pakistan's domestic cement consumption reached 35 million tons in 2016, up from 30 million tons in 2015, according to a report published by  Global Cement .  Using the latest census population of 207 million, it works out to about 170 Kg per person consumption. The increase is driven by a combination of CPEC-related infrastructure projects as well as commercial and  housing construction . Pakistan Cement Sales. Source: Global Cement While domestic demand for cement is continuing its upward trend, the exports have suffered a major decline. In 2009, the exports hit a high of over 11 million tons, constituting 34% of all cement dispatches at the time. Since then, they have fallen to below 6 million tons or 14% of all sales. Pakistan  cement industry  is booming. There is some disagreement about where the biggest demand is coming from.  The CEO of Thatta Cement says it is 60% infrastructure and 40% housing but others say it is 70% housing and 30% infr...