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A Long Road to a Faster Lane?
Zeenat Chaudhary on how the automotive industry will fare in these uncertain times.
Ever since Karl Benz invented the world’s first motor car in 1886 – the Benz Patent-Motorwagen – the automotive industry has come a long way. From hi-tech Hondas and Chryslers to electric Teslas and Nios, the global industry contributes roughly three percent to all GDP output. Due to the pandemic, however, worldwide car sales have taken a hit and are expected to fall from $74.9 million in 2019 to under $62 million in 2020, according to Statista.
Industry Overview
In Pakistan, the automotive industry, which contributes 2.8% to the country’s GDP (source: Invest Pakistan), has faced a cycle of booms and busts since the 2000s. In fact, the auto industry was on a downward trend before Covid-19 struck, primarily due to rising taxes (Federal Excise Duty increased from 2.5% to 7.5% and Additional Customs Duty by seven percent) and the rupee’s depreciation against th
After a trying year, cement makers bracing for slow recovery
With the year about to come to a close, the cement sector finally experienced some relief from the ongoing pandemic thanks to increased consumption alongside fresh investments.
Makers of the key construction material have been in a tight spot since the Covid-19 outbreak began as almost all major development projects in the country, both public and private, were halted for an extended period. The cement sector managed to survive even though the manufacturers sat idle throughout April-September, Mohammed Amirul Haque, managing director of Premier Cement, told The Daily Star.
But now, there are various projects to work on, including mega projects such as the Karnaphuli Tunnel.
When investors take profits, their confidence grows simultaneously, increasing the depth of the market, he said.
The inclination was predominantly to sell most of the multinational and blue chip stocks because those recently rose by a higher extent, the stockbroker added.
Stocks of Reckitt Benckiser Bangladesh fell 4.63 per cent while Unilever Consumer Care 5 per cent yesterday, according to the DSE data.
Banks and non-bank financial institutions (NBFIs) also faced the same fate over apprehensions of a decline in their profits.
These financial institutions had been suffering for the last few years for accumulating a huge amount of non-performing loans (NPLs) and on top of that, the pandemic has intensified their problems, said a merchant banker.
Competition Commission of Pakistan busts cement sector cartel
Companies’ profits soared up to 800%, did not pass benefit of duty cut on to consumers
Domestic dispatches remain high, turnaround in exports witnessed. PHOTO: FILE
ISLAMABAD:
The Competition Commission of Pakistan (CCP) said on Tuesday that it found “hardcore evidence” of All Pakistan Cement Manufacturers Association (APCMA) acting as a cartel and its decision to fix cement prices through unlawful process led to 100% to 800% increase in gross profits.
Members of the CCP announced findings of an inquiry launched in May this year. The CCP inquiry revealed that the cement manufacturers collectively decided to increase prices in the range of Rs45 to Rs50 per bag, which forced consumers to pay an additional Rs40 billion in the past one year alone.