Forex reserves soar to two-year high

[Dalit]

No Textile leaving out to no where its just bubbling from PTI Zombies highlighting rare case for different reasons. I work in Textile industry since 95. If you see balance sheets of majority firms 99.99% they hardly shows any profits at all but still every year their business expands reason.

1. GOP allows certain forex %age (5-10) on export proceeds to stash outside (for commission payments to foreigners). Most owners takes majority of these funds in their personal foreign accounts and get away any taxation within Pakistan.

2. All Textile waste sale happens in cash. Believe me it enormous sums of amount alone. it 100% go straight to owners other account not shows in accounting books at all.

So, all in all their is hard time no doubt, electricity cost enormous, financing rates too high due to controling inflation from SBP but still our textile owners happy without showing any profits in their balance sheets at all.

Get ready for default buddy.

 

[PakFactor]

You make excellent argument on the non-availability of home-grown talent in STEM fields. But Dubai seems to be a city almost entirely composed of expatriates. The demographics are:

The population of Dubai is estimated to be 3.5 million as of April 2022 according to government data. As of 2021, 3.2 million were non-Emirati, and 69% were male. Approximately 87% of the expatriate population (and 71% of the emirate's total population) constitute South Asians originating from the subcontinent. About 25% of the population have Iranian origin. About 8% of the total population of Dubai is categorized as "Western". The median age in the emirate was about 27 years.

South Asians + Iranians + Westerners seems like a perfect recipe for high tech economy. That almost resembles California's STEM demographics.

You are still missing several key ingredients for a high-tech economy. Frederick Terman, a Stanford professor, is often called the father of Silicon Valley. He encouraged his students to start their firms in the Stanford Industrial Park rather than going east and joining the established firms.

Eventually, the Department of Defense showed great interest and started investing in the valley and setting up a Naval Research Facility. Stanford University and other surrounding institutions of higher learning adapted to various STEM fields; venture capital firms established themselves as lending and investing institutions with open-ended capital and a relaxed environment through less regulation.

This created its ecosystem in the valley; it is the model of how industrial parks should be set up for high-tech economies.

The problem with the South Asian population is that it does not have a strong STEM base to teach at the standards required by high-tech companies. Talented students migrate to the U.S., EU, or UK for higher learning, are employed locally, and invite their extended families through the migration process. Many tech employees can have side projects to pursue their vision and are practically bankrolled.

Good read about this:

The story of Silicon Valley – How it began, how it boomed, and where it’s headed

(Bild: Nicolas - stock.adobe.com) The recent passing of Intel co-founder and semiconductor pioneer Gordon Moore has brought Silicon Valley back into the news cycle. Moore was instrumental in the development of the US tech industry and helped establish Silicon Valley as a hub of IT innovation. We...

www.power-and-beyond.com

There are other issues regarding immigration, recruiting talent, and keeping it; most of all, the region's instability is a put-off.

This model of Silicon Valley is why I have said the CPEC, while its intent was good and implementation was terrible, should be clear now. If you go back to my posts regarding CPEC, I said countless times that you build the ecosystem around your desired economy, and the institution supports carrying out that vision.

 

[nahtanbob]

Many processes will be automated; all that will be needed is a skeleton crew.

Within the next ten years, India's labor market will not be cheap and will follow the Chinese route.

India has a massive supply of labor

 

[nahtanbob]

The problem with the South Asian population is that it does not have a strong STEM base to teach at the standards required by high-tech companies.

Some parts of India have the STEM base

 

[PoKeMon]

Within the next ten years, India's labor market will not be cheap and will follow the Chinese route.

Agree and thats a sign of development and rise in people living standard. So a welcome thing.

However, it may not be cheap but will remain cheaper than any other alternative country which can provide labor at numbers India can provide sheer due to its population.

Africa, may be?

 

[PakFactor]

India has a massive supply of labor

Even Indians have started to ask for higher-than-average salaries with other benefits similar to those of their Western counterparts in Indian Rupees. A developing labor force will eventually become expensive, even in large amounts.

Some parts of India have the STEM base

A few schools have good programs, but others are also questionable. Bangladesh is better than Pakistan.

 

[PakFactor]

Agree and thats a sign of development and rise in people living standard. So a welcome thing.

However, it may not be cheap but will remain cheaper than any other alternative country which can provide labor at numbers India can provide sheer due to its population.

Africa, may be?

Yes, it's a sign of development. This is where we have an economic phenomenon where an easily replicable industry (sectors) moves out, like textile, toy making, etc. The technology and pharmaceuticals industries (sectors), etc., stay even with higher costs because it's still cheaper than manufacturing in the West; however, it takes extensive resources to train individuals; we are talking decades; you're talking about importing tech and newer materials every day, sending men and women out to learn and come back and replicate those processes. So you can't one day decide to up and leave the Indian labor force because there is none like it, similar to China. So, yes, Africa could benefit down the road.

** In Pakistan's case, we just started in the technology phase and killed it before it got off the ground. Most of all, it's not integrated too well into the global economy. Indian companies have contracts with the US Department of Defense, for example, so India made its industry invaluable to the world.

 

[PoKeMon]

Yes, it's a sign of development. This is where we have an economic phenomenon where an easily replicable industry (sectors) moves out, like textile, toy making, etc. The technology and pharmaceuticals industries (sectors) stay even with higher costs because it's still cheaper than manufacturing in the West; however, it takes extensive resources to train individuals; you're talking about importing tech and newer materials every day, sending men and women out to learn and company back and replicate those processes. So, yes, Africa could benefit down the road.

** In Pakistan's case, we just started in the technology phase and killed it before it got off the ground. Most of all, it's not integrated too well into the global economy. Indian companies have contracts with the US Department of Defense, for example, so India made its industry invaluable to the world.

Not long back we started to see a glimpse of the same in IT industry, Vietnam and Philippines coming into the foray with cheap resources. But it dried down rapidly, cause both countries could not generate the numbers, the headcount, so cant scale up at the same pace.

Being replicable may not be a sole criteria, the ecosystem and supply chain countries like China (manufacturing) and India(IT) has created, its petty hard to take up any industry away from them and still remain competitive and profitable.

Your best bet is, these countries lose interest and find better things to do, otherwise with population in billions, they can any day find people in millions ready to work at cost not not many can match. If not for 5 decades, atleast for 2-3, and I am not counting any natural or unnatural phenomenon to drag these countries back to half poverty.

 

[nahtanbob]

Even Indians have started to ask for higher-than-average salaries with other benefits similar to those of their Western counterparts in Indian Rupees. A developing labor force will eventually become expensive, even in large amounts.

India has massive under-employment. the statistics do not reflect it

 

[PakFactor]

India has massive under-employment. the statistics do not reflect it

We talking about high tech work force, not everyone can become a software engineer, etc.,

 

[nahtanbob]

We talking about high tech work force, not everyone can become a software engineer, etc.,

There are tons of smart people who are not fully employed or under-employed
To clarify - it is a small percentage of the overall population. But in absolute terms it is a large number

 

[vasanthm]

Over the past few years, I've noticed that major Western companies are increasingly setting up global capability centers in cities like Bangalore and Hyderabad. It used to be that many of my friends in IT sales would have to travel to Europe or the US to pitch projects. Now, they say all they need to do is walk over to the next building, where they're often meeting with fellow Indians who have a better understanding of costs and operations. Beyond IT, these firms are also placing Indian professionals in key roles like purchasing and project negotiation.

I can clearly see the next level of knowledge outsourcing boom beyond IT happening in India that will generate massive amount of jobs... Lot of professionals in finance, marketing etc are now part of the this industry...

 

[PakFactor]

No Textile leaving out to no where its just bubbling from PTI Zombies highlighting rare case for different reasons. I work in Textile industry since 95. If you see balance sheets of majority firms 99.99% they hardly shows any profits at all but still every year their business expands reason.

1. GOP allows certain forex %age (5-10) on export proceeds to stash outside (for commission payments to foreigners). Most owners takes majority of these funds in their personal foreign accounts and get away any taxation within Pakistan.

2. All Textile waste sale happens in cash. Believe me it enormous sums of amount alone. it 100% go straight to owners other account not shows in accounting books at all.

So, all in all their is hard time no doubt, electricity cost enormous, financing rates too high due to controling inflation from SBP but still our textile owners happy without showing any profits in their balance sheets at all.

@Forsvaret, Tameem Patwari's post aged like fine wine when he tried to deny the train wreck approaching Pakistan. In another thread, I mentioned the repurposing of land from cotton to sugarcane and the heavy use of water that's killing the other agrarian products. Additionally, they needed to import more than 40% of cotton before textile mills started going into the red; last week, they announced over a hundred facilities closed, etc.

Cotton production plunges 60pc​

Cotton production plunges 60pc

Industry confused due to stark difference in output numbers.

www.dawn.com

Nishat Mills to set up company in UK​

Nishat Mills to set up company in UK

KARACHI: Nishat Mills Limited , the flagship entity of the Nishat Group, has received approval from its Board of Directors to set up a private limited company in the United Kingdom .The company...

www.thenews.com.pk

 

[RescueRanger]

 

[PakFactor]

View attachment 62860

Is that Ishaq Dar, Aurangzeb, and Shahbaz Speed (far right blur) rushing to fix the economy?