NOT-BY- PROFIT The informal secTor: a significanT conTribuTor To PakisTan's economy

ISLAMABAD

NEWS DESK

WRITINGfor Dawn, au- thor Dr Abdul Wahid explains that the informal sector has become a significant contributor to Pakistan's economy, adding approximately $661 billion, equivalent to 35.6% of the country's GDP.

According to the International Labour Organisation, this sector employs 75% of the rural workforce and 68% of the urban workforce. However, the informal sector is fraught with issues such as child and bonded labor, gender-based discrimination, and workplace insecurities.

This sector comprises small and medium enterprises (SMEs), which include self-employed entrepreneurs, small businesses, informal associations, and street vendors in agriculture and microenterprise setups. These businesses tend to be more resilient to economic downturns, making them an essential component of Pakistan's economy. Despite its significant contribution to the economy, the informal sector creates financial vulnerabilities for formal businesses.

The Growth Enterprise Market (GEM) board of the Pakistan Stock Ex- change (PSX) was established to provide a sub-market for SMEs and highgrowth companies looking to go public.

This board is similar to the Alternative Investment Market established in London by the London Stock Exchange in 1995 to provide a platform for SMEs, business startups, and incubates to raise capital and for investors to access returns from small businesses. The GEM board in Pakistan has less stringent listing criteria and regulations compared to the main board of the PSX. However, to date, only three SMEs have made it to the GEM board, namely Pak Agro Packaging Ltd, Supernet Ltd, and Universal Network Systems.

One of the reasons for this is the low investor participation in Pakistan's formal sector. Only 0.3 million accounts are registered with the National Clearing Company of Pakistan Limited out of around 57.5 million bank accounts, indicating less than 0.5% investor participation at the PSX forum. Moreover, the informal sector's regulatory burden is less stringent than that of the formal sector, leading to investor participation in avenues such as real estate property pricing bubbles, higher forex trading returns, and inflationary pressure. The Imran Khan-led government launched a construction amnesty scheme to promote housing, generate jobs, and fill the gap of millions of housing unit shortages. Since 2018, the average per square feet price has increased from Rs3,300 to 7,000, resulting in 26% returns per annum in open plots investment in Islamabad. This scheme has doubled real estate prices in other cities, such as Karachi, Lahore, Peshawar, and Faisalabad, and shifted the investment chunk toward the real estate sector, leading to industrialists shifting their attention to the real estate sector.

Similarly, the gold price has increased significantly, from Rs56,200 per tola in December 2017 to Rs 201,000 per tola, leading to more than 50% return per annum in gold investment. The exchange rate of rupees to the dollar has also increased from Rs110 to a dollar on 14 Jan 2018 to Rs278, resulting in an average of 30-35% returns per annum.

On the flip side, the KSE-100 Index provided compounded annual returns of 14.55%, and industrial profit was recorded at less than 15% per annum. The inflation rate in 2018 was 5.08%, and now it is above 30%. If the inflationadjusted returns per annum are calculated, it can be said that the real return an investor receives in the formal market

Doodlers assemble to celebrate ‘Phy-gital’ art at Red Bull Doodle Art Pakistan national finals

The doodling season is upon us and with it, doodlers are out in droves to compete in the Red Bull Doodle Art 2023. Out of 3000 entries from across Pakistan, only 20 entries made it to the national finals of the international contest.

On Sunday, March 12, 2023, at the Islamabad Arts Gallery atF-9 Parkin Islamabad, the 19 finalists presented their work and doodled away in order to not only win the Red Bull Doodle Art national finals, and with it, the NFT trophy, but also an opportunity to represent Pakistan in the Red Bull Doodle Art World Final in Amsterdam later this spring.

After an entire day of a showcase of mind-blowing creativity and doodling techniques and ideas, the jury evaluated the entries based on three criteria: creativity, artistic skill and the way the doodle express a ‘love for life’.

Subsequently, the panel decisively declared Umer Nadeem the winner of the Red Bull Doodle Art Pakistan 2023. Iqra Qureshi and Mominah Arif were the first and second runners-up respectively.

“I expected to be in at least top five, but never thought I’d win. So, this is very encouraging,” said Nadeem, who is an architect by profession and an artist “by birth”, as he defines himself on his LinkedIn profile.

For his entry in the national finals, Nadeem doodled an artwork that wowed the jury and the audience alike. He said, “My design was inspired by my home country, Pak-

PRC conducts dissemination session for PHQ staff on Red Cross & Red Crescent Movement

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Red Crescent Punjab conducted a Session for PHQ Staff on Red Cross and Red Crescent Movement. The session was intended to give awareness and refresher about the history of the RCRC Movement to staff, the importance of the movement, mandate, and mission of ICRC, Core Functions & Work, Red Crescent in Pakistan, and ongoing activities of PRCS – PHQ.

Furthermore, the session emphasized seven fundamental principles/pillars of the Red Crescent which include Humanity, Impartiality, Neutrality, Independence, Voluntary Service, Unity, and Uni- versality. The audience was told about the importance of each principle/pillar and how each principle can be applied in our daily work routine to create synergy among all in a better way.

Prof Dr Niaz Ahmad Akhtar assumes charge as Vice Chancellor Quaid-i-Azam University

ISLAMABAD pr

Prof. Dr. Niaz Ahmad Akhtar

(SI) has assumed the charge as Vice Chancellor, Quaid-i-Azam University on Tuesday.

The President of Pakistan, being Chancellor of the University has appointed him as Vice Chancellor, Quaid-i-Azam University for a period of four years. Prof. Dr. Niaz Ahmad Akhtar is an accomplished scholar and academician with a Ph.D. in Chemical Engineering from the esteemed University of Leeds, UK, and an undergraduate degree in Chemical Engineering from the University of Punjab. With a remarkable ca-

Nestlé Pakistan to plant 100,000 trees this year

lAHORE: Nestlé Pakistan will be planting 100,000 trees this year around its operational areas to support its endeavors to reduce carbon footprint in its ambition to achieve net zero by 2050. To kickoff, Nestlé donated 5,000 trees to Parks & Horticulture Authority (PHA) for a plantation drive at Jilani Park, Lahore under its employee volunteer program –Nestlé Cares. Leading the activity, Jason Avanceña, Chief Executive Officer, Nestlé Pakistan said, “Under the umbrella of Nestlé Cares, we aim to foster behavior change by engaging our employees in volunteer activities.” “We are committed to be a force for good throughout our value chain by Creating Shared Value,” he said, adding that planting trees is one of the ways to “protect, renew, and restore natural resources while strengthening communities, and bringing our purpose and values to life.” Speaking on the occasion, Tahir Wattoo, Director General Parks & Horticulture Authority said, “In light of the effects of climate change, it is a national responsibility of every citizen to work towards a greener Pakistan. I would like to thank Nestlé Pakistan and their employees for stepping forward with this generous donation and performing their civic duty.” pr reer spanning decades, Dr. Akhtar has held significant positions in academia. Currently serving as the Vice Chancellor of the University of Punjab, Dr. Niaz also worked as Vice Chancellor of the University of Engineering and Technology (UET) Taxila, Vice Chancellor of the University of Sahiwal, Vice Chancellor of Information and Technology University (ITU-Punjab), and Rector of the National Textile University, Faisalabad (NTU). and industrial setup is negative.

Moreover, Pakistan already has one of the highest income tax rates in the world for corporations, further decreasing the wealth of formal sector investors. Consequently, since 2013, more than 200 companies have been delisted from the PSX, and only 526 companies are listed on the main board.

In conclusion, Pakistan's informal sector plays a crucial role in its economy, providing jobs and contributing significantly to the GDP. However, the lack of investor participation in the formal sector and stringent regulatory burden make it less attractive for SMEs and high-growth companies to list on the GEM board of the PSX.

This has resulted in a shift of investment towards real estate, gold, and forex trading, leading to a negative impact on the formal sector and industrial setup's real returns. The government needs to address these issues by providing incentives for investor participation in the formal sector and reducing the regulatory burden, leading to a more inclusive and sustainable economic growth path for Pakistan.

To read the full article visit www.dawn.com istan. I wanted to represent my own country and so I made it the focal point of my doodle.” The winner Nadeem will now spend four weeks collaborating with an industryleader professional artist to create a new doodle NFT to present at the Red Bull Doodle Art World Final in Amsterdam in May. He will compete with national winners of over 60 countries and take part in a series of workshops and creative sessions over the course of a three-day “phy-gital” experience of the World Final where both physical and digital realms of art meet in the artistic hub of the Netherlands.

“For the World Final in Amsterdam, I hope that I’ll nail it and bring the trophy home to Pakistan,” said Nadeem. The finalists came from all age groups and backgrounds and brought with themselves their unique doodling styles influenced by their unique life experiences, culture and inspirations. The top 19 who made it to the finals were Aliyan Salam, Ameer Hamza, HayyanHarmann, Iqra Qureshi, Maria Khalid, Maria Khan, Minahil Noor (the only participant with two entries in the finals), Mominah Arif, Noor ul Ain, Rabia Zafar, Rafia Abid, Rafia Ashraf, Rahat Shakeel, Rumaisa Jabeen.

ke investment plan offers tremendous opportunity for localization: ceo

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Addressing an audience of industry leaders and policymakers, KE’s Chief Executive Officer Moonis Alvi stated that the company’s proposed PKR 484 billion investment plan is providing a clear, predictable roadmap for the future, which is a tremendous opportunity for local investors to participate in. KE’s Chief Supply Chain Officer Sheraz Kashif also shared that power sector’s potential for localization in Pakistan is an estimated PKR 470 billion over next 10 years. These comments were made at the National Policy Dialogue on Localization for Growth held at a private hotel in Karachi. The event was attended by Chairman NEPRA Tauseef H Farooqi, Governor Sindh Kamran Tessori, Minister of State (Petroleum), Dr Mussadik Malik and Federal Minister of Energy (Power Division) Khurram Dastgir Khan. Executives of manufacturing industries such as Pakistan Cables, Alsons, TransfoPower attended and showcased their progress in developing local alternates for components that are currently being imported. Sharing that the company has “a conviction to base our generation on indigenous sources to reduce reliance on imported fuels,” CEO KE also emphasized that the current macroeconomic conditions make it imperative for all stakeholders – investors, governments, and private sector – to work together in order to build a stronger and self-reliant economy and reduce pressure on the national exchequer. Continuity in regulatory policies and predictable investment plans will increase investor confidence.

Exhibition ‘Potpourri’ begins at COMSATS

An Art Exhibition “Potpourri” opened at COMSATS art Gallery on Friday. The exhibition was inaugurated by Prof. Dr. Sajjad A. Madni, Registrar COMSATS University, Islamabad. The exhibition comprised of Art Works of students of the Department of Art and Design COMSATS University, Islamabad. The art works included paintings, collages as well as Maps of Pakistan. Speaking at the occasion Prof. Dr. Sajjad A. Madni advised students to work hard and produce as much work possible to polish their skills. He said this is critically important for students to get knowledge of trending technologies and bring innovation in their creativity through these. Dr. Madni said that COMSATS University has provided an excellent platform to its students in the form of an art gallery, frequently showcasing international artists as well as local talent. Speaking at the occasion In Charge COMSATS Art Gallery Farrah Mahmood praised the students for hard work that they put in making their art works. pr

Emirates ramp up operations across continents

KARACHI: Emirates has boosted operations by 31% (total ASKMs) since the start of its financial year and has further plans to ramp up seat capacity in its latest published northern summer schedule starting 26 March 2023. In the past months, the airline has planned and executed the rapid growth of its network operations - reintroducing services to 5 cities; adding 251 weekly flights onto existing routes; and continuing the roll-out of service enhancements in the air and on the ground. Adnan Kazim, Emirates’ Chief Commercial Officer said: “Emirates continues to expand its global network and deploy its capacity to meet travel demand across the world. Our financial year started relatively quietly as we held back our ramp up until the planned northern runway rehabilitation program at Dubai International airport was completed in June. From July 2022 onwards, it’s been non-stop expansion.” He added: “Customer demand has been very strong, and our forward bookings are also robust. Emirates is working hard on several fronts - to bring back operating capacity as quickly as the ecosystem can manage, while also upgrading our fleet and product to ensure our customers always enjoy the best possible Emirates experience. pr