PRIME Analytical Reports are independent evidence based studies on the investment climate, economic policies and demographic changes in Pakistan, prepared to improve understanding of business and policy challenges faced by the country’s private sector to help it steer path of growth.
The Oil & Gas Regulatory Authority (OGRA) of Pakistan has introduced a price ceiling on Liquefied Petroleum Gas (LPG) by capping it at PKR 910 per 11.8 kg domestic cylinder. According to one news item (Express Tribune, 3 March), LPG marketing companies have protested against this intervention and termed it a move that will lead to
shortages, promotion of black market activities, overcharging, and social unrest.
Asad Malik became a cellular service subscriber of Herring Sky, a private limited company, in 2012. For this purpose, Asad executed the customer services agreement. He had a postpaid connection and had also subscribed to international roaming facility provided by Herring Sky. During July 2013, he went abroad on a
business trip and was utilizing the international roaming facility provided by Herring Sky. While on the trip, he found out that his cellular service had been terminated. He contacted the customer services to inquire about the reason and was informed that his account services had been suspended because he had a liability of Rs. 55,000/-, which far exceeded his credit limit of Rs. 15,000/-.
Mazoomdar was employed under an employment contract as a supervisor at Erste (Pvt) Ltd. Erste had its offices in a few major cities in Pakistan. Its clients were mainly multinational FMCG brands operating in the country. In November 2006, Erste transferred Mazoomdar from its Peshawar office to its country headquarters located in Karachi. Upon Mazoomdar’s failure to join his new place of posting at Karachi, he was terminated from service. Mazoomdar took legal action against Erste and filed a lawsuit in the Labour Court, Peshawar. After the lawsuit was dismissed for lack of jurisdiction, he then approached the court of Civil Judge, Peshawar. This case study is based on the case proceedings of Mazoomdar versus Erste in the court of Civil Judge, Peshawar.
Behram entered into an agreement with Ahsan to purchase a real estate property. Ahsan was implied to be acting on behalf of the true owners of the property. Behram paid for the property, took its possession and the title of ownership was transferred to his name. The true owners approached the court seeking to regain ownership of the property as Ahsan was not acting on their behalf while carrying out the transaction. Trial court accepted the plea of the true owners and ordered for annulment of the transaction and ordered Ahsan to pay back the full amount of transaction along with interest for the period. Ahsan was also ordered to pay the cost of litigation to both the parties. Behram and Ahsan separately challenged the decisions against them. High Court upheld the original decision of the trial court.
SK Mills (Sugar manufacturing mills) entered in a contract for the sale of sugar with Nasir and Ali.
Nasir and Ali made the full payment in advance to the SK Mills for the delivery of sugar. However, the SK Mills failed to deliver the sugar as per the delivery order; thus signing a new forward contract. The delivery kept on getting delayed each time causing both the parties to sign a new forward contract. Soon Nasir and Ali defaulted on the forward contracts and faced the loss of clientele. Consequently, a lawsuit was filed against the SK Mills in the High Court of Sindh with regards to non-delivery of sugar as per the delivery order. Moreover, Nasir and Ali also demanded the fulfillment of specific terms of the agreement and additionally claimed damages amounting to Rs. 1,000,000,000. Moreover, they requested for the temporary injunction (where court prohibits the defendants from doing a specific act in this particular case; the court directed the SK Mills not to sell sugar to the extent of other party’s claim nor create any third party interest till the disposal of the suit).
Pakistan in the recent years has come to terms with several unexpected natural disasters. These events were inimical to infrastructure and livelihoods.Thousands of people have been injured, displaced and killed because of unforeseen floods, droughts, and cyclones. Such natural hazards are a stark reminder of the fact that Pakistan is one of the most vulnerable countries to the effects of climate change. According to the Global Climate Risk Index,Pakistan ranks 33rd overall on the index and 8th on the list of 10 countries most affected by climate change from 1998 to 2017.
Private property right is a basic moral and economic precondition of attaining individual excellence. It is the bedrock institution of capitalism and is essential for the preservation of individual freedom. The right to own property (in any shape or form) is intrinsically linked to personal wellbeing, which in turn maximizes the overall wealth of society.
This country note examines the responses of public and private sector stakeholder to an increase in maximum residue limits (MRL) on agricultural products imposed by the EU. MRL indicates the permissible limit of traces of pesticides left on agricultural products which are intended for food or animal feed. These limits are fixed and regulated by the European Commission. These MRL were revised upwards in January 2018. The revision affected a wide range of product groups comprising citrus fruits, tree nuts, pome fruits, stone fruits, berries and small fruits, cereals, spices, vegetables and sugar plant.
The Policy Research Institute of Market Economy (PRIME) has published a review of the foreign exchange regulations in Pakistan. The report notes that regulatory policies by the State Bank of Pakistan and other regulators are not conducive to attracting FDI in the country. These regulatory constraints inhibit entry, proper utilization and exit of funds for any foreign investor to invest in startups and venture capital firms in Pakistan. Internationally, countries whose GDP has grown at high rates have been countries which relatively have lesser restrictions on entry of capital as well as foreign direct investment. The publication includes case studies of China, India, Malaysia and Turkey. These countries started off with similar.
Agriculture is the backbone of Pakistan’s economy. It contributes about 24 per cent of Gross Domestic Product (GDP) and accounts for half of the employed labour force. It is also the largest source of foreign exchange earnings. The importance of agriculture in terms of its contribution to Pakistan’s economy is overwhelming. In fact, the share of agriculture in Pakistan’s GDP is significantly higher than other countries in South Asia.
State-Owned Enterprises (SOEs) are used globally by governments for venturing into commercial activities. In Pakistan, there are 204 SOEs categorized into Public Sector Companies (186), Development Finance Institutions (8) and Federal Authorities (10). The Public Sector Companies are further classified as commercial (138) and non-commercial (48)1 . A significant number of SOEs fall in the promotional and advocacy sector followed by energy, transportation and financial sector.