Vol 47, No 2 Autumn/Winter 2011 - Finlays

News
Pakistan Update
Irfan Vazeer
Chief Executive
As we come to the end of 2011
I am able to report that Finlays
operations have been relatively
unscathed by the problems
being experienced by Pakistan.
The Shipping division’s import business
remains on a par with recent years. Next
year we are hoping for growth in the
amount of exports handled, especially to
the Papua New Guinea Sector, one of the
trade lanes that Swire Shipping offers in
Pakistan. That said, our income largely
depends on the revenue generated by the
PNI and the Survey and Tally divisions.
Efforts are being made to increase our
share of these markets by approaching
ship owners and clubs as we feel we have
a very attractive proposition to offer.
We continue to look for tenants to
occupy the vacant units within Finlay
House but understandably, given the
current challenging times, this is proving
difficult.
An already unstable political situation
has become even more precarious in
recent months, amid growing domestic
insecurity and an increasingly strained
relationship with the US.
Violence across Pakistan has continued
to mount on account of militant attacks,
as well as sectarian and ethno political
violence.
Pakistan’s power crisis has become
critical and is now hurting national
economic growth, industrial production
and social life. Sadly there seems little
hope that power cuts will end in the
near future.
Pakistan has been severely affected by
floods for a second consecutive year.
International aid groups, including the
United Nations, have warned that a
disappointing response to the floods has
left millions displaced and vulnerable,
particularly in the South and notably in
Sindh province. Prices of vegetables and
other food items are soaring, as much
farmland remains under water.
The economy meanwhile looks dire
with the IMF having refused to release
a final tranche of this year’s funding
for Pakistan because of repeated failures
to carry out much-needed tax and
other reforms. A substantial increase in
inward remittances during the year has,
however, helped maintain the country’s
reserves.
44 Autumn/Winter ’11