INVESTMENT MANAGEMENT ASSIGNMENT #01

Submitted to:
Mr. Waqar Akbar
Submitted By:
Shaikh Muhammad Zeeshan
Saqib Hayat
Muhammad Arslan Shafiq
MBA VI
Session: 2011 2014

Quaid i Azam School of Management Sciences,

Quaid i Azam University, Islamabad

Economic Indicators and Their Trends:

1. GDP is increasing but at different rate. From 2003-2007 the average growth rate was 7%
but it was declined since that and in 2008-2009 the growth rate was lowest 1.5% on
average.
2. Total Investment was 17% of GDP on average from 2003-2007 but it was 8.7% of GDP
in 2012 which shows a declining trend.
3. Per capita income is showing a positive trend from 2003-2013.
4. Interest rate has increased from 7.5% to 14.5% in from 2007 to 2012 but it has declining
trend since that.
5. Inflation rate was 4.8% in 2003 and it is 9.18% in 2013 which shows increasing trend.
6. Unemployment is showing a declining trend since 2003.

Impacts on Various sectors:

1. Impact of GDP: There is a declining trend in GDP growth which has negative impact on all
three major sectors including: Service Sector, Agricultural Sector and Manufacturing Sector.
2. Impact of Total Investment: The total investment shows a declining trend which means
lower investment in different sectors including; Energy, Infrastructure and Textile e.t.c.
3. Impact of Interest Rate: The trend in interest rate is increasing that has caused higher cost of
capital due to which the investment in all the sectors of economy has decreased.
4. Impact of Inflation Rate: The trend of inflation rate is increasing due to which the growth in
Tourism, Retail, Infrastructure and Textile was not as much as had it been if the trend had been
constant or declining.
5. Impact of Unemployment rate: Unemployment rate has declined due to which people had
more money in their hands to consume and it had ultimately resulted in more demand of products
in sectors included: Retail, Telecom, Textile, and Tourism e.t.c.
IDENTIFICATION OF VARIOUS SECTORS FOR INVESTMENT
1. Textile
Despite being 4th largest cotton producer in the world, Pakistans comparative advantage is
marginalized by low value added exports as reflected in the countrys 12th rank in global textile
exports by value. Significant opportunities exist in setting up value addition units, such as
apparel lines to build strong sector base. The textile sector has primarily been outward looking
i.e. export focused, however with rising quantity and quality of domestic consumption, the
industry would need to expand capacity to meet local demand and thus provide investment
opportunities.

2. Power & Energy

Sector Overview:
The current demand and supply gap of 5,000-8,000 MW and demand growing at 8% per annum
ensures guaranteed uptake of power produced by IPP projects at market competitive prices.
Liberal and transparent policy for investors to set up IPP projects one window facilitation for
power projects PPIB at federal level. Guaranteed power purchase produced by IPPs, backed by
sovereign guarantee of GOP provides a very secure investment climate for investors. Power
Parks being set-up at Gaddani (6,600 MW coal potential) and Quaid-e-Azam Solar Park (6,000
MW solar potential). The hot sandy desert of Thar, houses one of the largest lignite coal reserves
in the world. The lignite is dark brown, grayish black or black in colour.

Total Installed Capacity 22,797 MW

IPP Share 9802 MW (43%)

Active Installed Capacity 19,522 MW

Annual Power Generation 2012 12,277 MW

Coal Reserves Billion Tons

Thar

175.506

Thatta

7.112

Dadu

1.328

Badin

1.35

Total

185.278

3. Pharmaceutical
Due to rising life expectancy, spending in healthcare is expected to rise in the coming years and
forecasts predict Pakistan to be 11th largest pharmaceutical market globally by 2016.Parma
industry export size currently stands at around $ 100 million and has the potential of crossing
$1000 million mark.
4. Infrastructure
It is estimated that Pakistan looses approximately 4% to 6% of its GDP due to infrastructural
constraints. And cater this need Economic Coordination Committee of Pakistan has approved the
infrastructure sectors: Transport and logistics, Mass Urban Public Transport, Local Government
Services ,Energy Projects ,Tourism Projects , Industrial Projects ,Irrigation Projects and Social
infrastructure.