Pakistan is the World's 5th Largest Motorcycles Market

[RiazHaq]

[h=3]Pakistan is the World's 5th Largest Motorcycles Market[/h]

Pakistan is the 5th largest motorcycle market in the world after China, India, Indonesia and Vietnam. With 7,500 new motorcycles being sold everyday, Pakistan is also the among the world's fastest growing two-wheeler markets. Passenger car and motorcycle sales in Pakistan are both soaring at rates of over 20% a year.

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Auto Demand Soaring:

Nearly 2.3 million motorcycles have rolled off the factories in Pakistan in the last 10 months. The production of motorcycles jumped 22.34 percent in the first four months of fiscal year 2017-18 (FY18), over the corresponding period of in FY17, according to the latest data from Pakistan Bureau of Statistics (PBS) as reported by the media.

Pakistan automobile market is also expanding along with the motorcycle market. Sales of passenger cars soared 20.4% to 103,432 units in the first half of the current fiscal year of 2017/18, recently released official data shows. Car sales were 85,901 in the same period of last fiscal year, according to Pakistan Automotive Manufacturers Association (PAMA).

Durable Goods Ownership:

Ownership of consumer durables like computers, home appliances and vehicles is often seen as an important indicator of the size and health of the middle classes in emerging economies. Examples of periodic household surveys used by researchers to measure such data include NSS (National Sampling Survey) in India and PSLM (Pakistan Social and Living Standards Measurement) in Pakistan.


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[TD="class: tr-caption"]Durables Ownership in India and Pakistan. Source: KSBL[/TD]
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Pakistan's Trillion Dollar Economy:

Pakistan is now the world's third fastest growing economy among the world's top 25 economies with PPP GDP of over one trillion US dollars, according to the International Monetary Fund (IMF). IMF has recently raised the country's 2018 growth forecast to 5.6%.

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[TD="class: tr-caption"]Courtesy: Ashraf Hameedi, Highforest Capital[/TD]
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Pakistan 3rd Fastest Among Top 25:

Spectator Index has ranked India first with 7.3% growth, followed by China (6.5%), Pakistan (5.6%), Indonesia (5.3%) and Turkey (3.7%) among the world's 25 largest economies in terms of PPP GDP.

Earlier in October 2017, the International Monetary Fund (IMF) forecast Pakistan's economy to grow at 6.3% CAGR over 2017-2022.

India-Pakistan Comparison:

Dr. Jawaid Abdul Ghani, a professor at Karachi School of Business Leadership, has recently analyzed household surveys in India and Pakistan to discover the following:

1. As of 2015, car ownership in both India and Pakistan is about the same at 6% of households owning a car. However, 41% of Pakistani household own motorcycles, several points higher than India's 32%.

2. 12% of Pakistani households own a computer, slightly higher than 11% in India.

3. Higher percentage of Pakistani households own appliances such as refrigerators (Pakistan 47%, India 33%), washing machines (Pakistan 48%, India 15%) and fans (Pakistan 91%, India 83%).

4. 71% of Indian households own televisions versus 62% in Pakistan.

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[TD="class: tr-caption"]Durables Ownership Growth in Pakistan. Source: KSBL[/TD]
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Growth over Time:

Dr. Abdul Ghani has also analyzed household data to show that the percentage of Pakistani households owning washing machines has doubled while car and refrigerator ownership has tripled and motorcycle ownership jumped 6-fold from 2001 to 2014.

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[TD="class: tr-caption"]Income/Consumption Growth in Pakistan. Source: KSBL[/TD]
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Rapid Income Growth:

Rising ownership of durables in Pakistan has been driven by significant reduction in poverty and growth of household incomes, according to Dr. Abdul Ghani's research. Percentage of households with per capita income of under $2 per day per person has plummeted from 57% in 2001 to 7% in 2014. At the same time, the percentage of households earning $2 to $10 per day per person has soared from 42% of households in 2001 to 87% of households in 2014. The percentage of those earning over $10 per day per person has jumped 7-fold from 1% of households in 2001 to 7% of households in 2014.

Pakistani Middle Class:

Only 5% of Pakistanis in $2-$4 per day per person income group have college degrees. But 20% of those in $4-$10 have college degrees, according to the survey results.

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[TD="class: tr-caption"]Pakistan Middle Class Profile. Source: KSBL[/TD]
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Credit Suisse Income and Wealth Data:

Average Pakistani adult is 20% richer than an average Indian adult and the median wealth of a Pakistani adult is 120% higher than that of his or her Indian counterpart, according to Credit Suisse Wealth Report 2016. Average household wealth in Pakistan has grown 2.1% while it has declined 0.8% in India since the end of last year.


Median wealth data indicates that 50% of Pakistanis own more than $1,180 per adult which is 120% more than the $608 per adult owned by 50% of Indians.

GDP Estimates Using Household Survey Data:

Pakistan's GDP calculated from consumption data in PSLM is significantly higher than the government estimates based on production data. The reverse is true of Indian GDP.

M. Ali Kemal and Ahmed Waqar Qasim, economists at Pakistan Institute of Development Economics (PIDE), explored several published different approaches for sizing Pakistan's underground economy and settled on a combination of PSLM (Pakistan Social and Living Standards Measurement) consumption data and mis-invoicing of exports and imports to conclude that the country's "informal economy was 91% of the formal economy in 2007-08".

Prominent Indian economists Abhijit V Banerjee, Pranab Bardhan, Rohini Somanathan and TN Srinivasan teaching at MIT, UC Berkeley, Yale University and Delhi School of Economics believe that India's GDP estimate based on household survey (National Sampling Service or NSS) data is about half of what the Indian government officially reports as India's GDP.

Here's a quote from French economist Thomas Piketty's book "Capital in the Twenty-First Century" explaining his skepticism of production-based official GDP figures of India and China:

"Note, too, that the very high official growth figures for developing countries (especially India and China) over the past few decades are based almost exclusively on production statistics. If one tries to measure income growth by using household survey data, it is often quite difficult to identify the reported rates of macroeconomic growth: Indian and Chinese incomes are certainly increasing rapidly, but not as rapidly as one would infer from official growth statistics. This paradox-sometimes referred to as the "black hole" of growth-is obviously problematic. It may be due to the overestimation of the growth of output (there are many bureaucratic incentives for doing so), or perhaps the underestimation of income growth (household have their own flaws)), or most likely both. In particular, the missing income may be explained by the possibility that a disproportionate share of the growth in output has gone to the most highly remunerated individuals, whose incomes are not always captured in the tax data."

Who is Dr. Jawaid Abdul Ghani?

The PSLM household data cited in this blog post is taken from a recent presentation made by Dr. Jawaid Abdul Ghani at the Karachi School of Business and Leadership (KSBL) where he teaches. KSBL has been established in collaboration with Cambridge University's Judge Business School. Prior to his current faculty position, Dr. Abdul Ghani taught at MIT's Sloane School of Management and Lahore University of Management Sciences (LUMS). He has a computer science degree from MIT and an MBA from Wharton Business School.

Summary:

Pakistan is the 5th largest motorcycle market in the world after China, India, Indonesia and Vietnam. With 7,500 new motorcycles being sold everyday, Pakistan is also the among the world's fastest growing two-wheeler markets. Passenger car and motorcycles sales in Pakistan are both soaring at rates of over 20% a year. Pakistan has managed to significantly reduce poverty and rapidly grow its middle class since 2001. The country now boasts the world's third fastest growing economy among the world's top 25 economies with PPP GDP of over one trillion US dollars, according to the International Monetary Fund (IMF). IMF has recently raised the country's 2018 growth forecast to 5.6%.

spite of major political, security and economic challenges. The foundation for the rise of the middle class was laid on President Musharraf's watch by his government's decisions to invest in education and infrastructure projects that led to the expansion of both human and financial capital. My hope is that the continued improvement in security situation and implementation of China-Pakistan Economic Corridor (CPEC) related projects will bring in higher long-term investments and accelerate Pakistan's progress toward prosperity for all of its citizens.

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[jimpack]

Biggest bull crap posted above. Good luck.

 

[Raiwind-Destroyer]

 

[nepali.nationalist]

coming from toiletless r@pe capital country please dont be jealous :biggthumpup:

Biggest bull crap posted above. Good luck.

 

[imran_hosein_fan]

Accident market, snatching market, target killing market, robbery market, bhatta market, na-paak-iss-taan

 

[asifA1]

I am a #14 total cars owned to now and I love my Motorbikes
It's a healthy sign of owning a motorcycle versus those people just owning a bicycle.
Riding Motorbikes is totally a unique different concept in regards to getting from point A to B.
A very positive sign of individuals and transport. They say it's freedom to ride a bike anywhere anytime versus car parking etc problems.

 

[RiazHaq]

[FONT=&quot]#Pakistan keeps #terrorists on the run and #economy on a roll
Businesses' focus shifts from bombs and kidnappings to taxes and policy. #Taliban #TTP #terrorism #India #Karachi #Rangers[/FONT]
[FONT=&quot]https://asia.nikkei.com/Politics-Economy/Economy/Pakistan-keeps-ter...[/FONT]
[FONT=&quot]KARACHI -- Terrorism, corruption, misrule: Negative perceptions have dogged Pakistan for years. But thanks to sweeping operations by the army and a powerful paramilitary force, those perceptions may be becoming outdated, and businesses are taking notice.[/FONT]
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[FONT=&quot]In Karachi, the country's largest city, motorcycles and elaborately decorated buses weave down dusty roads between colonial-era buildings. Less than a decade ago, these were truly mean streets. "Between 2010 and 2012, we saw one or two terrorist attacks every month and one or two targeted killings and kidnappings for ransom every day," recalled Army Maj. Gen. Mohammad Saeed. "There were 17 no-go areas which the police could not touch in Karachi."[/FONT]
[FONT=&quot]At the time, even major hotels had occupancy rates of just 10% to 15%. Hundreds of shops and other businesses closed down.[/FONT]
[FONT=&quot]Then the Rangers began to clean up.[/FONT]
[FONT=&quot]The Pakistan Rangers, a paramilitary law enforcement organization overseen by the military and the Interior Ministry, set out to tackle the violence head-on. In 2013, the Rangers Sindh -- which operate in Sindh Province, including Karachi -- mobilized 15,000 troops. The provincial legislature granted them broad powers to search homes and make arrests, enabling them to quickly turn the tide.[/FONT]
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These guns were seized at a hideout in Miranshah -- the front line of Pakistan's anti-terrorism operations. (Photo by Go Yamada)



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[FONT=&quot]In 2017, there were zero bombings and only five kidnappings, according to Saeed, who serves as director general of the Rangers Sindh. This is no small feat in a city with a swelling population of 17 million -- perhaps even 20 million if migrants from rural areas are factored in. "We destroyed all of the terrorists' pockets," he said, adding that hotel occupancy rates are over 90%.[/FONT]
[FONT=&quot]The story is similar in Pakistan's other major cities. And as the Rangers have made headway, business sentiment has improved and growth has picked up.[/FONT]
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Mohammad Saeed, director general of the Pakistan Rangers Sindh



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[FONT=&quot]Pakistan's real gross domestic product grew 5.3% in the fiscal year through June 2017, the quickest pace in 10 years. The central bank projects the growth rate for this fiscal year will approach 6%. Inflation has stabilized and exports are brisk.[/FONT]
[FONT=&quot]"Unfortunately, Pakistan is a victim of negative perception," said Arif Habib, who heads the conglomerate Arif Habib Group. "There is a lot of difference between perception and reality."[/FONT]
[FONT=&quot]But the rest of the world seems to be catching on to the positive changes, too: Foreign direct investment is estimated to reach a record $5 billion or so in the current fiscal year, up from $3.43 billion last year.[/FONT]
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[FONT=&quot]This is not to say Pakistan's safety problems are a thing of the past. The budget for maintaining security is insufficient, and efforts to shore up the police are still a work in progress. Another major challenge is to prevent militants who have fled to neighboring Afghanistan from coming back.[/FONT]
[FONT=&quot]Treacherous borderlands[/FONT]
[FONT=&quot]Miranshah is a one-hour military flight away from Peshawar, in Pakistan's northwest. It is the main city in North Waziristan, one of the semi-autonomous Federally Administered Tribal Areas.[/FONT]
[FONT=&quot]This is the front line of Pakistan's anti-terrorism operations. The Afghan border is just 20km away[/FONT]
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[FONT=&quot]Around 2008, insurgents from al-Qaida and Tehrik-e-Taliban Pakistan controlled some 30% of North Waziristan. But large numbers of militants have fled or been killed since the army began weeding them out in 2014.[/FONT]
[FONT=&quot]More than 300 people died in terrorist attacks in the FATA in 2014, but the number was down to 113 in 2017.[/FONT]
[FONT=&quot]"During the operation, 26,000 rifles, 13,000 submachine guns and explosives for more than 50,000 suicide bombs [were seized]," said Col. Wasi Uddin in a bunker at the heavily guarded headquarters of the army's 7th Infantry Division. Monitors on the wall showed real-time footage of the border with Afghanistan.[/FONT]
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[FONT=&quot]Now that the heavy fighting appears to be over, people are returning and efforts to rebuild houses and public facilities are in full swing. The army is spearheading a drive to reopen hospitals, schools and bazaars in the FATA. Residents have been given 130 sq. km of farmland as well as job training programs.[/FONT]
[FONT=&quot]"Now we are building a 1,400km-long fence along the border to stop the cross-border terror," the colonel said. But sporadic attacks are still a threat in the mountainous border region. A young military officer and another person were killed in an ambush on the outskirts of Miranshah in mid-December.[/FONT]
[FONT=&quot]Pakistan's national security adviser, retired Gen. Nasser Khan Janjua, blames the neighbor. There is "no border control in Afghanistan," said Janjua, who has sparred with the U.S. over security measures. "In 2016, out of 128 terrorist attacks in Pakistan, 125 were cross-border terror from Afghanistan."[/FONT]
[FONT=&quot]There are 145 monitoring posts on the Afghan side of the border -- around one-eighth the number on the Pakistani side -- reflecting the capacity constraints of the Afghan military and police.[/FONT]
[FONT=&quot]Police accountability[/FONT]
[FONT=&quot]Over in Peshawar, at the base of the Khyber Pass on the Pakistani-Afghan border, a determined effort to bolster the police is bearing fruit.[/FONT]
[FONT=&quot]The city is a key hub for trucks carrying goods to and from Afghanistan. Freshly slaughtered lamb, mutton and live peafowl can be found at the local bazaars. Men tend to carry rifles -- a symbol of masculinity -- but violence has decreased significantly, according to the police chief for Khyber-Pakhtunkhwa Province.[/FONT]
[FONT=&quot]"From 2007 to 2017, [the number of] dead and wounded in the province decreased to one-sixth," said Inspector General Salahuddin Khan. The police head count has surged to 82,000, from 34,000 in 2001, and the force receives training from the army.[/FONT]
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A Karachi bazaar bustles with shoppers in December. (Photo by Go Yamada)



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[FONT=&quot]Khan and other police leaders are focusing on "depoliticization, digitization and confidence." They reject politicians' interference with recruiting, and have created a database of rented houses and vehicles terrorists might use.[/FONT]
[FONT=&quot]"For security, cooperation from the local people is essential," Khan said. This includes holding the police themselves accountable: The government has established a Dispute Resolution Council, which includes third-party members appointed by a high court, to receive complaints against law enforcement.[/FONT]
[FONT=&quot]Khan is not satisfied. "Support from the government is better than it used to be," he said. "But the budget is never enough. We are [making requests] all the time."[/FONT]
[FONT=&quot]In Karachi, there is still a sense of unease despite the obvious improvement. Some government officials and foreign businesspeople still ride around in bulletproof vehicles with their own security details.[/FONT]
[FONT=&quot]For now, the Rangers are keeping the pressure on. If police capabilities improve, Saeed said, "we will pull back."[/FONT]