INDUSTRY NEWS JANUARY 2008
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1	PSEB's solution helps auto sector slash costs by 50 pc First ever IT year book within days, 2nd phase of internship programme on cards, says Yusuf	Islamabad-Managing Director PSEB (Pakistan Software Export Board) Yusuf Hussain has said that they have designed a software that has brought down cost in the local auto industry by fifty percent. He said that first ever year book having all the details about IT industry in Pakistan would be launched soon and second phase of their successful internship programme is on cards. He said that our dedicated team has decided to provide maximum IT solutions to the industry in Pakistan to make it competitive in the international market and that sky is the limit for us. Talking exclusively to Pakistan Observer, Yusuf Hussain said that the software called AutoPlus is being distributed free of cost among the local auto parts makers and the PSEB is also imparting training as well as service to this vital sector. PAPAAM (Pakistan Auto Parts Manufacturers Association) representing 300 units across the stretch of country and other stakeholders have lauded the move and are enthusiastic about the whole thing, said Yusuf. "This is a dramatic improvement that has open new horizons for the local industry and hopes are high as the software is bound to make Pakistan competitive on international level," he added. He lauded the support of Business Support Fund (BSF) and Ministry of Finance who made it possible. SME BSF has approved to provide 50 percent funding for the cost of the implementation. Giving details, he said that PSEB had sponsored four unique member IT companies for the development of Enterprise Resource Planning (ERP) software for Small and Medium Enterprise (SME) units. The software has been successfully implemented at model unit Kortech Industries in Lahore . Kortech Industries has now automated all its processes from customer order to the delivery of goods. The implementation of the software has resulted in an 87% reduction in time and a 70% reduction in human resources needed at the model unit. The product is now being implemented at 14 additional units. After implementation in 15 units, the product will be available free of cost for over 250 units. Additional units will only have to pay the cost for implementation of the software. This software is also an equally helpful tool for those involved in business of readymade garments, hosiery, textile processing and surgical instruments. The initiative is to improve the productivity of SME units in these sectors and to allow local software companies to gain expertise in the development of ERP solutions for the local manufacturing industry and to promote the use of open source technology. Switching to training programmes, Yusuf said that under the IT Industry Apprenticeship Program, we offers financial subsidy for the companies to recruit graduates possessing the basic skills and knowledge in IT and other related disciplines. These trainees are hired by companies as full-time employees and put through a 12-month program, consisting of in-company training, on-the-job training and mentoring. The program, focused towards grooming fresh graduates, has proved to be the most successful internship program in nation's history. This program is also aimed towards the development of confidence amongst the local IT business managers regarding the output of IT-oriented educational institutes. Also, he further, this project intends to bridge the gap between the industry and the academic institutions by seeking to mould fresh gradates into world-class professionals. Taking pride in his work has said that in the first internship programme, around 80 percent trainees nominated by PSEB got jobs in the IT industry on merit. Regarding selection procedure he said that the trainees are picked from some 220 institutions across the county who were place in the 250 IT companies. "In first phase we picked 300 trainees but due to extra ordinary results we have decided to hike the number of trainees to 10,000," said the MD PSEB. We have also decided to increase their monthly stipend by 100 percent, he said. He said that PSEB is soon to launch a year book that would give all details of IT in Pakistan. Source: http://pakobserver.net/200711/28/news/business03.asp
2	Trucking Declared As Industry: Notification Issued	JANUARY 2008: The government has issued a gazette notification, declaring trucking as an industry to facilitate truck fleet operators to get loans from commercial banks at competitive rates. It would encourage the sector in its organization and to have much-needed investment. Pakistan's logistic base as essentially underdeveloped, playing a contributory role inhibiting realization of the country's full economic growth potential, though there has been steady progress in the cargo handling capacity at the country's two premier seaports. Incidentally, efficient trucking of freight in the minimum possible time can impart a powerful fillip to export and import sectors. The government had earlier approved the trucking policy prepared by EDB a few months back, which aims to reform and promote an integral, ensuring and sustainable modernization of the trucking sector. The policy has holistic approach by addressing all related cross-cultural and cross-cutting subjects after extensive consultations with stakeholders for the last one and a half year. Declaring trucking sector as industry sector as industry is part of broadening the impact of modernization of trucking sector under National Trade Corridor Improvement Programme (NTCIP). This initiative would help in modernizing trade and logistics of the country to make Pakistan a regional hub for international trade by integrating its international transport systems, he said. The major objective of declaring trucking sector as industry is to encourage fleet operations in the country and to get access to formal finances from the commercial banks and leasing companies to upgrade the present obsolete fleet. he would also facilitate the sector on account of fleet operators at competitive rates, insurance cover to the trucking sector, utilities at industrial rates instead of commercial rates and to attract foreign investment in the formal fleet operations. Source: Auto Industry Magazine (January 2008)
3	Mercedes-Benz Plant Project: Gop Manages To Revive $4 Billion Investment	JANUARY 2008: In a bid to secure $4 billion foreign direct investment, the government has managed to revive Mercedes Benz Plant Sheikhupura. President Pervez Musharraf, who has been very keen to see Mercedes-Benz coming to Pakistan with its project offering truck and other long vehicles' manufacturing facility for the army and other clients, used diplomatic channel to convey to the management that their investment in Pakistan was fully secure and the government will provide sovereign guarantee also. The President asked Pakistan 's ambassador in Germany to take up the matter with Mercedes-Benz Group to convince its management to review its decision of walking of Pakistan regarding its proposed plan to set up a plant in Sheikhupura, Punjab. The sources said the ambassador held a couple of meetings with Mercedes-Benz management to convey the desire of the President of Pakistan. The sources said in response to Pakistan 's offer, Mercedes-Benz's Dubai-based partner Coastal Trading Group's representative Yousuf Najibi visited Pakistan and held separate meetings with President Musharraf and Prime Minister Mohamed Mian Soomro and expressed willingness to revive the project on behalf of the group. The officials in Islamabad confirmed on Tuesday that Coastal Trading which is playing a key role in reviving the project has conveyed to the Government of Pakistan the Mercedes Group's interest for reviving the project and visiting Islamabad shortly for a commitment in writing. The officials working with Coastal Group are hopeful that the Government of Punjab and Mercedes Group will formally sign a memorandum of understanding for the project sometime in January 2008. Mercedes-Benz Group had entered Pakistan with its Dubai based business partner - Coastal Group - in 2006 with a plan to set up a manufacturing plant for large vehicles. It also planned to set up parts manufacturing facility in Pakistan and export it to other countries where it has only assembling facilities. Source: Auto Industry Magazine (January 2008)