Tag: COVID-19 Impact

  • IMF predicts modest 3.5% growth for Pakistan amid global economic uncertainty

    IMF predicts modest 3.5% growth for Pakistan amid global economic uncertainty

    The International Monetary Fund (IMF) has forecasted a 3.5 per cent growth rate for Pakistan’s economy in the fiscal year 2024-25 (FY25), slightly below the government’s target of 3.6 per cent.

    This comes after Pakistan’s economy grew by 2.4 per cent in the fiscal year 2023-24, missing the government’s target of 3.5 per cent.

    Pakistan’s economic challenges are compounded by chronic mismanagement, the aftermath of the COVID-19 pandemic, the war in Ukraine, inflationary pressures from supply chain disruptions, and severe flooding in 2022.

    The IMF’s World Economic Outlook (WEO) update warns of modest global growth over the next two years, influenced by cooling activity in the US, stabilization in Europe, and stronger consumption and exports from China, but significant risks remain.

    Globally, the IMF has maintained its 2024 growth forecast at 3.2 per cent and slightly increased its 2025 forecast to 3.3 per cent. IMF Managing Director Kristalina Georgieva has expressed concern over these tepid growth rates. The US growth forecast for 2024 has been revised down to 2.6 per cent, reflecting slower consumption, while the 2025 forecast remains at 1.9 per cent due to a cooling labor market and moderated spending.

    The IMF has raised China’s 2024 growth forecast to 5.0 per cent, reflecting a rebound in private consumption and strong exports, but recent data showing lower-than-expected GDP growth poses a downside risk.

    The IMF also highlighted persistent risks to inflation due to high services prices and wage growth in labor-intensive sectors, alongside potential trade and geopolitical tensions that could exacerbate price pressures. Additionally, the IMF warned of the impact of economic policy shifts from upcoming elections, which could lead to increased protectionism and fiscal irresponsibility.

    The IMF advised policymakers to restore price stability, gradually ease monetary policy, rebuild fiscal buffers, and implement policies to promote trade and productivity growth.

  • iPhone 16 batteries to be primarily manufactured in India

    iPhone 16 batteries to be primarily manufactured in India

    In a strategic manoeuvre aimed at reducing its reliance on China, Apple has reportedly communicated a strong preference for manufacturing iPhone 16 batteries in India.

    As part of this initiative, an existing Indian battery supplier has been encouraged to scale up production, while Chinese suppliers, including Desay and Simplo Technology, have received directives to establish battery factories within India.

    Additionally, Japanese battery supplier TDK is gearing up for its own production facility in the country.

    This significant shift in strategy deviates from the original decision made by Steve Jobs to centralize most of Apple’s manufacturing operations in China, a move that was previously lauded as a key achievement by Tim Cook during his tenure as COO. 

    The change reflects a growing recognition of the strategic risks associated with being overly dependent on a single country, evident in events such as the COVID-19 pandemic and ongoing geopolitical tensions between the US and China.

    The multifaceted rationale behind this move includes concerns about the impact of global events on manufacturing capacity, the unpredictability of trade relations between major economies, and the reputational challenges posed by close associations with a country facing human rights criticisms.

    Apple’s decision aligns with a broader industry trend of diversifying manufacturing locations to mitigate risks associated with geopolitical and economic uncertainties.

    Notably, the company aims to prioritise Indian production for iPhone 16 batteries, with local government support evident in a Japanese supplier, TDK, establishing a significant facility in Manesar, Haryana.

    While this facility is expected to begin production in 2025, post-iPhone 16 release, it signifies a strategic commitment to bolstering the electronics manufacturing ecosystem in India.

    Apple’s move underlines the industry’s evolving approach to supply chain management in response to a dynamic global landscape.

  • Saudi Arabia lifts age limit, restores pre-COVID Hajj quota for Pakistani pilgrims 

    Saudi Arabia has granted approval to Pakistan’s request, ensuring equal quotas for all private Hajj tour operators during the upcoming pilgrimage scheduled to take place between June 26 and July 1, 2024.

    Saudi Arabia has reinstated Pakistan’s pre-coronavirus Hajj quota, allowing 179,210 pilgrims, and has lifted the previous age limit of 65 years for pilgrimage.

    Anticipating the participation of approximately 90,000 Pakistani pilgrims under the government scheme, an equal number will opt for private tour operators to fulfil this religious obligation.

    The revised scheme for private Hajj operators entails the formation of 180 groups, each comprising 500 people.

    Each private Hajj operator is now permitted to facilitate 100 pilgrims, resulting in diverse groups of pilgrims utilising services from five different operators.

    In a separate announcement, applications for Hajj 2024 under the government scheme are open from November 27 to December 12, 2023. Notably, there are no age restrictions for Hujjaj (pilgrims), and all applicants must possess a valid CNIC and a Machine-Readable Passport valid until December 16, 2024. Additionally, possessing a mandatory bank account is a prerequisite for all applicants.

    Pakistan is currently in talks with airlines to lower airfares for Hajj flights. Simultaneously, negotiations are ongoing with a mobile company to digitize Hajj 2024 through a dedicated cellphone app, showcasing efforts to enhance accessibility and streamline the pilgrimage experience.