Page 73 - CMA Journal (May-June 2025)

Focus Section

Hashoo Group – Hospitality Figure 6: Industrial Production
Excellence and Strategic of Pakistan from 2021-2025
Diversification 10 8.2
8 7
Islamabad-based Hashoo Group, known 6 4.8
for its Pearl Continental hotel chain, set 4
regional benchmarks for quality. Through 2
Pakistan Services Limited, it reported a market cap of PKR 0
2021 2022 2023 2024 2025
26.99 billion and an EPS of PKR 15.14 in Q3 2025. During -2 -1.4
tourism slumps caused by security issues and the -4
-3.9
pandemic, Hashoo diversified into real estate and oil and -6
gas via Zaver Petroleum. Strategic hedging and agile cost Source: Focus Economics - https://www.focus-economics.com/country-indicator/pakistan/industry/
management have allowed sustained profitability across
economic cycles. Chronic energy instability—marked by grid failures,
circular debt, and load-shedding—frequently burdens
Engro Corporation –
factories. The January 2023 blackout, for instance, cost
Driving Agricultural and
the textile sector around USD 70 million and led to
Consumer Innovation
prolonged production interruptions. Companion studies
Engro Corporation leads in reveal that even one hour of power loss can slash textile
fertilizers and consumer goods. As of 2024, it had a revenue by up to 24% and dent export volumes.
market cap of PKR 238.95 billion and an EPS of PKR 40.33.
Equally impactful are foreign exchange shortages and
By backward-integrating chemical inputs and improving
rupee devaluation, which squeeze raw material imports
fertilizer blends, Engro has mitigated currency risks and
and halt operations in export-critical sectors like textiles,
import bottlenecks. Investments in cold-chain logistics
pharmaceuticals, and auto assembly. This explains the
for brands like Olpers and Tarang have strengthened
sharp QIM dips in early and mid-2024.
domestic distribution, maintaining margins despite
regulatory volatility. Temporary interventions—like power subsidies and
short-term currency stabilization—sparked brief
Volatile Industrial Output recoveries, as seen in December 2024. However, without
From January 2024 to April 2025, Pakistan’s Quantum structural fixes in the energy sector and currency
Index of Large Scale Manufacturing (QIM) swung from stability, these gains remain vulnerable.
about 131 to 106, rebounding briefly and then settling QIM volatility and industrial contraction are not statistical
near 108, as shown in Figure 5. noise—they reflect real-world shocks: energy outages,
circular debt, forex bottlenecks, and policy
Figure 5: QIM of Large-Scale Manufacturing Industries stop-go. Pakistan’s modest projected recovery in
2025 hinges on addressing these systemic
140 challenges.
131.47 127.03 127.92 130.21
115.15 122.91 117.2
120 113.97 111.52 111.68 109.3
105.93 108.46 106.16 107.15 108.37 Environmental and Climate
100
Challenges
80
The Climate Policy Uncertainty (CPU) Index in
60
Pakistan swung from a peak of 383.9 in April
40
2024 down to 134.8 in August 2024, with
20 subsequent spikes in November 2024 (302.4) and
0 January 2025 (285.4), as shown in Figure 7.
2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2025 2025 2025 2025
-20 • April 2024 floods: Triggered emergency
Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec Jan Feb Mar Apr
responses like the National Adaptation Plan,
Index % Change
creating acute regulatory ambiguity (CPU ≈ 384).
Source: PBS
• November smog crisis: Toxic pollution in Lahore
prompted court-mandated controls and
These fluctuations align with broader annual trends,
environmental restrictions (CPU ≈ 302).
shown in Figure 6: robust industrial growth in 2021–22
(+8.2%, +7%), followed by steep decline in 2023 (–3.9%) • January 2025 policy drag: COP29 discussions
and 2024 (–1.4%), with a fragile projected recovery of revealed delayed adaptation funding and disjointed
+4.8% in 2025. recovery planning (CPU ≈ 285).
ICMA’s Chartered Management Accountant, May-June 2025 71