KP, Chinese firms sign 11 agreements

Beijing: KP Local Government Secretary Syed Jamal Uddin Shah and a Chinese official are signing five memoranda of understanding for development projects on Monday.—APP

BEIJING: The Khyber Pakhtunkhwa government on Monday signed 11 memoranda of understanding (MoUs) with Chinese companies for development projects in the province under the China-Pakistan Economic Corridor (CPEC).

According to a press release, MoUs were signed for five projects costing up to Rs60 billion. These projects are related to CPEC Tower, construction of a new bus terminal at Chamkani, Ring Road missing link, Health City at Regi Model Town, and Commercial and Residential Reconstruction Centre.

Local Government Secretary Jamal Shah signed the MoUs on behalf of the KP government. Chief Minister Pervez Khattak, Minister for Local Government Inayatullah and Peshawar Development Authority (PDA) Director General Salim Watto were also present on the occasion.

These projects will be jointly executed by PDA and Chinese companies, the press release said.

The construction of the Ring Road missing link will cost up to Rs12bn while that of the new general bus stand at Chamkani will cost Rs10bn. The construction of CPEC Tower will be carried out at Rs5bn while that of Health City at Regi Model Township is estimated to cost up to Rs22bn.

The initial estimate for the construction cost of Commercial and Residential Reconstruction Centre is around Rs11bn.

PC-1s of these projects are complete, it said. The Chinese authorities will soon visit Pakistan to finalise the execution process, said Mr Watto.

Other development projects are related to information technology, special economic zones, power plants, oil refinery, infrastructure and e-commerce.

Speaking at the MoU signing ceremony, Mr Khattak invited Chinese companies to take advantage of the investment-friendly environment in KP.

“We have set the stage to begin the journey of industrialisation in the province. We need the support of our iron brothers to put the province on the path of development and economic growth,” he said.

Appreciating the One Belt, One Road Initiative, he said the CPEC is its flagship component and stressed that business, cultural and social cooperation between Pakistan and China should be further enhanced.

Mr Khattak said a strong security force comprising 4,500 personnel has been established for the protection of foreign workforce, including Chinese nationals.

While emphasising the importance of the CPEC, China-Pakistan Friendship Association President Sha Zhu Kang said the success of One Belt, One Road initiative is linked with the CPEC, which he termed the pilot project of the grand scheme.

He said the proposed corridor stretching from Kashgar to Gwadar will bring about economic and social progress.

He said Chinese companies are already working in KP and providing job opportunities to a large number of locals.

Ambassador Khalid said that around 86 projects, including those in energy, agriculture and infrastructure sectors, will be presented for investment and cooperation. He said the KP chief minister’s visit to China, second in the last four months, underscores the importance of the CPEC and Sino-Pak relations.

The ambassador said all political parties in Pakistan are on the same page as far as Sino-Pak relations are concerned.

He said the CPEC is showing steady progress. Now the Gwadar port is operational and energy and infrastructure projects are being completed in time, he added.

Published in Dawn, April 18th, 2017

Conversation with Careem Pakistan

The CEO of Careem Pakistan talks about how Careem plans to make further inroads into the Pakistani market.

Co-founded by a Pakistani, Mudassir Sheikha, and Magnus Olsson, Founder and MD, Careem began operations in the UAE in 2012. Talha bin Hamid speaks to Junaid Iqbal, CEO, Careem Pakistan, to find more about what Careem’s game plan is as far as making further inroads into the Pakistani market is concerned.

TALHA BIN HAMID: When did Careem decide to enter the Pakistani market?
JUNAID IQBAL: Careem started toying with the idea of launching in Pakistan in early 2015, and various pilots were run that year. We began a test launch in October 2015 when I joined Careem, and we launched in March 2016.

TBH: Which factors prompted Careem’s entry into Pakistan?
JI: Several reasons; the first is the fact that Pakistan is severely underserviced when it comes to public transport and establishing Careem in Pakistan was a great way to create jobs. Secondly, our technology is ‘Made In Pakistan’, so it is only fair that our people should benefit from it. However, it is important to remember that Careem is a platform, not a service provider; ride hailers and providers connect with each other using our technology, but that does not make us a transport company.

TBH: In late January, the Punjab Government’s Provincial Transport Authority declared that ride-hailing services such as Careem were operating outside regulatory boundaries in Lahore. How easy it was to work with the regulatory agencies to resolve the issues?
JI: In almost every country, regulatory bodies have caused the growth of businesses such as ours to lag initially, and the debate around the world has focused on the distinction between the platform and the service provider. Close to 100 countries are now in the process of formulating new regulations in this regard and close to 20 have already done so; Pakistan was no different in that sense because the regulatory bodies in Pakistan considered us to be a car rental company, which we are not; our argument was simple: if we offer a doctors-on-demand service, would that make us a hospital? Of course not. The good news is that we are now engaged with all the provinces in a consultative process aimed at developing new laws specific to an online platform like ours, and we are very excited about working with our Government. In the long run, these laws will help other online platforms, such as AirBnB if and when they come to Pakistan. However, it does mean that when new laws come into play, platforms such as ours will have to meet the requirements set by the regulator.

TBH: How does Careem differentiate itself from Uber and other competing services?
JI: Firstly, we provide multiple ways of booking a car: one the phone, through the web and via our app. Secondly, we have three options as far as booking a ride is concerned: now, later and repeat. Most of our competitors only provide the ‘now’ option. Thirdly, we have several types of cars, which cater to various income segments: Go, Go+ and Business; whereas our competitors only have one. Fourthly, we have a mobile wallet that our customers can top up with cash. Most importantly, the Pathfinder Group headed by Ikram Sehgal, runs very comprehensive background checks on our captains. No other company does anything even remotely close.

TBH: What are the processes in terms of recruiting Careem’s captains and conducting the necessary background?
JI: It is a five-step process: sign up, attend our training session, pass our driving test, get your car’s fitness certificate from CarSure and then submit your paperwork for a background check. Our background checks are very comprehensive; we check our drivers’ NIC with NADRA and their driving license from the relevant authority. After that, a verification officer visits and verifies the prospective driver’s home, records its exact geographic location, and conducts a reputation check in the neighbourhood. He also gets a police certificate from the neighbourhood. If even one of these items is not verified, the person cannot be a captain on our platform.

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“Being a Careem captain involves a five-step process: sign up, attend our training session, pass our driving test, get your car’s fitness certificate from CarSure and then submit your paperwork for a background check.”

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TBH: What factors are considered when Careem collaborates with services and events such as FindMyDoctor and Karachi Eat Festival?
JI: We feel that technology is a progressive force and it is our responsibility to use our platform to facilitate other initiatives aimed at enriching our community. That is why we take pride in working with such partners because we feel that they are playing their part in making Pakistan a better place.

TBH: Given the local flavour of Careem’s of promotions, such as the Shadi Care and the Rickshaw Service, are these ideas generated locally or at your headquarters in the UAE?
JI: Careem is a hyperlocal company, and ideas are generated and executed on a city-to city-level. Each city has to find ways of integrating itself in the community and our marketing teams come up with their own set of ideas.

TBH: What are Careem Pakistan’s short-term objectives in Pakistan?
JI: By 2020, our aim is to create one million job opportunities, attract $10 billion in terms of investment in the public transport infrastructure, and have a presence in an all urban and sub-urban cities.

TBH: What are the main challenges Careem faces?
JI: Finding good talent, including captains, and ensuring the processes involved in conducting background checks are watertight.

Note: This interview was conducted on February 12.

Source: Dawn News