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Brightening the Future Through Solar

Huzaifa Gaba
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Brightening the Future Through Solar

Pakistan is among the countries most vulnerable to the effects of climate change, owing to its geographical location and infrastructure. Due to this, Pakistan is experiencing frequent and severe heatwaves, droughts and floods, and they are likely to become more common as the climate continues to wreak havoc on our planet, resulting in loss of life, destruction of property, and dampening of economic activity.

The recent floods in Pakistan have caused unprecedented levels of devastation, contributing greatly to the economic collapse, with a projected cost of damage rising up to about $40 billion – a terrible sum for a nation that is already struggling to stay afloat economically.

Understanding the gravity of the situation, the Government of Pakistan has been taking necessary steps to combat the adverse effects of climate change, including initiatives to boost disaster preparation, expanding the use of renewable energy sources and promoting practices that are sustainable.

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For context, the major chunk of electricity in Pakistan is produced by burning fossil fuels like oil and natural gas, which dominate the energy mix. The country’s circular debt, which stood at Rs 2. 47 trillion in March 2022, was recorded on portions of fuel payments. According to NEPRA, Net FDI in the power industry increased to $911.7 million in FY2021 from $765.6 million in FY2020.

In these testing times, it is imperative for the country to shift to renewable energy from a climate as well as an economical perspective. In these testing times, the shift to renewable energy is viable from a climate as well as economical perspective. The cost of producing electricity from renewable sources like hydroelectric dams, wind turbines, and solar panels is far cheaper than that from power plants that rely on polluting fossil fuels. According to SDPI Renewable Energy Report 2022, Pakistan’s energy mix has witnessed an offtake of renewables over the past decade. Renewables contribute about 4% of total power sector generation, while wind alone contributes more than two-thirds of renewable generation. Energy generated from solar and wind jumped from almost zero in 2011 to 4,320 GWh of electricity units in 2021.

However, following the enactment of import restrictions in the country has impacted the solar business in the same way they have impacted other sectors. Since the country imports top standard solar panels and inverters, their prices have been driven up. As for the ones produced locally, they do not have the same quality and durability.

But recently, a Karachi-based company called “NetLine” has received advanced level ‘Series-A’ investment, with an aim to begin local manufacturing of international quality solar panels in the second half of 2023 (between July and December). According to the company, this will be the first plan to manufacture solar panels of international quality standards.

Established in 2002, NetLine has become a trusted provider of energy and power solutions to major corporations all across Pakistan, including Emaar, Indus Hospital, Engro Polymers, Bahria Icon, along with the armed forces of Pakistan.

Talking further, Umair Zavary, Director, NetLine, says the company was established by his father with the sole purpose of specializing in power-generating equipment such as batteries, USP, AVR, DC chargers and rectifiers. However, once Zavary moved back to Pakistan after completing his studies in the US, he was inspired by the solar industry’s meteoric ascent and sought to introduce the concept in Pakistan. In 2015, NetLine began offering commercial-scale solar systems.

As with other technologies, Pakistan has been relatively late to the game of solar; Zavary says NetLine pioneered the solar drive in Pakistan, educating clients on the advantages of going solar as there was little understanding among the business community of how solar energy systems functioned and the advantages they offered.

Reflecting on the experience, Zavary says, “It was a new product, so it was less marketing and more education. We used to receive over a thousand inquiries each day, but only about five of them would be mature enough to understand and materialize into a sale order.”

Due to the fact that residential solar systems are typically less complicated and more compact than commercial systems, NetLine initially focused on providing solar solutions to the residential sector. However, as time progressed, the company shifted its focus toward the industrial and commercial sectors. For Zavary, the reason behind this shift is a strong, robust team that has expertise in dealing with all different kinds of technical problems; however, in the residential sector, the problems are less complicated yet more frustrating because homeowners are typically non-technical people, so the problems in the system are not technical but user-generated.

Because of the availability of technical teams with expertise in interacting with solar solution providers and making the most of their services, the industrial sector accepted and adapted to solar energy far sooner than the residential sector. “We’ve largely been a company that concentrates on commercial and industrial products, not only because my team is qualified to deal with them, but also because there is a comfort level that it’s much easier and again, the numbers are much, much greater.”

There are three main types of solar energy systems:

  1. On-grid solar systems: These are linked to the power grid so that solar energy may be used to power a household, and any surplus can be sold back to the power company.
  2. Net metering: A NEPRA-approved billing mechanism. It allows distribution companies to purchase excess units of electricity produced by consumers by crediting them against the units consumed from the national grid.
  3. Off-grid solar systems: These are used to provide energy to households and businesses in areas where a connection to the public power grid is not feasible.
  4. Hybrid solar systems: These solar energy systems are a hybrid of on-grid and off-grid systems. They make it possible to power a house with solar energy while simultaneously providing the choice to utilize electricity from the grid as a backup source of energy.

In Pakistan, on-grid systems are more popular because people want to save a good chunk of their electricity bills rather than powering their whole household on solar. The reason for this is the amount required to install solar systems. However, Zavary feels that people should see it as an investment rather than an expense since a solar system that is considered to be of medium range would pay back its cost in three years, while the life of solar panels is around 20 years. Since solar energy generation is more cost-effective and economical over time, homeowners should see the initial investment as a one-time expense.

Upon being asked about the biggest challenge to installing a solar system at home, he says, “the biggest challenge is finance because a homeowner would invest his savings to install a solar system, whereas, in the industrial sector, they don’t have to worry about funds; this is also a reason that solar got popularized in the industrial sector more.”

“Another major difficulty is our financial sector, which is so complicated that people resist taking loans, in contrast to the financial sectors in the United States, which push people to accept credits,” he adds.

The State Bank of Pakistan has launched the ‘Solar Financing Pakistan’ initiative to address this issue by providing loans to the residential, agricultural, commercial, and industrial sectors at 6% flat interest rates and in reasonable monthly installments for the purpose of installing solar energy systems of up to 1 MegaWatt in capacity.

The government is working diligently to encourage the use of renewable energy sources across the country by making significant efforts and undertaking important initiatives. The National Transmission and Despatch Company (NTDC), which falls under the Ministry of Energy, has just announced the Indicative Generation Capacity Expansion Plan (IGCEP) 2022–2021. The goal of the effort is to increase the amount of solar power added to the national grid by more than 8,000 MW over the next decade. Moreover, recently, Prime Minister Shehbaz Sharif has urged Turkiye to invest in 10,000MW worth of solar projects around the country.

In light of this fact, more companies are entering the solar industry to assist in the propagation of solar waves throughout the nation. Despite this, NetLine continues to be one of the most trusted and oldest solar solution providers owing to their expert and focused approach.

As for competition, Zavary states, “We are not just a solar company; rather, we are a complete power solution provider. Therefore, for us, we have competition in different categories. However, we have an advantage over them in the sense that they are dealing in one particular category, whereas we are a one-stop shop for all different kinds of power requirements.”

For Zavary, the country’s solar power industry has a tremendous amount of untapped potential. This renewable source of power is quickly becoming the energy source of choice for many factories and companies that want to reduce both their operating expenses and their impact on the environment. Within a very short period of time, it has amassed more support than any other kind of renewable energy. In contrast to other forms of renewable energy, its installation is simpler and more expedient.

“The installation of a power plant with a capacity of five megawatts will take around two years, but installing solar panels would take just three months. Therefore, it is the most expedient approach to advance our goals, which are to reduce our import costs, clean our environment and preserve our economy,” he says.

However, like all companies, NetLine is also facing an immense challenge in fulfilling orders due to import bans in the country. “We have orders from our customers, but banks are not opening LCs for the import of this equipment, so we are not being able to give them supply. A number of pieces of equipment are stuck up in the import stage due to LC issues. He urged the government to resolve this issue of LCs on a priority basis,” Umair said.

For our current economic and electricity crises to be mitigated, it is imperative for the government to raise public awareness and encourage the widespread usage of domestic solar energy. And NetLine, in addition to promoting its brand, is also educating consumers on the value of solar power.

“In 2017, we did a roadshow in Karachi and Lahore. We went to multiple universities to raise awareness across these cities to educate students. Additionally, we also introduced our international delegates to students to help them with their in-depth inquiries on solar energy because informing people on the significance of it is the first step in making it widespread throughout the country,” says Zavary.

But clean energy comes with its own set of challenges. Although solar and wind energy projects could be more cost-effective in the long run, their functionality is reliant on the amount of available sunshine and wind. For instance, the Quaid-e-Azam solar plant in Punjab, which generates 100MW, was built for $131 million ($1.31 million per MW) in 2015. However, because of the smog and dirt, the project can now only generate 18.5% of the electricity that it is capable of producing, despite the capacity of 100 MW.

Since the government has set a goal of expanding the use of renewable energy (mostly solar and wind power) from its current level of around 5% to 20% by 2025 and 30% by 2030, NetLine has ambitious business expansion plans in the near future. The company intends to manufacture solar panels at a local level with an annual capacity of around 180 megawatts. For this purpose, a plot of three acres of land has been purchased on the outskirts of Islamabad, and the equipment, such as plants and machinery, has been imported from Turkey.

Zavary believes the issue of Pakistan’s power deficit may be solved in the long run via the use of renewable sources of energy (The quantity of sunshine that the planet gets in only one hour is sufficient, in theory, to satisfy the requirements for energy production of the whole human population for close to one full year). Because of Pakistan’s geographic position and climate in general, the majority of the country’s landscape is exposed to an adequate amount of sunshine throughout the year. The country boasts one of the greatest levels of solar radiation in the world, with an average of around 6 to 7 kWh/m2/day of solar radiation. More than 8 kWh/m2 of solar radiation is received each day in the south and west of the nation, making these regions ideal locations for solar energy production.

Attracting and Retaining Customers in 2023

Faizan Syed
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Attracting and Retaining Customers in 2023

Attracting and retaining customers is an essential part of running a successful business. In 2023, the landscape of customer acquisition and retention will look different than it does today due to the rapid growth of technology, the emergence of new customer segments, and the changing preferences of consumers. Companies must prepare and adapt accordingly in order to successfully attract and retain customers in the future.

Develop a Customer-Centric Strategy

In order to attract and retain customers in the future, companies must first develop a customer-centric strategy. This will involve understanding customer needs and preferences, identifying target segments, and designing a comprehensive plan for engaging with customers. Companies should strive to create a personalised, seamless experience for each customer, both online and offline.

Utilising Digital Channels

Digital channels, such as social media, websites and mobile apps, will be increasingly important for engaging with customers in 2023. Companies should focus on developing a comprehensive digital presence, with content tailored to the interests of their target customers. Additionally, companies should leverage digital channels to build relationships with customers, provide useful information, and offer incentives to encourage loyalty.

A local example of utilising digital channels in Pakistan would be the use of online banking. In recent years, many Pakistani banks have started offering online banking services/mobile apps, allowing customers to easily transfer money online, pay bills, check account balances and more. Banks are also utilising mobile banking applications to provide customers with more convenient ways to access their financial accounts. These digital channels provide customers with a more secure and convenient way of managing their finances, as well as offering additional services such as cashback and rewards.

Adapting to New Technologies

In 2023, new technologies, such as artificial intelligence (AI), virtual reality (VR), and the internet of things (IoT), will become increasingly important for customer acquisition and retention. Companies should strive to stay abreast of new technologies and their potential applications for customer engagement. This may require investing in new technologies, such as AI-powered chatbots, or leveraging existing technologies to create a more immersive experience for customers.

Many schools in Pakistan are using virtual reality to enhance students learning and engagement. Students can explore complex concepts in a 3D, interactive environment, allowing them to gain a deeper understanding of the subject matter. VR is also used to create immersive, interactive simulations and virtual field trips, taking students to places they would otherwise never be able to visit.

Cities in Pakistan are now using the internet of things (IoT) to create smarter, more efficient cities. IoT devices are used to monitor traffic and air quality, optimise energy consumption, and improve public safety. Sensors in smart buildings can monitor occupancy and temperature, while connected street lights can dim or brighten depending on the time of the day.

Analysing Customer Data

Data analysis will be a critical component of customer acquisition and retention in 2023. Companies should leverage customer data to gain insights into customer behaviour, preferences, and motivations. This data can then be used to inform marketing strategies and target customers with personalised offers and promotions.

Customer Retention Strategies to Prepare For

In order to successfully attract and retain customers in 2023, companies must develop strategies for engaging with customers and encouraging loyalty. Here are some strategies that companies should consider.

1. Offer Incentives

Companies should offer incentives, such as discounts and rewards, to encourage customers to remain loyal. This could include loyalty programmes, special offers for repeat customers, or rewards for referring friends.

In Pakistan, local businesses often offer incentives to customers to increase sales. For example, a restaurant in Islamabad may offer a free dessert with a purchase of a meal. A shoe store in Lahore may provide a 10% discount on the second pair of shoes purchased. A hotel may offer a free night’s stay to customers who book two nights or more.

By offering these incentives, businesses can encourage customers to buy more of their products or services.

2. Personalise the Experience

Companies should strive to create a personalised experience for each customer. This could involve gathering data on customer preferences and using it to tailor promotions and offers or develop a personal relationship with customers.

3. Leverage Technology

Companies should leverage new technologies, such as AI, to engage with customers in more meaningful ways. This could include using AI-powered chatbots to answer customer questions or offering virtual reality experiences to give customers a more immersive experience.

One example of leveraging technology in Pakistan is the use of digital health records. This technology has been adopted by many hospitals and clinics in the country in order to streamline the healthcare process and reduce paperwork. Digital health records are accessible to the patient, the doctor, and other healthcare professionals, which makes it easier to track and update patient data. In addition, digital health records can help improve the accuracy and timeliness of medical care, reduce medical errors and improve patient safety.

4. Improve Customer Service

Companies should focus on improving customer service, both online and offline. This could involve investing in customer service training or providing more ways for customers to get in touch with customer service representatives.

5. Listen to Feedback

Companies should listen to customer feedback and use it to improve their products, services, and overall customer experience. This could involve running surveys, hosting focus groups, or monitoring social media conversations.

6. Targeted Email

To retain high-value customers.

7. Loyalty Cards

To incentivize repeat purchases from loyal customers.

8. Referral Programmes or Reward Points

for existing customers so they can spread the word about your company.

9. Free Shipping on Large Orders

To keep customers coming back for more purchases, even if they have to pay for shipping next time around (think Daraz, iShopping.pk, AliExpress, OLX etc.).

By preparing for the changing landscape of customer acquisition and retention in 2023, companies can ensure that they are well-positioned to successfully attract and retain customers in the future.

Management Thinking Needs a New Paradigm

Masood Ahmed
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Management Thinking Needs a New Paradigm

The recent megafloods in Pakistan were yet another testimony that the ‘Climate Crisis’ is the biggest challenge of our time that is threatening the very existence of the human race on planet Earth. The changes to Earth’s ecosystems, caused by human interventions, are so formidable that scientists have suggested that we may have entered into a new geological epoch, ‘Anthropocene- the Age of Humans.’

Businesses have to play the leading role in tackling the climate crises that many believe have been caused to a larger extent, by their reckless use of natural resources to enhance profits.

We cannot change the way our organization are managed until we bring about a drastic change in management thinking.  There is a need to shift the focus of business leaders from short-term business issues and demands to long-term thinking that incorporates the interest of a wide range of stakeholders that also includes the coming generations. What is required is to prepare future business leaders who take business decisions while considering the impact on society and the environment in the long term.

As quoted in a recent article in Time magazine, Tima Bansal, a professor at Ivey Business School in London, Ontario, has said, “We have a crisis on our hands, and business schools need to act. MBA programs can no longer justify teaching future business leaders to maximize profits at the expense of the planet”.

There is a need for a paradigm shift in business education where the centrality of enhancing shareholders’ wealth, as the sole purpose of business, gives way to the concept where ecology takes precedence over society and society takes precedence over business. We cannot place business, society and ecology on par with each other. Can we survive without oxygen? The drastic reality has to be ingrained in the minds of every business student that the protection of ecosystems is vital for the survival of the society in which businesses operate.

The students also need to come out of the compartmentalized thinking that makes them only domain-specific thinkers and collaborators such as marketing, HR, and Finance of SCM. What is required is to develop systemic thinking that enables students to see the interconnectedness of business, society and the environment to deal with complex societal and environmental challenges that have no simplistic solution.

In Pakistani business schools, the courses of business ethics and CSR deal with the issues of sustainability, but there is a need to incorporate the concept of sustainability in every course of the business curriculum.

At SZABIST, we have designed and introduced an MBA elective in Corporate Sustainability to start a discourse on the importance of the role of businesses in mitigating social and environmental problems. The course’s major thrust was on inducing students to think beyond profits and become an agent of change as business leaders for the welfare of society and the protection of the environment. The notion of ‘Weak Sustainability’, which considers no essential difference between natural capital and manufactured capital, is discussed in comparison with ‘Strong Sustainability’, which argues for the limitation of substitutability of natural capital with man-made capital and for the preservation of critical natural resources. Successful sustainability practices of companies were shared with the caveat that doing less harm to the environment by reducing carbon emissions is not the same as having a net positive impact on the environment which should be the aim of organizations to reverse the negative impact of carbon emissions on the environment. While discussing corporate sustainability reporting with students, it was shared that the production of sustainability reports should not become an end itself, and organizations must strive to create a real positive impact on society and the environment. As the statistics show that the number of companies publishing sustainability reports has increased from 11 companies in 1999 to 4,347 companies in 2016, but surprisingly, during the same time period, the percentage of carbon emissions has been on the rise, from about 24.7 billion tons to almost 35.8 billion tons.

What is required from academia is to incorporate the concepts of sustainability in every course of business curriculum and include the courses of natural sciences in business education so that our future leaders are well aware of the symbiotic relationship among business, society and ecology.

The message to the present and future business leaders is to reconnect with nature and cherish the only planet that we have to live on.

What People Really Want from Brands Amid the Cost-of-Living Crisis?

Sheikh Adil Hussain
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What People Really Want from Brands Amid the Cost-of-Living Crisis?

Throughout their evolution, brands have held on to one common part of their definition; of being a promise of a certain standard or quality. The expectation from the consumers at large has also not changed over time. At the least, a branded product is expected to deliver a pre-set experience vs. an unbranded product, thereby reducing the risk of investment. When you know what you’re purchasing in exchange for your hard-earned money, you’re making a conscious transaction/ tradeoff in your mind. You are dealing in terms of value.

Now whether you’re in good times or bad economically, the above premise remains true. It could be argued that in recessionary times, it gets exacerbated, and people become even more conscious about the price they put on value and become pickier about the return they’re going to get in terms of the experience. In these times, it becomes imperative not to play with the formulations which will impact the quality of your product because that is one thing the consumer is not going to forgive. If they are used to a certain experience for a pegged amount of money, and you alter that, well, that is a cardinal sin in the marketing world. Consumers will be unforgiving and will most likely leave your franchise and not come back, just out of spite.

Why is the above so? Like most answers in marketing, it’s quite simple. Familiarity. That’s it. I’m not going to quote any psychological or human behavioural studies. Instead, we will just rely on common sense and logic. Familiarity breeds comfort, safety, and confidence. You tend to be more open and relaxed with people you know well, you think less when buying brands you regularly buy or see more, and you let your guard down when it’s a repetitive action. The human brain works in mysterious ways, but at its core, it tries to simplify by sorting and providing structure. To do that, it assigns labels, puts in boxes and codifies stimuli to automate responses as much as possible. It does this to reduce the processing load and free up capacity for the more complex tasks that await the brain. Brands provide that opportunity for the brain to sort and simplify. They promise a certain value that the brain is used to.

We decipher value in many ways, the simplest being the price we pay for a certain item or service. However, in marketing terms, it also alludes to the benefits being offered. Two detergents priced the same may offer different values; if one promises better stain removal or more fragrance or being soft on clothes as additional benefits, It may also be an extra product for the same price, it could be more mileage (lasts longer or washes more clothes) for the same price, or it could be a bigger pack at a less per gram price. Value comes in many different shapes and sizes, and it is important to be aware of all its aspects so we as marketers, can know which ones we can tweak when faced with margin pressures.

To recap, brands provide a promise of delivering a certain value consistently. In good times or bad, consumers rely on that promise to help them decide whether to part with their money or not. Brands help the brain make this decision easily by dialling down the risk due to the familiarity,, and everyone goes home happy. Can’t be that simple, right?

Well, actually, it is, but we forget that we still haven’t discussed the marketer here, and marketers love to complicate things. In good times or bad, we need to keep focusing on the basics. These include continuing to build mental and physical availability (Byron Sharp), to building Top of Mind via investing behind excessive Share of Voice, maintaining a healthy balance between short-term tactical moves and long-term brand-building campaigns (typically a 60:40 budget split as per Les Binet & Peter Fields) and ensuring we keep revisiting our segmentation definitions and our 4Ps (Mark Ritson).

It is also prudent to remember that FMCG categories usually tend not to get as severely impacted as some other discretionary categories during a recession. Whether it was the global meltdown of 2008 or the pandemic of 2019, companies operating in the FMCG sector actually came out quite well. This goes back mainly to the adage that people won’t stop having food, washing clothes, or taking a bath. Now this is a very simplistic and presumptuous view, and category contraction is an actual thing; however, it takes time. The price of 1kg of tea has gone up by 20-60% in just one year, yet the category shows no signs of volume loss. Numerous household and personal care categories have taken multiple price increases either directly or through downsizing in 2022, with, at worse, a flat volume internally and a low single-digit volume growth for the category. The trend is pointing downwards, but it takes time, which gives marketers enough room to try and figure out how to navigate through these times.

The playbook is simple, but it merits repeating as it is easily forgotten. When faced with margin pressures during recessionary times, don’t downgrade the quality by tinkering with the formulations. Downsize to an extent but know your cutoff. Don’t take away the single-use experience. Cut all the frills, excess packaging, fancy features on the box, reducing outer carton dimensions etc., go through the entire value chain and question everything. Above all, don’t stop talking to the consumer or observing them use your product. Most of the answers will come from here. There are no easy solutions to breaking out of fixed price points, but the clues will come from them, nowhere else.

So, what do people want from brands amid a cost-of-living crisis? Keep delivering the same value you always have. That’s it. If you’re downsizing, don’t play with the quality and ensure the single-use experience is not diluted. If you’re increasing the price, don’t diminish the quality and try to add an extra benefit.

As mentioned before, difficult times are usually ok for the FMCG industry, so you would think that marketing budgets wouldn’t get impacted. The contrary is true, however. Remember Coca-Cola’s announcement as soon as the pandemic hit? Time proved that that was the wrong decision. Many astute minds will tell you to maintain your marketing spends, if not double down on them during difficult times. This goes back to mental availability breeding familiarity, and we all know how that helps, building excess SOV since others will be cutting their budgets; you’ll get higher SOV for the same money leading to higher TOM and eventually market share.

Along with the above, tweaking messages to communicate value to our brands will only help. This doesn’t mean we start making slow-motion montages of closed roads and offices set to a monotone VO and black-and-white visuals; instead, stay true to your brand’s tone, character, and essence. Communicate how you’re continuing to provide value and it’ll do a world of good.

I write the above more as a reminder to myself than anyone else, as I’m faced with similar challenges on my brands. It helps to step away sometimes and take a more holistic view of the situation before diving back in. 2023 is going to be a difficult year; there are no two ways about it. We will struggle to keep our heads above water, so if we can help in any way possible, we must. Businesses will face margin pressures; inflation will continue to rise which will put hard choices in front of consumers. So, if we can hold off that price increase a little longer, or not take the grammage cut a little longer, not dilute the formulations a little longer, run that consumer promotion for a little longer, not cut marketing spends for a bit longer, introduce, protect and communicate value, then let’s do it!

Maximising ROI, Engagement Through Sports Events

Arslan Shaikh
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Maximising ROI, Engagement Through Sports Events

Sports events today are like never-ending festivals, where attendees enjoy cheering for their favourite teams, enter competitions and win prizes. Meanwhile, businesses make a sufficient profit by investing minimal effort and funds intelligently. As for brands, they desire nothing but to attract new customers and keep the older ones loyal.

Since word of mouth is considered to be the most reliable mode of marketing, people believe and value the opinions of their loved ones, their favourite sportsmen, teams and leagues. You must have seen someone around you fighting over who the GOAT is; Cristiano Ronaldo or Lionel Messi? 
 and they might not have anything to do with either of them. This is the power of sports. No other industry can consume people so emotionally, who celebrate and regret their every action, every wicket, every goal and every ace without knowing them even remotely.

Keeping in mind the power ‘sports’ has to engage people, numerous brands now look to deliver their message through athletes and sponsorships. Marketing through sports and athletes, however, is not new. Probably the first such stint was performed by the duo Puma and Pele, famously known as the ‘Puma and the Pause campaign’.

During the FIFA World Cup final in 1970, the Brazilian star player asked the referee to stop the game as he had to tie his shoelaces. Knowing well that he was the biggest player in the world at that moment and was the centre of attention, he conveniently took long to tie his laces and put Puma’s shoes in focus. It was probably the first marketing campaign of this sort.

It was just the beginning, and then corporations’ dependence on athletes for product endorsement and sports events for marketing to increase their brand recognition kept increasing with each passing day.

To have an idea of the size of investment made by the brands in the sports industry today, around $57 billion were spent on sports sponsorship in 2020, and the value is expected to reach $87.60 by 2027. A major reason for that increase is the exponential growth in the number of sporting events taking place every day.

Take cricket for example. About 40 years back, the sport was considered a seasonal one. However, it gradually grew into new formats like ODIs coming in and new countries getting the ICC full-time membership. With the introduction of T20 cricket in the early 2000s, its popularity skyrocketed.

Then came the Indian Premier League in 2008, and it changed the whole course of the game. Since then, almost every country now holds their own league, trying to experiment with different formats and rules. Hence cricket, which was once a seasonal sport, is played throughout the year.

With more leagues coming into existence, different formats and players from non-cricketing nations came into the limelight. This has brought more opportunities for brands to be visible, increase their recall value, and earn the loyalty of their fans.

The pioneer of the cricket leagues, IPL, has a huge viewership around the world, averaging 31.57 million. Therefore, it is considered a viable place for brands to advertise as they will get audiences from different demographics, age groups, social classes and ethnicities.

To give you an idea of how lucrative it is for a brand to run a marketing campaign with a sports event like the IPL, a company called Rapido witnessed a 60 per cent uplift during pre-IPL campaigns. (They had yet to evaluate the conversions as the campaign was underway).

It is just an example of IPL; there is the Big Bash League, Pakistan Super League, Lanka Premier League and dozens of others that can be used as a tool for marketing
 and these leagues only feature cricket. There are absolutely huge international and franchise-based tournaments involving different sports, such as football, basketball, baseball, tennis, badminton and many more. There are just limitless ways in which small and large-scale firms can leverage their brands during sports events.

Digitization has also been instrumental in helping brands market their products and improve brand recall. A report from Nielson Sports revealed that fans also have evolved in terms of their viewing habits. According to the report, about 40.7 per cent of fans now stream live sports through digital platforms. Similarly, 47 per cent of the viewers switch between different screens.

A prime example of efficiently exploiting this aspect of the spectrum is Daraz. The online shopping platform acquired the rights from the Pakistan Cricket Board in 2021 to live-stream their matches on their app. As a result, hundreds and thousands, if not millions, of users downloaded the app to witness the live action.

And how has it helped them? Their reach increased massively. Now, they could send push notifications to thousands of people using their app; the brand recall reached new heights, and they earned more through advertisements of other bands during the stream and their special coverage of the matches. The expanding sports industry is providing businesses with a horizon of opportunities that has absolutely no end.

It is understandable that not all brands can spend like TATA, who disbursed INR 440 crores to attach their name with the IPL. However, it does not mean that being a start-up or a sole proprietor, you cannot make the most of this industry. You can build excitement for a game, celebrate the success of a team or share fans’ depression after their team suffers a defeat. If you own a small clothing brand, you can launch a limited-edition design for a specific event, like a jersey with Messi printed on it after the World Cup. Or, if you are a restaurant owner, you can offer a complimentary slice of cake if the supported team wins. In case they lose, you can offer discounts for fans to cheer them up. Such marketing strategies can be adopted by all kinds of businesses, irrespective of the scale they are operating on.

Sapphire – Towards a Sustainable Future ‘Little by Little’

Anusha Zahid
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Sapphire – Towards a Sustainable Future ‘Little by Little’

SYNERGYZER: How would you describe sustainable fashion?

JAMES APARICIO: Fashion is a form of self-expression, and our choices reflect who we are or aim to be. For Sapphire, sustainable fashion represents products, manufacturing processes, raw material usage, activities and shopping practices that are ethical and that minimize the impact on the environment along with mindfulness for the people involved in production. Sustainability for us is a vital measure for a circular future.

SYNERGYZER: Do you think there is demand for eco-fashion in Pakistan?

JAMES APARICIO: Eco-fashion is of two kinds. Brands that function in a responsible way and brands that offer sustainable specific products. Over the years, as a result of increased awareness, consumers generally expect and are interested in knowing what a brand does to play its role in reducing its environmental impact and incorporating ethical business practices. However, due to a higher price, as a result of higher costs and lower availability of sustainable products in the market, we do not have a substantial demand for eco-friendly fashion in Pakistan yet.

SYNERGYZER: Do you think demand will come in the near future?

JAMES APARICIO: The threat posed by climate change is accelerating at an unprecedented rate. In many ways, the pandemic has allowed us to reflect on our lifestyles and has taught us to be more conscious of ourselves and our surroundings. Due to this, there is growing awareness about the significance of preserving the environment.

Having said that, I do not see a specific ethical fashion industry appearing in the mass market any time soon; however, smaller sustainable businesses will emerge, targeting a niche in Pakistan. In the age of social media, bigger brands will be more considerate of the consumer’s perception and will start implementing more conscious ways of conducting business.

SYNERGYZER: Why in your opinion, has ethical fashion not taken off in Pakistan as much as it has in the West?

JAMES APARICIO: I think there is a difference between hype and actually what is happening. Yes, there are emerging businesses offering sustainable products and a number of big names that have implemented sustainable initiatives – so yes, there is a presence, but what goes behind it is not necessarily eco-friendly. It is mostly just leveraged marketing gimmick.

There are many ‘ethical’ brands that get their ‘sustainable’ product made in organic cotton shipped to them from the other side of the world, packaged in plastic and sold online to be delivered by a courier in a truck (which in its true essence is not sustainable).

Numerous brands flaunt their environmental credentials but are still using Lycra in their denim, which does not break down or synthetic fabrics, which are derived from fossil fuels. But it is not entirely the brands that are at fault. In social media awareness, sustainability is definitely a topic of discussion, but on a very superficial level, unfortunately.
Consumers don’t ask enough questions and are perhaps not fully aware of what sustainability means. When I am in a large brand’s store, I see everyone looking at style, fabric, colour, yet; no one is paying attention to the care label or asking how it was made.

Hence, I believe consumers are both the culprits and victims.

Organic raw materials and recycled fabrics are costly to procure and manufacture as opposed to synthetic fabrics and mass-produced chemicals. Due to this, brands that do in fact, want to invest in sustainable practices are restricted as the demand remains low and the cost and prices are higher. With the economic situation in Pakistan, consumers are highly price-sensitive when it comes to fashion and apparel. Therefore, due to a lack of awareness, availability of reasonable alternatives, and a lower supply of sustainable products, ethical fashion is not currently a priority for consumers in Pakistan. In the West, since there is more consciousness, higher demand and a willingness to pay more, fashion retailers are compelled to invest in eco-friendly business practices.

SYNERGYZER: How in your opinion, fashion retail brands in Pakistan can increase awareness of sustainable fashion or slow fashion?

JAMES APARICIO: In the age of social media and digitalisation, brands have access to direct communication with existing and potential customers. With a massive following, retailers can educate consumers about the significance of sustainable fashion choices with influential and engaging content. In our experience, one of SAPPHIRE’s most successful digital campaigns was the ‘Sustainability campaign’, which acquired excellent organic engagement and reach and was widely celebrated by the audience. Having said that, an element of educating the consumer is key, but ensuring that what is promised will actually be delivered is also essential.

Moreover, while the retail industry needs to play a role, I believe our government also needs to start being bold and visionary with its policies for preserving the environment. By facilitating and incentivizing the fashion industry as well as the public to embrace sustainable practices, the government can drive a shift.

SYNERGYZER: Is Sapphire Retail Limited working on introducing eco-friendly fashion? If yes, what has prompted it?

JAMES APARICIO: SAPPHIRE is currently one of the only fashion retail brands that practice sustainability in Pakistan. We have continued to develop and grow our sustainable approach across the business, from manufacturing to stores. In 2019, we introduced, little by little, our ongoing sustainability project that is dedicated to making a positive change in the way we manufacture and sell our products for a Greener Pakistan.

Our recycled cotton seed-infused bags were launched as our first step towards sustainability, soon followed by the introduction of our reusable, recycled cotton bags to replace plastic shopping bags. In 2021, we launched a nationwide drive to collect waste fabric to recreate thread and repurpose it into sustainable items. We also introduced our very first ready-to-wear sustainable line featuring kurtas manufactured from recycled cotton that was dyed using natural colouring. By recycling existing materials, we aim to limit the consumption of new unprocessed resources to manufacture clothing. Each step of the manufacturing process was energy and water efficient. These pieces took inspiration from the celebrated local crafts of our country and had the same attention to detail and style that Sapphire always offers but had a minimal environmental impact. We have continued to expand our sustainable line over time and have managed to make this an ongoing practice to curb the usage of cotton.  Our Sustainable Fashion line is a small step towards our dedication and commitment to the environment. Little by little, we strive to continuously innovate techniques and processes to pursue sustainability.

SYNERGYZER: What is Sapphire’s policy on sustainability?

JAMES APARICIO: Our parent company, the Sapphire Group, is one of the leading manufacturers of textile products from yarns to finished goods for over four decades now, primarily focused on exporting to leading brands across the globe in the fields of fashion, workwear, and home-textiles. After decades of expanding its textile footprint globally and being one the largest industrial conglomerates in the country, they have embraced sustainable practices across the organization.

We have leveraged the expertise and technology from Sapphire Textiles to implement eco-friendly production methods across SAPPHIRE Retail. Understanding the challenges of the textile industry and being realistic about our existing capabilities, we strive to innovate further and initiate processes that will limit the environmental impact. We have reduced our plastic use, launched a sustainable collection, introduced recycled carrier bags and installed solar panels in our non-mall stores. The fact that the majority of what we sell is produced in-house means that we can have better oversight of the product journey and more control over how to reduce our impact. By investing in technology, we have significantly reduced our water consumption, ensuring that the water returned back to the system is clean and being selective with the dyes we use. We are also a proud partner of the UNGC program which is the United Nations initiative to implement a more mindful way of doing business. We have a long journey ahead, but we have set the foundation.

SYNERGYZER: In your opinion, what are the three things brands should focus on with regard to promoting sustainable practices?

JAMES APARICIO: Being truthful is vital, as too many brands greenwash. If we have only half done the job, or are only going to do it once, then we cannot claim to be sustainable. Sustainable fashion is not only reflected in the product but also across the business, from manufacturing processes to retail stores. Consumers are getting smarter, and everyone has access to information; therefore, false claims can lead to a negative sentiment regarding sustainable fashion as a whole. It is essential to deliver what is being communicated. In the age of social media and digitalisation, brands have access to direct communication with their existing and potential customers. With a massive following, retailers can educate consumers about the significance of sustainable fashion choices and the long-term impact they have with influential and engaging content. Brands also need to educate consumers that while sustainable products might be pricier, they offer greater value in terms of longevity and durability.

SYNERGYZER: How do you envisage the future of fashion in Pakistan in terms of sustainability?

JAMES APARICIO: I hope that sustainability will become embedded into more businesses across different industries. With a heightened awareness and an influx of information regarding environmental change, the significance of sustainable choices will be highlighted more than ever as a moral duty rather than a marketing opportunity. Unfortunately, though, to be more sustainable means more complexities and with that comes increased costs. The authorities need to play their part with their policies to support industries and incentivise them to embrace sustainable practices.

SYNERGYZER: What role can designers or people running fashion businesses play to promote sustainability in the industry?

JAMES APARICIO: Firstly, educating themselves about it and then making more informed decisions is essential. Designers need to be mindful of what fabrics to use, every trim is necessary, and if they are familiar with the production processes, they can rethink their design strategy to ensure efficiency in fabric usage. But it shouldn’t just be about the designer. It is everyone’s role across a business to contribute to reducing the impact. Brands need to change the perception that dressing sustainability means compromising on style. With our sustainable lines, we incorporated the latest trends to produce apparel that was long-lasting, fashionable and eco-friendly. Moreover, businesses need to highlight value propositions and promote the significance of environmental conservation to the customers by being more transparent about their processes.

SYNERGYZER: Today, on average, people buy 60% more clothes compared to what they wore 15 years ago. What are the reasons for this rapid consumption? Also, who are these people, their age groups and socio-economic segments?

JAMES APARICIO: I think this is down to an increase in population, new markets opening up, the convenience of online shopping and availability of options along with a greater reach in marketing via social media and digital ads – everyone has the internet or social media at their disposal now, compared to 15 years ago.

Shein has recently been announced as the world’s favourite brand and is extremely popular with Gen Z. I find this worrying as we all used to read about how Gen Z would be the ones that would start turning their backs on fast fashion, but all they know is fast fashion and have grown up with it. However, they are not to blame as they are entitled to make economic choices. This can be avoided if brands develop products, marketing and pricing strategies, and shopping formats that resonate with their audience to influence driving sustainable purchase decisions.

SYNERGYZER: Which fabrics do you believe are the most promising for the future, in terms of mass-market fashion as a replacement for cotton, keeping in mind the fact that a cotton T-shirt uses 2,7000 litres of water and a pair of jeans needs about 7,000 litres.)

JAMES APARICIO: Amongst the initial steps in our journey towards sustainability, we have successfully planned, formulated and implemented processes to save water. We realise the water challenges our country faces; hence, water conservation is a priority. We aim to prevent our production facility to limit the wastage of water supply and responsibly treat water in the manufacturing process. Moreover, it is not just the usage of water but also the chemicals used to grow cotton. In addition to recycled cotton, there are other fibres that can be used, such as hemp, lyocell, linen and ramie –all of these require less water than cotton and are easier to grow. The main issues though are availability, cost management and consumer adaptability; difficult but definitely not impossible, and we need to take the initiative now!

SYNERGYZER: What do you do with unsold clothes or fabric waste?

JAMES APARICIO: Fortunately, we are able to manage our inventory well enough that we do not have an excess of unsold products. For fabric waste, we recycle the majority of it to be reused either in our Sustainable Collection or can be donated. We recently partnered with a charity that was working with the flood victims to produce winter blankets and will continue to take up such initiatives with our resources.

SYNERGYZER: Are there any challenges that hinder your company from implementing your sustainable policies?
JAMES APARICIO: Time, resources and expertise – these are the biggest challenges. Practicing sustainability well, so it has a long-lasting positive impact is complex but achievable. There is always room for improvement, and we will continue taking these footsteps to make it happen, little by little.

SYNERGYZER: What are your plans in terms of promoting sustainability in your company/sect for the next five years?

JAMES APARICIO: Our sustainable approach is ongoing; we will continue to roll out new initiatives across all elements of the business to create a positive change for which the foundation has already been laid. We aim to expand our Sustainable line, encompass sustainable means of production, and explore eco-friendly packaging and in-store practices. It is the beginning of a new era, and in the years to come, we hope to create more awareness about the long-term impact of sustainability and create environment-friendly fashion for the mass market.

VLEKTRA – Vrooming through the Past, into the Future

Huzaifa Gaba
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VLEKTRA – Vrooming through the Past, into the Future

Transportation is an integral part of our lives. It helps us commute daily to our destination, whether it is an office or university, shopping mall or restaurant; millions of people commute daily as part of their routine. Though people abroad cover shorter distances by foot, Pakistanis are hardly pedestrians and most of us commute via some mode of transportation, such as cars and motorbikes, or public transport, which is a problem in itself, primarily because it is inadequate and unreliable. Moreover, the infrastructure and the traffic conditions make it impossible to commute by car in most cases and reach a destination in time. As a result of this, around 70 percent of the population relies on motorbikes as their primary mode of mobility. However, high fuel costs and growing automotive prices have put even motorcycles out of reach for middle-class individuals, and it has now become imperative for people to find a viable alternative to their regular commute. While e-bikes may seem like the perfect answer, there aren’t good enough options in the market to bring about a revolution.

However, there is one e-bike company hoping to turn things around and spearhead a change. VLEKTRA, an electric bike start-up based in Karachi, focuses on producing motorcycles that are both practical and aesthetically pleasing. Their motorcycles are a welcome change in the Pakistani motorcycle market, which has been dominated by outdated motorbike designs for the past four decades.

VLEKTRA aims to bring an electric revolution in the motorcycle sector in Pakistan and to bring prestige back to motorcycles. Because for the past four decades, the BIG THREE (Honda, Suzuki and Yamaha) of the motorcycle sector are making the same old-dated motorcycles with bare minimum features and higher prices. This is the reason why motorcycles are considered an inferior means of transportation, prompting people to opt for a car instead.

The research and development for VLEKTRA started back in 2020 at a garage in Karachi by Syed Raza Mohsin, Fatiq Bin Khursheed, Jawaid Iqbal, and Ahmed Murtaza Memon. They started researching electric bikes from across the globe to come up with a ground-breaking product that could fill the massive gap in the Pakistan motorcycle industry.

They had two major goals; first, to make Lithium-ion battery-based motorcycles, and second, to make stylish-looking motorcycles equipped with the latest features, unlike the ‘corrupted version’ of electric motorcycles available in the local market, especially the CD-70 motorcycles with a lead-acid battery. The drawback of those electric motorcycles is that their lead acid batteries last only 6 to 12 months, and their performance keeps declining with time.

When asked about the inspiration behind VLEKTRA, one of the co-founders, Syed Raza, states, “Motorcycles as a product have lost their Prestige in Pakistan. People look down upon motorcycle riders. Even the ones who own it don’t feel pride in buying the products available in the market. So, we started with an aim to make not only an EV motorcycle but a state-of-the-art product.”

The team researched, studied, and conducted public surveys for a year and then launched their first model, ‘BOLT’, in December 2021, and the first batch was sold out within two months. They then launched two other models named ‘RETRO 1969’ and ‘RETRO.’ Each model is one-of-a-kind due to its own set of features. These models have various high-tech features befitting an e-bike, giving users an improved traveling experience. They all feature a dual disc-braking system on the front and rear wheels, CBS (command braking system), digital meters, LED lights, and reverse mode.

VLEKTRA BOLT is a motorcycle for those who desire a modern and sporty-looking motorcycle. This is a work of art in terms of both design and functionality. It is available in two stylish, vibrant colours: a yellow and black combination called ‘Bumblebee’, and a darker shade called ‘Silver Fox’, which is black with silver accents. It is equipped with a 2000W hub motor that is run by a lithium-ion battery that has a lifespan of between 60,000 and 100,000 kilometres. This bike’s average range is about 80 km in full charge at a top speed of 75 kph; however, it has two modes, ‘eco mode’ and ‘sports mode.’ While the sports mode enables you to go as fast as you like, the eco mode is ideal for the crowded streets of Karachi, increasing your range to 100 kilometres at the expense of a maximum speed of 35 to 40 kilometres per hour. The price of this model is Rs 449,000.

Unlike BOLT, the other two variants are ‘vintage cafĂ© racer’ styled motorcycles – the reason why they are called ‘RETRO.’ These motorcycles are where the past meets the future, with elegant vintage designs. They boast all the modern features just like BOLT. VLEKTRA Retro 1969 can be called a vintage version of BOLT, as they have the same features and price; the only difference is the look, whereas ‘RETRO’ is a toned-down version priced at Rs 299,000, featuring a 1500W hub motor, and its top speed is 65 kph, other features and range are the same as its other counterparts.

These bikes come with a smart charger, which eliminates the risk of overcharging, as well as protects the product from fluctuations. Its charger is compatible with any three-point power outlet, making it convenient to charge, whether at home, the office or anywhere. It takes about 4 hours to fully charge the motorcycle; that’s the only thing it requires to function; there is no need for tuning or oil change, unlike conventional motorcycles. They are basically maintenance-free.

The price point suggests that SEC A is VLEKTRA’s intended market, but the company’s founders disagree. “Our bikes are pricey up front, but they will save you both time and money in the long term,” Raza says. ” The money you’ll save on gas is your return on investment, and it requires no maintenance.” He claims that one charge of VLEKTRA is about 2KW, which means the full charge will cost around Rs 100, and its range is 80-100 km on the full charge, whereas conventional motorcycles range around 40-60 km per liter. Moreover, VLEKTRA’s features much outshine those of any competing motorcycle in its price range.

This is the reason why the founders claim VLEKTRA is getting popular across all segments of society, unlike EV cars, which are limited to only privileged people. However, they add that it will take time to break the monopoly of the ‘Big Three’ in the motorcycle sector. Talking about competition, Raza says, “we don’t think conventional bikes are our competitors because we are making a different product. One can’t compare Tesla to any conventional car. The biggest challenge for us is to educate the public about how our product is different and better than conventional motorcycles.”

VLEKTRA is the first lithium-ion-based motorcycle manufacturer, which is completely made in Pakistan, except for the battery and motor, which are imported to meet global standards. It is reasonable to state that VLEKTRA does not now have any direct competitors because of the fact that they paved the way for some new players to enter the market, but those new players are still a long way behind in terms of quality, style, and features.

In the near future, they plan to release a top-of-the-line model that can accelerate from zero to one hundred kilometres per hour in under three seconds. In addition, they are focusing on developing a product specifically for women, with the goal of providing them with an improved mode of transportation that does not require them to spend half of their salaries on private transport.

Pakistan currently imports petrol a number of billions of dollars annually; if the country were to adopt EVs, this cost might be reduced significantly. But awareness is the major challenge for any new technology; it takes time for people to understand and adapt to new technology. EVs are not new, but just like every other technology, they arrived in Pakistan late, and it may take time for people to adapt. Raza counters that the “Pakistani populace is quick to adapt to any new technology,” citing the widespread adoption of solar panels across the country as proof that “our people are educated enough to learn and adapt.”

This product not only offers a solution to the transportation issue, but it also marks a positive step in the direction of achieving a more sustainable future. Unfortunately, Pakistan is one of the countries with the worst levels of pollution in the world, and the megacities of Karachi and Lahore are among the cities with the worst levels of air quality. We breathe poison on a daily basis, which is the reason that about 1.5 lac people die from lung disease every year in Pakistan. They are the third largest cause of death in Pakistan. The rest of the world has realized and rapidly adapted to the need to move away from vehicles that emit poisonous gases, but we are still living in the past. This is our existential predicament; we have to fix our ecosystem in order to preserve the generations that will come after us. Raza claimed that in order to save the country, we must transition toward the use of renewable energy.

Moreover, this year, import bans have become a problem for virtually every industry. The battery is the most important part of any electric vehicle, and regrettably, Pakistan’s domestic production of batteries is not up to par with international standards. Electric vehicles can usher in an eco-friendly revolution in Pakistan, but only if the government treats them with the same seriousness as it does solar. Recently, India has provided a subsidy equal to one-third of the price of electric motorcycles; our government needs to do something comparable to this.

When it comes to marketing, the sole tool that VLEKTRA is using at the moment is social media, which is also the most effective marketing strategy at the moment. In addition to that, they provide BTL activities that provide people with the opportunity to test rides and evaluate the product. They have also conducted awareness campaigns to educate people, particularly young people, on the importance of taking sustainability seriously and making the transition to EVs in order to save the environment.

Their major goal is to make the environment clean and make a motorcycle a prestigious means of transportation, like a lifestyle in western countries without any sense of inferiority. Even though they are based only in Karachi at the moment, they have customers who come from other cities in Pakistan. As a result, they are considering expanding their business throughout the country.

Furthermore, they are persistent in their efforts to enhance the quality of their product and increase its global competitiveness through consistent research and customer feedback. Raza expressed his desire, ‘We want to make a state-of-the-art product, which Pakistan will be proud of. Our vision is to have a VLEKTRA in every other house’.

94% of USF Network will be Solar-powered by the End of this Fiscal Year

Anusha Zahid
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94% of USF Network will be Solar-powered by the End of this Fiscal Year

SYNERGYZER: What is Universal Service Fund (USF), and how is it empowering marginalized communities?

HARRIS M. CHAUDHRY: Universal Service Fund (USF) was established in 2006 by the Ministry of Information Technology (IT) and Telecommunication to ensure the provision of Information and Communication Technologies (ICT) services in un-served and under-served areas across Pakistan by making broadband available and affordable for all. USF is a public-private partnership (PPP) with a Board of Directors comprising representatives from both the private and public sectors. The fund solely consists of the contributions (1.5% AGR) made by the telecom operators. USF offers financial assistance to telecom operators to provide ICT services in areas deemed to be commercially unviable to address access gaps and possible market failures in far-flung and isolated locations.

By shortening distances, we are not only enabling the rural communities to communicate, work and learn but also deal with public administrations, manage payments and finances, and facilitate access to digital healthcare systems, thus improving their lives and livelihoods. We have digitally enabled and empowered approximately 33.3 million people living in over 18,000 mauzas across the country. Moreover, we have laid approximately 12,400 km of optical fiber and provided seamless connectivity to 1,900 km of un-served road segments on the National Highways and Motorways of Pakistan.

SYENRGYZER: Since its inception in 2006, what has been USF’s major achievements so far?

HARRIS M. CHAUDHRY: Over the years, USF has made significant progress and has achieved various milestones. However, it is pertinent to highlight our phenomenal growth in the last three years. In the initial years from FY2006-19, USF completed a total of 76 projects and provided connectivity to about 11 million people with subsidy disbursement of Rs57 billion, whereas, from 2019 to date, USF has contracted 85 projects and provided connectivity to 22 million people with subsidy disbursement of Rs83.55 billion. I feel proud to tell you that 8% of the total telecom network in our country is powered by USF and by the end of the fiscal year, around 45% of Balochistan’s infrastructure will be deployed by USF.

SYNERGYZER: Has there been any particular province in focus?

HARRIS M. CHAUDHRY: We are focused on providing high-speed mobile broadband access in Punjab, Sindh, Balochistan and Khyber Pakhtunkhwa (KPK) provinces. Our Federal Minister for IT and Telecom, Syed Amin Ul Haque and our Board of Directors ensure that all provinces are treated fairly; no specific province is given priority.

SYNERGYZER: What are some of the reasons why these marginalized communities are not covered by local telecom providers?

HARRIS M. CHAUDHRY: Well, the cost of broadband deployment and maintenance is typically expensive in such areas due to sparse population density and difficult terrains. Therefore, the rural and remote areas are often not considered viable business cases by the operators as they are unlikely to earn enough revenue to cover their costs.

SYNEGYZER: What kind of services does USF provide to these underserved, un-served communities?

HARRIS M. CHAUDHRY: USF provides voice, high-speed mobile broadband data and optical fiber services to these communities under its flagship programs. Our Next Generation – Broadband for Sustainable Development program focus on the provision of high-speed mobile broadband connectivity to the un-served and under-served areas of Pakistan, the National Highways and Motorways of Pakistan and the Tourist Destinations of Pakistan. Some of the tourist locations include Babusar Top, Lake Saif-ul-Malook and Sharan Forest in Manshera district, Kumrat Valley in Upper Dir district, Mahodand Lake in Swat district and Galiyaat.
Apart from setting up BTS Towers, we are also successfully laying optical fiber in Unions Councils of Pakistan under our Next Generation – Optical Fiber Network & Services program, which is one of a kind as we are connecting 25% of the nearby telecom towers with optical fiber, thus paving the way for 5G wireless technology.

SYNERGYZER: What is USF’s policy on sustainability? Has it had a formal sustainability programme?

HARRIS M. CHAUDHRY: At USF, we recognize the critical role that renewable energy plays in sustainability planning not only to preserve the planet’s natural resources but also to protect our core values as they relate to diversity, growth and innovation. I believe climate change is one area where we all, as individuals and as organizations, can contribute positively towards alleviating the threats we face. It is precisely with this mindset that we took the lead in promoting the use of clean and renewable energy sources. Our projects are energy efficient as we continue to set up self-sustainable mobile networks with higher efficiency through solar-powered telecom towers as well as optical fiber nodes. These solar-powered cell towers and optical fiber nodes contribute significantly towards eliminating gas emissions in comparison to the smoke generating diesel gensets and provide mobile operators substantial benefits from the net-metering opportunities being presented by current utility providers.

 

SYNERGYZER: As mobile data continues to grow, and more 4G/5G networks will be deployed, how are telecoms planning to curb their impact on carbon emissions?

HARRIS M. CHAUDHRY: To help the industry move towards a more sustainable future, the GSMA has developed a ‘Sustainability Assessment Framework’ and ‘The ESG Metric for Mobile’ that guides operators to reduce their emissions by at least 45% between 2020 and 2030 and has set key performance indicators (KPIs) and Environmental, Social, and Governance ESG standards for companies to integrate into their broader corporate strategies and measure progress against it. Telcos have a historic opportunity to help other industries become more energy efficient. Smart products and solutions from telcos—e.g., smart agriculture and smart logistics—are already available that can help other industries reduce their carbon emissions by an amount up to 10 times the telco industry’s own emissions.

SYNERGYZER: What measures has the telecom industry taken over the last few years to reduce its carbon footprint?

HARRIS M. CHAUDHRY: Presently, there is no regulatory framework put in place for the telecom industry with regard to reducing their carbon footprint. All the telcos are working in silos; the industry has yet to come together to achieve this shared vision.

SYNERGYZER: In your opinion, what are some of the key targets a telecom company should focus on to promote sustainable practices?

HARRIS M. CHAUDHRY: Telcos can promote sustainable practices by developing a net-zero emissions plan, by investing in energy-efficient technology not just for their networks but also for lighting, monitoring, and cooling their systems and by deploying hybrid solutions at cell sites to reduce its greenhouse gas (GHG) emissions.

SYNERGYZER: What are some of the challenges the telecom industry faces to implement sustainable practices?

HARRIS M. CHAUDHRY: Pakistan’s telecom industry is facing serious challenges due to an unprecedented increase in operating costs of fuel, electricity, interest rate, tax and currency’s devaluation. For the telcos to fully focus on sustainability, I believe a policy intervention is required first to facilitate the industry in order to create an enabling environment.

SYNERGYZER: How do you foresee the future of telecom in Pakistan with regard to sustainability?

HARRIS M. CHAUDHRY: While the operators’ efforts to address energy consumption are front and center of their plans, there is no doubt they can play a much more integral role in helping the country achieve its sustainability goals. Moreover, supportive regulatory and policy environments to de-risk and attract investments in renewable energy are paramount.
For USF, with respect to the current deployment of sites, 94% of the USF network will be solar-powered by the end of this fiscal year. As we continue to enable and empower rural communities with digital inclusivity, we are sending out a symbolic message about the importance of global and concerted action for the promotion of sustainable energy development and the fight against climate change while contributing to the Sustainable Development Goal 7 (SDG7) – Affordable and Clean Energy and Pakistan’s Clean Green initiative.

SYNERGYZER: How educated and engaged are your employees toward sustainability?

HARRIS M. CHAUDHRY: As I mentioned earlier, sustainability is part of our core values; therefore, achieving the United Nations (UN) 2030 Agenda for SDG is deeply embedded in our business. From time to time, we run sustainability awareness campaigns to help the employees understand how sustainability works and what the benefits are in creating a corporate culture that focuses on energy efficiency and sustainability.

Our efforts are increasing Pakistan’s economic well-being and competitiveness as we contribute to the realization of SDG 9 – industry, innovation and infrastructure; SDG 5 – gender equality; SDG 7 – affordable and clean energy; SDG 10 – reduced inequalities; SDG 13 – Climate Action and SDG 17 – Partnership for the Goals.

SYNERGYZER: What are USF’s short and long-term targets for the future?

HARRIS M. CHAUDHRY: Our commitment to the future will be no different, and we plan to move ahead with the same speed and spirit without strategic goals of meaningful connectivity and sustainable digital transformation. This year, we are committed to empowering approximately 15 million people by launching 28 projects with a subsidy commitment of about Rs32 billion, which includes all high-speed mobile broadband and optical fiber projects.

We are aware of the challenges of fast-tracking the digital ecosystem for remote communities; however, at the heart of our resolve is our unwavering determination to see these marginal communities and stand shoulder-to-shoulder with the rest of the world.

Qubed Nathiagali – From Scrap to Suave

Hamna Farrukh
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Qubed Nathiagali – From Scrap to Suave

The notions of sustainability and eco-tourism are still foreign concepts in Pakistan. Most of the locals are oblivious to the magnitude of their environmental influence due to their seemingly harmful habits, which they deem insignificant. Pakistan is blessed with abundant natural wonders, yet our people often fail to appreciate these gifts and instead take the natural world around them for granted.

However, to give credit where it’s due, we have seen an interest in environmental consciousness from the government’s side over the past few years, which has also sparked conversations among the general public, starting with the Billion Tree Tsunami initiative, which was widely appreciated worldwide. The country started seeing foreigners coming to Pakistan, and tourism began booming until came the dreaded pandemic, which wreaked havoc all over the world, and restricted travel. Compared to 2019, Pakistan saw a 22.88% decline in 2020, according to the statistics from Macrotrends (a company based out of Washington, USA).

In 2019, Pakistan tourism statistics saw a 17.4% increase from 2018, which was 990 million but in 2020, it dropped to 765 million due to COVID. During the peak travelling season, we witness heaps of trash discarded at tourist attractions. No river, mountain, or valley is safe from the wrath of our people disposing of their garbage, and this is one of the many aspects of ignorance towards the environment. It’s not just about mishandling our surroundings; we are not too savvy with sustainability either. We are clueless about how our carbon footprint is slowly degrading this world, and the sad part is that we don’t put any effort into making the required changes.

When everyone, including the responsible organizations of this country, is turning a blind eye towards sustainable practices because of other pressing issues, one company named DAO PropTech – a marketplace that aims to enable Pakistanis to start their journey towards property ownership digitally – has launched a project this year that focuses on sustainable and environmentally responsible tourism named QUBED. The state-of-the-art, sustainably crafted cubed-shaped resort is located within the mountains of Nathiagali, Khyber Pakhtunkhwa. The unique resort is built using shipping containers rather than relying on
traditional concrete structures with a high carbon footprint.

Talking about the venture, Abdullah Khan, Chief Product Officer of DAO, says QUBED is a separate hospitality company that aims to be the leader in sustainable tourism in Pakistan, and DAO is facilitating all the financial investment needed for the first project. “QUBED listed itself on DAO so that people who wanted to invest in the shipping containers could do so. The project is now completed, and the QUBED management is running these containers as a hospitality company.” As to what prompted the project, Khan says, in Pakistan, though we have started hearing conversations about the degradation of natural resources, protection of the environment and the adverse effects of climate change in recent years; there are only a small number of people who are bringing sustainable tourism into the discussion.

He says this is because in Pakistan, a normal citizen has a variety of problems, and climate change really does not cut the priority list. “DAO PropTech and QUBED wanted to bring this conversation to the forefront because QUBED was not built with the sole purpose of being different; the company wanted this resort to be a guiding light for the people coming there to stay. “So, our aim was not to build something picture perfect but also to raise awareness among our guests on how important it is to protect the environment,” he adds.

And in this case, Nathiagali proved extremely beneficial as it is the go-to location for people coming from Lahore and Islamabad and also due to the fact that the provincial government of KP has been very progressive. “They have very much liberalized tourism,” he remarks.

For Khan, the concept of QUBED was ambitious – an aspirational idea – more of a passion project than a business. “It was a lot of ambition with the right ingredients, and then DAO got excited because the people who invested in making it a reality were moved by the idea that it was not just a hotel project but also a way to show their commitment towards Pakistan and the need for 21st-century tourism in the country.

The shipping containers QUBED used to build this hotel were discarded near Rawalpindi once offloaded (since it is costlier to send them to Karachi and then back to China. Hence, they are discarded and scrapped). QUBED recycled these containers and turned them into modern and sustainable living spaces. For the project, the management has also imported an innovative product for water recycling called ‘Hydraloop’ from the Netherlands. The treatment tanks that look like refrigerators can recycle up to 40% of the water used at the facility. This, Khan says, will enable them to give their guests ‘guilt-free showers’ during their stay.

Moreover, the team wanted the resort to be modern and digitally run. Hence, they heavily implemented IoT. The eco-friendly resort also gives you a digitally-connected experience where check-ins, check-outs, room service, and temperature is controlled via smartphones. Through this, the company wants to educate their guests about their water and electricity consumption during their stay, along with the carbon footprint they have generated.

Despite the fact that it was a brilliant idea, the team did face tons of problems when it came to getting authorization from the regulatory authorities – from explaining the idea of reusing the containers to getting approval for metal structures, onboarding stakeholders, convincing them, and getting the building plan approved – nothing was easy. “We never thought it would be as difficult as it turned out to be. But there is a natural cost for innovation, so you have to focus on fundamentals. Make sure your value system is driving those fundamentals because there are many grey areas when trying to do a project like this,” says Khan.

The target market of QUBED is SEC A and B, but the company plans on adding more convenience in the future and making it more price-competitive. With all the amenities they provide, the rates are comparable to those of other hotels in the Nathiagali area, they claim. “We envisioned to minimize the environmental impact and to enhance the novelty of the say. Moreover, we enhanced our guests’ experience through IoT-based features and round-the-clock services by our highly-trained staff. We firmly believe in providing the best service possible to the guests as they will be our marketers.

We are already experiencing repeat customers and are confident that we will become the go-to place in the future.” Khan admits that not much has been spent on marketing QUBED, and word-of-mouth has so far been the most effective means of marketing. However, they did spend a little on social media campaigns, and once they were successful, the traction was better than what they anticipated. “We’ve now built traction to the point where we have to turn down some big names on social media who wanted to join us for a weekend’s stay due to excessive bookings,” he adds.

Talking about the future, Khan says QUBED, as well as DAO PropTech, have great plans. They want a QUBED built at a distance of every 6-8 hours on the typical travel route to northern areas. Moreover, there will also be a pick-and-drop service using electric vehicles for people who book QUBED because the company wants to eliminate the emissions that families leave by travelling via cars. “We are already exploring a few potential places to open our next establishment. As for whether they will establish QUBED in the south, especially in places like Gwadar or Gaddap. Khan says they base all their decisions on data and research; hence if Gaddap and Gwadar offer the right kind of guest base, they will definitely consider them.

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