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2nd Pakistan Mega Leather Fair concluds successfully

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LNG import – a right step to resolve energy crises

Green Bus project: vital for Karachi

Qatargas signs long-term agreement with Pakistan State Oil

Government actions to avoid CPEC becoming next Kalabagh


PSX formally launched

Special Report on PMLS 2016

Khurram Dastagir Khan announces formation of

Leather Concil for Pakistan Leather Industry

Chairman PTA Gulzar Firoz reviews and proposes remidal measures

for increase in leather export

PFMA Chairman Wasim Zakaria demands restoration of 6% R&D

A review of successful conclusion of 2nd Pakistan Mega Leather


PSO announces upswing in profitability for 1HFY16

Engro Polymer gross profit jumps to Rs.2.77bn in 2015

Commissioner Karachi & President KCCI emphasized on social


Noregian envoy sees great trade potential in Pakistan

Captain Haleem Ahmad Siddiqui wins the Lifetime Achievement





People & Events

Port & Shipping News

Telecommunication News

Cement Industry

Banking & Insurance News

Aviation & Hotel News


We begin with the name of Allah, the Magnificient




2nd Pakistan Mega Leather Show concluds successfully

Pakistan leather industry has achieved another milestone, when

it announced successful conclusion of the 2nd Pakistan Mega

Leather Show, organized by Pakistan Tanners Association and

Pakistan Footwear Manufacturers Association (PFMA) along with

other leather industry stakeholders, at Lahore in late January

2016. Post review report, released by PTA, says that more

than 450 exhibitors participated in fair (an increase of 50%

over last year). Besides, a large number of foreign sellers/

buyers/customers, which includes firms from China, India, Italy,

Turkey, Spain, Poland, Thailand, Germany, Russia, UK, South

Korea and Taiwan, South Africa, Brazil, France, Finland and

New Zealand and local companies have participated. We hope

orders worth million of dollars would have been materialized.

The fair was inaugurated by Federal Commerce Minister, Engr.,

Khurram Dastgir Khan and also attended by Mr. Jean Francois

Cautain, Honourble Ambassador of the European Union to

Pakistan, Mr. S.M. Muneer, CEO/TDAP, Mr. M. Rauf Alam,

President of FPCCI and others.

On this occasion, the Federal Commerce Minister Engr.,

Khurram Dastgir Khan has announced the formation of “Leather

Export Promotion Council – LEPC” in Pakistan, which would

be real autonomous platform for addressing & resolving Leather

Sector issues promptly. He assured resolving of Pakistan leather

Industry problems and provision for some incentives through

new trade policy, which would be announced soon.

Gulzar Firoz, Chairman, PTA and Wasim Zakaria, Chairman,

PFMA in their welcome addresses, have pointed out number of

irritants, which in their opinion were hindering the exports of

leather and its products.


They suggested Government to take necessary steps to arrest

declining trend in leather exports by giving some incentives

which are imperative in view of tough competition with

neighbouring countries. PTA requested incentive of 4% on FOB

value on enhanced value of export of finished leather, Export

Refinance Rate of 3%, abolishment of 3% import duty on raw

materials, upward revision of duty drawback rebates and reduce

rate of energy tariff for export industry. Also, grants for setting

up Effluent Treatment Plants (ETPs) and setting of Labs in the


PFMA requested the Govt. more or less the same incentives as

demanded by PTA, in addition to 6% R&D support to the

footwear sector, expeditious processing and payment of

exporter’s refunds of sales & income taxes and uninterrupted

power supply to the sector to ensure smooth productions.

Trade Chronicle - January - February 2016 - Page # 04


We hope government would

look into their problems,

keeping in view the leather

exports, which are stagnant for

the last five years in Pakistan,

whereas export from the

regional competitors’

countries, have tremendously


Separately, Chairman,

Pakistan Leather Garments

Manufacturers & Exporters

Association (PLGMEA), has

urged upon the government to

intervene and resolve issues

and provide relief to the

leather garments industry to

boost leather garments


Furthermore, the PTA has set

date for 3rd Pakistan Mega

Leather Show (27th - 29th Jan.

2017) which itself tells the

success of fair. However, we

suggest that the organizers

should start its publicity at

international level at the

earliest, so that, foreign buyers

could chalk out their plan

accordingly, consider better

facilities such as arrangements

for B2B meetings, media room

for local and foreign

journalists, visits to industry

leading leather manufacturing

facilities and historical site

tour for foreign buyers in


The organizer may take step in

next year to publish special

report on first and last day of

fair as in practice in international

fairs, all over the world. There is

also a need to emphasis the

importance of participation in

seminar and technical

presentations, being held on the

sidelines of fair, as leather

industry people present therein,

were noticed thin in earlier fairs.



LNG import – a

raight step to resolve

energy crises

Pakistan Government announced

that it has signed

US$16bn LNG deal with Qatar,

to import 3.75 million tons of

LNG to meet its energy requirements.

The shipment will start

from March this year and contract

is valid for 15 years. A

Govt, announcement claims

that the deal is cheaper than

Pak Iran Gas Pipe Line and

Turkmenistan Gas Pipe Line

projects, i.e. $ 5.35 mmbtu,

whereas, Iran Pipe Line $ 5.70

mmbtu and Turkmenistan $

5.90 mmbtu.

Petroleum Minister, Shahid

Khaqan Abbasi, who signed the

agreement, says that imported

LNG would meet around 20% of

country's energy requirements

and can revive the closed power

and urea plants. Apart from benefits

for the power sector, petroleum

minister has explicitly

mentioned that LNG will put an

end to costly urea imports and

revive urea plants, which remain

shut due to shortage of


We hope that the import of LNG

will provide a sigh of relief for

urea plants in particularly and

industry in general.

Abdul Rauf Alam, President,

FPCCI has righty appreciated

the historic agreement of LNG

supplying from Qatar and said

that this agreement will be a

milestone in resolving the energy

crises and shows keen interest

of our Prime Minister to

remove the energy crises in

next 2 years.

In Pakistan natural gas production

has been stagnant at 4,000

Million Cubic Feet per Day

(MMCFD) against burgeoning

demands for gas for last couple

of years due to insufficient finding

of new gas reserves and depleting

of old gas fields. Therefore,

under the agreement, the

LNG imports from Qatar which

will fulfill estimated twenty

percent needs of Pakistan and

ensures uninterrupted supply

of Natural Gas to the Industrial

consumers, which will have

favourable affects on the industrial

production, investment

and employment in the country

and will ultimately be transferred

into the higher rate of

GDP growth.

We hope government would

also remove doubts as reported

in media, about the transparency

of LNG deal. The government

should also take necessary

step regarding laying of

pipe line for transporting LNG

from port to upcountry, if it is

not transferred through local

gas utility system.

It is a good sign that government

has also allowed private

sector to import LNG, this will

definitely create healthy competition

in country and resolve

energy crisis as well.

Green Bus project:

vital for Karachi

The Prime Minister of Pakistan

Nawaz Sharif inaugurated the

Green Line Bus Rapid Transit

System (BRT) at Anu Bhai Park

in Karachi recently. It shows

that his government is keen to

resolve chronic mass transport

problems in Karachi.

The city is totally at the mercy

of private transporters who doe

Trade Chronicle - January - February 2016 - Page # 05


not want to modernize their bus

and van fleet to eas the life of

Karachiites for travelling.

The minibuses, no doubt,

served the people, but this not

the substitute of a modern mass

transit system for a city whose

population is rapidly increasing.

The government planned two

bus projects, the green and blue.

The green project starts from

Karachi’s Surjani Town area all

the way till Guru Mandir. This

project is extremely necessary

for improving the transport system

in Karachi and should be

completed as planned. Besides,

bus projects, we hope government

particularly Sindh, would

also revive the Karachi Circular

Railway as Japanese and

Chinese companies are keen to

revive it by money and technology,

provided the authorities

remove the encroachment on

the track side.

The Japanese companies want

to invest in Pakistan for building

Karachi Circular Railway,

which is expected to redress the

sufferings of millions of commuters

in the metropolitan city,

which has a huge demand for

urban transport. However, encroachments

by land mafia

along the project routes are considered

a major hurdle to the

revival of the project. Now, the

Ministry of Railways has reportedly

allocated 250 acres of land

to shift all encroachments and

relocate the displaced people. It

should be done at the earliest

to meet the demands of foreign


Karachi has seven industrial

zones which are playing an important

role in powering the

national economy needs a mass

transport proejct. The mass

transport project either Circular

Railway or Bus projects, will

provide new job opportunities

in the city and improve standard

of living of people in




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Trade Chronicle - January - February 2016 - Page # 06


Qatargas signs long-term agreement with Pakistan State Oil

Company to supply 3.75 million tonnes of LNG per annum

Pakistan and Qatar signed a long

term liquefied natural gas (LNG)

supply agreement in Doha recently

as a part of Prime Minister's two days

visit to the Middle Eastern Country.

The agreement was jointly signed by

Federal Minister for Petroleum and

Natural Resources Shahid Khaqan

Abbasiand and Chairman of Qatar

Gas Board of Directors Saad Sherida

Al-Kaabi at a ceremony in Diwane-Emiri

in Doha, according to which

the kingdom will provide a billion

dollars’ worth of LNG to Pakistan


Earlier, Liquefied Gas Company

Limited (“Qatargas ”) signed a longterm

agreement to supply Pakistan

State Oil Company Limited (PSO)

with Liquefied Natural Gas (LNG),

according to a press release of


The Sales and Purchase Agreement

(SPA) was signed by Mr. Saad

Sherida Al-Kaabi, Qatar Petroleum

President & CEO, and Chairman of

Qatargas Board of Directors, and

Mr. Sheikh Imran ul Haque,

Managing Director & Chief

Executive Officer of PSO.

Under the terms of the agreement,

Qatargas 2 will supply 3.75 million

tonnes per annum (MTPA) of LNG

to PSO for a period of 15 years with

the first cargo expected to be

delivered in March 2016.

Mr. Saad Sherida Al-Kaabi,

Chairman of Qatargas Board of

Directors described the agreement as

“a very important milestone in

Pakistan Prime Minister Muhammad Nawaz Sharif being received at airport

Qatar’s standing as a reliable energy

supplier as it marks the first direct

long term agreement between the

two companies.”

Mr. Al-Kaabi said: “The State of

Qatar Under the leadership and

guidance of His Highness Sheikh

Tamim Bin Hamad Al-Thani the Emir

of the State of Qatar is constantly

looking to expand and enhance its

LNG market share while at the same

time helping countries around the

world meet their growing energy

needs. I’m very proud to welcome

Pakistan to our customer portfolio,

and would like to thank His

Excellency Mr. Shahid Khaqan

Abbasi, Pakistan’s Minister of

Petroleum and Natural Resources,

who along with the leadership in

Pakistan, have been instrumental in

achieving this important milestone.”

“I would like to take this opportunity

to register my sincere appreciation to

Sheikh Khalid Bin Khalifa Al-Thani,

Chief Executive Officer of Qatargas,

and his team for their excellent work

to finalize this important agreement,”

Mr. Al-Kaabi added.

On his part, Sheikh Khalid Bin

Khalifa Al-Thani, Chief Executive

Officer of Qatargas Operating

Company Limited, said:

“Emanating from our vision to

establish new markets with a new

portfolio of customers, the signing of

this agreement represents a

momentous occasion for Qatargas as

we continue to play a key role as a

world leader in the supply of clean,

reliable energy to global markets.

After delivering the commissioning

cargo in April last year, we are

delighted that our discussions with

PSO regarding a long term agreement

have come to fruition. Taking this

opportunity, we thank the team at

PSO for their hard work and we look

forward to a strong and enduring

partnership with PSO and Pakistan.”

In April 2015, Qatargas delivered the

first commissioning cargo to PSO

onboard the LNG vessel, Excelerate

Exquisite, the Floating Storage and

Regasification Unit (FSRU), moored

at Port Qassim as part of the Elengy

LNG terminal, Pakistan’s first LNG

import terminal.

Trade Chronicle - January - February 2016 - Page # 07


Speakers at the meeting of Shura

Hamdard Karachi chapter urged the

government to take actions to avoid

CPEC to become next Kalabagh dam.

The meeting was held on Thursday

January 14, 2016 on the theme: “China

Pakistan Economic Corridor and its

economic and social effects”, presided

over by Justice (Rtd) Haziqul Khairi at

a local hall.

Speaking on the occasion, Mrs. Sadia

Rashid, President, Hamdard Foundation

Pakistan said, it was Shaheed Hakim

Mohammed Said, founder, Hamdard

Pakistan, who first of all on a political

level had foreseen the potential and great

worth of Republic of China to be the

new global economic power in near

future as he led a medical delegation to

China in November 1963, established

relations on public level between peoples

of China and Pakistan and wrote a

voluminous book: ‘Medicine in China’

after coming back from China; during

his tour he met with Chinese social and

political leaders, including Marshel Chun

Ei. Hakim Sahib was a great advocate

of Pak – China friendship and always

emphasized on establishing the closest

relationship between the two countries,

she added.

Justice (Rtd) Haziqul Khairi said that all

political parties and their leaders were

agreed on CPEC, what happened now

that some of them were raising

dissenting voices, if there were some

reservations that should be resolved

amicably through mutual talks.

Former Senator Abdul Haseeb Khan

said that the economic corridor would

be a game changer for Pakistan and it

should be made at any cost. Dr. Shahid

Government actions to avoid CPEC becoming

Next Kalabagh stressed

Hasan Siddiqui, an economist said that

the strategic position of Pakistan made

China to take interest in the construction

of CPEC, because China would get

tremendous facilities in exporting its

goods as its exports were reaching up to

$ 4 trillions. But this corridor would not

be a game changer for Pakistan unless

China’s big investment of $ 35 billion,

reserved for energy sector only, would

also be given to other sectors of

Pakistan’s economy, he added.

‘People don’t give taxes, it is also

terrorism and as fatal for the country and

the nation as the gun terrorism’, he

maintained. Prof. Dr. Akhtar Saeed

Siddiqui said that there was no dispute

on CPEC but on its routes which was a

result of government attitude of keeping

many things in secret. Government

should take all stakeholders in confidence

to make consensus on CPEC, he added.

M. Abul Fazal, a former diplomat said

that the welcoming sign of CPEC was

that China would not exploit us as it had

never adopted a policy of exploitation.

Chinese had developed their heavy

industries by their own indigenous

resources and skills and they would

support us if we would ask them to help

in establishing heavy industries, he said,

adding that the nexus of USA and India

Trade Chronicle - January - February 2016 - Page # 08

had compelled China to come closure to

Pakistan. Commodore (Rtd) Sadeed

Anwar Malik said that China would take

the big advantage out of the deal of

CPEC as more than half of the distance

and expenditure of its transportation

would be reduced by exporting its goods

from Gawadar port instead of Shanghai

port. All matter including industrial zones

and power plants to be set up under

CPEC be made transparent, he stressed.

Naushaba Khalil said that ultimately

China would be the more beneficiary than

Pakistan in CPEC as its cost of

production was much lesser than our.

Chinese goods have already occupied

our markets, resulting in closer of our

industries, which was alarming for the


Col (Rtd) Mukhtar Ahmed Butt said that

the CPEC would definitely provide

benefits to China as Pakistan was the

only way for China to reach at Arabian

Sea and Middle East. $ 46 billion was a

huge investment but it was being

sacrificed on the altercation of our bad

politics. Government should bring this

matter before parliament and public and

remove the reservations of small

provinces, he observed.

Anwar Aziz Jakartawalla was of the

view that without local funding the project

of CPEC would not be successful. Dr.


PSX formally launched:

Dar anticipates increased

foreign investment

Inaugurating a unified or integrated

stock exchange of the country -

Pakistan Stock Exchange (PSX) -

recently, Finance Minister Ishaq Dar

said that the PSX would play a major

role towards country''s economic

development and consolidating its

gains. He was addressing the launch

ceremony of the PSX, which has been

formed by merging Karachi Stock

Exchange (KSE), Lahore Stock

Exchange (LSE) and Islamabad Stock

Exchange (ISE) into one national

stock exchange.

Earlier, he rang the Gong to launch

the trading activity on the PSX. On

the occasion, the messages of Mattias

Martinsson, CIO/Partner, Tundra

Fonder AB (representative of

Scandinavian commission) and the

US Commodity Exchange were

read. Tuncay DINÇ, Chief Executive

Officer, Borsa Istanbul A.S., highly

appreciated the creation of the PSX.

Ishaq Dar termed the day a historic

one saying that it took 15 years to

make this dream come true. He said

the formation of single national stock

exchange would send a positive

message abroad and would attract

more foreign investors to the

country's capital market. He said the

government was determined to

facilitate the law-making process in

the capital market and most of the

work has been done successfully

while work on Bills including

Securities and Exchange Commission

of Pakistan (SECP) Bill, 2015, the

Competition Restructuring Bill 2015

was in process and they would also

be passed soon.

He told the audience that the

Finance Minister Senator Mohammad Ishaq Dar rings the gong to mark opening

of Pakistan Stock Exchange at the ceremony organised by SECP in Islamabad

on January 11, 2016.

country''s foreign reserves have

increased from $11.5 billion to $20

billion due to prudent economic

policies of the government. Dar said

the PML- N government has

achieved economic stability of the

country and now is focusing on GDP

growth and job creation.

He termed the event a milestone in

the history of Pakistan''s financial and

capital markets and said it will go a

long way towards country''s

sustainable development.

He said now due to a rapidly

improving economy, foreign investors

were taking keen interest to invest in

Pakistan. "The $46 billion mega

project of the China-Pakistan

Economic Corridor is a game

changer and it would bring prosperity

and stability in the country," the

minister added.

He said the government had also

introduced measures to enhance

revenue collection and the

government's Voluntary Tax

Compliance Scheme was part of

those measures which would help

bring hundreds of thousands new

taxpayers into the tax net. The

scheme was no amnesty scheme; it

was in fact a voluntary scheme which

was introduced for the facilitation of

small traders.

He said the government was

endeavouring to resolve energy crisis

and to end the load shedding by end

2017 or by the start of 2018 as 10,000

MW more electricity would be added

to the national grid by that time.

In his speech, Chairman SECP Zafar

Hijazi said the SECP has realised that

unless the three stock exchanges

integrate, no strategic investor would

come forward and therefore the

SECP remained engaged in dialogue

with the stock exchanges for their

integration and fully facilitated a

consultative process.

He said that Pakistan needs a stock

exchange that commands absolute

confidence of domestic and foreign

investors and is able to mobilise capital

for economic growth. To achieve

such absolute confidence, he said PSX

must demonstrate the highest

standards of governance,

transparency, ensure the best

technology and availability of

innovative products, without which it

Trade Chronicle - January - February 2016 - Page # 09


cannot compete in today's globalise

stiff competition.

Meanwhile, addressing the ceremony,

Munir Kamal, Chairman PSX, said

the formation of PSX was a

"watershed event" for the country's

capital market. He said due to rapidly

improving economic situation of the

country, not only local investors but

the foreign investors were also taking

keen interest in Pakistan''s capital


He said Pakistan's corporate

governance performance was close

to the world standards and after the

formation of one national stock

exchange the performance would

become better in future. He said there

were some flaws in the taxation

system. We would like to present

some proposals during the next

budget and if the government accepts

those proposals, the taxation system

would become more improved."

Mukhtar Hussain Jaffri, Chairman

ISE Board, said the decision of

amalgamation of three stock

exchanges was made after mutual

consultation and agreement and the

concerns of stakeholders were

addressed. The Chairman,

Demutualization Committee ISE,

Mukhtar Ahmed Jaffery, Chairman

Demutualization Committee LSE

Yasser Mahmood, eminent business

leader Arif Habib addressed the

ceremony of PSX launch.

The ceremony was attended by highlevel

foreign diplomats, including

Chinese, Canadian, Italian and Turkish

delegates, as well as senior

parliamentarians and prominent

members of the brokerage, media and

legal fraternity. Other notable

speakers on the occasion, included

Arif Habib, Ferozuddin Cassim,

Muhammad Naeem, Syed Mukhtar

Hussain Jaffery and Dr Yasir

Mahmood. They appreciated PSX as

a milestone achievement for

Pakistan. The ceremony was

attended by Governor and Deputy

Governor State Bank of Pakistan,

members of the SECP Policy Board,

Chairperson Competition Commission

of Pakistan, Chairman National

Investment Trust, Chief Executives

and board members of PSX and the

former exchanges, clearing company,

depository company, commodity

exchange, and prominent business

leaders from the banking, capital

market, insurance and non-banking

financial sector.

Trade Chronicle - January - February 2016 - Page # 10


Special Report t on PMLS 2016

Khurram Dastgir Khan announces formation of

Leather Concil for Pakistan Leather Industry

Chairman PTA Gulzar Firoz reviews and proposes remidal measures

for increase in leather export

PFMA Chairman Wasim Zakaria demands restoration of 6% R&D

Commerce Minister Khurram

Dastgir Khan has inaugurated

"Pakistan Mega Leather Show 2016"

at the International Expo Centre in

Lahore in late January. Chief

Executive of Trade Development

Authority of Pakistan S M Muneer,

Chairman Pakistan Footwear

Manufacturers Association Wasim

Zakaria and Pakistan Tanners

Association Chairman Gulzar Firoz

also spoke on the occasion. FPCCI

President Abdul Rauf Alam,

Ambassador of the European Union

to Pakistan Jean-Francois Cautain,

Chairman Pakistan Leather

Garments Manufacturers and

Exporters Association Chaudhry

Zulfiqar Hayat, Pakistan Glove

Manufacturers and Exporters

Association's Sadaqat Ali Khan, Vice

President SAARC Chamber of

Commerce and Industry Iftikhar Ali

Malik, Convenor, Steering Committee

of Pakistan Mega Leather Show

2016, Muhammad Musaddiq were

also present on the occasion.

The minister also announced

formation of Pakistan Leather Export

Promotion Council and said the

notification would be issued in next


The Strategic Trade Policy

Framework will be announced soon

while we are going to launch branding

campaign for the Pakistan

Commerce Minister Khurram Dastgir Khan visiting Siddiq Leather stall.

Muhammad Musaddiq is seen explaning about Company progress to Chief Guest.

Gulzar Firoz, Chairman PTA is also seen in picture.

merchandise internationally. Pakistan

is getting reconnected with the world.

Pakistan has achieved political

stability which leads to policy and then

economic stability. He also

announced to double the capacity of

Expo Centre Lahore and setting up

Expo Centre in Peshawar.

Dastgir said that the current year

would be challenging in term of

exports, mainly because of the

economic slowdown in China and

there could be a decline in the import

orders from the Chinese companies

which used to buy Pakistani yarn.

Moreover, depreciation of the euro

against the dollar internationally would

also negatively impact the country

exports. As a result, we may also lose

the impact of 15 percent increase in

exports to EU countries following grant

of GSP Plus status, the minister added.

He said the efforts are underway to

collect taxes through one-window

that would be distributed later among

the federating units. During the

current winter, zero load-shedding

was observed at all the industrial

feeders across the country.

He said that not only the industrial but

the domestic consumers would be

getting electricity at competitive rate

Trade Chronicle - January - February 2016 - Page # 11


Gulzar Firoz, Chairman of

Pakistan Tanners Association

(PTA) in his welcome address has

informed the audience that

leather industry in Pakistan, is

2nd only in foreign exchange

earners after textile in the

manufacturing sector. It

contributes 5% of exports

earning of the country. It also

contributes 2.67% to GDP and

employees over 01 million

workers, thus it is a valuable value

added industry with intensive

labour employment.

Its exports in the year 2014-15 were

US$ 1.195 billion. here are over 800

Tanneries in Pakistan and represents

as “Mother Industry” for Leather

Footwear, Leather Garments,

Leather Gloves and Leather Goods.

Pakistan is an agro based country and

is very rich in livestock having cow,

buffalo, sheep and goat which are

considered as one of the best raw

materials in the world.

He pointed out that the leather

exports are stagnant in the last five

years whereas regional competitors

countries exports have tremendously

increased. For example in China

exports increased by about 19%,

India 63% and Bangladesh about

73.58%, in the last five years. This

clearly shows that whereas the

neighbouring countries are adopting

incentive policies, in Pakistan the

Government is not giving priority to

the leather sector.

He requested the Government to

take necessary steps to stop declining

in export of leather by giving some

incentives which are required to have

level playing field with the

neighbouring countries.

He rightly suggest that Pakistan’s

global share in leather exports is

negligible therefore we have to

consider measures to increase our

leather exports as well as to take steps

to add to value added products.


a) Incentive of 4% on FOB value on

enhanced value of exports:

It is requested that like other value

added exports 4% incentive which is

being given to leather products in case

of 10% increased, the same incentive

of 4% on FOB value may be given

on the export of finished leather.

b) Export Refinance Rate

The State Bank of Pakistan recently

reduced the refinance rates for textile

sector only from 3.5% to 3%. He

requested that the same rate of 3%

may be applied to the Leather Sector.

c) Custom Duty

The Custom Duty may be abolished

on raw material.

d) Duty Drawback Rebates

He pointed out that the Duty

Drawback Rebates for leather sector

in Pakistan are much lower than

neighbouring countries and it should

be revised. (For Shoe) in Pakistan

Duty Drawback rate is 0.8% whereas

in India Duty Drawback rate is 5.8%,

in China 7.50% and in Bangladesh


He also requested that Duty

Drawback and sales tax are refund

immediately which are pending with

concerned departments for months

and in some cases more than 02

years. This will greatly improve the

liquidity of the leather sector which

is undergoing recession and there are

huge stocks piled up.

e) Energy cost

It is requested that Export Industries

there should be a special tariff with

reduced rates.

He requested the Federal Minister for

Commerce to announce Strategic

Trade Policy and grant fund for

setting up Effluent Treatment Plants

(ETPs) on individual basis.Beside

Setting of Labs on sharing basis and

25% financial cost will be given by

the Government.

Wasim Zakaria, Chairman,



Manufacturers Association

(PFMA) in his welcome address

shared some basic information

about the footwear industry.

According to recent data the global

footwear trade is worth $200 billion.

Out of this, Pakistan contributes only

$100 million. Pakistan total export has

been hovering around this figure for

the past many years with record

export witnessed in 2014 when it

peaked at $130 million mark. In other

words Pakistan represents only

0.065% of the global footwear


Domestically we are market worth

Rs. 200 billion with huge potential for

growth, he said. The chiramn of

PFMA has requested government for

revision of duty drawback, as an

average footwear enjoys 9-12% duty

drawback rates in the region whereas

in Pakistan we have a meager 1.85%

and that too is not realized on time.

He asked for 4% relief to exporters

whose exports had grown by more

than 10% in 2014. He emphasized

that in order to boost exports, the

sector needs a level playing field to

compete in the international arena. He

Trade Chronicle - January - February 2016 - Page # 12


A review of successful conclusion of

2nd Pakistan Mega Leather Show

Pakistan Tanners Association (PTA)

has informed that the 2nd Pakistan

Mega Leather Show in consecutive

was held in Lahore International Expo

Centre, Lahore (Pakistan) from 27-

29th January’2016.

It was jointly organized by all

stakeholders of Leather Sector of

Pakistan such as Finished Leather

(Pakistan Tanners’ Association -

PTA), Leather Footwear (Pakistan

Footwear Manufacturers Association

– PFMA), Leather Garments

(Pakistan Leather Garments

Manufacturers & Exporters

Association – PLGMEA) and

Leather Gloves (Pakistan Leather

Gloves Manufacturers & Exporters

Association – PGMEA) with the

patronage of Government of

Pakistan, Trade Development

Authority of Pakistan.

It was a joint collaborated efforts

for organizing 2nd Pakistan Mega

Leather Show in Lahore

(Pakistan) with the exclusive

motive(s) 1) To portray and

improve the positive image of

Pakistan to the World’s business

community 2) To motivate the

leather business entrepreneurs for

business growth 3) To enhance the

confidence of investors in

Pakistan’s business market and to

attract international masses

towards the tremendous potentials

that exist in the leather sector of

Pakistan and enhance the domestic

potential strength to provide viable

platform within the country for ties/

joint collaborations between the

allied industries of Leather Sector

Mr. Muhammad Musaddiq, Convener, PMLS’16 addressing to Print &

Electronic media during press conference for PMLS’2016, held in Lahore.

of Pakistan and foreign companies.

The first activity of Pakistan Mega

Leather Show (PMLS) 2016 was

holding of Press Conference which

was held on 25th January’2016 at

hotel in Lahore. The Press

Conference was addressed by Mr.

Muhammad Musaddiq, Convener,

PMLS-2016 and was attended by Mr.

Wasim Zakaria, Chairman, Pakistan

Footwear Manufacturers Association

(PFMA), Mr. Agha Saiddain and

Inauguration of Trend

Gallery at PMLS’2016,


Significant feature of the Show this

year (2016) was a “Trend Gallery”

prepared at the Entrance of the

venue/Hall in PMLS’16, which was

inaugurated by the Honourable Chief

Executive, Trade Development

Authority of Pakistan, Government of

Pakistan, Mr. S.M. Muneer.

The trend gallery was embellished

with all products of Leather Sector

i.e. Finished Leather, Leather

Footwear, Leather Gloves, Leather

Products, Leather Bags, Leather

Belts and swatches of innovative

articles of finished leather to attract

Visit of H.E The

Ambassador of Italy in

Pakistan to PMLS’2016

in Lahore on 27.01.2016

H.E. The Honourable Ambassador of

Italy in Pakistan, Mr. Stefano

Pontecorvo paid a visit to

PMLS’2016, Lahore and visited to

the Italian Group Pavilion located in

Hall # 1 in particular and also visited

the Show. The Honourable

Ambassador also attended a Seminar

within the venue organized by

ASSOMAC/Italian Trade Agencies

Trade Chronicle - January - February 2016 - Page # 13


in coordination with PTA on the

subject of “Italian workshop/seminar

on Tanning and Footwear

Technologies” which was so

productive for the participants

attended largely. Mr. Gulzar Firoz,

Chairman, PTA delivered a welcome

Address to the Ambassador and

shared the views of Mr.Muhammad

Musaddiq, Convener, PMLS’16,

Lahore with the gathering. He gave

details of leather export from Pakistan

to Italy and informed that Italy is our

one of the important leather buyer in

the world.

Mr. S.M.Muneer, CEO/TDAP inaugurating the Trend Gallery in

PMLS’2016 in Lahore.

The Honourable Federal Commerce

Minister has announced the formation

of “Leather Export Promotion Council

– LEPC ” in Pakistan, which would

be real autonomous platform for

addressing & resolving Leather

Sector issues promptly.

Int’l Symposium on

Developing Pakistan

Leather and Value Added

Industries held on

28.01.2016 at venue

A Symposium was held on the above

subject organized by PITCO (Pvt)

Ltd., duly sponsored by EU under its

assigned programme for Pakistan and

Mr. Mr. Jean Francois Cautain,

Honourble Ambassador of the

European Union to Pakistan was the

Chief Guest at the symposium. The

symposium was much conducive for

the participants for the up gradation

with the international standard

techniques to enable much more

attractive value addition to the

domestic industry of Leather Sector

as to further penetration could be

made to the international market with

competitiveness in all respect.

Besides, another Seminar organized

by Shafi Reso Chem within the venue

A group photograph with H.E. The Ambassador of Italy in Pakistan on his

visit to PMLS’16, Lahore.

Honourable Federal Commerce Minister inaugurating the Show on


Trade Chronicle - January - February 2016 - Page # 14


Grand Dinner on

28.01.2016 at the venue

of the Show

A Grand Dinner was hosted on

28.01.2016 within the Venue and

the Honourable Government of

Punjab, Malik Rafique Rajawana

Sahib was the “Chief Guest”. The

dinner was attended by all the

Exhibitors, Foreign Guests/

Participants, Government

Officials, imminent personalities of

the city etc., and the following

ceremonies were also held during

the Dinner :-

a) Shields were awarded to the

Members of Steering Committee

of PMLS’2016, Lahore to

acknowledge their untiring efforts.

Mr. Jean Francois Cautain, Honourble Ambassador of the European Union

to Pakistan addressing to the Gathering of Symposium held on 28.01.2016)

on “Cost saving through modern


on 29.01.2016 which was helpful &

conducive for the participants.

b) Shields were awarded to

Secretary Generals of the

Associations to appreciate their

vigorous efforts for organizing

such a big & beautiful event of 2nd

PMLS’16, Lahore.

c) Prize Distribution for the best 3

Stalls in PTA & PFMA’s

participants and as per Jury’s

decision the following were

selected :-

PTA’s side

1st Best Stall : Shafi Reso


2nd Best Stall: Khawaja


3rd Best Stall: Passari Org.,

PFMA’s Side

1st Best Stall: Quadri Group

2nd Best Stall: Urbansole/Shafi

(pvt.) Ltd.

3rd Best Stall: Intra-Keck

Distribution of Shields to

the Exhibitors/

Participants of 2nd

PMLS’2016 in Lahore

In order to acknowledge the

participation, Shields prepared

specially were distributed to each

Stand Holders of the Show on the

last day of the Show with special

thanks for their participation in

PMLS’2016 in Lahore, which was

the real essence for the success of

the Show.

Seminar organized by

Shafi Reso Chem

within the venue on


In order to create awareness, a

Seminar on the subject of “Say No

to Health Hazards Chemicals” was

organized by one of the Exhibitors,

Shafi Reso Chem within the venue

Announcement of next

PMLS’2017 in Lahore

During the Speech, the Convener,

Pakistan Mega Leather Show, Mr.

Muhammad Musaddiq announced the

dates of Next “3rd Pakistan Mega

Leather Show” scheduled to be held

from 27-29th January’2017 at Lahore

Int’l Expo Centre, Lahore with regular

& much more new features of the

Show and would try to expand the size

of participation to be covered with 3 or

4 Halls at the Venue to accommodate

all interested participants.

Pakistan Mega Leather Show in

Lahore has now become an icon of

Leather Sector of Pakistan as

already established its recognition

domestically & internationally that

offers countless business

opportunities and is surely the most

cost effective means for boosting the

sales potential/exports. As such, all

interested may avail this unique &

vital opportunity/platform in Pakistan

as most potential destination of the

Trade Chronicle - January - February 2016 - Page # 15


PSO announces upswing in profitability for 1HFY16

The Board of Management (BOM)

of Pakistan State Oil Company

Limited (PSOCL) has reviewed the

performance of the Company for the

first half of financial year 2015-16

(1HFY16) recently.

During the period under review i.e.

1HFY16; PSO’s market share stood

at 55.5% with 46.9% share in White

Oil (Mogas, HSD, SKO, JP-1) and

69.6% share in Black Oil (FO, LDO).

The Company’s sale volume of Motor

Gasoline grew by 26% over Same

Period Last Year (SPLY) mainly due

to decrease in price of gasoline and

subsequent increase in customer

demand. Additionally, HSD sales

recorded an increase of 0.7% over

SPLY while 5.7% growth was

witnessed in JP-1 on account of

increased upliftment by PIA and

international airlines. FO volumes

declined by 4.3% due to lower

upliftment by IPP’s primarily due to

shifting from FO to natural gas.

The Company’s profitability for

1HFY16 witnessed marked

improvement and rose by 57% to Rs

6.7 billion as compared to Rs 4.3 billion

during SPLY. This increase in

revenue was mainly due to growth in

sales volume and margins of white

oil products and decreased inventory

losses. A significant drop in operating

and finance costs by 18% and 39%

respectively also contributed to

enhancement in the Company’s

profitability. However, decrease in

black oil margins owing to reduction

of 48% in the OPEC price of crude

Engro Polymer gross profit jumps to

Rs.2.77bn in 2015

oil per barrel had an adverse impact

on profitability of the Company.

Pakistan and Qatar inked a historic

agreement for the provision of

Liquefied Natural Gas (LNG) to

meet the growing energy needs of

Pakistan. Being the designated entity

by Government of Pakistan for

procuring LNG to meet the gas deficit

of the country, PSO entered into

Long term LNG Sale Purchase

Agreement (SPA) with Qatar

Liquefied Gas Company Limited

(QG2). Under this agreement the

Company will be acting as the sole

LNG buyer for Pakistan keeping in

view the company’s international

credibility and expertise in the energy

supply chain.

Fatima Fertilzer plans

to rasie $ 300 million for

overseas unit

Engro Polymer and Chemicals Ltd

(EPCL) posted a net loss of Rs649

million (loss per share at Rs0.98)

during 2015 compared to Rs1.02bn

a year ago, the company announced

recently. Net revenue for the year

amounted to Rs22.3bn, down from

Rs23.8bn in 2014. Reduced cost of

sales pushed gross profit up to

Rs2.77bn from Rs1.67bn. The

company recorded an operating

profit of Rs778m, jumping out of a

Rs370m operating loss in the

preceding year.

Earlier in autumn, Engro

Corporation Ltd announced that it

had decided to part ways with its

subsidiary EPCL by divesting

56.19pc (373m shares) stake along

with management control.

EPCL, established in 1997, is

manufactures, markets and sells

polyvinyl chloride (PVC), vinyl

chloride monomer (VCM), caustic

soda and other related chemical

products. However, EPCL’s

performance over the last few

years has been far from


At the time Engro announced its

decision to sell its stake in EPCL, it

was unclear if the other two major

shareholders — the International

Finance Corporation with a 14.64pc

stake and the Mitsubishi

Corporation with a 10.24pc interest

in the company — had decided to

retain or sell off their stake following

Engro’s withdrawal.

Fatima Fertilizer Company (FCC),

major stakeholder in the Midwest

Fertilizer (FFC), has planned to raise

$300 million through tax incrementfinancing

bonds to fund its

manufacturing facility in Indiana,

United States, company officials

said recently. “Citibank (the financial

advisor) has advised that the month

of March would be an appropriate

time to raise the funds from the

international market,” Arif Habib,

chairman FFC, told media. The

project will be partially funded by an

already secured $1.259bn taxexempt

debt borrowed for the

company and facilitated by an

Indiana county, under the Heartland

Disaster Tax Relief Act of 2008. The

remaining funds will be comprised

of equity, tax increment-financing

bonds, and some term debt.

Trade Chronicle - January - February 2016 - Page # 16


Commissioner Karachi & President KCCI emphasized on

social investments

Addressing to the big gathering of

corporate CEO’s and head of

renowned NGO’s at the flagship

conference of 5th Summit & Awards

on Corporate Social Responsibility

held on February 11th, 2016 at a local

hotel organized by The Professionals

Network, the Commissioner Karachi

Asif Hyder Shah said it is extremely

important for each citizen to contribute

towards well-being of the society and

play its part and its role by

acknowledging his obligations and

duties towards society. He also

articulated that our Religion Islam

believes in fair distribution of wealth

which is ultimately Corporate Social

Responsibility. He also said Islam

believes in charity and it is not the

sole responsibility of the government

to contribute and shoulder the underprivilege

segment of the society as

Government, Corporate Sector &

Society Individuals needs to work

hand-in-hand to do so.

Chief Guest Mr. Younus Bashir

(President KCCI) speaking to the

audience said KCCI being the largest

chamber of Pakistan and the subcontinent

attaches importance to CSR

and best corporate practices. He

added that it is satisfying to note that

over the years in Pakistan; the

corporate sector has focused on

responsible business practices

highlighting sustainability, social and

environmental issues.

Mehmood Tareen (CEO & President

The Professionals Network - TPN)

during his welcome address that TPN

has taken an initiative in March 2012

to bridging the gap between the

corporate companies & NGO’s and

provide them a platform of interaction

and networking to find the best

available solutions within the

resources available in our country.

Ateeq-ur-Rehman during his

Introductory Address said that CSR

activities mitigate risks, enhance

reputation, and contribute to business

results, that is all to the good. He

emphasized on the need of

contributing towards the sectors of

Health, Education through CSR


Abdul Haseeb Khan (Ex-Senator,

President & CEO Brooks Pharma

Pvt. Ltd) on the subject-matter of

Inspiring People through CSR stated

that it is not something which is hard

to understand or impossible to

practice as CSR is engraved in the

human being.

Keynote Speaker Mr. Sirajuddin Aziz

(President & CEO Habib

Metropolitan Bank) said at this

platform that Honesty & Moral

Responsibility are basic principles of

our religion as ethics begin since birth

and practicing them while dealing

people is business ethics.

Mr. Emil Wyss (Consul General of

Switzerland) during his exclusive

address said that I am seeing a stage

of transformation in Pakistan and I

see situation in Pakistan is getting

better gradually which is really

fascinating to witness. He said

considering the rapidly changing

situation in the country; many swiss

organizations and companies are

looking forward to invest in various

projects in Pakistan. Mr. Jakob Rogild

Jakobsen, Deputy Head of Mission

Embassy of Denmark said smallest

of organizations benefit when putting

Corporate Social Responsibility

(CSR) at the heart of their business,

Contd. on page # 18

Trade Chronicle - January - February 2016 - Page # 17


Norwegian envoy sees great trade potential in Pakistan

Ambassador of Norway Tore

Nedrebo has said that there is a great

potential for Pakistan and Norway to

increased trade as many Norwegian

companies are interested in making

investments in Pakistan. “Norwegian

companies are exploring investment

opportunities around the world and if

they see such opportunities in

Pakistan, they will surely come to

invest in this country as well,”

Nedrebo said while addressing a

meeting at the Karachi Chamber of

Commerce and Industry (KCCI).

The Norwegian envoy said, that “the

existing trade volume of $70 to $80

million which fortunately was in

favour of Pakistan was not a lot. We

need to do a lot more for improving it


Highlighting some glaring examples

of Norwegian investments in

Ambassador of Norway Tore Nedrebo receiving KCCI momento.

Pakistan, Nedrebo said that

Norwegian companies planned to

establish a solar power plant in Sindh

for which ground work would begin

this year with an initial investment of

$250 million which might grow further

keeping in view Pakistan’s need for

energy”. He further said that a

hydropower project would also by

established in northern areas of


Earlier in his speech, President KCCI

Younus Muhammad Bashir

welcomed the Norwegian

ambassador and said that Karachi

offered profitable investment


Commenting on trade ties between

Pakistan and Norway, Bashir said the

two countries shared healthy

diplomatic relations and it was

heartening to note that Norway had

been providing development

assistance to Pakistan, particularly in

the areas of governance and


Bashir pointed out that during the

fiscal year 2015, Pakistan exported

goods worth $54 million to Norway

while the imports from Norway stood

at $9.20 million. He was of the view

that there was much potential for

enhancing bilateral trade relations

between Norway and Pakistan, as

Norway imported $3 to $4 billion of

textiles related items from around the

globe. He said Pakistan had a good

chance to enhance its exports share

of textiles in the Norwegian market.

“We also want to promote Norwegian

investment in Pakistan and do

everything for the development of

Pakistan-Norwegian business

cooperation,” concluded the KCCI


Cont. from Page #: 17

starting with small changes on a

simple environmental policy list.

Other Speakers were Fasihul Karim

Siddiqi, Secretary & Focal Point for

Pakistan UN Global Compact Abdul

Rauf Khajjak, GM CSR OGDCL, Air

Commodore Shabbir A. Khan,

Director Rashid Memorial Welfare

Organization, Dr. Altaf Hashmi,

Professor SIUT, Abbas Akberali,

Chairman Amreli Steels, Madiha

Javed Qureshi, Nestle Pakistan,

Rehan Hanif, Chairman Future

Group, Ziad Chowdhery, CFO &

Director Bayer Pakistan, Rana Azfar

Zafar, GM Novo Nordisk Pakistan,

Shahbaz Islam, GM Corporate

Communication SSGC & Mr. Umair

Jaliawala, Director & CEO School

of Leadership.

The event was Sponsored by,

OGDCL, Pakistan Bait Ul Mal,

Habib Metropolitan Bank Ltd,

Bank Alfalah Limited, Future

Group, Engro Corporation,

Syngenta Pakistan, Amreli Steels

Ltd, Maersk Line Pakistan, Bayer

Trade Chronicle - January - February 2016 - Page # 18


People & Events

Zakaria assumes charge

as FO spokesperson

Mohammed Nafees Zakaria has took

over charge as the new spokesperson

of the Foreign Office, replacing Qazi

Khalilullah. A career diplomat around

28 years, Zakaria was aeronautical

engineer before joining Foreign

Service of Pakistan in November

1988. Since then, he has served at

headquarters in Islamabad and

Pakistan Diplomatic Missions abroad

on various assignments.

He attended National Security and

War Course at the National Defence

University, Islamabad, from August

2015 to January 2016.

Zakaria replaced Qazi Khalilullah

who has been appointed as Pakistan's

Ambassador to Russian Federation.

New OICCI president

Mr Rizvi was elected as OICCI

president at the 156th annual general

meeting held recently and Khalid

Mansoor as vice-president. Other

elected members of the OICCI

managing committee for 2016 are:

Aftab Husain, Kimihide Ando,

Marek Andrzey Minkiewicz,

Nauman Ansari, Nadeem Lodhi and

Omar Yaqoob Sheikh, said a press


Yousafzai assumes

charge as CEO Pesco

Anwar Ul Haq Yousafzai has

assumed charge as Chief Executive

Officer (CEO) Peshawar Electricity

Supply Company (PESCO). He

obtained MBA degree from Quaide-Azam

College of Commerce

University of Peshawar. He joined

FATA Development Corporation as

Accounts Officer. In 1991 he joined

Wapda as Deputy Director Finance

and after performing duties on

different important posts in WAPDA

Academy Tarbela, Tarbela Dam

Project, Ghazi Barotha Project,

PEPCO and PESCO. In 2014 he was

designated as General Manager

Finance Pesco and succeeded in

bringing down PESCO's deficit from

Rs 34 billion to Rs 16 billion by

implementing financial management.

The newly elected president of the

Overseas Investors Chamber of

Imran Gardezi

Secretary IB&NH Imran

Gardezi assumes charge

Newly appointed Secretary

Information, Broadcasting and

National Heritage Syed Muhammad

Imran Gardezi recently assumed

charge of his office.

He is the most senior officer in the

Information Group who brings with

him rich experience of serving as

Press Secretary to the Prime Minister

and has served in London and

Washington as the Press Minister. He

also served as Principal Information

Officer (PIO), Director General

External Publicity Wing and Director

General of Paksitan Broadcasting

Corporation (PBC).

Commerce and Industry (OICCI)

has said the chamber would focus

on streamlining taxation system and

giving policy input on resolving

energy supply gap in the country

during his tenure.

Shahab Rizvi said that better

security environment, especially in

Karachi, and contribution towards

improving intellectual property rights

(IPR) regime in Pakistan would be

another key area to focus during this


Trade Chronicle - January - February 2016 - Page # 19


Iftikhar Ali Malik elected

VP Saarc CCI

The Chairman of United Business

Group and veteran business leader,

Iftikhar Ali Malik, was elected

unopposed as Vice President

SAARC Chamber of Commerce and

Industry for the 5th consecutive


Premier Insurance

appoints Dr Imran Taqi

as advisor

Premier Insurance Limited (PIL), a

leading insurer with a vision of

serving the nation has appointed Dr

Muhammad Imran Taqi Usmani as

Shariah Advisor and Ernst & Young

Ford Rhodes Sidat Hyder as Shariah

Auditor. Dr Muhammad Imran Taqi

Usmani, a renowned Islamic scholar

holds LLB, M. Phil and Ph.D.

Degrees in Islamic Finance.

He also holds an Alamiyya and a

Takhassus (Specialisation in Islamic

Jurisprudence) from Jamia Darul-

Uloom, Karachi.

Prof Dr Arshad new ED


The Higher Education Commission

(HEC) has approved the appointment

of Prof Dr Arshad Ali as ED HEC.

Dr Arshad Ali was serving as Rector

Textile University, Faisalabad.

M Azfar Ahsan

appointed chairman

MARCON-2016 body

The Executive Council of

Marketing Association of Pakistan

appointed Muhammad Azfar

Ahsan as Chairman of MARCON

2016 Committee. He is a member

of Executive Council and

Chairman Program Committee of

Marketing Association of Pakistan.

KUJ elects office-bearers

The Green Panel swept the Karachi

Union of Journalists (KUJ) elections

for 2016-2017. S. Hassan Abbas was

elected president with a majority vote

of 796 of the 838 polled in the

elections held recently. His rival Rafiq

Ahmed Shaikh polled 27 votes.

Wajid Raza Isfahani was elected

general secretary and Zaheer Ahmed

Khan and Aijaz Ahmed as vice

presidents unopposed. For the post of

joint secretary Lubna Jerar and

Naseem Rajput and for Treasurer

Nasir Sharif were also elected


A 10-member executive council of

the KUJ was also elected. They are

Ghulam Akbar Jafri, Ghulam Mustafa

Aziz, Imran Zakir, Ishaque Baloch, M

Azeem, M Salahuddin, Mohammad

Ali Hafeez, S Mazhar Abbas, Shazia

Khan and Zamir Hassan.

APBF appoints Maaz

Mahmood as General


The ‘All Pakistan Business Forum’

(APBF) has appointed Maaz

Mahmood as its new General


Syed Maaz Mahmood, has extensive

experience as a Director of Supreme

Powder Coatings Pvt Ltd. He is a

highly-qualified and successful

entrepreneur with a Masters degree

in Chemical Engineering and an MBA

degree from the University of Punjab.

The APBF is a vibrant business

association, with high-profiled

participation from many dynamic

enterprises, associations and


Election of Office

Bearers of ICSP for the

Year 2016

The National Council of the Institute

of Corporate Secretaries of Pakistan

(ICSP) in its meeting held in Karachi

on 29th February 2016 has elected

the following office bearers for the

year 2016: President : Mr.

Mohammed Zaki (FCIS, FCA, FPFA)

Vice President : Mr. Abdul Rehman

(FCIS, FCMA) Vice President : Mr.

Muhammad Sabihuddin (FCIS, FCA,

FCMA, FPFA) Treasurer : Mr.

Salman Ahmad (FCIS, ACA, IIA)

Secretary : Mr. Shamim Akhter


Trade Chronicle - January - February 2016 - Page # 20


Photograph taken at a dinner held in honor of Mian Khurshid Mahmud Kasuri, former Foreign Minister of Pakistan and

Begum Kasuri, by Mr. & Mrs. Abdul Kader Jaffer, former Pakistan High Commissioner to U.K. along with distinguished

guests, local diplomats and elite of Karachi.

Photograph taken at a farewell dinner held in honor of His Excellency Rodolfo José Martin Saravia, Ambassador of

Republic of Argentina, & Mrs. Susana Martin Saravia by Mr. & Mrs. Abdul Kader Jaffer, former Pakistan High Commissioner

to U.K. along with distinguished guests, local diplomats and elite of Karachi.

CLII elects office-bearers

The Council of Lahore Insurance

Institute (CLII) has elected Syed

Imran Rabbani as Chairman, Liaquat

Ali Khan as Vice Chairman and S

Daood Ali Shah as Honorary

Secretary for 2016-17.

The Council members include

Mohamd Ishaque Khan, Mohammad

Ikram, Muhammad Aslam Sabir,

Abdul Haye, Muhammad Hisham,

Anjum Rasheed Chaudhry,

Naeemuddin, Chaudhry Ghulam

Mustafa, Zulfiqar Ali Khan, Amir

Hameed and Adnan Ahmed

Chaudhary as ex-officio member.

Sadiq elected Gapuic

vice chairman

National Assembly Speaker Ayaz

Sadiq was unanimously elected

vice chairman of the 11th General

Assembly of the Parliamentary

Union of the Islamic Countries

(Gapuic), according to a

statement received from Baghdad


Gapuic was jointly inaugurated in

Baghdad by Iraqi President Fuad

Masum and Prime Minister Haider

Jawad Kadhim Al Abadi.

PBC gets new chairman

President and CEO of Bank Alfalah,

Atif Aslam Bajwa, was unanimously

elected as the chairman of Pakistan

Business Council (PBC), said a press

release recently. At the 54th meeting

of a newly formed PBC board, Lucky

Cement CEO Muhammad Ali Tabba

was named vice-chairman, it added.

Trade Chronicle - January - February 2016 - Page # 21


Mr. Khalid Rehman, MD SSGC, Dr. Faizullah Abbasi, Vice Chancellor Dawood University and Assistant Professor Salim A.

Mughal speaking to Expose on Unaccounted for Gas at Dawood University Auditorium.

Shahbaz Islam (7th from R), head of Corporate Communications, SSGC presenting a cheque for financial support to 225

children suffering from Thalessemia to Zaki Ahmed (9th from R), President Afzaal Memorial Thalessemia Foundation (5th

from R), through its Corporate Social Responsibility program.

Head of Corporate Communication SSGC, Shahbaz Islam receiving 5th CSR Award from President KCCI Younus Bashir.

This award was conferred upon SSGC by The Professional Network in the category of Sustainability Initiatives.

Trade Chronicle - January - February 2016 - Page # 22


Port t & Shipping News

PNSC profit grows

despite falling freight

The Board of Directors of Pakistan

National Shipping Corporation

(PNSC) reviewed

and approved the

financial results of the

national flag-carrier

for the period ending

December 31, 2015.

With Minister Ports

and Shipping Senator

Kamran Michael in

attendance, the

PNSC board said the

company had made

after tax profit of Rs

810 million as of

December 31st, 2015

compared to Rs 793

million of the

corresponding period last year.

PNSC's net profit for the period

under review came out to Rs 1.20

million at the end of 2015. The

resulting impact is the increase in

earnings per share (EPS) for the

whole group which stands presently

at Rs 6.14 at the close of this year,

whereas it remained last year at Rs

6.00 during the corresponding period.

Minister Ports and Shipping Senator Kamran Michael is presiding PNSC

board meeting. Chairman PNSC Arif Elahi is also seen in picture alone

with others.

The achievement of PNSC is despite

the recession in global shipping

industry they have faced due to drastic

reductions in bulk freight rates

internationally and has become

possible due to more focused

approach of PNSC for considering

profitable ventures besides retaining

its repute as one of the major

contributor of sea borne trade in


Through best

p o s s i b l e

combination of

foreign charter

and PNSC's own

fleet, a substantial

growth in the slot

area and vessel oil

business by

PNSC while


performance at


levels. During the

board meeting,

the possibilities of commencing ferry

service also came under discussion

with the federal minister issuing

necessary instructions to the directors

and Chairman PNSC.

Karachi Port cargo

handling grows 13pc

The Karachi Port handled 24.485

million tonnes of cargo during the first

half (July-December) of 2015-16 as

compared to 21.652m tonnes handled

in the same period last year, an

increase of 13.08 per cent.

Bulk of cargo handled by the port was

related to imports which grew by

18.15pc year-on-year while export

cargo registered a decline of

4.13pc.As per the official data, import

of dry general cargo grew by 21.87pc

to 8.321m tonnes from 6.828m tonnes

Dry bulk cargo handling also grew by

8.64pc to 4.314m tonnes from 3.971m

tonnes in the same period last year.

Import of liquid bulk cargo rose

20.24pc to 7.131m tonnes from

5.930m tonnes in July-December

2014-15. However, handling of export

cargo fell to 4.718m tonnes from

4.921m tonnes.

As per the break-up of exports, the

port handled 3.746m tonnes of dry

general cargo as compared to 3.587m

tonnes, an increase of 4.43pc yearon-year.

However, export of dry bulk cargo

declined by 45.56pc to 323,807 tonnes

from 594,757 tonnes. Export of liquid

bulk cargo also dipped 12.33pc to

648,127 tonnes from 739,317 tonnes

in the same period last year.

During July-December 2015-16, the

port handled 938,258 TEUs as

compared to 833,158 TEUs in the

same period last year, a growth of


As per the details, handling of import

containers grew 12.94pc to 484,797

TEUs from 429,238 TEUs. While,

handling of export cargo containers

also rose 12.27pc to 453,461 TEUs

from 403,920 TEUs in July-

December 2014-15.

Trade Chronicle - January - February 2016 - Page # 23


Captain Haleem Ahmad Siddiqui,

Chairman Marine Group of

Comapnies, wins the Lifetime

Achievement Award, sponsored by

Kuwait Oil Tanker Company, at the

Lloyd’s List Middle East and Indian

Subcontinent Awards, held recently.

Lifetime Achievement Award

The Lloyd's List Awards series

recognises the industry’s successes,

setting a benchmark for excellence

while rewarding innovative ideas and

concepts that have pushed the

boundaries of what is possible.

This year the Lloyd’s List Middle East

and Indian Subcontinent Awards

recognised many who had contributed

to the changing nature of the shipping

industry, with new awards given to

the outstanding individuals shaping

some of these changes and to the

companies driving change with their

training, environmental and

humanitarian projects. Captain

Haleem Ahmad Siddiqui won the

Lifetime Achievement Award at the

Lloyd’s List Middle East and Indian

Subcontinent Awards, presented at

the esteemed Armani Hotel Dubai on

Wednesday 9th December 2015.

The Lloyd’s List Award series

recognises the industry’s successes,

setting a benchmark for excellence

while rewarding innovative ideas and

concepts that have pushed the

boundaries of what is possible.

Captain Haleem Ahmad Siddiqui receiving the award.

This year’s lifetime achievement

award goes Capt. Haleem, who has

been instrumental in the development

and growth of shipping and ports in


A former cadet in the late 1950’s he

worked through the ranks to become

shipmaster, and then after starting his

own businesses in 1971 went on to

become part of Pakistan’s efforts to

privatise the port and shipping industries.

From 1993 till 2003 he became a major

political figure and served as a federal

minister of communications, and a

minister of state for water and power.

Holding a large number of influential

posts within the industry, as well as a

growing list of professional

accreditations within the shipping, ship

masters and logistics industries and

is a respected philanthropist in his

home country, offering generous

support for schools for under

privileged children and hospitals.

Now, after 60 years and counting in

the shipping industry, Capt. Haleem

is chairman of one of Pakistan’s

largest and most widely known

businesses, the Marine Group of


PQA Plans Coal

Conveying System For

PIBT Terminal

Port Qasim Authority (PQA),

Ministry of Ports & Shipping

Government of Pakistan plans to

construct Coal Conveying System

from Pakistan International Bulk

Terminal (PIBT) to existing Railway

Network at Port Qasim, Karachi

Sindh. PQA sought applications for

pre qualification of contractor for

construction of work.

The scope of work includes

construction of coal stockyard,

supply & installation of belt conveyor

4.5 Km long approximately, rapid

load-out station, mechanical

equipment and other ancillary

buildings and infrastructure works

including water supply, fire fighting

power supply, surveillance system

and monitoring, workshop, storage


The project would take 12 months

to complete.

Trade Chronicle - January - February 2016 - Page # 24


Mobilink becomes First

Telco in the World to

Launch Facebook at


In a move to increase efficiency and

collaboration amongst employees

spread across the country and ensure

communication can become more

efficient, Mobilink has become the

first Telco in the world to launch

Facebook at Work, the business

version of Facebook that allows

companies to build more productive,

efficient and collaborative


The enterprise service shares a

similar look and feel to the personal

Facebook network but is completely

separate from the consumer

Facebook service. The service also

has built in enterprise-grade security

and administration tools. “As we

move towards digitalization,

Facebook at Work will serve as a

platform which will not only connect

our employees better but will also

serve as an informal platform for

information sharing. I am confident

that the use of Facebook at Work will

enhance our ability to communicate

more effectively and help develop a

better integrated Mobilink family,”

said Jeffrey Hedberg, President and

CEO - Mobilink.

Telecommunication News

PTCL declares 20

percent cash dividend

PTCL has announced its annual

financial results for the year ended

December 31, 2015 in a meeting

of PTCL Board of Directors held

at Islamabad. PTCL has declared

20 percent final cash dividend,

inclusive of 10 percent interim

dividend. PTCL earned revenues

of Rs 75.8 billion for the FY 2015.

Data revenues significantly

increased by 12 percent compared

with last year.

The company's profitability

continued to remain stable despite

competition, especially in the

broadband segment. Gross and net

profit of the company stood at Rs

22.0 billion and Rs 8.8 billion

respectively. PTCL group's

revenues for the year stood at Rs

118.6 billion.

PTCL cash flows remained healthy

and stable in FY 2015 due to

continuous efforts to optimise costs

as well as strong market position.

This impetus continued across all

business activities of PTCL

including the fixed and wireless

broadband and enterprise solutions.

Walid Irshaid, President & CEO

PTCL said, "Our robust results

again demonstrate the ability of our

diversified line of business to

perform to the expectations of our

shareholders." He further added,

"PTCL's performance during the

past year is a strong indicator of

our dynamic corporate direction, as

well as our customers' continued

satisfaction in company's products

and services".

Number of mobile phone

users soars to 128.042m:


The number of mobile phone users in

Pakistan reached 128.042 million at

the end of January 2016, after five

cellular companies added a combined

user base of 2.14 million customers

during the reported month, according

to data released by the Pakistan

Telecommunications Authority


Mobilink leads the charts with 36.97

million customers while Telenor is

closing in the gap with 35.39 million

subscribers. However, after planned

merger of Mobilink and Warid,

Mobilink will be able to widen the lead

with more than 47 million post-merger


Zong has 24.61 million customers at

the end of January 2016 while Ufone

stood with 20.26 million customers till

the time. Warid has a total of 10.79

million customers. However, the data

shows that the number of 3G/4G

users reached at 24.709 million by

January, 2016 compared to 23.165

million by December 2015, showing

a reasonable growth in modern

mobile broadband services with each

passing month.

The number of 4G (Zong) users

jumped from 282,701 subscribers in

December 2015 to 416,676

subscribers in January 2016.

According to the PTA, the number

of 3G users of Zong, Mobilink, Ufone

and Telenor reached 5,083,597,

7,648,548, 4,548,824 and 6,777,091

respectively by January 2016. Warid

LTE subscriber reached 235,239

during this period.

Trade Chronicle - January - February 2016 - Page # 25


Ufone bags two

prestigious CSR awards

Ufone received two awards in the 5th

Corporate Social Responsibility

Award selection. Impressed by

Ufone’s vision and implementation of

CSR activities, the panel of judges

unanimously voted to acknowledge

Ufone’s contributions in the

categories of “Innovation” and

“Employee Engagement.” This

award is the first and only registered

CSR Award of Pakistan.

Mr.Amir Pasha, Head of PR & CSR at Ufone receiving CSR award from Mr.

Younus Muhammad Bashir, President Karachi Chamber of Commerce & Industry

at the 5th CSR Conference & Awards.

The decision of the panel has

subsequently been ratified by the

executive board of The Professionals

Network (TPN) and Ethical Business

Update (EBU).

The Innovation Award was given to

the Ufone Emergency Alert System

(EAS). In view of the overall security

situation of the country, Ufone in

collaboration with the Punjab Police,

launched a single click EAS. The

Police Department can extend the

EAS to schools throughout Punjab for

enhanced security. The system is free

of cost and works on any cell phone

using Ufone SIMs. Schools are able

to register their Ufone numbers with

the Police Department and any alarm

generated through the number would

alert the Police providing details such

as the name of the school, the person

who initiated the alarm and location.

Mehmood Tareen, Founder & Chief

Executive, The Professionals

Network, said, “A stringent criteria

was followed in selecting the winners

of the awards as a panel of judges

studied the projects to ensure they

demonstrate a holistic application of

sustainability principles. The judges

also sought out practices and

initiatives that genuinely push the

boundaries and drove real change.

Hence, Ufone has received these

awards for implementing well thought

out CSR initiatives.”

Zong holds annual

business conference

Zong recently held its annual business

conference in Islamabad with

representations of middle and senior

management from all over Pakistan.

Zong’s CEO, Liu Dianfeng graced

the occasion as the chief guest with

opening remarks.

The main agenda of the conference

was to review the organization’s 2015

key performance achievements as

well as highlight their plan for 2016.

Liu stressed on adding more

investment in improving Zong core

network of 3G & 4G as well as its

human capability potential in the

Liu Dianfeng CEO of Zong along with management team at annual business


coming years to be able to enhance

the lifestyle of Pakistani people

through technology, innovation and


It is to be noted that Zong is the only

3G & 4G network operator in

Pakistan with the largest 3G & 4G

spectrum of 20MhZ combined

amongst all other operators.

The conference was conducted by

Zong’s Director Corporate Affairs

Maham Dard, followed by an

exhilarating award ceremony by

Human Resource Department to

appreciate the organization’s star


Trade Chronicle - January - February 2016 - Page # 26


Banking & Insurance News

President urges experts, Ulema to work out strategy

President Mamnoon Hussain addressing a seminar on “Islamic Banking in Pakistan: Prospects and challenges” Organized

by the Islamic Research Institute of International Islamic University in Islamabad on February 24, 2016.

President Mamnoon Hussain has

called upon the banking experts and

Ulema (religious leaders) to jointly

focus their research on finding a

workable strategy for promoting

Islamic banking in the country.

Addressing a national seminar on

"Islamic banking and finance:

Prospects and challenges" here at the

Islamic International University, the

President said the benefits of Islamic

financial should reach the common

man to end poverty.

The President said Islamic banking

had immense potential of growth in

Pakistan, adding that the subject

needed profound research by the

relevant experts. He said for being

Muslim citizens of this country, it was

obligatory to work for implementing

Islamic financial system.

The President said the Islamic banking

system was being given patronage at

the government-level. He said there

was a need to flourish the culture of

research in the country to explore the

horizons of knowledge, which he said

was a key to success for a nation.

The President said economics had

outclassed the importance of politics

in global scenario, and said with

research-based knowledge, a country

could achieve economic stability and


He said the government during the

two-and-a-half years had made

remarkable progress in stabilising the

economy which was also

acknowledged by the international

monetary rating organisations. The

President mentioned that corruption

had negatively impacted the very

fabric of society and emphasised on

waging a Jihad against this menace.

He pointed out that during tenures of

the past governments, no significant

development projects were carried out.

He mentioned that during his meeting

with Saudi King Salman bin Abdul

Aziz Al Saud, he proposed for opening

of a campus of Islamic International

University in Saudi Arabia. He said

the step would help Pakistani

expatriates continue their goals of

higher education.

Deputy Governor State Bank of

Pakistan Saeed Ahmed said

implementation of Islamic financial

system was important to ensure social

justice for the people through microfinance

to end poverty. He said at

present, five banks in the country

were entirely Islamic, one was a

subsidiary branch of a bank while 16

banks were offering both

conventional and Islamic systems to


About the challenges in the

implementation of Islamic financial

system, he mentioned lack of enabling

environment, research and qualified

human resource and increased

taxation on Islamic banks as

compared to their conventional

counterparts. Head of Dar-ul-Uloom

Karachi, Mufti Muhammad Rafi

Osmani, President IIU, Professor

Ahmed Yusuf Al Darvesh and Rector

Trade Chronicle - January - February 2016 - Page # 27


NBP records 51pc

growth in profit

NBP’s Board of Directors held a

meeting on February 19, 2016

National Bank of Pakistan achieved

profit of Rs. 33.2 billion in 2015 that

is an increase of 51 percent from

2014. This is a complete turnaround

from 2013 profit

of Rs.7.1 billion

(368 percent

increase). After

tax profit growth

was impacted by

Rs.2.3 billion

additional tax

charge due to last

year’s Federal

Budget changes.

However, despite

this additional

burden of

increase of tax of

Rs. 2.3 billion,

after tax profit is Rs. 19.2 billion which

is 28 percent higher than previous


These results were achieved through

an effective execution of strategy

which encompassed improving

deposits mix for higher net interest

income, portfolio optimisation and reprofiling,

cost controls, automation of

entire branch network, expansion of

footprint through ATMs and branch

network and focused strategy

towards recoveries against nonperforming


With this performance all key ratios

have improved significantly. For

example after tax return on equity

and assets stands as 17.0 percent and

1.2 percent respectively, key ratio of

cost to income is in top bracket at

0.48, an improvement from 0.55 of

last year.

Bank’s key ratios are also solid with

provision coverage at over 89 percent

and capital adequacy ratio at 17.6

percent. Testament to the abovestated

outstanding performance is the

fact that NBP has been recently

awarded “Bank of Year Award –

2015” by the prestigious “The

Bankers-UK”, a subsidiary of

Financial Times Group.

The bank made significant

infrastructural growth through adding

48 branches and making

technological advancements. During

the year 500+ new ATM points were

added and the entire branch network

has now been made functional on

Core Banking Application.

On YoY basis,

core net interest

income increased

by 17 percent

from Rs. 45.8

billion to Rs. 53.7

billion, while noninterest


increased by 15

percent from Rs.

30.4 billion to

Rs.35.0 billion in

2 0 1 5 .


expenses were

kept under control and increased

marginally by 5 percent. The bank is

aggressively endeavouring to

increase its market share. Deposits

are at Rs.1. 43 trillion, increasing by

16 percent in 2015 YoY, higher than

the sector growth and low cost CASA

deposits constituting 77 percent of the

domestic deposits. Total assets of the

bank have crossed Rs.1.7 trillion


NBP to expand PMYBL


National Bank of Pakistan (NBP)

commitment and resolve to the

success of PMYBL (Prime

Minister’s Youth Business Loan)

scheme is evident from the fact that

it has already disbursed

approximately Rs 6.8 Billion to 7,300

young entrepreneurs.

NBP reiterates its resolve to continue

to support this program and play its

role in building a strong

entrepreneurial culture in Pakistan for

eradicating unemployment in youth

and expanding and strengthening

country’s SME sector.

NBP over the last quarter has

revamped this scheme to include a

larger number of youth and

businesses in this scheme. Our

branches and marketing teams

continue to receive applications which

are in the process of being appraised

for approval and further expand this

scheme. NBP has always been at the

forefront in SME and agriculture

financing and stands committed to

greater financial inclusion and

growing its SME and PMYBL

portfolio for the youth of the country.

Trade Chronicle - January - February 2016 - Page # 28


BankIslami, FAW Motors

ink strategic alliance

BankIslami Pakistan Limited & Al-

Haj FAW Motors Pvt Limited signed

an agreement whereby both

BankIslami & FAW Motors would

mutually work together for the sales

of FAW vehicles through

BankIslami's Islami Auto Ijarah. This

alliance will also help customers to

get the financing of FAW vehicles

through BankIslami with competitive

offerings on security deposit and

Ijarah rentals.

EFU life announces

100% cash dividend 2015

EFU Life Assurance Ltd, the leading

private sector life insurance company

in Pakistan announced its financial

results for the year ended 31

December 2015as approved in the

meeting of the Board of Directors

held on 13February 2016. The

Company posted a profit after tax of

Rs 1.475 Billion for the year 2015with

earnings per share ofRs 14.75. The

Company declared a final cash

dividend of 70%, ie Rs 7 per share,

taking the total cash dividend payout

to 100%, ie Rs 10 per share for the year.

DGKCL investing

Rs1.26bn in Adamjee Ins.

D G Khan Cement Company Limited

(DGKCL) has decided to increase its

investment in Adamjee Insurance

Company by Rs 1.26 billion, said a

stock filing. The fresh investment will

be made through purchase of

Adamjee shares at the prevailing

stock market rate. The DGKCL

board has authorised the company’s

CEO and CFO to execute the

transaction as and when deemed

appropriate in the interest of the

company and its shareholders.

Keenu becomes first merchant payment service

provider brand in Pakistan

Wemsol Private Limited is set to

launch its payment network brand,

Keenu, at an event recently held at

a local hotel. Wemsol, a fullyowned

subsidiary of United Mobile,

is a service-oriented company that

was formed in 2011, with the idea

of delivering complete, end-to-end

electronic payment and enterprise

solutions tailored to customers’

needs. Ashraf Machiyara is the

Chairman of the company, while

Faysal Bank's Barkat Islamic Banking

becomes the first Islamic banking

division to offer Prime Minister's

Youth Business Programme

(PMYBP) under Shariah-compliant

modes of finance. The ceremony was

attended by the Deputy Governor of

the State Bank of Pakistan, P&CEO

Faysal Bank, Shariah Board

Members and the senior

management of the Bank.

Under this scheme, Faysal Bank

Barkat Islamic Banking will offer

Shariah compliant solutions such as

Murabaha, Diminishing Musharaka

and Ijarah to cater to the needs of

Ejaz Hassan, Saad Niazi, and Raja

Faisal Zaman are the CEO, COO,

and Director Technology,

respectively. The event marks the

launch of a brand which will change

the face of the retail industry in

Pakistan. Keenu offers a number of

payment solutions, while also

providing merchant servicing, all

under the same roof, with valueadditions

like none other in the


Faysal Bank's Barkat Islamic Banking

launches PMYBP

entrepreneurs / SMEs.

Speaking at the occasion, Deputy

Governor of the State Bank of

Pakistan, Saeed Ahmed, expressed

his appreciation towards Faysal

Bank for playing its due role in

providing financial access to the

youth through the PMYBP for

starting their own business.

Addressing the gathering, Nauman

Ansari, President & Chief Executive

Officer of Faysal Bank Limited said,

"It is a matter of privilege for Faysal

Bank Barkat Islamic Banking to

become the first Islamic Banking

division in the industry to launch the

Trade Chronicle - January - February 2016 - Page # 29


Habib Bank earns

Rs35.10 billion in 2015

Habib Bank Limited’s consolidated

net profit increased 11.5 percent to

Rs35.10 billion in the year ended

December 31, 2015 on outstanding

gains booked on sale of securities and

brokerage income, analysts said on


The bank booked the consolidated net

profit of Rs31.48 billion in the

previous 2014. Earnings per share

remained at Rs23.93 in the period

under review year as compared to

Rs21.56 last year, said a notice sent

to the Pakistan Stock Exchange.

The bank’s board recommended the

final cash dividend of Rs3.5/share for

shareholders whose name will appear

in the register of members on March

21, 2016. This is in addition to the

interim dividend already paid at


The gain on sales of securities soared

eight-fold to Rs11.04 billion in the year

under review from Rs1.40 billion last

year. The bank's income on account

Askari Bank posts

impressive results for


Askari Bank announced annual

financial results for 2015 with a strong

bottom line growth well above the

market expectations. Profit before

tax at Rs 8.43 billion is showing an

impressive growth of 46 percent and

profit after tax of Rs 5.04 billion is

reflecting a growth of 26 percent,

resulting in Earnings per share (EPS)

of Rs 4.00 against Rs 3.19 for the

last year.

The Bank's total asset base has

of fee, commission and brokerage

income surged to Rs17.08 billion, up

22 percent over the previous year.

The bank’s provisions and write-off

surged four-fold to Rs4.50 billion in

2015 from Rs1.23 billion in 2014. The

net interest income, after adjustment

of provisions and bad debt, increased

nine percent to Rs73.66 billion. The

non-interest income rose 56 percent

to Rs36.58 billion on account of robust

growth in gains of securities and

reached Rs 536 billion, registering a

growth of 20 percent during the year.

As of December 31, 2015, net

advances increased by 17 percent to

Rs 200 billion, while investments grew

significantly by 23 percent. Net

interest income increased by an

impressive 25 percent despite an

environment of declining spreads in

market. This appears to have been

contributed by a 19 percent growth

in current accounts. Total deposits

grew by 12 percent to Rs 433 billion.

Non-fund income of the Bank also

grew significantly by 23 percent over

the same period last year mainly

contributed by a 21 percent increase

brokerage income. The non-interest

income stood at Rs23.42 billion in


Besides, a jump of 72 percent in

dividend income to Rs1.54 billion from

Rs897.05 billion also helped in pushing

up the non-interest income in the year

under review. Its share of profit of

associates and joint ventures

remained steady at Rs3.39 billion as

compared to Rs3.26 billion.

Income from dealing in foreign

currencies dropped to Rs2.74 billion

from Rs2.84 billion. Other income

came down to Rs743.22 million from

Rs971.81 billion.

The bank earned consolidated net

profit of Rs8.4 billion (earnings per

share of Rs5.7) in the last quarter as

compared to Rs9.9 billion (earnings

per share of Rs6.8) in the same

quarter last year. Umair Naseer at

Topline Securities said earnings of

HBL were down 15 percent year-onyear

basis in the quarter under review,

driven by non-interest expense that

went up 18 percent to Rs12.7 billion

amid increased focus on technology,

brand and human resource.

in fees and commission and gains

from fixed income bonds.

Administrative expenses are reported

to have increased by only 9 percent

despite aggressive expansion of

branch network pursued by the Bank.

The cost-to-income ratio has

improved to 56 percent from 64

percent for last year. Asset quality

reflected by NPLs to gross advances

ratio improved to 14 percent,

compared to 16 percent at the end of

last year. The Bank has announced a

final cash dividend of Rs 1.25 per

share (12.5 percent) for the year

ended December 31, 2015, thus

making the total payout for the year

to Rs 2.25 (22.50 percent).

Trade Chronicle - January - February 2016 - Page # 31


MCB Bank earns

Rs25.551bn profit after


MCB Bank Ltd receives Award for SAFA Best

Presented Annual Report 2014 at

SAFA conference 2016

The Board of Directors of MCB

Bank Limited, met under the

Chairmanship of Mian Mohammad

Mansha, on February 09, 2016 to

review the performance of the Bank

and approve the financial statements

for the year ended December 31,


MCB Bank reported a Profit Before

Tax (PBT) of Rs.42.333 billion and a

Profit After Tax (PAT) of Rs. 25.551

billion with an increase of 15 percent

and 5 percent over 2014, respectively.

This was primarily contributed by 13

percent increase in Net Markup

Income and 32 percent increase in

Non-Markup Income. Net Markup

Income of the Bank was reported at

Rs. 49.322 billion whereas Non-

Markup Income increased to

Rs.17.115 billion. The increase in

Non-Markup Income was due to

capital gains which increased by Rs.

2.780 billion and fee & commission

income that increased by Rs. 1.158

billion over the last year.

On the gross markup income side, the

Bank recorded an increase of Rs.

3.263 billion with major contribution

from investments income. This

growth in investment income was

achieved through prudent placements

and timely shift in concentration levels

MCB Bank declared best

bank in Pakistan

MCB Bank Ltd, Pakistan's leading

private sector bank, was determined

to be Pakistan's best bank in terms

of deposit franchise (CASA 92

percent), net interest margins (5.41

percent), low default rate (43 percent)

MCB Bank Ltd, Pakistan’s leading

private sector bank, was awarded

the SAFA Best Presented Annual

Report 2014 in the category of

Private Sector Banks at the SAFA

Conference 2016. The Award was

presented to President MCB, Mr.

of investments.

On the interest expense side, the Bank

registered a decrease of Rs. 2.546

billion over last year, which was

commensurate with the decreasing

interest rate environment.

The total asset base of MCB Bank

Limited was reported at Rs. 1.017

and ROA (2.6 percent). The analysis

was conducted by leading global

financial services company, Credit

Suisse and shared in their Asia Pacific

Financials Strategy sector review

released in January 2016.

In its analysis of MCB Bank Ltd's

performance, the report mentioned

that the bank had the best saving

Imran Maqbool by the Federal

Minister for Finance Mr.

Mohammad Ishaq Dar in recognition

of the bank’s excellence in financial

reporting, management best

practices and corporate governance


trillion signaling a healthy growth of

9 percent over December 2014. On

the liabilities side, Bank deposits

increased by 3% to Rs. 708.091 billion

as on December 31, 2015. On the

deposits mix front, current deposits

increased by 10% to Rs. 259.818

billion improving the CASA ratio to

93 percent as compared to 91 percent

as at December 2014.

deposit franchise in Asia with

demand deposits and saving deposits

constituting 38 percent and 54 percent

of total deposits, respectively. MCB

Bank Ltd's net interest margin had

one of the highest sensitivity to interest

rates among Pakistani banks, and

should benefit the most from an

interest rate rise.

Trade Chronicle - January - February 2016 - Page # 32


EFU Life, BMA Capital

enter into alliance

EFU Life Assurance Ltd and BMA

Capital entered into a strategic

alliance to promote EFU Life financial

planning products to BMA customers.

An agreement was signed recently

in Karachi between the two

organisations. Speaking on the

occasion, Taher G. Sachak, CEO &

MD EFU Life said "We are delighted

to partner with BMA Capital and are

pleased to offer our high value

financial planning solutions to their


BMA is a trusted name in the

investment advisory services industry

and we are confident that inclusion

of our products in their menu will add

significant value to the customers'

United Bank’s profit

surges12pc in 2015

The United Bank Limited’s

consolidated net profit surged 12

percent to Rs27 billion in the year

ended December 31, 2015 on the back

of returns on investment in long-term

government papers and gains on sale

of securities, analysts said on recently.

The bank reported a net profit of

Rs24.02 billion in the previous year.

This translated into earnings per share

of Rs21.36 in 2015 as compared to

Rs19.32 in 2014, it said in a notice to

the Pakistan Stock Exchange.

The bank’s board recommended final

cash dividend of Rs4/share for

shareholders whose name will appear

in the register of members on March

16, 2016. This is in addition to interim

dividend already paid at Rs9/share.

overall financial planning universe."

Nadir Rahman, CEO BMA Capital,

echoing Sachak's sentiments, added

"Financial planning and financial

inclusion remain underserved in

Pakistan. At BMA, we strive to

Bank’s net interest income after

provision increased 19% to Rs 54.03

billion from Rs 45.57 billion last


Jehanzaib Zafar at BMA Capital

said the growth in the net interest

income was led by 13 percent surge

in interest earned on account of

higher yielding Pakistan Investment

Bond and muted growth in interest

expense as cost of funding eased

on the back of lower average

discount rate of 7.5 percent.

Non-interest income posted a growth

of11 percent to Rs23.68 billion

primarily on account of higher gains

realised on sales of securities, up 55

percent to Rs3.19 billion in the year

under review.

On the flipside, operating cost

reported a jump of seven percent to

provide diverse investment options to

the customer base at large. We are

extremely pleased to work with EFU

Life, one of the oldest and most

respected names in the life insurance


Rs35.13 billion from Rs32.71 billion

while tax expense also increased 42

percent to 16.43 billion.

The bank earned net profit of Rs6.3

billion (earnings per share at Rs5.2)

in the last quarter as against Rs6.5

billion (earnings per share at Rs5.4)

in the corresponding period last year.

Umair Naseer at Topline Securities

said significant investment in Pakistan

Investment Bonds and deposit growth

in the quarter supported 14 percent

growth in net interest income to

Rs15.2 billion.

Despite double digit growth in the

income, earnings were down four

percent in the quarter due to higher

provisioning expense. "Out of the total

provisioning expense of Rs1.2 billion,

UBL booked provisioning expense of

Rs634 million against diminution in

value of investments," Naseer said.

Trade Chronicle - January - February 2016 - Page # 33


State Life signs

agreement with Silkbank

State Life Insurance Corporation of

Pakistan (SLIC) and Silkbank signed

a Bancassurance Distribution

agreement. Under this agreement,

SLIC Bancassurance Products will

be offered by Silkbank to existing and

potential customers through the

Bank's widespread distribution


Offering Bancassurance Products in

line with SLIC's commitment to

continuous improvement and product

innovation, it also aligns with

Silkbank's strategic intent to be a high

performance Bank admired for

innovation, customer service and

inspired employees. The agreement

was signed by Gian Chand

Kewalramani, General Manager

Soneri Bank's profit after

tax grows 39.87 percent

The Board of Directors of Soneri

Bank Limited met in Lahore under

the Chairmanship of Alauddin

Feerasta, on February 11, to review

the performance of the Bank and

approved the financial statements for

the year ended December 31, 2015.

The Bank has posted a profit after

tax of Rs 2.21 billion which is 39.87

percent higher than last year. This

translates into earnings per share of

Rs 2.01 (31 December 2014: Rs


Profit before tax stands at Rs 3.59

billion being 47.25 percent higher than

last year. The Board of Directors has

also announced cash dividend for the

year ended December 31, 2015 @

12.5 percent ie Rs 1.25 per share. The

Bank has outperformed the market

Bancassurance SLIC, Asif Azeem,

Head of Bancassurance Silkbank and

Mohammad Naseem Rawther, COO

GBA Services (Pvt) Limited.

This alliance between SLIC and

Silkbank provides customers with

protection that ensures their financial

in deposit growth and also shown

reinforcement in all core areas of the

Bank's operations. Deposits grew by

13.46 percent over 2014 and net

advances recorded a growth of 3.74

percent over 2014.

Bank also adequately meets the SBP

Basel III requirements and is well

positioned to meet its growth plans.

Analysing the reasons for successful

performance in 2015, Bank's sources

explain that the increase in gross

revenue was registered mainly on

account of growth in earning assets,

which increased bank net markup

income. Furthermore, bank delivered

well on its strategy to mobilise low

cost deposits and invest in high

yielding bonds. This provided the

offset against pressure on spreads due

to low rates. The Bank continues to

follow a prudent policy for making

provisions for the infected loan

portfolio in line with regulatory

requirements and is confident that

security. With Silkbank as its new

Bancassurance partner, State Life

Insurance Corporation looks forward

to a significant expansion of its

business which will benefit from a

wider, strategically-located

distribution network across the


actions taken in 2015 would further

help in controlling future infections

and securing upcoming recoveries.

During the year, the Bank issued

Listed Term Finance Certificates

(TFC-2) worth Rs 3.00 billion. The

issue was successfully closed and

was oversubscribed by Rs 810 million

(1.3 times). Issue was structured as

Pre-IPO subscription of Rs 2.25

billion and IPO of Rs 0.75 billion

Soneri Bank has a unique market

position in trade-finance and

transactions banking services and

boasts a loyal and satisfied client-base

in all its 266 branches all over the

country. The Bank is committed to

meet the increasing expectations of

its customers and continue to provide

them par-excellence services, for

which the bank has been investing

prudently in information technology,

human resources, marketing and


Trade Chronicle - January - February 2016 - Page # 34


Meezan Bank earns

Rs5.023bn PAT in 2015

The Board of Directors of Meezan

Bank in its meeting held in Karachi

approved the financial statements of

the bank for the year ended

December 31, 2015. The meeting

was presided by Riyadh S A A

Edrees, the newly elected Chairman

of the Board.

The bank achieved significant growth

in all business segments during 2015

and earned profit-after-tax of Rs

5.023 billion compared to Rs 4.570

billion recorded last year, a growth of

10 percent. The Earnings Per Share

(EPS) increased to Rs 5.01 from Rs


The Board recommended distribution

of 12.5 percent final cash dividend for

the year 2015. This declaration,

Faysal Bank’s annual

profit jumps 71 percent

Faysal Bank Limited’s (FABL) net

profit jumped 71 percent to Rs4.22

billion in the year ended

December 31, 2015 on the

back of lower provisions

and write-offs and higher

gains booked on sales of

securities, analysts said on


A notice issued to the

Pakistan Stock Exchange

said the bank earned

Rs2.47 billion in 2014. The

bank’s earnings per share

was recorded at Rs3.52 in

2015 as compared to

Rs2.06 a year ago.

The bank’s board recommended final

together with the earlier cash dividend

of 17.5 percent paid in 2015, brings

the total payout for the year to 30%

and maintains the bank’s unbroken

payout record since its date of listing

on the Stock Exchange.

The bank’s deposits increased by 24

percent to Rs 472 billion in 2015 while

its financing portfolio grew by 18

percent to Rs 208 billion. The bank’s

growth in both deposits and financings

has far exceeded that of the industry

which was 11.5 percent and 7 percent

respectively. Furthermore, the nonfunded

business, which primarily

includes imports and exports crossed

Rs 460 billion.

The bank added 123 branches during

the year, the largest number of

branches added in a year in its history.

With a network of 551 branches in

143 cities, Meezan Bank now stands

as the 7th largest bank in Pakistan in

Total provisions and write-offs

amounted to Rs1.39 billion in 2015,

which was 41 percent lower than

Rs2.35 billion in last year.

The gain on sales of securities (net)

surged four-fold to Rs1.73 billion in

terms of branch network among both

conventional and Islamic banks. The

bank has the distinction of being the

fastest growing bank in the industry.

A major milestone achieved during

the year was the launch of the firstever

Islamic Branchless Banking in

Pakistan, Meezan Upaisa, to expand

Islamic banking footprint to people

who may not otherwise have access

to formal banking services.

Meezan Upaisa is available at the

counters of thousands of agents in

Pakistan and enables customers to

send or receive money, pay utility bills

and top-up their mobile.

This initiative was launched in

collaboration with Ufone, a leading

mobile operator in Pakistan and

Meezan Bank. Ufone is a wholly

owned subsidiary of PTCL, which is

part of the Etisalat group UAE.

2015 from Rs460.47 million in 2014.

Amreen Soorani at JS Global

Research said key drivers of the

robust earnings were 27 percent yearon-year

(YoY) jump in non-interest

income, 41 percent YoY

decline in provisions and

nine percent YoY drop in

operating expenses.

Soorani said FABL’s

cost-to-income ratio

clocked in at 57 percent

in 2015 as against 68

percent in 2014, with

major contribution from

non-core income.

The interest income,

after adjustment of

provisions, surged nine

percent to Rs12.56

billion in 2015. The non-interest

Trade Chronicle - January - February 2016 - Page # 35


Lucky Cement wins

Corporate Excellence


Pakistan's leading cement

manufacturer Lucky Cement

Limited has won the 31st

Corporate Excellence Award in the

cement category, bestowed by the

Management Association of

Pakistan (MAP).

The award was received by Amin

Ganny, Chief Operating Officer,

Lucky Cement Limited. "This

award is an expression of our

commitment to best management

and governance practices. Winning

it second year in a row not only

gives us pride but also strengthens

our resolve to continue responsible

growth," said the Chief Operating


The award has a prudent criteria

divided in five phases. In the first

phase only those public-listed

companies are shortlisted that have

disbursed 45% aggregate dividend

in last three years.

It pays to

advertise in

Trade Chronicle

note our new no.


Cement Industry

Cement sector remains

buoyant in domestic


During the first half of current fiscal,

cement sector continued to remain

buoyant in domestic markets while

exports remained under severe

pressure thereby affecting the total

growth in cement despatches.

Despatches during the six months

ended on 31st December, 2015

increased by 6.38 percent to 18.21

million tons compared with despatches

of 17.12 million tons during the

corresponding period of 2014.

"It is to be noted that this growth is mainly

led by domestic consumption which

increased by a healthy 16.34 percent

to 15.2 million tons during July to

December 2015 compared to 13.06

million tons during July to December

2014" said a spokesman of All Pakistan

Cement Manufacturers Association.

He added that during the same period,

country's exports declined by a massive

25.68 percent to 3.01 million tons

compared to 4.06 million tons during July

to December, 2014.

Further analysis of despatches

revealed that the factories located in

north witnessed 15.32 percent

increase in domestic consumption by

selling 12.63 million tons in domestic

markets from July to December 2015

against 10.96 million tons during same

period of last year. The South based

factories witnessed even more

growth in domestic dispatches by

supplying 2.56 million tons of cement

to local markets from July to

December 2015 against 2.10 million

tons during same period of last year

showing growth of 21.63 percent. In

exports, the North based mills

registered decline of 25.09 percent as

exports were restricted to 1.9 million

tons in first six months of current

fiscal compared to 2.54 million tons

during same period last fiscal. The

South based factories also suffered

decline of 26.67% in exports as the

quantities dropped to 1.11 million tons

duly July to December of current

fiscal compared to 1.52 million Tons

during same period of last fiscal. The

industry despatched 3.44 million tons

of cement in December 2015

compared with 3.11 million tons

despatched in December 2014

showing growth of 10.53%. The local

despatches were 2.98 million tons

during December 2015 against 2.5

million tons during December 2014

depicting increase of 19.28%. The

exports despatches showed decline

by 25.39% as against 610,000 tons

exports during December 2014, the

industry exported 455,000 tons during

December 2015.

He added that the Association has

time and again drawn government's

attention towards illegal imports of

under invoiced cement from Iran.

The industry has urged that a proper

vigilance and accountability system

needs to be put in place to stop

cement smuggling into the country.

Government should also impose 20%

Regulatory Duty for import of cement

in addition to custom duty in order to

protect local industry. The spokesman

further mentioned that the

government should also give due

attention to reduce energy costs

including removal of GIDC imposed

on gas, reduction of custom duty on

coal to 0% and additional incentive

of 5% on export of cement by sea in

order to reduce the overall cost of

operations to make the Pakistani

cement industry competitive globally.

Trade Chronicle - January - February 2016 - Page # 36


PIA to be converted into

public limited company,

NA told

The government has once again

said that the Pakistan

International Airlines (PIA)

would not be privatised, rather

it was being converted into a

public limited company through

legislation in parliament.

Winding up the debate on a

motion regarding imposition of

the Pakistan Essential Services

(Maintenance) Act in the

National Assembly, Minister for

Climate Change Zahid Hamid

said that in the past the same act had

been invoked starting from the first

tenure of the incumbent prime

minister. He said the act was also

Aviation & Hotel News

imposed during the tenure of former

prime ministers Benazir Bhutto,

Yousuf Raza Gilani and four times

during the Musharraf government.

The minister told the House that the

national flag carrier suffered a loss

of Rs4.31 billion in different heads

due to the strike. “It had been

promised by the prime minister,

finance minister and chairman of the

Privatisation Commission that the PIA

will not be privatised and it will

continue to act as the national flag

carrier,” he said.

He said a statuary

guarantee was given in

the bill that no employee

of the airline would be

laid off and they would

continue to receive the

same remunerations. He

said it was also aimed to

upgrade the airline’s

operation and its

financial position, adding

the law would bring more

transparency, accountability and

enhance the image of the airline.

Etihad Airways

announces global sale in


Etihad Airways, the national airline

of the United Arab Emirates, is

offering travellers from Pakistan

fantastic savings in its five-day

Global Sale starting from January

26, 2016.

From key gateways of Karachi,

Lahore and Islamabad, guests

travelling in Business and Economy

Class can choose from a wide

choice of destinations across

Europe, Middle East, Africa, North

America, Asia and Australia.

Flying via the airline’s Abu Dhabi

hub with connections as little as two

hours, guests can avail the special

offers to popular global cities

including Los Angeles, New York,

Frankfurt, London, Istanbul, Munich,

Rome, Abu Dubai and Sydney.

Business Class return fares to Los

Angeles start at PKR 200,970 and

Frankfurt at PKR 150,720 with a

bonus offer of triple Etihad Guest

Miles. In Economy Class, lead-in

fares to Istanbul start at PKR 45,060

and London at PK 61,260 with bonus

double Etihad Guest Miles also given.

Travellers to the United States have

the additional benefit of clearing US

Immigration and Customs at the

unique US Pre-Clearance facilities at

Abu Dhabi International Airport

during their transit.

Ahmed Zahoor, Etihad Airways’

Country Manager Pakistan, said:

“This is an exciting opportunity for

travellers from our gateway cities in

Pakistan looking to travel to diverse

destinations around the world on

Etihad Airways’ extensive network,

enabling them to take advantage of

great fares and enjoy a world-class

travel experience on board our

modern fleet of aircraft.”

Trade Chronicle - January - February 2016 - Page # 37


Avari Towers Hotel

welcomes Chef Imran Ali

khan as Executive Chef

An iconic Hotel in the centre of city,

Avari Towers Hotel is delighted that

Chef Imran Ali Khan has joined as

Executive Chef. Possessed by an

incredible mixture of experience,

education, and foresight, Imran has

worked with Hotels such as

InterContinental Dubai and Marriott

Hotels. Imran hold s a Bachelor’s

degree and specializes in the area of

Hospitality, Culinary, Restaurant

management, Sanitation and hygiene.

Yahya Polani nominated

as FPCCI body chief

Polani Group MD and Former

Chairman, Travel Agent Association

of Pakistan (TAAP) Yahya Polani has

been nominated as chairman of the

Federation of Pakistan Chambers of

Commerce and Industry (FPCCI)

Committee on Aviation for 2016 by

FPCCI President Abdul Rauf Alam.

Polani has many times served as

chairman of FPCCI Aviation and Hajj

and Umrah committees.

Pearl Continental to

invest Rs1.6bln for

business expansion

Pearl Continental, Pakistan’s

leading hospitality industry player,

has decided to initially invest Rs1.6

billion to expand its business in the

country’s industrial hub as it is

expecting an increase in its hotel’s

occupancy rate, its senior official

said recently.

“The company has decided to

acquire a property at a prime

location in Karachi against the total

purchase consideration of

approximately Rs1.6 billion for the

business expansion,” said Mansoor

Khan, company secretary at

Pakistan Services Limited, the

owner of Pearl-Continental Hotels

and Resorts in the country, in a

notice issued to the Pakistan Stock

Cathay Pacific releases

combined traffic figures

for January 2016

Cathay Pacific Airways today

released combined Cathay Pacific

and Dragonair traffic figures for

January 2016 that show a doubledigit

increase in the number of

passengers carried compared to

the same month in 2015, but only

a marginal rise in the volume of

cargo and mail uplifted.

Cathay Pacific and Dragonair

carried a total of 2,897,890

passengers last month – an

increase of 10.9% compared to

January 2015. The passenger load

factor grew by 3.3 percentage

points to 86.0% while capacity,

measured in available seat

kilometres (ASKs), grew by 5.9%.

Exchange recently.

The Pakistan Pearl-Continental

Hotels and Resorts (PC Hotel) will

build another hotel in Karachi city,

where law and order situation has

improved over the last one year.

“The visiting international or

domestic businessmen and tourists

usually stay at our hotels,” he said.

“Improvement in the law and order

has helped us in attracting more


"In the second phase, we will

prepare a feasibility report for the

construction,” he added. “It is premature

to share a timeline about

when the project will be launched.”

The local hotel chain is already

engaged in construction of two fivestar

hotels in the country. One is in

Multan and the other in Mirpur of

Azad Kashmir.

Air Arabia profit slips six

percent in 2015

Sharjah-based budget carrier Air

Arabia said recently 2015 net profit

fell six percent to 531 million dirhams

($144.69 million) although turnover

rose slightly. The Middle East''s first

and largest low-cost airline said its

turnover was 3.8 billion dirhams

($1.04 billion) in 2015, three percent

up on the previous year, while

passenger numbers rose 12 percent

to 7.6 million. In the fourth quarter,

net profit was 13 percent lower than

in 2014, standing at 59 million dirhams

($16.08 million). "The impact of low

oil prices continues to have its effect

on the wider global economy, while

pressure on yields and geo-political

uncertainty continued to weigh on the

aviation industry," Air Arabia chairman

Sheikh Abdullah bin Mohammad al-

Thani said in a statement.

Trade Chronicle - January - February 2016 - Page # 38

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