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Trade Chronicle July & August 2016

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Vol. 63 Issue Nos. 07 & 08 <strong>July</strong>-<strong>August</strong> <strong>2016</strong> Rs.200/-<br />

<strong>Trade</strong> <strong>Chronicle</strong><br />

PAKISTAN'S LEADING MONTHLY MAGAZINE OF COMMERCE, INDUSTRY & PUBLIC AFFAIRS<br />

Circulation Audited by<br />

ABC<br />

CONTENTS<br />

Founded by:<br />

Late Abdul Rauf Siddiqi<br />

Editor:<br />

ABDUL RAB SIDDIQI<br />

Special Feature's Editor:<br />

ABDUL RAFAY SIDDIQI<br />

Manager:<br />

Shoukat Hayat<br />

<br />

<br />

<br />

EDITORIAL<br />

The Independence Day - Revitalizes partiotism<br />

Export dwindel - a matter of concern<br />

Shifting of TDAP Head Office from Karachi<br />

ARTICLES & FEATURES<br />

Editorial & Business Office:<br />

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Publisher:<br />

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<strong>Chronicle</strong> Printers<br />

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<br />

Independence Day<br />

Pakistan’s future lies in a strong democracy<br />

Wazir Mansion: A nation’s treasure<br />

By: Zarina Patel<br />

Vision 2025: An economic long march<br />

By: Ahsan Iqbal Minister of Planning, Development & Reform<br />

Extremism and terrorism are great hurdles in the way of<br />

Pakistani society’s reformation<br />

Plasti Pac & Iftech-Pakistan-<strong>2016</strong>: unveils the latest<br />

technologies in lahore<br />

Pakistan GDP touches 4.7 growth in FY 16<br />

<br />

<br />

PNSC shows outstanding performance<br />

A review of Pakistan leather industery<br />

REGULAR FEATURES<br />

Ports and Shipping<br />

Leather Industry<br />

Cement Industry<br />

Fertilizer & Petrochemical Industries<br />

People Events<br />

Banking & Insurance News<br />

Telecommunication News<br />

Travel World<br />

TRADE CHRONICLE - <strong>July</strong>~Aug <strong>2016</strong> - Page # 03


TRADE CHRONICLE<br />

We begin with the name of Allah the Magnificient<br />

From<br />

Editor's<br />

desk<br />

ABDUL RAB SIDDIQI<br />

The Independence Day – Revitalizes patriotism<br />

Pakistani nation celebrated Independence Day on 14 <strong>August</strong> with<br />

great zeal and traditional fervor by paying tributes to the national<br />

heroes for their sacrifices and pledging to work for the country’s<br />

prosperity. It commemorates the day when Pakistan achieved<br />

independence and was declared a sovereign nation following the<br />

end of the British rule in 1947 in subcontinent. It came into<br />

existence as a result of the Pakistan Movement which aimed for<br />

the creation of an independent Muslim state by division of the<br />

north-western regions of South Asia. The movement was led by<br />

the All-India Muslim League under the leadership of Muhammad<br />

Ali Jinnah. In the Islamic calendar, the day of independence<br />

coincided with Ramadan 27, the eve of which, being Laylat al-<br />

Qadr, is regarded as sacred by Muslims.<br />

People across the country offered special prayers for the peace,<br />

prosperity and solidarity of the country while different functions<br />

and seminars organized by government and other institutions<br />

were part of the celebrations.<br />

Our history has mixed feeling of joy, happiness and losses. We<br />

fought bravely four wars with India, including one undeclared<br />

war, and many border skirmishes and military stand-offs. The<br />

Kashmir issue has been the main cause, whether direct or indirect,<br />

of all major conflicts between the two countries with the exception<br />

of the Indo-Pakistani War of 1971 where conflict originated due<br />

to turmoil in erstwhile East Pakistan (now Bangladesh). We have<br />

lost East Pakistan, reason better known to everyone but we have<br />

not learnt from our mistakes. The government has recently<br />

invited India to resolve the Kashmir issue but India seems to be<br />

reluctant and does not want peace in the region. Similarly, our<br />

relations with Afghanistan are apparently affected due to ongoing<br />

war on terrorism. The Kabul government should not forget the<br />

role of Pakistan in resorting its sovereignty during Russian<br />

invasion.<br />

We have achieved a lot of progress steadily and slowly on economic<br />

front but yet to gain full political stability in Balochistan province.<br />

This was caused due to foreign interfarence. However, the China-<br />

Pakistan Economic Corridor (CPEC) was in vogue and a rare<br />

period of smooth civil-military relations appeared to have emerged.<br />

On completion, one hope, this will led to country a new height<br />

of prosperity with harmony in all provinces.<br />

To overcome terrorism in our country, Pakistan army after<br />

successful impletion of Operation Zarb-e-Azb has launched its<br />

first combing operations in Punjab targeting the banned Tehreeki-Taliban<br />

Pakistan’s splinter group Jamaatul Ahrar. There is<br />

strong need for implementation of the National Action Plan<br />

against terrorism.<br />

We are in the phase of a slow but sure economic recovery, political<br />

opposition is weak but loud, and political competition will generate<br />

TRADE CHRONICLE - <strong>July</strong>~Aug <strong>2016</strong> - Page # 04


TRADE CHRONICLE<br />

accountability, and despite all<br />

odds, the whole nation is<br />

wearing green, waving flags, and<br />

praying for Pakistan’s bright<br />

future.<br />

Going forward, all political<br />

parties should strengthen<br />

hands of the sitting<br />

government, despite of their<br />

differences for the prosperity<br />

of every Pakistani. There<br />

should be a speedy justice, and<br />

provision of education and<br />

health facilities for all at an<br />

affordable price. No one should<br />

be superior to another. There<br />

should be no VIP culture and<br />

discrimination among people.<br />

Crime rate in Pakistan has<br />

been quite high, with<br />

corruption, stealing,<br />

kidnapping on the rise – these<br />

nonsense may be eradicated.<br />

Pakistan has so much potential<br />

as it is endowed with<br />

magnificent landscapes, rich<br />

minerals and natural resources.<br />

It can easily become one of the<br />

most developed countries in<br />

the world. Our political<br />

leadership should change their<br />

priorities and if things like<br />

coalmines, oil fields, and<br />

tourism, etc, are developed<br />

properly, the economy of<br />

Pakistan will improve greatly.<br />

In the end, we must say it is<br />

the duty of all Pakistanis to<br />

pay respect to the national flag<br />

throughout the year and not<br />

just on <strong>August</strong> 14. We should<br />

avoid aerial firing on this<br />

occasion as it cause loss of life.<br />

Exports dwindle – a matter of concern<br />

Pakistan’s total exports during<br />

the last financial year 2015-16<br />

(<strong>July</strong>- June) dwindled to US<br />

$20.8bn from $23.7bn in 2014-<br />

15. Or $4.7 billion less than the<br />

target of $25.5 billion set in<br />

the Strategic <strong>Trade</strong> Policy<br />

Framework (STPF) 2015-18.<br />

According to some reports,<br />

United Nations Industrial<br />

Development Organisation<br />

(UNIDO) has given five reasons<br />

for the decline in Pakistani<br />

exports including global price<br />

development, persistent power<br />

shortages, weak investment<br />

growth, narrow export base and<br />

poor infrastructure while the<br />

IMF has attributed the fall in<br />

exports to global commodity<br />

crisis, power shortages, business<br />

climate, external demand and<br />

exchange rate appreciation.<br />

Buying houses had also<br />

migrated to Bangladesh due to<br />

security situation in Pakistan.<br />

In term of year to year basis<br />

the decline in export stood at<br />

the 12.1 percent, which is<br />

unprecedented in the recent<br />

history of country exports and<br />

needs immediate attention of<br />

the government and all<br />

stakeholders to sit together for<br />

candid analysis of the export<br />

sector and to take affective<br />

measure to arrest decline as<br />

Brexit has also created new<br />

challenges for Pakistan,<br />

especially with regard to GSPplus<br />

status.<br />

All leading chambers have<br />

shown great concern over the<br />

falling exports of the country<br />

and requested various measures<br />

for increase in export. They<br />

have suggested government to<br />

first revise export target of $35<br />

billion projected under the<br />

Strategic <strong>Trade</strong> Policy<br />

Framework (STPF) 2015-18 in<br />

view of change scenario<br />

internationally.<br />

A strong submission is to<br />

devalue the rupee to facilitate<br />

exporters and argued that with<br />

the depreciation of euro and<br />

Pound Sterling, exporters would<br />

face substantial financial losses.<br />

In view of the strong<br />

fluctuations in European<br />

currencies, Pakistan also needs<br />

to adjust the Pak rupee<br />

accordingly to improve<br />

competitiveness.<br />

The government has started<br />

refund of sales tax to exporters,<br />

and hopefully it will overcome<br />

liquidity crunch and propel<br />

exports.<br />

The Strategic <strong>Trade</strong> Policy<br />

Framework 2015-18 has<br />

already identified products,<br />

markets and market-linked<br />

products, to be focussed, which<br />

can help turn around exports<br />

in the short term; only an<br />

expedited operationalisation<br />

of the strategy is needed.<br />

It is good to note that the<br />

commerce ministry has<br />

decided to hold consultative<br />

seminars in the country’s<br />

exports hubs to implement the<br />

Strategic <strong>Trade</strong> Policy<br />

Framework (STPF) for 2015-<br />

18, envisaging the exports of<br />

$35 billion till the end of<br />

tenure of Nawaz Sharif-led<br />

government. We support the<br />

experts view that exports<br />

should be diversified and major<br />

structural reforms may be<br />

introduced.<br />

The long-term strategy entails<br />

structural reforms of the entire<br />

export sector — including high<br />

tech and innovative products<br />

(e.g. engineering and<br />

pharmaceutical) in the product<br />

mix; value added exports<br />

substituting commodities;<br />

quality enhancement; value<br />

creation through designing and<br />

branding replacing private<br />

labelling; and, market<br />

diversification towards<br />

unexplored markets (e.g. South<br />

TRADE CHRONICLE - <strong>July</strong>~Aug <strong>2016</strong> - Page # 05


TRADE CHRONICLE<br />

America and Africa).<br />

President of the Karachi<br />

Chamber of Commerce &<br />

Industry (KCCI) Younus<br />

Muhammad Bashir has rightly<br />

said that the challenging<br />

export target of $35 billion,<br />

which was quite an unrealistic<br />

one, was set under STPF 2015-<br />

18 to be achieved by 2018 but<br />

it looks difficult as during<br />

FY16, the exports target of $24<br />

billion could not be achieved<br />

due to lack of specific plan in<br />

trade policy. President KCCI<br />

further pointed out that the<br />

cost of doing business was<br />

roughly 9 percent higher in<br />

Pakistan as compared to other<br />

regional countries as Pakistan<br />

was ranked 138th amongst the<br />

189 countries. However, no<br />

practical measures have been<br />

proposed in the policy to<br />

reduce the high cost of doing<br />

business.<br />

Shaikh Khalid Tawab, Sr. Vice<br />

President FPCCI emphasized<br />

on the exploration of African<br />

market, which is the second<br />

largest continent of the world<br />

with 54 sovereign states and<br />

a collective GDP of US$2.3<br />

trillion and imports market of<br />

US$ 513.5 billion.<br />

Pakistan local banks are<br />

opening branches in China,<br />

which will definitely promote<br />

regional trade. However, same<br />

banking facility may also be<br />

opened up in other neighbour<br />

counties as well. Let’s hope<br />

CPEC will pay the way to<br />

improve trade flow with all the<br />

neighbours in year to come.<br />

Shifting of TDAP Head Office from Karachi<br />

<strong>Trade</strong> Development Authority<br />

of Pakistan (TDAP) formerly<br />

known as Export Promotion<br />

Bureau (EPB) under Ministry of<br />

Commerce since long has head<br />

office in Karachi to facilitate<br />

and promote exports. It has<br />

regional office in other<br />

provinces as well. The<br />

Federation of Pakistan<br />

Chambers of Commerce &<br />

Industry (FPCCI) has expressed<br />

great concern on the news<br />

being circulated in the<br />

government corridor about the<br />

shifting of <strong>Trade</strong> Development<br />

Authority of Pakistan (TDAP)<br />

Head Office from Karachi to<br />

Islamabad.<br />

An official wisely pointed out<br />

that it would create unrest<br />

amongst the FPCCI Member<br />

<strong>Trade</strong> Bodies who have strongly<br />

condemned the proposed<br />

decision and supported the<br />

FPCCI instance to do away with<br />

the proposed move to shift the<br />

TDAP Head Office from Karachi.<br />

The official argued that it would<br />

add injuries to the<br />

manufacturers and exporters.<br />

He elaborated that Pakistan’s<br />

exports are showing declining<br />

trend due to a variety of reasons<br />

such as slump in global market<br />

even in the wake of granting<br />

GSP Plus status to Pakistan;<br />

erosion of competitive edge of<br />

indigenous products against<br />

the foreign goods in the<br />

international market mainly<br />

due to highest cost of exports;<br />

inordinate delay / nonpayments<br />

of sales tax refund<br />

claims within stipulated time<br />

etc. He said that the decision<br />

would serve as a catalyst to<br />

further decline the exports.<br />

Therefore, in this backdrop, the<br />

FPCCI Acting Chief proposed<br />

not to take such unnecessary<br />

and drastic decision.<br />

Not to shift TDAP office, the<br />

FPCCI Acting Chief submitted<br />

valid points and argued that<br />

Karachi is the financial and<br />

commercial capital of Pakistan<br />

in line with its status as a major<br />

port and the country’s largest<br />

metropolis; it generates a lion’s<br />

share of more than half of the<br />

total collection of Federal Board<br />

of Revenue (FBR) out of which<br />

approximately 50% are from<br />

customs duty and sales tax on<br />

imports. In addition to it, he<br />

added, “Karachi produces about<br />

30% of value added in large<br />

scale manufacturing (LSM);<br />

contributes 20% of GDP and<br />

shares 70% of the revenue of<br />

Pakistan”. That is why the<br />

World Bank identified Karachi<br />

as the most business-friendly<br />

city in Pakistan and as per<br />

finding of the research<br />

conducted by the Global Human<br />

Resources Company, “Mercer”,<br />

Karachi is the most inexpensive<br />

city in the world.<br />

Moreover, most of the<br />

exhibitors are also situated in<br />

Karachi and there is also an<br />

Expo Centre in Karachi to<br />

showcase their products and<br />

promote exports. He added that<br />

it would create lack of<br />

coordination and interaction<br />

between the private sector<br />

enterprises and TDAP. If latter<br />

office is shifted in Islamabad.<br />

He informed that Karachi is<br />

situated at a most strategic<br />

location of the gate-way to<br />

Middle Eastern and European<br />

countries, and as such is<br />

considered as a most lucrative<br />

city for the foreign and local<br />

investment.<br />

We hope government would give<br />

due consideration to these<br />

concerns from the apex trade<br />

body of Pakistan and would not<br />

shift TDAP office from Karachi.<br />

TRADE CHRONICLE - <strong>July</strong>~Aug <strong>2016</strong> - Page # 06


TRADE CHRONICLE<br />

Independence Day<br />

Message from<br />

President of Pakistan<br />

My dear Countrymen! Today we are<br />

celebrating our Independence Day<br />

with a new zeal and vigor. I am<br />

confident that our determination will<br />

pave the way for political, economic<br />

and social stability in the coming<br />

days. Our country has been<br />

confronted with many challenges<br />

since the last few years but the nation<br />

has boldly faced them through its<br />

unshakeable resolve. The<br />

Government of Pakistan resolutely<br />

decided to take action in order to<br />

cleanse various regions and cities of<br />

terrorism, extremism and lawlessness<br />

under which the Armed Forces and<br />

other law enforcement agencies are<br />

playing effective role, as a result of<br />

Message from<br />

Prime Minister<br />

of Pakistan<br />

My Dear Countrymen!<br />

This year, the day of 14th <strong>August</strong>,<br />

besides the traditional pleasure, also<br />

carries deep feelings of grief. The pain<br />

of Quetta’s martyrs is still fresh. Today,<br />

we are also remembering those martyrs,<br />

who sacrificed their lives to protect<br />

this independence. This day is dawning<br />

with the determination of Pakistani<br />

nation that Pakistan, with the grace of<br />

Allah Almighty, will remain forever.<br />

The spirit of 1965 is still alive with<br />

full vigor, when Pakistani armed forces<br />

and the people together confronted the<br />

enemy. This Independence is also<br />

memorable due to the fact that<br />

nowadays the spirit of independence<br />

in Occupied Kashmir is on its peak.<br />

The new generation of Kashmiris has<br />

raised the flag of freedom with a new<br />

vigor. I dedicate this year’s 14th <strong>August</strong><br />

which peace is being restored in the<br />

country. The government has also<br />

adopted sound policies to improve<br />

the economy which has created better<br />

business environment leading to<br />

increased opportunities for domestic<br />

and international investment. It is<br />

satisfying to note that foreign<br />

investors are increasingly turning to<br />

Pakistan for investment. These<br />

developments augur well for our<br />

economic future which testifies that<br />

new possibilities and opportunities<br />

are unfolding for Pakistan. I am happy<br />

to note that the consensus on<br />

democracy is producing positive<br />

results. We need to initiate the process<br />

of correction individually, then from<br />

homes and communities to derive<br />

more benefits and ensure that the<br />

democratic values take roots at the<br />

to the freedom of Kashmir. I dedicate<br />

it to those people of Kashmir, who<br />

bravely faced the state oppression but<br />

kept the spirit of freedom alive.<br />

My Dear Countrymen!<br />

The protection of independence is even<br />

harder than its achievement. Without<br />

the leadership of Quaid-e-Azam, the<br />

creation of Pakistan was impossible.<br />

If our armed forces, security<br />

institutions, police and people did not<br />

have shed their blood, its (Pakistan’s)<br />

survival and security was impossible.<br />

In the month of <strong>August</strong>, when we<br />

remember the Quaid, leaders and<br />

workers of Pakistan movement, our<br />

hearts are also enlightened with the<br />

memory of those martyrs, who have<br />

become immortal by sacrificing their<br />

lives for the country. Today, we are<br />

remembering our all those martyrs.<br />

They belong to every segment of the<br />

state. They are in every political party.<br />

They are in every field of life. They<br />

are in every sect. They are in every<br />

Mr. Mamnoon Hussain President Islamic<br />

Republic of Pakistan<br />

state, governmental and<br />

administrative levels to pave the way<br />

for real and meaningful change. Let<br />

us unite to secure a better and brighter<br />

future for our coming generations by<br />

following in the footsteps of our<br />

illustrious founding fathers. Happy<br />

Independence Day Pakistan<br />

Paindabad.<br />

Nawaz Sharif Prime Minister Islamic<br />

Republic of Pakistan<br />

religion. They are all Pakistanis. They<br />

are individuals of one nation. We are<br />

paying tributes to all these martyrs.<br />

We are presenting salute to their souls.<br />

All of them are pronouncing that the<br />

nation is united against terrorists. Today<br />

we have to solemnly affirm that, till<br />

we are alive, we will sacrifice our<br />

interests for the stability, security and<br />

survival of Pakistan. We will take<br />

forward this tradition of martyrs that<br />

after us, the world gives the same<br />

evidence in our favour, which we are<br />

giving today for our martyrs. May<br />

Allah bless you. Pakistan Paindabad!<br />

TRADE CHRONICLE - <strong>July</strong>~Aug <strong>2016</strong> - Page # 07


TRADE CHRONICLE<br />

Sheikh Imran Ul Haque, Managing<br />

Director Pakistan State Oil along with<br />

company’s business partners hoisting the<br />

national flag at the PSO head office on<br />

Pakistan’s Independence Day. The flag<br />

hoisting was followed by the National<br />

Anthem.<br />

Federation of Pakistan Chambers of Commerce & Industry (FPCCI) acting President<br />

Sheikh Khalid Tawab along with other members hoisting national flag on 14th <strong>August</strong>.<br />

Prof. Dr. Hakim Abdul Hannan, Vice Chancellor, Hamdard<br />

University hoisting flag with Fatema Munir Ahmed, Vice President,<br />

Madinat al-Hikmah in Bilawal Stadium, Madinat al-Hikmah,<br />

Karachi on the occasion of 70th Independence Day.<br />

Governor State Bank of Pakistan Mr. Ashraf Mahmood Wathra<br />

hoists the national flag to mark independence day at SBP<br />

headquarters Karachi on <strong>August</strong> 14, <strong>2016</strong>.<br />

TRADE CHRONICLE - <strong>July</strong>~Aug <strong>2016</strong> - Page # 08


TRADE CHRONICLE<br />

Pakistan’s future lies in a strong democracy<br />

President Mamnoon Hussain has said<br />

Pakistan’s future lied in a strong<br />

democracy that would ensure<br />

progress, prosperity and development<br />

of the country.<br />

Addressing a ceremony to mark the<br />

70th Independence Day at the Jinnah<br />

Convention Centre, the president<br />

urged the nation to work selflessly<br />

with the zeal similar to that of the<br />

independence struggle to confront<br />

the challenges ahead. “Equality,<br />

fraternity, provision of basic rights,<br />

a society free of religious, ethnic and<br />

racial differences and independent<br />

foreign policy are the key principles<br />

for achieving prominence among the<br />

comity of nations,” the president<br />

noted. Mamnoon said the plot of the<br />

enemy needed to be understood and<br />

the mutual differences should not be<br />

provoked. “National unity, democracy<br />

and strong defence will lead to<br />

progress and stability in the country.”<br />

He said a national agenda would have<br />

to be pursued for improving law and<br />

order situation and maintaining<br />

economic stability.He recalled that<br />

Quaid-e-Azam Muhammad Ali<br />

Jinnah believed that democracy was<br />

part of a Muslim’s life and the way<br />

forward. The president urged the<br />

nation to stand united and rise above<br />

petty differences and carry on the<br />

mission of Pakistan Movement with<br />

a commitment in the next phase to<br />

make the country a strong democratic<br />

entity. Mamnoon also urged the nation<br />

to ensure rule of law and service to<br />

the people of Pakistan as the core<br />

values that would take the country<br />

forward.Earlier, the president hoisted<br />

the national flag along with Prime<br />

Minister Nawaz Sharif at an inspiring<br />

ceremony. The flag-hoisting<br />

ceremony started at 0900 hours after<br />

the blaring of sirens across the country<br />

and traffic coming to standstill. This<br />

followed the national anthem of<br />

Pakistan played by the students from<br />

different educational institutions of<br />

Islamabad.<br />

The day dawned with a 31-gun salute<br />

in the federal capital and a 21-gun<br />

salute in provincial capitals.Mamnoon<br />

said on Independence Day, the nation<br />

was also grieved over the loss of lives<br />

in the recent Quetta tragedy. “The<br />

entire nation stands in solidarity with<br />

the families of the victims,” he said,<br />

adding that their blood would not go<br />

in vain. “We settled this account in<br />

the past and will do so in the future<br />

too,” the president remarked. He said<br />

the visible or invisible enemies of the<br />

country would be not let to escape as<br />

the Operation Zarb-e-Azb was<br />

coming to fruition and urged the<br />

security institutions to eliminate the<br />

menace of terrorism with a renewed<br />

resolve.He also paid tribute to the<br />

personnel of security forces and<br />

civilians who sacrificed their lives in<br />

terror incidents. Mamnoon said<br />

democracy could pave way for<br />

national development even in<br />

unfavourable circumstances and took<br />

the country towards progress and<br />

prosperity by removing social<br />

differences.The president said the<br />

agenda of national development<br />

should never be compromised and<br />

the charter of education must be made<br />

the top national priority.<br />

He said, “Amid the pleasures of<br />

Independence Day, we should not<br />

forget the people of Occupied<br />

Kashmir who had been denied their<br />

right to freedom.”The president<br />

reiterated the country’s resolve to<br />

continue providing political,<br />

diplomatic and moral support to<br />

Kashmiri brethren till they were given<br />

the right to plebiscite under the UN<br />

resolutions.<br />

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Wazir Mansion: A nation’s treasure<br />

By: Zarina Patel<br />

The emergence of Pakistan in world's<br />

map is a story of long struggle of 95<br />

million South East Muslims under<br />

the charismatic leadership of<br />

Mohammad Ali Jinnah. The dynamic<br />

personality of Jinnah has significantly<br />

altered the course of the history. He<br />

was a man of principles, possessed<br />

a strong sense of self-esteem, and<br />

showed unbending attitude towards<br />

disruptive rivals.<br />

Mohammad Ali Jinnah was an<br />

outstanding figure of 20th century<br />

not only in South East India, but in<br />

the whole world. It is said that<br />

without Gandhi, Hindustan would<br />

still have gained independence and<br />

without Lenin and Mao, Russia and<br />

China would still have endured<br />

Communist revolution, without<br />

Jinnah there would have been no<br />

Pakistan in 1947.<br />

The leader of the nation, the fonder<br />

of the Pakistan was born in a rented<br />

apartment on the second floor of a<br />

prosperous and historic building<br />

known as Wazir Mention in Karachi.<br />

The story of Pakistan's independence<br />

is incomplete without the description<br />

of Wazir Mansion. It is not just a<br />

birthplace of our leader; it is a source<br />

of inspiration to our patriotic feelings,<br />

it is a symbol of unity and it guides<br />

the citizens of Pakistan towards the<br />

path of prosperity. The auspicious<br />

building of Wazir Mansion is a<br />

national treasure and a source of<br />

inspiration to the citizen of Pakistan.<br />

It is located on a street known as<br />

Chagla Street (now Barkati Street),<br />

Kharadar, near Merewether Tower<br />

Karachi.<br />

It was the year 1874, when Jinnah<br />

bhai (1857-1902), an affluent<br />

Gujarati merchant and exporter of<br />

cotton, wool,<br />

grain, and range<br />

of other goods,<br />

moved to<br />

Karachi from<br />

Kathiawar,<br />

because of his<br />

business<br />

partnership with<br />

Grams Trading<br />

Company<br />

whose regional<br />

office was set<br />

up in Karachi.<br />

At that time,<br />

Karachi was a part of Bombay<br />

presidency.<br />

Mr Jinnahbhai and his wife Sakina<br />

Bano started the new phase of their<br />

life in a two room's apartment at the<br />

first floor of Wazir Mansion. They<br />

got the apartment for rent in 1874<br />

and settled here for more 16 years.<br />

Two years later, born a great human<br />

being, a great man and a great leader<br />

Muhammad Ali Jinnah. Quaid spent<br />

16 years of his early life in Wazir<br />

Mansion. He then in 1892 left for<br />

London, United Kingdom to get<br />

higher education. After the birth of<br />

Mohtarma Fatima Jinnah, the house<br />

was sold to someone else by the<br />

owner, and the Quaid's family shifted<br />

to another big rented house in<br />

Karachi. Wazir Ali Ponwala<br />

purchased it during 1940s.<br />

"In 1953, the Government of<br />

Pakistan acquired this historic<br />

building and protected it under<br />

Ancient Monuments Preservation<br />

Act, 1904, and the Pakistan Public<br />

Works Department (PWD) was<br />

assigned the work of its renovation<br />

and conservation. The birthplace<br />

museum was formally inaugurated<br />

by the then governor-general of<br />

Wazir Mansion - The Birthplace of<br />

Quaid-e-Azam Mohammad Ali Jinnah<br />

Pakistan on <strong>August</strong> 14, 1953." The<br />

department of archeology and<br />

museum renovated and up graded<br />

the museum in 2004 with the cost<br />

of Rs 25.04 million. The project<br />

completed in 2010.<br />

It is built with jute mortar and tiles<br />

masonry in lime. There is a public<br />

reading room and library at the<br />

ground floor of the building and<br />

museum at the first floor. It is said<br />

that the entrance of the museum used<br />

to have a fountain, but due to<br />

renovation needs, it was removed<br />

some time ago. The reading room<br />

has a complete record of leading<br />

newspapers since 1953. Students,<br />

history lovers and general public visit<br />

the library featuring an extensive<br />

collection of about 5000 books on<br />

the topics, Quaid's biography,<br />

freedom movement, politics, law and<br />

history of Pakistan.<br />

Walls are decorated with the rare<br />

and precious collection of<br />

Mohammad Ali Jinnah's<br />

photographs. Wooden stairs take the<br />

visitors to the first floor. The balcony<br />

of the first floor is divided into three<br />

big showcases like rooms. One of<br />

(Continue on Page 13)<br />

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TRADE CHRONICLE<br />

Vision 2025: An economic long march<br />

Pakistan aims to become one of the top 25 economies<br />

by 2025 and one of the top 10 economies by 2047;<br />

Govt has allocated more resources for education and health<br />

By: Ahsan Iqbal Minister of Planning, Development & Reform.<br />

The month of <strong>August</strong> brings out<br />

colourful expressions of patriotism<br />

among people of Pakistan. This year<br />

the joy is twofold because it marks<br />

our sixty ninth Independence Day<br />

and second anniversary of Pakistan<br />

Vision 2025. In addition to<br />

celebrations, <strong>August</strong> is a month of<br />

self-introspection for our nation. We<br />

must ask ourselves have we realised<br />

our true potential as a nation.<br />

If we set aside our emotions for a<br />

moment and try to address this<br />

question objectively. The answer<br />

would be in negative. As a country<br />

we have wasted plenty of time. We<br />

can’t afford to repeat our mistakes<br />

of the past. Countries which were<br />

lagging behind us sixty odd years<br />

ago have surpassed us a long time<br />

ago. We need to draw inspiration<br />

and lessons from these countries<br />

viz., South Korea, China, Singapore,<br />

Malaysia and Turkey.<br />

These countries devised a<br />

framework of national vision and<br />

with consistent implementation turned<br />

themselves into miracle stories. For<br />

a nation to progress, it must have a<br />

well-defined and clear vision of its<br />

long-term aspirations. Without this<br />

clarity a nation would be unable to<br />

prepare a coherent roadmap for<br />

action. In 2013, there was no such<br />

roadmap in place.<br />

At Ministry of Planning,<br />

Development & Reform (MoPDR),<br />

I took up the task of formulating a<br />

national vision. A vision that would<br />

clearly delineate our collective<br />

ambitions and offers guidance to<br />

materialise our true potential. Today<br />

we have such a document: Pakistan<br />

Vision 2025.<br />

Vision 2025 was devised in <strong>August</strong><br />

2014 with the consensus of all major<br />

stakeholders of the country. It<br />

provides us a blueprint to put Pakistan<br />

on a fast track of development. The<br />

ultimate goal is to become one of the<br />

top ten economies in the world by<br />

Ahsan Iqbal Minister of Planning, Development<br />

& Reform<br />

2047 on our first centenary as an<br />

independent nation. Moreover, by<br />

2025, it envisages Pakistan among<br />

top twenty five economies of the<br />

world and an upper middle income<br />

country.<br />

As a developing country, we have<br />

two economic tasks in hand. On one<br />

hand, we need to increase the size of<br />

the economy and on the other hand,<br />

we need to ensure egalitarian<br />

distribution of wealth. In the post-<br />

World War-II era, the conventional<br />

wisdom was to do this in stages. That<br />

is, first prioritise high growth and<br />

once total income increases<br />

substantially only then focus on<br />

distributional aspect of income.<br />

Historically, policy makers in<br />

Pakistan had opted for this strategy<br />

and the results are in front of us. In<br />

Vision 2025, we opted for a new<br />

approach of inclusive growth strategy.<br />

If I have to elucidate the crux of<br />

Vision 2025 in a word that would be<br />

‘inclusive growth’. Inclusive growth<br />

means incorporating all segments<br />

of society in the processes of<br />

economic development.<br />

Historically processes of<br />

development have created ‘winners’<br />

and ‘losers’ in Pakistan.<br />

Consequently, socio-economic,<br />

regional and gender disparities have<br />

increased multi-fold in last sixty<br />

nine years in Pakistan. We want to<br />

reverse these disparities while<br />

continue to grow as an economy.<br />

This is the real challenge we face<br />

today.<br />

In this article, I will present concrete<br />

evidence to people of Pakistan to<br />

evaluate the progress our government<br />

has made in terms of implementation<br />

of Vision 2025.<br />

The major driver of economic growth<br />

in contemporary epoch is knowledge.<br />

It is knowledge that breeds innovation<br />

and entrepreneurship in today’s world.<br />

Therefore, science and technology<br />

are the cornerstone of development<br />

and prosperity. From the same token,<br />

we can extrapolate that knowledge is<br />

also a driver of inequality. Skill-based<br />

technical change has shaken the world<br />

economy.<br />

That is, a shift in the production<br />

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TRADE CHRONICLE<br />

technologies that favour skilled over<br />

unskilled labour by increasing its<br />

relative productivity and, therefore,<br />

its relative demand.We cannot be<br />

competitive in global economy by<br />

restricting ourselves to primordial<br />

methods of production. We need to<br />

modernise every sector of economy<br />

and that is only possible if we are at<br />

the cutting edge of science and<br />

technology.<br />

It is in this backdrop we have<br />

increased allocation of funds to higher<br />

education by more than double in last<br />

three years. From 2013 to present,<br />

two hundred and fifteen billion rupees<br />

are allocated to Higher Education<br />

Commission (HEC). Compared this<br />

with 2010 to 2013 in which hundred<br />

billion rupees were allocated to HEC.<br />

We have also initiated US-Pakistan<br />

knowledge corridor. This would allow<br />

ten thousand Pakistani students to get<br />

their PhDs from top universities of<br />

the US in next ten years. Our<br />

government prioritises transfer of<br />

scientific knowledge from the US<br />

rather than aid or military gadgets.<br />

Moreover, we have taken an initiative<br />

to build a university campus in every<br />

district of Pakistan. All students from<br />

low income background and<br />

especially girls would benefit most<br />

from this project. Because usually<br />

they are the ones who are unable to<br />

pursue higher education if they have<br />

to move to another district to attend<br />

university. National Endowment<br />

Scholarships for Talent (NEST)<br />

programme is introduced by MoPDR<br />

to provide scholarships and interest<br />

free loans to students from low and<br />

middle income households to pursue<br />

higher studies in top universities of<br />

the world.<br />

Our government believes that every<br />

child of Pakistan has a right to quality<br />

education irrespective of their<br />

family’s income, ethnicity and faith.<br />

Therefore, under prime minister’s<br />

education reform programme three<br />

billion rupees are allocated for<br />

upgradation of schools infrastructure<br />

and laboratories for science and<br />

technology.<br />

And for the first time in history of<br />

Pakistan, Montessori classes are<br />

introduced in public schools. As an<br />

affirmative action policy, our<br />

government has launched Science<br />

Talent Farming Scheme that would<br />

provide scholarships to 300 school<br />

students every year to pursue higher<br />

studies up to PhD in science. This<br />

scheme targets students from<br />

historically disadvantaged segments<br />

of our society.<br />

Government has set up National<br />

Curriculum Council (NCC) to work<br />

with all relevant stakeholders to<br />

modernise the curriculum in public<br />

schools. The idea is to transform<br />

learning experience from rote learning<br />

to innovative, critical and out of box<br />

thinking. We have emphasised to<br />

NCC that new curriculum should<br />

encourage and incentivise students<br />

to think out of box and develop<br />

innovative and critical thinking skills.<br />

Moreover, teachers’ training is an<br />

essential component of our education<br />

reform programme. For that purpose,<br />

a teacher training programme has<br />

been initiated to equip teachers with<br />

innovative, interactive and new<br />

scientific teaching methods.<br />

Our government has taken major<br />

initiatives in health care. Prime<br />

Minister’s National Health Insurance<br />

Programme is the first large scale<br />

health insurance programme in<br />

Pakistan. The objective is to achieve<br />

universal health coverage. As the<br />

programme will roll out, millions of<br />

low income households will be able<br />

to access quality health care services.<br />

Moreover, national and provincial<br />

strategic plans for tuberculosis control<br />

have been developed. Free of cost<br />

diagnosis and treatment through a<br />

BSL3 lab network at 1,257<br />

tuberculosis care facilities are up and<br />

running.<br />

First time in the history of Pakistan,<br />

field epidemiology and disease<br />

surveillance division is established<br />

by our government in 2014. It will<br />

take a lead in disease surveillance<br />

and provide technical support to<br />

provinces. Furthermore, under New<br />

Blood Policy initiative sixty blood<br />

banks across the country are<br />

upgraded. Moreover, construction of<br />

ten new regional blood centres is<br />

already underway.<br />

In order to address injustices and<br />

socio-economic inequities, we must<br />

first have concrete data on it. Such<br />

data is very scarce in Pakistan.<br />

Therefore, government took an<br />

initiative on this by sanctioning<br />

Multidimensional Poverty Index<br />

(MPI) which is produced by UNDP.<br />

It reveals that income disparity is<br />

only one aspect of inequities in<br />

Pakistan. Disparities in terms of<br />

gender and region are strikingly high.<br />

The publication of MPI was a small<br />

but a necessary step. Now<br />

government is in the process of<br />

designing and implementing<br />

pertinent socio-economic policies to<br />

address social, gender and regional<br />

inequities.<br />

Being cognizant of these challenges,<br />

our government has internalised<br />

Sustainable Development Goals<br />

(SDGs) as our national goals and this<br />

is a major policy shift. Because<br />

previous governments did not own<br />

Millennium Development Goals<br />

(MDGs) and consequently, we could<br />

not meet those goals. If we look at<br />

the aggregate statistics, our<br />

government has increased the<br />

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TRADE CHRONICLE<br />

allocation of funds to Public Sector<br />

Development Programme (PSDP) to<br />

2,467 billion rupees since 2013. This<br />

is an increase of 76 percent as<br />

compared to 2009-2012. Moreover,<br />

allocation for infrastructure projects<br />

increased from 744 billion rupees to<br />

1,517 billion rupees. This is an<br />

increase of 103 percent.<br />

Infrastructure and energy projects<br />

worth of $46 billion are already<br />

underway under China-Pakistan<br />

Economic Corridor (CPEC). This is<br />

going to positively transform socioeconomic<br />

landscape of the country<br />

in an unprecedented way.<br />

Similarly, in energy sector investment<br />

has increased to 1,237 billion rupees<br />

since we took over government, i.e.<br />

an increase of 95 percent as compared<br />

to last three years of PPP government.<br />

Allocation of funds for transportation<br />

and communication has increased to<br />

731 billion rupees, i.e. an increase of<br />

141 percent as compared to 2009-12<br />

period.<br />

Government is paying special<br />

attention to enhance competitiveness<br />

of our economy through productivity,<br />

quality and innovation (PQI) in<br />

agriculture, mining and<br />

manufacturing. Moreover, large scale<br />

clusters of different industries will<br />

be promoted in order to develop<br />

efficient backward and forward<br />

linkages between different sectors.<br />

(Continued From Page 10)<br />

these rooms is a place where the<br />

great leader was born in 1876. This<br />

room consists of the Quaid's birth<br />

bed, a set of faded white couches,<br />

and a dressing table. Here visitors<br />

can find the law books of the Quaid.<br />

Mohammad Ali Jinnah was a welldressed<br />

leader of his time. He owned<br />

a fine collection of unique and<br />

sophisticated well-tailored suits. He<br />

The dividends of most of these<br />

projects would fully mature in future<br />

but we are already experiencing a<br />

major economic recovery. The<br />

average GDP growth rate in last three<br />

years is 4.3 percent. Whereas, from<br />

2010-2013, the average GDP growth<br />

rate was 3.7 percent. Inflation rate in<br />

Pakistan is at its historic low. The<br />

average inflation rate for last three<br />

years is 5.3 percent. Whereas, from<br />

2010-2013, it was 10.7 percent.<br />

Unemployment rate was 6.24 percent<br />

in 2013; today it is 5.94 percent.<br />

Moreover, Pakistan’s macroeconomic<br />

stability has allowed government to<br />

discontinue borrowing from<br />

International Monetary Fund (IMF)<br />

via Extended Fund Facility (EFF).<br />

This is a remarkable story of a country<br />

that was declared on the brink of a<br />

default by major international<br />

publications only 3 years ago.<br />

The average revenue collection by<br />

FBR has increased from 1,795 billion<br />

rupees to 2,651 billion rupees today.<br />

From 2010 to 2013, on average,<br />

remittances were $12,770 million.<br />

Whereas in last three years, they have<br />

been $18,158 million.<br />

Foreign exchange reserves are at<br />

historic high of $23,085. Compare<br />

this with 2013 when they were<br />

$11,020 million. Similarly, stock<br />

exchange has seen its historic high<br />

of 37,783 points in 2015-16. In 2013,<br />

it was hovering around 21,006 points.<br />

was a huge fan of the spectacles, and<br />

silk ties. Indian viceroys of that time<br />

unanimously agreed that they had<br />

never seen such a well-dressed<br />

gentleman in India. To get visual<br />

knowledge of Quaid's dress<br />

collection visit second floor of Wazir<br />

Mansion. Here you can find two<br />

suites, ties, tailcoat, trousers, gent's<br />

braces. Interestingly most of the<br />

dressesses stitched in London, Paris<br />

and Bombay. They have M.A.J tag<br />

This is just a beginning. But every<br />

journey starts from a small step in a<br />

right direction. I have illustrated with<br />

the concrete evidence that we are<br />

making a lot of ground on the<br />

implementation side of Vision 2025.<br />

After three years of dedicated work<br />

we are finally on a path towards<br />

economic stability and prosperity.<br />

But this is just a beginning and in<br />

order to build on this we must ensure<br />

consistency and that is predicated on<br />

the political stability of the country.<br />

We don’t expect our cynics in media<br />

and in politics to acknowledge any of<br />

our achievements. In last three years,<br />

they have demonstrated time and time<br />

again that they are only interested in<br />

furthering their narrow vested<br />

interests. And if that requires halting<br />

Pakistan’s economy and creating a<br />

chaos, they would still do it.<br />

Today the people of Pakistan face<br />

two distinct and very clear choices.<br />

On one hand, there are some vested<br />

interests who are preparing for a<br />

‘chaotic long march’ so that they can<br />

halt Pakistan’s economy and fuel<br />

political instability. On the other hand,<br />

our government is committed to put<br />

Pakistan among top twenty five<br />

economies of the world by 2025. In<br />

order to materialise this we have<br />

prepared a ground for ‘economic long<br />

march’ so that prosperity can be<br />

spread across all segments of our<br />

society.<br />

with the name of tailors.<br />

In showcases one can see his walking<br />

stick, footwear, one rob in green silk<br />

strip are also preserved here. The<br />

historic building of Wazir Mension<br />

stands amid the busy area of Karachi<br />

with prosperity and dignity and<br />

portrays the vision of Quaid's<br />

Pakistan.<br />

(Courtesy: Business Recorder)<br />

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TRADE CHRONICLE<br />

Speakers at the meeting of Shura<br />

Hamdard Karachi chapter urged the<br />

government to do whatever it can to<br />

curb the extremism and terrorism<br />

without which no corrective<br />

measures and reformative<br />

movements can be able to succeed<br />

in the country. The meeting was held<br />

on Thursday <strong>August</strong> 11, <strong>2016</strong> on the<br />

theme: “Social evils and reformative<br />

movements”, presided over by Justice<br />

(Rtd) Haziqul Khairi at a local hall.<br />

Speaking on the occasion, the Guest<br />

speaker, seasoned journalist and<br />

writer, Ghazi Salahuddin said that<br />

secular aspects of Quaid’s thought<br />

were very relevant today and that the<br />

a new narrative and vision for<br />

Pakistan in the light of Quaid-i-<br />

Azam’s speech of <strong>August</strong> 11, 1947<br />

were needed to overcome country’s<br />

socio-economic problems, because<br />

whatever the religious politics gave<br />

us was before us. Quaid-i-Azam in<br />

his 11th <strong>August</strong> speech had made it<br />

very clear that “religion has no<br />

business with state and all Pakistanis<br />

are free to go to their worship places”,<br />

he said, adding that the time has come<br />

now that we should take advantage<br />

out of Quaid’s secular thoughts.<br />

‘We should think over it why the<br />

future of other countries is not being<br />

discussed in the world except<br />

Pakistan, what is wrong with us? We<br />

should also see where we and our<br />

society are standing in global society;<br />

the problems of Pakistan are the<br />

direct results of ruling ideas’, he said,<br />

adding what should be the new<br />

narrative of Pakistan, it should be<br />

discussed and pondered on at every<br />

forum and stage.<br />

‘Our population is increasing day by<br />

day and according to the statement<br />

Extremism and terrorism are great hurdles<br />

in the way of Pakistani society’s reformation<br />

Guest speaker, seasoned journalist and writer, Ghazi Salahuddin addressing on: “Social<br />

evils and reformative movements”, presiding over Justice (Rtd) Haziqul Khairi at a local<br />

hall. Mrs. Sadia Rashid, President Hamdard Foundation Pakistan is also present on this<br />

occasion.<br />

of World Bank’s president 40 per<br />

cent of Pakistani children are stinted<br />

mind because of lack of nutrition’,<br />

he said, adding: who is responsible<br />

for this situation; why it is that we<br />

made atom bomb, but could not run<br />

the primary education properly and<br />

failed to tackle extremism and<br />

terrorism; we need a mental<br />

revolution which could change our<br />

mindset, he concluded.<br />

Justice (Rtd) Haziqul Khairi was of<br />

the view that Pakistan movement<br />

was not a religious movement,<br />

because its all leaders were equipped<br />

with modern education and<br />

knowledge and were not religious<br />

leaders. Indeed, Pakistan movement<br />

was based on two-nation theory, but<br />

it didn’t mean that it was a fight of<br />

Muslims versus rest of the world, it<br />

was a fight for rights between a<br />

majority and a minority, he added.<br />

Mr. Mahdi Masud, former<br />

ambassador of Pakistan said that no<br />

one could deny the importance of<br />

reformative movement, but it could<br />

not be successful in the presence of<br />

terrorism, extremism and<br />

sectarianism prevailing in our society<br />

as these evils had created a situation<br />

of disunity in the country. Press,<br />

media, civil society and political<br />

parties should come forward and<br />

worked jointly to curb this menace,<br />

he added.<br />

Mrs. Sadia Rashid, President,<br />

Hamdard Foundation Pakistan said<br />

that the need of reformative<br />

movements was always felt in<br />

Pakistani Society and that was the<br />

reason that Shaheed Hakim<br />

Mohammed Said had started a<br />

movement --- ‘Awaz Akhlaq’ in<br />

1990’s, but unfortunately he didn’t<br />

get time to make it fruitful. Pakistan<br />

was the glorious result of Sir Syed’s<br />

fruitful movement for education and<br />

reforms, she added.<br />

Commodore (Rtd) Sadeed Anwar<br />

Malik, Ms. Shamim Kazmi and<br />

Sheikh Mohammed Usman have also<br />

spoken on the occasion with their<br />

thought on the subject.<br />

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TRADE CHRONICLE<br />

Plasti Pac & Iftech-Pakistan-<strong>2016</strong>:<br />

unveils the latest technologies in Lahore.<br />

Plastics/packaging industry in Pakistan<br />

is growing with an annual rate of 15%.<br />

A <strong>Chronicle</strong> Report<br />

Advisor to Chief Minister<br />

Punjab, Mr. Sameeullah along<br />

with vice president, Lahore<br />

chamber of commerce and<br />

industries Mr. Nasir Saeed have<br />

jointly inaugurated the 14th<br />

International Plasti &<br />

Packaging Industry Exhibition,<br />

Plasti pack and 13th edition of<br />

International exhibition for<br />

Food & Beverage technologies,<br />

Iftech food + Bev tec, at Expo<br />

Centre, Lahore recently.<br />

The annual International<br />

exhibition has become the<br />

hallmark of introducing the<br />

most innovative and latest<br />

technologies. The show offered<br />

latest in plastics, printing, packaging<br />

material and machinery for all<br />

manufacturing and processing<br />

industries along with food ingredients<br />

& chemical products. The notion was<br />

endorsed by the biggest country<br />

participation from China & Iran.<br />

The exhibition was well attended by<br />

400 companies from 30 countries<br />

including Australia, Germany, China,<br />

Belgium, Austria, Italy, India, Iran,<br />

Japan, Korea, Malaysia, Netherland,<br />

Pakistan, Saudi Arabia, Thailand,<br />

Switzerland, Turkey, UAE, United<br />

Kingdom, USA and Vietnam, offering<br />

latest trends and technologies for the<br />

related industries.<br />

A unique feature of the food<br />

exhibition was the participation of<br />

college of tourism and hotel<br />

management, (COTHM), in<br />

collaboration with Chefs Association<br />

Advisor to Chief Minister Punjab, Mr. Sameeullah, Vice President LCCI, Mr, Nasir Saeed, MD<br />

Pegasus Consultancy, Mr. Aamer Khanzada visiting stalls at the inaugural day of the International<br />

exhibition of Plasti Pac & Food Tech-<strong>2016</strong>-Pakistan.<br />

of Pakistan, which has organized a,<br />

“Skill Showcasing Activity”, by<br />

professional chefs and COTHM<br />

students during the three days of the<br />

Exhibition.<br />

"Plastics/packaging industry in<br />

Pakistan is growing with an annual<br />

rate of 15 %. Its GDP share is 1.69<br />

% and contribution to national output<br />

is PKR 7.5 billion", stated, Managing<br />

Director, Pegasus consultancy, Mr.<br />

Aamer Khanzada, organizer of the<br />

show.<br />

The estimated investment in plastics<br />

sector is around $ 260 billion out of<br />

which 49 % is foreign direct<br />

investment, the industry overall<br />

imported machinery worth $ 545<br />

Million in the year 2015," he added.<br />

Mr. Khanzada mentioned that,” Food,<br />

beverage and processed food industry<br />

TRADE CHRONICLE - <strong>July</strong>~Aug <strong>2016</strong> - Page # 15<br />

is the 2nd largest in Pakistan after<br />

textile. Pakistan’s agro food products<br />

contribute 21% to the country’s GDP<br />

and it is the main source of livelihood<br />

for 45 % of the country’s population.<br />

"Our food processing market is one<br />

of the most important ones in South<br />

East Asia. The trade volume of<br />

processed food is near about $ 1.4<br />

billion annually". Mr. Khanzada,<br />

further remarked.<br />

The local and foreign visitors<br />

participated with latest technology,<br />

showcasing the latest product range<br />

from plastics processing, printing<br />

and packaging, including injection<br />

molding, blow molding, flexible<br />

packaging, extrusion machinery,<br />

Gravure/Flexographic/Offset<br />

Machines.<br />

Along with these, food and beverage<br />

processing lines, bakery


TRADE CHRONICLE<br />

confectionery equipment, milk and<br />

value added product processing,<br />

meat processing, material handling<br />

equipment, inspection and detection<br />

instruments and slaughterhouse<br />

equipment were also on display list<br />

of IFTECH 2015. Beside all these<br />

technologies demonstration, many<br />

food producers from Iran and<br />

Pakistan are also being showcased<br />

at the exhibition.<br />

A high profile two days conference<br />

and seminar on second and third day<br />

of the exhibition were held. The<br />

theme of the 1st edition of Meat &<br />

Poultry Conference was," Halal<br />

export markets & role of processing<br />

packaging technologies", which was<br />

held on second day, simultaneously<br />

on third day there was an annual<br />

packaging forum by the theme, "<br />

PET packaging – The future<br />

outlook". Prominent speakers from<br />

Germany, Hong Kong, Pakistan and<br />

Middle East have presented their<br />

papers at the conference.<br />

Plasti pack & Iftech-<strong>2016</strong>, is fully<br />

supported by government bodies and<br />

trade associations like : Ministry of<br />

food, agriculture and livestock<br />

(MINFAL), Board of investment<br />

(BOI), Engineering development<br />

board (EDB), Pakistan council of<br />

scientific & industrial research<br />

(PCSIR), Pakistan Agriculture<br />

research council (PARC), Pakistan<br />

fruit & vegetable exporters<br />

association (PFVA), National<br />

institute of food scientist &<br />

technology (NIFSAT), Islamic food<br />

& nutrition council of America<br />

(IFANCA), Pakistan dairy<br />

association (PDA), Pakistan poultry<br />

Association (PAA), Flexible<br />

packaging association of converters<br />

of Pakistan (Flexpack)<br />

Pegasus Consultancy has organized<br />

more than 100 international<br />

exhibitions and conferences in last<br />

16 years, more than any other<br />

organizers, put together in Pakistan.<br />

The 2nd day of PLASTI PACK &<br />

IFTECH- Pakistan <strong>2016</strong>, received<br />

overwhelming response from trade<br />

visitors who took keen interest in<br />

plastic, packaging and food<br />

processing machinery & technology<br />

along with the food ingredients &<br />

chemicals, displayed at the<br />

exhibition.<br />

The foreign experts have narrated<br />

the salient features of latest global<br />

trends in in the related industries.<br />

The exhibitors have seen lots of<br />

potential for their machinery and<br />

technology in the fast growing<br />

processing and packaging market<br />

in Pakistan, saying that they are<br />

having good business at the<br />

PLASTI PACK & IFTECH-<br />

Pakistan <strong>2016</strong>.<br />

PLASTI PACK &IFTECH- Pakistan <strong>2016</strong>,<br />

gets an overwhelming response on 2nd, Day<br />

The live demonstration of<br />

machinery attracted many local<br />

manufacturers to bring their<br />

technical team from various cities<br />

of Pakistan to have one-to-one<br />

interaction with machinery manufacturers.<br />

The trade delegates were<br />

also contended to see new<br />

technologies displayed by the<br />

foreign companies providing them<br />

new areas of investments.<br />

“Pakistan has productive market for<br />

food processing machinery, but<br />

there is a need to create awareness<br />

among our buyers about the benefits<br />

of value addition, “said an<br />

international exhibitor,”. “We see<br />

lots future potential in Pakistani<br />

market for the technology our<br />

company is offering”, he added.<br />

On the Second day of the exhibition<br />

there was a professional B2B<br />

activity at the expo center, a high<br />

profile meat & poultry conference<br />

was held.<br />

The theme of the 1st edition of the<br />

conference was," Halal export<br />

markets & role of processing<br />

packaging technologies",.Prominent<br />

local and international speakers<br />

from Germany, Hong Kong,<br />

Pakistan and Middle East had<br />

presented their papers and<br />

highlighted the role of latest trends<br />

and practices in meat packaging<br />

industry.<br />

They particularly discussed the<br />

topics on: Vacuum and MAP<br />

Packaging for Meat and Poultry<br />

Products, Fattening potential of<br />

sheep and goats for mutton<br />

production in Pakistan, Fattening<br />

potential of male calves for beef<br />

production in Pakistan, How to<br />

build and develop a food factory<br />

specialising in meat, Automation<br />

vs manual work in meat production,<br />

Cattle and meat trace ability using<br />

auto ID / RFID.<br />

The Unique skill showcasing<br />

activities by the culinary arts<br />

students from College of Tourism<br />

& Hotel Management, (COTHM),<br />

and professional chefs of the hotel<br />

and restaurant industry, at the expo<br />

center,Ê include knife skill, fruit,<br />

vegetable and ice carving skills,<br />

cake making and decorations and<br />

other exotic culinary preparations.<br />

All preparations are based on live<br />

TRADE CHRONICLE - <strong>July</strong>~Aug <strong>2016</strong> - Page # 16


TRADE CHRONICLE<br />

demonstration in concurrence with<br />

the 2nd days of PLASTI & PACK-<br />

IFTECH.<br />

More than 3,000 industry visitors<br />

T h e<br />

International<br />

Exhibition of<br />

Plastics,<br />

printing,<br />

packaging and<br />

food beverage<br />

technology,<br />

organized by<br />

P e g a s u s<br />

consultancy at<br />

Lahore expo<br />

center, was<br />

concluded<br />

recently, with a<br />

positive note that<br />

exhibitors are<br />

going home with<br />

buying orders.<br />

from Afghanistan, Iran, UAE and<br />

from the various cities of Pakistan<br />

including Faisalabad, Karachi,<br />

Lahore, Kasur, Gujranwala,<br />

Shekhupura, Multan, RaheemYaar<br />

Khan, Vihari, Jhang and Azad<br />

Kasmir have visited the 1st and 2nd<br />

day and appreciated the state of the<br />

art technologies displayed at the<br />

expo centre.<br />

Plastic packaging and food technology exhibition,<br />

Plasti Pac&Iftech-<strong>2016</strong>, concludes.<br />

The twin expos,<br />

Plasti Pack &<br />

Iftech-<strong>2016</strong> had<br />

a positive<br />

presence of<br />

f o r e i g n<br />

exhibitors from<br />

30 countries<br />

who viewed<br />

Pakistan as a<br />

potential market<br />

for this sector as<br />

the market has<br />

become quality<br />

conscious and<br />

are investing in<br />

latest technology<br />

to gain access to<br />

both foreign and<br />

domestic market<br />

with quality<br />

products.<br />

A view of viisting stalls at the last day of the International Exhibition of Plasti Pac & Food Tech-<strong>2016</strong>-Pakistan here<br />

at expo.<br />

TRADE CHRONICLE - <strong>July</strong>~Aug <strong>2016</strong> - Page # 17


TRADE CHRONICLE<br />

Pakistan GDP touches 4.7 growth in FY 16<br />

Pakistan economy posted notable<br />

improvements in FY16 as average<br />

annual CPI inflation declined to a 47<br />

year low of 2.9 percent and real GDP<br />

growth touched an 8-year high of 4.7<br />

percent. Foreign exchange reserves<br />

held by SBP recorded steady increases<br />

and while covering four months of<br />

imports stood at USD18.1 billion by<br />

end-June <strong>2016</strong>. Government’s efforts<br />

at reducing budget deficit remained<br />

on track as its revenue collection<br />

exceeded expectations. Private sector<br />

credit posted a considerable surge<br />

with accelerating loans for fixed<br />

investment and working capital.<br />

Growth in broad money was contained<br />

as the government borrowing<br />

remained lower. Discreetly evaluating<br />

the outlook of these improvements,<br />

SBP cut its policy rate by a cumulative<br />

75bps in FY16; over and above cut<br />

of 300bps in FY15.<br />

Both external and domestic factors<br />

have contributed towards<br />

improvement of the economy. On the<br />

external front, despite a decline in<br />

exports growth, foreign exchange<br />

market remained broadly stable due<br />

to lower oil prices, healthy workers’<br />

remittances, and adequate official<br />

capital inflows. While on the domestic<br />

side, an increase in FBR revenues has<br />

helped in increasing development<br />

spending, while at the same time<br />

maintaining fiscal deficit close to the<br />

target level. Although increased<br />

demand for currency and at times<br />

government borrowing from<br />

commercial banks kept the money<br />

market under pressure, effective<br />

injections to keep the market<br />

sufficiently liquid by SBP has helped<br />

in a better transmission of monetary<br />

policy. This was visible in overnight<br />

repo rate which on average remained<br />

closer to the policy rate. Overall, 6-<br />

month KIBOR has seen a steeper<br />

93bps reduction in FY16, compared<br />

to a 75 bps reduction in the policy<br />

rate during May 2015 to May <strong>2016</strong>.<br />

Thus, in turn, it has helped in a<br />

remarkable increase of Rs461 billion<br />

in private sector credit in FY16,<br />

compared to Rs224 billion in FY15.<br />

This indicates that existing lending<br />

rates together with the provision of<br />

liquidity are supporting the<br />

accelerating pace of private sector<br />

credit. Going forward in FY17, factors<br />

affecting the outlook for external<br />

sector are broadly similar to that of<br />

FY16. Even with a slight increase in<br />

current account deficit, on account of<br />

expected higher non-oil imports,<br />

positive growth in workers’<br />

remittances are likely to keep it at<br />

manageable levels. At the same time,<br />

substantial bilateral and multilateral<br />

project loans related flows in the<br />

financial account will help maintain<br />

an overall surplus in the balance of<br />

payments. Further addition to this<br />

surplus is likely to come from<br />

increased foreign portfolio<br />

investments on the back of<br />

reclassification of Pakistani stock<br />

market in the Emerging Markets Index<br />

by MSCI. However, unexpected<br />

increase in oil prices may result in<br />

wider trade deficit. Further<br />

deterioration in global trade due to<br />

slowdown in China may accentuate<br />

this problem. Slowdown in Gulf<br />

region may decelerate growth in<br />

workers’ remittances. Furthermore,<br />

uncertainties about recovery in the<br />

EU in the post Brexit period can have<br />

repercussions for financial inflows<br />

and trade to the country.<br />

Pakistan’s economic growth is set to<br />

increase further in FY17. The impetus<br />

is likely to come from the continuation<br />

of same positive factors as of FY16,<br />

which include: (i) rising investment<br />

under PSDP and CPEC; (ii) improved<br />

energy availability to industry; (iii)<br />

lagged impact of prudent monetary<br />

policy; (iv) healthy private sector<br />

credit uptake; and (v) improving law<br />

and order situation. Adverse supply<br />

shocks, continued declining trend in<br />

commodity prices, and any setback<br />

to security situation may hamper the<br />

possibility of attaining the GDP<br />

growth target of 5.7 percent in FY17.<br />

In the absence of these risks and<br />

building on to the current momentum,<br />

GDP growth can also experience a<br />

spurt in FY17. Two intertwined factors<br />

are central in shaping up this possible<br />

scenario. First, investments and<br />

activities related to PSDP and CPEC<br />

are going to gain full traction which<br />

will be crucial in giving further boost<br />

to construction and allied industries,<br />

large scale manufacturing, electricity<br />

generation and its impact on services<br />

sector, and promoting an investment<br />

climate in the country. Second, a<br />

successful end to the IMF program<br />

will bring the much-needed<br />

confidence boost to Pakistan economy<br />

and the government which can further<br />

enhance the growth prospects in<br />

FY17.<br />

Increased economic activity may<br />

impact inflation. Accordingly, SBP<br />

forecasts average CPI inflation in the<br />

range of 4.5-5.5 percent for FY17.<br />

Any upward adjustments in gas tariff,<br />

fiscal slippages, and supply<br />

disruptions pose risk to this<br />

assessment. Uncertain global oil price<br />

is the major risk to this projection. In<br />

addition to the sluggish global<br />

demand, possible dampening impact<br />

of Brexit on global commodity prices<br />

and difficulties in clearing excess<br />

domestic food stock also poses risk<br />

to this inflation forecast. Monetary<br />

Policy Committee, after detailed<br />

deliberations, has decided to maintain<br />

the policy rate at 5.75 percent.<br />

TRADE CHRONICLE - <strong>July</strong>~Aug <strong>2016</strong> - Page # 18


TRADE CHRONICLE<br />

Ports and Shiping<br />

PNSC shows outstanding performance:<br />

A <strong>Chronicle</strong> Report<br />

In recognition of the recent tax reform<br />

for shipping sector by present<br />

government, Pakistan National<br />

Shipping Corporation (PNSC) held a<br />

seminar on “Prospects of Shipping<br />

Sector in Pakistan” at Karachi on 12th<br />

<strong>July</strong>, <strong>2016</strong>. The purpose of the<br />

seminar was to highlight the recent<br />

exemptions by the present government<br />

on Custom Duty, General Sales Tax<br />

and Withholding tax on imports of<br />

ships and other floating crafts.The<br />

seminar was honored by Senator Mir<br />

Hasil Khan Bizenjo, Federal Minister<br />

for Ports & Shipping, Federal<br />

Secretary, Ports and Shipping,<br />

Commander COMPAK Vice Admiral<br />

Arifullah Hussaini and Chairman<br />

PNSC. The seminar was aimed to<br />

promote shipping sector of Pakistan,<br />

promulgate policies and incentives to<br />

ensure growth and prosperity of<br />

Pakistan’s maritime sector and<br />

encourage and attract local and foreign<br />

investors.<br />

While addressing the audience, Mr.<br />

Arif Elahil, Chairman PNSC<br />

highlighted the global perspective on<br />

role of merchant shipping. He also<br />

briefed about the merchant shipping<br />

of Pakistan, specifically the role of<br />

PNSC in uplifting trade, economic<br />

activities and supporting oil supply<br />

chain of Pakistan. He appreciated the<br />

efforts of MoP&S in abolishment of<br />

customs duty, general sales tax and<br />

withholding tax on imports of ships<br />

and all floating crafts including tugs,<br />

dredgers, survey vessels and other<br />

specialized crafts purchased or<br />

bareboat chartered by Pakistani entity<br />

and vessels flying Pakistan flag.<br />

Chairman PNSC while emphasizing<br />

the importance of maritime industry<br />

Senator Mir Hasil Khan Bizenjo, Federal Minister for Ports & Shipping is seen addressing<br />

seminar.<br />

also highlighted PNSC’s performance<br />

which has been outstanding in the last<br />

decade. He added that the current<br />

PNSCs fleet comprises modern<br />

vessels with deadweight carrying<br />

capacity of 681,806 metric tons –<br />

highest ever since its inception.<br />

PNSC’s profitability continues to<br />

increase with a net profit of over 2<br />

billion rupees with foreign exchange<br />

savings of over USD 1.5 billion.<br />

“The current national seaborne trade<br />

of Pakistan stands at 73.0 million tons<br />

and looking at the potential of this<br />

sector, we expect this figure would<br />

reach to 95.0 million tons by year<br />

2020”, stated Chairman PNSC.<br />

Mr. Arif Elahi further encouraged the<br />

participants to invest in maritime<br />

sector of Pakistan in areas i.e. oil<br />

tankers, bulk carriers, container<br />

vessels, LNG carriers, oil storage and<br />

anciliary shipping services to<br />

strengthen national fleet and improve<br />

shipping services in Pakistan. “I invite<br />

all the stakeholders to fully utilize<br />

these benefits of exemptions of duties<br />

and taxes and welcome to enter into<br />

Joint venture with PNSC in acquiring<br />

vessels for your own usage. This shall<br />

not only save country’s huge valuable<br />

foreign exchange but will also<br />

improve our cost and reduce<br />

dependency on foreign carriers which<br />

will ultimately benefit investors and<br />

shareholders byh means of higher<br />

profitability” said Chairman PNSC.<br />

Mr. Khalid Pervez, Federal Secretary<br />

for Ports & Shipping also expressed<br />

his gratitude to Federal Minister for<br />

Ministry of Ports and Shipping for<br />

his untiring efforts in pursuing GoP<br />

to abolish the Custom Duty, General<br />

Sales Tax and Withholding of Income<br />

Tax on import of ships and all floating<br />

crafts. “This remarkable decision will<br />

help Private Sector to invest in the<br />

maritime sector and will also provide<br />

golden opportunity to them to join<br />

PNSC through public private<br />

partnership”, the Federal Secretary<br />

added. The Federal Secretary, MoP&S<br />

appreciated the efforts made by<br />

Chairman, PNSC and his team in the<br />

commercial and financial<br />

performances during this last financial<br />

year introducing reforms in the<br />

organization and thanked them for<br />

organizing such an informative<br />

seminar. In the end, Senator Mir Hasil<br />

Khan Bizenjo, Federal Minister for<br />

Ports & Shipping thanked all the<br />

TRADE CHRONICLE - <strong>July</strong>~Aug <strong>2016</strong> - Page # 19


TRADE CHRONICLE<br />

participants and appreciated the<br />

reforms of the present Government<br />

by exempting duties and taxes on<br />

procurement of ships which has finally<br />

set the stage of development in<br />

maritime sector of Pakistan. “I am<br />

pleased to inform you that our<br />

Ministry is presently working in<br />

support with other ministries to<br />

improve port infrastructure, streamline<br />

supply chain management and<br />

developing of existing national fleet”,<br />

the Federal Minister added. While<br />

talking Senator Mir Hasil Khan<br />

Bizenjo also highlighted the volatility<br />

that prevails international shipping<br />

and also shared reasons resulted in<br />

recent downturns which has posed<br />

significant riks to shipping market.<br />

FPCCI asks amendment<br />

in KPT Act<br />

Federal Minister For Port & Shipping<br />

Mir Hasil Khan Bazenjo has assured<br />

the Federation of Pakistan Chambers<br />

of Commerce & Industry (FPCCI) to<br />

bring improvement in Karachi Port<br />

Trust (KPT) Act and remove all the<br />

issues being faced by traders<br />

regarding the port authorities. FPCCI<br />

representatives are now looking<br />

forward to have positive outcome<br />

from decisions of the honorable<br />

federal minister for ports on the<br />

following issues: (i) to declare custom<br />

agents a member trustee for being<br />

most prominent and round the clock<br />

stakeholders, workers, users and<br />

largest service providers at ports and<br />

largest revenue payers of port<br />

wharfage, demurrage and other<br />

charges to port exchequers; (ii) the<br />

trade of entire Pakistan affiliated with<br />

ports for their imports and exports<br />

are extremely in trouble and fear in<br />

the hands of terminal operators and<br />

shipping agents on account of extra<br />

ordinary charges; (iii) the extra<br />

charges of shipping agents, terminal<br />

operators and forwarders will<br />

sabotage the shipping trade.<br />

KPT shows record cargo handling in 2015-16<br />

The accumulated imports and export<br />

cargo handling at Karachi Port<br />

during financial year ending closed<br />

at 50.05 million tons whereas in the<br />

previous financial year it remained<br />

at 43.42 million tons. It is an<br />

outstanding performance that the<br />

port has shown to record 15.25%<br />

more cargo handling during 2015-<br />

16. The breakup shows that KPT<br />

handled 16.59% more to record<br />

34.59 million tons accumulated<br />

imports and exports dry cargo during<br />

the ending financial year 2015-16<br />

whereas it remained at 29.67 million<br />

tons in the financial year 2014-15.<br />

Similarly, KPT also handled 12.37%<br />

more to record 15.45 million tons<br />

accumulated imports and exports<br />

liquid bulk cargo whereas that<br />

remained at 13.75 million tons.<br />

Further breakup imports and exports<br />

shows that KPT handled 40.26<br />

million tons of import cargo and 9.79<br />

million tons of export cargo during<br />

the financial year ending 2015-16.<br />

In the corresponding financial year<br />

2014-15, these remained at 33<br />

million tons and 10.42 million tons<br />

respectively. The cargo import<br />

handling has recorded a hefty gain<br />

of 22% at the close of ending<br />

financial year. Both the dry cargo<br />

imports and liquid cargo imports<br />

have registered gains of 25.58% and<br />

15.84% respectively to close during<br />

the financial year ending at 26.19<br />

million tons and 14.07 million tons.<br />

Previously, these remained during<br />

the corresponding financial year<br />

2014-15 at 20.86 million tons and<br />

12.14 million tons respectively.<br />

The ending financial year 2015-16<br />

has also remained good for container<br />

handling at Karachi Port. The<br />

accumulated imports and exports<br />

container handling at Karachi Port<br />

during the ending financial year<br />

closed at 1.96 million TEUs (Twenty<br />

Equivalent Units) whereas the same<br />

remained last year 13.46% less at<br />

1.72 million TEUs.<br />

The ship handling, another aspect of<br />

Karachi Port Operations, also shows<br />

that during the ending financial year<br />

1,893 ships have been handled<br />

whereas the port handled last year<br />

only 1,732 ships. The breakup shows<br />

that KPT handled 738 container ships,<br />

222 bulk cargo ships, 374 general<br />

cargo ships and 559 oil tankers during<br />

the ending financial year. The same<br />

remained at 790 last year container<br />

ships, 193 bulk cargo ships, 255<br />

general cargo ships and 494 oil<br />

tankers respectively.<br />

TRADE CHRONICLE - <strong>July</strong>~Aug <strong>2016</strong> - Page # 20


TRADE CHRONICLE<br />

PIBT would come<br />

online by the<br />

end of the year<br />

The country’s first-ever dirty-cargo<br />

terminal would come on line by the<br />

end of the year which would help<br />

innovate handling of cement, clinker<br />

and coal, official sources said.<br />

The Pakistan International Bulk<br />

Terminal (PIBT) is being built at<br />

Port Qasim at an estimated cost of<br />

$225 million by a local company in<br />

partnership with the World Bank and<br />

International Finance Corporation<br />

(IFC).<br />

The civil work of the terminal, spread<br />

over 72 acres, was almost complete<br />

and the company was currently<br />

importing and installing equipment,<br />

such as cranes and conveyer belt, to<br />

ensure that the first ship could call<br />

at the terminal in December, sources<br />

said. The work on five silos for the<br />

storage of bulk cement and clinker<br />

for export has been completed. Each<br />

silo has a storage capacity of 10,000<br />

tonnes. The length of the jetty is 460<br />

metres and it has a capacity to handle<br />

two vessels at a time. There are going<br />

to be three cranes at the jetty and<br />

they are expected to arrive in<br />

October, sources said. The PIBT will<br />

have its own captive power plant of<br />

15 megawatts. “The terminal has<br />

annual capacity to handle 12m<br />

tonnes coal (import) and 4m tonnes<br />

(export) of cement and clinker,”<br />

Chief Executive Officer of PIBT<br />

Sharique A. Siddiqui told reporter.<br />

The Marine Group, he said, was the<br />

sponsor of the PIBT and was the<br />

second port infrastructure company<br />

listed on the Pakistan Stock<br />

Exchange after the Pakistan<br />

International Container Terminal<br />

(PICT).<br />

Abdul Rauf Alam, President FPCCI is presenting shield to Federal Secretary Ports and<br />

Shipping Mr Khalid Pervaiz.<br />

FPCCI demands development<br />

& expansion of seaports<br />

The Federation of Pakistan<br />

Chambers of Commerce and<br />

Industry (FPCCI) has called for<br />

increased focus on development of<br />

ports to ensure success of China<br />

Pakistan Economic Corridor. Better<br />

facilities at ports will ensure smooth<br />

flow of merchandise and stimulation<br />

of economic activities which will<br />

cut cost of exports and imports<br />

benefitting masses as well as<br />

business community, said Abdul<br />

Rauf Alam, President FPCCI.<br />

He said this while talking to Federal<br />

Secretary Ports and Shipping Mr<br />

Khalid Pervaiz. Vice President of<br />

FPCCI Zafar Bakhtwari and Sajida<br />

Zulfiquar, group leader of ICCI<br />

Khalid Jaweed, UBG leader Karim<br />

Aziz Malik and others were also<br />

present on the occasion.<br />

Abdul Rauf Alam said that demurrage<br />

time should be increased from one<br />

week to two weeks on all the posts<br />

while detention time should be<br />

increased from fourteen days to<br />

twenty one days.<br />

This will improve the volume of<br />

maritime trade from current 73<br />

million tonnes to 100 million tonnes<br />

as it remained the cheapest mode of<br />

transportation, he said. He added that<br />

FPCCI is preparing proposals to boost<br />

maritime trade which would be<br />

presented to the ministry soon.<br />

The FPCCI president said that<br />

Government should allocate extra<br />

resources for development of ports<br />

which are handling 90 per cent of the<br />

nation’s external trade to unleash a<br />

new era of maritime commerce.<br />

Sheikh Khalid Tawab, Senior Vice President Federation of Pakistan, Chamber of Commerce<br />

& Industry, presenting a shield of Federation to Senator Mir Hasil Khan Bizenjo, Federal<br />

Minister for Ports & Shiping. On this occasion, Vice Presidents of FPCCI and others are<br />

also present.<br />

TRADE CHRONICLE - <strong>July</strong>~Aug <strong>2016</strong> - Page # 21


TRADE CHRONICLE<br />

PNSC seeks bunkering joint ventures<br />

The Pakistan National Shipping<br />

Corporation (PNSC) is seeking<br />

joint ventures and investments in<br />

marine-fuel bunkering to meet the<br />

expected surge in demand after<br />

establishment of the China-Pakistan<br />

Economic Corridor (CPEC).<br />

Speaking at a workshop on<br />

‘Marine-fuel bunkering in Pakistan’<br />

recently, PNSC Chairman Arif<br />

Elahi said his organisation is keen<br />

on the bunkering business as the<br />

sector has promising future<br />

particularly in the light of CPEC.<br />

PNSC Executive Director Tariq<br />

Majeed spoke on government<br />

incentives and tax-relief being<br />

given to the sector by the<br />

government.<br />

The strength of the PNSC could<br />

well be judged from the fact that<br />

the corporation has raised its<br />

capacity to 700,000 tonnes of deadweight<br />

annually, while it safely and<br />

Arif Elahi PNSC Chairman<br />

successfully haulage 90 per cent of<br />

country oil imports, he added. The<br />

PNSC is now keen to enter into<br />

partnerships with bunkering<br />

enterprises, including oil-refineries,<br />

financial institutions and traders of<br />

marine-fuel and would also like to<br />

invest in new machinery like cranes<br />

and dredgers which will strengthen<br />

country’s sea-ports infrastructure,<br />

he said.<br />

On the occasion, some experts<br />

opined that with more than 4000<br />

vessels calling at the country’s ports<br />

from all over the world there was<br />

an urgent need to develop more<br />

efficient facilities and oil-testing<br />

labs to ensure quality.<br />

By doing this, they said, it would<br />

save unnecessary expenditure<br />

incurred by ships calling at<br />

Pakistani ports because around 70pc<br />

of the cost in shipping operations<br />

goes into the fueling of vessels.<br />

It was also observed that as the<br />

demand for marine fuel increases<br />

in Pakistan, global investors can<br />

find great oppor-tunities in<br />

bunkering ventures in the country<br />

by creating synergies with the local<br />

entrepreneurs and develop higher<br />

standards of quality and<br />

effeciencies.<br />

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TRADE CHRONICLE - <strong>July</strong>~Aug <strong>2016</strong> - Page # 22


TRADE CHRONICLE<br />

Leather Industry<br />

A review of Pakistan leather industry<br />

PAKISTAN is considered to be the<br />

hub of producing high quality<br />

Leather and Leather Products, and<br />

there are about 800 Tanneries in the<br />

country actively engaged in<br />

producing best quality finished<br />

leather of Cow, Buffalo, and Sheep<br />

& Goat skins.<br />

Pakistan is rich in agricultural<br />

products and has a large livestock<br />

population which plays an important<br />

role in the economy of Pakistan by<br />

producing around 15.4 Million Hides<br />

and 53.1 Million Skins per annum.<br />

The quality of goat skins, cow,<br />

buffalo hides in Pakistan is<br />

satisfactory.<br />

The type of sheep skins we have in<br />

Pakistan is better in respect of grain,<br />

substance and compactness of fibers.<br />

Leather manufacturers & exporters<br />

are determined to increase export of<br />

quality finished leather and leather<br />

products. And the industry is playing<br />

their positive role in invigorating<br />

WTO regime with quality<br />

consciousness and full sense of<br />

responsibilities to uphold the<br />

impeccable image of Leather<br />

Industry of Pakistan.<br />

As being the most significant<br />

contributor or the country’s GDP<br />

and foreign exchange earnings, The<br />

Leather Industry of Pakistan is<br />

employing more than one million<br />

peoples directly and indirectly.<br />

Leather Institutions<br />

Pakistan Leather Industry is focusing<br />

on value-addition, innovation, R&D<br />

Research and fashion design. For<br />

the purpose there are two institutes<br />

i.e. National Institute of Leather<br />

Technology in Karachi which is<br />

recognized internationally by the<br />

University of Northampton, UK and<br />

Gujranwala Leather Institute are<br />

providing are catering to the needs<br />

of upgrading the leather sector<br />

industry through skill development<br />

of the workforce in the<br />

manufacturing units. In order to meet<br />

National Environmental Quality<br />

Standards (NEQS) and to protect the<br />

Gulzar Firoz Chairman PTA<br />

environment from pollution a<br />

Combined Effluent Treatment Plant<br />

(CETP) has been set-up in Korangi<br />

Tannery Cluster and other in Kasur-<br />

Punjab for disposal and recycling of<br />

tannery waste water.<br />

Setting-up of LEPC<br />

Pakistan Government has announced<br />

formation of Leather Export Council<br />

(LEPC) for the up-gradation and<br />

promotion of Leather Sector.<br />

In this regards in collaboration with<br />

EU Funded – Pakistan Leather<br />

Competitiveness Improvement<br />

Program (PLCIL), a concept paper<br />

has been submitted to MO Commerce<br />

for early implementation of LEPC.<br />

Export Performance<br />

Presently the leather industry is<br />

facing an uncertain situation due to<br />

lower demand from its major Int’l<br />

markets for value-added leather<br />

products, low, price of some hides<br />

and skins which caused declined in<br />

export of Leather & Leather Products<br />

during the current fiscal year.<br />

The other key factors of the<br />

slowdown in export are energy crisis,<br />

lack of level playing field, poor<br />

infrastructure, various local taxes<br />

etc.etc.<br />

Participation in International<br />

Fairs & Exhibitions<br />

Pakistan is organizing Pakistan<br />

Pavilion for its interested members<br />

in financial collaboration of TDAP<br />

in various International Leather Fairs<br />

& Exhibitions held in Italy twice a<br />

year, China twice a year, France &<br />

Hong Kong and visited trade<br />

delegation in Poland, Warsaw.<br />

Recently, with the support of EU<br />

funded PLCIP, Pakistan first time<br />

participated in Shoes & Leather<br />

Fairs, Vietnam.<br />

Organizing of 3rd Pakistan Mega<br />

Leather Show in Lahore<br />

After successfully organization of<br />

2nd Pakistan Mega Leather Show,<br />

PTA is actively proceeding for the<br />

3rd Pakistan Mega Leather Show<br />

which will be held from 27-29th<br />

January’2017 in Lahore International<br />

Expo Centre, Lahore.<br />

TRADE CHRONICLE - <strong>July</strong>~Aug <strong>2016</strong> - Page # 23


TRADE CHRONICLE<br />

Export of leather and leather products from Pakistan<br />

during <strong>July</strong>-June 2014-15 vis-à-vis <strong>July</strong>-June 2015-16<br />

Value in Thousand US$<br />

COMMODITIES<br />

UNIT<br />

JULY-JUNE<br />

2014-15<br />

JULY-JUNE<br />

2015-16<br />

% CHANGE<br />

QTY<br />

VALUE<br />

QTY<br />

VALUE<br />

QTY<br />

VALUE<br />

LEATHER<br />

‘000’SQM<br />

AUP/SQ.M<br />

22,272<br />

489,412<br />

21.97<br />

16,116<br />

362.547<br />

22.50<br />

-27.64%<br />

-25.92%<br />

2.37%<br />

LEATHER APPAREL & CLOTHING<br />

‘000’DOZ<br />

AUP/PCS.<br />

963<br />

365,738<br />

31.65<br />

858<br />

320,551<br />

31.13<br />

-10.90%<br />

-12.36%<br />

1.63%<br />

LEATHER GLOVES<br />

‘000’DOZ<br />

AUP/PAIR<br />

7,094<br />

216,914<br />

5.10<br />

5,119<br />

192,090<br />

6.25<br />

-27.84%<br />

-11.44%<br />

22.72%<br />

LEATHER FOOTWEAR<br />

‘000’PAIRS<br />

AUP/PAIR<br />

6,919<br />

109,761<br />

15.86<br />

6,384<br />

89,085<br />

13.95<br />

-7.73%<br />

-18.84%<br />

-12.04%<br />

OTHER LEATHER<br />

MANUFACTURES<br />

‘000’KGS<br />

AUP/KG<br />

1,068<br />

13,988<br />

13.10<br />

13,114<br />

-6.25%<br />

TOTAL : 1,195,813 977,387 -18.27%<br />

Source: Pakistan Bureau of Statistics.<br />

Leather Industry demands waiving of 3% import duty on raw materials<br />

Pakistan leather exports declined by<br />

26 percent, leather apparel and<br />

clothing by 12.36 percent, leather<br />

gloves by 11.44 percent, leather<br />

footwear by 18.84 percent, other<br />

leather manufacturers by 6.25 percent<br />

and overall average decline remained<br />

at 18 percent during the 2015-16.<br />

Top office-bearers of leather<br />

manufacturers and exporters<br />

associations told media that if<br />

obstacles faced by the industry were<br />

not addressed on war footing, exports<br />

would further plunge.<br />

Chairman, Pakistan Tanners<br />

Association Gulzar Firoz has pointed<br />

out that contrary to practices in other<br />

countries, government has imposed<br />

three percent import duty on raw<br />

materials - hides and skins, resulting<br />

in increase in cost of production. The<br />

industry stakeholders further blamed<br />

the government for failure to provide<br />

a level playing field, which has<br />

resulted in making the industry<br />

uncompetitive in the region.<br />

The government allows three percent<br />

rebate and duty drawbacks for leather<br />

industry however it is 10 to 11<br />

percent in India and Bangladesh, thus<br />

putting the industry at a disadvantage<br />

in the international market. Further<br />

three percent custom duty on import<br />

TRADE CHRONICLE - <strong>July</strong>~Aug <strong>2016</strong> - Page # 24<br />

of raw hides and skins should be<br />

waived. The government had<br />

announced "matching grant for<br />

setting-up of Effluent Treatment<br />

Plants" for leather industry in 2009,<br />

however the incentive was yet to be<br />

given, said Chairman PTA, adding<br />

that huge amounts of the industry<br />

was stuck under that head and the<br />

government should release it<br />

immediately.<br />

US leather related imports stand at<br />

$20 billion, however Pakistan's share<br />

was $102 million, said Firoz, adding<br />

there was dire need to focus on other<br />

markets including US to enhance<br />

exports.


TRADE CHRONICLE<br />

Cement Industry<br />

Industry despatches 33m tons of cement<br />

to local markets in 2015-16<br />

Cement industry despatched 33<br />

million tons of cement in local markets<br />

during the financial year 2015-16<br />

posting a robust growth of 17.01<br />

percent compared with the local<br />

despatches during the same<br />

period of last financial year<br />

when these stood at 28.2<br />

million tons.<br />

Cement despatches to<br />

domestic markets during<br />

the month of June <strong>2016</strong>,<br />

increased by 9.2 percent to<br />

2.96 million tons compared<br />

to 2.71 million tons during<br />

same month last year. The<br />

comparatively lower<br />

growth in June <strong>2016</strong>, was<br />

mainly due to the holy<br />

month of Ramazan as<br />

construction activities<br />

slowdown in Ramazan, said a monthly<br />

report released by the All Pakistan<br />

Cement Manufacturers Association<br />

on Saturday.<br />

Exports during June <strong>2016</strong> were<br />

387,060 tons against 552,867 tons<br />

during June 2015 showing massive<br />

decline of 30 percent. Total despatches<br />

during June <strong>2016</strong> were 3.35 million<br />

tons compared to 3.26 million tons<br />

during same month last year showing<br />

a marginal increase of 2.57 percent,<br />

mainly affected due to substantial<br />

downfall in exports, the report further<br />

added.<br />

However during the financial year<br />

2015-16, exports from the country<br />

massively declined by 18.38 percent<br />

to 5.87 million tons compared with<br />

exports during last fiscal year that<br />

were 7.2 million tons. Exports to India<br />

have increased by 42.53 percent to<br />

992,631 tons during fiscal year 2015-<br />

16 against 696,417 tons during last<br />

fiscal.<br />

However, the decline in exports to<br />

Afghanistan by 15.1 percent and via<br />

sea to other countries by 32.68 percent<br />

affected the overall exports of the<br />

country. Likewise, increased<br />

competition on global level coupled<br />

with economic slowdown in countries<br />

where Pakistan has been exporting<br />

reduced the country’s exports by sea<br />

to 2.44 million tons during fiscal year<br />

2015-16 compared to 3.62 million<br />

tons during last fiscal, data added.<br />

Total despatches during fiscal year<br />

2015-16 showed a growth of 9.82<br />

percent compared to last fiscal year<br />

as the volume increased to 38.87<br />

million tons against 35.34 million tons<br />

from <strong>July</strong> 2014 to June 2015.<br />

Cement sector closed the financial<br />

year 2015-16 on a positive note. The<br />

only sour point was the additional tax<br />

imposed in budget <strong>2016</strong>-17 that<br />

increased the cement price by Rs 35<br />

per bag.<br />

Industry circles feared that<br />

additional excise duty<br />

imposed in federal budget<br />

<strong>2016</strong>-17 might dampen the<br />

construction activities. They<br />

said that there was no need<br />

to increase the tax as<br />

cement is already the most<br />

heavily taxed commodity<br />

in Pakistan.<br />

They apprehended that<br />

Iranian cement might make<br />

further inroads in Pakistani<br />

markets in view of lax<br />

border checks on<br />

smuggling and highly liberal attitude<br />

of authorities on under invoicing.<br />

Cement industry lost approximately<br />

one million tons of volume due to<br />

smuggled Irani cement coming into<br />

Balochistan and other coastal areas.<br />

This trend is going up despite several<br />

letters on this<br />

matter but no positive step to curb the<br />

smuggling issue has been taken by<br />

the government, they added.<br />

A spokesman of APCMA said that<br />

sharp decline in cement exports should<br />

be an eye opener for the policy makers<br />

of the country. APCMA’s<br />

spokesperson appealed the<br />

government to support local<br />

manufacturers in winning back their<br />

markets by giving freight/<br />

transportation subsidy enabling them<br />

to compete on global level.<br />

TRADE CHRONICLE - <strong>July</strong>~Aug <strong>2016</strong> - Page # 25


TRADE CHRONICLE<br />

Fertilizer & Petrochemical Industries<br />

The Fauji Fertiliser Company has<br />

announced half yearly results amid<br />

unprecedented adverse market<br />

conditions. The urea industry has<br />

remained under severe pressure during<br />

the period. This is mainly attributed<br />

to poor farm economics and persisting<br />

rumors of urea subsidy that negatively<br />

impacted urea sales.<br />

Thus, the urea market has witnessed<br />

a substantial decline of around 36<br />

percent in sales, which is the lowest<br />

half yearly offtake in more than a<br />

decade. In spite of volatile market<br />

conditions, the company recorded net<br />

earnings of Rs 4.89 billion for the<br />

period ending on June 30, in spite of<br />

levy of a three-percent super-tax and<br />

absorption of part of fertiliser subsidy<br />

announced by the government.<br />

Fauji Fertilizer Bin Qasim Limited<br />

(FFBL) posted a loss of Rs621<br />

million during the quarter because<br />

of decline in sales and an increase<br />

in the cost of business.<br />

Fauji Fertiliser announces half yearly results<br />

Although, the company's<br />

core business witnessed<br />

a significant decline<br />

following the abovementioned<br />

factors,<br />

however, the deficit has<br />

been bridged by highest<br />

ever dividend of Rs 2.27<br />

billion received through<br />

associated companies.<br />

The company earned Rs<br />

3.85 per share, while<br />

declaring divided per share of Rs 1.55<br />

and created a new benchmark during<br />

the period in terms of highest ever<br />

urea production of 1.25 million tonnes<br />

with lowest shut down periods which<br />

reflects operational excellence of our<br />

engineers and the management.<br />

The company has also achieved 12.6<br />

FFBL posts gross profit of Rs. 359.85 million<br />

income of<br />

t h e<br />

company<br />

during this<br />

period.<br />

million man-hours of safe operations<br />

without lost work injury. The rising<br />

inventory and high cost of production<br />

continue to pose substantial risk to<br />

the company's profitability; however,<br />

the management is committed to<br />

mitigate the negative impact of the<br />

current business environment through<br />

various strategies.<br />

In its condensed interim consolidated<br />

profit and loss statement sent to the<br />

Pakistan Stock Exchange recently,<br />

the company announced a loss of<br />

Rs621.26 million, a decline of 153<br />

percent as against the profit of<br />

Rs1.18 billion during the<br />

corresponding period of 2015.<br />

Loss per share (EPS) was posted at<br />

67 paisas against the earnings per<br />

share of Rs1.26 during the quarter<br />

ended June 30, 2015.<br />

A decline in the sales and increase<br />

in the cost of production hit hard<br />

During the<br />

period<br />

under<br />

discussion<br />

review, net<br />

sales of<br />

FFBL fell down 39 percent to Rs7.45<br />

billion as compared to Rs12.19<br />

billion in the same quarter a year<br />

ago. However, an increase in the<br />

cost of sales to Rs7.09 billion<br />

damaged the gains. Thus, the<br />

company posted a gross profit of<br />

Rs359.85 million against profits of<br />

Rs2.19 billion in the same quarter<br />

last year.<br />

Administrative and other expenses<br />

transferred the profit into losses, as<br />

these expenses increased to Rs939.53<br />

million from Rs863.91 million. A<br />

huge increase in the other income<br />

filled up some gap of losses, as it<br />

increased by almost 121 percent to<br />

Rs1.40 billion from Rs635.42<br />

million during the same quarter of<br />

the last year.<br />

TRADE CHRONICLE - <strong>July</strong>~Aug <strong>2016</strong> - Page # 26


TRADE CHRONICLE<br />

People & Events<br />

Syed Murad Ali Shah took the oath<br />

of office of the new chief minister<br />

of the province.Sindh Governor Dr<br />

Ishratul Ebad Khan administered<br />

the oath to the chief minister at a<br />

ceremony at the Governor’s House.<br />

Murad Ali Shah takes oath as chief minister Sindh<br />

The oath-taking ceremony was<br />

attended among others by Chairman<br />

of Pakistan People’s Party Bilawal<br />

Bhutto Zardari, former prime<br />

ministers Yousuf Raza Gilani and<br />

Raja Pervaiz Ashraf, the Leader of<br />

the Opposition in the National<br />

Assembly, Syed Khursheed Ahmed<br />

Shah, former chief minister Qaim<br />

Ali Shah, the Speaker of Sindh<br />

Assembly, Agha Siraj Khan Durrani<br />

Sindh Governor Dr. Ishratul Ebad Khan administering oath to the newly-elected Sindh<br />

Chief Minister Syed Murad Ali Shah during a ceremony at the Governor House recently.<br />

and the Director-General of Sindh<br />

Rangers Major-General Bilal<br />

Akbar.<br />

Murad Ali Shah succeeded Qaim Ali<br />

Shah who had been the chief minister<br />

of the province since May 30, 2013.<br />

Air Marshal Asad Lodhi<br />

appointed Vice Chief of Air Staff<br />

Regional Air Command. In his staff<br />

appointments, he has served as<br />

Director Strategic Operations,<br />

Assistant Chief of the Air Staff<br />

(Operation, Research and<br />

Development), Director General at<br />

Ministry of Defence Production and<br />

Director General Projects at Air<br />

Headquarters Islamabad. He has also<br />

served as Defence Attaché to Japan.<br />

Uzma Adil appointed<br />

Ogra chairperson<br />

Government of Pakistan has<br />

appointed Air Marshal Asad Abdur<br />

Rehman Khan Lodhi as Vice Chief<br />

of the Air Staff, Pakistan Air Force.<br />

Lodhi was commissioned in the GD<br />

(P) Branch of Pakistan Air Force in<br />

March, 1982.<br />

He is a qualified Flying Instructor<br />

and during his illustrious career, he<br />

has commanded a Fighter Squadron,<br />

an Operational Air Base and a<br />

He is a graduate of Combat<br />

Commanders' School, Air War<br />

College and National Defence<br />

University.<br />

He holds Master's degrees in Strategic<br />

Studies and Defence & Strategic<br />

Studies. Presently, he is serving as<br />

Deputy Chief of the Air Staff<br />

(Support) at Air Headquarters<br />

Islamabad. In recognition of his<br />

meritorious services, he has been<br />

awarded Hilal-i-Imtiaz (Military).<br />

Prime Minister Muhammad Nawaz<br />

Sharif approved the appointment of<br />

Ms Uzma Adil as Chairman Oil and<br />

Gas Regulatory Authority (OGRA).<br />

Uzma Adil served as Managing<br />

Director Sui Northern Gas Pipelines<br />

Ltd (SNGPL) and its Chief Finance<br />

Officer. OGRA’s chairman Saeed<br />

Ahmed Khan retired on April 15. The<br />

government had constituted a five<br />

member committee to select a suitable<br />

candidate for the authority.<br />

TRADE CHRONICLE - <strong>July</strong>~Aug <strong>2016</strong> - Page # 27


TRADE CHRONICLE<br />

Newly<br />

appointed Chairman<br />

Wapda<br />

Newly-appointed Chairman of Water<br />

and Power Development Authority<br />

(Wapda) retired Lt Gen Muzamil<br />

Hussain assumed the charge of his<br />

office recently. Mr Hussain is the<br />

22nd Wapda chairman who has<br />

replaced Mr Zafar Mahmood. Mr<br />

Mahmood had resigned from the post<br />

after serving the authority for more<br />

than two years.<br />

Euronet Pakistan<br />

appoints Salman Khan<br />

as Country Manager<br />

Euronet Pakistan, part of Euronet<br />

Worldwide, has appointed Mr Salman<br />

Khan as Country General Manager<br />

to head its Pakistan operations. Mr<br />

Khan is a seasoned Business<br />

Executive with more than 20 years<br />

of experience in the Technology<br />

sector. In his previous leadership<br />

roles, he has worked with Unisys and<br />

Hewlett Packard and holds a Masters’<br />

Degree in Marketing from Embry<br />

Riddle Aeronautical University –<br />

Miami, Florida.<br />

Justice<br />

Mansoor Ali takes oath<br />

as LHC CJ<br />

Justice Syed Mansoor Ali Shah has<br />

taken oath as the 45th Chief Justice<br />

of the Lahore High Court in a<br />

ceremony. Punjab Governor Malik<br />

Muhammad Rafique Rajwana<br />

administered the oath. Those also<br />

present were: Chief Minister Shahbaz<br />

Sharif, the Punjab Assembly Speaker,<br />

judges, provincial ministers, the<br />

Pakistan Bar Council vice chairman,<br />

presidents and office-holders of<br />

LHCBA and others.<br />

Hassan Mansha<br />

appointed honorary<br />

CG of Brazil in Lahore<br />

Chairman, Lalpir Power Ltd Mian<br />

Hassan Mansha was appointed the<br />

Honorary Consul General of Brazil<br />

in Lahore by Claudio Raja Gabaglia<br />

Lins, Ambassador of Brazil to<br />

Pakistan. The Head Office of Nishat<br />

Power Ltd has been established as<br />

the office of the newly-appointed<br />

Consul General. In his speech at the<br />

occasion, Hassan Mansha thanked<br />

Claudio Raja Gabaglia Lins for the<br />

honour and highlighted the vast<br />

opportunities of commerce, cultural<br />

exchange and mutual cooperation<br />

among both countries. As the new<br />

Honorary Consul General of Brazil<br />

in Lahore Hassan Mansha committed<br />

to further strengthen the relations<br />

between Pakistan and Brazil.<br />

Dr Faqir Anjum<br />

appointed Vice<br />

Chairperson PAFDA<br />

The Punjab governor has appointed<br />

Prof. Dr. Faqir Muhammad Anjum,<br />

Government College University<br />

Faisalabad as Vice Chairperson of<br />

Punjab Agriculture, Food and Drug<br />

Authority.<br />

Anwar Iqbal joined<br />

hands with Khalid<br />

Mushtaq Motors<br />

Anwar Iqbal is as well known within<br />

the Chinese auto sector as in Pakistan,<br />

because according to the reports<br />

collected by our team, it is very well<br />

endorsed in China that he has been<br />

the key figure to forge ahead very<br />

close business relations among the<br />

auto industries of China and Pakistan.<br />

Even he introduced, first time Chinese<br />

trucks in Srilankan Market about<br />

fifteen years back. Now with his<br />

joining forces with the newly<br />

established Khalid Mushtaq Motors<br />

(Pvt) Ltd as Chief Operating Officer.<br />

Khalid Mushtaq Motors (Pvt) Ltd is<br />

developing his first automobile<br />

assembly plant in Nooriabad Industrial<br />

Estate. The plant is an state of art and<br />

is designed by Chinese experts. Let<br />

the commuters look forward to some<br />

news breaking events in the 4-wheeler<br />

sector, something he has yet to come<br />

forward with.<br />

TRADE CHRONICLE - <strong>July</strong>~Aug <strong>2016</strong> - Page # 28


TRADE CHRONICLE<br />

AD Khowaja highlights targets for next three months<br />

President of the Karachi Chamber of Commerce and Industry Younus Muhammad Bashir presenting Chamber’s crest to Inspector General<br />

of Police – Sindh, Allah Dino Khawaja during his visit to the Karachi Chamber. Chairman Businessmen Group & Former President<br />

KCCI Siraj Kassam Teli, S.I., Additional Inspector General Karachi Police Mushtaq Ahmed Maher, DIG South Munir Shaikh, Vice<br />

Chairman BMG and former President Haroon Farooki, Senior Vice President KCCI Zia Ahmed Khan, former President KCCI A.Q. Khalil<br />

and Secretary General S.M.H. Rizvi are also seen in the picture.<br />

Inspector General Police – Sindh,<br />

A.D. Khowaja, while highlighting<br />

some of his targets for the next three<br />

months, informed that his first and<br />

foremost objective was to depoliticize<br />

police department and promote merit.<br />

Hence, in order to attain this particular<br />

objective, police officers will now be<br />

recruited purely on the basis of merit<br />

with the assistance from the army<br />

and only after successfully qualifying<br />

in NTS examination. Speaking at a<br />

meeting during his visit to the Karachi<br />

Chamber of Commerce & Industry<br />

(KCCI) on Monday, IG Sindh added,<br />

“Police simply cannot stand on its<br />

feet unless it is completely<br />

depoliticized”.<br />

He said that the Sindh Government<br />

was currently considering revamp<br />

police helpline 15 and to upgrade<br />

surveillance cameras with greater<br />

mega pixel cameras but that can take<br />

up to a year however, efforts will be<br />

made to restore the existing cameras<br />

within the next three months.<br />

Referring to the demand made by<br />

business community pertaining to<br />

enhancing the number of police<br />

officers, he admitted that the number<br />

of police officers was very low for<br />

maintaining peace of a city with a<br />

massive population of 25 million<br />

which keeps on growing day by day.<br />

“At least 20,000 more police officers<br />

were needed to effectively maintain<br />

peace in Karachi but in order to<br />

provide immediate relief, a proposals<br />

has been sent to Sindh government<br />

for urgent recruitment of at least<br />

10,000 officers for Karachi only”, he<br />

added. IG Sindh further informed that<br />

only 2200 traffic police officers were<br />

responsible for controlling the<br />

massive traffic of entire Karachi<br />

which is the basic reason behind the<br />

messy traffic and constants jams in<br />

different parts of the city.<br />

Speaking on the occasion, Chairman<br />

Businessmen Group & Former<br />

President KCCI Siraj Kassam Teli<br />

assured that the Karachi Chamber<br />

will surely support IG Sindh’s<br />

proposal to replace the obsolete Police<br />

Act 1861 which is the basic reason<br />

behind all policing issues.<br />

Police Act 1861 was replaced with<br />

Police Act 2002 but, unfortunately,<br />

the same old 1861 Act was once again<br />

reinstated, he noted and stressed that<br />

the Police Act 2002 should be<br />

implemented at once with some<br />

amendments which would yield<br />

positive results. On the occasion,<br />

BMG Chairman also urged the<br />

government to give arms licenses to<br />

the members of the business<br />

community who are being<br />

recommended by Karachi so that they<br />

could defend their lives and property.<br />

He also underscored the need for<br />

paving a speedy way to effectively<br />

deal with depoliticizing of police and<br />

recruitment purely on the basis of<br />

merit.<br />

Commenting on massive violation of<br />

traffic rules, Siraj Teli said that the<br />

traffic police officers and the public<br />

were equally responsible for the mess.<br />

But, traffic police officers must<br />

intercept the traffic rules violators<br />

and at least issue them a warning<br />

which, if done, would substantially<br />

improve the situation.<br />

Earlier, while welcoming the IG-<br />

Sindh, President KCCI Younus<br />

Muhammad Bashir appreciated the<br />

role played by police department in<br />

Karachi Operation which has resulted<br />

in improving the situation as people<br />

find themselves safer now and it has<br />

been observed that many people, who<br />

went abroad, have started to return<br />

back due to the improved situation<br />

of law and order.<br />

TRADE CHRONICLE - <strong>July</strong>~Aug <strong>2016</strong> - Page # 29


TRADE CHRONICLE<br />

President Korangi Association of<br />

<strong>Trade</strong> & Industry(KATI) Zahid Saeed<br />

said that telecommunication and<br />

growth of Industry now become<br />

interdependent to each other. He was<br />

talking to a delegation of PTCL<br />

Officials visited KATI, headed by<br />

Executive Vice President Business<br />

Zone South Mubashir Naseer<br />

Choudhry and EVP Technical Raza<br />

Hasnain. On this occasion Zahid<br />

Saeed given a brief introduction of<br />

Korangi Industrial Area and related<br />

issues to telecommunication. He<br />

urged that DSL related issued should<br />

be resolved on priority basis of<br />

industrial users, because even a<br />

shortest spam of internet<br />

unavailability can cause big<br />

problems for commercial users.<br />

During the meeting head of<br />

Engro Powergen Thar Limited and<br />

Descon Technical Institute (DTI), in<br />

a collaborated effort to make the Thar<br />

Dream come to life, signed an<br />

agreement on <strong>July</strong> 20th, <strong>2016</strong> to<br />

conduct on-site scaffolding training<br />

of 200 locals. This will serve as a great<br />

opportunity for the people of this<br />

region to become more involved with<br />

the Thar Coal Project which will be a<br />

game changer for Pakistan’s energy<br />

landscape and the people of the<br />

desolate region of Thar. Moreover,<br />

with this Project being undertaken in<br />

the area, skill development and training<br />

of locals will create a sense of<br />

ownership amongst them – this making<br />

them the true custodians of the natural<br />

resources they have been blessed with.<br />

After the success of several skill<br />

development initiatives undertaken by<br />

Sindh Engro Coal Mining Company<br />

for the Thar Coal Project in Block 2,<br />

namely, HTV Drivers’ training at NLC<br />

Telecommunication and<br />

industrial growth become interdependent<br />

President KATI Zahid Saeed presenting shield to EVP PTCL Mubashir Naseer CH. Syed<br />

Wajid Hussain, Zubair Chaya, Farrukh Mazhar, Zaki Ashraf, Raza Husnain and Mirza<br />

Umair Iqbal also present on the occasion.<br />

telecommunication standing<br />

committee of KATI, Shahid Javed<br />

Qureshi briefed PTCL officials about<br />

concerns and problems. He proposed<br />

that PTCL should maintain a separate<br />

Exchange for IA to avoid disturbance<br />

and connectivity issues, KATI is<br />

ready to provide any possible<br />

Engro Powergen Thar Limited<br />

Joins Hands with Descon Technical Institute (DTI)<br />

institute, Islamabad, masonry training<br />

and experienced drivers’ employment<br />

campaign, this is anothermilestonehas<br />

been reached in the journeytowards<br />

skill development and capacity<br />

building of the people of Thar and its<br />

adjoining areas. At the signing which<br />

was held at the EPTL office in Karachi,<br />

Manzoor Zaidi, CFO EPTL said “We<br />

are delighted to be joining hands with<br />

the prestigious training institute of<br />

DTI to enhance the skills and<br />

capabilities of the people of Thar, who<br />

TRADE CHRONICLE - <strong>July</strong>~Aug <strong>2016</strong> - Page # 30<br />

assistance in this regard. EVP PTCL<br />

Mubashir Naseer Choudhry assured<br />

that all complains will be resolved<br />

on priority basis in KIA. Senior Vice<br />

President KATI Syed Wajid Hussain,<br />

Zubair Chaya, Syed Farrukh Mazahar,<br />

Farhan Urrehman, Junaid Naqi and<br />

other office bearers of KATI also<br />

have immense potential to give back<br />

to their communities. On the occasion,<br />

DTI Head Mirza Toheed Iqbal Baig<br />

also shared his thoughts, saying “DTI<br />

is very happy that EPTL has chosen<br />

us to collaborate with them to work<br />

on such a great project. At DTI we<br />

believe in skills for livelihood, and<br />

there seems no better way to help<br />

people from places such as Thar to<br />

emerge from their embryonic state.”<br />

The training will commence in <strong>August</strong>,<br />

after preliminary procedures have been<br />

conducted. This is a unique initiative<br />

being undertaken under the banner of<br />

‘Khushaal Thar’ and will seek to train<br />

over 1,500 locals, in several different<br />

trades required for the skill manpower<br />

requirement for the power plant<br />

project, which is being established by<br />

Engro Powergen Thar Limited and the<br />

mining project which is being<br />

undertaken by Sindh Engro Coal<br />

Mining Company.


TRADE CHRONICLE<br />

The Board of Management (BoM) of<br />

Pakistan State Oil (PSO) convened<br />

on Saturday <strong>August</strong> 13, <strong>2016</strong> at<br />

company’s head office PSO House to<br />

review the company’s performance<br />

for the fiscal year ended June 30,<br />

<strong>2016</strong>. The meeting was chaired by<br />

Mr. Musadik Malik. During<br />

the period under review, PSO<br />

continued its market<br />

leadership position with an<br />

overall Market share of 56.0%<br />

(FY15: 56.8%), despite stiff<br />

market conditions. Market<br />

share of Black Oil products<br />

was 70.6% (FY15: 66.5%)<br />

and White Oil products was<br />

46.8% (FY15: 49.8%).<br />

A growth of 3.4% was witnessed in<br />

overall sales volume of liquid fuels<br />

as compared to last fiscal year, which<br />

was primarily driven by growth in<br />

sales volume of White Oil and Black<br />

Oil by 4.1% and 2.7% respectively.<br />

Major increase was witnessed in<br />

Motor Gasoline sales, which increased<br />

by 9.3% over the last fiscal year amid<br />

lower local petroleum prices and<br />

increased motor vehicle population.<br />

PSO’s Black Oil sales volume<br />

increased by 2.7%; whereas industry<br />

PSO declares after tax profit of Rs 10.3 billion in FY 16<br />

volumes declined by 3.1%, owing to<br />

increased availability of natural gas /<br />

R-LNG to power producers. During<br />

the year, the Company has reported<br />

a Profit after Tax of Rs 10.3 billion<br />

as compared to Rs. 6.9 billion<br />

witnessed last year. The earnings per<br />

share stood at Rs. 37.81 in comparison<br />

to Rs. 25.53 last year. The increase is<br />

mainly due to growth in sales volume<br />

and margins of White Oil products<br />

revised in November 1, 2014 and<br />

reduction in Operating and Finance<br />

cost by 10% and 35% respectively.<br />

However, the said increase was<br />

partially offset by decrease in Black<br />

Oil margins due to reduced price<br />

impact of black oil.<br />

The outstanding receivables of Rs 233<br />

billion (June 30, 2015: Rs 230 billion)<br />

from the power sector, PIA and<br />

SNGPL against supplies of Furnace<br />

Oil, Aviation Fuels and Liquefied<br />

Natural Gas (LNG) continues to put<br />

pressure on already constrained<br />

liquidity position and will be a<br />

challenge as international oil price<br />

increases. The management<br />

continues to work closely<br />

with Ministry of Water &<br />

Power and PIA for timely<br />

realization of due payments<br />

against uninterrupted fuel<br />

supplies to support the power<br />

sector and airline operations.<br />

Based on the performance of<br />

the company, the BoM has<br />

announced final cash dividend<br />

of Rs. 7.5 per share i.e. 75%.<br />

The management of the company<br />

expressed gratitude to its shareholders,<br />

customers, business partners and other<br />

stakeholders for their trust in the<br />

company and to the Government of<br />

Pakistan, especially the Ministry of<br />

Petroleum and Natural Resources for<br />

their continuous guidance and support.<br />

The Managing Director thanked team<br />

PSO for their ceaseless efforts to<br />

ensure uninterrupted supplies of fuel<br />

despite facing challenges.<br />

Ms. Belinda Lewis, British Deputy High Commissioner, Karachi attended a dinner hosted by Mr. Abdul Kader Jaffer, former Pakistan<br />

High Commissioner to UK with Mr. Dall’Orso, French Consul General, Mr. Tariq Jaffer, Mr. Brian Heath, US Consul General, Host<br />

Mr. Abdul Kader Jaffer, Chief Guest Ms. Belinda Lewis, British Deputy High Commissioner, Dr. Farooq Sattar, MQM Leader, Mr. Rainer<br />

Schmiedchen, German Consul General, Professor Dr. Pirzada Qasim Raza Siddiqi, Mr. Mumtaz Hasan Khan, Mr. Zafar A. Khan.<br />

TRADE CHRONICLE - <strong>July</strong>~Aug <strong>2016</strong> - Page # 31


TRADE CHRONICLE<br />

Minister of State for Petroleum and<br />

Natural Resources, Jam Kamal Khan<br />

performed the ground breaking of a<br />

number of natural gas distribution<br />

schemes being implemented by SSGC<br />

in different localities of Gwadar. The<br />

ground breaking ceremony, held at<br />

local hotel in Gwadar was attended<br />

by the local administration, notables<br />

and SSGC executives, engineers and<br />

staff.<br />

The gasification schemes are being<br />

carried out to cover a network of 3.5<br />

kms, that includes localities including<br />

Shamby Ismail Street, Thana Ward<br />

Street, Nagman Ward Street, Model<br />

High School Street, Koh-e-Bund<br />

Street and Dashti Shamby Ismail Ward<br />

Street.<br />

SSGC was represented at the<br />

ceremony by Muhammad Wasim,<br />

Acting DMD (Operations), Saeed A<br />

Larik, Acting Senior GM<br />

(Distribution-Southern Region,<br />

Colonel Shoaib Ahmed (R), Acting<br />

GM (Administrative Services) and<br />

Shahbaz Islam, Acting GM (Corporate<br />

Communications) who also performed<br />

the duties of the event emcee.<br />

In his keynote address, the Minister<br />

of State appreciated SSGC's<br />

commitment to gratify Gwadar so that<br />

the city that holds immense potential<br />

can set itself on the road to<br />

development. He said that it was<br />

SSGC that first provided gas to<br />

Gwadar in 2006 in the form of LPG-<br />

Air Mix Plant that benefited around<br />

984 domestic customers and 2<br />

commercial customers.<br />

The Minister expressed his satisfaction<br />

at the fact that the Company has<br />

continued with the gas expansion<br />

program in Gwadar by implementing<br />

Jam Kamal performs ground-breaking<br />

of Gwadar gas schemes<br />

schemes inside<br />

the city to meet<br />

r i s i n g<br />

consumption<br />

needs. The<br />

Minister said<br />

that Prime<br />

Minister<br />

Muhammad<br />

Nawaz Sharif<br />

and his<br />

government is<br />

determined to see a developed<br />

Balochistan and is committed to<br />

ensure supply of basic amenities to<br />

the province including an<br />

uninterrupted supply of natural gas.<br />

The Minister said that schemes such<br />

as the ones being pursued by SSGC<br />

also provide opportunities for<br />

employment in the area.<br />

In his presentation, Saeed Larik dilated<br />

on the salient features of the project<br />

and stressed that work is fast<br />

progressing on these schemes and is<br />

expected to be completed by<br />

December <strong>2016</strong>.<br />

He said that proposals for other<br />

schemes in Gwadar that shall cover<br />

additional network of 3.7 kms are in<br />

the approval stage and if all goes<br />

according to the plan, work is expected<br />

to start in December <strong>2016</strong>. Larik<br />

Jam Kamal, Minister of State for Petroleum and Natural Resources<br />

mentioned that LPG-Air Mix Plant<br />

in Gwadar turned to be a major<br />

success as it helped provide gas to<br />

those areas that were far from the<br />

distribution grid.<br />

He said that after the commissioning<br />

of gas to Gwadar, similar plants were<br />

set up in Noshki and Surab in<br />

Balochistan. Larik said that once ECC<br />

gives its go-ahead, work will gather<br />

pace on the installation of LPG-Air<br />

Mix plants in Awaraan and Bela in<br />

Balochistan. He said that there are<br />

twenty other regions in Balochistan<br />

where such plants are planned to be<br />

installed in the next few years. Larik<br />

said that the LPG-Air Mix plant in<br />

Gwadar has a storage capacity of 60<br />

metric tonnes that is being enhanced<br />

by installing a separate tank.<br />

In his speech, Mohammad Wasim,<br />

SSGC's Acting DMD (Operations)<br />

reiterated the Company's is committed<br />

towards providing gas to every nook<br />

and corner of Balochistan so that the<br />

sense of deprivation of the people of<br />

province can be addressed. He said<br />

that SSGC shares a common vision<br />

with the Governments of Pakistan to<br />

take Balochistan on the road to growth<br />

and development and will continue<br />

to cooperate with the provincial<br />

governments and local administrations<br />

in this regard.<br />

TRADE CHRONICLE - <strong>July</strong>~Aug <strong>2016</strong> - Page # 32


TRADE CHRONICLE<br />

Banking & Insurance News<br />

NBP profit increases by 25 percent<br />

The meeting of the Board of Directors<br />

of National Bank of Pakistan was<br />

held recently at bank's Head Office<br />

in Karachi in which the BoD<br />

approved the financial statements of<br />

the bank for the half year ended June<br />

30, <strong>2016</strong>. Bank's after-tax profit<br />

increased by 25.3% to Rs 9.5 billion<br />

compared to Rs 7.5 billion for the<br />

corresponding period of 2015. This<br />

translates into earnings per share of<br />

Rs 4.44 as against Rs 3.54 for the<br />

corresponding half year 2015.<br />

Keeping its momentum for growth,<br />

the bank, recorded a pre-tax profit of<br />

Rs 16.5 billion ie 9.2% higher against<br />

Rs 15.13 billion for the corresponding<br />

half year of 2015. Pre-tax and aftertax<br />

return on equity were 29.1%<br />

(1H'15:27.9%) and 16.6%<br />

(1H'15:13.9%) respectively; whereas<br />

the pre-tax and after tax return on<br />

assets remained 1.9% and<br />

1.1%respectively. Despite a continued<br />

reduction in the discount rate during<br />

the period, bank's net interest income<br />

increased by 11.4% to Rs 27.6 billion<br />

against Rs 24.8 billion in 1H'15. This<br />

was achieved through maintaining an<br />

efficient assets-mix of high-yield<br />

loans and investments.<br />

Fee/commission income amounted<br />

Rs 7.04 billion ie 23.2% higher than<br />

Prime Minister Muhammad Nawaz Sharif being briefed on the transformation and growth<br />

of National Bank of Pakistan (NBP) at NBP headquarters at Karachi on 19th <strong>August</strong> <strong>2016</strong>.<br />

Rs 5.7 billion for the corresponding<br />

half year 2015. Significant balance<br />

sheet growth was also recorded during<br />

the period as the balance sheet footing<br />

touched Rs 1,905 billion as of June<br />

30, <strong>2016</strong> ie 11.6% higher than Rs<br />

1,706 billion as of December 2015.<br />

Gross advances increased by 7.2%<br />

to Rs 742 billion against Rs 692<br />

billion as of December 2015. Deposits<br />

increased by around 10% to Rs 1,399<br />

billion as against Rs 1,274 billion as<br />

of June 2015 with 77.6% being<br />

domestic CASA deposits.<br />

During the period under review,<br />

deposits of the Islamic Banking<br />

branches increased by 60% from Rs<br />

12.7 billion as of December 2015 to<br />

Rs 20.3 billion at the end of 1H '16.<br />

Bank's network now consists of 1,403<br />

domestic branches.<br />

This includes Islamic banking<br />

branches network of 112 branches up<br />

from 79 in December 2015. Bank has<br />

now installed 1,188 ATMs and<br />

installation of another 125 ATMs is<br />

expected to be completed in <strong>2016</strong>.<br />

The bank is offering Bancassurance,<br />

and is soon launching its Debit Card<br />

and other alternate delivery channels<br />

like mobile banking, internet banking<br />

and fund transfers through ATMs.<br />

NBP signs support<br />

agreement with<br />

Karandaaz Pakistan<br />

National Bank of Pakistan (NBP) and<br />

Karandaaz Pakistan signed a support<br />

agreement on <strong>August</strong> 18th, at the<br />

Head Office of NBP in Karachi, to<br />

work towards creating a Digital<br />

Financial Ecosystem by undertaking<br />

multiple initiatives including Strategy<br />

& Technology.<br />

The signing ceremony was attended<br />

by the Senior Management from both<br />

sides including Mudassir H Khan –<br />

SEVP/Group Chief CRBG - NBP,<br />

Azfar Jamal, EVP/Head –Payment<br />

Services & E-Banking– NBP, Imdad<br />

Aslam, Director Digital Financial<br />

Services (Karandaaz Pakistan) and<br />

Aasim Akhtar – EVP/Head of<br />

Network Planning & Service Quality.<br />

Karandaaz will work with NBP to<br />

develop digital channel strategy for<br />

NBP and will entail the development<br />

of Mobile Financial Services (MFS)<br />

platforms enabling Digital Wallet<br />

creation on multiple channels such<br />

as USSD, smartphone application,<br />

biometric &debit cards etc.<br />

TRADE CHRONICLE - <strong>July</strong>~Aug <strong>2016</strong> - Page # 33


TRADE CHRONICLE<br />

HBL, Pakistan’s largest bank,<br />

launched its 75th anniversary<br />

celebrations, in a special ceremony<br />

held at the HBL Plaza in<br />

Karachi.<br />

The event was attended by<br />

Sultan Ali Allana (Chairman,<br />

HBL) along with the Bank’s<br />

senior management to celebrate<br />

HBL’s past and embrace its<br />

bright future. The history of<br />

HBL is tantamount to the<br />

history of the banking industry<br />

in Pakistan. HBL was the first<br />

commercial bank to be<br />

established for the Muslims of<br />

the Indo-Pak subcontinent in<br />

1941, and today it is the largest<br />

bank in the country.<br />

HBL’s inception has been<br />

inextricably linked with the<br />

origin of Pakistan and<br />

consequently, it has always<br />

been an institution that has<br />

played a significant role in the<br />

nation’s economic progress.<br />

With a rich heritage over 75 years,<br />

HBL is now looking towards an even<br />

brighter future with boundless<br />

opportunities. The Bank aims to<br />

continue serving the nation and all<br />

the regional markets where it operates<br />

with a focus on the needs of its<br />

HBL celebrates its 75th anniversary<br />

customers and the resolve to inspire<br />

them to dream and do more.<br />

Speaking at this occasion Sultan Ali<br />

Allana (Chairman, HBL) said,<br />

“HBL’s outstanding journey from<br />

1941-<strong>2016</strong> is an accomplishment,<br />

which the HBL fraternity is honoured<br />

to be associated with. Spanning over<br />

seven extraordinary decades, HBL<br />

has set an exemplary precedent of<br />

HBL second quarter profit up 19.5 percent<br />

providing effortless services to<br />

Pakistan in the banking and financial<br />

sector.” He further added, “During<br />

these remarkable 75 years, the<br />

Bank saw the dreams of<br />

countless Pakistanis enabled,<br />

and the enrichment of millions<br />

of lives. This is the power and<br />

legacy of HBL. Today, HBL<br />

marches forward to meet<br />

another 75 years, determined<br />

to push the boundaries, test the<br />

limits, and Insha’Allah do more<br />

than any bank has done before.”<br />

Also present at the ceremony,<br />

Naveed Asghar (Chief<br />

Marketing Officer, HBL) said,<br />

“It is a moment of great<br />

happiness, and a reflection of<br />

HBL’s regional and global<br />

standing. On HBL’s 75th<br />

anniversary, we come together<br />

to celebrate the Bank’s myriad<br />

accomplishments and a<br />

strengthened resolution to<br />

continue enriching the lives of<br />

millions more.”<br />

HBL is the largest bank in Pakistan<br />

with over 1,700 branches, 1,900<br />

ATMs, and a customer base<br />

exceeding 8.5 million.<br />

It has presence in over 25 countries<br />

across four continents.<br />

Habib Bank Limited, the largest<br />

scheduled bank of Pakistan,<br />

announced its second quarter net profit<br />

up by 19.5 percent amid an increase<br />

in its net mark up income. In its<br />

interim consolidated profit and loss<br />

statement issued to the Pakistan Stock<br />

Exchange recently, HBL announced<br />

net profit of Rs6.93 billion for the<br />

second quarter ended June 30, <strong>2016</strong>,<br />

as compared to Rs5.80 billion in the<br />

same period the previous year. The<br />

bank also announced interim cash<br />

dividend of Rs3.5 a share, which is<br />

in addition to already paid interim<br />

cash dividend of Rs3.5 a share. The<br />

bank announced earnings per share<br />

of Rs4.71 against Rs3.95 last year.<br />

Despite of the lower interest rates, the<br />

bank earned profit amid an increase<br />

in the net mark up income. The bank<br />

earned Rs35.53 billion in interests as<br />

against Rs35.47 billion last year. It<br />

paid Rs14.29 billion in interests as<br />

compared to Rs15.62 billion. Thus,<br />

net interest income of the bank was<br />

recorded at Rs21.23 billion against<br />

Rs19.84 billion. For the six-month<br />

period ended June 30, <strong>2016</strong>, the bank<br />

posted profit of 15.97 billion,<br />

compared to Rs15.73 billion earned<br />

during the same period last year.<br />

TRADE CHRONICLE - <strong>July</strong>~Aug <strong>2016</strong> - Page # 34


TRADE CHRONICLE<br />

MCB Bank declared ‘Pakistan’s Best Bank’ at Euromoney Awards<br />

MCB Bank Ltd, Pakistan’s leading<br />

private sector bank, was declared<br />

“Pakistan’s Best Bank” at the<br />

Euromoney Awards for<br />

Excellence <strong>2016</strong> ceremony<br />

held in Island Shangri-La,<br />

Hong Kong.<br />

The Award was presented to<br />

President MCB Bank Ltd,<br />

Imran Maqbool by Editor<br />

Euromoney, Clive Horwood<br />

in recognition of the bank’s<br />

robust financial strength and ability<br />

to meet customer needs. Indeed, the<br />

Bank’s capital adequacy of 19 percent<br />

and consistent financial performance<br />

as demonstrated by the 15 percent<br />

growth of its pre-tax profit and 23<br />

percent return on equity in 2015, were<br />

key deciding factors for the Award.<br />

Euromoney’s award decisions are<br />

Profit After Tax of Allied Bank<br />

Limited (ABL) registered a growth<br />

of 17% and reached Rs. 8,601 million<br />

for the half year ended June 30, <strong>2016</strong>,<br />

as compared to Rs. 7,356 million in<br />

the corresponding period of last year.<br />

The Profit Before Tax of the Bank<br />

also increased to Rs.14,705 million<br />

for the half year ended June 30, <strong>2016</strong><br />

as compared to Rs.13,579 million in<br />

the corresponding period of last year.<br />

The Bank’s net interest income during<br />

the half year ended June 30, <strong>2016</strong><br />

increased to Rs.17,705 million from<br />

Rs.17,385 during the corresponding<br />

period of last year. Despite reduction<br />

in average discount rate by 183 bps<br />

during the half year under review, the<br />

growth in net markup income was<br />

mainly supported by reduction in cost<br />

of funding. In view of prudent lending<br />

policies of the Bank, net provision<br />

charge against non-performing loans<br />

made by a committee of senior<br />

journalists, chaired by Euromoney’s<br />

Editor, following the receipt of<br />

detailed submissions from market<br />

participants and extensive year-round<br />

research into the banking and capital<br />

markets in the region.<br />

Euromoney’s Awards for Excellence<br />

cover global categories, best-in-class<br />

awards in all regions and the best<br />

banks in close to 100 countries around<br />

Half-year profit of ABL posts 17pc growth<br />

for the half year ended June 30, <strong>2016</strong><br />

decreased to Rs.180 million as<br />

compared to Rs.542 million in<br />

corresponding period of last year.<br />

Non mark-up/Interest income (NII)<br />

increased substantially by 23% to<br />

Rs.6,970 million from Rs.5,675<br />

million in corresponding period of<br />

last year.<br />

The increase was driven by gain on<br />

sale of securities, which increased to<br />

Rs.2,453 million as against Rs.417<br />

million in corresponding period of<br />

last year and dividend income from<br />

TRADE CHRONICLE - <strong>July</strong>~Aug <strong>2016</strong> - Page # 35<br />

the world. This is the tenth time MCB<br />

Bank Ltd has been awarded a<br />

prestigious Euromoney<br />

Award for being “Pakistan’s<br />

Best Bank”. The Bank was<br />

also declared the “Best Bank<br />

in Asia” by the premier<br />

finance publication in 2008.<br />

Speaking about the Award,<br />

President MCB Bank Ltd.<br />

Imran Maqbool said “This<br />

recognition is testament to<br />

the hard work, untiring<br />

dedication and unflinching resolve<br />

of the entire MCB Bank team to meet<br />

and exceed our stakeholder<br />

expectations. MCB Bank is sincerely<br />

grateful to all our customers,<br />

employees and stakeholders for<br />

supporting us in our journey to<br />

banking excellence and we look<br />

forward to even greater success in<br />

the future.<br />

Bank’s blue chip equity portfolio<br />

which increased by 11% to reach<br />

Rs.1,966 million during the period<br />

under review. In view of active<br />

participation in the interbank market,<br />

the Bank, in its first year of obtaining<br />

“Primary Dealer” status was ranked<br />

amongst the Top 3 Primary Dealers<br />

during FY 2015-16 by State Bank of<br />

Pakistan. The Bank’s deposits<br />

increased to Rs. 772,345 million as<br />

at June 30, <strong>2016</strong> as compared to Rs.<br />

734,596 million as at December 31,<br />

2015. In view of limited quality<br />

lending avenues, net advances<br />

increased by 6% to reach Rs.341,040<br />

million as at June 30, <strong>2016</strong> mainly<br />

driven by increase in commodity<br />

operations and long term finance.<br />

Investments as at June 30, <strong>2016</strong><br />

remained stable at Rs.556,444 million<br />

as compared to Rs.544,349 million<br />

as at December 31, 2015.


TRADE CHRONICLE<br />

Askari Bank earns<br />

Rs1.75bln in Apr-June<br />

Askari Bank Limited has posted a<br />

two percent drop in its earnings to<br />

Rs1.75 billion for the quarter ended<br />

June 30 as its net markup income<br />

fell during the period.<br />

Askari Bank recorded Rs1.79<br />

billion in net profit during the same<br />

quarter a year earlier, said a notice<br />

issued to the Pakistan Stock<br />

Exchange. Earnings per share<br />

(EPS) came in at Rs1.38 for the<br />

second quarter this year as<br />

compared to Rs1.41 last year.<br />

The bank said its net interest<br />

earned revenue fell to Rs3.69<br />

billion in the April-May period<br />

from Rs3.83 billion in the same<br />

period a year ago. However, its net<br />

interest, after provisions, remained<br />

higher at Rs4.12 billion in the<br />

period under review as against<br />

Rs3.67 billion last year.<br />

EFU General Insurance earns after tax profit<br />

of Rs 972 million in first half <strong>2016</strong><br />

The Board of Directors of the EFU<br />

General Insurance Limited<br />

Company at its meeting held on 20<br />

<strong>August</strong> <strong>2016</strong> approved the Half<br />

Yearly Accounts<br />

of the Company<br />

for the period<br />

ended 30 June,<br />

<strong>2016</strong>. The after<br />

tax profit of the<br />

Company was Rs<br />

972 million as<br />

against Rs 1,257<br />

million for the<br />

corresponding<br />

period last year.<br />

The after tax profit has reduced<br />

because of increased incidence of<br />

tax. The Government of Pakistan<br />

has changed the tax structure of<br />

insurance companies and from Tax<br />

Year 2017 income from all sources<br />

are taxed @ 31% whereas till last<br />

year Dividend Income was being<br />

taxed at 12 1/2 % and capital gains<br />

at various slabs minimum was zero<br />

and maximum was 15% depending<br />

on holding period<br />

of securities. Had<br />

there not been<br />

any change in the<br />

tax laws,<br />

earnings per<br />

share would have<br />

been Rs 6/16 as<br />

against reported<br />

earnings of Rs<br />

4/86.<br />

The Board<br />

declared the second interim cash<br />

dividend @ of Rs 1.00 per share ie<br />

10% in addition to already paid first<br />

interim cash dividend of Rs 1.00<br />

per share ie 10%, making total<br />

distribution for the period to 20%<br />

(ie Rs 2.00 per share).<br />

Soneri Bank earns Rs1.175bn profit after tax<br />

Soneri Bank Limited posted profit<br />

before tax of Rs.2,048.66 million and<br />

profit after tax of Rs.1,175.51 million<br />

for the half year ended 30 June <strong>2016</strong>.<br />

These amounts are higher than the<br />

corresponding period last year by<br />

7.07 percent and 6.13 percent<br />

respectively. The Board in its 150th<br />

meeting held on 16th <strong>August</strong> <strong>2016</strong>,<br />

approved the Bank’s half yearly<br />

financial statements.<br />

During the period deposits grew by<br />

9.18 percent closing at Rs.202.22<br />

billion (December 2015: Rs.185.22<br />

billion). Net advances grew by 3.47<br />

percent to Rs.115.88 billion<br />

(December 2015: Rs.112.00<br />

billion).The<br />

Bank’s net<br />

a s s e t s<br />

(including<br />

surplus)<br />

amounts to<br />

Rs.18.07 billion<br />

as at 30 June<br />

<strong>2016</strong>.<br />

The Bank<br />

continues to<br />

follow a prudent<br />

policy of<br />

m a k i n g<br />

provisions against infected loan<br />

portfolio in line with regulatory<br />

requirements Soneri Bank has a<br />

unique market position in tradefinance<br />

and transactions banking<br />

services and boasts a loyal and<br />

satisfied client-base in all its 277<br />

branches all over the country.<br />

TRADE CHRONICLE - <strong>July</strong>~Aug <strong>2016</strong> - Page # 36


TRADE CHRONICLE<br />

DIBPL signs<br />

BancaTakaful<br />

agreement with<br />

Adamjee Life<br />

Dubai Islamic Bank Pakistan Limited<br />

(DIBPL), and Adamjee Life<br />

Assurance Company Limited (AL)<br />

have entered into a corporate<br />

BancaTakaful agreement enabling a<br />

landmark distribution alliance.<br />

DIBPL is a wholly-owned subsidiary<br />

of Dubai Islamic Bank UAE, world’s<br />

first Islamic Bank.<br />

AL is one of the leading Window<br />

Takaful operators in Pakistan.<br />

The signing ceremony was held at a<br />

hotel in Karachi in the presence of<br />

senior officials from both<br />

organizations including Mr. Fredrik<br />

De Beer (CEO - AL) and Junaid<br />

Ahmed (CEO - DIBPL).<br />

The United Bank Limited recently<br />

reported a 23 percent increase in its<br />

second quarter net profit, amid an<br />

increase in the net mark up earned.<br />

In its consolidated condensed interim<br />

profit and loss statement for the<br />

quarter ended June 30, <strong>2016</strong>, issued<br />

to the Pakistan Stock Exchange, the<br />

company reported a net profit of<br />

Rs7.03 billion as compared to Rs5.71<br />

billion during the same period of the<br />

last year.<br />

The company also announced interim<br />

cash dividend of Rs3/share. Earnings<br />

per share (EPS) came in at Rs5.68 as<br />

compared to Rs4.46 last year. The<br />

results were above market<br />

expectations. The company said its<br />

total interest earned revenue remained<br />

StanChart Pakistan receives<br />

'Best Digital Islamic Bank <strong>2016</strong>'<br />

Standard Chartered Pakistan has been<br />

recognised as the Best Digital Islamic<br />

Bank in Asia <strong>2016</strong> by Global Finance.<br />

This is the second year in a row that<br />

Standard Chartered has won this<br />

award.<br />

This award is a recognition of<br />

Standard Chartered’s superior Shariah<br />

compliant product suite and digital<br />

banking capabilities which are<br />

unmatched in the market.<br />

Standard Chartered was the first<br />

international bank to get an Islamic<br />

Banking license in 2004 and to open<br />

the first Islamic Banking branch in<br />

Pakistan. Our Islamic Banking<br />

innovation capability is reflected in<br />

being the first and only bank to offer<br />

a Shariah Compliant Credit Card in<br />

the country. Since inception Standard<br />

Chartered has launched several<br />

products and solutions to meet the<br />

higher to Rs27.09 billion as compared<br />

to Rs24.28 billion. However, interest<br />

expensed also remained higher to<br />

Rs10.82 billion as compared to<br />

Rs9.62 billion.<br />

Thus, net interest income (NII) was<br />

recorded at Rs16.27 billion as against<br />

Rs14.66 billion.<br />

Jehanzaib Zafar, an analyst at BMA<br />

Capital, said NII comes likely on the<br />

back of robust book growth and<br />

increase in private sector credit offtake.<br />

The NII after provisions,<br />

however, was down 4 percent year<br />

on year on account of heavy<br />

provisioning expenses realized (Rs1.8<br />

billion).<br />

Net mark-up income after provisions<br />

remained at Rs16.54 billion, up 23.5<br />

needs of customers looking for<br />

Shariah compliant banking.<br />

Standard Chartered has the best in<br />

class digital banking platform and<br />

offers online transactional<br />

convenience through Internet<br />

banking, Breeze mobile banking,<br />

Straight2Bank and other services<br />

which are not being offered to Islamic<br />

Banking customers in the market.<br />

Standard Chartered Pakistan is able<br />

to offer a unique edge and strengthen<br />

its position as the Shariah compliant<br />

digital bank of choice for clients.<br />

Shazad Dada, Chief Executive,<br />

Standard Chartered Pakistan said,<br />

“We are delighted to have won this<br />

important recognition for our Islamic<br />

Banking services. We are fully<br />

committed to development of this<br />

high growing segment and such<br />

awards further reinforce our resolve<br />

to build world class capabilities.”<br />

UBL profits rise 23pc in Q2<br />

percent against Rs13.39 billion<br />

recorded during the same period a<br />

year ago.<br />

Total non-mark-up income of the<br />

bank also increased to Rs22.64 billion<br />

as compared to Rs19.87 billion in the<br />

same quarter last year.<br />

Umair Naseer, analyst at Topline<br />

Securities, said UBL booked<br />

provisioning reversal against Nonperforming<br />

loans (NPLs) to the tune<br />

of Rs846 million in second quarter<br />

<strong>2016</strong> as against provisioning of Rs1.2<br />

billion in same period last year, which<br />

was contrary to expectations.<br />

Consequently, the bank booked total<br />

provision reversal of Rs275 million<br />

as against provisioning of Rs1.2<br />

billion last year.<br />

TRADE CHRONICLE - <strong>July</strong>~Aug <strong>2016</strong> - Page # 37


TRADE CHRONICLE<br />

NITL declares interim distribution for funds worth Rs90 billion<br />

The National Investment Trust<br />

Limited (NITL), the largest Asset<br />

Management Company of Pakistan,<br />

has declared interim distribution for<br />

all nine funds worth Rs90 billion<br />

under its management for the year<br />

ending June 30, <strong>2016</strong>. The<br />

announcements were made through<br />

a statement issued by NITL recently,<br />

after its board of directors approved<br />

the interim distribution for all nine<br />

funds with assets under management<br />

of around Rs90 billion as on June 14,<br />

<strong>2016</strong>. The board declared an interim<br />

cash dividend of Rs4.50 per unit for<br />

unit holders of NI(U)T for the year<br />

ending on June 30, <strong>2016</strong>, compared<br />

to Rs4.25 per unit for the year ended<br />

on June 30, 2015. The payment of<br />

dividend of Rs4.50 per unit would<br />

involve a cash payout of about<br />

Rs4,500 million among its unit<br />

holders. The size of NI(U)T Fund<br />

stood at about Rs67.10 billion as of<br />

June 14, <strong>2016</strong>. NIT – Islamic Equity<br />

Fund (NIT-IEF): The board declared<br />

an interim dividend of Re0.42 per<br />

unit for the year ending June 30,<br />

<strong>2016</strong>. The size of the fund stood at<br />

about Rs4.71 billion. NIT-State<br />

Enterprise Fund (NIT-SEF): The<br />

board has declared an interim cash<br />

dividend of Re1 per unit for the year<br />

ending June 30, <strong>2016</strong>. The size of<br />

the fund stood at about Rs2.21 billion.<br />

NIT – Equity Market Opportunity<br />

Fund (NIT-EMOF): The board<br />

declared an interim dividend of<br />

Sindh Bank registers 18pc growth<br />

Rs12.50 per unit in the form of cash<br />

for the year ending June 30, <strong>2016</strong>.<br />

The size of the fund stood at about<br />

Rs8.79 billion. NIT Government<br />

Bond Fund (NIT-GBF): The board<br />

has declared an interim distribution<br />

of Re0.75 per unit for the year ending<br />

on June 30 <strong>2016</strong>. The size of the fund<br />

stood at about Rs3.15 billion. NIT<br />

Income Fund (NIT-IF): The board<br />

declared an interim distribution of<br />

Re0.76 per unit for the year ending<br />

on June 30, <strong>2016</strong>. The size of the<br />

fund stood at about Rs2.45 billion.<br />

NIT Government Treasury Fund<br />

(NIT-GTF): NIT Government<br />

Treasury Fund was launched on<br />

January 22, <strong>2016</strong>. The board has<br />

declared an interim distribution of<br />

Re0.20 per unit for the year ending<br />

on June 30 <strong>2016</strong>. The size of the fund<br />

stood at about Rs0.89 billion as of<br />

June 14, <strong>2016</strong>.<br />

The Board of Directors of Sindh Bank<br />

in their meeting held on <strong>August</strong> 10,<br />

<strong>2016</strong> considered and approved the<br />

accounts of the Bank for the half<br />

year ended June 30, <strong>2016</strong>. During<br />

the period under review, the Bank<br />

maintained satisfactory growth in<br />

deposits, advances and<br />

profitability. Deposits increased<br />

to Rs. 99.157 billion as on June<br />

30, <strong>2016</strong> compared to Rs. 84.076<br />

billion as at December 31, 2015,<br />

registering an increase of 18 percent.<br />

Gross Advances increased to Rs<br />

54.087 billion as against Rs 46.708<br />

billion as on December 31, 2015,<br />

registering an increase of 15.8<br />

percent.<br />

Total number of customer Accounts<br />

stood at 385,845 as against 358,084<br />

as on December 31, 2015, an addition<br />

of over 27,761 accounts i.e. increase<br />

of 7.15 percent. Pre-tax profit for the<br />

half year ended June 30, <strong>2016</strong> stood<br />

at Rs 1,215.172 million as against Rs<br />

1,016.752 million earned in the<br />

corresponding period of 2015, thereby<br />

recording an increase of 19.5 percent.<br />

Retrospective imposition (on year<br />

2015) of super tax in the Finance Act<br />

resulted in a decrease of 0.19 paisasin<br />

the earnings per share, which stood<br />

at Rs 0.60. Agricultural credit<br />

disbursement target of Rs. 3,000<br />

million was assigned by SBP for FY<br />

<strong>2016</strong>, against which an amount of<br />

Rs. 3,181 million was utilized, thus<br />

exceeding the target by 6 percent.<br />

Process for listing of the Bank on the<br />

Pakistan Stock Exchange (PSE)<br />

has been started and is expected<br />

to be completed during the later<br />

half of <strong>2016</strong>. Sindh Microfinance<br />

Bank (SMFB), the Bank’s wholly<br />

owned subsidiary was granted<br />

permission to commence<br />

microfinance business on April<br />

15, <strong>2016</strong>.<br />

SMFB has had a successful start by<br />

establishing 2 branches and 6 service<br />

centers and earning an operating profit<br />

of Rs. 9.96 million during the period<br />

ended June 30, <strong>2016</strong>. JCR-VIS Credit<br />

Rating Company has reaffirmed the<br />

Bank’s medium to long term entity<br />

rating of ‘AA’ (Double A) and short<br />

term rating of ‘A-1+’ (A One Plus),<br />

with a stable outlook.<br />

TRADE CHRONICLE - <strong>July</strong>~Aug <strong>2016</strong> - Page # 38


TRADE CHRONICLE<br />

Mobilink to invest<br />

$1bn over 5 years<br />

Mobilink mother or father firm<br />

VimpelCom has stated it’s going to<br />

make investments $1 billion in<br />

Pakistan over the subsequent 5 years,<br />

creating 5,000 jobs.<br />

“We’re enthusiastic about enterprise<br />

prospects in Pakistan. Mobilink has<br />

turn out to be the quickest-rising<br />

enterprise and the most important<br />

subsidiary of VimpelCom,” its CEO<br />

Jean-Yves Charlier informed a press<br />

convention recently.<br />

Telecommunication News<br />

Prime Minister Nawaz Sharif meeting with Jean Yves Charlier, CEO - VimpelCom at the<br />

PM House to discuss Pakistan’s Telecom industry.<br />

A worldwide supplier of<br />

telecommunication providers,<br />

VimpelCom owns cellular<br />

corporations in 14 nations, together<br />

with Mobilink in Pakistan.<br />

Mr Charlier, who’s on a two-day visits<br />

to Pakistan, additionally met Prime<br />

Minister Nawaz Sharif and different<br />

authorities officers to share his firm’s<br />

plans after the Mobilink-Warid merger,<br />

the primary in Pakistan’s telecoms<br />

business.<br />

Easypaisa and JS Bank will have a Strategic Alliance on Branchless Banking. Photo<br />

shows Ali Riaz Chaudhry, President & CEO Tameer Bank and Khalid Imran, President<br />

& CEO, JS Bank at the contract signing ceremony.<br />

“The way forward for Mobilink-Warid<br />

lies in lots of dimensions. The ambition<br />

is to construct the most effective and<br />

widest community providing most<br />

superior 3G [third-generation] and 4G<br />

providers, the VimpelCom CEO stated.<br />

“The thought is to not improve costs<br />

however to turn into digital operator<br />

providing new providers.”<br />

Mobilink now has 50 million<br />

subscribers as in comparison with 38m<br />

earlier than the merger. The corporate<br />

has already invested $5bn in Pakistan.<br />

VimpelCom has additionally entered<br />

right into a $1bn settlement with<br />

Ericsson to improve its IT providers.<br />

Geared-up to further accelerate its pace towards a digital Pakistan and in order to deliver<br />

on its 4G and Internet for All ambitions, Telenor Pakistan has acquired the technology<br />

neutral 850MHz spectrum license at base price of $395 Million. The picture shows Anusha<br />

Rahman, Minister of State for Information Technology & Telecom, presenting the license<br />

to Michael Foley, CEO Telenor Pakistan. Also seen in photo are Rizwan Bashir Khan,<br />

Secretary IT and Telecom, Ministry of Information Technology and Telecom,<br />

MudassarHussain, Member Telecom, Ministry of Information Technology and Telecom,<br />

Dr. Ismail Shah, Chairman PTA, Abdul Samad, Member Compliance and Ethics, PTA,<br />

and IrfanWahab Khan, Telenor Pakistan’s upcoming CEO.<br />

TRADE CHRONICLE - <strong>July</strong>~Aug <strong>2016</strong> - Page # 39


TRADE CHRONICLE<br />

Telecom sector fetches<br />

over $3,976m<br />

investment in four years<br />

Telenor Pakistan automates milk collection<br />

network in partnership with Engro Corp<br />

The telecom sector has fetched more<br />

than $ 3,976 million overall<br />

investment during last four years amid<br />

cellular mobile sector was the main<br />

driver behind this achievement. In<br />

terms of overall investment in telecom<br />

sector, the momentum started in fiscal<br />

year 2013 for up-gradation of telecom<br />

networks for 3G and 4G services, has<br />

continued.<br />

Telecom operators have invested a<br />

significant amount of $ 589 million<br />

during <strong>July</strong>- March 2015-16. Giving<br />

break-up, official sources on Sunday<br />

said main driver behind this<br />

investment was cellular mobile sector<br />

which has invested $ 557.3 million<br />

during the first three quarters of this<br />

year.<br />

The sources said during 2012-13,<br />

cellular mobile sector attracted US<br />

$570.4 million, in 2013-14 $ 1,789.7<br />

million, in 2014-15 $ 977.6 million<br />

and US $ 557.3 during nine months<br />

of this year. The sources said during<br />

2012-13, Long Distance International<br />

(LDI) sector attracted $ 1.9 million,<br />

in 2013-14 US $ 1.8 million, in 2014-<br />

15 $ 12.2 million and $ 3.7 during<br />

nine months of this year.<br />

Similarly, the sources said during<br />

2012-13, Local Loop (LL) sector<br />

attracted US $ 16.1 million, in 2013-<br />

14 $ 14.2 million, in 2014-15 $ 3.9<br />

million and $ 28 million during nine<br />

months of this year.<br />

During 2012-13, Wireless Local Loop<br />

(WLL) sector attracted $ 11.9 million,<br />

in 2013-14 $ 10 million, in 2014-15<br />

$ 7.2 million and nil investment<br />

during first nine months of this year<br />

in this domain.<br />

The picture shows (Left to Right) Rehan Ahmed Akhter, Director B2B & B2C Markets,<br />

Telenor Pakistan; Naz Khan, CFO Engro Corp; Mr. Khalid SirajSubhani, President &<br />

CEO Engro Corp; IrfanWahab Khan, CEO Telenor Pakistan; Imran Hussain, Director<br />

Finance & CFO Engro Foods & Saud Ahmed Pasha, Director Milk Procurement & Agri<br />

Services.<br />

Strengthening its position further as<br />

the country’s most preferred digital<br />

services provider, Telenor Pakistan<br />

has partnered with Engro<br />

Corporation to automate the<br />

nationwide milk collection network.<br />

The project aims to facilitate<br />

Pakistan’s dairy farmers in collection<br />

of payments for their yield by<br />

digitizing the traditional manual<br />

transactions that are tedious and<br />

unsecure.<br />

The contract was signed between<br />

Irfan Wahab Khan, CEO Telenor<br />

Pakistan, and Khalid Siraj Subhani,<br />

President & CEO Engro Corp. The<br />

automation project will facilitate<br />

more than 135,000 farmers at 1,600<br />

Mobile phone imports in Pakistan<br />

have increased by 5.11 per cent during<br />

the first eleven months (<strong>July</strong>-May)<br />

of the current financial year (2015-<br />

16) compared to the same period of<br />

previous year. According to the<br />

Pakistan Bureau of Statistics (PBS),<br />

total imports of mobile phone stood<br />

at $687.249 million while they were<br />

$653.813 million in the same period<br />

last year.<br />

Overall Telecom imports witnessed<br />

Engro milk collection centers across<br />

the country by providing cuttingedge<br />

digital data collection and<br />

payment system. As part of the<br />

project, Telenor Pakistan will provide<br />

special software platform installed<br />

at all of Engro’s Milk collection<br />

centers for recording the data.<br />

Also sharing his thoughts on the<br />

development, Khalid Siraj Subhani,<br />

President Engro Corp, said, “This<br />

partnership is of paramount<br />

importance for Pakistan’s dairy<br />

industry and showcases our<br />

commitment to developing the local<br />

industry by introducing<br />

technological platforms to the rural<br />

communities of Pakistan.<br />

<strong>July</strong>-May mobile phone imports increased by 5.11pc<br />

decline of 0.66 per cent during <strong>July</strong>-<br />

May 2015-16 compared to the<br />

corresponding period of last year.<br />

Total imports were recorded at $1.256<br />

billion compared to $1.265 billion in<br />

the same period in the last year. Other<br />

Telecom apparatus import also<br />

witnessed significant decline of 6.84<br />

per cent during this period as it stood<br />

at $569.459 million during <strong>July</strong>-May<br />

(2015-16) against $611.277 million<br />

during the same period of last year.<br />

TRADE CHRONICLE - <strong>July</strong>~Aug <strong>2016</strong> - Page # 40


TRADE CHRONICLE<br />

Travel World<br />

Prime Minister launches premier service from Aug 14<br />

Prime Minister Muhammad Nawaz<br />

Sharif has inaugurated Pakistan<br />

International Airlines’ (PIA) Premier<br />

Service at Islamabad airport on<br />

Independence Day. The first flight of<br />

the Premier Service departed for<br />

London.<br />

Prime Minister Nawaz Sharif saw off<br />

the passengers of the first flight of the<br />

new service. Finance Minister<br />

Muhammad Ishaq Dar and heads of<br />

PIA and Sri Lankan Airlines were also<br />

present on the occasion.<br />

Prime Minister Muhammad Nawaz Sharif inspecting the plane of Pakistan Premier<br />

Services of PIA at Islamabad International Airport on 14th <strong>August</strong> <strong>2016</strong>.<br />

and Wi-fi facilities also made available<br />

for the passengers.<br />

Timings of flights have also improved<br />

while the number of flights increased.<br />

In a briefing, the Prime Minister was<br />

told that planes for the Premier Service<br />

were acquired from Sri Lanka on wet<br />

lease. PIA had formalised wet lease<br />

of three A-330 aircraft from Sri<br />

Lankan Airlines. The crew and staff<br />

of the Premier Service also got training<br />

from Sri Lankan experts.<br />

Numerous additional facilities have<br />

been provided in planes of the Premier<br />

Service. Liquid-Crystal Displays<br />

(LCDs) were installed at every seat<br />

The Pakistan International Airlines<br />

has included three Airbus A-330<br />

planes in its fleet after signing a wet<br />

lease agreement with Sri Lankan<br />

Airlines.<br />

A spokesman for PIA said that the<br />

national flag carrier formalised the<br />

wet leasing of three A-330 aircraft<br />

from Sri Lankan Airlines at a<br />

ceremony held in Colombo recently.<br />

PIA CEO Bernd Hildenbrand signed<br />

the contract with Sri Lankan Airlines<br />

chairman Ajith Dias and CEO Capt<br />

Suren Ratwatte.<br />

H.E. Syed Ibne Abbas, Pakistan High Commissioner to the UK is cutting the<br />

cake after receiving the passengers and the flight crew flying by “PIA Premier<br />

service” from Islamabad to Heathrow Airport London on 14 <strong>August</strong> <strong>2016</strong>.<br />

He said the<br />

contract had<br />

b e e n<br />

materialised<br />

after a<br />

series of<br />

t a l k s<br />

between the<br />

two sides.<br />

First of the<br />

aircraft will<br />

be delivered<br />

PIA adds three more planes to its fleet<br />

COLOMBO: PIA’s Chief Executive Officer Bernd Hildenbrand (left)<br />

shakes hands with Chairman of Sri Lankan Airlines Ajith Dias after<br />

signing a contract for the wet lease of three A-330 aircraft recently.<br />

to PIA<br />

soon, while<br />

the rest in<br />

the following months. (Continue on Page 42)<br />

TRADE CHRONICLE - <strong>July</strong>~Aug <strong>2016</strong> - Page # 41


TRADE CHRONICLE<br />

Dar reviews PIA’s matters<br />

Finance Minister Senator Ishaq Dar<br />

has chaired a meeting to review<br />

management and financial matters of<br />

Pakistan International Airlines (PIA)<br />

in the light of the revamping plan<br />

envisaged by the government.<br />

Secretary<br />

Aviation<br />

Division,<br />

Muhammad Irfan<br />

Elahi, briefed the<br />

meeting in detail<br />

about the current<br />

financial profile<br />

of PIA and the<br />

r e c e n t<br />

improvement achieved in its operating<br />

performance.<br />

Chief Executive Officer, PIAC, Bernd<br />

Hildenbrand shared with the meeting<br />

efforts to refurbish different aircraft<br />

and informed about the plan to<br />

acquire new aircraft. He informed<br />

that over 90 percent of PIA's flights<br />

were on-time which was praised by<br />

(Continued from page 41)<br />

The aircraft are in very good condition<br />

and will be used for PIA Premier,<br />

giving passengers a better experience<br />

and allowing the airlines to start<br />

regaining its market share, the<br />

spokesman said.<br />

PIA Premier is scheduled to be<br />

launched on Aug 14, initially only<br />

for London. There will be six weekly<br />

Premier flights to London — three<br />

from Islamabad and three from<br />

Lahore.<br />

Later, with addition of more aircraft,<br />

the service will be expanded to other<br />

destinations, he said PIA Chairman<br />

Azam Saigol appreciated efforts of<br />

the PIA team, led by Mr Hildenbrand,<br />

in finalising the contract.<br />

all.<br />

Chairman PIAC, Muhammad Azam<br />

Saigol informed the meeting that<br />

efforts are afoot to improve the<br />

service delivery and overall working<br />

of the airline to bring it to<br />

international<br />

standards.<br />

The finance<br />

minister said that<br />

as a national<br />

airline it was<br />

desired of PIA to<br />

offer travel and<br />

cargo services in<br />

line with international standards. He<br />

said financial discipline along with<br />

quality management would help get<br />

the desired service levels. The<br />

minister added that the government<br />

was fully prepared to support all<br />

efforts aimed at improvement in PIA's<br />

services. He called for continued<br />

efforts to enable PIA to regain its lost<br />

glory.<br />

Rashid new GM<br />

of PC Peshawar<br />

Rashid Rauf Banday has been<br />

appointed as new General Manager<br />

(GM) of Pearl Continental Hotel<br />

Peshawar. Before coming to PC<br />

Peshawar he has served as General<br />

Manager, Pearl Continental<br />

Muzaffarabad. He is associated with<br />

the group since 1992.<br />

Turkish Airline offers<br />

discounted package to<br />

businessmen<br />

The Turkish Airline has signed a<br />

Memorandum of Understanding with<br />

Islamabad Chamber of Commerce and<br />

Industry (ICCI) to offer significant<br />

discounts to ICCI members in<br />

travelling.<br />

This facility would be provided to the<br />

business community for various<br />

destinations of the world for exploring<br />

new avenues of business promotion,<br />

said a statement issued by ICCI<br />

recently.<br />

Mr Yunus Mert General Manager,<br />

Turkish Airline at Islamabad and<br />

President, Islamabad Chamber of<br />

Commerce and Industry (ICC) Atif<br />

Ikram Sheikh signed the MoU in a<br />

ceremony held at Chamber House.<br />

Speaking at the occasion, General<br />

Manager Turkish Airline at<br />

Islamabad,Yunus Mert said that Turkey<br />

and Pakistan had very long cordial<br />

relationship and Turkish people had<br />

special regards and respect for Pakistani<br />

people. He hoped that the discounts<br />

and benefits offered to ICCI members<br />

through MoU would facilitate them to<br />

visit various countries for exploring<br />

new business opportunities.<br />

In his welcome address, President,<br />

ICCI Atif Ikram Sheikh, thanked<br />

Turkish Airline for offering discounted<br />

package to ICCI members as it would<br />

be beneficial to them in exploring new<br />

business prospects.<br />

TRADE CHRONICLE - <strong>July</strong>~Aug <strong>2016</strong> - Page # 42


TRADE CHRONICLE<br />

WE HAVE MOVED!<br />

<strong>Trade</strong> <strong>Chronicle</strong><br />

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Phone: 92-21-34893095,<br />

Auto Phone / Fax: 92-21-34893091<br />

Email: arsidiqi@ptcl.net<br />

TRADE CHRONICLE - <strong>July</strong>~Aug <strong>2016</strong> - Page # 43

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