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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 />
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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 />
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<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
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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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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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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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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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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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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 />
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Phone: 92-21-34893095,<br />
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Email: arsidiqi@ptcl.net<br />
TRADE CHRONICLE - <strong>July</strong>~Aug <strong>2016</strong> - Page # 43