JULY - AUG 2020

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www.tradechronicle.com Vol 67-Issue Nos. 07 & 08 - July - Aug. 2020 Rs. 250/-

th

67 -

In this Issue

Nation celebrates

Independence Day

New shipping policy

Karachi city ruined

by territorial rain

Habasit and Nazer

providing

top-end conveying solutions

Automobile News

Banking & Insurance News

Cement Industry

People Events

Travel World

New shipping policy

2020




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Vol. 67 Issue Nos. 06 & 07

July - Aug 2020

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Nation celebrates Independence Day

COMMENTS

New shipping policy

Karachi city ruined by territorial rain

73 INDEPENDENCE DAY

Message from President Dr. Arif Alvi

Message from Prime Minister Imran Khan

The making of Pakistan: goals and strategies

By: Dr. Hasan Askari Rizvi

National Day of Switzerland

Message by Ambassador of Pakistan to Switzerland

Habasit and Nazer providing top-end conveying solutions

An overview of Import and Exports of Pakistan

By Muhammad Nawaz Iqbal

LEATHER INDUSTRY

Pakistan leather revenues fall by over 8.8 percent in the last financial year 2019-20

Hugo Boss places sportswear order to Sialkot-based firm

PTA Chairman urges restoration of incentives

Bangladesh leather export falls in 10MFY20

Sri Lanka leather exports shrink

India leather industry sees a decline of 11% in FY 19/20

Bangladesh leather industry revenues fall in Fy20

PORTS & SHIPPING

New shipping policy offers incentives to private sector

PNSC changes crew onboard MV Malakand at La Reunion Island

New shipping policy termed excellent step

Govt seeks international contractor to upgrade Gwadar port

KSEW plans to increase ship building repairing capability

Chattogram Port ranks 58th among world’s top 100 busiest container ports

DP World volumes down 3.9% in 1h2020

DP World reaches milestone with container High Bay Store Proof of concept

Automobile News, Banking & Insurance News, Cement Industry,

People Events, Telecommunication News & Travel World

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We begin with the name of Allah the Magnificient

Nation celebrates Independence Day

Pakistani's celebrated Independence Day on August 14 with renewed

determination to work with the spirit of Pakistan Movement to make the

country a real Islamic welfare state for the prosperity of masses.

President Dr Arif Alvi and Prime Minister Imran Khan in their messages,

paid rich tributes to the father of the nation Quaid-i-Azam Muhammad Ali

Jinnah. The latter got Pakistan for Muslims after tireless efforts without

caring for stiff opposition in India.

In their messages, President Arif Alvi and Prime Minister Imran Khan

have sagely called upon the Pakistanis to stand firm and work for the

progress and the prosperity of the country. Yes, we need to stand united

to meet the social, economic and security challenges being confronted by

the nation.

From

the editor’s

desk

On this blissful occasion, experts expressed hope that the new

government, after two years in power, will now vigorously work on

bringing the much-needed reforms in all spheres of governance and fix

chronic maladies so that Pakistan can be transformed into a powerful

economic entity and a democratic state.

It is an undeniable fact that during the several decades, the elite and

vested interest class pushed the country into great turmoil. Despite

becoming a nuclear state, we are ensnared in a deadly debt trap, while the

overwhelming majority of the population lacks in even basic amenities of

life. Wealth and power are concentrated in a few hands, income

disparities are widening, and the main burden of taxes has been on the

less-privileged segments of society. The elite economy supports the rich

and mighty—with every passing day and the rich-poor divide is assuming

alarming dimensions.

However, the nation has always been united under challenging times as

tested in the past. The leading English Dawn in its editorial has rightly

pointed out that on this Independence Day, the country has every reason

to derive a degree of satisfaction from the knowledge that its fight

against the Coronavirus has been a success so far.

ABDUL RAB SIDDIQI

What contributed significantly to the effort was that the government and

opposition, though had bitter foes, understood at some point that

developing a national narrative to counter the infection was crucial to

the fight against the virus which has devastated the global societies and

economies. This example goes to show that a spirit of cooperation and

unity can be invoked and much help both sides to overcome a variety of

challenges that have only grown since the time of independence.

Pakistan is facing significant challenges after COVID 19. Leading

business houses reported losses and reduce salary and laid-off workers.

But, the timely incentive from government and central bank narrowed

the impact, and hopefully, the economic uncertainty would end soon.

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Editorial Comments

New shipping policy

Federal Minister for Maritime

Affairs Ali Haider Zaidi and

Adviser to Prime Minister on

Commerce and Investment

Abdul Razak Dawood unveiled

the amended shipping policy

on August 20. It offers tax

incentives, low-cost financing

to attract new investment in

t h e c o u n t r y ' s s h i p p i n g

industry. As an incentive,

Pakistani flag carrying vessels

in the private sector will be

given preference for berthing

at all Pakistani ports.

"This will also help our

fisheries sector that has the

potential of more than $2

billion, but fish and seafood

exports are currently limited

to only $450m annually. This

will eventually help us

enhance the fishing sector to

deep-sea fishing sector," Zaidi

added.

Before the announcement of

these lucrative incentives,

there was no such document

as the National Shipping

Policy of Pakistan that exists.

T h e r e a r e d i f f e r e n t

ordinances, regulations and

policy documents coming

f r o m v a r i o u s s t a t e

departments that culminate

to make the National Shipping

Policy. Pakistan National

S h i p p i n g C o r p o r a t i o n

Regulations came into effect

in 1984, and Pakistan

Merchant Marine Policy was

implemented in 2001, later

the same was amended in

2019.

However, according to the new

policy, shipping companies if

e s t a b l i s h e d , w o u l d b e

exempted from federal taxes

until 2030, and State Bank of

Pakistan will allow the longterm

finance facility (LTFF)

for importing ships and

vessels, which was earlier

available to exporters.

We hope Pakistan's new

shipping policy would reduce

$5 billion freight bill that the

country pays to foreign

companies for transporting

import and export cargoes.

It may be emphasized here the

country nationalized its

industries in the 1970s,

i n c l u d i n g t h e s h i p p i n g

industry by merging all

companies with the Pakistan

N a t i o n a l S h i p p i n g

Corporation (PNSC). That

decision had shaken the

confidence of the private

sector to invest in the

shipping business, experts

believe. It is the need of the

hour to revive this industry

since we lag way behind our

regional competitors like

Bangladesh and India.

T h e s h i p p i n g s e c t o r

stakeholders termed the

policy as a "good initiative"

a n d c a l l e d f o r i t s

implementation in letter and

spirit. We hoped that local

entrepreneurs would view this

as an opportunity and benefit

from it.

A l l P a k i s t a n S h i p p i n g

Association (APSA) has

welcomed the announcement

and suggested that it is

imperative to monitor the

policy in consultation with

the stakeholders for smooth

sailing of system. The

concerned stakeholders were

lobbying for the last three

years for incentives to be

given to the private sector

since entrepreneurs have the

potential to create more

employment opportunities by

attracting the cargo that is

transported by foreign vessels.

Besides, stakeholders rightly

pointed out that instead of

monopolizing the import of

petroleum products through

the state-owned shipping

firm, the government should

invite bids from the private

sector for transportation of

liquid cargoes.

The announcement of a new

shipping policy is a step in the

r i g h t d i r e c t i o n o f P T I

government and we upbeat

that the private sector would

come forward and take the

pride. The offer of various

concessions is fair, but the

essential aspect for the

development of the shipping

industry is the availability of

ship support services such as

w o r k f o r c e , s t o r e s , d r y

docking, dollar accounts and

repairs, etc.

Expert narrates that over the

years, due to the nonavailability

of local shipping,

t h e s e s e r v i c e s h a v e

deteriorated.

If we want to attract ship

owners to Pakistan, these

services must be improved

and match with international

standards.

A combination of incentives

and cost-effective ship

support services will be

difficult to resist for the

prospective ship owners.

How important this new policy

can be gauged that there were

842 ships in India, 347 in

Bangladesh and 40 in Sri

L a n k a , w h i l e P a k i s t a n

managed with only 11 ships.

Even Iran, despite the

prolonged sanctions, had 100

ships, and Pakistan lags

behind.

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Karachi city ruined

by territorial rain

The heavy monsoon rains

during August have caused

significant loss to life and

property across the Sindh

provinces in general and

Karachi in particular. Traders

claim that businesses in the

rain-hit port city alone had

suffered colossal damages of

around Rs12 billion in just a few

days. People blame that rains

exposed all stakeholders in

Karachi. Country's economic

hub becomes an orphan city,

and illegal encroachment

destroyed drainage system for

personal gain.

The Karachi Chamber of

Commerce & Industry (KCCI)

a n d T h e F e d e r a t i o n o f

Chambers of Commerce &

Industry (FPCCI) have regretted

that heavy rains have inundated

the entire city and severely

damaged the roads and exposed

t h e a l r e a d y - w e a k

infrastructure. Rainwater has

entered factories, warehouses,

people's homes and caused

heavy losses to the business.

The city which contributes

around 70% of the revenues and

is the hub of Pakistan's

economy is left at the mercy of

nature and relief measures are

highly inadequate, they added.

They said it is an extraordinary

situation and requires extra

standard relief measures. They

termed this situation very

alarming and asked the Federal

and Sindh governments to

immediately and urgently take

rehabilitation measures on

firefighting basis to restore

normalcy in Karachi. They also

a p p e a l e d f o r d e v e l o p i n g

comprehensive plans to resolve

the long-standing issues of

K a r a c h i l i k e w a s t e

m a n a g e m e n t , w a t e r a n d

sewerage, mass transit system,

infrastructure and master plan.

Experts, while commenting on

the gravity of weather, suggest

that the last several years,

floods of varying intensity have

become an annual feature in

Pakistan, primarily because of

t h e c h a n g i n g c l i m a t e ,

environmental degradation and

deforestation. Similarly, urban

flooding has become a common

threat for residents of cities

owing to poor town planning

and lack of investment in

infrastructure. On top of that,

the performance of national,

p r o v i n c i a l a n d d i s t r i c t

institutions responsible for

disaster management has been

less than satisfactory when it

comes to extending relief to

affected communities and

helping in their rehabilitation.

Little has changed in this

sphere even after the creation

of disaster management bodies

at the national and provincial

levels after the devastating

Kashmir earthquake in 2005.

Several factors, such as

shortage of financial resources

to acquire machinery and

equipment needed for rescue

work, as well as lack of trained

workforce, are said to be

responsible for their poor

performance whenever disaster

strikes.

The situation demands that the

government formulate an

i n t e g r a t e d s t r a t e g y f o r

mitigating and managing

disasters like floods instead of

confining its response to just

providing relief to the affected

people, which can never be

adequate. It is time the federal

and provincial governments

moved beyond piecemeal,

isolated flood-management

measures, which have until now

been limited mostly to annual

repairs of flood-protection

embankments. The long-term

strategy should focus on

strengthening the flood forecast

system based on the extensive

use of technology — such as the

telemetry system — for more

accurate weather and flood

p r e d i c t i o n s t o p r o t e c t

vulnerable communities. That

s h o u l d b e f o l l o w e d b y

d e v e l o p i n g t h e d i s a s t e r

m a n a g e m e n t a u t h o r i t i e s '

capacity so that the unexpected

natural calamity could be

controlled effectively.

+92-2334893095 & 91

abdul.rab.siddiqi@consultants.ft.com

TRADE CHRONICLE - July .~ Aug. 2020 - Page # 08


73

Independence Day

14

August

Message form

President Dr. Arif Alvi

I wish to extend heartiest

felicitations to my fellow

c o u n t r y m e n o n 7 4 t h

I n d e p e n d e n c e D a y o f

Pakistan. This day reminds us

of the immense sacrifices

rendered by our forefathers,

under the dynamic leadership

of Quaid-e-Azam Muhammad

Ali Jinnah. The day is an

occasion to reaffirm our

resolve to live up to the ideals

of our founding fathers and

pay homage to the heroic

struggle of all workers of Pakistan

Movement. Unlike the past, this

Independence Day is being celebrated in

extraordinarily difficult times as the entire

world has been affected by Corona virus

which had adverse impact on all sectors of

life, i.e. including economy, health, and

education. The pandemic has brought

enormous challenges but we have seen

that our resilient nation has overcome

Message form

Prime Minister Imran Khan

I congratulate the entire

n a t i o n o n 7 4 t h

Independence Day. This

auspicious occasion is a

moment to reaffirm our

p l e d g e t o c o n t i n u e

pursuing the vision of

Q u a i d - e - A z a m

Muhammad Ali Jinnah. The

day is an occasion to pay

tribute to all those sons of

the soil who laid their lives

while defending and

protecting territorial as well

as ideological frontiers of

the motherland.

This day is an occasion to pause and to

reflect as to how far we have been able to

achieve those ideals that led to creation of

an independent state. During past seven

them with a brilliant strategy of smart lock

down. It is must that we continue with the

precautions. We have seen such

challenges in the past, like the earthquake

in October 2005 and heavy

floods in 2010. On this

auspicious occasion, let me

appreciate the spirit of our

countrymen who exhibited

e x t r e m e u n i t y a n d

generously helped the

v i c t i m s o f n a t u r a l

calamities. On this historic

day, I must pay tribute to

our doctors, nurses, health

care workers who saved

the lives of people by

putting their own lives at risk

during the pandemic. Additionally, I also

deeply admire the role of media, Ulema,

NDMA, NCOC, provincial governments,

and law enforcement agencies in creating

awareness and in helping to enforce the

SOPs with regard to Covid-19. The

success of the Ehsaas Program underlines

the fact that people only unite when all

segments are taken care of. Our economy

is improving in every regard, and I am sure

decades of our journey, we have

confronted with various challenges. We

have battled against odds both at

external as well as internal fronts. From

t h e h o s t i l i t y o f a

neighboring country, with

its known hegemonic

intentions, to the scourge

of terrorism and from

coping with natural

calamities to fighting

pandemics, our nation

h a s a l w a y s s h o w n

r e s i l i e n c e a n d

perseverance.

Today, we reiterate our

p l e d g e t o r e m a i n

steadfast and embrace

every challenge holding the torch of

“Unity, Faith and Discipline”. In our efforts

to reach our goal, we are diligently

working to give this country a system of

governance which conforms to the ideals

and objectives of independence. We are

endeavoring to build a system where rule

that we have reached a tipping point in this

regard. As we commemorate this

Independence Day, we should not forget

our brothers and sisters of Indian Illegally

Occupied Jammu and Kashmir (IIOJ&K)

who have been subjected to harsh

brutalities by Indian security forces. India

has been committing gross human rights

violations for over three decades and has

intensified its brutalization with extrajudicial

killings of innocent people in fake

encounters since the imposition of lockdown

on 05 August 2019. India is targeting

all minorities and wants to impose

Hindutva ideology in the country but these

oppressive measures would further

enhance hatred and resentment against

her. I assure the resilient people of IIOJ&K

that Pakistan would continue to support

them in their just struggle for their Right to

Self-Determination as enshrined in the

United Nations Security Council (UNSC)

resolutions. While felicitating the nation, I

call upon every Pakistani to stand firm and

work for progress and prosperity of the

country. We need to stand united to meet

the social, economic and security

challenges being confronted by the nation.

of law prevails. We have chosen “Riyasati-Madina’

as our role model. While we

celebrate this Independence Day, our

hearts are profoundly grieved by the

sufferings of our brethren in IIOJK who are

facing military siege since past one year.

We stand firmly behind our Kashmiri

brethren in their struggle for their right to

self-determination. We will continue to

raise voice of the helpless Kashmiris at all

available forums. We will continue to

sensitize the international community of

grave human rights violations in IIOJK

and the threats to peace and security of

the region posed by the supremacist RSS

ideology pursued by the BJP

government. I am confident that the

struggle and resilience of brave Kashmiris

will culminate into their inalienable right of

self-determination. May Almighty Allah

bless and crown our efforts with success

to rebuild the country in consonance with

the vision of its founding fathers and also

bestow freedom upon our Kashmiri

brethren in IIOJK to complete the agenda

of the partition. Ameen.

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The making of Pakistan: goals and strategies

The establishment of Pakistan as an

independent and sovereign state

represented the march of a community to

nationhood. It also demonstrated the

determination of the predominant majority

of Muslims of British India to establish

their homeland with the objective of

preserving and promoting their

civilizational identity, rights as a distinct

socio-cultural identity and interests in a

society that was dominated by an

unsympathetic majority. They wanted to

set up their preferred politico-economic

and social institutions and processes in

a well-defined territory to ensure a

secure future for them.

Three major factors shaped their

political identity and the struggle to

protect and promote it. These were the

civilizational and cultural heritage and

identity as a Muslim community in

British India; the political experience of

the Muslim elite in British India and their

articulation of the demands of the

Muslim community; and the shared

aspiration which they developed for the

future in the process of formulating and

asserting their distinct socio-cultural

and political identity.

Socio-Cultural Identity: The civilizational

and cultural identity of the Muslim of British

India could be traced back, on the one

hand, to the teachings and principles of

Islam that provided them a theoretical and

intellectual foundation. On the other hand,

the arrival of Muslims to the Indian subcontinent

from Arabia, ie, Arab traders, as

well as from what is today's Central Asia,

Iran and Turkey brought cultural traditions,

life style and food habits that were shaped

by the teachings of Islam and the local

customs of each territory. Most of these

Muslims from "outside" became an

integral part of the society in India,

blending the customs and cultural norms

they brought with them and local

traditions. This process was helped by the

conversions to Islam by local people

belonging mainly to Hinduism and intermarriages

with or without conversions.

The Muslim rule in India created a sense of

nostalgia among the Muslims of this Subcontinent

who projected them as a sociocultural

identity different from local

followers of other religions and the people

of the Arab world, Central Asia, Iran and

By: Dr. Hasan Askari Rizvi

Turkey. They were described as "Indian

Muslims," referring to the Muslim

population of India that shared the

teachings and principles of Islam with the

Muslims living elsewhere and imbibed

some local customs and traditions.

Despite this sharing, the Indian Muslims

m a i n t a i n e d t h e i r s o c i o - c u l t u r a l

distinctiveness which distinguished them

in many respects from the local population

and the Muslims living in the neighbouring

states.

Political Relevance: The distinct Muslim

identity began to gain political relevance

after the British government directly

assumed the responsibilities of governing

India in the post-1857 period. It began to

create a modern state system in India on

the pattern of the British political

experience with an emphasis on

autonomous state institutions and

processes within a framework of a codified

legal and constitutional system. The

gradual induction of open and competitive

induction into civil services and the limited

electoral system created a competition

between the two major communities, the

Muslims and the Hindus. The fact that the

Muslim began to opt for modern education

rather slowly and late in post-1857 period,

mainly on the initiative of what is described

as the Aligarh Movement, they found them

at a disadvantage in this open competition.

Two other factors made the religio-cultural

identity relevant. First, in 1867, the

B e n a r a s b a s e d m o v e m e n t f o r

replacement of Urdu language with Hindi

written in Devanagari script in government

offices alienated the Muslims who

established Urdu Defence Societies in

several cities. Second, in the last

decade of the 19th century, several

Hindu revivalist movements gained

momentum which essentially targeted

the Muslim culture and heritage for

exclusion and emphasized the need of

establishing a puritanical Hindu Cultural

Order.

The growing cultural divergence

between the Muslims and the Hindu

majority population, mainly in North

India, began to manifest more

frequently in the 20th Century. The

partition of Bengal, dividing Bengal into

two provinces in 1905 by the British,

produced two opposite reactions from

the Muslim and Hindu/Congress elite.

T h e M u s l i m s w e l c o m e d t h e

establishment of eastern Bengal as a

separate province because it had a

Muslim majority. The Hindu elite,

including the Congress Party, viewed

the partition of Bengal as a negative

development that divided the "natural

unity of Bengal". Their protest led the

British government to reunite two

Bengals into a single Bengal province in

1911. This decision was criticised

vehemently by Muslim leadership.

These developments led the Muslim elite

to evolve a political strategy to protect and

advance their political rights and interests.

They began to organize them by

demanding separate electorate for

electing Muslim representatives to the

central and provincial legislatures in

October 1906, and two months later, in the

last week of December 1906, All India

Muslim League was established in Dhaka,

to project Muslim perspective on the

political affairs of British India and suggest

measures to protect the rights and

interests of the Muslims.

By the end of the first decade of the 20th

Century, the religio-cultural identities of the

two communities had become relevant to

the politics of British India. The Muslim elite

had come to the conclusions that the

Muslim youth should get modern western

education to compete effectively for the

new governmental and non-governmental

TRADE CHRONICLE - July .~ Aug. 2020 - Page # 10


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opportunities, including the competitive

recruitment to civil services. They also

realized that they will have to create their

own exclusive political forums to bring the

Muslim elite together for deliberations on

their demands for safeguarding Muslim

identity, rights and interests in British Indian

context.

The Changing Strategies: A review of the

Muslim political struggle in British India

shows that it represented continuity and

change. The continuity was in the goals

and the ultimate agenda of their political

struggle. It remained unchanged.

However, the strategies to achieve these

goals changed over time. What brought

about these changes was the political

experience from their interaction with the

Congress Party and the Hindu community

that was often dismissive of the Muslim

League leadership and adopted a

disposition towards their demands that

ranged from negative attitude to downright

hostility.

The goal of the Muslim League elite was to

protect their civilizational and cultural

identity that was inspired by the teachings

and principles of Islam and the

contribution of the Muslims to the history of

mankind. They also demanded adequate

guarantees to ensure the protection of

Muslims rights and interests in any

constitutional and political arrangements

in British India.

The strategies of the Muslim League elite

to achieve these goals changed over time.

Their strategies can enumerate as follows:

Concentrate on modern education and

avoid active involvement in politics. (Sir

Syed Ahmad Khan and the Aligarh

Movement)

Gradual initiation of political activity by the

beginning of the 20th Century; demand for

separate electorate and the formation of

the All India Muslim League

Demand for introduction of a selfgovernment

in India keeping in view its

peculiar political conditions. (1913)

The Muslim demand for constitutional

safeguards and guarantees for Muslim

representation in the assemblies, cabinets

a n d g o v e r n m e n t j o b s . S p e c i a l

arrangements to make sure that the

interests of religious minorities are

protected. (the Lucknow Pact, 1916;

Jinnah's Fourteen points, 1929; The

Roundtable Conferences, 1930-32; and

the 1937 provincial elections and the

working of the provincial governments in

non-Muslim majority provinces, 1937-39).

Separate Homeland demand in March

1940

Willingness to work within the framework

of the Cabinet Mission Plan, especially its

provincial groupings and right to review the

overall arrangements after ten years.

The electoral triumph of the Muslim

League in the 1946 provincial elections.

The Congress Party's refusal to accept the

totality of the Cabinet Mission Plan.

The Muslim League leadership was willing

to work within the framework of single

country provided the Congress Party

acknowledged the distinctive Muslim

religio-political identity and provided

constitutional and legal guarantees to

protect their basic rights and interests in

the constitutional arrangement.

The Muslim League was looking for ironclad

guarantees in India's constitution for

assuring the Muslims that their religiopolitical

identity, national rights and

interests would be protected to their

satisfaction. The Congress Party was not

willing to give any guarantee to the

Muslims to dispel their concerns and fears

o f b e i n g o v e r w h e l m e d b y a n

unsympathetic majority.

Separate Homeland: The political

experience of the Muslim League elite and

activists led them to revise the strategies to

protect and advance their identity, rights

and interests. The worst fears of the

Muslims were stirred by the hegemonic

approach of the Congress ministries in the

provinces (1937-39) where they used state

power to impose Hindu culture and identity

in the name of Indian identity. The Muslims

were alienated to the extent that the

Muslim League moved away from the

federal model to a separate homeland

option.

The underlying assumption for the

separate homeland demand was that the

Muslims of British India were a nation and

as a nation they deserved to have a

separate homeland. Quaid-i-Azam

Muhammad Ali Jinnah said in his

presidential address to the Lahore session

of the Muslim League on March 22-24,

1940: "The problem in India is not of an

inter-communal but manifestly of an

international character, and it must be

treated as such. So long as this basic and

fundamental truth is not realized, any

constitution that may be built will result in

disaster and will prove destructive and

harmful not only to the Musalmans, but

also to the British and Hindus. If the British

government are really in earnest and

sincere to secure the peace and happiness

of the people of this Subcontinent, the only

course open to us all is to allow the major

nations separate homelands, by dividing

India into autonomous national states."

Quaid-i-Azam Jinnah and the Muslim

League offered a new nationalism as an

alternate to the Congress sponsored

nationalism of one nation secular India. He

argued that the Muslims represented a

distinct civilizational and cultural tradition

based on the teaching and principles of

Islam. The differences between these two

nations were so strong that the "pure and

simple" parliamentary democracy could

not function because the electoral

majorities and minorities were more or less

permanent.

Though the demand for a separate

homeland of Pakistan was articulated by

the Muslim League elite for ensuring a

secure future for the Muslims of India,

however they mobilized popular support to

strengthen the credibility of the demand for

a separate homeland. The Muslim League

contested the February 1946 provincial

elections on two major demands: the

M u s l i m L e a g u e w a s t h e s o l e

representative of the Muslims of British

India; and it stood for the establishment of

Pakistan. The election results showed that

these two demands were endorsed by the

Muslims of British India. This electoral

success strengthened the demand for

Pakistan and failed the Congress Party's

attempt to sidetrack the Pakistan demand

by parading some Muslim leaders who

supported the Congress.

Jinnah's vision of Pakistan emphasized:

Pakistan as a homeland to secure the

future of the Muslims of this Subcontinent;

democratic state that derives its

ethical basis from the teachings and

principles of Islam; a liberal and modernist

vision of Islam which accommodated

modern state system and democracy; and

that Islam emphasized socio-economic

justice, the rule of law and participatory

governance and political management.

(Courtesy by: Business Recorder)

TRADE CHRONICLE - July .~ Aug. 2020 - Page # 11


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Special report on

National day of Switzerland

Message

H.E. Ahmed Naseem Warraich

Ambassador of Pakistan to Switzerland

I congratulate

t h e

gover nment

a n d t h e

p e o p l e o f

Switzerland

o n S w i s s

National Day.

Pakistan and

Switzerland

enjoy friendly

r e l a t i o n s .

Both countries regularly exchange

views on matters of interest. Prime

Minister Imran Khan held a meeting

with then Swiss President Ueli Maurer

on the sidelines of 74th UNGA on

September 23, 2019. Prime Minister

Imran Khan also had a brief interaction

with Swiss Foreign Minister Ignazio

Cassis on the sidelines of First Global

Refugee Forum in Geneva on

December 17, 2019.

Foreign Minister Makhdoom Shah

Mahmood Qureshi had telephone

conversations with Swiss Foreign

Minister Ignazio Cassis in August 2019

and May 2020. They discussed

bilateral and regional issues as well as

the Prime Minister’s Debt

Relief Initiative in the wake

of Cvoid-19 pandemic.

bonds of friendship between our two

countries. While the loss of life and

suffering caused by the pandemic

saddens all of us, I take this

opportunity to commend the efforts of

the Swiss government to manage the

unprecedented health emergency.

Pakistan and Switzerland are fully

committed to enhancing long standing

economic partnership. Bilateral trade

between the two countries has seen a

gradual increase in recent years. The

total volume of trade was CHF 542.41

million in 2019. Pakistan’s exports to

Switzerland increased to CHF 168.78

million from CHF 165.99 million in

2018. Swiss investors continue to

maintain interests in Pakistan.

The visit of a delegation of Swiss

b u s i n e s s m e n c o m p r i s i n g

representatives of Swiss SMEs to our

business hubs in Karachi and Lahore in

September 2019 was a manifestation

of our shared desire to further enhance

bilateral economic relations. The visit

helped in exploring business

opportunities through B2B meetings

and company visits. The delegation

also visited 15th “International

Exhibition for Food Equipment &

Technology” in Lahore from September

23-27 2019.

Switzerland supports Pakistan having

a Free Trade Agreement (FTA) within

the framework of the European Free

Trade Association (EFTA) comprising of

Iceland Lichtenstein, Norway and

Switzerland.

The excellence Scholarships offered by

the Swiss Federal Commission for

Scholarships for Foreign Students

(FCS) have enabled our students to

study at world-class Swiss universities

in subjects ranging from humanities to

engineering to AI.

Pakistan community in Switzerland

though small in number yet not only

contributes to the local economy but

also plays key role in strengthening

people to people contracts between

the two countries. Pakistan heritage,

art, fashion, food and film showcased

in Switzerland have been admired by

the Swiss patrons.

I wish peace and prosperity to the

peoples of our two countries.

Happy National Day Switzerland.

In April 2020, digital images

of flags of different

countries were projected

onto the Matterhorn, the

iconic mountain located in

Zermatt Switzerland to

express solidarity with the

countries and peoples

affected by the Covid-19

pandemic. A 100-meter

image of Pakistan’s flag

was projected on April 25,

2020. The thoughtful

gesture reminds us of

TRADE CHRONICLE - July .~ Aug. 2020 - Page # 13


TRADE CHRONICLE

Habasit and Nazer providing

top-end conveying solutions

Headquartered in Reinach, Switzerland,

Habasit is a Swiss manufacturer of timing

and conveyor belts. Their product

portfolio includes a variety of fabricbased

belts, plastic modular belts and

power transmission belts. The group also

supplies gears and motors. Habasit has

more than 30 subsidiaries, 16 production

units and around 250 service providers

and representatives in more than 70

countries.

Founded as “ Technisches Buro Habasit”

(Technical Office Habasit) in 1946 in Basel

by Fernando Habegger and Alice Fluck

(later Mrs. Habegger), the firm started as

a provider of machines, tools and

technical innovations. In 1953 the firm

entered the spindle and machine tape

market, and in 1959 moved to its current

headquarters in Reinach, Basel-Country.

The company was known as Habasit AG

from 1961.

The successful collaboration between

Habasit and Nazer is a result of shared

ideals and vision. Both firms are familyowned

and have an intense customerdriven

approach which makes them the

best solution providers to their customers

u n i q u e c o n v e y i n g a n d p o w e r

t r a n s m i s s i o n i s s u e s . T h i s i s

accomplished by the provision of highquality

power transmission and

conveying solutions for every application.

This cooperation was enhanced when

nazer industries (Private) limited, began

the local fabrication of conveying systems

in Pakistan with know-how from Habasit,

Nazer industries, has positioned itself as

a leading provider for complete

conveying and material handling

solutions to our customers.

we are able to design and implement

effective and efficient resolutions.

A major aspect of the success of Habasit

in Pakistan is also the after sales service

provided through the Nazer team. Here

again, keen customer focus and an indepth

knowledge of, not only the items in

question, but the process as a whole, is

the key to quick and proficient solutions

to any issues that may arise.

Conveyor and machinery belts are

typically an afterthought, often regarded

as just another component part. The

reality is, the belt is the essence of the

Habasit is the worldwide number one in

the belting industry. During decades of

market leadership, they have developed

a broad range of superior products and

services, a profound knowledge base

and experience. Building on these

strengths, they are combining their

dynamic growth with a continuous

extension of their offering. Their totally

customer driven approach makes

Habasit the best provider of high quality

power transmission and conveying

solutions for every application.

The partnership between Nazer & Co.

and Habasit stretches back to the mid-

1970s. Established in 1952 by Mr. Nazer

Mooraj, Nazer & Co. initially started with

agencies from Europe and in the

subsequent years, expanded its portfolio

to include leading textile machinery and

parts manufactures from around the

globe.

Conveying systems, being automated

means of transporting items form one

area to another efficiently, are at the very

h e a r t o f m a n u f a c t u r i n g a n d

industrialization. Often various

processes are carried out while materials

are being conveyed, a system first

attributed to Henry Ford and his

development of the assembly line. This

process revolutionized manufacturing

and with the implementation of more

automated systems, continues to evolve,

providing customers with ever increasing

efficiencies. Without conveyor belts and

other conveying systems many of the

manufacturing and Industrial processes

we take for granted today would not be

possible.

As you can imagine, each conveying

system is unique, dependent on each

customer's distinctive process

requirements. This is where the Habasit

and Nazer collaboration is so successful.

Through experience, technical knowhow,

high quality conveyors, and innovation,

conveyor system. Although the physical

differences from one belt to the next can

be indecipherable to the untrained eye,

the right belt will make or, quite literally,

break your operation.

Providing customers with high-quality

products and having dedicated service

may be an essential feature for success,

but proper dissemination of technical

innovative know-how to the end-user is

also viral. This is again, a distinctive

feature of the habasit and Nazer

collaboration.

Through various seminars and training

workshops, customers are instructed in

the proper use and maintenance of these

high-quality products ensuring the

maximum life and efficient running of

these crucial systems. With our joint

commitment to customers, Habasit and

Nazer will continue to dedicate

themselves to providing high-quality

products, technical know-how and

excellence in after sales service.

TRADE CHRONICLE - July .~ Aug. 2020 - Page # 14


TRADE CHRONICLE

An overview of Import and Exports of Pakistan

By Muhammad Nawaz Iqbal

Prime Minister Imran Khan has said

Pakistan's economy was on the right

track with significant achievements in the

exports sector and foreign remittances.

"This strong turnaround is a result of a

continuing recovery in exports, which

rose 20 percent compared to June 2020,

and record remittances," he said in a

tweet. Earlier, Pakistan's trade deficit

witnessed significant reduction during

the FY2019-20, declining by 27.12% as

compared to the previous year. The

Country's trade deficit during FY2019-20

stood at $23.180 billion against the deficit

of $31.805 billion during FY2018-19.

During FY2019-20, Country's exports

registered approximately 6.81% decline,

falling from $22.958 billion last year to

$21.394 billion during the current year,

whereas the imports decreased from

$54.763 billion to $44.574 billion,

showing a sharp decline of 18.6%.

The export target was set at US$ 26.2

billion for FY2019-20. However, exports

registered a decline of -6.81% during

FY2019-20 as Pakistan's exporters are

facing declining demand in overseas

markets and difficulties in executing

existing orders due to Covid-19. Exports

during FY2019-20 reached US$ 21.39

billion as compared to US$ 22.96 billion

during FY2018-19.

B e f o re C O V I D - 1 9 , t h e e x p o r t

performance was satisfactory both in

terms of products and destination

diversification. In terms of product

diversification, surgical goods and

medical instruments recorded a growth

of 8.3% during July-March FY2019-20. In

contrast, in terms of destination

diversification, Ministry of Commerce has

started to explore new markets,

especially in Africa.

Export and import trends in past

Historical data of Pakistan export and

import show that exports from the

Country for the year 2015-2016

remained at US$21 billion and imports

were at US$44.76 billion for a similar

period. The rising trend was begun when

Pakistan's fares expanded over 100%

from $7.5 billion of every 1999 to remain

at $18 billion in the money related year

2007–2008.

The currency reserves was exclusively

US dollar acquiring hypothesized

misfortunes after the dollar costs fell

during 2005, driving reportedly the then

Governor SBP Ishrat Hussain to step

down. In the equivalent year, the SBP

gave an official proclamation declaring

expansion of stores in monetary

standards including Euro and Yen,

retaining a proportion of enhancement.

Following the global credit emergency

and spikes in unrefined petroleum

products costs, Pakistan's economy

couldn't withstand the weight. Thus on

11 October 2008, State Bank of Pakistan

detailed that the nation's foreign trade

holds had gone somewhere near $571.9

million to $7749.7 million. The unfamiliar

trade saves had declined more by $10

billion to a degree of $6.59 billion. In June

2013, Pakistan was near the precarious

edge of a default on its money related

duties.

CPEC impacts

Import of Pakistan is demonstrating

increasing pattern at a generally quicker

rate because of the expanded financial

movement as a significant aspect of

China Pakistan Economic Corridor

(CPEC), especially in the Energy area.

The development extends under CPEC

require substantial apparatus that must

be imported. It is additionally seen that

the economy is presently being driven

both by ventures just as utilization,

bringing about generally more elevated

levels of imports. During FY 2018,

Pakistan's fares got and came to

US$24.8 billion, indicating the

development of 12.6 percent over the

earlier year FY 2017.

Pakistan saw the most important exports

of US$25.1 billion in FY 2013–14.

However, after that in the following years,

it had started declining extensively. This

fell began from the money related year

2014–15 when a universal product droop

set in. This was intensified by basic

gracefully side limitations including vitality

deficiencies, high information costs and

an exaggerated swapping scale.

From money related the year 2014 to

2016, sends out declined by 12.4

percent. Fares development pattern over

this period was like the world exchange

development designs. Pakistan's outer

segment kept confronting worry during

2016–17. Yet at the same time,

Pakistan's product exchange trades

developed by 0.1 percent during the

financial year 2016–17. The imports kept

on growing at a lot quicker rate and

developed by a massive level of 18.0

during FY 2017 when contrasted with the

earlier year.

World imports had been stale

somewhere in the range of 2011 and

2014 however enlisted a considerable

drop since mid-2015 as a result of a

feeble item and item costs and powerless

worldwide monetary movement. Imports

then again likewise expanded by 16.2

percent and contacted the most

noteworthy figure of US$56.6 billion.

Subsequently, the import/export

imbalance augmented to US$31.8 billion,

which was the most notable since the

most recent ten years. The decrease in

the import substance of monetary action

set off a move in utilization worldwide

from exchanged towards none

x c h a n g e d p r o d u c t s , i m p o r t

replacement, a lull in the pace of

exchange progression, and offered cash

to protectionist measures.

The central part of Pakistan's fares are

coordinated to the Organisation for

E c o n o m i c C o - o p e r a t i o n a n d

Development (OECD) locale and China.

Authentic information proposes a definite

connection between's Pakistani fares to

imports in OECD and China. According to

the FY 2016 information, the more

significant part of the nation's fares is

delivered to these two goals, for example,

OECD and China. A decrease in Pakistan

by and large exports thus happened in

this setting. Exports of Pakistan to Asia

was added up to $ US 1,649 billion which

was 42 percent of its general fares and

the portion of products of the soil markets

in Pakistan's fare was $ US 1,017 billion.

Pakistan has an enthusiasm for

investigating new export items while

China might need to focus on finding new

markets for its current fare merchandise.

To distinguish the items that can be sent

out by Pakistan, China's imports from the

world have been coordinated with

Pakistan's exports to the world and

Pakistan's exports to China.

TRADE CHRONICLE - July .~ Aug. 2020 - Page # 15


TRADE CHRONICLE

Ufone wins two prestigious

Effie Awards

Pakistani Telecom brand, Ufone, added

another feather in its cap by winning two

prestigious Effie Awards recently. Ufone

won a Gold award for Best in Internet &

Telecom category for its SuperCard

campaign Budget bamuqablabefikri

and a Bronze award in Best and Internet

& Telecom for Balochistan Football Cup

2019.

The Budget bamuqabla befikri

campaign highlighted how despite the

rising inflation in 2019, Ufone maintained

a steady price for its SuperCard.

The second award won was for the

Balochistan Football Cup 2019 which

provided a substantial platform to

emerging footballers of the region to

showcase their talent. Both campaigns

were recognized by the jury for the

positive impact they created.

The award reflects the company’s

diverse and innovative marketing

strategies, which have won the hearts of

millions. The brand has also won two

Eventex Global Awards in Gold

categories for Ufone Balochistan

Football Cup this year. Amongst 444

entries from 39 countries, the Pakistani

telecom brand emerged as the winner in

two categories i.e. People’s Choice

Award and Best CSR Event Award.

The Effie Awards are one of the most

prestigious awards of the country which

bring forward most significant

a c h i e v e m e n t s i n m a r k e t i n g

communications.

It celebrates ideas that work and

encourage thoughtful dialogue.

Success of Pakistani telecom operator,

Ufone, at the Effie Awards signifies the

growing impact of the brand and its

commitment to work on ideas which

benefit the common man.

TRADE CHRONICLE - July .~ Aug. 2020 - Page # 16


Leather Industry

Pakistan leather revenues fall by over 8.86 percent

in the last financial year 2019-20

months in a year-ago period. It

translates that tanned leather exports

fell by 22 per cent in terms of value in

the dollar and 27 per cent in terms of

quantity respectively during this export

period.

Pakistan leather industry export

proceeds contracted during the last

fiscal year 2019 – 20 (July – June) by

8.86 per cent to US$ 784.03 million

from US$ 860.32 million, earned in the

corresponding period of July - June

2018-19. Pakistan leather industry

attributed the fall in exports to decline

in trading of finished leather and

products due to COVID -19.

According to the Federal Bureau of

Statistics, tanners have earned

US$184.102 million on export of

16.635 million sqm finished leather

between July 2019 and June 2020 as

compared to US$252.24 million on

21.333 million sqm in similar twelve

Similarly, leather manufacturing,

including export of garments and

leather gloves decreased to

US$473.98 million from US$485.64

million of last fiscal year. This fall in

trading represents a decline of 2.40

per cent on YoY basis.

However, on positive development,

the footwear exports saw a little

growth of 2.86 per cent in terms of

value between July and June 2019-20.

During this period, footwear export

reached US$125.93 million by

exporting of 13.93 million pairs as

against US$ 122.43 million for 13.16

million pairs, shipped in same twelve

months of the previous fiscal year. The

leather footwear accounts for over 90

per cent in footwear exports.

Hugo Boss places sportswear

order to Sialkot-based firm

Luxury brand Hugo Boss - a fashion

giant - had placed its first sportswear

order to Sialkot based leading firm,

Hugo Boss North Zone Pakistan

Readymade Garments Manufacturers

and Exporters Association (PRGMEA)

Chairman Sohail A Sheikh revealed.

Talking to media recently, he said it was

a result of the hectic efforts of the

PRGMEA team especially the chief

coordinator Ijaz A Khokhar. Sohail

added that it is the beginning and

Pakistan will get more orders in a short

span of time.

The PRGMEA North Zone chairman

said keeping in view the gravity of

current situation, we are making

strenuous efforts for exploring

traditional and non-traditional markets

aimed at fetching maximum business

and strengthening the national

economy.

Company Profile

Pakistan’s Sialkot based sportswear

exporter - Rajco Industries has received

an order from Hugo Boss to make t-

shirts for the German national soccer

team. According to Ijaz Ahmed Bhatti

Chief Executive Officer of Company, we

have received the order for the supply of

sport shirts for their [German] football

team and shipment would be made by

August. However, he did not share

details with media about the production

value or volume of the order.

It may be mentioned here that the deal

with Hugo Boss is the result of efforts by

the Pakistan Readymade Garments

Manufacturers and Exporters

Association (PRGMEA), as the

association hosted the International

Apparel Federation’s (IAF) 35th World

Fashion Convention in Lahore last year,

in collaboration with Dutch industry

association Modint. Hugo Boss officials

attended the event as chief guests.

Rajco Industries in one of the leading

sportswear Manufacturing/Exporting

Company Since 1935 across the globe.

It Has Been Serving the sports world

and renowned brand s from decades,

Functioning with its third generation,

who is utilizing the best of their abilities

and contributing into the stream of

innovation and rapidly advancing

sportswear world with the blend of

modern qualifications, experience,

Observation and exposure to the

happenings in the global picture.

The factory comprises of more than

four hundred thousand square feet. It

enjoys complete control processes by

the installation of advanced machinery

imported from German, UK and

America. It possesses a highly-skilled

squad of 2800 employees with superb

Professionalism and strongest

t e c h n o l o g i c a l a p p r o a c h .

TRADE CHRONICLE - July .~ Aug. 2020 - Page # 17


TRADE CHRONICLE

PTA Chairman

urges restoration of incentives

C h a i r m a n , P a k i s t a n Ta n n e r s

Association (PTA), Sheikh Afzal Hussain

has urged Prime Minister Imran Khan to

restore the incentive with further

extension for the reduced gas &

electricity rates for all core five zero

rated sector including leather sector

with immediate effect, with the

adjustment of July- 2020 bills for

facilitation in continuation to this vital

sector of the country to progress

positively in achieving the desired goals

for promotion of exports.

He informed that the incentives for the

reduced tariff for gas & electricity

allowed by the government to all five

zero rated industries of the country

including leather sector has already

been expired in June - 2020, which is

immediately required to be extended

further on priority with the proposed

Indefinite period for leather industry of

Pakistan.

He also shared that the current bills

issued on account of gas & electricity

for the month of July-2020 with the

normal/regular rates with the additions

of extra charges such as Neelam

Jehlam Dam charges, fuel adjustment

etc., etc., resultantly the quantum of

amount for the bill(s) are irrationally

increased with double amount almost

with 80% to 100% amount as

compared to the bill of June-2020,

which is completely unbearable by the

industry under the existing business

climate and rendering the Industry out

of the park from the international market

being in competitive because of high

cost of production.

The tanning industry being mother

industry of the country is already in

severe crisis of declining trend, which is

recorded (-) 27% with the conclusion of

financial year July- June 2019-2020

with corresponding period.

Sri Lanka leather exports

shrink

According to the

E x p o r t

Development

Board (EDB), Sri

Lanka leather

and footwear

industry have

earned US $

1 7 . 3 m i l l i o n

during the period of Jan-Jun-2020,

compared to US $ 46.14 million in

corresponding six months of Jan-

Jun 2019. This translates exports of

leather/footwear contracted by

62.51 percent during this period due

to the impact of COVID-19.

The negative trends in export of

leather/footwear was continued in

June-2020 as well, when exports fell

from US $ 5.73 million in June-2019

to US $ 3.56 million during the month

of June-2020. It shows exports slid

by 37.87 percent. Total export

earning for all commodities from

January to June 2020 was US$

4,362.34 million compared to US$

5,929.74 million recorded in a similar

period of the previous year – a

decline of 26.43%.

Bangladesh leather industry

revenues fall in Fy20

Bangladesh leather industry has earned

export revenue of US $797.6 million

during the last financial year July – June

2019/20 as compared to US$ 1019.78

million earned in the same fiscal in the

previous year. It translates a fall of 21.79

percent on YoY basis due to a drop in

exports of finished leather, products and

footwear during this period, according

to data of Bangladesh Export Promotion

Bureau (EPB).

India leather industry sees

a decline of 11% in FY 19/20

The Indian leather industry’s export

revenue from the just-concluded fiscal year

of April 2019-March 2020 stood at $5.070

billion as against the earning of $5.691

billion in April 2018-March 2019. The total

shipping was recording a decline of

10.90%.

According to the Council for Leather Export

(CLE), the finished leather exports fell from

$ 721.76 million to $524.15 million during

this period – registering a fall of 10.34%.

The leather footwear exports dropped from

$2195.54 million in April 2018 to $2081.64

million in April 2019 to March 2020. It

showed a fall of 41.05%. The earning from

leather garments slid from $468.43 million

to $ 429.11 million by reporting negative

growth of 8.46% during, this fiscal period.

A negative trend of 26.44% was witnessed

in exports of leather goods, which

contacted from $1434.27 million to $

1340.56 million, Saddlery and Harness

from $159.35 million to $151.44 million, -

2.99%. The non-leather footwear from

$392.65 million to $281.97 million, a

negative trend of 5.56% and footwear

components from $319.10 million to $

261.67 million, a negative growth of 5.16%

during this export years.

The break down shows that Bangladesh

exported US$ 98.31 million on exports

of finished leather compared to US $

164.62 million in year-ago twelve

months export period. It shows a fall of

40.28 per cent. The leather footwear

exports also decreased by 21.24

percent to US $ 478.75 million from US$

607.88 million during this reporting

period.

The exports of leather products have

also contracted to US$ 220.55 million

from US $ 247.28 million of same twelve

months last year. It translates a decline

of 10.81 percent on YoY basis.

The Bangladesh Export Promotion

Bureau (EPB) had set an export target

for leather industry at US $1.093 billion

for the financial year 2019-20 (July –

June) compared to US $1.110 billion

earmarked for the previous fiscal year.

The year closed with a fall of -27.03

percent over sets target.

TRADE CHRONICLE - July .~ Aug. 2020 - Page # 18


Ports & Shipping

New shipping policy offers

incentives to private sector

The Federal Minister for Maritime

Affairs, Syed Ali Haider Zaidi, has

announced the country’s new shipping

policy under which incentives have

been provided to private shipping

companies.

While addressing a news conference

along with the Prime Minister’s Advisor

on Commerce, Abdul Razzak Dawood,

in Islamabad, the minister said the

government wanted to involve the

private sector in the shipping business.

The minister said the vessels registered

in Pakistan would be exempted from

customs duty, income tax, and sales

tax till 2030.

Ali Zaidi said the Pakistani flag carrier

vessels would also have the first

berthing rights at the port.

The federal minister hoped that three to

four shipping companies would soon

buy vessels in the country.

He said the new shipping policy would

also facilitate fishermen.

Separately on his Twitter account, Ali

Zaidi said the new shipping policy

would lift the maritime sector in

Pakistan to new heights, which had

never been witnessed before.

The minister said the shipping

companies could now take advantage

of the liberal fiscal concessions and low

markup rates offered by the State Bank

of Pakistan (SBP) under the Long-Term

Financing Facility (LTFF) to acquire

ships flying the Pakistan flag.

Ali Haider Zaidi said that this businessfriendly

policy would reduce the annual

freight bill of more than US$ 5 billion on

Pakistan. The minister said it would

a l s o g e n e r a t e e m p l o y m e n t

opportunities for the seafarers and

allied sectors.

Zaidi said that it was only possible due

to the vision of Prime Minister Imran

Khan who declared 2020 as “Year of

Blue Economy”.

He said that Pakistan residentshipowning

company would be defined as

a company registered with the

Securities and Exchange Commission

of Pakistan (SECP) and having its own

seaworthy vessels registered under the

Pakistani flag. The minister said that

shipping industry was vital as it

operated during peace times as well as

in emergencies and high risk.

He said the new shipping policy was

introduced to expand and earn foreign

exchange for the country. Ali Zaidi said

that in January 1972 all the industries in

Pakistan were nationalised including

the shipping industry.

He said that all the shipping companies

at that time were merged into Pakistan

National Shipping Corporation. “Over

the years, as the nationalization was

reversed with privatization, the industry

began to recover with the exception of

the shipping industry,” he said.

The minister said it was the need of the

hour to revive this industry as we had

lagged way behind our regional

competitors such as Bangladesh.

He further said that as Pakistan relied

on international shipping lines for its

trade, adding that it was losing foreign

exchange, which could be saved by

developing local shipping industry. The

minister said shipping industry had the

potential to expand and earn foreign

exchange for Pakistan.

Ali Zaidi said that new Pakistan

residentship owning companies would

be incentivized and pay tax of US$ 0.75

per GRT for the first five years of the

shipping operations of each individual

vessel inducted by them subject to the

cut off period till 2030, after five years,

Pakistan residentship owning

companies shall pay US1 dollar per

GRT annually on the said vessels’

shipping operation income.

He said no federal tax would be levied

to the detriment of Pakistan

residentship owning companies during

the exemption period.

He added that no preference would be

given to the PNSC in private sector

cargo.

“In light of the shipping industry’s

significance in overall economic

development and foreign exchange

savings shipping industry has been

allowed to avail Long-Term Finance

Facility (ITFF)/ Islamic Long-Term

Finance Facility (ILTFF),” he added.

TRADE CHRONICLE - July .~ Aug. 2020 - Page # 19


TRADE CHRONICLE

PNSC changes crew onboard

MV Malakand at

La Reunion Island

PNSC remains steadfast and fully

committed to the safety and welfare of its

seafarers despite the challenges posed

by Covid-19.

Though crew changeovers and

repatriation of seafarers have become

serious challenge for ship owners globally,

PNSC has successfully managed crew

change on most of its vessels.

Recently, PNSC undertook crew change

of its vessel MV Malakand (Bulk Carrier) at

La Reunion Island in Indian Ocean.

Special helicopter was chartered to airlift

crew to and from vessel due to rough sea

state to ensure safe and timely

embarkation and disembarkation of

seafarers. So far, PNSC has completed

crew change on nine vessels. Concerted

efforts are in hand to effect crew changes

on remaining two vessels at the earliest

possible.

The government is seeking a foreign

developer to upgrade berthing facilities at

Gwadar port after it resumed Afghan

transit trade through the port that lies at

the nexus of Chinese-funded economic

corridor project, it was learnt on Friday.

New shipping policy termed

excellent step

New shipping policy announced by Syed

Ali Haider Zaidi Federal Minister for

Maritime Affairs is an excellent step

towards promoting private shipping

industry, eventually the logistics support

services, port services, road transport,

warehousing, cool

chains, silos and

growth of seafood

e x p o r t s , s a i d

Ateequr Rehman

E c o n o m i c &

Financial Analyst.

H e a d d e d t h a t

n a t i o n a l i z a t i o n

policy of 1972 was

havoc, complete

collapse of shipping

industry; it rather

d e s t r o y e d t h e

country's vibrant

shipping industry.

H e s a i d , t h i s

s h i p p i n g p o l i c y

hope fully not only

attract massive

investment but also replenish the sick

shipping industry thus create huge

employment. He said that according to

policy the vessels registered in Pakistan

and becoming national flag carrier would

be exempted from custom's duty till the

year 2030. Other insensitive include

exemption of Sale Tax & Income Tax of all

Govt seeks international contractor

to upgrade Gwadar port

part of Chinese belt-and-road initiative

envisaging infrastructure development in

income of the registered ships. Further,

the most important incentive for the

Pakistani Flag Carriers would be the first

birthing right.

He appreciated SBP for their long term

3% financing facility for those who

acquire ships and vessels flying the

Pakistani flag. This will not only help the

investors to buy cargo ships, but also tug

boats, dredger, fishing boats, etc.

He mentioned that our deep sea fishing

sector has enormous potential having

vast coastline.

These insensitive moreover will help

growing our fish and sea food exports to

new heights and over come the

difficulties of surpassing trade deficit.

Gwadar port has an existing capacity to

handle 50,000 deadweight tonnage bulk

carriers at the rate of 12.5 metre

maximum depth. The port has three

multipurpose berths and each is 200

metres long. “Given the expected rapid

growth in demand for port capacity, the

authority continues expanding the

capacity of Gwadar port,” said an official

document.

Gwadar Port Authority (GPA) floated

international tenders for the up-gradation

of berthing facilities, supply and

installation of a floating jetty and cranes at

the port. The bids were from firms for

supply and installation of equipment for

safety of navigation.

Pakistan’s southwestern Balochistan

province, housing the port, is an integral

70 countries. Under China-Pakistan

Economic Corridor project, the port

because of its proximity to Chinese

province is to be used as trade spot

between Asia and other parts of the

world.

Gwadar port is being developed at the

cost of about $600 million. Additional

three berths will be constructed in two

years, according to the document.

Traffic at Gwadar port is expected to

increase after government allowed transit

trade imports, both containerized and

bulk, for onward transportation to

Afghanistan.

TRADE CHRONICLE - July .~ Aug. 2020 - Page # 20


TRADE CHRONICLE

KSEW plans to increase ship building

repairing capability

Federal Government will arrange

Rs3.778 billion for "Infrastructure

Upgradation of Karachi Shipyard &

Engineering Works (KS&EW)" project

through foreign sources.

According to a working

paper of the project, the

project was approved

recently by the Central

Development Working Party

(CDWP) at a cost of Rs7.789

billion. Out of the total cost of

t h e p r o j e c t , f e d e r a l

government would arrange

Rs4.010 billion through local

sources whereas the rest of

the amount Rs3.778 billion

would be financed through

foreign sources.

The upgraded project would contribute

significantly towards increasing ship

building/repairing capability, reduction of

the shipbuilding and repair costs and

maintaining of existing assets on modern

concept.

The project envisages rehabilitation /

upgradation of existing two Dry Dock 1 &

2 f o r u n d e r w a t e r r e p a i r s o f

ships/submarine and testing of

submarines after construction, provision

of security monitoring and control system

for entire shipyard, procurement of four

level luffing cranes and one gantry cranes

of lifting capacities ranging from 80-tons

as replacement of the same number of

old and obsolete cranes of 1955, 1964

and 1974 vintage, refurbishment of

157.46 meter south quay wall along with

other support structures/civil works, and

replacement of steel roof trusses and

repair of old infrastructure. The project

Chattogram Port ranks 58th among

world’s top 100 busiest container ports

The Chattogram Port of Bangladesh

secured the 58th position among the 100

busiest container handling ports of the

world in 2020. In 2019, the port was on

the 64th position in the list of ‘One

Hundred Ports’, prepared by Lloyd’s List,

the famous maritime journal.

Shanghai Port of China secured the top

position in the list of 2020. It also topped

the list in the two previous years.

The latest 2020 edition of Lloyd’s List of

One Hundred Ports has been published

recently, tallying up the annual container

handling figures of the world’s elite port

facilities in 2019.

As per Lloyd’s List of 2019 the

Chattogram port handled 30 lakh 88,187

TEUs of containers and in 2018 the

Chattogram port handled 29 lakh 3,996

TEUs of containers. The growth rate was

annual 6.3 percent container handling.

Such growth helped the port in

advancing six steps from its last year’s

58th position. Earlier, it was ranked 64th

in 2018, 71st in 2017, while 76th and

87th in 2016 and 2015 editions of the

Lloyd’s List report respectively.

would help in safe conduct of

docking/undocking operations and

security of submarine construction

project from sabotage and terrorist

attacks.

It would also help in safe working

environment for men and major national

assets of Pakistan Navy and commercial

v e s s e l s u n d e r

repairs/construction and

would enhance lifting

capacity for construction of

ships and submarines

thereby reducing overall

construction timelines by

25%.

Existing facilities both civil

s t r u c t u r e s a n d

e l e c t r o m e c h a n i c a l

equipment are more than 50

years old and require

immediate attendance to

preserve and improve the

national asset.

KS&EW was established in 1956. Since

then major upgradation of the yard was

undertaken in 2009, when few facilities

related to ship building were upgraded.

Nonetheless a number of other facilities

were left unattended to be undertaken

subsequently.

Increased foreign trade in recent years

has been hailed by the port users for such

growth in transport of containers through

the port, port users opined.

The Chattogram Port entered the list first

time in 2009 securing 98th position, he

said.

The Chattogram Port has grown 41 steps

in the last 12 years through continuous

growth, port sources said.

Talking to media Chattogram Port

Authority (CPA) Chairman Rear Admiral

Abul Kalam Azad mentioned a number of

reasons behind the enhancement of the

port’s capacity that contributed to the

achievement.

The port’s yard space has been widened

at over million square metre, enhancing

its capacity to store more containers, the

chairman said, adding that huge gantry

cranes were added to its fleet, which have

accelerated the port’s container handling

capacity to a great extent.

TRADE CHRONICLE - July .~ Aug. 2020 - Page # 21


TRADE CHRONICLE

DP World volumes

down 3.9% in 1H2020

DP World Ltd handled 33.9 million TEU

(twenty-foot equivalent units) across its

global portfolio of container terminals in

the first half of 2020, with gross container

volumes decreasing by 5.3% year-onyear

on a reported basis and down 3.9%

on a like-for-like basis.

At a consolidated level, Its terminals

handled 20 million TEU during the first half

of 2020, increasing 2.4% on a reported

basis and down 5.4% year-on-year on a

like-for-like basis. Reported consolidated

volume in the Americas and Australia

region was boosted by the consolidation

of Australia, Caucedo (Dominican

Republic), acquisition of container

terminals in Chile and commencement of

operations in Posorja (Ecuador).

Jebel Ali (UAE) handled 6.7 million TEU in

1H2020, down 6.8%% year-on-year, due

to Covid-19 and loss of lower-margin

cargo.

Group Chairman and Chief Executive

Officer Sultan Ahmed Bin Sulayem

commented: "Like most industries, the

maritime and logistics sector is going

through an unprecedented and

challenging period due to the COVID-19

outbreak. As a result, our portfolio has

seen volumes weaken by -7.9% in

2Q2020 and -3.9% in 1H2020. However,

this compares favourably against an

estimated industry decline of -15% in

2Q2020 and -10% in 1H2020[4]. This

o u t p e r f o r m a n c e o n c e a g a i n

demonstrates that we are in the right

locations and a focus on origin and

destination cargo will continue to deliver

the right balance between growth and

resilience.

Also, we are very proud to state that

during this difficult period, DP World's

ports across the world remained

operational and we aim to continue to

provide this access to our clients to

ensure essential and critical cargo keeps

moving. Our early investment in digital

technology and automation ensured we

faced minimal disruption at our locations.

Looking ahead, our near-term focus is on

the safety of our employees, providing

solutions to cargo owners that are facing

supply chain issues due to the pandemic,

integrating our recent acquisitions to

drive synergies, containing costs to

protect profitability and managing growth

capex to preserve cashflow.

Overall, we are encouraged that our

business has performed better than

expected and, while the outlook is still

uncertain, we remain positive on the

medium to long-term fundamentals of the

industry. Furthermore, our strategy of

providing integrated supply chain

solutions to beneficial cargo owners

leaves us well placed to benefit early from

any sustained recovery in the global

economy".

DP World reaches milestone with container

High Bay Store Proof of concept

DP World, the Dubai-based provider of

worldwide smart end-to-end supply

chain logistics, has completed assembly

of the world's first container High Bay

Store System (HBS) at Jebel Ali Port.

BoxBay is a joint venture by DP World and

German industrial engineering specialist

SMS group GmbH.

Real life test operations are due to start

before September. The technology is set

to dramatically change the way

containers are handled in ports with

smart innovation.

The patented High Bay Store is an

automated container handling system

that stacks containers up to eleven

stories high. It delivers more than three

times the capacity of a conventional yard

with enhanced performance,

so the footprint of terminals

can be reduced by up to 70

per cent, and enables any

container to be accessed

individually without moving

any other.

Traditionally containers are

stacked one on top of the

other, which means many

containers have to be moved

to access containers lower

down in the stacks.

This week, the final major component of

the system, a truck crane, was

assembled on site. The automated truck

crane is used to lift containers on and off

external trucks. Containers for the

landside operations move in and out of

BoxBay on underground conveyor belts

before being lifted to their slot in the rack

by stacker cranes.

The HBS proof of concept provides 792

container slots. A full industrial HBS yard

behind the two under construction berths

of Jebel Ali Terminal 4 would be able to

handle more than three million containers

per year. The stacker cranes and truck

handling cranes will be operated in full

automation. The shuttle carrier will start

testing with a driver at first during the pilot

operation phase.

BoxBay is designed to be fully electrified

and will be the only container yard that

can be powered by solar panels on its

roof.

Commenting on this important step

forward, Sultan Ahmed Bin Sulayem,

Group Chairman and CEO of DP World,

said: "This is a major milestone delivered

in our exploration of new and innovative

technologies that add value for our

operations and customers. In these

challenging times, we are bringing

container high bay store to the world's

supply chains, demonstrating our

strengths as a global provider of smart

logistics solutions.

TRADE CHRONICLE - July .~ Aug. 2020 - Page # 22


People & Events

CCP’s new chief

assumes charge

C o m p e t i t i o n

Commission of

Pakistan’s (CCP)

n e w l y -

a p p o i n t e d

c h a i r p e r s o n

Rahat Kaunain

H a s s a n h a s

assumed the

charge of her

office for a threey

e a r t e r m ,

according to a

statement issued recently.

Kaunain Hassan studied Law at King’s

College London and also possesses an

LLM degree.

She has over 25 years of experience,

including over eight years in public

service. For the last seven years, she has

been in private practice, as senior partner

of Islamabad-based law firm. She was

also member of the Audit Oversight

B o a r d , I n d e p e n d e n t D i r e c t o r /

Chairperson Pakistan LNG Limited and

has held independent directorships,

including on the boards of Pakistan Stock

Exchange and various other listed

companies, the statement said. She has

also served as one of the founding

members of CCP from 2007 to 2010, and

as its chairperson from 2010 to 2013.

SCB appoints

new Chief

T h e S t a n d a r d

C h a r t e r e d B a n k

( P a k i s t a n ) L t d

appointed Rehan

Shaikh as the Chief

Executive Officer,

according to a press

r e l e a s e i s s u e d

recently.

Shaikh has over 35 years of banking

experience, most recently as the SCB

CEO Islamic Banking, based in Dubai.

Fareena Mazhar assumes

charge of BOI secretary

Following a notification, Fareena Mazhar,

a distinguished officer of

the Central Superior

Service, has assumed

the charge of secretary

Board of Investment

(BOI) recently.

Mazhar possesses a

strong experience of

more than 30 years,

Faheem Haider appointed

as CEO of MPCL

12th August 2020.

Faheem Haider

h a s b e e n

appointed as

t h e n e w

m a n a g i n g

director/CEO of

Mari Petroleum

C o m p a n y

L i m i t e d

(MPCL). He will

a s s u m e h i s

d u t i e s f r o m

Haider comes with a rich background

and experience in E&P sector.

In his illustrious career of over 27 years,

he has held various leadership and staff

positions with Union Texas Petroleum

Inc. Karachi, Nutricon Union Ltd

Zahid appointed

FO spokesman

The Foreign Office has notified Zahid

Hafeez Chaudhri as its new spokesman.

Mr Chaudhri replaces Aisha Farooqui,

who is reportedly proceeding on a

training course. Mr Chaudhri is also

holding the charge of director general of

the South Asia directorate at the FO. He

w i l l h o l d b o t h a s s i g n m e n t s

working as a government officer in

various organisations including the

Federal Board of Revenue (FBR), the

Ministry of Commerce, the Pakistan

Electronic Media Regulatory Authority

(PEMRA) and the BOI.

During her career, she took part

in a number of senior-level

trainings and workshops within

Pakistan and abroad and also

has ample experience in

n e g o t i a t i n g f r e e t r a d e

agreements of Pakistan with

various countries.

Islamabad, OMV Exploration GmbH

Islamabad, Helix RDS Ltd, Aberdeen BG

Group, (Oman), and Neptune Energy

(Cairo, Paris, London).

He possesses sound knowledge and

experience of E&P projects life cycle

from both technical and commercial

perspectives.

Apart from handling core E&P

operations in various parts of the world,

he has hands on experience of JV

management, business development,

operational efficiency, cost leadership,

stake holders’ management, and growth

delivery.

Haider holds an MSc Degree in

Petroleum Engineering and Production

Management from Imperial College

London, a Post Graduate Diploma from

College of Petroleum Studies Oxford

London, and BSc Degree in Petroleum

Engineering from UET Lahore.

simultaneously. “It has been decided

that Mr Zahid Hafeez Chaudhri, Director

General (SA & SAARC) in addition to his

own duties will also look after the work of

t h e

spokesperson

vice Ms Aisha

Farooqui with

i m m e d i a t e

effect and until

further orders,”

the notification

read.

TRADE CHRONICLE - July .~ Aug. 2020 - Page # 23


TRADE CHRONICLE

Roohi Raees Khan elected

SNGPL BoD Chairperson

The Board of

Directors of

S N G P L

elected Roohi

Raees Khan as

Chairperson,

Sui Northern

Gas Board of

Directors in a

meeting held

recently in the

company Head

Office. It is

pertinent to

mention that

e l e v e n

directors were elected in Board of

Directors elections, which took place on

3rd July.

HEC appoints Imtiaz Gillani

as NTC Chairman

The Higher Education

Commission (HEC)

has appointed Imtiaz

Gillani as chairman

National Technology

Council (NTC).

A notification has been

issued stating that the

competent authority

at the HEC has been

pleased to appoint

Imtiaz Gillani as chairpman NTC

against clause 4.a of approval by laws

of the Council for a period of four

years.

The NTC is the body delegated by the

HEC under sub-section (e) of Section

10, of the ordinance No LIII of 2002,

dated 11th September 2002 and HEC

No.19-3 /HEC/HRM/2015/9721

dated 7th September

2015, published in the

Gazette of Pakistan

October 2, 2015.

The NTC has a mandate

to carry out accreditation

under the umbrella of the

HEC for all four-year

programmes leading to

Technology Degree over

a span of 16 years of

learning. The NTC accredits

engineering technology degree

programmes in Pakistan.

It also registers engineering

technologists across the country.

The incumbent directors elected Roohi

Raees Khan as the Chairperson for a

period of three years.

Roohi Raees was last elected as

Chairperson of SNGPL Board of

Directors in November 2019 following the

death of Syed Dilawar Abbas.

Roohi Raees Khan also has the honour of

being the first female Chairperson of

SNGPL Board of Directors.

Shujah

appointed PSM Chief

T h e

f e d e r a l

governme

n t h a s

appointed

r e t i r e d

B r i g

S h u j a h

Hassan as

new chief

executive officer of the Pakistan Steel

Mills.

A notification issued by the Establishment

Division says the appointment of Shujah

Hassan will be for one year with

immediate effect and until further orders.

However, the appointment is subject to

termination on one month`s notice by

either side, it says.

Khokhar made Secretary

Interior third time

T h e f e d e r a l

government has

t r a n s f e r r e d

S e c r e t a r y

C o m m e r c e ,

Yousus Naseem

Khokhar an officer

of BS-22 and posted him as Secretary

Interior.

This is the third posting of Khokhar as

Secretary Interior. First time he was

made Secretary Interior when he was

transferred from Power Division. Later

he was made Chief Secretary Punjab.

However, when he was sent back from

Punjab to Centre, he was again made

Secretary Interior.

Nigar becomes first Surgeon

Lieutenant- General of Pakistan Army

Lieutenant-General Nigar Johar has become the first

woman officer in the history of Pakistan Army to reach the

three-star rank.

According to the Inter-Services Public Relations (ISPR), the

newly appointed lieutenant general, who hails from the

Panjpeer village in Swabi district, has been appointed as the

first Surgeon General of Pakistan Army.

Karachi

Trade Chronicle

It pays to advertise in

www.tradechronicle.com

TRADE CHRONICLE - July .~ Aug. 2020 - Page # 24


Cement Industry

Lucky Cement records consolidated earnings of

PKR 7.32 billion in FY 20

On a consolidated basis, Lucky

Cement Limited reported net

profit after tax of PKR 6.13

billion after taking out PKR 1.19

b i l l i o n a t t r i b u t a b l e t o

noncontrolling interests for the

fiscal year ended June 30,

2020. This translates into

earnings per share (EPS) of PKR

18.96 / share as compared to

PKR 35.03 / share reported

during the last year.

Further, on a consolidated basis, the

Company achieved gross turnover of

PKR 162.87 billion which is 19% higher

as compared to last year’s turnover of

PKR 136.59 billion. During the fiscal year

2019-20 under review, the Company’s

overall Consolidated Net Profit

decreased by 45.9% as compared to the

same period last year. The decrease in

consolidated Net profit was mainly

attributable to decrease in Net Profit of

Cement segment (Holding Company)

which decreased by 79.0% due to lower

margins and higher input costs. This

decrease in Net Profit of holding

company was partially offset by

significant increase in Net Profit from

foreign operations (LCL Investments

Holdings Limited) as compared to last

year. Despite challenging market and

economic dynamics, the increase in Net

Profit is mainly attributable to growth in

sales volume, increase in cement prices

and decrease in input costs from both

Congo & Iraq projects. While the

profitability of ICI remained similar to last

year, the increase in Automobile

segment’s profitability also contributed

towards improving the consolidated Net

Profit.

On a standalone basis Company’s,

overall sales volumes declined by 0.6% to

reach 7.63 million tons during the current

fiscal year. The local cement sales volume

registered a decline of 7.6% and were

5.41 million tons in comparison to 5.85

Power Cement starts containerised

clinker exports to China

Contributing towards increasing

Pakistan's export earnings, Power

Cement Ltd has pioneered containerised

clinker exports to China in large quantities

on a continuous basis. A unique feature of

the new Power Cement Plant is its

capability to load clinker in containers by

Bulk Loading System (conveyer belts).

This capability has made possible

containerised shipment of clinker of over

100,000 tons making Power Cement a

pioneer in exporting clinker in containers

to China.

Since the commencement of production

in Dec 2019 of its fully automated, state of

the art European plant supplied and

commissioned by FLS, Power Cement

started export of cement and clinker to

different markets such as Bangladesh, Sri

Lanka, Indian Ocean Island, East Africa,

Middle Eastern countries & China in a big

way.

Power Cement’s new plant not only

produces high-grade cement of

52.5 N & 42.5 N/R etc., it also has

the flexibility in mode of packaging,

which includes 25Kg, 40Kg, 50Kg,

1.5MT Jumbo bags and 2MT sling

bags. This has led Power Cement

exports to rise vertically. Power

million tons last year, however, the export

sales volumes of the Company improved

by 18.8% to reach 2.16 million tons as

compared to 1.82 million tons during the

last year. Anticipating challenges in

domestic demand of cement the

Company developed new sales markets

for clinker exports. Resultantly, the

Company’s clinker exports increased by

32% as compared to previous year.

Further, with regards to Company’s

standalone financial performance, the

gross sales revenue decreased by 7.8%

to PKR 62.30 billion compared to PKR

67.55 billion reported during last year.

This was mainly due to lower domestic

selling prices during the year. Moreover,

the increase in input costs in addition to

higher transportation costs and the

impact of lockdowns due to COVID-19

also adversely impacted the Company’s

profitability. Despite these challenges,

Lucky Cement recorded net profit after

tax of PKR 3.34 billion. Similarly, the

standalone EPS of the Company is PKR

10.34 / share as compared to last year’s

reported EPS of PKR 32.44 / share.

The Company reported progress on the

greenfield investment project for

producing 1.2 million tons of clinker at

Samawah, Iraq and 1 X 660 MW

supercritical coal based power project at

Port Qasim.

Cement has acquired substantial share in

exports within 7 months (Jan-Jul 2020)

from the commencement of its new plant

in Dec 2019. As a new entrant in the

international cement market, Power

Cement has very rapidly earned a high

reputation and name internationally and

added to the export earnings of Pakistan.

Further new markets are being explored

which will place Pakistan at a higher

position in the international cement and

clinker trade.

TRADE CHRONICLE - July .~ Aug. 2020 - Page # 25


TRADE CHRONICLE

Exports of cement from Pakistan

rises during July 20

All Pakistan Cement Manufacturers

Association (APCMA) has issued official

dispatches data for the month of July 20

and termed that the new fiscal has

started well for the cement sector as the

cement dispatches increased by a

healthy 37.75 per cent from 3.512Mt in

July 2019 to 4.838Mt in July 2020 due to

buoyancy in both exports and domestic

market.

A spokesman of APCMA adds that the

growth looks heartwarming when seen in

the context of only 1.98 per cent

despatches growth in 2019-20 that was

supported by exports. Whereas, the

domestic cement utilization registered a

decline of 0.94 per cent in the last fiscal.

According to the data released by

APCMA, the local uptake of cement in

July 2020 increased by 32.67 per cent to

3.953Mt from 2.979Mt in July 2019 while

exports registered a more impressive

increase of 66.14 per cent, rising to

0.885Mt from 0.533Mt in the same

month last year.

North Zone

The North Zone, as usual, led the total

growth on the strength of its domestic

market that grew by over 38.86 per cent

to 3.435Mt compared with 2.474Mt

cement despatches in last year July. The

trend in exports from the North Zone was

highly disappointing as the total exports

from North based mills amounted to only

0.123Mt, a decline of 46.93 per cent

when compared with exports of 0.231Mt

in last year. The fall is due to trade standoff

with India and slow construction activities

in Afghanistan.

South Zone

The performance of the South based

mills that locate near seaports is quite the

opposite. The South based mills could

only dispatch 0.518Mt of cement in the

domestic market, a nominal increase of

2.39 per cent over the dispatches of

0.506Mt made in the same month last

year. The South based mills, however,

made up for slow growth in the domestic

market with a mind-blowing growth of

152.97 per cent in exports. Its exports of

0.762Mt were 1.5 times the local sales of

cement in the Southern part of the

country. Last year in July the cement

exports from the South were only

0.301Mt.

The spokesman of APCMA said that the

increase in cement despatches last

month gave the much-needed boost to

the industry after a disappointing fiscal.

He added, the increasing trend in fuel and

energy prices has severely impacted the

freight cost and overall cost of

production.

“The government must focus on public

sector development projects and

announced housing schemes to boost

construction activities so that the

employment and investment in the

cement and allied industries can be

safeguarded,” he added.

Pakistan Cement production witnessed

a mixed trend during FY20

The Large-Scale Manufacturing

Industries (LSMIs) output declined by

10.17 per cent in the last fiscal year 2019-

20 compared to 2018-19, as almost all of

the major manufacturing sectors posted

negative growth, according to the data

released by the Pakistan Bureau of

Statistics (PBS). The cement production

witnessed a mixed trend during this

period. According to provisional

Quantum Index numbers of Large Scale

Manufacturing Industries (QIM), the LSMI

output declined by 7.74 per cent in June

2020, compared to June 2019, and

increased by 16.81 per cent, when

compared to May 2020.

The production in July-June 2019-2020

as compared

to July-June

2 0 1 8 - 2 0 1 9

has increased

in fertilisers

and paper and

board, while it

h a s

significantly

decreased in

r e s p e c t o f

textile, food,

beverages and

tobacco, coke

and petroleum

p r o d u c t s ,

automobiles, iron and steel products, and

electronics.

The LSMI output decreased by 7.74 per

cent for June 2020, compared to June

2019, as it went down from 129.09 points

to 119.09 points, and increased by 16.81

per cent as compared to May 2020, i.e.

went up from 101.97 points.

Cement production

Cement production too contracted

during this period on a cumulative basis.

Over the period, Pakistani cement

production decreased by 2.01 per cent

YoY to 39.122 Mt in July -June 2020 from

39.924Mt a year earlier. However, the

downward trend was reversed in June

2020, when production significantly rose

by 21.02 per cent to 3.524Mt versus

2.912Mt in June 2019. The decline in

production is attributed to the lockdown

of cement plants from March onward,

after Covid-19.

Pakistan has 25 cement plants across

the county with 50 production lines with a

total production capacity of 69.164Mta of

cement.

TRADE CHRONICLE - July .~ Aug. 2020 - Page # 26


Telecommunication News

Pakistan on way to success

through digital economy, education: President

inequality during 2014 to 2018, as

mentioned by the French economist with

full supporting data.

President Dr Arif Alvi said Pakistan had

immense potential in the field of digital

economy and digital education and

stressed the importance of fast data

communication modes to explore vast

opportunities in such areas.

“Pakistan has high prospects in making

strides in digital economy, digital

education and digital finance and is

heading in right direction to cope with the

challenges during current pandemic,” the

President said in his address at the

contract signing of high-speed mobile

broadband projects in Muzaffargarh and

Rajanpur districts, here at the Aiwan-e-

Sadr.

President Alvi said the future highway to

success was all about information

gathering based upon internet and

making it accessible for people. He

mentioned that the new life pattern during

the coronavirus pandemic demanded

digitalized systems in areas particularly

trade, commerce, education and health.

He lauded the Ministry of Education for

adopting new modes of teaching through

television to address the challenges

faced by students residing in towns with

either low-speed internet or with no

access. The President said Pakistan was

proud to launch its first public-sector

Virtual University in 2004, offering

education at relatively low rates as

compared to physically attending

institutions that had several other

overheads.

The President said e-commerce and e-

trade could prove a stimulus towards

expansion of economy due to fast

financial transactions. He said State Bank

of Pakistan was working to launch digital

payment system across the country in

October, expressing confidence that the

step would boost business across the

board, including of small companies

Also, he said, software being top of the

value-addition chain could prove as

effective marketing tool for products and

mentioned the country's 30 percent

improvement in software development

scenario. President Alvi said access to

information through digitalization would

also provide a platform for women to help

them thrive, thus ensuring their

empowerment.

He said digital information could also

eliminate 'elite capture' of resources and

quoted the book 'Capital and Ideology'

by French economist Thomas Piketty

who defined education and health as two

top areas of such notorious culture. He

said Pakistan through reforms was

resisting the elite capture, however India

on the contrary, was reported with high

The President stressed proper Right-of-

Way policies for the broadband and

mobile companies to effectively sort out

matters related to installation of signal

towers at people's land. President Alvi

said internet could be best used for

improving skilled economy and

mentioned that as Pakistan required one

million nurses in health sector, online

training courses could be a great option

instead of brick and mortar education.

Federal Minister for Information

Technology and Telecommunication

Syed Amin ul Haque said the government

was committed to promote the country's

technological capacity to develop and

produce a globally competitive IT sector

and industry. He said provision of 3G and

4G service to the far-flung areas of

Balochistan, Khyber Pukhtunkhwa and

Gilgit Baltistan would also be ensure in

near future.

He said in line with the vision of Digital

Pakistan, the Ministry of IT and Telecom

through Universal Service Fund was

running diverse projects, which were

playing an important role in the socioeconomic

benefit of people.

Speaking on the occasion, Irfan Wahab

Khan, CEO Telenor Pakistan said, “We

are committed to empowering the

country with enhanced connectivity that

creates a positive impact through

reducing inequalities and uplifting millions

of lives. Today, we are one step closer to

bridging the digital gap by providing 2

million people of Muzaffargarh and

Rajanpur with the fastest mobile

broadband services. Our core purpose at

Telenor Pakistan is to empower societies

and create opportunities for every

Pakistani, especially those living in

underserved areas.”

CEO Universal Service Fund Haaris

Mehmood Chaudhry and CEO Telenor

Pakistan Irfan Wahab in their speeches

also highlighted salient features of the

project.

TRADE CHRONICLE - July .~ Aug. 2020 - Page # 27


TRADE CHRONICLE

Jazz partners with Knowledge

Platform to facilitate e-Learning

Jazz, Pakistan’s leading digital service

provider, has partnered with Knowledge

Platform (Private) Limited, Pakistan’s

leading education technology company,

to facilitate e-Learning amidst the

ongoing pandemic. As per the

collaboration, Jazz has introduced a

special data bundle providing 10 GB in

just PKR 150 whereby over 270,000

students in 100 cities can access

Knowledge Platform’s e-Leaning portal

and mobile applications for the entire

month.

All prepaid customers of Jazz who are

registered with Knowledge Partner can

avail this data bundle by dialing *778#.

This collaboration is an initiative of Jazz

Business, which has the largest and most

comprehensive portfolio of B2B ICT

services and is currently serving 95 of the

top 100 PSX listed companies. As

schools set up virtual classrooms to

continue their courses online following

nationwide closure of educational

institutes, students and parents are

looking for a steady and cost-effective

connectivity solution. Identifying this as

an urgent need, Jazz is utilizing its mobile

broadband solution to provide access to

some of the best online learning

resources available on Knowledge

Platform’s portal and mobile applications,

giving students the chance to learn and

develop while away from their schools.

“Providing fast 4G services has been our

forte, now we seek to transform how we

learn by introducing cutting-edge

technology to our e-learning platform

too,” said Syed Ali Naseer, Chief

Business Officer at Jazz.

Talhah Khan, Knowledge Platform’s CEO,

noted, “The new normal in education

requires a fundamental change in the way

students are engaged remotely through

innovative educational products. Access

to the internet and devices is a big

challenge in Pakistan. We are happy to

take our first step to partner with Jazz for

affordable internet access.”

Jazz has previously worked with

Knowledge Platform on its Jazz Smart

School project – a smart learning solution

to the traditional schooling system

through a digital learning platform. The

program is aligned with three SDG Goals

and with Pakistan’s Vision 2025 under the

Prime Minister’s Education Reform

Program.

Huawei Announces 2020

H1 Business Results

Zong introduces China International

roaming power offer for prepaid customers

Huawei announced its business results

for the first half of 2020 today. The

company generated CNY454 billion in

revenue during this period, a 13.1%

increase year-on-year, with a net profit

margin of 9.2%.[1] Huawei's carrier,

enterprise, and consumer businesses

achieved CNY159.6 billion, CNY36.3

billion, and CNY255.8 billion in revenue,

respectively.

As countries around the globe are

grappling with the COVID-19 pandemic,

information and communications

technologies (ICT) have become not

only a crucial tool for combatting the

virus, but also an engine for economic

recovery.

Huawei reiterated its commitment to

working with carriers and industry

partners to maintain stable network

o p e r a t i o n s , a c c e l e r a t e d i g i t a l

transformation, and support efforts to

contain local outbreaks and reopen local

economies.

The complex external environment

makes open collaboration and trust in

global value chains more important than

ever.

In a bid to augment the customer

experience and providing seamless

connectivity, Zong 4G, Pakistan’s leading

telecom and digital services provider, has

introduced new prepaid roaming bundles

for China. Prioritizing customer

convenience, these roaming

bundles are especially designed

to ensure that Pakistanis

stranded in China avail Zong

4G’s services uninterruptedly,

and stay connected with loved

ones amid the Covid-19

p a n d e m i c . T h e C h i n a

International Roaming Power

Offer includes 150 Minutes, 150 SMSs,

and 2GB Data for PKR 3,199 + tax for 15

days. Zong’s prepaid customers can avail

the package by dialing USSD menu

*4255#. The offer comes at a crucial time

when some people are stuck abroad due

to the COVID-19 outbreak and are having

trouble connecting with friends and family

back at home, Zong 4G’s seamless

connectivity provides a close to home

experience at the most cost-effective

rates.

“As a customer-centric telecom

company, we are always on the lookout

for innovative ways of facilitating our

c u s t o m e r s , ” s a i d Z o n g 4 G

Spokesperson. “We understand the

evolving customer needs and proactively

build solutions to meet them. The China

IR Power Offer, like other Zong 4G

international roaming packages, is a true

example of the care that we have for our

customers, especially in these

challenging times,” he added.

With the largest 4G roaming services,

Zong 4G offers an array of roaming

bundles for both prepaid and post-pay

customers, empowering users with

seamless connectivity while on the move.

As a company that believes in innovation

and world-class customer experience,

Zong 4G is geared to meet to the needs

of its customers who travel for both

business and leisure, especially during

these testing times of the unprecedented

global health crisis.

TRADE CHRONICLE - July .~ Aug. 2020 - Page # 28


Banking & Insurance

National Bank of Pakistan wins Asian Banking & Finance (ABF)

Corporate & Investment Banking Awards 2020

The Asian Banking & Finance Magazine

(ABF) has awarded its prestigious

Corporate Client Initiative of the Year–

Pakistan and the Innovative Deal of the

Year– Pakistan Awards at the Corporate

& Investment Banking Awards 2020, to

the National Bank of Pakistan (NBP).

On winning this prestigious award, Mr.

Syed Jamal Baquar, SEVP/Group

Chief, CIBG said, ‘the recognition of

NBP for these Awards highlights the

fact that NBP endeavors to be a

preferred and trusted long-term partner

of its clients in the long term by

providing a full array of financial

products and solutions which continue

to exceed service expectations.

He further went on to add that ‘NBP has

The Board of Directors of Meezan Bank

Limited in its meeting, held on August

17, 2020 approved the financial

statements of the Bank for the half year

ended June 30, 2020. The meeting

was presided by Mr. Riyadh S.A. A.

Edrees - Chairman of the Board, Mr.

Faisal A. A. A. Al-Nassar – Vice

Chairman of the Board was also

present.

a proud history extending over the last 7

decades as a true “Nation’s Bank” with

deep roots throughout the country and

in almost every segment of Pakistan’s

economy. NBP has the size, scale,

diversity, and expertise to serve its

customers across a broad range of

financial needs. Established in 1949

under the “National Bank of Pakistan

Ordinance 1949”, NBP is one of

Pakistan’s leading Commercial Banks

offering comprehensive banking

products and services in addition to

Meezan Bank announces financial results

for the half year ended June 30, 2020

The Bank’s deposits crossed a trillion

Rupees benchmark for the first time in

its history, registering a growth of 12%.

The Bank has opened 38 new

branches in 19 new cities bringing its

geographical network to 800+

branches in more than 240 cities

across Pakistan. This extensive

branch network is complimented with a

comprehensive array of digital services,

including Internet Banking, Mobile App

and other Alternate Distribution

Channels for delivery of seamless

Shariah-compliant banking services to

its customers across Pakistan and

around the globe.

The Bank’s profit after tax grew to Rs

11.7 billion, an impressive growth of

67% as compared to the same period

last year. The Board has approved 10%

bonus shares for the half year ended

June 30, 2020.

The Bank’s non-funded income grew

by 13% due to higher foreign exchange

income and capital gain. Administrative

and other operating expenses

increased to Rs 14.9 billion from Rs

11.7 billion in corresponding period last

year primarily due to the costs

associated with opening of 120 new

being entrusted to act as an agent to

State Bank of Pakistan (SBP). Over the

decades, NBP has redefined its role into

a modern growth-oriented Commercial

Bank by expanding its business

network across continents and

capturing sizeable market share in a

variety of businesses including but not

limited to the debt and equity capital

markets, corporate and investment

banking, retail and consumer banking,

agricultural financing, and treasury

services in Pakistan.

NBP also has a strong international

presence through its branches and

subsidiaries in the Far East, Middle

East, South Asia, Central Asia, Europe

and North America. In addition, NBP

has considerable competitive edge over

other competitor banks due to wide

customer coverage through branch

network of 1,500 plus branches in

Pakistan and 21 overseas branches.

branches since June 2019.

Total Assets of the Bank grew by 12%

to Rs 1.26 trillion. Investments grew by

36% to Rs 306 billion mainly due to

investment in GoP Ijarah Sukuk and

Pakistan Energy Sukuk – II. The Bank

remains a well-capitalized institution

with Capital Adequacy Ratio of 20.89%

as at the June 30, 2020 – which is well

above the minimum regulatory

requirement of 11.50%.

The Bank’s financing portfolio

decreased slightly than last year mainly

due to overall slowdown in economic

activity and Bank’s cautious lending

approach. Recognizing stresses in

certain sectors of the economy due to

the COVID-19 outbreak, an additional

General Provision of Rs 1 billion was

approved by the Board against any

potential non-performing financings,

bringing the Bank’s non-performing

financings coverage ratio to 129% -

one of the highest in the banking

industry while its infection ratio at 2.4%

is one of the lowest in the industry.

TRADE CHRONICLE - July .~ Aug. 2020 - Page # 29


TRADE CHRONICLE

HBL profit up by fourfold

to Rs15.2 billion

Habib Bank Limited has declared a

consolidated profit after tax of Rs 15.2

billion for H1'20, an almost fourfold

increase over the same period last year.

The Bank's earnings per share increased

to Rs 10.32 compared to Rs 2.53 in

H1'19. The strong results are

underpinned by HBL's strong domestic

franchise where the growth trajectory

continues across the range of activity

drivers and reflect the strength of the

brand. Profit before tax for the first six

months of 2020 increased by more than

2.5 times, to Rs 25.8 billion.

During the first half of 2020, domestic

deposits grew by Rs 219 billion to reach

Rs 2.4 trillion, increasing HBL's market

share to 14.12%; over 40% of the growth

came from current accounts, improving

the current account mix to 36.0% and

maintaining a strong CASA ratio of

85.7%. Total advances closed at Rs 1.1

trillion.

Compared to the same period last year,

the Bank's average domestic balance

sheet grew by Rs 294 billion driven by an

11% growth in average deposits. The

Bank's net interest income for the first six

months of 2020 thus accelerated by 32%

over the first half of 2019, to Rs 63.1

billion, on the back of volume growth and

79bps increase in net interest margin.

Despite a reduction in fee income

resulting from slower economic activity,

total non-fund income more than

doubled to Rs 16.6 billion through timely

realization of capital gains. Total

consolidated revenue thus rose by 43%,

to nearly Rs 80 billion, for the first half of

2020.

With the New York branch closed and its

Business Transformation program nearly

complete, HBL's administrative

expenses reduced by 14% over the

previous quarter. The cost/income ratio

reduced from 80.8% in H1'19 to 59.8% in

H1'20. The Bank has also prudently

taken general provisions to cater to the

impact of COVID-19 on borrowers and

the economy, improving its coverage

ratio to 95.0%.

During H1 2020, HBL accelerated its

business momentum while overcoming

the challenges thrown by the COVID-19

pandemic which had an adverse impact

on the economic growth the world over

including Pakistan. HBL's presence in 3

continents, its 1700+ branches, 2100+

ATMs, 40,000+ HBL Konnect agents,

and continued investment in technology

and talent has enabled the Bank to

perform well. Moreover, a well-designed

& practiced business continuity program

continues to serve the Bank's customers.

The Bank's customer base has grown by

40% since Dec 2019 and now stands at

over 27 million. This increase has been

driven by an accelerated adoption of the

Bank's digital offers like HBL Mobile,

Internet Banking, HBL Konnect and

payment and collection platforms. This

also includes the Ehsaas Emergency

Cash Program customers.

HBL is a market leader in Consumer

Banking. The Bank offers its customers

Credit Cards, Debit Cards, Personal

Loans, Car Financing and Merchant

Acquiring products. In H1 2020, the Bank

acquired highest number of credit cards

and car financing and in the industry. HBL

also remains a leader in the Merchant

Acquiring business with the highest

volumes processed across its Point of

Sale network. HBL continues to invest in

e-commerce with major online partners

to facilitate increased online shopping

needs of our customers with added

peace of mind of 3D Secure technology.

HBL is also the first bank in the country to

disburse personal loans and approve

credit cards in less than a minute to credit

worthy customers using HBL Mobile.

HBL's Corporate & Investment Banking

maintained its position at the forefront of

the market, continuing to be the largest

and most active in Pakistan.

EFU Life, HabibMetro Bank

collaborate to offer Covid-19 cover

Habib Metro Bank and EFU Life

strengthened their partnership

by taking the initiative to launch

"COVID - 19 Cover" - a first-ofits-kind

product that aims to

provide a financial solution to

HabibMetro customers who are

financially and medically

impacted during the ongoing

pandemic.

A digital signing ceremony was

conducted, where Mohsin Ali Nathani,

President & CEO and Ahmed Shah

Durrani, Head - Retail Banking at

HabibMetro Bank, along with Taher G

Sachak, CEO & MD and Mohammed Ali,

CSO & ED at EFU Life,

signed the product

agreement at their

respective premises.

The unique product,

Covid-19 Cover, is a

p r o t e c t i o n p l a n

designed to cover the

reimbursement of

diagnostic test and

daily hospitalization charges while also

offering term life death benefit for

individuals and families, with a premium

starting from as low as PKR 1,400. Once

launched, the plan will be available at

HabibMetro Bank's branches across

Pakistan.

Speaking on the occasion, Taher G

Sachak, CEO & MD EFU Life said, 'Covid-

19 Cover is carefully designed to address

the financial needs of the masses and

protect them medically against ongoing

pandemic. The new addition of product is

an affordable solution and a small step

towards assuring the financial safety and

peace of mind for the valuable customers

of HabibMetro Bank.'

Mohsin Ali Nathani, President & CEO of

HabibMetro Bank commented, 'We are

pleased to cater to the need-of-the-hour

and collaborate with EFU to offer the

COVID - 19 Cover Protection Plan as a

very relevant financial solution in a timely

manner during the ongoing pandemic."

TRADE CHRONICLE - July .~ Aug. 2020 - Page # 30


TRADE CHRONICLE

MCB profit up by 24%

st

to Rs 13.2 billion in 1 Half of 2020

The Board of Directors of MCB Bank

Limited (MCB) met under the

Chairmanship of Mian Mohammad

Mansha, on August 20, 2020 to review

the performance of the Bank and

approve the condensed interim

financial statements for the half year

ended June 30, 2020. In compliance

with the SBP's instructions, Bank has

not declared dividend for the second

quarter ended June 30, 2020.

With strong build up in core

earnings, MCB recorded a year

on year growth of 24 percent in

profits after tax (PAT) for the half

year ended June 30, 2020. The

Bank unconsolidated PAT

increased to Rs. 13.2 billion

compared to Rs. 10.67 billion in

corresponding period last year.

This performance translated to

Earnings Per Share (EPS) of Rs

11.15 for H1'20 (H1'19: Rs.

9.01). The strategic maturity

profiling of the investments based

on the interest rate calls resulted

in a gradual shift from shorter to

longer term investments, thereby

capitalizing upon the significant

opportunity available.

The Bank's net interest income

for the first six months of 2020

increased by 30% over the first

half of 2019, to Rs. 36.01 billion,

on the back of volume growth and

69bps increase in net interest

margin.

On the operating expenses side

(excluding pension fund reversal),

despite the surge in inflationary

pressures and increased operational

and infrastructural outreach, the Bank

was able to contain the growth in

administrative expenses and reported

a net decrease of Rs. 138 million versus

last year, with the cost to income ratio

improving from 46.1 percent in H1'19

to 38.0 percent in H1'20. This was

achieved through a strategic cost

efficiency drive initiated in 2019

ensuring delivery through well-defined

tactical plans.

The stock market has responded to the

COVID-19 pandemic with worrying

volatility; resultantly, Bank has recorded

a charge of Rs. 1.3 billion against equity

investment portfolio. With respect to

advances, the full potential effect of the

economic stress posed by the COVID-

19 outbreak remains difficult to predict,

therefore management has exercised

prudence and booked General

Provision of Rs. 4 billion during the half

year ended June 30, 2020, providing

insulation and loss absorption capacity

in case of any NPL surge.

On the financial position side, the total

asset base of the Bank on

unconsolidated basis was reported at

Rs. 1.67 trillion depicting an increase of

10% over December 2019. Analysis of

the asset mix highlights that net

investments increased by Rs. 180

billion (24%) whereas gross advances

decreased by Rs. 32 billion (-6%) over

December 2019.

The Non-performing loan (NPLs) base

of the Bank recorded an increase of Rs.

939 million and was reported at Rs.

50.4 billion. The increase was primarily

on account of currency devaluation

i m p a c t o f f o r e i g n c u r r e n c y

denominated NPLs with no significant

accretion in the number of cases. The

Bank has not taken FSV benefit in

calculation of specific provision and

has increased its un-encumbered

general provision reserve to Rs. 4.5

billion. The coverage and infection

ratios of the Bank were reported at

94.02% and 9.91% respectively.

On the liabilities side, the deposit

base of the Bank registered an

unprecedented increase of Rs.

129.92 billion (+11%) over

December 2019, with over 50%

growth from current accounts,

improving the current account

mix to 39.0% and CASA ratio to

94.2%.

Return on Assets and Return on

Equity improved to 1.66% and

18.16% respectively, whereas

book value per share was

reported at Rs. 122.93.

While complying with the

regulatory capital requirements,

the Bank's total Capital

Adequacy Ratio is 20.51%

against the requirement of

11.50% (including capital

conservation buffer of 1.50% as

reduced under the BPRD Circular

Letter No. 12 of 2020). Quality of

the capital is evident from Bank's

Common Equity Tier-1 (CET1) to

total risk weighted assets ratio

which comes to 15.23% against the

requirement of 6.00%. Bank's

capitalization also resulted in a leverage

ratio of 6.72% which is well above the

regulatory limit of 3.0%. The Bank

reported Liquidity Coverage Ratio

(LCR) of 227.51% and Net Stable

Funding Ratio (NSFR) of 174.47%

against requirement of 100.

The Bank enjoys highest local credit

ratings of AAA / A1+ categories for long

term and short term respectively,

based on PACRA notification dated

June 26, 2020.

TRADE CHRONICLE - July .~ Aug. 2020 - Page # 31


TRADE CHRONICLE

UBL profits grow by 19%

to Rs. 11.4 billion in H1’20

United Bank Limited (UBL) recorded

a year on year growth of 19% in

Profits After Tax (PAT) for the half year

ended June 30, 2020. With strong

build up in core earnings, revenues

were recorded at Rs. 48.0 billion for

H1’20, up 14% over H1’19. Despite

inflationary pressures, the cost base

remained flat versus last year at Rs.

19.2 billion, with the cost to income

ratio improving from 45.8% in H1’19

to 39.9% in H1’20. This performance

translates to earnings per share

(EPS) of Rs. 9.31 for H1 ’20 (H1 ’19:

Rs. 7.80). UBL is one of the largest

private sector banks in Pakistan with

a footprint of 1,361 branches and

1,482 ATMs located all across the

country, with over 5 million branch

banking customers.

During the second quarter of 2020,

UBL crossed a landmark deposit

level of Rs. 1.5 trillion. Domestic

deposits closed at Rs. 1.3 trillion,

growing by 10% over Dec’19, a net

increase of Rs. 128 billion. This enabled

the bank to grow its deposits market

share to well over 8%.

Islamic Banking

Islamic Banking continues to gain

momentum with a footprint of 100

branches as well as 162 Islamic

banking windows. UBL’s portfolio of

Islamic deposits now stands at Rs. 98

billion, with 20% growth over Dec’19.

The bank maintained its strategic

relationship across the world as the

preferred bank for overseas Pakistanis,

bringing in home remittances of over

USD 6 billion in the last one year, with a

market share of over 25%.

Furthermore, our branchless banking

proposition, UBL Omni, is playing a

prominent role in promoting greater

financial inclusion in the country, and

continues to be a market leader in

providing basic banking services to the

large unbanked population. The Omni

‘Dukaan’ network extends to around

35,000 agents spanning over 1,400

cities and towns.

UBL’s net advances stood at Rs. 585

billion as at Jun'20 (Dec’19: Rs. 636

billion). The bank’s loan book is driven

by the domestic Corporate Banking

Group, maintaining a quality portfolio

across diverse industries which

includes fertilizers, chemicals,

e n g i n e e r i n g , t e l e c o m a n d

pharmaceuticals. Led by autos

financing, the domestic consumer loan

portfolio stood at Rs. 16 billion. The

bank is also an active player in the SME

and agri-lending space, with

approximately half of its branches

dedicated to rural areas. The bank also

remains a key partner to large

corporate and public sector

organizations in meeting their cash

management needs.

Gill appointed President

& CEO of ABL

Aizid Razzaq Gill has been appointed

as President & CEO of Allied Bank

Limited (ABL) with effect from next year.

According to ABL announcement, the

Board of Directors of ABL

in its meeting held on

August 20, 2020 has

decided to appoint Aizid

Razzaq Gill as President &

CEO of ABL with effect

from January 01, 2021

subject to the approval of

State Bank of Pakistan and

c o m p l i a n c e w i t h a l l

applicable laws, rules and

regulations in this regard.

Currently, he is serving as

Chief Risk Management of ABL.

Existing CEO of ABL Tahir Hassan

Qureshi will continue to serve till

completion of his existing term i.e.

December 31, 2020. The Board of

Directors has also acknowledged

invaluable contribution of the outgoing

P r e s i d e n t &

C E O T a h i r

Hassan Qureshi

for progress of

the Bank during

his tenure.

Aizid Razzaq

G i l l i s a

s e a s o n e d

p r o f e s s i o n a l

with over twenty

y e a r s ’

experience in

Financial Management, Risk Analysis &

Research and expertise in Portfolio

Management of Corporate and

Commercial Banking obligors.

Working with various financial

institutions, he joined Allied Bank in

2005 as Regional Corporate Head and

has also held the positions of Head

Commercial Assets and Group Head

Liabilities.

He has vast exposure in Risk

Management, and before becoming

Chief Risk Management Group at ABL,

he also served as Head of Commercial

& Retail Risk, Head of Operational Risk,

Group Head Credit Administration,

Group Head Corporate & Financial

Institutions Risk, and Chief General

Services & Security Group.

TRADE CHRONICLE - July .~ Aug. 2020 - Page # 32


TRADE CHRONICLE

BankIslami posts Profit After Tax

of over Rs. 1 Billion for HY2020

The Board of Directors of BankIslami

Pakistan Limited (‘The Bank’ or

‘BankIslami’) in their meeting held on

August 28, 2020 in Karachi approved the

Bank’s interim financial results for the first

half year ended June 30, 2020.

BankIslami generated operating profits

(before provisions and tax) to the tune of

Rs. 3,382 Mn, registered a growth of 89%

from last year. Growth in operating profits

was driven by higher spreads,

enhancement in core earning assets on

the back of increase in deposits and

improvement in cost to income ratio of

the Bank. Provision against credit losses

increased by around Rs. 670 Mn as the

Bank, on prudent basis, booked

subjective charge against potential

impairments. In spite of this, the Bank

posted a profit after tax of Rs. 1,074 Mn

for the period ended June 30, 2020 which

is 85% higher than profit after tax of

Rs.581 Mn recorded during the same

period last year.

The COVID-19 pandemic resulted in

uncertainty and disruption at social and

economic level across the globe.

BankIslami being a responsible

institution, took a various counter

measuring steps based on guidelines

issued by WHO, SBP and Govt. of

Pakistan to ensure provision of safe and

healthy environment for its employees

and valued customers. Furthermore,

pursuant to the deferment related relief

packages announced by SBP, the Bank,

profoundly engaged with its customers

so that they can inhibit the financial

challenges ensuing from COVID – 19. The

Bank also approached existing and new

customers to extend credit facilities

under specialized re-financing schemes

introduced by the apex authority.

In order to cement its risk absorption

capacity and strengthen its capital

adequacy, the Bank successfully issued

Pakistan’s first ever Listed Islamic

Additional Tier-I Capital Sukuk (ADT-1

Sukuk’) during the current year. The total

issue size of ADT-1 Sukuk is Rs.2 Bn, of

which Rs.1.7 Bn was raised by the Bank

during the Pre-IPO phase in 2019, while

the remaining Rs. 300 Mn was collected

via successful IPO which was

oversubscribed by 1.07 times,

Alhamdullilah.

The second quarter of 2020 was

influenced by economic challenges

escalated due to COVID-19, resulting in a

policy rate cut of 625 bps to facilitate the

leveraged segments of the economy. In

line with this, moving forward banking

spreads are expected to decline, as the

asset portfolio will be repriced largely

during the latter half of the year 2020.

Risk averse strategy towards credit

offtake, re-profiling of deposits with

greater focus towards accumulating low

cost CASA deposits and controlled

growth in operating expenses will be

Bank’s focal areas going forward.

Mastercard partners with Faysal Bank

to expand digital payments in Pakistan

digital payments in the country,” said

Yousuf Hussain, President and CEO of

Faysal Bank.

Mastercard has expanded its existing

strong partnership with Faysal Bank

through an agreement that will further

support the digitization of the payments

infrastructure and accelerate the growth

of digital transactions in Pakistan – a

focus area which has the potential to

boost Pakistan’s GDP by up to 7%

according to McKinsey Consulting.

Mastercard already had credit issuance

with Faysal Bank in place and with the

recent agreement, the Bank can also

issue Mastercard debit cards and enable

Mastercard QR on the Faysal Bank digital

app. Additionally, Mastercard will bring

virtual cards to Pakistan, helping provide

additional peace of mind to online

shopping. Faysal Bank will help enable

this functionality for other banks across

the country.

“Partnerships are the building blocks of

stronger payment ecosystems that

connect more people to safe and secure

payments. Our continued collaboration

with Faysal Bank is great news for

Pakistan’s payment infrastructure, and

with every new card issued and QR

transaction made, we are one step closer

to a world where more opportunities can

be embraced without the burden of

cash,” said Atyab Tahir, Mastercard’s

Country Manager for Pakistan.

“We are pleased to expand our

partnership with Mastercard and

enhance our product offering for

customers in

Pakistan. As a

leading Bank in

the country, we

r e m a i n

focused on

digital growth,

seamless user

experiences

which increase

convenience

and look at this

partnership to

increase the

r e a c h a n d

accessibility of

Mastercard is ambitiously forging

partnerships with banks and mobile

network operators across the Middle

East & Africa to deliver value-added

payment solutions that are making

access to digital transactions easier and

safer for more people. Earlier this year the

technology leader made a global

commitment to help bridge the digital

divide by bringing 1 billion people into the

digital economy by 2025.

TRADE CHRONICLE - July .~ Aug. 2020 - Page # 33


TRADE CHRONICLE

Pak-Qatar General Takaful extends

support to covid-19 frontline heroes

NIFT ePay: Bank Alfalah, NIFT

launch strategic collaboration

Pak-Qatar General Takaful (PQGTL) a

leading provider of non-life Takaful

services in Pakistan announced that it

will be offering exclusive discount on

vehicle coverage to Frontline heroes

(Health workers & Paramedics, Branch

Banking Staff, Social Workers & NGOs’,

and Airline Staff) as they risk their lives

every day in the fight against the

Coronavirus.

Muhammad Nasir Ali Syed, CEO PQGTL

said: “The sudden and impactful change

brought on by Coronavirus is a reminder

that now more than ever it’s important to

be there for each other and to be mindful

of one another. Today, I am proud to

announce this initiative as a support for

JS Bank Crosses Rs. 400

Billion in Deposits

JS Bank, one of the fastest growing

financial institutions in Pakistan, recorded

another milestone with its deposit base

reaching the Rs 400 billion (approx. USD

2.3 Billion) mark. Earlier this year, JS Bank

won ‘Best Bank for SMEs’ and ‘Best

Bank for CSR’ awards at the Asiamoney

Awards 2020, as well as the Best Bank

Bank Alfalah & National Institutional

Facilitation Technologies (NIFT)

announced their strategic collaboration

on NIFT's digital financial services

platform “NIFT ePay”, which is an

industry first, enabling bank accounts for

e-commerce across the banking

industry. NIFT's partnership with Bank

Bank Alfalah Islamic & IBA

launch scholarship fund

Bank Alfalah Islamic and the Institute of

Business Administration have

announced the Alfalah Islamic

Scholarship Program to provide

financial assistance for five fresh

undergraduate students for their entire

first year.

The MoU for this initiative was signed by

Alfalah is unique and multidimensional;

the Bank has supported in the realization

of this new ecosystem by not only being

the settlement bank for NIFT ePay, but

also allowing access through its

payment gateway - Mastercard's MPGS

- to NIFT ePay merchants for facilitating

card transactions.

the fund to support students on the

basis of academic excellence, personal

circumstances or economic hardship.

The scholarships will be awarded on a

case-by-case basis, and funding can

cover complete educational expenses

such as admission, tuition, hostel and

books to support deserving students in

furthering their education.

“We are grateful to Bank Alfalah Islamic

for extending their support for students

from our upcoming classes. Their

for SME (Pakistan) at the Asian Banking

and Finance Awards. “Deposit growth is a

key indicator of customer confidence and

financial stability”, said Basir Shamsie,

President and CEO - JS Bank. “It is the

support and patronage of our clients that

has enabled us to scale so rapidly despite

our relatively short time in the market.”

Growing from strength to strength, the

bank’s continuous rise in deposit base

and accounts, reflects highest standards

of service and satisfaction experienced

by an ever-increasing customer base.

Committed towards its role as a catalyst

towards the progress and prosperity of

Pakistan, the Bank hopes to continue this

journey of impact by providing a variety of

innovative conventional and digital

solutions in the years ahead.

Mr. Atif Bajwa, CEO and President of

Bank Alfalah and Dr. S Akbar Zaidi,

Executive Director IBA, at a ceremony

held at Bank Alfalah Head Office.

Under this agreement, Bank Alfalah

Islamic will be contributing Rs. 850,000

each for a total of Rs. 4.2million to seed

generosity will help students and their

families in this time of unprecedented

crisis by enabling the gift of higher

education and their better future, which

represents an investment in a better

future for all of Pakistan.” said Dr. S

Akbar Zaidi, Executive Director, IBA.

TRADE CHRONICLE - July .~ Aug. 2020 - Page # 34


TRADE CHRONICLE

Standard Chartered Pakistan

announces H1 2020 results

The Bank performed exceptionally well in

H1 2020 and delivered profit before tax of

PKR 16.2billion, which is 26percent

higher than corresponding period last

year.

With Revenue of PKR 23.5billion, the

overall revenue growth was 26per cent,

whereas client revenue increased by

27per cent year on year with positive

contribution from Financial Markets,

Retail Products and Transaction banking.

Cost discipline continues with only 4per

cent year on year increase in operating

expenses.

The current slowdown in the economic

activity due to COVID 19 impacted the

advances momentum. The Bank is

closely monitoring the portfolio in the

backdrop of the changing economic

environment and is maintaining adequate

provisions, where required.

The Bank achieved another milestone as

total deposits crossed PKR 500billion.

With a growth of 17per cent in H1, total

deposits closed at PKR 547billion, with

current and saving accounts constituting

93per cent of the deposits base. The

robust performance resulted in an

increase of 14% in total assets to achieve

the PKR 700billion milestone. The

optimal funding structure of the balance

sheet continues to support the Bank’s

performance.

Commenting on the results, Mr. Rehan

Shaikh, Chief Executive Officer, Standard

Chartered Bank (Pakistan) Limited said, “I

am delighted to announce our First Half

2020 results. The Bank has performed

exceptionally well and has continued to

deliver on all key metrics on the back of a

strong balance sheet.

While the external environment remains

challenging, our results demonstrate our

strong business fundamentals he said

and added, we continue to invest in

digital capabilities to enhance our clients’

banking experiences whilst continuing to

focus on strengthened foundations of

controls and conduct, equipping us to

effectively manage our risks, capital and

liquidity. The prudent and proactive

measures that we are taking now will

make us leaner and fitter to take

advantage of the opportunities that will

help the franchise grow in the future.”

Bank Alfalah reports PAT

to Rs. 5.584 billion in 1HFY20

The Board of Directors of Bank Alfalah

Limited in its meeting held on August25,

2020, approved the Bank’s unaudited

condensed interim financial statements

for the half year ended June 30, 2020.

The Bank’s operating profit at Rs. 14.386

billion showed a growth of 16.1%

compared to the corresponding period of

2019.In view of economic impact of

pandemic, the Bank has adopted more

conservative view for provision built up

against advances which includes

subjective provisioning and general

provision on account of expected credit

weakening amid covid pandemic.

Accordingly, the Bank reported profit

after taxation of Rs. 5.584 billion for the

half year ended June 30, 2020 as

compared to Rs. 6.209 billion for the

corresponding period, which translates

into earning per share of Rs. 3.14 (Jun

2019: Rs. 3.50).

Net interest income increased by 7.8%

which was driven by higher average

earning assets along with better balance

sheet management seeking to mitigate

the impacts of spread compression.

Non-markup income stood at Rs. 6.882

billion, higher by 38.2%, with strong

contribution from capital gains of Rs.

1.733 billion and FX income of Rs. 2.009

billion due to favorable exchange rate

movement. Fee and commission income

declined due to lower transactions

volume amid the lockdown in the country.

Operating expenses were contained at

11.3% compared to same period last

year. This increase was largely driven by

staff costs, IT support and maintenance

fee, full year impact of new branches

opened last year along with overall

impact of inflation and rupee devaluation.

The cost to income ratio of the Bank

improved to 51.4% as compared to

52.1% during the corresponding period

last year.

Total deposits and advances reported at

Rs. 808.090 billion and 537.540 billion,

respectively. The Bank’s focus remains

on re-profiling its deposit base. CASA

ratio improved to 81.25% which remains

a leading indicator for the Bank in the

industry. Gross advances to deposits

ratio stood at 66.5%.

The Bank is in process of issuing Medium

Term Note (MTN) in the form of Rated,

Secured, Listed, Redeemable Fixed Rate

Term Finance Certificates (“TFCs”) of up

to PKR 50 billion in multiple tranches

having individual instrument maturity of 3

year or more. The instrument will be

secured against Government Securities.

The issue has been assigned a rating of

AAA (Triple-A) by PACRA. . The primary

purpose behind the issuance of the TFCs

is to hedge the Bank’s fixed rate assets.

At the close of the half year, the Bank

remains adequately capitalized with CAR

at 17.67%.

TRADE CHRONICLE - July .~ Aug. 2020 - Page # 35


Automobile News

Pak Suzuki losses

increase in 2QCY20

Pak Suzuki Motor Company

(PSMC) posted loss after tax of

Rs1.52bn and loss per share at

Rs18.49 during a 2QCY20 period.

It compared with LAT of Rs545m

and LPS at Rs6.62 in 2QCY19 and

a loss of Rs941m and LPS of

Rs11.44 in 1QCY20.

The 1HCY20 losses settled at

Rs2.46bn and LPS at Rs29.92

compared to loss of RS1.53bn and

loss per share at Rs18.53.

July 2020: Industry sales

revert to January 2020 levels

In July 2020, Auto industry sales of

11,659 units (down a modest 7% yoy)

sustained the upward momentum from

June's sales of 8,753 units (up 33%

mom). This may potentially be due to the

progressive easing of lockdown

c o n d i t i o n s a n d i m p r o v i n g

macroeconomic indicators, in analyst

views. Both premium carmakers, INDU

and HCAR, saw a sharp increase in sales

both on a yearly and monthly basis, with

INDU sales up 68% yoy / 60% mom and

HCAR sales up 46% yoy / 23% mom.

units in June. HCAR sales may reflect the

pickup in urban demand post lockdown.

PSMC's Alto and Cultus sales rose 30%

mom each (while down 53% yoy / 11%

yoy, respectively). Wagon R sales, rose a

decent 19%, while also declining on a yoy

basis by 33%. PSMC recently

announced price increases for the Bolan

and Ravi by an average of c.3.3%, which

is likely aimed at passing on the PKR

depreciation of c.3% since April.

Tractor industry

Tractor industry recorded sales of 3,606

units, up 17% yoy, while down 32%

mom. Sales for AGTL saw a 27% mom

decline (up 25% yoy) to 1,401 units, while

Suzuki Swift

to be discontinued

Pak Suzuki Motor Company

(PSMC) posted a 2QCY20 loss after

tax of Rs1.52bn and loss per share

at Rs18.49.

It compared with LAT of Rs545m

and LPS at Rs6.62 in 2QCY19 and a

loss of Rs941m and LPS of Rs11.44

in 1QCY20.

The 1HCY20 losses settled at

Rs2.46bn and LPS at Rs29.92

compared to loss of RS1.53bn and

loss per share at Rs18.53.

PSMC sales were up 28% mom to 4,991

units, while down 40% yoy.

INDU sold 1,528 units of Corolla (up 79%

mom), while sales for the highly-awaited

Yaris jumped to 1,883 units (62% mom).

Their combined sales were equal to that

in January.

Hilux sales rose a modest 11% mom (up

36% yoy) to 486 units. Fortuner sales

were up a staggering 87% mom and

97% yoy to 146 units. The relatively

stronger performance by INDU could

partly be attributed to a low base last year

(imposition of FED on below 1,800cc

cars in FY20 Budget).

HCAR sold 2,467 units in July, with Civic

and City sales of 2,210 units (up 52% yoy

and 20% mom). BR-V sales increased by

a soft 6% yoy, while up 57% mom to 257

those of MTL declined by a sharper 35%

mom to 2,205 units (up 14% yoy). The

decline in tractor sales is majorly because

of the anticipation of GST reduction.

Hence, tractor sales will likely pick up in

August as the GST subsidy was formally

implemented by end of July (GST

reduced from 5% to 0%).

Industry sales have almost reverted to

the January 2020 level of 11,964 units

(only 3% lower).

Looking ahead, experts believe sales to

slightly normalize from August. However,

the sharp monetary easing of 625bps in

2020 so far can lift auto-financing earlier

than expected, it is estimated. In this

backdrop, more new models besides

Toyota Yaris (potentially new Honda City)

could serve to attract consumer interest.

TRADE CHRONICLE - July .~ Aug. 2020 - Page # 36


Travel World

PIA code sharing agreements

with Pegasus Airlines

Following a temporary ban on PIA,

imposed by EASA in June after fake

licenses scandal, the airline, which used

to operate flights to Birmingham, London,

Milan (Italy), Barcelona (Spain),

Copenhagen (Denmark) and Oslo

(Norway), has managed to reach a codesharing

agreement with a Turkish low-cost

airline, "Pegasus Airlines".

According to media, Pegasus Airlines

under the said code-sharing agreement

would not only facilitate PIA passengers to

Birmingham, London, Milan, Barcelona,

Copenhagen and Oslo, but it would also

offer over 25 other EU destinations,

including the ones in Germany, Belgium,

Netherlands and Greece.

Turkish Airline to

cut freight charges

Turkish Airline has assured Pakistani

exporters of reduced freight charges to

promote export of fruits and vegetables

to Frankfurt, London and other western

markets following a six-month ban on

Pakistan International Airlines by

European Union Air Safety Agency

(EASA),a statement said.

Turkish Airline General Manager Gurhan

Sozen assured of reduced freight

charges and excellent ground handling

facilities during a meeting with a

delegation of Pakistan Fruit and

Vegetable Exporters, Importers and

Merchants Association (PFVA).

Emirates to expand

its service in Pakistan

The Emirates is incr easing its

passenger service to and from

Pakistan on Aug 10, offering enhanced

connectivity to over 70

destinations within the current

network via Dubai.

An Emirates spokesman said

that the airline was set to ramp up

its flight frequency to and from

Karachi, Islamabad, Lahore and

Sialkot and resume passenger

service to Peshawar, providing its

customers worldwide with

greater access to its expanding

network.

The airline will now offer customers 53

weekly flights to Pakistan, which will

increase to 60 weekly flights starting

from Aug 16. All flights will be operated

with Boeing 777-300ER and can be

booked on emirates.com or via travel

agents.

The airline will operate 21 weekly

flights to Karachi (it will be increased to

Avari Hotels celebrates

the 73rd Independence

Avari Hotels celebrated the 73rd

Independence Day with a flag hoisting

and grand cake cutting ceremony. The

national anthem was played

during the ceremony as an ode to

the occasion and Avari Hotels all

over Pakistan were illuminated

with lights. Guests were greeted

with Independence Day wishes

and flag pins were distributed.

Guests also got to avail a discount

at all restaurants. With the

reopening of the province the

hotels are taking all necessary

precautionary measures and beyond

for Covid-19 to ensure safety of guests

as well as employees.

28 weekly flights from Aug 16), 10

weekly flights to Islamabad, seven

weekly flights to Sialkot, 10 weekly

flights to Lahore, and five weekly

flights to Peshawar. The airline

reminded its customers that travel

restrictions remained in place and

travelers would only be accepted on

these flights if they complied with the

e l i g i b i l i t y a n d e n t r y c r i t e r i a

requirements.

Customers can stop over or travel to

Dubai as the city has reopened for

international business and leisure

visitors. It said Covid-19 PCR tests

were mandatory for all inbound and

transit passengers arriving to Dubai

(and the UAE), including UAE citizens,

residents and tourists, irrespective of

the country they were coming from.

Avari Hotels also celebrates its 76th

anniversary this year and is considered

as one of the top 5-star hospitality

brands in Pakistan. It caters to

premium cuisines and a signature

experience of hospitality. The Avari

group brand has a legacy in providing

the best food and stay experience. It

has now opened up state of the art

newer properties in Lahore,

Faisalabad, Islamabad and Multan.

TRADE CHRONICLE - July .~ Aug. 2020 - Page # 37


34-A/2, Level 2, Lalazar Drive,

Opp Beach Luxury Hotel, Karachi 74000-Pakistan.

Tel: +92-21 35643371-4, Fax: +92-21 35643370

Email: bulkshipping@bulkshipping.com.pk

URL:www.bulkshipping.com.pk



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