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www.tradechronicle.com Vol 67 -Issue Nos. 1 & 2 - Jan - Feb. 2021 Rs. 250/-
ESTABLISHED IN MARCH 1953
67 th - YEAR OF PUBLICATION
TRADE CHRONICLE
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Record wheat handling by KPT
A detailed report inside
Azam Khan Swati, Federal
Minister for Railway, receiving
a memento during his visits
to Marine Group’s head office
in Karachi
MG
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www.tradechronicle.com Vol. 67 Issue Nos. 1 & 2 Jan - Feb 2021 Rs. 250/-
TRADE CHRONICLE
PAKISTAN OLDEST MONTHLY MAGAZINE OF COMMERCE, TRADE, INDUSTRY & PUBLIC AFFAIRS
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editorial
CONTENTS
• PM Imran Khan visits to Sri Lanka will boost mutual trade relations
editorial comments
• The new five-year textile policy, need of the hour
article & feature
• Pakistan offers $50m credit line to Sri Lanka for defence ties
• A Prism View over Foreign Direct Investment (FDI) in Pakistan
by Dr. Muhammad Nawaz Iqbal
• Pakistan’s relationship with Turkey pre-dates independence of both states: CM
• Jan Jamali appointed honorary CG of Turkey
• Alternative energy
by Syed Akhtar Ali
leather industry
• Prime Minster of Pakistan Imran Khan has awarded “Ambassador of Hope “
award to S.M.Muneer
• Billions of rupees will be paid to industrialists in DLTL soon: Finance Minister
Hafeez Sheikh
• Italian Ambassador visits to IPFTC in Lahore
• Pakistan’s leather industry exports continue to fall in 7MFY20
• Bangladesh reports fall in leather exports during 7MFY21
• Textile Industry Alkaram Textile Mills wins awards at the 10th Annual CSR
Summit
ports & Shipping
• Marine Group apprises Railway Minister, freight trains business plan for the terminal
• Federal Minister of Railways visits Hutchison Ports Pakistan
• Hutchison Ports Pakistan sets another record for handling maximum TEUs on
a single vessel
• Bangladesh Shipping Corporation to purchase six LNG tankers
• Minister visits QICT, PIBT and MYP
• MoU signed for Gwadar Shipyard construction
• Engro Elengy Terminal sets new industry record
• Transit trade: Gwadar port to help country become regional hub: President
• Aza Khel dry port inaugurated
• Dp World reports +7.6% Gross volume growth in 4Q2020 and flat growth for
. FY2020
• PIBT handles 1.04m tons of coal cargo in Dec 2020
• Wheat discharging record created at K.P.T
• Honourable Governor of Sindh Mr Imran Ismail is handing over keys of Fire
Tenders gifted by Prime Minister of Pakistan, to Chairman KPT during a
ceremony held at Governor House
• Minister Maritime Affairs Syed Ali Haider Zaidi chaired the first meeting on
Maritime Transshipment Strategy with Maritime partners at KPT Head office
regular features
• Automobile News, Banking & Insurance News, Cement Industry,
• People Events, Telecommunication News & Travel World
New features
• Steel & Allied Industry, Oil & Gas
TRADE CHRONICLE - Jan - Feb - 2021 - Page # 5
TRADE CHRONICLE
We begin with the name of Allah the Magnificient
PM Imran Khan visits to Sri Lanka will boost mutual trade relations
In late Feb, Pakistan Prime Minister Imran Khan’s two-day official visit to Sri Lanka
would strengthen the bilateral trade relations between the two SARAC countries.
The visit has significant importance in the backdrop of India making vigorous
efforts to improve its ties with Sri Lanka, which has assumed strategic importance
in the Indian Ocean region.
Since Pakistan is part of the Chinese president’s Belt and Road Initiative through
its flagship China-Pakistan Economic Corridor (CPEC) project, Sri Lanka could
benefit from it through enhanced connectivity up to the Central Asian states said
Prime Minister Khan who along with Foreign Minister Shah Mahmood Qureshi,
Commerce Adviser Abdul Razzak Dawood and Special Assistant Syed Zulfikar
Abbas Bukhari was on a two-day visit to Sri Lanka on the invitation of PM Rajapaksa.
FROM THE
EDITOR’S
DESK
The visit afforded both sides a timely opportunity to build upon their regular
consultations in the areas identified during the recently held foreign secretarylevel
bilateral political consultations, joint economic commission session, and the
commerce secretary-level talks, the joint communique said.
On the sidelines of the visit, Imran Khan participated in a joint ‘Trade and
Investment Conference’ to promote trade and investment between the two
countries. It was followed by several MoUs covering subjects such as tourism,
investment, technology, education, etc. Prime Minister Mahinda Rajapaksa and
Pakistani Prime Minister Imran Khan agreed on an ambitious action plan to curb
arms and drug smuggling.
Pakistan has offered a $50 million new credit line to Sri Lanka for cooperation in
defence and security.
ABDUL RAB SIDDIQI
The memorandums of understanding (MoUs) signed during the visit include i)
MoU on cooperation in tourism, ii) MoU between the Boards of Investment, iii) MoU
between Sri Lanka’s Industrial Technology Institute (ITI) and Karachi University’s
International Centre for Chemical and Biological Sciences, iv) Intent of cooperation
between ITI and Comsats University Islamabad and v) MoU between University of
Colombo and Lahore School of Economics.
Pakistan’s exports to Sri Lanka grew from US$ 97 million in 2004 to US$ 355 million
in 2018, while; Sri Lanka’s exports to Pakistan grew from USD 47 million in 2004 to
US$ 105 million in 2018. However, the two-way trade is only US$ 460 million while
the potential is more than US$ 2 billion, which has to be taped by both sides.
Sri Lanka is an important market for textile products, machinery, pharmaceuticals,
cement and other products that Pakistan records significant exports.
At the Pakistan-Sri Lanka Trade and Investment Conference held in Colombo, the
two countries highlighted the importance of achieving a $1 billion bilateral trade
target. They agreed to work towards broadening and deepening of Pakistan-Sri
Lanka Free Trade Agreement (FTA).
President Gotabaya Rajapaksa and Prime Minister Imran Khan pledged to promote
FDIs and both sides discussed areas of investments. Due to a lack of awareness,
exporters do not fully use the market potential and benefits under the free trade
agreement. Additionally, Sri Lankan business people tend to focus on the existing
markets. Both countries need to diversify their products through research,
TRADE CHRONICLE - Jan - Feb - 2021 - Page # 6
TRADE CHRONICLE
innovation, and value addition,
adjusting according to each
other’s market demands, experts
urge.
The visit has also helped alleviate
Muslims’ sentiments about the
funeral of the dead bodies who
died due to COVID-19 in Sri
Lanka. Prime Minister Imran Khan
reportedly spoke to the Sri Lankan
leadership on the matter and urged
them to respect the Muslims’
sentiments.
We happily note here that it
was primarily due to the prime
minister’s persuasion that the Sri
Lankan government decided to lift
the ban and allow Muslims to fulfil
their religious rituals. The news
has made international headlines.
Mr Khan deserves praise for taking
this initiative and resolving an
issue deeply troubling the Muslims
in another country.
A leading paper has rightly
pointed out that what must have
helped the Sri Lankan government
reverse its order was that the
prime minister had a successful
tour of the country and generated
significant goodwill. It is also safe
to assume that Sri Lanka would be
happy to have Pakistan on its side
on various issues and especially
those that figure in international
forums. Both Islamabad and
Colombo deserve credit for
resolving the matter amicably and
making it a win-win for all.
It is foreign policy wins like these
that add gravitas to governance
and improve relations between
countries. The prime minister has
done well, and Sri Lanka’s Muslims
are better off and relieved due to
his initiative.
Editorial Comments
The new five-year textile policy, need of the hour
Pakistan’s total export in January
2021 stood at US$2.145 bn as
compared to US$2.366 bn in
December 2020, down 9.33% MoM,
while up 8.79% YoY basis. The total
cumulative exports in 7 Months of
FY-21 reached US$14.255 bn (up
5.62% YoY). Out of these exports,
the overseas textile shipments
declined for the first time since
November, clocking in at US$1.323
bn in January – down 5.54% mom
(while up 10.79% YoY). However,
on an encouraging note, Pakistan’s
textile exports outperformed both
India and Bangladesh. Total textile
exports in 7 Months thus reached
US$ 8.766 bn (up 8.23% YoY) from
US$ 8.1bn in the same period of
last year.
Experts’ view that the decrease in
exports is seemingly due to the
seasonal trend, where exports
tend to be slow in January and
February before picking up
again for the spring and summer
seasons. However, textile exports
remain steady despite the
prolonged lockdowns in the major
exports destinations (Europe and
the US).
The above export trend illustrates
that the textile sector has not
only withstood pressures from
the Covid-19 but has grown
exports faster than before the
pandemic, where the exports have
averaged at US$1.3bn (excluding
August 2020, which was a oneoff
due to the monsoon rain and
an unusual number of holidays).
Experts believe that the sector
is likely to demonstrate similar
future growth, thanks partly to
government incentives (including
the upcoming Textile Policy
that is pending approval) and
global trends favouring Pakistani
exporters.
Keeping in view the 60 % share
of textile in the country’s exports,
we trust that the government
would soon approve the new fiveyear
textile policy, which likely
improves the sector’s long-term
competitiveness and creates
new investment and employment
opportunities in the country.
All Pakistan Textile Mills
Association (APTMA) urges the
government to approve a new
textile policy for new investment,
creating four million jobs and
sustainable export-led growth.
Another stakeholder of the textile
industry, Pakistan Readymade
Garments Manufacturers &
Exporters Association (PRGMEA),
called for the final approval of
the new textile policy 2020-25
by the Economic Coordination
Committee (ECC) of the Cabinet as
it is vital for new investment and
marketing plan in the significant
export-oriented sector.
According to APTMA, the textile
sector has started growing after
seven long years. It is currently
operating at full capacity, the
largest ever increase in exports
to $2.366 billion in December
2020. Over $3 billion investment
in new projects and expansion
are in the pipeline. It is hoped that
Rs. Fifty billion Financing Policy
for Acquisition of Sick units by
SBP can add $1 billion in exports
immediately.
APTMA has projected that the new
textile policy would double textile
exports from $13 billion to $26
billion in the policy period. Hence,
they demanded that as per the new
policy, the textile sector is ensured
the continuation of a regionally
competitive energy Tariff of 7.5
cents/kWh for Electricity and $6.5/
MMBTU for RLNG/Gas fixed for the
policy period.
It is strange that even after the
go-ahead given by Prime Minister
Imran Khan twice, the approval
of Textile Policy 2020-25 is still
awaited. Experts feared the
competing countries like India
are formulating long-term policies
to cushion the declining textile
TRADE CHRONICLE - Jan - Feb - 2021 - Page # 7
TRADE CHRONICLE
exports. If measures are not taken
in good time by Pakistan, India
is well-positioned to capture the
orders being re-routed from China
due to their large operation scale.
We hope the government would
expedite the approval to bring
a boom in the textile sector of
Pakistan.
We hope that the government
should give full attention to the
increase in exports of the valueadded
sector, specially Knitwear,
Bed Wear, Towel and Readymade
Garments, keeping in view their
total exports for the period of July
2020 to January 2021 is US$ 6.095
billion out of the entire textile
exports of US$ 8.766 Billion, i.e.
69.52% of total textile exports.
Other than the textile policy, we
hope the government would foster
an increase in domestic cotton
production, which has declined
by nearly 34% YoY so far in FY21,
through subsidies and higheryielding
seeds are the need of the
hour.
In addition to that, allow the
import of cheaper raw materials
from neighbouring countries, as
the sharp rise is hampering the
production in the value-added
sector in local and international
cotton prices.
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TRADE CHRONICLE - Jan - Feb - 2021 - Page # 8
TRADE CHRONICLE
Pakistan offers $50m credit line to Sri
Lanka for defence ties
Pakistan has offered a $50 million new
credit line to Sri Lanka for cooperation
in the field of defence and security. The
announcement was made by Prime
Minister Imran Khan, who concluded
his two-day official visit to the island
nation, said a joint communique issued
by the foreign ministries of the two
countries from Colombo and Islamabad
recently.
The two sides called for stronger
partnership in matters related to
security, terrorism, organised crime
and drug and narcotics trafficking as
well as intelligence-sharing, according
to the joint communique. They also
noted that the elevation of staff-level
talks to defence dialogue had provided
an opportunity to expand security
sector relations.
To strengthen sports
diplomacy, Pakistan would
provide Rs52 million for
promotion of sports in
Sri Lanka, according to
the communique. Prime
Minister Khan at an
interactive session with
the sports community of
Sri Lanka announced the
commissioning of the Imran
Khan High Performance
Sports Centre in Colombo.
Pakistan also announced plans to
establish Asian Civilisation and Culture
Centre at the University of Peradeniya
at the Sri Lankan resort of Kandy.
Pakistan also announced 100
scholarships in the field of medicines
(MBBS and BDS) as part of the
Pakistan-Sri Lanka Higher Education
Cooperation programme.
During the visit, the prime minister
held delegation-level meetings with
President Gotabaya Rajapaksa and
his counterpart Mahinda Rajapaksa.
PM Khan reiterated Pakistan’s support
for the socio-economic development
of Sri Lanka in line with the vision of a
peaceful neighbourhood.
The memorandums of understanding
(MoUs) signed during the visit include i)
MoU on cooperation in tourism, ii) MoU
between the Boards of Investment,
iii) MoU between Sri Lanka’s
Industrial Technology
Institute (ITI) and
Karachi University’s
International Centre for
Chemical and Biological Sciences, iv)
Intent of cooperation between ITI and
Comsats University Islamabad and v)
MoU between University of Colombo
and Lahore School of Economics.
$1bn trade target
At the Pakistan-Sri Lanka Trade
and Investment Conference held in
Colombo, the two countries highlighted
the importance of realising the goal
of achieving $1 billion bilateral trade
target and also agreed to work towards
broadening and deepening of Pakistan-
Sri Lanka Free Trade Agreement (FTA).
Both sides stressed the need to convene
the charter-based bodies and agreed
to take forward the Saarc process for
strengthening regional cooperation.
The two sides reaffirmed their joint
commitment to regional peace, security
and stability as Prime Minister Khan
underscored the need for peaceful
resolution of all outstanding disputes,
particularly Kashmir issue, through
constructive dialogue in accordance
with international legitimacy.
Earlier, Prime Minister Khan and Sri
Lankan President Gotabaya Rajapaksa
in a one-on-one meeting affirmed
cooperation at multilateral fora.
During the talks held at Presidential
Secretariat, Mr Khan emphasised the
importance of building robust economic
partnership characterised by enhanced
bilateral trade, investments, and deeper
cooperation in the fields of agriculture,
tourism, science and technology,
sports, education and culture.
The two leaders also shared
experiences in poverty alleviation
and use of technology to control food
inflation.
Referring to the rich Buddhist heritage
of Pakistan, Mr Khan highlighted that
the country had huge potential of
being a choice destination for religious
tourism for the people of Sri Lanka. Mr
Khan also extended invitation to the Sri
Lankan president to visit Pakistan at
the earliest convenience.
Connectivity
While inviting the Sri Lankan
businessmen to invest in Pakistan
by exploring the opportunities being
offered in the form of ease-of-doing
business, Prime Minister Khan
told Pakistan-Sri Lanka Trade and
Investment Conference that trade
connectivity among the countries was
vital for poverty alleviation.
He proposed establishing
trade links, as existed
among the European Union
members, which he said
could prove beneficial for
the prosperity of the subcontinent.
He said Pakistan
and Sri Lanka could explore
the idea of generating wealth
through joint business
activities and diverting the
wealth to alleviate poverty.
Mr Khan expressed intent
for Pakistan to learn from
Sri Lanka’s advanced tourism industry.
Pakistan had several undiscovered
sites of religious tourism including
the Gandhara civilization and trails
of Buddhism, he said, adding that
a recently discovered 40-foot-long
Sleeping Buddha could be of special
interest for Sri Lankan tourists. He said
joining the Belt and Road Initiative could
open up new avenues for Sri Lanka with
an opportunity to connect from Gwadar
up to Central Asian states.
Mr Khan said he had offered Indian
Prime Minister Narendra Modi for a
dialogue to resolve all outstanding
issues, particularly the Kashmir dispute,
but Pakistan did not get a positive
response.
For a sustainable prosperity, he said,
the South Asian region with 1.3 billion
people needed to resolve its mutual
conflicts through dialogue.
TRADE CHRONICLE - Jan - Feb - 2021 - Page # 9
TRADE CHRONICLE
A prism view over Foreign Direct
Investment (FDI) in Pakistan
by Dr. Muhammad Nawaz Iqbal
Business guidelines have been
redesigned along liberal lines,
particularly since 1999. Most
boundaries to the progression of capital
and worldwide direct venture have been
eliminated. Unfamiliar financial backers
don’t confront any limitations on the
inflow of capital, and speculation of up
to 100% of value interest is permitted in
many areas.
FDI in Pakistan took off by 180.6
percent year-on-year to US$2.22 billion
and portfolio theory by 276 for each
penny to $407.4 million in the midst of
the underlying nine months of monetary
year 2006, the State Bank of Pakistan
(SBP) if insights about 24 April. In the
midst of July–March
2005–06, FDI yearon-year
extended
to $2.224 billion
from just $792.6
million and portfolio
dare to $407.4
million, while it was
$108.1 million in
the relating time
period a year prior,
as demonstrated
by the latest bits
of knowledge
released by the
State Bank.
Pakistan has
achieved FDI of
for all intents and
purposes $8.4
billion in the cash related year 06/07,
beating the organization focal point of
$4 billion. International speculations
had generally declined by 2010,
dropping by 54.6% due to Pakistan’s
political instability and weak harmony,
according to the Bank of Pakistan.
Pakistan’s hard coin holds have
become rapidly. Upgraded financial
organization, more important
straightforwardness and other
organization changes have provoked to
redesigns in Pakistan’s FICO appraisal.
Along with lower overall financing costs,
these segments have engaged Pakistan
to prepay, reconsider and reschedule
its commitments further reinforcing its
favorable luck. Despite the country’s
current record excess and extended
passages lately, Pakistan actually has
a broad stock trade lack. The foreign
remittances has
assumed significant
part in Pakistan’s
economy and
unfamiliar trade holds.
The Pakistanis got comfortable
Western Europe and North America are
significant wellsprings of settlements
to Pakistan. Since 1973 the Pakistani
laborers in the oil rich Arab states have
been wellsprings of billions of dollars of
settlements. The CPEC is a milestone
project in the chronicles of history of
Pakistan. It is the biggest speculation
Pakistan has pulled in since autonomy
and biggest by China in any unfamiliar
country. CPEC is considered financially
indispensable to Pakistan in causing
it drive monetary development. The
Pakistani media and government have
considered CPEC ventures a “game
and destiny transformer” for the area,
while both China and Pakistan mean
that the enormous speculation plan
will change Pakistan into a territorial
financial center point and further lift
the developing ties between the two
nations. Saudi Arabia is the biggest
wellspring of petrol for Pakistan. It
additionally supplies broad monetary
guide to Pakistan and settlement from
Pakistani travelers in Saudi Arabia
is likewise a significant wellspring of
unfamiliar money for Pakistan.
As of late, the two nations have traded
undeniable level appointments and
created plans to extend respective
collaboration in exchange, schooling,
land, the travel industry, data
innovation, correspondences and
horticulture. Saudi Arabia is supporting
the advancement of exchange
relations with Pakistan through the
Gulf Cooperation Council, with which
Pakistan is arranging an international
alliance; the volume of exchange
among Pakistan and GCC part states
in 2006 remained at US$11 billion.
Turkish and Pakistani governments
have looked to build the volume of twosided
exchange from $690 million to
more than $1 billion by 2010.
Pakistani fares incorporate rice, sesame
seeds, cowhide, materials, textures,
sports merchandise, and clinical
hardware. Turkey’s fares to Pakistan
incorporate wheat, chickpeas, lentils,
diesel, synthetic substances, transport
vehicles, hardware and energy items.
Turkish private partnerships have
likewise put essentially in mechanical
and development projects creating
parkways, pipelines and waterways.
More than $33
billion worth of
energy foundation
are to be built by
private consortia
to help reduce
Pakistan’s
persistent energy
deficiencies, which
consistently sum
to over 4,500MW,
and have shed an
expected 2–2.5%
off Pakistan’s yearly
total national output.
More than 10,400
MW of energy
producing limit is to
be brought online
before the finish of
2018, with the lion’s share created as
a feature of CPEC’s optimized “Early
Harvest” projects.
An organization of pipelines to move
condensed petroleum gas and oil will
likewise be laid as a feature of the task,
including a $2.5 billion pipeline among
Gwadar and Nawabshah to in the end
ship gas from Iran. Power from these
activities will essentially be produced
from petroleum products, however
hydroelectric and wind-power projects
are likewise included, similar to the
development of one of the world’s
biggest sun oriented homesteads.
Despite of Pandemic Situation,
Pakistan FDI increases to 88 percent
in the year 2020. The major Support
on this investment is CPEC and its
relevant projects that fuels the national
economy.
TRADE CHRONICLE - Jan - Feb - 2021 - Page # 10
TRADE CHRONICLE
Pakistan’s relationship with Turkey pre-dates
independence of both states: CM
Sindh Chief
Minister Syed
Murad Ali
Shah while
addressing the
inauguration
ceremony of
new building
of Turkish
Consulate at
Clifton said that
Pakistan’s relationship with Turkey predates
the independence of both states.
He said that under the British rule,
the Muslims of India regarded the
Ottoman Sultan as their Caliph and
Muslim freedom fighters led the
Khilafat Movement to collect donations,
assisting their Turkish brethren in their
struggle for independence. During
Turkey’s War of Independence from
1919 to 1923, the Muslims of British
India extended their unflinching
support to their Turkish brothers by
sending financial assistance to the
Ottoman Empire, the CM said and
added that during the Turkish-Russian
War, a notable educationist from Sindh,
Hassanally Effendi mobilised the
people of Sindh to help the people of
Turkey during the war.
Shah said that in recognition of Effedi’s
struggle, Turkish government awarded
him with two Turkish titles: “Effendi”
and “Bey.” He added that Effendi
was also appointed as the honorary
Turkish Consul in Karachi. “Based on
this history, the people of Pakistan
and particularly of Sindh, share a very
special bond with Turkey that has been
preserved for over a century,” the CM
said.
When it comes to independence or the
strengthening of democracy, the political
struggles of Pakistan and Turkey have
been quite similar, Murad Shah said
and added both the countries have
had similar struggles for democracy
and both have had female prime
ministers: Ms Tansu Ciller, the 22nd
Prime Minister of Turkey, and Shaheed
Mohtarma Benazir Bhutto both served
as prime ministers. He said as female
prime ministers of Muslim countries,
they shared a strong relationship. He
added that in 1994, they visited Bosnia
together ‘as brave mothers and not as
politicians’ to appeal to world leaders to
end civilian
atrocities
in Bosnia.
The CM said that Turkey and Pakistan
did not just share strong diplomatic
relations but also deep economic,
religious, cultural and military ties.
“Turkey was amongst the first
few countries that recognised the
independent state of Pakistan and
supported Pakistan’s bid to gain UN
membership,” he said and added, “the
Republic of Turkey has expressed its
unequivocal and categorical support
and solidarity with Pakistan on the
issue of Kashmir.”
Murad Ali Shah said that the Turkish
Government has always stood by
us during difficult times. “During the
earthquake of 2005 in Pakistan, Turkey
announced $150 million package for the
earthquake victims,” he said and added
that during the 2010 floods in Pakistan
when the Pakistan People’s Party was
in power, the Turkish Government
provided extensive assistance,
including the reconstruction of houses
in flood-affected areas. Similar aid was
extended by Pakistan to Turkey with
aid from our government flown in during
the earthquakes in Turkey in 1999 and
2011, Shah said.
The CM said that the Pak-Turkey
Strategic Economic Framework has
led to billions of dollars of trade and
investment between the two countries,
particularly in areas of transport,
telecommunications, manufacturing
and tourism. “Both countries are
founding members of the Economic
Cooperation Organisation and also a
part of the Developing-8 Countries,”
he said and added with the Turkey-
Pakistan Free Trade Agreement
underway, we could foresee our
bilateral trade to achieve new heights.
According to CM, Pak-Turk schools
have played a key role in educating
countless children in Pakistan who are
attending these schools. He added that
each year we witnessed an increase
in the number of Pakistani students
pursuing higher education in Turkish
universities.
“Today the inauguration of the new
building of the Consulate and the visit of
Turkish Foreign Minister to inaugurate
this diplomatic office marks another
beginning, highlighting the strength of
Jan Jamali appointed
honorary CG of Turkey
Senior politician and member of
Balochistan Assembly Mir Jan
Muhammad Jamali has been appointed
as Honorary Consul General of Turkey
in Pakistan.
Turkish Ambassador to Islamabad
Ehsan Mustafa on the occasion
assigned responsibilities to Honorary
Consul General Mir Jan Muhammad
Jamali and said that the nominated
Consul General will play his
responsibility to promote effective
cooperation and friendly relations
between the two Islamic countries
in various fields, according to the
statement issued.
The Turkish national flag will be hoisted
at his residence in Quetta.
It should be noted that Mir Jan
Muhammad Jamali, a member of
Balochistan Assembly from Balochistan
Awami Party (BAP), is also a retired
captain from the Pakistan Army.
our ties with the Republic of Turkey,” he
said.
Trade & Investment: Earlier, the
Foreign Minister of Turkey Melvut
Cavusoglu along with delegation
attended a reception the Sindh Chief
Minister hosted for him at CM House.
The provincial ministers and chief
secretary also attended the reception.
The chief minister invited Turkish
investors to invest in urban transport,
waste management in Karachi, in
renewable energy and in coal mining.
The visiting Turkish minister agreed to
send his investors to Sindh to explore
investment opportunities, however,
he agreed to work with the Sindh
government in Urban Transport and
Waste Management.
The chief minister presented traditional
gifts, Damburo (a musical instrument),
Rilhi, Sindhi bed sheet, Khes, Ajrak
and Thari shawl. The visiting guest told
the chief minister that the President of
Turkey would visit Karachi during his
next visit to Pakistan. The chief minister
and the visiting foreign minister agreed
to exchange delegation of investors
so that they could explore investment
opportunities in both the countries.
Courtesy Business Recorder
TRADE CHRONICLE - Jan - Feb - 2021 - Page # 11
TRADE CHRONICLE
Alternative energy
by Syed Akhtar Ali
It is increasingly becoming clear that
RLNG has issues of irregular pricing
and other supply chain issues like
availability of infrastructure.
In the wake of dwindling local gas
production, the government is almost
frantically looking to ways to close the
demand-supply gap. It is trying to divert
gas from captive power plants to other
sectors, a move that has been opposed
by the textile sector. It appears that
RLNG is not the panacea it appeared
to be earlier.
Although RLNG will remain a major
gas resource in light of dwindling
local supplies, for energy security
and stability it may be wise to add
to resource diversity by examining
alternative sources. In this space, we
examine the prospects of liquid fuels in
meeting the fuel supply gaps of power
plants.
Substantial investment has been made
in RLNG combined cycle power plants
which are highly efficient in terms
of energy consumption. Gas supply
to these plants had to be curtailed
last December from 350 mmcfd to
240 mmcfd due to heavy winter gas
demand by the domestic sector; both
supply and pricing issues were the
possible reasons. LNG prices reached
unaffordable high levels in the same
period. High LNG prices in the winter
are a routine matter, but this winter, it
became extraordinarily high.
Consequently, RFO continues to be
used; it has become cheaper than gas in
many instances. However, only steam
plants can use RFO, which cannot be
used in more efficient gas turbines
combined cycle power plants. Instead,
diesel has been used. Diesel is very
expensive and also diverts supplies
from the transport sector. Diesel-based
power costs twice – Rs15-20 per kWh
as compared to Rs7-10 – as much as
RLNG, even on combined cycle power
plants.
Gas demand has been increasing.
In the meanwhile, K-Electric is facing
a power shortage and has to install
a power plant on an urgent basis for
which gas has to be provided out of
the current infrastructure. LNG terminal
utilization has been erratic as well for
a variety of reasons. It is very difficult
to balance RLNG supply with demand
on an hourly basis. The excess may
have to be vaporized, if such intricate
balance is not maintained. There are
Take-or-Pay limitations as well. In the
coming years, the demand and supply
gap may increase due to infrastructural
issues. Pipeline capacity is limited and
may not come up on time to match the
demand.
It may thus be advisable to look into
other liquid energy sources that can be
utilized in power plants, such as naphtha
and condensate. Naphtha is produced
by oil refineries as a byproduct. For
naphtha’s local utilization in the form
of a naphtha cracker facility that could
produce petrochemicals (plastics),
naphtha is exported. Condensate
is also exported and utilized by oil
refineries. Condensate is produced
from local gas production. It is a lighter
crude oil that is suspended in the gas
stream. In earlier days, it used to be
utilized as gasoline.
In many jurisdictions, naphtha has
been used in gas turbine power plants.
Some 11000 MW of such capacity has
been on naphtha in India. However, in
India, there is other better utilization of
naphtha for producing petrochemicals.
Similarly, condensate has also been
used in gas turbines. It is a question of
economics and availability. An added
advantage of liquid fuels is storage
possibilities; gas cannot be stored,
at least in the current circumstances
when there is no gas storage facility.
Altogether, in the year 2018-19,
around one million ton of condensate
and naphtha has been exported;
condensate exports were of 553,907
tons, while 418,941 tons of naphtha was
exported. Naphtha exports have been
going down. A few years back, it was
exported as much as one million tons.
Perhaps its local use has increased
for high-octane gasoline production.
Recently, PPL has announced the
export of 400,000 tons of condensate.
This indicates an adequate surplus of
both naphtha and condensate.
In these circumstances, KE may be well
advised to look into these resources
to use partially or wholly, instead of
solely depending on the government’s
promises of allocating gas. Karachi has
been suffering from power shortages
and in the coming years it may
become even worse in the absence
of both capacity and energy supply
reinforcement. The government may
also like to look into the prospects of
using naphtha/condensate, especially
in the intervening years.
This is proposed as an interim solution
till the gas sector supply chain is
stabilized, which may not take less than
5-7 years – although longer-term issues
of energy security and diversity would
remain. One of the two, naphtha or
condensate, should be able to provide
the gap-balancing role. The large gas
demand variation between summer
and winter will remain, possibly with
large LNG price variations. It is always
good to build options.
Condensate, however, is flammable
and has to be stabilized before it is
transported. As condensate is being
exported regularly, stabilization
equipment may already be there.
There may be economic issues as well.
Condensate is sold at crude oil prices
or maybe at a slight premium. At 60
USD/bbl, the condensate price should
be around 10 USD/MMBtu. The winter
price of LNG can be 14 USD/MMBtu
plus 2 USD processing and transport
margin. It is in the winter that there is
a demand-supply gap which is likely
to increase with time, in addition to
pipeline infrastructure issues. Naphtha
can be cheaper than condensate.
Finally, the glitter of LNG is fading, due
to LNG terminal issues and recent price
volatility and supply issues. There is no
better solution than local gas. Local gas
is cheaper almost by 50 percent on the
average. More attention should be paid
to the development of local resources.
The writer is a former member of the
Energy Planning Commission and
author of ‘Pakistan’s Energy Issues:
Success and Challenges’.
Email: akhtarali1949@gmail.com
TRADE CHRONICLE - Jan - Feb - 2021 - Page # 12
TRADE CHRONICLE
Ports & Shipping
Marine Group apprises Railway Minister, freight trains
business plan for the terminal
Marine Group of Companies made
presentations on the proposed plans
for freight trains business to Azam
Khan Swati, Federal Minister for
Railways, during his recent visit to the
Group. Aasim A Siddiqui, Chairman of
the Group welcomed the minister while
Sharique Siddiqui,
Chief Executive
of Pakistan
International Bulk
Terminal (PIBT) and
Jawaid Siddiqui,
Chief Operating
Officer of Pakistan
Intermodal Limited
(PIL) made
presentations
providing a brief of
the steps which, if
taken with the help
of private sector,
can help generate
substantial amount of additional
revenues for Pakistan Railways.
Shariq Siddiqui in his presentation
focused on how the laying down of a
6- kilometre track to connect PIBT with
the Jumma Goth junction will not only
significantly increase the revenue to
PR but this dedicated track will help
minimize the environmental issues and
Federal Minister for Railways
visits Hutchison Ports Pakistan
Federal Minister for Railways, Azam
Khan Swati, visited Hutchison Ports
Pakistan, and was introduced the
operations by the management and
given a comprehensive tour of the
facilities, and its capabilities as a stateof-the-art
terminal.
The Federal Minister
was also updated on
the port’s phase 2
expansion plans.
As part of the expansion plans, the
Minister assured Hutchison Ports
Pakistan that external infrastructure
and connectivity to the terminal’s
internal rail siding will be completed by
31 March 2021. It was also discussed
that Pakistan Railway may provide
rail connectivity in the interim period
reduce transportation cost of coal.
Jawaid Siddiqui in his presentation
highlighted that opportunities can
be harnessed by Pakistan Railways,
with the help of the private sector, by
using the existing set of freight wagons
locomotives and
without additional
investments to be
made by Railways.
Azam Khan Swati,
accompanied
on this visit by
Muhammad
Najeeb Haroon,
MNA and Nisar
Ahmed Memon,
Chief Executive of
Pakistan Railways,
deeply appreciated
the presentations
and plans aimed at generating
additional revenues for Pakistan
Railways. He displayed his pleasure on
wide ranging knowledgeable session
with the Marine Group management
and assured commitment to move
ahead with the private sector for
immediate and out-of-the-box freight
trains business solutions in the best
interest of Pakistan Railways.
by repurposing of the coal
yard sidings adjacent to the
terminal facilities.
General Manager and Head of Hutchison
Ports Pakistan, Captain Rashid Jamil,
said in a statement, “Hutchison Ports
Pakistan management is pleased to
have hosted the Federal Minister on
this occasion, and
would like to thank the
Railways Minister for
his visit, as it marks a
positive beginning to
the new year”.
The port has been playing an important
role since its first day of operations
by creating optimal conditions for
accelerated trade. It will further amplify
Karachi’s potential and speed up its
transformation into a prime South Asian
hub for trade and transport activities.
Hutchison Ports Pakistan
sets another record
for handling maximum
TEUs on a single vessel
Hutchison Ports Pakistan is proud
to have another record for handling
the maximum number of TEU’s on a
single vessel, achieving yet another
memorable milestone. For the first
time in Pakistan, a container terminal
has handled 9,334 TEU’s - total units
5419, with a VOR of 149.49 moves per
hour, and in a total time of 36.92 hours.
Hutchison Ports Pakistan is committed
to take the Nation’s economy to new
heights.
General Manager and Head of
Hutchison Ports Pakistan, Captain
Syed Rashid Jamil said in a statement,
“We are delighted to be in a position
to accomplish previously unheardof
milestones, and aim to continue
breaking new ground as the country
heads towards a more prosperous
future. The dream of transforming
Karachi into a prime South Asian hub for
trade and transport activities is closer to
becoming reality than ever before.
Bangladesh Shipping
Corporation to purchase
six LNG tankers
Bangladesh Shipping Corporation
(BSC) is going to purchase six LNG
tankers for transporting liquefied natural
gas (LNG), said an official release.
The LNG ship purchase proposal by
the BSC was formally revealed in
the inter-ministerial meeting at the
Shipping Ministry conference room
here today. State Minister for Shipping
Khalid Mahmud Chowdhury chaired
the meeting. The estimated cost of the
six tankers, with a capacity of 1,40,000
cubic meters, 1,74,000 cubic meters
and 1,80,000 cubic meters, has been
fixed at Taka 10,602 crore.
Shipping Secretary Mohammad
Mejbah Uddin Chowdhury, BSC’s
Managing Director Commodore Suman
Mahmud Sabbir, Joint Secretary of the
Energy division Sheikh Akhter Hossen,
Petrobangla Director Ali Mohammad Al
Mamun and Rupantarita Prakritik Gas
Company Limited (RPGCL) Managing
Director Jabed Chowdhury, among
others, attended the meeting.
TRADE CHRONICLE - Jan - Feb - 2021 - Page # 13
TRADE CHRONICLE
Minister visits QICT, PIBT
and MYP
Federal Minister for Railways
Muhammad Azam Khan Swati visited
the Qasim International Container
Terminal (QICT), a major container
loading and unloading facility, under
the auspices of DP World and was
given a detailed presentation there.
Dubai Port World commonly called as
DP World is the largest multinational
firm, in terms of footprint, offering its
services in the arena of port operations.
The federal minister for railways
expressed his desire for exponentially
MoU signed for Gwadar
Shipyard construction
Federal Minister for Defence
Production Zubaida Jalal has said
Gwadar Shipyard would be owned by
the Government of Balochistan which
was being acquired by the Federal
Government under equity.
She expressed these views while
addressing a Memorandum of
Understanding (MoU) signing
ceremony held between Balochistan
and Federal Governments regarding
the Gwadar Shipyard at the Chief
Minister Secretariat.
Chief Minister Balochistan Mir Jam
Kamal Khan, Provincial Ministers
including Mir Muhammad Saleem
Khosa, Mir Arif Jan Muhammad Hasani,
Parliamentary Secretary for Information
Engro Elengy Terminal sets new
industry record
The first Liquified Natural Gas (LNG)
terminal of Pakistan operated by Engro
Elengy Terminal (EETL), a joint venture
between Engro Corporation and Royal
Vopak of the Netherlands, has set new
industry records during its five years of
safe and reliable operations to ensure
energy security for Pakistan.
increasing the volume of freight
business in the country and declared it
as his prime objective during his tenure.
“A vibrant freight service is the major
way forward for a progressive and
sustained economic growth,” remarked
the railways minister during the
presentation.
The CEO Pakistan Railways Nisar
Ahmad Memon apprised during the
presentation that Railways was working
in full liaison with the DP world and the
latter had been offered construction of
a container terminal also.
The railways minister also visited the
Pakistan International Bulk Terminal
Bushra Rind and concerned provincial
and federal officials were present on
the occasion.
The Federal Minister said the capacity
of Gwadar Shipyard would be much
greater than Karachi Shipyard which
would be significant for improvement in
economy of Balochistan.
She said the professional training of
Since the start of its operations in
March 2015, EETL has completed the
transfer of over 20 million metric tons
of LNG by handling over 322 cargoes.
This is the highest volume handled by
any floating LNG terminal in this time
frame. The Terminal has also achieved
another milestone through the sendout
of more than 1000
Billion Cubic Feet (BCF) of
natural gas, equivalent to
energy required to generate
around 175 million MW. EETL utilizes
the Floating Storage and Regasification
Unit (FSRU) Exquisite, which is
co-owned by Excelerate Energy
LP (Excelerate) and Nakilat.
Built in a world record time of
332 days, EETL is recognized as
one of the fastest built and most
utilized regasification terminals
in the world. The terminal has a
storage capacity of 150,900 cubic
meters and peak regasification
capacity of up to 690 million cubic
feet per day (mmcfd). It currently
fulfills as much as 15 percent of
(PIBT), the imported coal unloading
facility at Port Qasim, and received a
comprehensive presentation there.
“Railways, freight and economy
are three interdependent variables
connected linearly with each other”
stated the railways minister after
conclusion of presentation at PIBT. The
minister was presented with mementos
at QICT and PIBT.
The two terminals’ visits were followed
by the visit of Marshalling Yard Pipri
(MYP). The minister was briefed, at
length, there by the CEO Railways. He
planted a sapling in the outskirts of the
yard also.
HIT would be provided to youth of
Balochistan in Gwadar Institute and
Karachi Shipyard to enable them to
work outside the country after making
them skilled.
Workshop would be established for
repairing ships in Gwadar in order to
provide better facilities in the area,
she added. Speaking on the occasion,
Balochistan Chief Minister Jam Kamal
Khan said the joint venture of Gwadar
Shipyard was a historic project which
would help to enhance economic and
development of Balochistan in future.
He said Gwadar Shipyard had created
extraordinary employment opportunities
for the youth in Balochistan.
The CM said the province would move
towards financial self-reliance with
projects like Gwadar Shipyard.
Pakistan’s domestic daily natural gas
requirements. As a result, more than
US$3 billion of savings have been
generated for the national exchequer
through import substitution of expensive
furnace oil.
TRADE CHRONICLE - Jan - Feb - 2021 - Page # 14
TRADE CHRONICLE
Transit trade: Gwadar port to help country
become regional hub: President
President Dr Arif Alvi said that the
development of Gwadar port will help
Pakistan become a regional hub for
transit trade. A meeting on development
activities at Gwadar Port was held
under the chairmanship of President Dr
Arif Alvi recently.
The meeting was attended by Federal
Minister for Maritime Affairs Syed Ali
Haider Zaidi, Trade and Investment
Adviser Abdul Razzaq Dawood, and
Chairman CPEC Authority Lieutenant
General Asim Saleem Bajwa (retired).
The minister and advisor briefed the
president about the development
Aza Khel dry port inaugurated
Collector Customs Muhammad Asif
Jah has formally inaugurated the Aza
khel pir pai dry port. A statement issued
recently, stated the establishment of the
dry port was long standing demand of
the business community of the Khyber
DP World Limited handled 19.1 million
TEU (twenty-foot equivalent units)
across its global portfolio of container
terminals in 4Q2020, with gross
container volumes increasing by 7.6%
year-on-year on a reported basis and
up 6.5% on a like-for-like basis[1]. On a
FY2020 basis, DP World handled 71.2
million TEU, flat year-on-year and up
0.2% on a like-for-like basis.
4Q2020 Like-for-like gross volume
growth was mainly driven by India,
Europe, Middle East & Africa and
Americas with a strong performance
from Mundra (India) London Gateway
(UK), Rotterdam (Netherlands),
Antwerp Gateway (Belgium) and
Sokhna (Egypt). In Americas, growth
was driven by DP World Santos (Brazil)
and Vancouver (Canada). Jebel Ali
(UAE) handled 3.4 million TEU in
4Q2020, up 0.3% year-on-year.
At a consolidated[2] level, our
terminals handled 11.2 million TEU
during 4Q2020, increasing 10.1% on a
reported basis and up 5.2% on a like-forlike[3]
basis. On a FY2020 consolidated
basis, DP World handled 41.7 million
Pakhtunkhwa.
The officials say that the dry port
has been equipped with modern
facilities to facilitate the exporters and
importers of the province. The port was
inaugurated by Prime Minister Imran
Khan last year, however, it formally
inaugurated by Collector Customs
TEU, up
4.6% on
a reported
basis and
down 1.8% on a like-for-like basis. The
reported FY2020 growth of 33.3% in
Americas and Australia region is mainly
due to the consolidation of Caucedo
(Dominican Republic) and acquisition
of Fraser Surrey Docks (Canada).
Dp World reports +7.6% Gross volume growth
in 4Q2020 and flat growth for FY2020
projects
Gwadar.
The
said that the people
of Balochistan would
get ample employment
opportunities from Gwadar
port. He said that the
completion of Gwadar Port
would bring social and
economic prosperity to
the people of Balochistan.
He said that Gwadar
port would help promote
regional connectivity.
He said that the countries
in the region, especially
Afghanistan and Central
Group Chairman and Chief Executive
Officer Sultan Ahmed Bin Sulayem
commented:
We are delighted to report another set of
positive volume figures for 4Q2020 with
like-for-like growth accelerating to 6.5%.
This strong end to the year resulted in
flat growth in 2020 which compares
favourably against an industry that is
estimated to be down 2.1%. Overall,
this once again illustrates the resilience
of
president
Asian states would benefit from the
CPEC. Earlier, the minister, the adviser,
and Asim Saleem Bajwa visited the ongoing
development projects in Gwadar.
Muhammad Asif Jah.
Collector Customs Appraisement,
Muhammad Saleem, Additional
Collector Customs Adnan Iqbal Swati,
Additional Collector Customs Khyal
Muhammad and Assistant Collector
Customs dry port Ms Javeria Shahid
were present on this occasion.
of the global container industry, and DP
World’s continued ability to outperform
the market.
The growth in volumes was
encouragingly across all our regions
with India being a key driver, while our
flagship port of Jebel Ali (UAE) saw
volumes stabilizing.
We continue to invest selectively in
projects that offer compelling value
such as Dakar (Senegal) and Luanda
(Angola). Our strategy to provide
solutions to cargo owners has served
us well, and our aim is to continue to
build on this momentum.
Looking ahead, while 2021 has started
encouragingly, the outlook remains
uncertain given the continued issues
surrounding the pandemic, geopolitical
uncertainty in some parts of the world
and the ongoing trade war.
Overall, the full year solid volume
performance leaves us well placed
to deliver a relatively stable financial
performance in 2020. We remain
focused on containing costs to protect
profitability, managing growth capex to
preserve cashflow and are confident of
meeting our 2022 targets.
TRADE CHRONICLE - Jan - Feb - 2021 - Page # 15
TRADE CHRONICLE
PIBT handles 1.04m tons of coal
cargo in Dec 2020
Pakistan International Bulk Terminal
(PIBT) handled a record 1.04 million
tonnes of coal cargo in December
2020, which is 32 percent more than
0.791 million tonnes of cargo handled
in December 2019.
This is the first month that the terminal
volumes have crossed a million tonnes,
solidly establishing PIBT as the premier
bulk terminal of the country.Also, the
terminal handled 5.27 million tonnes
cargo from July to December 2020,
Wheat discharging record
created at K.P.T
Bulk Shipping & Trading (Pvt) Ltd has
congratulated M/s. Trading Corporation
of Pakistan (Pvt) Ltd., (Importers)
Karachi Port Trust and Stevedores
M/s. M. M. Services for the remarkable
which is 19.7 percent more
than the 4.407 million tonnes
coal handled in the same
period in 2019. In the last six
months, total 92 cargo vessels arrived
at the terminal while the total number
of vessels handled during July 2019
to December 2020 was 77. “This
performance in the last six months is
clearly in line with our objective that
is to operate at international levels
of efficiency and establish industry
standards for most efficient cargo
handling,” said Sharique Siddiqui,
CEO, PIBTL, adding that PIBT is an
integral part of the coal supply chain
across the country.
achievement of discharging and
simultaneous bagging of 10,100 metric
tons of Bulk Wheat in 24 hours from
a geared ship MV. “Star Antares” at
`Karachi Port’ on 28th December, 2020.
This new record of discharging and
simultaneous bagging of bulk wheat
account TCP from a geared ship has
been created at Karachi Port due to
PIBT was set up with the total cost of
$305 million at Port Qasim on BOT
(Build, Operate, and Transfer) basis
to transform the handling of dirty bulk
cargo to modern environmental friendly
standards.
The terminal started operations in the
year 2017 and has since handled 452
vessels and total cargo of 25.2 million
tonnes. It is pertinent to mention that
the terminal has so far contributed
approximately 10 billion rupees to the
national exchequer in terms of royalty
payment of $2.27 for every tonne of
cargo handled, and other duties and
taxes.
close coordination and cooperation
between the Management and
Team of M/s. Trading Corporation
of Pakistan, the Management
and Team of Karachi Port and
the Management and Team of
Stevedores M/s. M. M. Services.
This was also due to the personal
interest of the Chairman Karachi
Port Trust Mr. Nadir Mumtaz
Warraich and the Chairman
Trading Corporation of Pakistan
Mr. Riaz Ahmed Memon.
Cargo was supplied by M/s.
Swiss Singapore (Local agents
M/s. Fertline (Pvt) Ltd.) and ship
operators were M/s. Starbulk.
S.A., Greece.
Bulk Shipping is proud to be
associated in this achievement
as Agents of the ship.
Honourable Governor of Sindh Mr Imran Ismail is
handing over keys of Fire Tenders gifted by Prime
Minister of Pakistan, to Chairman KPT during a
ceremony held at Governor House
Minister Maritime Affairs
Syed Ali Haider
Zaidi chaired the first
meeting on Maritime
Transshipment Strategy
with Maritime partners at
KPT Head office
TRADE CHRONICLE - Jan - Feb - 2021 - Page # 16
TRADE CHRONICLE
Leather Industry
Prime Minster of Pakistan Imran Khan has awarded
“Ambassador of Hope “ award to S.M.Muneer
S. M. Muneer is a businessperson
who has been at the head of 8 different
companies. Currently, Mr
Muneer occupies Chairman
of Din Textile Mills Ltd.
Form Chairman of Korangi
Association of Trade &
Industry, former Chairman of
Friends of Burns Centre and
President at India-Pakistan
Chamber of Commerce &
Industry.
He is also former President of
Federation of Pakistan Chambers
of Commerce and Industry, former
Rs 1.7 billion will be paid in 10 days
in terms of duty drawback (DLTL) of
industrialists affiliated to the leather
sector, while Rs 2.5 billion in duty
drawback will be paid in three stages.
This was stated by Federal Minister
for Finance Abdul Hafeez Sheikh
on the occasion of a meeting with a
delegation of industrialists affiliated
to the leather industry led by Danish
Khan, Chairman, Pakistan Leather
Garments Manufacturers and
Exporters Association (PLGMEA) in
Islamabad. The delegation included
Patron-in-Chief PLGMEA, Fawad Ejaz
Khan, Irfan Iqbal, Chairman FBR Javed
Ghani, Special Assistant to the Prime
Minister for Revenue Waqar Masood,
Trade Adviser Razzaq Dawood,
Climate Change Secretary Naheed
Chairman for Pakistan Tanners
Association, Chairman of Chiniot
Anjuman Islamia, Member
of World Hypertension
League, Founding Member
at Pakistan Hypertension
League and Founding
Member at Trust for Vaccines
& Immunization and on the
board of 15 other companies.
In his past career. Muneer
was Chief Executive Officer at Trade
Development Authority of Pakistan and
President at Federation of Pakistan
Chambers of Commerce & Industry.
Billions of rupees will be paid to industrialists in DLTL
soon: Finance Minister Hafeez Sheikh
A Group photo with Federal Minister for Finance Abdul Hafeez Sheikh,
Chairman PLGMEA Danish Khan, Chairman FBR Javed Ghani, Special
Assistant to the Prime Minister for Revenue Waqar Masood, Trade Advisor
Razzaq Dawood, Climate Change Secretary Naheed Durrani, Commerce
Secretary Saleh Farooqi, Patron-in-Chief PLGMEA and Fawad Ijaz Khan.
Durrani and Commerce Secretary
Saleh Farooqi were also present.
Speaking to the delegation, Federal
Minister for Finance Abdul Hafeez
Sheikh said that all possible facilities
would be provided to the exporters
associated with the leather industry so
that the industrialists could play their full
role in increasing the country’s exports.
On the occasion, Chairman PLGMEA
Danish Khan said that the Corona
pandemic has adversely affected
the economic condition of the world,
including Pakistan, so the DLTL scheme
should be extended to 2025-26 for the
development of the export sector and
relief should also be provided in freight
subsidy.
Chairman PLGMEA
said that he welcomed
the steps taken by
the Prime Minister
for the industrial
development and
hoped that steps
would be taken
in this direction to
ensure uninterrupted
supply of energy
and reduction of the
production cost of
industries.
Italian Ambassador visits
to IPFTC in Lahore
Italian Ambassador H.E Andreas
Ferrarese paid a visit to Italy-Pakistan
Footwear Technological Center
(IPFTC) in Lahore recently. The Italian
Government has provided all the
machinery and technical assistance for
this Project. PFMA Chairman Mr Imran
Malik said Pakistan will fully utilize this
facility to develop Footwear Industry
to produce high-quality shoes using
new technologies to make it a major
exporting industry of Pakistan.
Italian Ambassador H.E. Andreas
Ferrarese lauded the project progress
and praised PFMA chairman on
successful running it. He underlined
that the youth of Pakistan is full of high
potential. If appropriately utilized by
enhancing their skills, we can make
them productive. Indeed the Project
of IPFTC aims to train the youth
innovatively to take full advantage of
the footwear industry and gracefully
earn their livelihood.
IPFTC will offer a complete environment
for the footwear industry to adapt to
the most advanced techniques to
develop quality products and enhance
their existing skills to meet the everchanging
demand of the international
market. Our cooperation will continue
to thrive upon with more business
opportunities.
This innovative project will be a
stepping-stone toward the betterment
of Pakistan Footwear Industry in the
long run and help provide support to the
local footwear industry to better equip
themselves with the latest techniques
and skills of contemporary footwear art.
TRADE CHRONICLE - Jan - Feb - 2021 - Page # 17
TRADE CHRONICLE
Pakistan’s leather industry exports
continue to fall in 7MFY20
Pakistan leather industry earns export
revenue of US$ 71.493 million during
January 2021 compared to US$ 72.94
million in the previous month, translating
to a fall of 0.83 percent on a MoM basis.
The finish leather exports stand at US$
12.831 million, leather manufacturing
US$ 48.166 million and footwear US$
10.496 million against US$ 14.884
million, US$ 43.994 million and US$
13.216 million, respectively, during this
period. This export trend represents a
fall of 13.79 percent, 7.69 percent and
20.58 percent, respectively.
On a cumulative basis, Pakistan
leather industry export proceeds during
Bangladesh reports fall in leather
exports during 7MFY21
Bangladesh leather industry during
the first seven months of the financial
year 2020-21 (July – Jan 2021) has
earned export revenue of US $526.58
million as compared to US$ 558.9
million earned in the same months of
the previous year. It translates a singledigit
fall of 5.78 per cent on a YoY basis,
says the Bangladesh Export Promotion
Bureau (EPB).
The break down shows that Bangladesh
bagged US$ 63.55 million on exports
Textile Industry
Alkaram Textile Mills wins awards at the
10th Annual CSR Summit
Alkaram Textile Mills won three
awards at the ’10th Annual Corporate
Social Responsibility Summit &
Awards 2021′, in the categories of
Collaboration and Partnership, CSR
Event and Community Impact. The
award ceremony was held at a local
hotel in Karachi.
Alkaram Textile Mills has been
regularly recognised for its continuous
commitment towards contributing to
the society.
In this prestigious summit, the
company won accolades around three
of its major CSR initiatives which are
completely in line with the company’s
CSR objectives and thus embedded in
the way it conducts business.
the first seven months of
July – Jan 2021 reduced
by 3.80 per cent to US$
500.658 million against
US$ 520.470 million, earned in the
seven months of last fiscal year July –
Jan 19-20, says data released by the
Federal Bureau of Statistics (FBS).
The breakdown of export shows that
tanners have earned US$84.939 million
on the export of 5.766 million sqm of
finished leather between the periods of
July – Jan 2020 as compared to US$
121.010 million on the export of 10.803
million sqm in similar seven months in
a year-ago period. The export figure
translates that tanned leather exports
fell by 46.63 per cent in terms of quantity
and 29.81 per cent in terms of dollars
of finished leather in the
first seven months of the
current financial year
compared to US$ 77.71
million in July – Jan 2020. It offers a
contract of 18.22 per cent. The leather
footwear exports also decreased by
1.88 per cent to the US $ 329.53 million
from US$ 333.14 million during this
export period.
The exports of leather products have
also contracted to US$ 133.49 million
from the US $ 148.05 million of same
seven months of last year. It translates
a decline of 9.83 per cent on YoY basis.
Fawad Anwar,
Managing
Director,
Alkaram Textile
Mills, while
sharing his views on the achievement
said, “It is an honour to be recognised
for our efforts.
This not only
shows Alkaram’s
commitment and
dedication towards
development of
our community but
also motivates us
further to continue
our mission in
line with our CSR
objectives.” He
added further,
“All CSR initiatives are dedicated
towards our focus areas such as
women empowerment and community
engagement and enhancement, and
we have been tirelessly playing our
respectively during this export period.
On positive development, the export
of leather manufacturing, including the
export of garments and leather gloves,
increased to US$ 340.445 million from
US$ 318.601 million during this period.
This export represents a rise of 6.86
per cent on a YoY basis.
However, the footwear exports recorded
a fall of 6.91 per cent in terms of value
between July and Jan 2020-21. During
this period, footwear export reached
US$75.274 million by exporting 9.743
million pairs as against US$ 80.859
million for 8.951 million pairs, shipped in
the same seven months of the previous
fiscal year. However, the quantity rose
by 8.85 per cent during this exporting
period.
The Bangladesh Export Promotion
Bureau (EPB) had set the export target
for the leather industry at the US $920
million for the financial year 2020-
21 (July – June) compared to the US
$797.6 million earned in the previous
fiscal year.
role through various programs to
reach out to a wider network and make
meaningful contribution in the society.”
“Alkaram Textile Mills believes in
the philosophy of benefiting our
stakeholders and the communities
in which we thrive by improving their
quality of life. Therefore, CSR is
embedded in our business model,
where direct engagement and support
to communities is extended across
the value chain. We undertake several
different means of giving back to the
environment and to the community we
are so deeply intertwined with,” said
Sherbanoo Raza, Head of HR and
Communications, Alkaram Textile Mills
on the occasion.
This award underscores Alkaram’s
commitment towards women
empowerment and community
development as an integral part of its
Corporate Responsibility initiatives.
TRADE CHRONICLE - Jan - Feb - 2021 - Page # 18
TRADE CHRONICLE
Cement Industry
Mixed indicators from the cement
industry in Pakistan
Pakistan’s Federal Bureau of Statistics
(FBS) has released mixed export
and production data for the cement
industry for July –December and July
-November 2020-21. A research house
also adds that industry will reveal good
financial results for the second quarter
after a mixed performance in first
quarters.
Cement exports
Pakistan’s cement industry earned
US$142.92m by exporting 4.325Mt
of cement and clinker in the first six
months of the FY20-21, compared to
US$145.261m from 3.790Mt of exports
in June – December 2019-20. In a
nutshell, shipping represents a fall of
1.61 35.4 per cent in dollar terms but
see a rise of 14.11 per cent in quantity
Cherat Cement Company
plans BMR for line 1
Pakistan’s leading
cement producers
- Cherat Cement
Company Limited
has informed
Pakistan Stock
Exchange (PSX) that
the Board of Directors of in its meeting
held on January 18, 2021, has decided
to undertake balancing, modernization
and replacement (BMR) for Cement
Line 1 and install the main Crusher
at Village Lakrai, District Nowshera,
Khyber Pakhtunkhwa (KPK) province.
According to Executive Director
and Company Secretary Abid Vazir,
these measures will help improve the
operational efficiencies of the plant.
The total cost of BMR of Cement Line
1 and installation of main Crusher is
approximately PKR3.5 bn. The project
will be principally financed through longterm
loans. Earlier, with the successful
launch of Line III for clinker production,
which boasts a total production
capacity of more than 14,700tpd, the
Company has significantly enhanced
its production capacity to more than
4.5Mta.
on a YoY basis. Similarly,
earning for December 20
stands at US$ 19.25m
on the export of 593,215t
of cement/clinker compared to UDS$
18.12m for 498,091t in the same month
last year – registering a growth of 6.20
per cent and 19.10 per cent on account
of the value and quantity respectively.
Cement production
The output of Pakistan’s large-scale
manufacturing industries (LSMIs)
witnessed an increase of 14.5 per
cent YoY during November 20, and
7.4 per cent in 5MFY21, YoY, including
cement production. Pakistani cement
production increased by 21.30 per cent
YoY to 20.442 Mt in July - November
2020 from 16.852Mt, achieved in the
same period last year. On more positive
development, the rising trend was also
witnessed in November 2020, when
The Flying Cement Company Limited
updated Pakistan Stock Exchange
(PSX) that it has achieved another
key milestone. Company’s Secretary
Shahid Ahmad Awan, in communication
to PSX has stated that the company has
successfully completed the installation
and commissioning of 7.5MW Waste
Heat Recovery Power Plant (WHRPP)
at its site in Mangowal, District Khushab
in Punjab.
He added, “the employment of this
technology will augment our ability to
process waste heat absorbed in boilers
to produce steam at a suitable pressure
Kohat Cement Company Ltd in
Pakistan announced that Board
of Directors of the Company
has approved, subject to all
regulatory approvals, setting
up of 7,800 ~ 10,000 tpd
cement manufacturing plant
(along with 8 ~ 10 MW Waste
Heat Recovery and 25MW Coal-Fired
Power Plants), in Khushab, Punjab.
production significantly rose by 12.96
per cent to 4.009 Mt versus 3.549Mt in
November 2019.
Outlook
Flying Cement Company completes
WHRPP at the plant site in Punjab
Kohat Cement Company announces
to set up a new cement plant in Punjab
A research house sees strong demand
from housing projects amid low-interest
rates and amnesty for builders. These
positive factors would be the main
drivers for cement growth in future. IMS
Research expects that local demand
will sustain in the coming quarters as
government infrastructure spending will
also rise to kick-off low-cost housing
projects. Besides this, cement demand
in the South has improved considerably
compared to previous quarters, despite
a decline in exports. This was mainly
because of reduced selling from North
producers in the South market and
higher demand from the private sector.
A Chronicle report
to power turbines
for the generation
of electricity”.
The management pin hopes that
adoption of Waste Heat Recovery
Power Plant (WHRPP) technology will
result in significant cost saving in power
consumption for the Company. It also
affirms Flying Cement’s commitment to
reduce carbon footprint and contributes
towards a Greener Pakistan.
The company has a single kiln having
an installed capacity of 2000tpd of
cement using the latest dry process
technology and a rated capacity of
600,000t of cement per annum.
According to a
notification of
the Company
to Pakistan
Stock Exchange (PSX), the
management has estimated
cost of the project at PKR 30
bn, which shall be financed
through a mix of Debt and
Equity and it is expected that
construction and installation of
the plant shall be completed in
2 to 2.5 years.
TRADE CHRONICLE - Jan - Feb - 2021 - Page # 19
TRADE CHRONICLE
Domestic cement despatches grew by
23.80 percent in January 2021
Cement sector posted growth of 16.28
percent in January 2021 as compared
to January 2020. Total Cement
despatches during January 2021 were
4.73 million tons against 4.07 Million
Tons despatched during the same
month of last fiscal year.
According to the data released by
All Pakistan Cement Manufacturers
Association (APCMA), local cement
despatches in the month of January
2021 increased to 4.03 million tons
compared to 3.26 million tons in
January 2020, depicting a growth of
23.67 percent. However, the exports
dropped by 14.09 percent from 808,874
tons in January 2020 to 694,934 tons in
January 2021.
During January 2021, the North based
factories despatched 3.31 million tons
cement locally, a healthy increase of
23.48 percent from 2.68 million tons in
January 2020, while the South based
mills despatched 724,281 tons cement
for local consumption which was 24.59
percent higher than 581,316 tons
cement despatched in January 2020.
Exports from North based mills
Lucky Cement announces capacity
expansion of 3.15Mt
Lucky Cement
announced to
enhance its cement
production capacity
at its Pezu Plant by 3.15 million tons
per annum, to keep pace with the
increasing demand in the domestic
cement industry. The construction
work on the project is expected to
commence within current financial year
and is expected to be completed in 1.5
to 2 years. This expansion will result in
a total capacity of 15.3 MT of cement
per annum.
On a consolidated basis, Lucky Cement
Limited reported net profit after tax of
PKR 12.44 billion of which PKR 2.08
billion is attributable to non-controlling
interests for the half year ended
December 31, 2020. This translates
into earnings per share (EPS) of PKR
32.05 / share as compared to PKR
9.93 / share reported during the same
period last year.
increased by 25.36
percent to 233,404
tons in January
2021 from 186,185
tons in January 2020 whereas the
exports from South decreased by 25.88
percent to 461,530 tons in January
2021 from 622,689 tons during same
month last year.
In the first seven months of this
fiscal year, total cement despatches
(domestic and exports) were 33.36
million tons that was 15.77 percent
higher than the cement despatches
during the corresponding period of last
fiscal year.
Local despatches increased by 16.98
percent in July20 - Jan21 period to
27.65 million tons from 23.63 million
tons in July19 - Jan20. Exports also
increased from 5.186 million tons in
July19 - Jan 20 to 5.71 million tons in
July20 - Jan 2021 showing a growth of
10.23 percent.
During first seven months of current
fiscal year, North based mills
despatched 23.54 million tons cement
for domestic consumption that was
17.18 percent higher compared to the
despatches during same period last
fiscal year that stood at 20.09 million
tons. Exports from North were 1.44
Further, on a consolidated
basis, the Company
achieved gross turnover
of PKR 123.72 billion
which is 56% higher as compared to
the same period last year’s turnover
of PKR 79.56 billion. During the 1HY
2020-21 under review, the Company’s
consolidated net profit (attributable
to owners’ of the Holding Company)
increased by 223% as compared to the
same period last year. The increase
in net profit was mainly attributable to
increase in net profitability of Cement
segment (Holding Company) which
grew by 134% due to higher turnover
supported by absorption of fixed costs
and efficiencies achieved from new
production line in the North. The increase
in net profit of Holding Company
was also supported by considerable
increase in net profits of Lucky Motor
Corporation because of strong growth
in automobile sales. In addition, LCL
Investment Holdings Limited delivered
a healthy performance as compared to
same period last year owed to growth
in sales volume, coupled with improved
million tons showing decline of 10.09
percent over exports of 1.61 million
tons during the same period of last
fiscal year.
South based mills despatched 4.11
million tons in the domestic market
during the first seven months of
current fiscal year which was 15.86
percent higher than 3.54 million tons
despatched during the corresponding
period of last fiscal year. The exports
from South were 4.27 million tons
registering an increase of 19.35 percent
over exports of 3.57 million tons during
same period last year.
A spokesman of All Pakistan Cement
Manufacturers Association said that
the cement uptake has reached historic
high in the domestic market but the
increase in its main inputs is the major
challenge for the industry.
retention price and decrease in input
costs from both Congo & Iraq projects.
On a standalone basis Company’s
overall sales volumes posted a high
double digit growth of 35.9% to reach
4.99 million tons during 1HY 2020-
21. The local sales volumes grew by
41.2% to reach 3.66 million tons in
comparison to 2.59 million tons during
the same period last year. Also, the
export sales volumes of the Company
increased by 23.3% to 1.34 million
tons as compared to 1.08 million tons
during the same period last year. The
Company reported that trial production
at its Greenfield project for producing
1.2 million tons of cement at Samawah,
Iraq has commenced during 3rd week
of January 2021 and the project is
expected to start commercial production
in February 2021.
The Company also reported that its 1 X
660 MW supercritical coal based power
project at Port Qasim has achieved
completion status of approximately
95% by end of this quarter.
TRADE CHRONICLE - Jan - Feb - 2021 - Page # 20
TRADE CHRONICLE
Popular Cement plant
inaugurated in Sindh
A new cement player has entered
the market with the start of formal
inauguration of Popular Cement on
February 9, 2021. Formerly Dadabhoy
Cement Industries, the unit strategically
located in Nooriabad had been in
operational for 12 years after defaulting
with lenders. Popular Group acquired
the assets in 2018 after clearing all bank
dues and immediately initiated major
overhauling with investment in Coal
Mill, Clinker Process, Grind, Packaging
and Automation to completely upgrade
and modernize existing production
capacity of 2000 MT in the first phase.
Fauji Cement Company plans
Greenfield cement plant in DG Khan
Fauji Cement Company Limited (FCCL)
has informed Pakistan Stock Exchange
(PSX) that consequent
to construction activity
picking up and significant
spend on infrastructure,
expected to continue,
the Company’s board of
directors has decided to
invest in additional cement
capacity in the Country.
Accordingly, the Board of
Directors of FCCL, in its
meeting held on February 19, 2021,
has approved, subject to all regulatory
approvals, setting up of Greenfield
Cement Manufacturing Plant of 2.05
With the clinker and cement plant now
operational, value natural resources,
proximity to market and port have all
been unlocked. While a first foray
into the cement sector, Popular
Group has extensive operations
across Pakistan in food and aseptic
packaging, sugar, energy and
textiles.
A small ceremony was held by group
chairman Mr. Imamuddin Shouqeen
to mark the commissioning of the
cement plant which was inaugurated
BY Ms. Ayesha Aziz, Managing Director
of Pak Brunei Investment Company
Limited. The DFI partnered with
Popular Group in this project. Speaking
on the occasion, Ms. Aziz explained a
shorter route to industrialization was by
reviving viable assets that were shut
down or operating below capacity. To
make such acquisitions successful,
the need is for investors with a longterm
investment outlook, commitment
to value generation and strong credit
Million Tons per
annum at Dera
Ghazi Khan. The
equity portion of
the expansion will be funded through
Internal Cash Generation.
DG Khan Cement plans
Brownfield cement plant in DG Khan
DG Khan Cement Ltd, in communication
to Pakistan Stock Exchange (PSX),
briefed that concerning the Government
of Punjab’s permission for Expansion
of Existing Cement plant by adding
12,000 TPD brown filed cement line
No. 3 at Muza Khofli Sattai, Dera Ghazi
Khan. The Board of Directors of the
Company has decided to evaluate the
capacity of brown filed cement plant
ranging between 9,000 TPD to 12,000
TPD. Further details awaited.
The total project cost will be announced
after the conclusion of the negotiation
Meanwhile, D.G. Khan
Cement
Company
Limited
(DGKC) also released its
2QFY21 financial result
on February 19, posting a
profit after tax (PAT) of PKR
11,152mn (EPS: PKR 2.63),
compared to PKR 581mn
(EPS: PKR 1.33) in SPLY.
This took the 1HFY21
bottom-line to PKR 801mn
(EPS: PKR 1.83) vis-à-vis
loss of PKR 847mn (LPS:
history.
She pointed out this was a second
“dead” asset revived by Popular Group
in partnership with Pak Brunei. The
acquisition of National Sugar in Punjab
and also resulted in converting a sugar
mill that was in default with its bankers
in into the most preferred mill for
sugarcane growers in that district for
its prompt payment practice. As with
Popular Cement, the acquisition was
done after cleaning all outstanding loan
payments to banks without any write
off. Mr. Shouqeen explained that the
Group investment philosophy centered
around maximum appetite for Pakistan
risk. This is why the 50 years history
of the Group is marked with a series of
Greenfield projects in new areas. The
next big milestone is the commissioning
of the size 6000 MT p.a. aluminum
project that would cut down import of
Cold-Rolled foil in several sectors. This
would also be the first of its kind project
in Pakistan.
with the suppliers and contractors. The
project’s construction work is expected
to commence within the current
financial year and is expected to have a
construction period of about 2.5 years.
Currently, the Company is
targeting financial closed
by 31% March 2021,
Meanwhile, FCCL
announced its 2QFY21
financial result by posting
a profit after tax (PAT) of
PKR 905mn (EPS: PKR
0.66), compared to PKR
189mn (EPS: PKR 0.14)
during SPLY, depicting a
jump of 5x YoY. This took the 1HFY21
earnings to PKR 1,601mn (EPS: PKR
1.16), up by 3x YoY from PKR 482mn
(EPS: PKR 0.35) 1HFY20.
PKR 1.93) booked in SPLY.
TRADE CHRONICLE - Jan - Feb - 2021 - Page # 21
TRADE CHRONICLE
Steel and Allied Industry
Pakistan Steel industry and expected profit
A leading research house expects that
Steel Universe (Comprising of three
top steelmakers in Pakistan) would
post a cumulative 2QFY21 NPAT of
PKR1,873mn, up 83% YoY. Overall
profitability is expected to rise due to
increased sales led by a broad-based
surge in demand from the construction
space, 2/3 wheelers and other
segments.
According to estimates of IMS
Research, ASTL and MUGHAL are
expected to post jump in revenues
amid higher volumes and a significant
rise in rebar prices (cost pass-on) up 20
% since Sept’20 higher RM cost (scrap/
HRC prices rose 19%/11% QoQ).
The analyst expects gross margins to
improve due to higher utilization and
a large inventory, at a lower cost, from
the previous quarter.
ISL’s top-line is expected to rise by
25% YoY in the backdrop of higher 2/3
wheelers’ sales ( up 12% QoQ and
16% YoY) and strong demand from
other segments. Margins are expected
to improve due to several price hikes
and improved international CRC-HRC
spreads during 2Q.
ASTL: Rise in volumes to lead to
improved earnings
We expect Amreli Steels (ASTL) to
post an NPAT of PKR200mn (EPS:
Agha Steel to install
2.25 MW solar power project
Agha Steel Industries, a leading Steel
rebar manufacturing company has
signed a contract with Renewable
Power Pvt. Ltd. for installing a 2.25
Megawatt solar power project at its
production facility located at Port Qasim
PKR0.67) for 2 QFY21, which will come
off a loss last year (LPS: PKR0.78)
while better than the previous quarter’s
result (1QFY21 EPS: PKR0.37). The
company is expected to improve
profitability for the 2nd consecutive
quarter with healthy gross margins
(11.2% expected during 2Q vs 7.9% in
SPLY). This is backed by (i) substantial
demand post easing of lockdowns, (ii)
no more electricity one-offs, and (iii)
ability to pass on any cost pressures
through price increments. Besides
our expectation of higher volumes
(courtesy rising construction activity
following government incentives),
earnings improvement also stems from
lower finance cost (drop in interest
rates to 7%), expected 40% lower YoY.
We maintain our Neutral stance on
ASTL with a June 2021 TP of PKR49.0/
sh.
MUGHAL: Robust local demand and
exports to lift margins
Mughal Steel (MUGHAL) is expected
to post a NPAT of PKR551mn (EPS:
PKR2.19) for 2 QFY21, compared to a
NPAT of PKR102mn (EPS: PKR0.41)
in SPLY. The expected earnings growth
emanates from higher sales, inspired
by increased cement dispatches during
2Q (up 17% QoQ and 12% YoY). Net
sales will grow by 34% YoY and 40%
QoQ due to (i) rise in rebar/girder
volumes, (ii) more significant exports of
Karachi. Meezan Bank Ltd
is the banking partner for
this transaction. This would
be among one of the largest
solar power projects installed by a steel
manufacturer in Pakistan.
The 2.25 Megawatt solar power project
would also reduce the carbon emission
by 46,000 tons in a lifespan of 20 years.
This solar power plant, being installed
on the self-consumption basis, will
produce around 3.3 million units of
clean and renewable electricity every
year, which will result in a significant
drop in the carbon footprint of Agha
Steel Industries. The company is
currently undergoing an expansion to
increase its rebar capacity to 650,000
copper, and (iii) increase in reasonable
finished prices. Gross margins are also
expected to improve by 1.6 ppt QoQ
to 12.8%. We hope MUGHAL to have
exported greater copper ingots during
2 Q as international copper prices
surged c.30% to over US$8,000/
ton. By our estimate, 1 ,500 tons/
quarter volumetric sales can have an
annualized EPS impact of PKR2.8. We
remain Neutral on MUGHAL with a TP
of PKR73/sh.
ISL: Healthy spreads amid the rise in
CRC/HDGC prices
Healthy demand from 2/3 wheelers (up
12% QoQ and 16% YoY) and other flat
steel reliant industries point towards
robust sales, where we expect ISL to
post 2QFY21 NPAT of PKR1,122mn
(EPS: PKR2.58) compared to a NPAT
of PKR118mn (EPS: PKR0.27) during
SPLY. We expect the top-line to rise
by 25% YoY, due to several price hikes
during the period. CRC-HRC spreads
also improved during the quarter,
averaging US$136/ton, up 69% QoQ.
We expect gross margins to clock in
at 12.6% (vs 8.9% during 1Q). We are
Neutral on ISL with a TP of PKR89/
sh. Underlying triggers for the stock
will be the resumption of sales to
the pipe-making industry (currently
disallowed under SRO641) and healthy
international spreads for a prolonged
period.
from current 250,000 tons per.
Electricity is a major component in steel
production and Agha Steel has decided
to bring down its production cost through
solar power production. It is estimated
that once Agha Steel installs MiDa
technology in September 2021, it would
reduce its electricity consumption by a
hefty 20% and its production losses in
terms of raw material would be reduced
by 8%.
Speaking at the occasion, Mr. Hussain
Agha CEO Agha Steel said “In line
with our Sustainable Development
Goals (SDG), it is our vision to
become Pakistan’s first green steel
manufacturer with zero reliance on
fossil fuels by 2025.
TRADE CHRONICLE - Jan - Feb - 2021 - Page # 22
TRADE CHRONICLE
People & Events
Imran Maniar becomes MD
Sui Southern Gas Company
Imran Maniar becomes
Managing Director
of Sui Southern Gas
Company (SSGC). He
is an accomplished
professional with
more than 30 years
of strong track record
in building, leading
and advising private
equity and corporations in mergers
and acquisitions, restructurings,
turnarounds, capital market
transactions, logistics, upstream and
midstream operations, oil field and
engineering services.
PAK-QATAR Takaful holds
annual conference
Pak-Qatar Family Takaful held its Annual
Conference in Karachi to celebrate
2020’s exceptional performance and
to further align the team with strategic
Business Growth plans for 2021 and
beyond.
The conference was attended by Mr.
Said Gul, Member-Board of directors,
Mr. Zahid Awan, Member-Board of
He has been prolific in managing startups
and Fortune 500 companies
in North and Latin America,
Europe and Middle East.
Before joining SSGC, Imran Maniar
held CFO positions at Marquard and
Bahls AG, GL Noble Denton and Eagle
Ford Oil and Gas. He has also served
as Manager Strategic Planning at
Boardwalk Pipeline Partners, Partner
at Millennium Ventures LLC and as an
Analyst at Solvay.
Imran Maniar has a BS in Industrial
Engineering from Purdue University,
an MBA from Rice University and has
received CFO training at the Stanford
Graduate School of Business. Early
schooling was at Karachi Grammar
School. Imran Maniar is a certified
public accountant in the State of
California
inception. The Takaful Distribution
Team performed very well across
Pakistan despite COVID-19 and is
fully motivated to achieve business
targets set for 2021”. He further stated
that, “much more coordinated efforts
and smart workings are required to
increase the number of memberships
and offer convenience. Mr. Said Gul
emphasized upon capturing digital
medium and using digital technology
with a customer-centric approach thus
terming it as the key to sustainable
Ali J Hamdani appointed
SNGPL MD
a period of three years.
S N G P L
Board of
Director has
appointed
Ali J
Hamdani as
Managing
Director of
Sui Northern
G a s
Pipelines
Limited
(SNGPL) for
Ali J Hamdani features more than
30 years experience in managing
international businesses particularly
in energy, power, water, chemical and
healthcare sectors. Prior to joining
SNGPL, he remained associated
with a number of leading international
companies including Siemens AG,
Linde Healthcare and Schneider
Electric.
He has a proven record of positioning
organizations for success, spurring
billion-dollar sales growth, leading
global initiatives, and demonstrating
a profound dedication to client
satisfaction.
Directors, Mr. Kamran Saleem, Director
Finance & Company Secretary, Mr.
Azeem Pirani, CEO, Pak-Qatar Family
Takaful along with senior management
of the company.
Speaking at the occasion, Mr. Said Gul
said, “It is indeed a day to celebrate
and I would like to congratulate my
team for their hard work and dedication
towards achieving 2020’s business
targets which has marked an all-time
high in the company’s history since
business growth and success.
CEO PQFTL, Mr. Azeem Pirani said:
“Pak-Qatar Family Takaful, as the first
and largest Family Takaful operator,
is viewed as the key influencer in the
progression and advancements in the
field of Islamic finance. Since inception
to a franchise that boasts more than
100 locations across 90+ cities in
Pakistan, is exceptional growth indeed
and something we are all extremely
proud of.
He has successfully led Siemens AG
Pakistan as CEO / Managing Director
and Board Member of operations
in Karachi. He has executed mega
automation programs for global
companies and implemented failsafe
technologies for 1200 wellhead
shutdown systems at Saudi Aramco Oil
and Gas Wells.
He has also set up technology
centre at Siemens Saudi Arabia, to
share best practices, optimize global
competitiveness, and open new project
opportunities.
Hamdani has an Executive Master of
Business Administration from Babson
College, and an Electrical / Electronic
Engineering Degree from the University
of Engineering and Technology.
TRADE CHRONICLE - Jan - Feb - 2021 - Page # 23
TRADE CHRONICLE
Shahid Afridi becomes brand
ambassador for PROTON
With a resolute vision set ahead to
promote PROTON – The Malaysian
Automobile manufacturer in Pakistan,
Alhaj Automotive Private Limited in a
recently concluded ceremony roped
in flamboyant all-rounder and former
captain of the Pakistan cricket team,
Shahid Khan Afridi, as its corporate
brand ambassador.
During the signing ceremony, Shahid
Afridi ,while thanking Al- haj Automotive
Private Limited for the trust reposed on
him, said: “When people ask me about
my journey, the love and respect I have
earned on and off the cricketing field, I
Jahangir Khan becomes Ambassador
for HABIBMETRO Bank
HABIBMETRO signed squash world
champion Mr. Jahangir Khan as the
ambassador for its Roshan Digital
Account (RDA). The agreement was
signed between Mr. Jahangir Khan and
Mr. Mohsin Ali Nathani, the President
and CEO of HABIBMETRO Bank.
While speaking at the ceremony Mr.
Nathani said, “Mr. Khan is a legend
not only in Pakistan, but throughout
the world and it is an honor for
HABIBMETRO and Habib Bank AG
Zurich to have him as a satisfied
client as well as an ambassador for
our Roshan Digital Account.”
always say, Respect is purely an
outcome of all that I have done
over the years in representing my
Nation, and today it gives me great
pleasure and delight representing Alhaj
Automotive Private Limited in Pakistan
as I feel this brand has much value to
He added that RDA
will be a game
changer and will
prove to be a great
step for the banking industry and the
entire country. “HABIBMETRO takes
great pride in serving Pakistanis with
declared assets abroad as well as Non-
Resident Pakistanis who are an integral
offer to the Pakistani nation at large .”
The Chief Executive Officer of Alhaj
Automotive Private Limited – Mr.
Hilal Khan Afridi while gracing the
occasion with his presence said, “We
are privileged to have Shahid Afridi
as our brand ambassador, who is not
only an exemplary self-made cricketer,
but is also extremely versatile and
well respected by people across the
globe. His successful career is an
inspiration for our youth and resonates
with PROTON’s tagline ‘Inspiring
Connections’. We are confident that
with this association, we will be able to
connect with the large urban consumer
base especially the youth, across the
nook and corners of Pakistan”
part of the country’s economy,” he said.
While expressing his thoughts at
the event, Mr. Khan said, “I have
enjoyed a banking relationship with
HABIBMETRO and Habib Bank AG
Zurich for the last 40 years. I am
honored to be representing the Group
for the launch of their Roshan Digital
Account and to be one of the founding
account holders of the RDA at the
Bank.”
HABIBMETRO Bank operates with a
growing network of 400+ branches in
more than 135 cities across Pakistan.
The Bank is a subsidiary of Habib
Bank AG Zurich, which has a global
presence in 10 countries across 4
continents.
NBP, Al-Ghazi Tractors
sign MoU
A Memorandum of Understanding
(MOU) has been signed between
National Bank of Pakistan (NBP)
and Al-Ghazi Tractors Ltd (Al-Ghazi)
for collaboration between the two
organizations for development and
promotion of farm mechanization on a
nationwide basis.
The objectives of this MoU include
increased possibility of disbursement
of institutional credit for tractors,
implements i.e. cultivators, disk
harrows, rotavators, combine
harvesters etc to eligible farmers
and service providers, improved
capacity building of farmers for
adoption of mechanized farming in
Pakistan, improved financial literacy
of farmers and entrepreneurs with
a view to encourage them to avail
credit from NBP.
NBP and Al-Ghazi will cooperate to
identify and carry out joint marketing
activities to support tractor purchases
by farmers. Such activities may
include joint sales calls to prospective
customers and trade show / seminar
support and participation.
Abid Zuberi elected PBC
member from Sindh
Senior lawyer
Barrister
Abid Shahid
Zuberi has
been elected
as member
Pakistan Bar
Council from
Sindh.
Abid Shahid
Zuberi is a leading lawyer. He had
served as president and secretary of
Sindh High Court Bar Association.
Other senior lawyers who have also
been elected members Pakistan Bar
Council from Sindh are Shahab Sarki,
Farooq H Naik, Shahadat Awan, Yousuf
Leghari and Riasat Sehar.
TRADE CHRONICLE - Jan - Feb - 2021 - Page # 24
TRADE CHRONICLE
Mian Nasser Hyatt Maggo, President FPCCI presenting
FPCCI Crest to Brig. Syed Waqar Haider Rizvi,
Commander Anti-Narcotics Force (ANF)
Ahmed Bozai becomes
Country Officer of Citibank
Pakistan
Citi has announced Ahmed Bozai
as the new Citi Country Officer
(CCO) for its business in Pakistan.
As CCO, Ahmed will assume overall
responsibility for driving Citi’s business
in the country, and will report to Elissar
Farah Antonios who has been recently
appointed as the Head of Citi’s Middle
East and North Africa (MENA) cluster.
Mian Nasser Hyatt Maggo, President
FPCCI presenting FPCCI Crest to Brig.
Syed Waqar Haider Rizvi, Commander
Anti-Narcotics Force (ANF) on his
visit at FPCCI Head Office Karachi.
Muhammad Athar Sultan Chawla,
Muhammad Arif Yousaf Jeewa, Vice
Presidents FPCCI, Khurram Ijaz,
Altaf Agha elected Karachi
Gymkhana’s president
In the election of Karachi Gymkhana
held on February 21, Altaf Hussain
Agha became the President of the
Club, by taking the majority of votes.
Immediate past VP FPCCI, Shabbir
Mansha, Convener FPCCI SC on
Custom, Khalid Amin, Senior member,
Rehan Mehtaab Chawla, Major.
Riaz Anti-Narcotics Force (ANF) and
Muhammad Ayub Deputy Director Anti-
Narcotics Force (ANF) are also seen in
the picture.
The following 11 members were also
elected in the Managing Committee:
Jan Mohammad Dadabhoy, Khizra
Munir, Nadia Dada Baig, Sarwat Sultan
Chandio, Saleem Yousuf, Akhtar
Muneer, Ather Ali Khan, Saqib Naseem,
Adeel Javed, Asim Adil Shah and Sara
Noman.
Administrator Karachi assures full support to business
community
Until recently, Ahmed was the Chief
Operating Officer for the EMEA
Emerging Markets (EMEA EM) cluster
based out of Dubai.
“I am delighted to return to Pakistan
after almost twenty years, and
particularly excited with this opportunity
to lead Citi’s franchise,” commented
Ahmed on his appointment.
PIA and Nadra sign MoU
for verification, financial
services
President KATI Saleem-uz-Zaman
presenting shield to Administrator
Karachi Laeeq Ahmed. At the occasion
Senator Abdul Haseeb Khan, Zubair
Chhaya, Zaki Ahmed Sharif, Nighat
Awan, Masood Naqi, Umer Rehan and
Danish Khan are also present.
Pakistan International Airlines and
National Database and Registration
Authority inked a memorandum of
understanding at PIA office, paving
the way for PIA to acquire online
verification services, business process
automation, and payment gateway
services, considered as core specialties
of Nadra. Prior understandings were
developed between the two teams that
worked very hard to bring two national
organizations together for the benefit
and convenience of PIA customers.
The MOU was signed by CEO PIA Air
Marshal Arshad Malik and Chairman
Nadra Usman Mobeen.
TRADE CHRONICLE - Jan - Feb - 2021 - Page # 25
TRADE CHRONICLE
KCCI Pictorial News
Islamabad, KP region:
Former SSP Jamil Elected
IPA Chairman
Former Senior Superintendent
of Police
(SSP) Jamil Hashmi
has been elected
as chairman of
International Police
Association (IPA) for
Islamabad and Khyber-Pakhtunkhwa
region for 2021-2025.
President Karachi Chamber of
Commerce & Industry M. Shariq Vohra
presenting crest to Advisor to Chief
Minister Sindh on Law, Environment,
Climate Change and Coastal
Development Barrister Murtaza Wahab
during his visit to KCCI to attend
President Karachi Chamber of
Commerce & Industry (KCCI) M. Shariq
Vohra presenting crest to Director
General Frontier Works Organization
(FWO) Maj. Gen. Kamal Azfar during
his visit to KCCI. Vice Chairman
President Karachi Chamber of
Commerce & Industry M. Shariq Vohra
and Regional Head B2B Sales Jazz
Asim Irshad signing a Memorandum
of Understanding at KCCI for providing
35 percent discount to KCCI members
national symposium of Solid Waste
Management. Secretary Environment
Muhammad Aslam Ghauri, Senior Vice
President KCCI Saqib Goodluck and
Vice President KCCI Shamsul Islam
Khan are also seen in the picture.
Businessmen Group & Former
President KCCI Haroon Farooki, Senior
Vice President Saqib Goodluck, Vice
President KCCI Shamsul Islam Khan
and other FWO officials are also seen
in the picture.
on bill amount excluding tax. Senior
Vice President M. Saqib Goodluck,
Vice President Shamsul Islam Khan,
Regional Business Head/ VP Jazz Ali
Fahad Ahmad and others are also seen
in the picture.
The former Superintendent of Police
(SP) Rawalpindi Chaudhry Hanif was
elected as vice chairman, Deputy
Superintendent of Police (DSP) Crime
Investigation Agency (CIA) Hakim
Khan was elected as secretary, and
Khalid Awan DSP Sabzi Mandi was
elected as treasurer of Islamabad and
Khyber-Pakhtunkhwa region.
Amer Pasha joins Nutshell
Communications
Amer Pasha, a
seasoned professional
joins Nutshell
Communications as
Chief of Strategy &
Planning.
Amer’s forte lies
specifically in the digital payments
and FMCG industry. Till recently he
was based in Dubai with Visa Inc
and responsible for strategic sales
management for the CEMEA (Central
Europe, Middle East & Africa) region.
The Nutshell Communications was
established the Nutshell Forum
many years ago and made it the
most successful conference & event
management organization in Pakistan.
Bilal Akbar new envoy
to KSA
Prime Minister Imran
Khan has reportedly
appointed Lt Gen
Bilal Akbar (retired)
as Pakistan’s new
ambassador to Saudi
Arabia.
Lt Gen Bilal Akbar
(retired) served as chairman Pakistan
Ordnance Factory, Wah Cantt, prior to
his retirement in December 2020.
TRADE CHRONICLE - Jan - Feb - 2021 - Page # 26
TRADE CHRONICLE
Automobile News
Master Changan Motors
unveils price of new
Sedan Alsvin
Master Changan Motors has unveiled
the price of its All-New Smart Sedan
‘Alsvin’.
Unveiling the retail price of the
Changan Alsvin; a ‘smart sedan’,
Danial Malik, CEO Master Changan
said, “It is not a cheap car, but the
value that is being offered is much
higher than its price. The Alsvin brings
the Pakistani consumer international
level built quality and safety standards,
from our state-of-the-art plant which
has been designed to become the RHD
export hub for Changan vehicles from
Pakistan to the world.”
The 1.37L 5-speed Manual
Transmission is priced at Rs2,199,000,
1.5L 5-speed Dual-clutch Automatic
Transmission at Rs2,399,000 and
the top-of-the-line 1.5L LUMIERE at
Rs2,549,000.
All prices are ex-dealer which means
customers in Peshawar and Karachi
both can buy at the same price, without
paying any extra freight cost, he added.
Commenting on the pricing strategy,
Shabbir Uddin, Director Sales and
Marketing said, “The starting price
is even less than many hatchbacks
available in Pakistan whether locally
assembled or imported from Japan.
Whereas the price of 1.5L DCT
LUMIERE is around the same as
the stripped-down models of other
subcompact sedans assembled
locally.”
January 2021: New-year seasonality pushes sales over
17k units for the first time since FY19!
In January 2021, the Auto industry
sales witnessed a sharp 26% mom
and 46% yoy rise to 17,515 units (last
seen in June 2019), largely attributed
to New year seasonal effect. This was
led by the Premium segment (INDU
and HCAR), which rose c.40% mom.
This took 7MFY21 industry sales to
c.97,000 units, up 23% yoy. PSMC
sales witnessed a c.20% mom increase
in January to c.9,000 units, amid a lift in
Wagon R and Alto sales.
Among INDU sales Yaris sales saw a
sharp 2.1x mom
increase, while
Corolla sales
fell 15% mom.
We believe that
the increase in
Yaris volumes
is largely due to
the improvement
in supply chain,
leading to a ramp
up in production. INDU is set to launch
the Corolla Cross CBU in February,
while the new Corolla facelift (X
package) may boost sales for Corolla,
in our view.
HCAR sold c.2,500 units in January,
with Civic and City sales of 2,063 units,
up 35% mom while up a modest 10%
yoy. BR-V sales rose a sharp 65%
mom and 17% yoy to 387 units.
PSMC’s Wagon R sales rose a sharp
40% mom to 1,316 units (highest
monthly sales during the 7M period),
while the sales of the Alto rose 30%
mom. We understand from channel
Hyundai-Nishat will commence
double-shift: CEO
The Hyundai-Nishat is going to
commence a double-shift to boost its
production by 100 percent during the
first quarter of 2021. This was stated by
Hyundai-Nishat CEO Hassan Mansha,
here on Tuesday. Mansha said the
country’s economy was on the path
to stability and recovery, with LSM
including the automotive industry playing
its part and added that the acceptance
checks that the 23% mom decline in
Cultus sales was majorly due to the
supply constraints at Asian ports and
subdued demand due to potential
increase in Picanto sales, in our view.
We expect PSMC sales to remain
robust during CY21, where the impact
on sales from new entrants, such as
the recently launched Changan Alsvin
sedan is likely to be moderate.
Tractor industry recorded sales of
5,209 units, up a sharp 57% mom and
2.4x yoy. AGTL sales rose to 1,347
units in January
(vs. 345 units last
month). Sales of
MTL were up 30%
mom and c.3x yoy
to 3,862 units.
We expect tractor
sales to continue
the momentum
in the coming
months due to
improvement in farmers’ income,
where MTL sales may also rise with an
increase in tractor exports.
Sales for Hyundai clocked in at 515
units in January (flat mom) due to
flattish mom sales for both the Tucson
and H-100 Porter. Hyundai sales may
have sustained the 500 units level due
to smoothening out of supply-chain
issues, in our view, as the management
indicated ramping up production by
100% from January. According to
channel checks, we understand that
Kia sales also saw a big jump, as KLM
has started operating on a double-shift
basis from January.
and appreciation the Pakistani
people have shown towards
Hyundai has been nothing short
of overwhelming. Therefore, he
assured that Hyundai-Nishat had no
intention of slowing down now and
planning to boost its production by 100
percent through double shift during the
first quarter of 2021. Moreover, he said
Hyundai-Nishat was also investing in
capacity enhancements which shall
further increase its capacity by the end
of second quarter of 2021.
TRADE CHRONICLE - Jan - Feb - 2021 - Page # 27
TRADE CHRONICLE
Indus Motor Declares Rs 4.8 billion
profit after tax for 1HFY20-21
The Board of Directors of Indus
Motor Company (IMC) released its
financial results for the half-year ended
December 31, 2020.
IMC’s combined sales of Completely
Knocked Down (CKD) and Completely
Built-up Units (CBU) units increased
by 82% to 26,362 units against 14,453
units sold in the same period last
year. The Company produced 26,383
vehicles, registering an 81 % increase,
as compared to 14,555 units produced
in the same period last year. IMC’s
market share in the overall market
stood at approximately 24.7% for the
half year ended December 31, 2020.
The Company’s net sales turnover
for the half year ended December 31,
2020, increased to Rs. 79.65 billion
as compared to Rs. 42.78 billion, for
the same period last year, while profit
after tax increased to Rs. 4.8 billion as
against Rs. 2.3 billion achieved in the
same period last year.
The increase in turnover and
profitability for the half-year period was
mainly owing to higher CKD and CBU
volumes, and increased other income
due to improved cash flows. However,
cost increases mainly due to Rupee
devaluation eroded the gross profit
margin to 7.55% against 8.81% in
same period last year.
The Company experienced an
overwhelming response to Toyota Yaris
in the first, as well as second quarter of
fiscal year 2020-21 which contributed
to volume increase in Passenger Car
segment. Moreover, Fortuner TRD
variant was launched in
October 2020 which too
was well received by
customers.
The Earnings Per Share of the Company
for half year ended December 31, 2020
stood at Rs.61.08 as compared to Rs.
29.32 reported during the same period
last year. The Board of Directors with
pleasure, have declared second interim
cash dividend of Rs. 25 per share for
the half year ended December 31,
2020, compared to Rs. 6 per share, for
the same period last year.
Expressing his views, CEO IMC, Ali
Asghar Jamali, stated, “Overall, the
automobile industry is clearly bouncing
back. The economic upturn following
the gloom and despair hovering
over the auto industry during the
COVID-19 lockdown, owes itself to
the Government’s timely decision to
ease the lockdown and introduction
of favourable policies. Reduction in
interest rates has been another factor
that led to an increase in auto financing,
bolstering consumer confidence.”
He further added, “We thank our
valued customers who have always
placed their trust in our products, as
well as all our employees, stakeholders
and shareholders for their sustained
support.”
During the period, the Company
received accolades, winning the “Most
Outstanding Company in Pakistan
2020 (Automobiles and Component
Sector)” awarded by Asiamoney, and
the “Best Sustainability Report Award
2019” conferred by the Joint Committee
of Institute of Chartered Accountants
of Pakistan and Institute of Cost and
Management Accountants of Pakistan.
Lucky Motor Corporation
Ltd (Kia Lucky Motors) will
soon launch Kia Sorento
The company (KLM) invited analysts
yesterday at the plant in Port Qasim,
to showcase the new SUV model (7
seater) called the Kia Sorento.
Key Takeaways:
The Kia Sorento is expected to be
launched on 19 February, with 3
variants – 2.4L FWD, 2.4L AWD and
3.5L FWD. We suspect the price range
could be PKR7.0-9.0mn (according
to market sources), which will directly
face off against the Toyota Fortuner
(2.7/2.8L, price range PKR7.7-9.2mn).
Assuming similar unit sales as the
Fortuner (average 1HFY21 monthly
sales of c.240 units), we estimate that
the Sorento may contribute roughly
PKR20bn to KLM’s annual topline
(about 25% of existing revenues).
KLM has become the fourth largest
OEM in Pakistan by sales. It has a
plant capacity of 50,000 units per
annum, and is presently operating
on a double-shift basis (from January
2021). The Sorento will consist of six
airbags (the most available in a locally
assembled car) and will be the biggest
locally produced vehicle in Pakistan in
terms of engine displacement (with the
largest panoramic sunroof).
With the outgoing Auto policy expiring
in June 2021, we expect that KLM
may launch at least two other vehicles
before June, in order to avail the tax
benefits from the policy.
To recall, during 1HFY21, KLM
generated revenues of c.PKR44bn,
surpassing that of HCAR (c.PKR37bn),
while outselling the latter during
January. Kia churned an operating
margin of c.8% during 1HFY21, which
so far is the highest amongst the Auto
OEMs (based on Dec 2020 quarter
results released so far).
TRADE CHRONICLE - Jan - Feb - 2021 - Page # 28
TRADE CHRONICLE
Banking & Insurance
NBP recorded highest ever after
tax profit in its history
National Bank of Pakistan (NBP) said its
net profit for the year ended December
31, 2020 jumped 83.7 to Rs30.58
billion (EPS: Rs14.33), from Rs16.64
billion (EPS: Rs7.79) recorded in 2019,
mainly owing to its post-crisis recovery
strategy. The bank in a statement said
despite the challenging times, the NBP
recorded highest ever after tax profit in
its history.
“Gross mark-up/interest income closed
7.7 percent higher year-on-year at
Rs257.81 billion (2019: Rs239.48
billion); whereas the interest/markup
expense amounted to Rs153.66
billion, of which Rs103.38 billion or
67.3 percent was paid to the
depositors,” the statement said.
Despite reduced economic
activity during the year, the
bank succeeded in maintaining
its non-mark-up/non-interest
earning stream at Rs36.08
billion (2019: Rs36.20 billion).
Accordingly, total revenue of the
Bank closed 29.7 percent up
year-on-year at Rs140.23 billion
(2019: Rs108.11 billion).
As the operating and other
UBL full-year profit rises 9.3pc
to Rs20.78 billion
United Bank Limited (UBL) has
announced a net profit of Rs20.78
billion from continued operations for
the year ended December 31, 2020,
which is 9.3 percent higher than the
profit of Rs19.04 billion recorded in the
previous year.
The earnings per share (EPS) clocked
in at Rs17.12 in 2020 compared with
EPS of Rs16.6 in 2019. UBL also
declared a cash dividend of Rs9.5/
share, which was in addition to the
interim dividend of Rs2.5/share already
paid to the shareholders, a bourse filing
said recently.
Syed Nauman at Insight Securities
said, “The result is above expectations
mainly attributable to lower than
expenses dropped by 4.2
percent down year-onyear
by closing at Rs63.11
billion, the cost-to-income
ratio improved from 60.9 percent in
2019 to 45.0 percent in 2020.
Profit before provision closed 82.5
percent up at PKR 77.12 billion (2019:
Rs42.25 billion).
“The bank is more vigilantly monitoring
its credit portfolio by moving from
incurred to expected credit loss
approach,” it said in the statement.
Net interest income of the bank settled
at Rs104.37 billion during 2020,
increasing by an impressive 45 percent
compared with Rs72.15 billion in 2019.
estimated drop in net interest
income in fourth quarter, lower
provision charges and lower
effective taxation of 35 percent.”
The bank has booked a loss from
discontinued operations (UBL
Tanzania) worth Rs16 million during
2020 compared to a loss of Rs1.2
billion in 2019.
Net interest income declined 21.6
percent to Rs77.07 billion in
2020 compared with income
of Rs63.34 billion recorded in
2019.
“Net interest income surged
attributable to significant rate
cuts of 625bps by the central
bank during the year, which
helped sharply reduce deposit
costs,” a report issued by Arif
“Total non-interest income of the
bank showed no major change as
higher capital gain (265 percent) was
countered by lower fee income (-4.5
percent), dividend income (-40 percent),
foreign exchange income (-32 percent)
and 32 percent lower other income,” an
analyst at Arif Habib Limited said.
According to management, bank
skipped a dividend this year in order
to be prepared to incur the pension
expense. The bank said its end of
year total assets closed at Rs3,008.53
billion, 3.7 percent lower than 2019,
which it attributed to a reduction of
Rs333.22 billion in the money market
borrowings in line with our prudent
funding & liquidity strategy.
Furthermore capital and reserves stood
at Rs267.56 billion i.e. Rs34.9
billion were 15.0 percent up from
Rs232.62 billion on December
31, 2019.
The bank said it was executing
a post-crisis recovery strategy
on how to continue playing
its systemically important
role in economy and serve
its customers, while also
maintaining a strong and
resilient balance sheet to deliver
performance for shareholders.
Habib Limited noted. Total non-interest
income declined 20 percent to Rs18.8
billion in 2020 compared with Rs23.5
billion in 2019.
Decline in non-interest income is
mainly due to 18 percent decline in
fee income, 19 percent dip in foreign
exchange income and 22 percent lower
dividend income. The bank booked net
capital gains on securities worth Rs610
million, marking a 182 percent jump.
TRADE CHRONICLE - Jan - Feb - 2021 - Page # 29
TRADE CHRONICLE
MCB Bank posts highest ever PBT
of Rs. 48.25 billion for the year 2020
The Board of Directors of MCB
Bank Limited (MCB) met under the
Chairmanship of Mian Mohammad
Mansha, on February 10, 2021
to review the performance of the
Bank and approve the financial
statements for the year ended
December 31, 2020. The Board of
Directors has declared final cash
dividend of Rs. 15.0 per share
i.e. 150% bringing the total cash
dividend for the year ended 2020
to 200%.
With strong build up in core
earnings, MCB’s Profit After Tax
(PAT) for the year ended December 31,
2020, posted a growth of 21% to reach
Rs. 29.04 billion; translating into an
Earning Per Share (EPS) of Rs. 24.5
against an EPS of
Rs. 20.23 posted
last year 2019.
On the financial position side, the
total asset base of the Bank on an
unconsolidated basis was reported at
Rs. 1.76 trillion depicting an increase
of 16% over December 2019. Analysis
of the asset mix highlights that net
investments increased by Rs. 267
billion (36%) whereas due to subdued
domestic demand gross advances
decreased by Rs. 26.5 billion (-5%)
over December 2019. However, gross
advances increased by Rs 19.9 billion
in last quarter of 2020.
The Non-performing loan (NPLs)
base of the Bank recorded an
increase of Rs. 1.77 billion and was
reported at Rs. 51.19 billion.
MCB has been declared the
Overall Most Outstanding
Company in Pakistan – 2020
and Most Outstanding Company
– Financials Sector in Pakistan –
2020 by Asiamoney, an associate
of Euromoney. The Annual report
of MCB Bank has also been adjudged
1st by ICAP/ICMAP in the financial
sector category. MCB has won this
award 10 times in last 11 years with 8
consecutive wins.
HBL’s PAT doubles
to Rs30.9bn
Habib Bank Limited (HBL) has declared
a consolidated profit after tax (PAT)
of Rs 30.9 billion for the year ended
December 31, 2020. In other words,
bank’s PAT doubled as compared to
the same period of 2019.
Profit before tax recorded a growth
of 84 percent over 2019 to Rs 53.0
billion. Along with the results, the Board
of Directors of the Bank declared a
final cash dividend for the year ended
December 31, 2020 at Rs 3.00 per
share i.e. 30 percent.
HBL grew its domestic deposits by a
phenomenal Rs 400 billion, with market
share increasing to over 14 percent.
An increase of over Rs 100 billion in
current and more than over Rs 200
billion in savings accounts resulted
in strong CA and CASA ratios of 35.0
percent and 86.6 percent respectively;
HBL’s total deposits increased to
Rs 2.8 trillion. Domestic advances
crossed a landmark of Rs 1.0 trillion
and the consumer lending portfolio,
in particular, showed an excellent
performance, crossing Rs 75 billion.
Commenting on the Bank’s
performance, Muhammad Aurangzeb,
President and CEO, HBL said, “The
Bank had a stellar year in which
all key indicators remained on an
upward trajectory, and the domestic
franchise delivered record profits. The
international business has also shown
signs of a turnaround in the fourth
quarter of 2020 with revenues trending
upward. Moreover, HBL is actively
working on financial inclusion initiatives
through significant investments in
technology and digitalization efforts.
Meezan Bank announces financial
results for 2020
The Board of Directors of Meezan
Bank Limited in its meeting, held
on February 18, 2021 approved the
audited financial statements of the
Bank for the year ended December 31,
2020. The meeting was presided by
Riyadh S.A. A. Edrees - Chairman of
the Board, Faisal A. A. A. Al - Nassar
– Vice Chairman of the Board was also
present.
The Bank recorded excellent results for
the year ended on December 31, 2020
with Profit after tax of Rs22.17 billion
as compared to Rs15.23 billion in the
corresponding period last year – an
impressive growth of 46%. EPS of the
Bank increased to Rs15.67 per share
against Rs10.77 per share in December
2019 on the enhanced
capital of Rs14.147 billion
The Board approved 20%
(Rs2.00 per share) final
cash dividend for the year, bringing
the total payout for the year to 60%
(Rs6.00 per share) as 40% (Rs4.00 per
share) interim cash dividend was paid
in addition to 10% bonus shares issued
during the year.
Deposits of the Bank closed at Rs1.25
trillion – 35% up from December
2019. Meezan Bank is now the fifth
largest bank in Pakistan in terms of
deposits. The Bank has a network of
815 branches and 880 ATMs in 248
cities across the country and its Mobile
Banking App has been consistently
ranked as the No.1 Mobile Banking
App in Pakistan by both Apple Store
and Google Play Store.
ABL’s PAT elevates to
Rs18.029bn, registering
28pc growth
Under the challenging and competitive
operating environment owing to
Covid-19 pandemic, Allied Bank Limited
(ABL) sustained focus on its long-term
multi-pronged strategy driven towards
continuous augmentation of innovative
technology-based products and service
offerings to customers through enhancing
digital touch points, strengthening risk
management and optimizing operating
efficiencies.
Sharp decline in interest rates led the
average policy rate to shrink to 8.95
percent in December 2020 as compared
to 11.98 percent in December 2019.
Consequently, positive volume variance
of earning assets has been fully offset
by negative rate variance of mark-up
bearing assets
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TRADE CHRONICLE
Bank Alfalah maintained operating
profit at Rs. 25.5 billion
The Board of Directors of Bank Alfalah
Limited in its meeting held on February
3, 2021, approved the Bank’s audited
financial statements for the year ended
December 31, 2020.
The Bank reported an operating profit
of Rs. 25.468 billion, marginally higher
than last year, despite lockdown in
the country and the 625 bps drop in
policy rate during the year. Subjective
provisioning and general provision
buildup against advances contained
Faysal Bank wins ‘Best
Emerging Bank 2020’ Award
Faysal Bank Limited, a leading
commercial and Islamic bank of
profit after tax at Rs.
10.475 billion, which
translates into earnings
per share of Rs. 5.89
(2019: Rs. 7.15).
Total deposits and gross advances
were reported at Rs. 881.767 billion
and Rs. 600.899 billion, growing by
12.7% and 13.4% respectively. Gross
advances to deposits ratio stood at
68.1%. CASA ratio improved to 79.8%,
while the current account mix reached
a high of 46.6%. We continued to
support our credit clients throughout
this challenging period. The Bank
has non-performing advances of Rs.
25.860 billion and the NPL ratio stands
at 4.3%. Provision coverage ratio
increased to 91.2% at year end.
Net markup income was Rs. 44.705
billion, flat versus the prior-year, with
the impact of lower rates and certain
Pakistan, has been accoladed with
the “Best Emerging Bank 2020”
award at the 5th Pakistan Banking
Awards (PBA) ceremony held in
Karachi recently. As the fastest growing
Islamic bank in Pakistan offering a
complete range of Islamic
banking products and
services. For the last few
years, Faysal Bank has been
on a transformation journey
and having successfully
achieved the milestone of
500 Islamic branches out
of its branch network of 576
is currently on track to the
largest Islamic conversion
in banking history.
Covid related actions offset by balance
sheet growth and a favourable assetliability
mix. Non-markup revenue was
Rs. 12.795 billion, up by 23.5%, with
sizable contribution from capital gains
on government securities. Fee and
commission income remained muted
due to lower transaction volumes,
revenue recognition in line with IFRS 15
which requires deferral of fee income
over the contract period and regulatory
waivers of branch and digital banking
fees.
Non-markup expense was Rs. 32.032
billion, with growth contained at 7.3%.
The main cost drivers were higher staff
costs, IT support and maintenance
fee, and the full year impact of new
branches opened last year, along with
the overall impact of inflation. Thus the
cost to income ratio of the Bank was
reported at 54.7%, slightly higher than
last year.
TPL wins 9 awards
TPL, Pakistan’s leading technology
driven conglomerate, won nine awards
at the ‘10th Annual Corporate Social
Responsibility Summit & Awards 2021’,
held at the Marriot Hotel, Karachi.
Faysal Islami launches ‘Noor’ Card: A shariah compliant
alternative to conventional credit cards
Faysal Bank Limited, Pakistan’s fastest
growing Islamic Bank has launched
“Noor” Card – a Shariah compliant
alternative to conventional credit
cards, facilitating its Islamic banking
consumers with a range of benefits and
Halal offers across various categories
of spend – powered by Mastercard.
Taking the different needs of its
customers into account, the Faysal
Islami Noor card is available across
several variants, from Platinum to
Titanium, with each providing different
levels of added benefits and features
to cardholders for exclusive shopping,
dining and traveling experiences.
Inching closer on its journey to complete
Islamic conversion, Faysal Islami Noor
is Pakistan’s first Islamic card based
on Shariah principle of Tawarruq with
3D Secure, contactless payment
and transaction services, leading its
consumers to a hallway of premium
Islamic lifestyle while also keeping their
convenience of everyday life in check.
Commenting on this achievement
of another milestone, Mr. Tahir
Yaqoob Bhatti, Faysal Bank’s
Head of Retail Banking, said,
“The launch of Faysal Islami Noor
card reaffirms our commitment to
achieving leadership in providing
Shariah-compliant financial and
payment services to our customers.
The launch of ‘Noor’ sets sail to a
trailblazing initiative to the Bank’s
credit, transforming the experience
of Islamic banking customers. Now,
Noor Card customers can use this
Shariah compliant card with complete
satisfaction and peace of mind, availing
a range of distinct reward systems
and premium benefits within the strict
umbrella of Shariah compliant banking
practices and principles.”
TRADE CHRONICLE - Jan - Feb - 2021 - Page # 31
TRADE CHRONICLE
Golootlo and BankIslami partner
for PayPak Loyalty Program
Decagon Pakistan Pvt Ltd. (Golootlo)
has entered into an agreement with
BankIslami, which will allow the bank’s
PayPak debit card customers to
seamlessly access Golootlo discounts
nationwide as part of the PayPak
TPL Insurance, Pakistan’s first direct
insurance Company, has entered
into a strategic partnership with
Let’s Compare. An MoU was signed
between the two companies at the TPL
Insurance Head Office in Karachi.
The partnership aims to digitize the
end-to-end experience of purchasing
insurance. Let’s
Compare, allows
users to research,
compare and buy
insurance products
online to make wellinformed
decisions.
Following the
agreement, TPL’s
Loyalty Program.
Customers with PayPak
EMV Debit Cards issued
by BankIslami will now be able to
swipe their cards and avail a range
of discounts at more than 18,000
merchants.
Chairing the agreement signing
was Mr. Fahad Mehmood - CEO,
Decagon, and Mr. Bilal Fiaz - Group
Head Consumer Banking, BankIslami
Pakistan. Furthermore, the signing
was also overseen by Mr. Amir Ali -
President & CEO, BankIslami Pakistan,
Mr. Majid Bashir - Chairman, Decagon,
Mr. Najeeb Agrawala – CEO, 1LINK
and Mr. Moin Khan-Brand Ambassador,
BankIslami Pakistan.
TPL Insurance collaborates with Let’s Compare
to provide insurance products
TPL Insurance partners with Sastaticket
to provide travel insurance services
TPL Insurance, Pakistan’s first Direct
Insurance Company, has partnered
with Sastaticket, a one-stop-shop for
all travel-related services, based in
Karachi. Following
the partnership,
customers will have
access to TPL’s
Travel Insurance
products while they
compare airline
and hotel prices
on Sastaticket.
pk. Additionally,
Sastaticket
customers will get
coverage of up to Rs.
Auto, Travel and Health Insurance
policies and fastest claim services will
be made accessible to customers on
the platform, promoting transparency
and convenience
Present at the ceremony from TPL
Insurance, were Syed Kazim Hasan,
DMD, Muhammad Wasif Ali, Head of
Business Solutions
and Faraz Mehmood,
Team Lead, Digital
Sales and Alliances.
Representing Let’s
Compare were
Junaid Khan, CEO
and Hassan Shafiq,
COO.
100,000 , including
protection against
accidental death,
permanent total
disability, medical
evacuation and loss of baggage and
CNIC.
Khushhali Microfinance
Bank wins best
Microfinance Bank
for 2020
Khushhali Microfinance Bank Limited is
pleased to announce the award of the
‘Best Microfinance Bank’ in Pakistan
for the third consecutive year by The
Institute of Bankers Pakistan. This
is a testament to the performance of
Khushhali Microfinance Bank over the
years. The honour has been bestowed
upon Khushhali Microfinance Bank
Limited on the occasion of 5th Pakistan
Banking Awards 2020, with knowledge
partners AF Ferguson and media
partners Dawn Media Group. Khushhali
Microfinance Bank is the largest
microfinance bank in Pakistan providing
access to financial services to the lowincome
& marginalized segments of the
population across Pakistan.
Dubai Islamic Bank joins
Pakistan’s Roshan Digital
Account initiative
Dubai Islamic Bank
– the World’s First
Islamic bank – joined
the Roshan Digital
Account (RDA)
initiative of the State
Bank of Pakistan (SBP) in a ceremony
with Governor SBP, Dr. Reza Baqir,
as the Chief Guest. Headquartered
in Dubai, Dubai Islamic Bank (DIB)
has the distinction of being the largest
Islamic bank in the UAE market and the
second largest in the world by assets,
which reflects its global strength.
DIB has a global presence across
seven countries (UAE, Pakistan,
Kenya, Indonesia, Turkey, Sudan &
Bosnia).
Roshan Digital Account has shown
impressive results in the short period
of five months since it was launched
to digitally connect Overseas
Pakistanis with Pakistan’s banking
and payments system. Over $550
million in remittances has already been
generated and over 90,000 accounts
opened, and the momentum has been
rising in the last few months.
TRADE CHRONICLE - Jan - Feb - 2021 - Page # 32
TRADE CHRONICLE
Telecommunication News
JazzCash and KASB Securities join
hands to promote retail investment
JazzCash, Pakistan’s leading digital
payments platform, and KASB
Securities, the country’s leading
brokerage firm, have signed a
Memorandum of Understanding
(MoU) to promote retail investment by
easing access to investment products
and stock market trading. The MoU
was signed by Erwan
Gelebart, CEO,
JazzCash and Ali Farid
Khwaja, Chairman,
KASB Securities during a
ceremony at the Pakistan
Stock Exchange (PSX)
today.
As per the MoU, KASB
Securities will assist
JazzCash in offering its
customer’s investment
access to stocks,
exchange-traded funds,
gold, government bonds
and mutual funds.
JazzCash will also work
towards integrating
KASB Securities’ popular
investment application, KTrade, and
KASB Varsity, a financial education
platform. These new services will
be available to JazzCash customers
through its app in the second quarter of
this year.
Jazz wins contract for providing Broadband services
in Jhelum and Chakwal Districts
Zong announces prepaid
international roaming
package for UAE
Continuing to serve the changing
connectivity needs of its customers,
Pakistan’s leading cellular and digital
services provider, Zong 4G, has now
introduced the UAE international
roaming package for its prepaid
customers.
The UAE Prepaid Bundle gives the
subscribers 250 Minutes, 250 SMS,
and 2GB of data with a validity period
of seven days for just Rs 2999+Tax.
The offer can be activated by dialling
*4255# or *964# or via Zong online
shop at https://www.zong.com.pk/
onlineshop/ir-bundles.
USF awards contract
to Telenor Pakistan
The Universal Service Fund (USF)
awarded contract worth approximately
PKR 254 Million to Jazz for providing
High Speed Mobile Broadband
services in rural and remote areas
of Punjab. Federal Minister for IT
and Telecommunication, Syed Amin
Ul Haque and Federal Minister for
Science and Technology, Fawad
Chaudhry witnessed the contract
signing ceremony held at the Ministry of
IT and Telecommunication, Islamabad
recently.
The contracts were signed by Haaris
Mahmood Chaudhary, CEO, USF with
Aamir Ibrahim, CEO Jazz. The Federal
Secretary for IT & Telecommunication
and Chairman USF Board, Shoaib
Ahmad Siddiqui, and Chairman PTA,
Major General (R) Amir Azeem Bajwa
were also present at the ceremony.
The Universal Service Fund (USF)
awarded contract worth approximately
PKR 1.37 Billion to Telenor for providing
High Speed Mobile Broadband services in
Chitral, Upper Dir and Lower Dir districts
of Khyber Pakhtunkhwa province. Federal
Minister for IT and Telecommunication,
Syed Amin Ul Haque and Special
Assistant to the Prime Minister on
Ministry of Overseas Pakistanis &
HRD, Syed Zulfiqar Abbas Bukhari
witnessed the contract signing ceremony
held at the USF Office, Islamabad on
Wednesday. The contracts were signed
by Haaris Mahmood Chaudhary, CEO,
USF with Irfan Wahab Khan, CEO
Telenor. The Federal Secretary for IT &
Telecommunication and Chairman USF
Board, Shoaib Ahmad Siddiqui, and
Chairman PTA, Major General (R) Amir
Azeem Bajwa were also present at the
ceremony.
TRADE CHRONICLE - Jan - Feb - 2021 - Page # 33
TRADE CHRONICLE
PTCL integrated telecom services
license renewed for 25 years
Pakistan Telecommunication Company
Limited (PTCL) has renewed its
integrated telecom services license
with Pakistan Telecommunications
Authority (PTA) for next 25 years.
PTCL had initiated the renewal process
by formally requesting PTA on June
29, 2018. After conclusion of the
ongoing discussions, the license is
now renewed in accordance with the
existing government policies.
PTCL, being the backbone of
connectivity in the country, is at the
forefront to provide uninterrupted and
better quality of services to the people
of Pakistan. Seamless and reliable
connectivity provided by PTCL is playing
a key role in bringing economic and
social uplift in the country. Aligned with
the Prime Minister’s vision of a Digital
Telenor Pakistan crosses 47 million
subscribers in Q4 2020
Telenor Pakistan announced its Q4
results for 2020 today and reported an
improvement in overall performance
and added more than 1 million
subscribers in Q4 bringing overall
subscriber base to over 47 million. In
what has been a challenging year with
the pandemic negatively impacting
the results, the subscription and traffic
(S&T) revenues declined 6.1% for
2020. However, the trends have been
improving for the 2nd half of 2020,
and Q4 S&T revenues were flat on
reported basis, with underlying growth
on normalized basis.
Telenor Pakistan’s Q4 performance
showed an improvement in underlying
Pakistan, the national
carrier is undertaking
a strategic approach
to roll out fiber network
across Pakistan. It will not
only support the business community,
but will also ensure convenience and
ease for customers through provision
of unlimited high-speed internet.
Moreover, PTCL endeavors to further
strengthen its network infrastructure by
adopting the latest technologies to offer
secure and modern Cloud solutions,
Data Centers, fiber internet, domestic
& international leased lines, wholesale
IP Bandwidth, IPTV services and voice
telephony.
Expressing his views, Naveed Khalid
Butt, Group Chief Regulatory Officer,
PTCL & Ufone, said, “We are happy
to announce the news of our license
renewal for the next 25 years with PTA.
PTCL, being the national carrier, has
always remained dedicated in its efforts
S&T revenue, however
due to continuous
challenging factors in the
business environment,
the company experienced a flattish
subscription and traffic (S&T) revenue of
-0.3%. Still, in a highly competitive and
challenging market Telenor Pakistan
has successfully managed to deliver
EBITDA growth both for Q4 and YoY
as a result of the company’s strategy
to prioritize costs, improve subscriber
to provide connectivity to the people
and organizations across Pakistan. The
company has gone through massive
transformation since its inception and is
now focused to keep Pakistan digitally
connected to better serve its customers,
partners and stakeholders.”
With the renewal of its license, PTCL
is geared up to take the challenge for
taking Pakistan to the next level of
growth and progress. With an expanding
product and services portfolio, PTCL is
one of the key stakeholders of the ICT
industry in Pakistan, committed to meet
the expectations of its customers. The
national carrier has the largest optical
fiber cable network comprising four
international submarine cables that is
serving millions of customers across
Pakistan, including other telecom
operators.
engagement and introducing market
portfolios at the right time.
“I am happy to share that our efforts
to improve subscriber engagement
contributed to our overall performance.
Despite the challenges faced by the
pandemic and other factors, we were
able to strengthen the profitability with
a YoY EBITDA growth and we ended
the year on a strong note by adding
more than a million new subscribers
on net basis. We were successfully
able to control our OPEX by prioritizing
spending and providing our customers
with the services and offers they need at
the right time. Now we remain focused
on improving the business environment
to provide the opportunity for further
profitable investments and growth”
Said Fridtjof Rusten, Chief Finance
Officer Telenor Pakistan.
Ufone brings STARZPLAY
by Cinepax for U
Keeping customer convenience a
top priority, Ufone has partnered with
STARZPLAY by Cinepax to provide
variety of latest TV shows, movies, kids’
entertainment and Pakistani dedicated
content including selected titles in
full HD with flexible payment plans.
Ufone subscribers can now stream
their favorite shows from any device at
all times; also getting the opportunity
to download all their shows for offline
viewing. The platform is available for all
Ufone pre- and postpaid customers to
enjoy unlimited movies,
videos and short films.
Through this partnership
Ufone aims to provide
diverse entertainment
options to customers and
ensures that they get
amazing value for money.
The service is available to
users all across Pakistan
with a daily price point
for as low as Rs. 8/
day, weekly price of Rs. 59/week and
monthly price of Rs. 239/ month.
TRADE CHRONICLE - Jan - Feb - 2021 - Page # 34
TRADE CHRONICLE
Ufone launches its
first ever eSIM
Ufone has now eliminated the need for
physical installation of SIMs with the
introduction of eSIM for its customers.
The Pakistani telecom operator has
partnered with Giesecke+Devrient
Mobile Security (G+D) to launch these
SIMs across the country. The Ufone
eSIM platform enables subscribers
with a compatible handset to integrate
multiple SIM card numbers directly into
their phones or IoT devices, using the
internet.
Customers can also download data
plans and remove old SIM profiles
within the same device without having
to physically switch their SIM cards.
Ufone’s eSIM service is available
across Pakistan.
Speaking on this occasion, Ufone’s
Spokesperson said, “Our customers
are now readily adopting environment
friendly way of living thus it is important
for us to provide them innovative
solutions for day to day operations.
By using Ufone’s eSIM, customers
can experience seamless services in
a sustainable manner and avoid use
of plastic SIMs. At Ufone, customer
satisfaction and ease is the utmost
priority. Therefore, every possible
step is being taken to ensure their
convenience.”
This technology is available for a
number of eSIM-enabled devices
like laptops, tablets, wearables and
IoT devices. It is also available for all
handsets which are compatible with
the function like iPhone 11, 12 and all
its variants, including iPhone XS, XR
and XS max which work as dual SIM
Phones.
Samsung S21, Samsung S20 Series,
Samsung Galaxy S20 Ultra 5G,
Samsung Galaxy S20+, Samsung
Galaxy S20, Samsung Z flip, Huawei
PTCL, Huawei launch Smart Cloud Campus Solution
for enterprise customers
Pakistan Telecommunication Company
Limited (PTCL), in collaboration with
Huawei Technologies Pakistan Pvt Ltd,
launch Smart Cloud Campus Solution
for enterprise customers.
This solution includes the
services of AI Enabled WIFI-
6 Campus, Software Defined
LAN and Software defined
WAN (SD-WAN) as a service.
The infrastructure of these
services employs PTCL’s
industry proven connectivity,
capacity and Data Center
infrastructure with Huawei’s
next-generation autonomous
driving network management
and control system Cloud
platform for enterprise
networks.
This is a first-of-its-kind intelligent
network automation Cloud platform that
integrates management, control and
analysis functions, along with providing
complete life cycle automation of
enterprise networks that implements
intelligent fault closure through big data
analytics.
Speaking on the occasion, Zarrar
Hasham Khan, Chief Business
Services Officer, PTCL, said, “PTCL
Zarrar Hasham Khan, Chief Business Services Officer, PTCL and
Gaoweijie, Managing Director, Huawei Technologies Pakistan
Pvt Ltd, along with senior officials from both companies including,
Shahzad Rasheed, CTO, Huawei, are present at the collaborative
launch of Smart Cloud Campus Solution for enterprise customers, by
PTCL and Huawei, in Pakistan.
Business Solutions is catering to the
ever-growing business needs of our
enterprise customers. As softwaredefined
networks are key enabler
for providing robust, scalable and
secure architecture, it will surely help
our enterprise customers to build
P40 Pro, Huawei P40, Google Pixel 4
XL, Google Pixel 4, Google Pixel 3A
XL, Google Pixel 3A
For this purpose, Ufone has partnered
with Giesecke+Devrient Mobile Security
(G+D), an industry leader in eSIM
management with more than 95 million+
commercial eSIM/eUICCs Managed
Embedded Universal Integrated Circuit
Cards (EUICCs) for some of the biggest
mobile operators and OEM in Asia,
Europe, Americas, Middle East and
Africa; to launch a fully-functional eSIM
subscription management platform for
its subscribers.
Ufone is one of Pakistan’s largest
telecom service providers and is leading
the country’s digital transformation with
its innovative and customer-centric
approach. Combined with its effort
for seamless connectivity for all its
subscribers across Pakistan, Ufone
has constantly strived to promote
digitalization and ease of contact for all,
adhering to its moto ‘Tum he tou ho’.
For more information on e-SIM
customers can visit www.ufone.com/
eSIM
more agile and reliable networks.
Being a significant milestone, PTCL
brings technological innovation to
accelerate enterprises achieve digital
transformation.”
On the occasion, Gaoweijie, Managing
Director, Huawei Technologies
Pakistan Pvt Ltd, said, “We are glad
to collaborate with PTCL,
national carrier of Pakistan
that has strong corporate
presence in the country. With
this solution, enterprises will
be empowered to run critical
applications with complete
security and ensure data
privacy. Not only that,
enhanced performance
would be delivered with
higher capacity bandwidth,
network visibility, and
a seamless on-ramp to
the cloud with significant
application performance.”
Smart Cloud Campus Solution
has innovative features that help
enterprises reduce OPEX and O&M
costs to achieve automation with a
more intelligent network operations
management.
TRADE CHRONICLE - Jan - Feb - 2021 - Page # 35
TRADE CHRONICLE
Oil and Gas
OGDCL achieves milestone of adding massive production in short span of last
two months of 2020: Shahid Salim Khan, MD/CEO OGDCL
Oil and Gas Development Company
Limited (OGDCL), Pakistan’s flagship
Exploration and Production Company
listed on Pakistan Stock Exchange &
London Stock Exchange continued
to contribute significantly towards the
overall oil and gas production portfolio
of the country during the last year.
The company remains a market leader
in Oil & Gas production, contributing
48% in oil. 27% in gas & 37% in LPG
production of the country. The company
has made contribution of Rs. 130 billion
PSO launches Euro 5 standard
diesel in Pakistan
PSO continues to lead the fuel
revolution in Pakistan by becoming the
first Oil Marketing Company (OMC) to
upgrade Pakistan’s diesel fuel standard
from Euro 2 to Euro 5. The Company
has recently launched its Euro 5
standard high speed diesel under the
brand name “PSO Hi-Cetane Diesel
Euro 5.”
The Government of Pakistan (GOP)
mandated the import of Euro 5
standard compliant high speed diesel
from January 2021.
to the national exchequer during 2019-
20.
During the quarter ended 31st
December 2020. OGDCL successfully
added oil & gas to the tune of 2666
Barrels per day of oil. 82.0 MMSCFD
of Gas and 77 Metric Tons per day of
LPG. During this short span OGDCL
has not only added production from new
wells but also enhanced its production
through optimization of production from
already producing wells.
According to the figures. OGDCL has
acquired 1566 Barrels of additional oil
and 71 MMSCFD of additional gas by
injecting wells while 1100 Barrels of
oil and 11 MMSCFD of gas production
enhanced through other efforts.
The company also enhanced production
of LPG and added 77 MTD in the
system. This production enhancement
by injecting 14 new wells from all over
Pakistan and adding substantial oil and
As a proactive and forwardthinking
company, PSO
imported the first shipment
of Euro 5 standard diesel on
December 23, 2020 making PSO Hi-
Cetane Diesel Euro 5 available at PSO
retail outlets in Karachi well ahead of
the timeline specified by the GOP.
PSO Hi-Cetane Diesel Euro 5 was
formally launched by CEO & MD,
PSO, Syed Muhammad Taha during
a ceremony held at PSO Burraque
Service Station, Karachi. Key business
partners, valued clients andsenior PSO
officials were present at the occasion
to celebrate this significant milestone
for the country and
company.
CEO & MD, PSO, Syed
Muhammad Taha said
“PSO has once again
raised the bar as we
lead our beloved nation
into an era of premium
quality, environment
friendly and high
performance fuels.”
gas in the national grid in short span of
time was only possible due to dynamic
leadership of MD/CEO of OGDCL and
his team.
As per the detail and available data,
OGDCL has injected Saand well #
1, Saand well # 2. Tando Allah Yar
South West well #1. Togh Bala well
# 1. Nashpa well # 10. Mangrio well
# 1, Qadirpur well # 10, Umair well #
1, Qadirpur well # 53, Qadirpur well #
16. Qadirpur well # 17, Daru well # 1,
Pasakhi Deep well # 6, Pasakhi West
Deep well # 2 and commissioning of
Nashpha compression project.
The newly injected wells and substantial
increase in oil & gas production will
not only add to the hydrocarbon in the
network but will also bring significant
savings to the exchequer in the form of
import substitution. The increase in oil
& gas production is also likely to help
in mitigating ever growing demand of
domestic consumers and industry.
PPL organizes eye camps
in Sui, Dera Bugti
Pakistan Petroleum Limited (PPL) in
partnership with Al-Shifa Trust Eye
Hospital organized two free-of-cost eye
camps in Sui and Dera Bugti, Balochistan
to reach deserving local communities
around its flagship Sui Gas Field.
Surgical eye camps are an annual feature
of the company’s Corporate Social
Responsibility Programme.
The three-day eye camp at Dera Bugti
was held at District Headquarters Hospital
between January 28 and 30, while the
other one was held at PPL-funded Public
Welfare Hospital, Sui between February
1 and 3.
Overall, the camps provided free-of-cost
consultation, treatment and medicines to
over 3000 patients. Among these, more
than 1500 were given optical glasses and
over 355 patients underwent cataract
surgeries.
These eye camps, organized by
PPL around its producing fields, for
over a decade, have benefitted local
communities in remote areas through
provision of quality consultation, latest
onsite surgical technology and medicines.
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Travel World
PIA’s outlet inaugurated at KCCI, Members
to get 10 percent discount
The Karachi Chamber of Commerce &
Industry (KCCI) has achieved
yet another significant milestone
as Pakistan International
Airlines (PIA)’s outlet was
inaugurated within KCCI’s
premises which will be providing
10 percent discount on domestic
and international flights not only
to KCCI members and staff but
also their family members.
In this regard, a Memorandum of
Understanding (MoU) was signed by
Chief Executive
Officer (CEO)
PIA Air Marshal
Retd. Arshad
Malik and President KCCI M. Shariq
Vohra at a ceremony organized at KCCI
which was also attended by Chairman
Businessmen Group (BMG) & Former
President KCCI Zubair Motiwala,
Senior Vice President KCCI Saqib
Goodluck, Vice President Shamsul
Islam Khan, Former Presidents
Younus Muhammad Bashir,
Shamim Ahmed Firpo & Junaid
Esmail Makda and others.
Speaking on the occasion, CEO
PIA Arshad Malik paid glowing
tribute to Late Siraj Kassam
Teli for his exceptional services
to the country, particularly
the business & industrial
community. “Because of his splendid
work, Siraj Teli would go down in the
history and will always be remembered.
PIA, Hashoo Group join
hands
Pakistan International Airlines (PIA)
and Hashoo Group would jointly
promote domestic tourism in Pakistan,
a statement said on Saturday.
PIA CEO Air Marshal Arshad Malik
inaugurated the newly-established
counter by PIA and destinations of the
world, Hashoo Group at PIA booking
office Karachi, it added.
The PIA CEO was presented with Sindhi
Ajrak and a cap by PIA District Manager
Faisal Kharal. Tariq Bin Yousuf, general
manager of Destinations of the World
- Pakistan(DOTW), senior officials of
PIA & DOTW were also present on the
occasion.
A special counter has been set up at
the PIA booking office Karachi where
passengers can now book their tickets
and also avail instant hotel booking and
packages.
More travel counters are expected to be
opened at PIA booking offices across
Pakistan and also at Hashoo Hotels in
Pakistan where one-window operation
for hotel bookings, PIA ticket purchases
and packages were jointly promoted by
the Hashoo Group and PIA.
Imarat Group and Marriott Int’l sign
franchise agreement
The Imarat Group of Companies and
PIA announces 10pc discount for
BQATI members
Marriott International
signed a franchise
agreement to
launch service of
the Residence Inn by Marriott and
Courtyard by Marriott in Pakistan.
The signatories of the agreement were
Chairman Imarat Group of Companies,
Shafiq Akbar and Director of Lodging
Development - Middle East & Pakistan
for Marriott International Ziad Abi Raad.
Pakistan International
Airline (PIA) has
announced a 10
percent discount to the
members of Bin Qasim Association
of Trade & Industry (BQATI) and their
immediate family for international and
domestic travels.
The announcement was made by CEO
Air Marshal Arshad Malik during his
visit to BQATI Secretariat where MoU
was signed between PIA and BQATI.
Emirates’ special fares
Emirates is launching its much-awaited
global sale to inspire and encourage
Pakistani travellers to reconnect with
family and friends or explore new
destinations in the new year. With
attractive offers, Emirates customers
in Pakistan can make up for lost time in
2021.
All-inclusive Economy Class fares from
Pakistan start at USD 247 to Dubai, USD
598 to Manchester, USD 641 to London,
USD 810 to New York and USD 1,014
to Toronto. Business Class fares start at
USD 618 to Dubai, USD 1,738 to London,
USD 2,041 to New York, USD 2,193 to
Manchester and USD 2,312 to Toronto.
Offer applies on fares across the Emirates
network with details available here.
Bookings have to be made between 19
January 2021 and 01 February 2021,
for travel between 20 January 2021 and
15 June 2021. Emirates customers from
Pakistan can travel with peace of mind
with the airline’s flexible booking options
and multi-risk travel insurance including
COVID-19 cover with every flight.
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BREAK BULK DRY BULK FORWARDING FSRU
GAS CARRIERS PROJECT CARGO RO / RO TANKERS
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