www.tradechronicle.com Vol 68 -Issue Nos. 3 & 4 - Mar - Apr. 2021 Rs. 250/-
ESTABLISHED IN MARCH 1953
68 th - YEAR OF PUBLICATION
TRADE CHRONICLE
PAKISTAN OLDEST MONTHLY MAGAZINE OF COMMERCE, TRADE, INDUSTRY & PUBLIC AFFAIRS
23 rd MARCH
PAKISTAN
RESOLUTION
DAY
IN THIS ISSUE
CABINET RESHUFFLES
• The automobile industry recovers
from Covid impacts
• Pakistan’s cement industry expands
its capacity
• Message from Dr. Arif Alvi President
Islamic Republic of Pakistan
• Message from Mr. Imran Khan Prime
Minister Islamic Republic of Pakistan
• The key element of independence
By Sirajuddin Aziz
• Pakistan fully capable of defending
territorial integrity: Alvi
By Iftikhar A. Khan
• PM Imran Khan reshuffles cabinet
once again
• An overview on Automobile Sector
of Pakistan
By Dr. Muhammad Nawaz Iqbal
MINISTER OF FINANCE
Shaukat Tarin
MINISTER OF SCIENCE
& TECHNOLOGY
Shibli Faraz
MINISTER OF ENERGY
Hammad Azhar
MINISTER OF INFORMATION
& BROADCASTING
Fawad Chaudhry
MG
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www.tradechronicle.com Vol. 68 Issue Nos. 3 & 4 Mar - Apr 2021 Rs. 250/-
TRADE CHRONICLE
PAKISTAN OLDEST MONTHLY MAGAZINE OF COMMERCE, TRADE, INDUSTRY & PUBLIC AFFAIRS
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CONTENTS
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editorial
• The automobile industry recovers from Covid impacts
editorial comments
• Pakistan’s cement industry expands its capacity
SPECIAL REPORT
23 rd March Pakistan day
• Message from Dr. Arif Alvi President Islamic Republic of Pakistan
• Message from Mr. Imran Khan Prime Minister Islamic Republic of Pakistan
• The key element of independence
By Sirajuddin Aziz
• Pakistan fully capable of defending territorial integrity: Alvi
By Iftikhar A. Khan
article & feature
• PM Imran Khan reshuffles cabinet once again
• An overview on Automobile Sector of Pakistan
By Dr. Muhammad Nawaz Iqbal
leather industry
• Pakistan’s leather industry exports continue to fall in 8MFY20
• Indian leather industry records fall in export during 9MFY21
• Archroma Pakistan wins Fire Safety Award
• Pakistan’s largest footwear exporter seeks public finance to expand tyre business
• Bangladesh leather industry submits budget proposal
ports & Shipping
• Maritime reforms underway
• Uzbekistan offered access to Pakistani ports
• Minister eyes Rs30bn from PR freight service
• Haleem applauds Chairman KPT initiatives in improving the port infrastructure
• PNSC plans to acquire Aframax tanker for expansion
• Engro Elengy Terminal sets new industry record
• PQA contracts to buy tug, pilot boats
• Warehousing solution: Retailo signs strategic partnership with Maersk
• Turkey pitches joint ventures in shipbuilding industry
• DP World Berbera reaches another milestone in development of Berbera port
• DP World celebrates milestone with completion of the first 10,000 moves of
BoxBay container high bay store system
regular features
• Automobile News, Banking & Insurance News, Cement Industry,
• People Events, Telecommunication News, Travel World, Steel & Allied Industry
TRADE CHRONICLE - Mar - Apr - 2021 - Page # 5
TRADE CHRONICLE
We begin with the name of Allah the Magnificient
The automobile industry recovers from Covid impacts
The Arif Habib Limited, AL Habib Capital Markets (Pvt) Ltd, Topline Securities
and other research houses have released a comprehensive and informative
research report/comments on the Pakistan Automobile sector’s growth. The
valued information dissemination is commendable and would be good sources
for investors, research workers, students, and all stakeholders. The research
reports on the automobile sector show that the industry is progressing well
after the negative shock of Coivd -19. The credit goes to the central bank
conducive policy and reduces mark up significantly, making several industries
expand on the back of demands.
FROM THE
EDITOR’S
DESK
ABDUL RAB SIDDIQI
The automobile industry becomes a backbone for Pakistan’s economy, and it
carries one of the highest weightage in the country’s large-scale manufacturing
sector after textiles, food & beverages. Its growth ultimately will reflect on the
GDP in days to come.
According to Director Topline Securities Mohammad Sohail, the robust
demand from consumers took auto-financing to a record high of Rs285 billion
during March, an increase of 30 per cent year-on-year or Rs66 billion. Quoting
the figures issued by the State Bank of Pakistan, he added that auto-financing
witnessed the highest monthly growth of Rs12 billion or 4.5pc month-onmonth
in March. The prime reason behind this increase in financing was lowinterest
rates at 7pc this year compared to 13.5pc in March 2020.
Analysts believe that Pakistan Automobile manufacturing companies likely to
remain in the limelight due to various factors, which include i) Cheaper autofinancing
rates and low-interest rate era, which is likely to keep volumetric
growth upbeat, ii) Revitalization of economic activity in full swing, which
will improve purchasing power parity of consumers and will directly impact
automobiles’ demand, iii) Higher inflows of dollars in terms of remittances,
also increasing consumer spending, iv) Stringent regulatory requirements
resulted in a slowdown in used car imports is which providing room to new
players and existing players, v) Overwhelming response on new models
(Toyota Yaris, KIA Picanto, KIA Sportage, KIA Sorento, Changan Alswin, MG
HS, Proton X70, Hyundai Elantra and Hyundai Tucson), vi) Increased spending
in rural areas, especially from the subsidized rate for farmers, elimination of
GST on tractors and the better yield on agricultural output, and vii) Electric
Vehicle policy could prove to be a game-changer for the automobiles sector
as this will attract new players to set up an automobile manufacturing plant in
Pakistan.
Another critical factor in catalyzing the sector’s growth is the final year of
Automotive Development Policy (2016-2021). It shows its full effects as new
and existing players are trying to make the most out of it. Experts believe the
launch of 15+ new cars is expected in CY21, together with the arrival of new
names in the automobile industry, which can become a crucial catalyst for
some companies and the demand for auto parts to increase drastically. We
hope the government would continue such policy in future, too, with the bit of
adjustment in duty structure on the automobile to bring down the cost of end
units.
One crucial point in local manufacturing is that the value-addition on imports
TRADE CHRONICLE - Mar - Apr - 2021 - Page # 6
TRADE CHRONICLE
associated with the auto sector
would remain negligible, and
‘localization levels’ remain
restricted to the number of parts
in a vehicle and not cost. This
must be taken care of to stop
the foreign exchange drain and
lowering the cost of production.
It is good that the government is
offering Electric Vehicle Policy
- Game Changer for the Sector
Globally automobile sector is
in a transformation phase from
hydrocarbon-based vehicles to
environmentally friendly vehicles
(hybrid and electric), and the
primary purpose of this policy
is to reduce carbon emission
to save the environment. On
the other hand, promoting
environmental-friendly vehicles
is expected to play a vital role
in curtailing oil imports (oil is
the largest import commodity
in Pakistan), increasing
foreign direct investment in
the automobile sector, new
employment opportunities,
increased awareness to save the
environment, the potential to lift
automobile sector by manifold,
and will improve the overall
socio-economic situation in the
country.
Editorial Comments
Pakistan’s cement industry expands its capacity
The Pakistan cement industry is
growing steadily on the back of
continued local demands backed
by government focus on the
construction industry and private
sector demand post-construction
amnesty and tax relief. The cement
manufacturers meet local needs
and export surplus quantity of
cement and clinker to Bangladesh,
Sri Lanka, Afghanistan, and other
overseas markets to increase its
utilization level and get valued
foreign exchange. The industry in
terms of profit has had a better year
from every perspective: demand,
retention prices, production costs
or financial costs. Gross margins
have re-entered the double-digit
zone while profit margins turned
green from a decided red this time
last year.
The related industries such as
Steel, PVC, Glass, Aluminum are
also benefitting parallel to the
cement industry. In the future, we
expect Pakistan International Bulk
Terminal (PIBTL) at Port Qasim
to achieve a utilization level of
over 95% in the next two years,
given the increased demand from
cement and power players. It is
no surprise for stakeholders that
most of the cement players have
announced an early expansion to
enhance their handling capacity
by c18.0Mn tons, given the upbeat
demand from the cement industry
in coming years.
A cursory looks at data released
by the Federal Bureau of Statistics
(FBS) for the July 2020-March
2021 and July 2020-February 2021
periods show diversified export
and local production trends.
Export volumes increased during
this period, but revenues remained
flat in dollar terms, reflecting a
weaker price market for cement
and clinker. However, local
output increased on intense local
demands, and extended capacity
came online last year.
As of June 2020, twenty-five
cement manufacturers from fifty
production lines have a production
capacity of 65.870 million tons of
clinker and 69.164 million tons of
cement in Pakistan.
According to a local research
house, another expansion in the
cement industry is in the pipeline,
which would jack up capacity by
18 million tons over the next two
years as demand expectations
come to a head. The credit
goes to central bank policy cut
from 13.25 percent to 7 percent
allowed financing costs to shrink
considerably as well — especially
for companies that were heavily
leveraged. Several companies
(DGKC, Kohat, Lucky, Maple Leaf,
Fauji and others) have announced
brownfield and greenfield
expansion projects, mainly in
Punjab. They are availing reduced
mark-ups under SBP’s Temporary
Economic Relief Facility (TERF)
that came in March last year. Other
companies may follow, which may
be a prime time to do so as Kibor
is still low, and capacity utilization
may peak soon, experts believe.
It is good to note that the federal
government has timely released
Rs500.94 billion (77.1 percent),
including Rs82 billion foreign
aid for various ongoing and new
development projects under
the Public Sector Development
Programme (PSDP) 2020-21
against the budgeted allocation
of Rs650 billion. We hope that the
government would also release the
balance amount out of funding for
the current fiscal year and allocate
sufficient financing on account of
PSDP in the next federal budget to
consolidate the cement industry
expansion program.
All Pakistan Cement Manufacturers
Association (APCMA) has raised
some concerns that power and
coal prices are consistently
increasing. Cement is an energyintensive
product and the industry
is finding it hard to operate due
to the continuous rise in major
input cost elements. The sector is
not demanding any special favour
but wants to be treated at par with
five exporting sectors. Besides,
import levies on coal have to be
rationalized as it is the primary
input of the cement sector; these
are valid concerns and should
be addressed. Last, we suggest
there should be a mechanism to
check and balance on the quality
and prices of cement and it should
be reachable for consumers to
sustain the growth in the cement
industry.
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PM Imran Khan reshuffles
cabinet once again
President Dr Arif Alvi administered
oath to the newly appointed Federal
Ministers Shaukat Fayyaz Tareen and
Senator Shibli Faraz at a ceremony
held in Aiwan-e-Sadr, Islamabad
recently.
Earlier, Prime Minister Imran Khan
appointed the former PPP senator
Shaukat Tareen as Finance Minister in
yet another cabinet reshuffle during the
third year of the PTI-led government.
Tarin had also served as Finance
Minister in Former Premier Yousaf
Raza Gilani’s cabinet from 2009 to
2010.
Tarin replaced PTI’s recently appointed
Finance Minister Hammad Azhar, who
has now been given the portfolio of
Energy. Before Hammad’s short stint,
PPP’s ex-financial czar Abdul Hafeez
Shaikh served as Finance Minister
before being unceremoniously sacked
last month and that too when the Prime
Minister had claimed the economy was
on course to recovery.
In other major changes, the Prime
Minister has swapped the portfolios
of Science and Information Ministries
between Fawad Chaudhry and Shibli
Faraz. Fawad has been appointed the
government’s spokesperson for the
second time.
Ministers’ new portfolios notified :-
Shibli, who served as the Information
Minister before his term as a Senator
ended in March, has been given the
portfolio of the Science and Technology
Ministry.
In addition, PM Khan has appointed
Khusro Bakhtiar the Industries and
Production Minister.
Meanwhile, Fawad Hussein Chaudhry,
Federal Minister for Science and
Technology, has been re-designated
as Federal Minister for Information and
Broadcasting.
According to a notification issued by
the Cabinet Division, portfolios of some
ministers have been changed.
Fawad Hussein Chaudhry has been
re-designated as Federal Minister for
Information and Broadcasting.
While Shaukat Fayyaz Ahmed
Tarin has been appointed as
Federal Minister for Finance
and Revenue and Senator
Shibli Faraz has also been
appointed as Federal Minister
for Science and Technology.
Federal Minister Khusro
Bakhtiyar has been redesignated
as Minister for
Industries and Production,
Muhammad Hammad Azhar,
Federal Minister for Industries
and Production, has been
relocated as Minister for
Energy. Federal Minister for
Power Division Omar Ayub
Khan has been re-designated
as Minister for Economic
Affairs, says the notification.
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TRADE CHRONICLE - Mar - Apr - 2021 - Page # 8
Message from Dr. Arif Alvi
President Islamic Republic of Pakistan
On this Pakistan Day, we pay homage
to the founding fathers of Pakistan
whose services and sacrifices led to
the creation of a separate homeland
for the Muslims of the sub-continent.
Today, we reaffirm our resolve to make
Pakistan an economically stronger and
prosperous country.
On this historic day, we vow to continue
our struggle to make our society
humane, inclusive and tolerant to other
minorities residing in Pakistan.
We also pledge to uphold democratic
values, rule of law and the Islamic way
of life in our country as envisioned by our
founding fathers. On this day, we must
also remember our Kashmiri brethren
who have been subjugated for over
seven decades by the Indian Security
Forces. They have been subjected to
the worst form of repression and statesponsored
terrorism.
We pledge our commitment to continue
to support Kashmiris in their just
23rd March, 1940 was a momentous
occasion when the Muslims of the
Sub-Continent decided to establish a
separate homeland to free themselves
from the shackles of oppression and
slavery of the hindutva mindset.
Today, we pay tribute to the Father of
the Nation and all the leaders of the
Independence Movement who united
Muslims of British India and struggled
for creation of a free and independent
Muslim State. The struggle culminated
in the emergence of Pakistan on the
map of the World on 14th August, 1947.
struggle for their
right to selfdetermination.
The world must
take notice of blatant human rights
violations being committed by India
in the Indian Illegally Occupied
Jammu and Kashmir. The key
to durable peace in South Asia
is resolution of the Jammu and
Kashmir dispute in accordance with
the relevant United Nations Security
Council Resolutions.
Today, we also salute our heroes,
particularly the health workers and
other concerned agencies, who
played a great role in containing
COVID-19 and providing health care
to the people in the hour of need.
We laud our health professionals for
their untiring efforts who selflessly
served the nation during the crisis. I
urge my fellow countrymen to follow
all SOPs concerning COVID-19 so
as to overcome the third wave of the
pandemic.
I am sure that with unity, faith and
discipline we can overcome any
Message from Mr. Imran Khan
Prime Minister Islamic Republic of Pakistan
overcome challenges of immense
magnitude in past through unity and
resilience. Today, we need to remain
strong to face the pandemic
that has engulfed the entire
World. InshaAllah, we will
succeed in these testing
times.
On this day, we also express
solidarity with the innocent
people of IIOJK who have
been subjected to worst
form of state oppression by
Indian security forces.
challenge that comes our way. May
Allah be with us all.
Pakistan Paindabad!
commitment to make Pakistan a
humane, progressive and prosperous
state akin to Riasat-e-Madina based on
rule of law, meritocracy, egalitarianism
and compassion. May Almighty Allah
grant us strength to remain steadfast
during all testing times.
While commemorating this day, we
need to adhere to the principles of
Unity, Faith and Discipline given by
Quid-e-Azam Muhammad Ali Jinnah.
Our vision is to transform Pakistan into
a truly democratic welfare State, on the
model of Riyasat-e-Madina.
Our great nation has successfully
We salute their courage
and will continue to support
them morally, politically
and diplomatically for
realization of their right to
self-determination under
relevant UNSC Resolutions.
Today, let us renew our
TRADE CHRONICLE - Mar - Apr - 2021 - Page # 9
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The key element of independence
By Sirajuddin Aziz
As the nation commemorates today
the historic passing of the Pakistan
Resolution of 1940 in Lahore, which
in practical terms triggered the
Pakistan Movement and brought
us independence, it is well worth
remembering that the independence
the Founding Fathers envisaged had
an inherent role for the corporate
sector to play to ensure the proposed
country`s independence in real terms.
An independent country ensures for its
citizens, among other things, freedom
from oppression, the right to make their
own decisions,
having a say, if
not controlling,
their own destiny,
and utilisation
of resources/
wealth for their
prosperity.
In short,
independence is
nothing without
economic
independence.
In undivided
I n d i a ,
entrepreneurs
serving the
masses and
leading the
economy from
the Hindu
community far
outnumbered
M u s l i m
businessmen.
Naturally,
things had to
change once the
Muslims of the subcontinent, under the
leadership of Quaid-iAzam Mohammad
Ali Jinnah, decided to get a country of
their own. But, historically speaking, the
Muslim community in the subcontinent
had not quite been business-savvy.
During the Mughal rule as well as in
the post-1857 era, Muslims, largely
speaking, remained averse to the
idea of making money, while the other
communities, especially the Hindus,
made major strides in this regard.
Muhammad Ali Jinnah knew that only
a separate homeland will give the
Muslims economic emancipation. We
have seen his vision
come true.
The country has grown
manifold since independence despite
a romance with various versions of
governance.
Our people are tech-savvy regardless
of the many obstacles in the way of free
and fair growth, including the denial of
equal opportunities, and, yet, we are
better off than an average Indian.
The financial industry, owned and
managed by Muslims got badgered
both in 1947 and then in 1971. And
it is in the context of 1971 that we
would try to see the national corporate
sector as March 23, 1940, which is
the day the Pakistan resolution was
passed, and March 26, 1971, which
is when the erstwhile East Pakistan
celebrates its own Independence
Day as Bangladesh, together signify
a landmark moment in the history
of Corporate Pakistan.It started its
journey of economic emancipation,
at least in terms of mindset, in March
1940, and then it underwent a second
major adjustment in March 1971 after
having undergone the first upheaval in
August 1947.
At the time of creation of Pakistan,
East Pakistan had 22 banks, registered
locally and West Pakistan had only
14 banks. According to the RBI rating
scale, the banks under the A-1 and
A-2 categories of West Pakistan were
Habib Bank and the Australasia Bank.
Habib Bank Limited was formed at
the request and direction of the Quaid
in Bombay in 1942. Post-partition it
moved its headquarter to Karachi,
again at the behest of the Quaid. Habib
Bank Limited had 31 branches spread
across the subcontinent of which only
nine were located in what constituted
Pakistan.
In East Pakistan, there was also
the historical
Faridpur Banking
Corporation,
founded as a
commercial
bank in 1870.
Ironically, The
Punjab National
Bank, which
was formed
in 1894 in the
city of Lahore,
moved to India
despite having a
79-branch strong
presence in West
Pakistan.
Between 1947
and 1971, many
large, medium
and smallsized
business
establishments
moved to East
Pakistan, where
comparatively
labour costs
were low.
East Bengal historically had a plantation
economy.
The Chittagong and Sylhet hill tracts
were home to the world`s largest tea
plantations. Besides, Muslims from
neighbouring Burmese and Assamese
territories, and some prominent
business families like the Ispahanis,
Adamjees, Saigols, etc. had initiated the
setting up of factories and industries.
The Adamjee Jute Mills was the largest
jute processing outfit. The oil refinery in
Chittagong and Karnaphuli Paper Mills
owned by the Dawoods were all lost out
to the separation of East Pakistan. And,
TRADE CHRONICLE - Mar - Apr - 2021 - Page # 10
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Pakistan received no compensation.
While there definitely was a case
of social, politico and economic
discrimination against East Pakistanis,
its magnitude was not as damaging as
was the perception that was created
globally; courtesy, the nexus between
the separatists and India.
To the disadvantage of Pakistan, which
was at the time being ruled by an
intoxicated junta, the Indians were able
to achieve great diplomatic successes
at the Capitol Hill, the White Hall, and
other significant world capitals, in
creating the exaggerated perception
that the action against a belligerent
political party was actually the carrying
out of some kind of `genocide`The
deployment of development resources
was always tilted in the favour of West
Pakistan.
The East Pakistanis always thought that
West Pakistan was prospering based
on the foreign exchange earnings of
East Pakistan`s exportable surpluses.
Jute purchase was disadvantageously
priced.
East Pakistanis believed that the West
Pakistanis were consuming not merely
their share of the bread, but were, in
fact, devouring the whole bread. Mujibur
Rahman is said to have stopped his
cavalcade while heading to Islamabad
to attend an All Parties Conference
(APC). He got out of the car and went
into prostration on the wide road.
Many wondered if he was praying
or was perhaps kissing the ground.
But when he got up, he said: `I was
smelling Jute! It was just a reflection
of how East Pakistan thought the West
Pakistan was progressing on the export
earnings from jute that was produced in
the eastern wing.
Match factories in the East Pakistan
were owned mostly by entrepreneurs
from the West. Following the attacks
upon their life and property by the Mukti
Bahini, who were being generously
aided by the Indians, they abandoned
their business and assets. They
took the first available flights to West
Pakistan.
An owner of two match factories and a
jute mill, known to this scribe personally,
traded his assets for air ticket for himself
and family to West Pakistan. He never
went back.
Between 1960 and 1965, the GDP
per capita was 4.4 per cent in West
Pakistan compared to a dis-mally low
2.6 per cent in East Pakistan. From
a high of almost 70 per cent of total
exports of Pakistan emanating from
East Pakistan in the mid-1960s, the
contribution declined to less than 50
per cent by the time of its separation in
1971.
East Pakistanis lamented about the
unjust distribution of the foreign aid, too.
Most were taken by Islamabad, they
argued. Towards the end of the 1960s,
there was growing realisation amongst
West Pakistani politicians and business
elite that the Bengali population,
although in the majority, was not getting
its fair share; so half-heartedly, there
was a move to pour development funds
into East Pakistan. As a gesture, Dhaka
TV was the second television station of
united Pakistan that became functional.
In 1971, besides the State Bank of
Pakistan, there were 10 West Pakistanheadquartered
banks compared to two
in based in East. The 10 banks had a
network of 920 branches, while the two
other banks had 155 branches in East
Pakistan.
The State Bank of Pakistan became
the Bangladesh Bank (Central Bank)
and the Pakistani banks were merged
without any compensation to their
owners with the local banks; some got
lumped with the existing institutions,
while others were merged into the
newly-formed ones.
The National Bank of Pakistan has today
become the Sonali Bank; the Habib
Bank is Agrani Bank, the United Bank is
Janata Bank; and the Australasia Bank
is now the Pubali Bank.
Pakistan at the time of partition was
short-changed and due to international
machinations of diabolical nature,
it suffered again when the majority
province seceded. Today`s Pakistan is
still a blessed land where people have
built factories, some within and many
without the ambit of either legality or
social acceptability.
The country saw capital concentration
and the emergence of the ill-famed 22
families during the 1960s. The industries
did provide employment opportunities,
but also became instruments of social
and labour exploitation. Consequent to
this, we have seen nationalisation and
then privatisation within three decades.
Politically speaking, we lost East
Pakistan due to ill-founded political
philosophy. In no way, Bangladesh`s
creation can ever be termed a negation
of the Two Nation Theory. Bangladesh
is an independent country; not a part of
India`s Hindutva politics.
All said and done, industries have
mushroomed, education is available,
and employment levels are decent.
There is no intent to spoil the mood of
the readers on this auspicious day by
recounting the many ills attending to
our political, legal, religious and social
setup.
There have been occasions when as a
nation we have confused the free with
the easy.
All other things in life are of the least
value against freedom, which is
precious. Freedom on a platter was
an impossibility, and Jinnah had it
for us with great faith, resolve and
determination.
Muslims, in India, just as they are
struggling today to find a voice in the
political, economic and social space,
would have been worse off, if we had no
Pakistan. And therein lies the biggest
lesson that we may learn from our own
history, taking March 23, 1940, as the
starting point. Economic independence
is what matters above every other
aspect of independence.
Today, there is a need to drive
our younger generation towards
entrepreneurship. And for this purpose,
entrepreneurship should be part
and parcel of our education system,
enabling us to grow our economy.
Independence and economic
performance are linked with each other.
Political independence is meaningless
without economic independence. It
is important to create an enabling
environment for economic activities to
flourish, strengthening its processes to
achieve economic stability and growth.
In a manner of speaking, every
individual in Corporate Pakistan is a
frontline soldier ensuring the economic
independence of the motherland. Do
we, in the corporate sector, realise this?
Courtesy (DAWN)
TRADE CHRONICLE - Mar - Apr - 2021 - Page # 11
TRADE CHRONICLE
Pakistan fully capable of defending
territorial integrity: Alvi
By Iftikhar A. Khan
Warning that any misadventure will
evoke a telling response, President
Dr Arif Alvi has said Pakistan is fully
capable of defending its territorial
integrity and sovereignty.
`We will defend our independence at
all costs,` he said while speaking at
a spectacular military parade held as
part of Pakistan Day celebrations at
Parade Ground near Shakarparian hills
in Islamabad.
The president, however, said that
Pakistan desired peace, security and
development in the whole region and
had taken practical steps in pursuit
of this. Peaceful coexistence was the
cornerstone of Pakistan`s foreign
policy, he said, adding that the current
situation required the South Asian
are our pride, he said.
About the situation in
India-held Kashmir, he
said the whole nation
stood by their Kashmiri
brothers and sisters in this hour of trial.
He urged the international community
to take notice of the grim situation in the
occupied valley. Reiterating Pakistan`s
support for the people living in Indianheld
Kashmir, he said the country `will
not abandonthem`.
`Quaid-i-Azam [Mohammad Ali Jinnah]
had said Kashmir is Pakistan`s jugular
vein. We are raising the issue of
Kashmir and will continue to do so,` he
said.
The president said Pakistan Day
`reiterates the separate identity of the
Muslims of sub-continent.
`Although Pakistan started as a weak
state, we have now progressedwell and
become a strong country selfsuf ficient
a lot for peace in Afghanistan and it has
always supported such efforts, adding:
`The world has acknowledged Pakistan
in this regard.
The president said Pakistan had good
relations with Saudi Arabia, Turkey
and the Gulf states, and called for
strengthening the Organisation of
Islamic Countries (OIC) to fight the
rising wave of Islamophobia.
He recalled Islamabad`s efforts in this
regard and said: `We will continueto
play our role.
President Arif Alvi attended the parade
as the chief guest, while Defence
Minister Pervez Khattak, Chairman
Joint Chiefs of Staff Committee General
Nadeem Raza, Chief of the Army Staf f
General Qamar Javed Bajwa, Chief of
the Air Staff Air Marshal Zaheer Ahmad
Babar Sidhu and Chief of the Naval
Staff Admiral Amjad Khan Niazi were
also present.
leadership to reject the politics of hate,
prejudice and religious extremism.
`Pakistan wants to move forward with
good intent and peace, but our desire
for peace should not be construed as
our weakness,` he said.
President Alvi said that Pakistan wanted
peace and progress not only foritself,
but for the entire region. `Unfortunately,
the situation in South Asia and the
wider region has been poor due to
conspiracies, hate, terrorism and
bilateral disputes,` he regretted. He
advised the leaders of the region to
put an end to politics, built around hate
and religious extremism, for a peaceful
future.
President Alvi paid tribute to the
country`s armed forces, stating that
the whole country stood shoulder
to shoulder with them in the face of
foreign aggression and on national
issues. `Our martyrs and our ghazis
in its defence,` he noted.
President Alvi praised the armed forces
for their services to the nation, be it on
matters of security or in response to
natural disasters.
He commended the armed forces for
eliminating terrorism from the country
and for their efforts in combatting the
Covid-19 pandemic.
`Pakistan`s battle against the Covid19
pandemic, despite its meagre
resources, is a lesson for the world,` he
said. President Alvi hailed Pakistan`s
friendship with China, saying `China is
Pakistan`s true friend and the bilateral
relationship between the two countries
is strengthening in all spheres, including
defence and security`.
`Pakistan is extremely grateful to the
government and people of China for
their gift of coronavirus vaccines,` he
added. He said Pakistan had sacrificed
The ceremony kicked off with
flypastbyPakistanAirForceandPakistan
Navy fighter jets, led by Air Chief
Zaheer Ahmad Babar Sidhu, which
saluted the president.
F-16, JF-17, Mirage, AWACs, P-3C
Orion and ATR aircraft participated in
the fly-past.
The parade also showcased local
cultures of the four provinces as floats
from Sindh, Punjab, Balochistan,
Khyber Pakhtunkhwa, Gilgit-Baltistan,
and Azad Kashmir were featured during
the ceremony.
Contingents of Pakistan Army, Pakistan
Navy, Pakistan Air Force,Special
Services Groups, Frontier Corps,
Rangers, Islamabad Police, Frontier
Constabulary, Airport Security Force
and Boys Scouts marched past the dais
while saluting the chief guest.
Courtesy (DAWN)
TRADE CHRONICLE - Mar - Apr - 2021 - Page # 12
Automobile News
An overview on Automobile
Sector of Pakistan
By Dr. Muhammad Nawaz Iqbal
Pakistan as of now has a critical market
for hybrid vehicles with Honda’s Vezel
and Freed, Toyota’s Prius and Aqua.
Nonetheless, these vehicles aren’t in
effect privately fabricated in Pakistan,
yet are straightforwardly imported from
Japan.
Pakistan as of now has a huge market
for half breed vehicles with Honda’s
Vezel, Toyota’s Prius and Aqua, and
different models seen on the streets.
The Automotive Development Policy
(2016–2021) and the initiative of
China-Pakistan Economic Corridor
(CPEC) are empowering unfamiliar
ventures for the new vehicle brands
to enter Pakistani market, while the
main producers in the car business in
Pakistan are keen on presenting EV
models with a wide scope of costs
which target shoppers of assorted pay
gatherings.
The business of electric vehicles
faces genuine difficulties in Pakistan.
The serious issue is the absence of
mindfulness among basic vehicle
purchasers about the upsides of EVs
over the ignition motor vehicles. The
setback of power and absence of
charging foundation are the significant
reasons why electric vehicles aren’t
considered by people in general.
Charging time needed by the electric
vehicles and the driving reach
that they offer are viewed as the
negative factors that deter the
nearby shoppers from purchasing
EVs.
The Automobile business in Pakistan
is the one of the quickest developing
sector of the country, representing 4%
of Pakistan’s GDP and utilizing a labor
force of over 1.8 million individuals.
As of now, there are 3,200 car
fabricating plants in the country, with
a speculation of ₨92 billion (US$570
million) delivering 1.8 million cruisers
and 200,000 vehicles every year. Its
commitment to the public exchequer
is almost ₨50 billion (US$310 million).
The area, overall, gives work to 3.5
million individuals and assumes a vital
part in advancing the development of
the seller business. Pakistan’s auto
market is considered among the littlest,
however quickest developing in Asia.
More than 180,000 vehicles were
sold in the financial year 2014–15,
ascending to 206,777 units monetary
year 2015–16. From 2001 to 2007, little
constructing agents and many bicycle
merchants began collecting imitations
of the Honda CD70 with Chinese joint
effort and set up there Association with
Founder Chairman of Mr. Muhammad
Sabir Shaikh, Association of Pakistan
Motorcycle Assemblers APMA in 2002,
after 2003 yearly creation of cruisers
continued expanding, with vehicle deals
making records quite a long time after
year, arriving at a pinnacle of 195,688
deals in 2007, during this period Afzal
Motors started neighborhood gathering
of Daewoo transports and trucks under
permit from Daewoo Bus, South Korea
and Tata Daewoo, on account of rising
vehicle financing up to 70–80% by
banks and low loan costs combined
with rising rustic buys. As of now,
there are 10 vehicles for each 1,000
individuals in Pakistan.
This is perhaps the most reduced
proportion among arising economies,
which itself talks about high capability
of development. Rising per capita pay
with changing segment dispersion and
an expected flood of 30 to 40 million
youngsters in the monetarily dynamic
labor force in the following decade will
give an improvement to the business
to extend and develop. Toyota began
neighborhood gathering of its car
Corolla. Likewise, United Motors turned
over first Pakistani privately made
vehicle Ghandhara Nissan began
creation of Isuzu d-max in Pakistan.
The Automotive Development Policy
2016–2021 and the dispatch of China-
Pakistan Economic Corridor (CPEC)
have been empowering unfamiliar
ventures for the new vehicle brands to
enter Pakistani market.
In the financial plan 2018–19, The
public authority had given exceptions
of 16% traditions obligation on charging
stations of electric vehicles, decrease
of customs obligation from 50% to
25 percent and an exclusion of
15% administrative obligation
(RD) on electric vehicles. The
public authority had additionally
diminished traditions obligation on
units of electric vehicles from 50%
to 10 percent.
TRADE CHRONICLE - Mar - Apr - 2021 - Page # 13
On 5 November 2019, Pakistan’s
government bureau had endorsed
the principal ever public Electric
Vehicles (EV) strategy in a bid to
handle impacts of environmental
change and offer reasonable
vehicle. In the primary stage,
the public authority will zero in
on changing over 30% of the
complete number of vehicles,
mostly vehicles and carts, into
EVs by 2030.
TRADE CHRONICLE
IMC posts highest-ever
production, sale volumes
Indus Motor Company (IMC) has made
the highest-ever production and sales
volumes, historically in March 2021.
Following the ease in the COVID-19
lockdown, the economic activities
began to normalize and the automobile
industry has experienced an increase
Indus Motor Awarded 1stPrize by Global
Compact Network Pakistan
Indus Motor Company (IMC) won
the top position at ‘Living the Global
Compact Best Practices Sustainability
Awards 2020’ hosted by the UN Global
Compact Network Pakistan. This is the
sixth year in a row that IMC has won this
award in recognition of its integrating
the 10 Principles of United Nations
Global Compact and for embracing the
UN Sustainable Development Goals
In March 2021, Auto industry sales
surged to a 24mth high, crossing the
20,000 units level to 20,813 units (up
27% mom). This is largely attributed
to the smoothening of supply-chain
disruptions, leading to an uptick in car
deliveries, in our view. While PSMC
added most units to total industry
sales, INDU showed the highest mom
growth in sales.
Among INDU models, Yaris volumes
rose by 29% mom, but sales of the
remaining premium models rose by
an average 86% mom. We believe
that the ramping up of production
during 3QFY21 has led to such a
sharp improvement. Notably, INDU has
achieved the highest level of production
since March 1993. HCAR sold c.3,150
units in March, with combined sales of
Civic and City of 2,603 units, up 19%
mom. BR-V sales witnessed a sharp
2.3x mom rise to 550 units. Sales
have been upbeat despite the delay in
in demand. The consumer purchasing
power was revitalized, and a reduction
in interest rates led to increase in
auto financing and demand that has
required local automotive companies to
vigorously manage their manufacturing
operations to overcome problems
in inbound international logistics
operations.
CEO IMC, Ali Asghar Jamali, stated, “We
are overjoyed and thank the Almighty
for this remarkable achievement. IMC
has remained focused on improving
its operational efficiencies, maintaining
high quality standards, effectively
managing cost pressures and delivering
maximum value to its customers. We
have been operating on double shifts
basis, all Saturdays as well as working
extended hours. These measures have
in its business
operations.
“We’re privileged
to have been
honoured with this top award. It not
only acknowledges IMC’s commitment
towards strategic and sustainable
CSR, but also appreciates its efforts
in reporting globally the practical
implementation of all the SDGs through
its various CSR projects.The Global
Compact Network Pakistan is playing a
critical role in creating awareness and
Pakistan autos industry sales crossed the
20,000 units mark for the first time in two years
anticipated
launch
of a new
City model.
PSMC’s Alto sales rose 12% mom
to 4,745 units (highest monthly sales
since Sep 2019), while the sales of
Wagon R rose by a sharp 55% mom.
Cultus and Bolan sales increased by
an average 10% mom, where only
Ravi sales declined mom. We expect
PSMC sales to continue the present
momentum in the remainder of CY21,
where the impact of new competition is
likely to remain moderate, in our view.
Sales of Hyundai clocked in at 677
units in March (up a soft 4% mom), led
by 12% mom rise in Tucson sales to
613 units. Sales of the H-100 Porter,
however, declined by 39% mom to 64
units. Volumes of the recently launched
sedan Elantra clocked in at 46 units
in its first month of sales (though 248
units were produced). Tractor industry
recorded sales of 5.531 units, up 24%
mom. AGTL sales rose 40% mom to
2,012 units (low base), while that of
MTL rose 17% mom to 3,519 units.
been taken with the view to increase
supply and timely meet our delivery
commitments, while strictly following
the SOPs put in place by the authorities.
I would like to acknowledge the
tremendous and dedicated efforts of my
entire team at IMC, our extended family
of Dealers and vendors and of course
our business partners for making this
possible.”
He further added, “The economic upturn
following the despair soaring over the
auto industry during the COVID-19,
owes itself to the Government’s
introduction of favorable policies.
Reduction in interest rates has been
a major factor that led to an increase
in auto financing, bolstering consumer
confidence.”
helping to develop the social outlook
of businesses in the country which is
commendable”, said CEO Indus Motor,
Ali Asghar Jamali.
We expect tractor sales to resume the
uptrend in the coming months as farmer
income continues to expand. MTL sales
may also benefit from an increase in
exports. March witnessed a rebound
in sales following a seasonal decline
in February. We highlight that industry
sales averaged c.12,000 units prior
to the pandemic, so present growth is
not just attributed to a low-base effect
(Covid-19 lockdown was imposed in
late March 2020).
Low interest rates and new models
from both new entrants and incumbent
OEMs will maintain the robust demand
for cars, in our view. However, the
impact of the present disruption in global
supplies of semiconductor chips may
come into play in the coming months
(presently, it is still uncertain as to what
extent local OEMs will be affected). We
have an Overweight stance on both
the Auto and Tractor OEMs, with Buy
rating on all the scrips under coverage.
We prefer INDU (TP of PKR1,458/sh),
and PSMC (TP of PKR330/sh), as our
top picks.
Courtesy – Intermarket Securities Limited.
TRADE CHRONICLE - Mar - Apr - 2021 - Page # 14
Leather Industry
Indian leather industry
records fall in export
during 9MFY21
The Indian leather
industry has recorded
a fall of 34.15% in
earning of export
revenue during the
first nine months of
the ongoing fiscal
year April to Dec 2020 to $ 2.599 billion
as against the earning of $ 3.948 billion
in April-Dec 2019. However, in rupee
terms, the export touched INR 194.143
billion in April-December 2020 as
against INR 278.056.32 billion in April-
December 2019, registering a decline
of 30.18%.
According to the country’s Council
for Leather Exports (CLE), finished
leather exports fell in value by 36.45%
to $263.379 million from US$ 414.41
million, leather footwear by 35.39%
to the US $1028.32 million from US$
1591.71 million and leather garments
by 32.13 % to $ 231.59 million from
US$ 341.24 million during this period.
The leather goods export also
decreased by 36.35% US$ 673.63
from US$ 1058.30 million during this
export period.
But on a positive note, Saddlery and
Harness export rose to US$ 125.65
million from US$ 115.56 million,
reflecting a growth of 8.73%.
Archroma Pakistan wins
Fire Safety Award
Archroma, a global leader in speciality
chemicals towards sustainable
solutions, announced that it had won
the Fire Safety Award in a nationwide
contest organized by the Fire & Safety
Association of Pakistan in collaboration
with the National Forum for
Environment & Health. The award was
received by Qazi Naeemuddin, Head
of Operations in the Jamshoro site of
Archroma. The award is recognition
of continuous efforts on fire safety at
the Archroma’s site of Jamshoro and
Landhi and their offices in Korangi and
Karachi. Regular training sessions are
organized to implement fire emergency
Pakistan’s leather industry exports
continue to fall in 8MFY20
Pakistan leather industry earns export
revenue of US$ 66.800 million during
February 2021 compared to US$
71.493 million in the previous month,
translating to a fall of 6.56 percent on
an MoM basis. The finished leather
export stands at US$ 12.493 million,
leather manufacturing at US$ 41.569
million and footwear at US$ 12.738
million against US$ 12.831 million,
US$ 48.166 million and US$ 10.496
million, respectively, during this period.
This export trend represents a fall of
2.63 percent in finish leather and 13.70
percent in leather manufacturing during
this period. Still, the export of footwear
increased by 21.36 percent in the same
period.
On a cumulative basis, 8MFY21
Pakistan leather industry export
proceeds during the first eight months
of July – Feb 2021 reduced by 4.22 per
cent to US$ 567.458 million against
US$ 592.511 million, earned in the
eight months of last fiscal year July
–Feb 20, says data released by the
Federal Bureau of Statistics (FBS).
The breakdown of export shows that
tanners have earned US$97.432 million
on the export of 6.820 million sqm of
finished leather between the periods of
July – Feb 2021 as compared to US$
plans, mock exercises for quick-fire
control and rescue operations, and first
aid. “We highly appreciate the services
of organizations wherein fire safety
laws and regulations are accurately
implemented. They are pioneers
ineffective implementation of safety
awareness amongst their employees
and society.” Mr Nasir Hussain Shah,
the provincial Minister, said in his
keynote speech.
“We follow a ‘Safety First’ principles at
Archroma and make no compromise
when it comes to safety. This is why our
best practices are recognized year after
year at this forum. Our safety model is
an integral part of sustainable business
initiatives in line with the principles of
136.826 million on
the export of 12.3943
million sqm in similar
eight months in a yearago
period. The export figure translates
that tanned leather exports fell by 44.97
per cent in terms of quantity and 28.79
per cent in terms of dollars respectively
during this export period.
Similarly,
t h e
footwear
exports
recorded
a fall of
6.18 per
cent in
terms
of value
between
J u l y
and Feb
2020-21. During this period, footwear
export reached US$88.012 million
by exporting 11.555 million pairs as
against US$ 93.813 million for 8.951
million pairs, shipped in the same eight
months of the previous fiscal year.
However, the quantity rose by 11.67
per cent during this exporting period.
On positive development, the export
of leather manufacturing, including the
export of garments and leather gloves,
increased to US$ 382.014 million from
US$ 361.872 million during this period.
This export represents a rise of 5.57
per cent on a YoY basis.
Qazi Naeemuddin holding the Fire Safety Award
handed out by the Fire & Safety Association of
Pakistan in collaboration with the National Forum
for Environment & Health.
“The Archroma Way to a Sustainable
World: Safe, efficient, enhanced, it’s
our nature”, and we will continue to
strive for higher standards in the years
to come,” commented Mujtaba Rahim,
CEO of Archroma Pakistan.
TRADE CHRONICLE - Mar - Apr - 2021 - Page # 15
TRADE CHRONICLE
Pakistan’s largest footwear exporter seeks
public finance to expand tyre business
Service Global Footwear Limited
(SGFL) has appointed Arif Habib
Limited as the lead manager and book
runner for its Initial Public Offering
(IPO) of 40.89 million ordinary shares,
representing 20 percent of the post-
IPO paid-up capital at a floor price of Rs
38.0 per share.
As many as
40,887,500
shares would be
offered through
book building
process at floor
price of Rs 38.0
per share and
maximum price
would be Rs 53.2
per share.
SGFL is a footwear manufacturing and
selling company which was operating as
an integrated unit of Service Industries
Limited since 1988; it was demerged in
2019 into a separate entity.
SGFL is the largest footwear exporter
of Pakistan since the last decade;
Bangladesh leather industry
submits budget proposal
Bangladesh leather sector has sought
government approval for the provision
of some incentives in the upcoming
budget for 2021-22 to arrest the
declining trend in exports due to the
third wave of Covid -19.
The Bangladesh Tanners Association
(BTA) sought tax benefit on the import
of chemicals, needed for processing
rawhides. Currently, customs duty
(CD) and value-added tax (VAT) on
the import of chemicals is 5.0 per
cent and 15 per cent respectively. The
BTA proposed to bring those down to
3.0 per cent and 7.5 per cent
respectively to facilitate the nonbonded
tanners. The association
also sought permission to
import industrial salt during
peak season, as they needed a
large amount of salt to preserve
rawhides.
Similarly, the Leather Goods
and Footwear Manufacturers
and Exporters Association of
Bangladesh (LFMEAB) sought a
in last two
years, it has
accounted for
over 40 percent
of the total leather footwear exports of
the country. SGFL exports more than
95 percent of its total production; in
CY2020, it exported footwear to 20+
countries over 5 continents.
The Company
supplies footwear
to global brands
like Zara,
Caprice, Diana
Ferrari, Dockers,
Jack and Jones,
London Rebel,
etc.
The principal
purpose of the
issue is to invest
the amount raised as an equity in
Service Long March Tyres Limited
(SLM) and become a stakeholder of
approximately 18.91 percent of the total
shareholding of SLM. SLM is the first all
steel radial truck and bus (TBR) Tyre
manufacturing unit in Pakistan, being
setup through a JV between Servis
Group and Chaoyang Long March of
China.
reduction of the source tax on export
earnings to 0.25 per cent from the
current 0.50 per cent to offset their
Covid-induced export loss. They also
proposed to reinstate the source tax on
export subsidy to 3.0 per cent from the
existing 10 per cent, imposed in the last
budget.
Separately, the Bangladesh leather
industry during the first eight months
of the financial year 2020-21 (July –
Feb 2021) has earned export revenue
of US $605.67 million as compared
to US$ 631.89 million earned in the
same months of the previous year.
It translates a single-digit fall of 4.15
per cent on a YoY basis, says the
Bangladesh Export Promotion Bureau
Omar Saeed is the
CEO of Service
LongMarch Tyres
Limited, and also
a Group Director
of Service Group.
He has formerly led
Service Industries
Limited (SIL) from
2011-2019, and
also ran Service Sales Corporation and
grew it to become the largest retailer in
the country.
Over the years Omar has served on the
boards of multiple public companies
and currently sits on the Board of
Systems Limited. He has also founded
multiple technology companies
including Ovex Technologies and
JOMO Technologies. Omar has a keen
interest in philanthropic work and leads
Servis Foundation as its CEO. Servis
Foundation has been developing
hospitals and schools in multiple cities
all over the country.
Omar did his high school from Aitchison
College, his undergraduate degree
from Brown University and his MBA
from Harvard Business School.
(EPB).
Profile of Omar Saeed
The break down shows that Bangladesh
bagged US$ 73.40 million on exports of
finished leather in the first eight months
of the current financial year compared
to US$ 84.24 million in July – Feb 2020.
It shows a contract of 12.87 per cent.
The exports of leather products have
also contracted to US$ 154.94 million
from the US $ 171.06 million of the
same eight months of last year. It
translates to a decline of 9.42 per cent
on a YoY basis.
However, on a slightly positive note, the
leather footwear exports saw a minor
improvement of 0.20 per cent to the
US $ 377.34 million from US$
376.60 million during this export
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.
TRADE CHRONICLE - Mar - Apr - 2021 - Page # 16
Ports, Shipping & railway
Uzbekistan offered access
to Pakistani ports
Prime Minister Imran Khan has assured
Uzbekistan of complete facilitation in
access to Pakistani ports. Mr Khan held
out the assurance during a meeting
with Uzbekistan`s Foreign Minister Dr
Abdulaziz Kamilov, who was
on a twoday visit to Pakistan.
Mr Khan, according to a
statement issued by the
Prime Minister Office after the
meeting, said that Pakistan`s
Karachi and Gwadar ports
could become `the gateway to
the landlocked Central Asia as
Pakistan provided the Central
Asian Republics the shortest
Maritime reforms underway
Reforms are well on the way and the
Ministry of Maritime Affairs will achieve
its targets soon, a government official
said recently. Talking at the Lahore
Chamber of Commerce and Industry
(LCCI), federal Minister for Maritime
Affairs Ali Zaidi said that powers were
shifted to the provinces after the 18th
Amendment, which has created several
issues.
Fisheries is the third largest trade in
the world, but Pakistan’s exports are
negligible, despite having all resources,
he said, adding that the Sindh Fisheries
Department has given land at Karachi
Minister eyes Rs30bn from
PR freight service
Railways
Minister Azam
Swati recently
assigned
the Pakistan
Railways (PR)
an annual
earning target of
Rs30 billion from
its freight service
and asked
the officials
concerned to submit within three
months a blueprint to achieve the
target. Addressing a news conference,
Mr Swati said the target is not only
achievable but the department could
route to international seas`.
Pakistan, he said, would facilitate
Uzbekistan`s access to its ports.
Uzbekistan, which currently relies
on Iranian seaport of Bandar Abbas
for external trade, is exploring other
options and is prioritising Pakistani
ports because of short distance, being
Port Trust on lease and the fisheries
sector is being neglected.
Zaidi said that the Federal Board of
Revenue (FBR) is collecting 90 percent
revenue from ports. The ministry is
connected with all other ministries, as
most of the trading goods are being
handled through ports. Pakistan has a
single terminal to handle coal, he said,
adding that the terminal of Pakistan
Steel Mills is out of order for long.
The price of containers increased due
to growing demand. Negotiations on
Port Qasim agreements are well on
the way, the minister said, adding that
such policies are being formed that can
potentially reach Rs40bn.
The PR has suffered a loss of Rs2.9bn
over the past 10 months. The minister
while explaining the loss disclosed
that an attempt had been made for the
collapse of railways. Distribution valves
from 220 new freight wagons were
stolen, he said, adding that each of the
equipment cost Rs300,000 and the net
loss was Rs800 million. Those found
responsible would be taken to task, he
said.
According to Mr Swati, the PR used to
earn Rs50,000 per day from each of
the grounded freight wagons, and the
total loss worked out to be Rs2.9hn.
The railways minister blamed the
management of Pakistan State Oil
more economical and due to some
political considerations.
Uzbekistan is working with Pakistan
on the development of two options the
first is the Trans-Afghan railway project
while the second is the road route via
China.
Pakistan, Afghanistan and
Uzbekistan had in Tashkent
in February signed a roadmap
for the construction of almost
600km of Mazar-i-Sharif-
Kabul-Peshawar railway line.
The project, which is expected
to take five years for completion
at an estimated cost of $4.8
billion, enjoys the backing of
international lending agencies,
including the World Bank.
be followed by the
people to come.
LCCI President
Mian Tariq
Misbah said that
the violation of
manifestation
by shipping
companies
resulted in delays
and extra demurrage and warfare
charges for the businesses. He also
demanded rationalisation of terminal
handling charges, port storage charges,
and container detention charges, which
have been increased excessively in
recent times.
(PSO) for not using the freight train
service of railways for transportation
of petroleum products. At present,
2,000 wagons are readily available
to transport oil from Attock Oil up to
Mardan, he said.
Mr Swati said as a result of his
intervention, the PSO chairman has
issued directives for using the railways
freight service for transportation of oil.
This measure would enable the PR to
earn a profit of Rs3bn, he said. He said
the Ministry of Railways has signed a
memorandum of understanding with the
Frontier Works Organisation (FWO),
the military engineering organisation
and one of the major science and
technology commands of Pakistan
Army, to undertake projects of the PR.
TRADE CHRONICLE - Mar - Apr - 2021 - Page # 17
TRADE CHRONICLE
Haleem applauds Chairman KPT initiatives
in improving the port infrastructure
Karachi Port Trust (KPT) management
has taken desired steps to improve and
modernize the port’s infrastructure, viz
berths & main gate repairing, dredging,
and other facilities for workers.
President of Pakistan Stevedores
Conference Tariq Haleem has
applauded the proactive role of
Chairman Karachi Port Trust (KPT)
for improving the port’s much need
infrastructure. He said that since the
present Chairman, Mr Nadir Mumtaz
Warraich of KPT, is a highly proactive
leader and pays attention to ground
realities – the port gives a new look.
He added that infrastructure like Berth
No. 4, which needed repairs for years,
has been finally repaired. Besides,
badly damaged roads in the port are
re-carpeted.
The dredging of the port initiated
to maintain the see draft level, he
pointed out. After many years, proper
bathroom facilities and drinking water
will be available for port workers, other
PNSC plans to acquire Aframax
tanker for expansion
Pakistan National Shipping Corporation
(PNSC) has planned to acquire a used
AFRAMAX tanker, with a deadweight
of 10,5000 tons, to expand its customer
base in the tanker segment. PNSC has
already invited bids from international
suppliers in this regard, and the
corporation expects the delivery by the
third quarter of 2021-22.
According to PNSC’s procurement
commendable
s p e c i a l
arrangements.
The important CL gate bridge at
East Wharf is finally being repaired
and will be fully functional soon. The
port’s efficiency has been linked to
infrastructure conditions and proactive
Tariq
Haleem
Nadir Mumtaz
Warraich
management, and these initiatives
would make the port most attractive.
Haleem has suggested that Karachi
Port Trust’s untapped potential
(Pakistan’s premier port) needs to
be urgently exploited. This would be
the right step forward to improve the
infrastructure of the port further.
plan, the corporation also
intends to acquire two pilot
boats and three LNG compatible
tug boats. Presently, PNSC has
six tankers including Khairpur, Bolan,
Quetta, Lahore, Karachi and Shalamar.
The Corporation also has five bulk
carriers including Chitral, Malakand,
Hyderabad, Sibi and Multan.
According to PNSC’s last financial
report, the tanker market has continued
to face challenges from the disruption
caused by Covid-19. Oil demand
Tariq Haleem said that we need to
improve the turnaround time of the
ships calling at Karachi Port.
He said that free movement of transport
is essential for quick discharging /
loading of cargoes, for this backup area
at the berths is extremely important.
One of the reasons for low performance
is the extreme shortage of space at
Karachi Port, which is very surprising,
considering that Karachi Port is one of
the biggest landowners of Karachi City,
he added.
Tariq Haleem said that we now expect
the proactive Chairman, Mr Nadir
Mumtaz Warraich, who has an opendoor
policy, to look into this matter and
make sure that KPT land is reclaimed
and made available for cargo handling
purposes. This will also increase cargo
volumes and a substantial rise in CFS
operations.
Tariq Haleem said our members
had invested billions of rupees in
Stevedoring equipment at Karachi
Port. ‘If’ Chairman KPT gives us more
space in the port, we will increase our
investments/equipment accordingly.
remains under pressure, where
renewed ‘lockdowns’ amidst ‘second
wave’ of Covid-19 have constrained
progress towards economic recovery.
The seaborne crude trade is estimated
to have declined by 6.6 percent in
2020, with products trade falling by
9.0 percent, owing to sharply lower
oil demand. In second half of 2021,
seaborne oil trade is expected to pick
up following the severe disruption this
year and initial projections suggest that
crude trade may increase up to 5.9
percent, and the products trade by 6.4
percent.
TRADE CHRONICLE - Mar - Apr - 2021 - Page # 18
In general, the anticipated gradual
improvement in global oil demand in
second half of calendar year 2021
is expected to support increase in
oil trade. However, with challenges
remaining from high oil inventories and
the unwinding of floating storage, it may
not be until later in 2021 that significant
market improvement materialises. In
view of the aforesaid circumstances,
PNSC is adopting a proactive approach,
exercising caution and expanding its
customer base in the tanker segment
to mitigate any potential damage.
TRADE CHRONICLE
PQA contracts to buy tug,
pilot boats
Port Qasim Authority (PQA) has signed
two historic contracts with M/S Sanmar
Shipyards, Turkey for procurement of
four ASD Tugs (LNG compatible) and
two pilot boats for $33.46 million. The
crafts would be delivered within 12
months, a statement said.
“Sanmar is the leading shipyard of
Turkey. This will be a significant step
forward in brotherly relations between
both the nations,” a statement said.
Warehousing solution: Retailo signs
strategic partnership with Maersk
Retailo, the fastest growing B2B
e-commerce platform in the MENAP
region, partners with Maersk, a global
integrator of container logistics, for
warehousing services in Pakistan.
Through this regional partnership,
Retailo will be able to rely on Maersk
for its ever-expanding business needs
by getting access to purpose-built
warehouses and expand the scale of
Turkey pitches joint ventures
in shipbuilding industry
Turkey expressed interest in exploring
joint-venture opportunities in Pakistan’s
shipbuilding industry and maritime
businesses. Ihsan Mustafa Yurdakul,
ambassador of Turkey advised
collaboration in blue economy during
a virtual meeting with Pakistani
businessmen. Consul General of
Pakistan in Istanbul Bilal Pasha,
Commercial Counselor of Turkey
Demir Ahmet Sakin and Commercial
Attache of Turkey in Karachi Eyyup
Yildirin made a detail presentation to
highlight the business and investment
opportunities in food, beverages,
medical equipment and construction
sector.
The meeting was followed by businessto-business
networking session that
was attended by more than 135
Federal Minister for Maritime Affairs
Syed Ali Haider Zaidi and Turkish
its business.
Maersk, as a part
of its integrated
logistics solutions, has been offering
its customers with services that
cover their entire supply chain needs
including landside transportation,
warehousing, customs clearances,
ocean shipping, technology and other
customised offerings at origin and
destination. Expanding its footprint to
serve customers better specifically in
the warehousing landscape, Maersk
is creating a dedicated warehouse
solution for Retailo in Karachi.
The partnership with Maersk will help
Retailo manage their large inventories
as per specific requirements.
Retailo co-founder Wahaj Ahmed
commented on the exciting
developments, “As Retailo’s business
and reach grows, the storage, inbound
Pakistani and Turkish companies
representing food, beverages,
construction, construction
material, medical equipment and
their technologies and directors and
members of Pakistan-Turkey joint
business councils. Nasser Hyatt
Maggo, president of the Federation
of Pakistan Chambers of Commerce
and Industry underlined the need of
harmonisation of standards so that the
trade via third country could be reduced.
Ahmet Cengiz Özdemir, chairperson
of Turkey-Pakistan Business Council
underlined the need of enhancement
of trade, collaboration in transportation
corridor and diversification of relations
in various field. He also highlighted
the opportunities in energy, CPEC,
housing, SMEs, tourism, transportation
area for joint collaboration.
Arshad Jan, deputy head of mission/
minister, embassy of Pakistan also
Ambassador Mustafa Yardakul witness
contract signing at the Ministry of
Maritime office in Islamabad.
Federal Minister for Maritime Affairs
Syed Ali Haider Zaidi invited Sanmar to
build their shipyard in Pakistan, share
their expertise, transfer the technology
and benefit from the local skilled
workforce and low wages in Pakistan.
Sanmar Shipyard appreciated the due
diligence done by PQA management
and promised to deliver ahead of
schedule ensuring quality.
and outbound operations will grow
exponentially.
With Retailo’s vision of reaching and
impacting 10 million retailers across the
MENAP region in the future, a strategic
partnership with a reliable warehouse
services provider, like Maersk, will
prove to be a huge contributor in
realizing Retailo’s vision effectively.”
Maersk Pakistan’s Managing Director
Aruna Hussain commented on the
partnership, “At Maersk, our ambition is
to connect and simplify our customers’
supply chains. Our partnership with
Retailo strengthens our commitment
towards this ambition.
Retailo will commence operations with
Maersk Pakistan from 1st April 2021
and the two companies will explore
opportunities to grow and expand in
other geographies across MENAP.
showed his concern over the pandemic
which has reduced commercial
activities and highlighted the investment
opportunities in economic zones and
SEZs of Pakistan. He ensured his
continuous efforts and support for the
enhancement of trade relations.
Pakistan planned to resume cargo train
services via Iran to Turkey. The route
stretches 6,540 km. Some 1,950 km
of track is in Turkey, 2,600 km in Iran,
and another 1,990 km in Pakistan. The
journey from Istanbul to Islamabad will
take 10 days – much faster than the
21 days by sea between Turkey and
Pakistan. The root of the project is found
in container train service launched
in 2009 under the umbrella of the
Economic Cooperation Organization.
ECO is a 10-member political
and economic intergovernmental
organization founded in 1985 by Iran,
Pakistan and Turkey.
TRADE CHRONICLE - Mar - Apr - 2021 - Page # 19
TRADE CHRONICLE
DP World Berbera, a regional maritime
hub in the Horn of Africa, welcomed the
arrival of three new ship-to-shore (STS)
gantry cranes, as part of its current
project to expand and further develop
the Port of Berbera.
The three cranes were brought to the
port by the vessel Zhen-Hua 29, and
were safely off-loaded in a meticulously
planned exercise carried out by DP
World Berbera’s management and
engineering team.
The cranes, at 51 meters high, each has
a capacity of 65 tonnes with an outer
reach of 24 rows of containers, and will
be able to serve some of the largest
container ships afloat today, allowing
importers and exporters to make
the most of the resulting economies
of scale. The arrival of the cranes
DP World celebrates milestone with completion of the first
10,000 moves of BoxBay container high bay store system
DP World, the Dubai-based enabler
of worldwide smart end-to-end supply
chain logistics, together in a Joint
Venture called BoxBay with the German
industrial engineering specialist
SMS group GmbH, has successfully
completed the first 10,000 container
moves in the BoxBay high bay store
system at Jebel Ali Port.
The milestone demonstrates the
disruptive technology concept works,
and makes possible dramatic changes
to the way containers are handled in
ports around the world. Construction
of the test facility with 792 container
slots was completed in July last year
in Terminal 4 of Jebel Ali Port in Dubai.
BoxBay is a patented automated
container handling system that stores
follows the
installation
of eight new
rubber-tyred
gantry (RTG) cranes at the port earlier
in January this year.
DP World Berbera reaches another milestone
in development of Berbera port
DP World Berbera is a true multi-use
port whose customers handle a wide
variety of cargo ranging from General
Cargo, Bulk Cargo, RORO, Livestock
and Containerized Cargo.
S u h a i l
Albanna,
CEO and
MD of
DP World
Middle East
and Africa
region said:
“The arrival
of the new
cranes is
another key
milestone
containers up to eleven stories high in
steel racks. It delivers more than three
times the capacity of a conventional
yard, so the footprint of terminals can
be reduced by up to 70 percent. The
system is designed to run automatically
and enables any container to be
accessed individually without moving
any other.
Traditionally containers are stacked
one on top of the other in rows meaning
many containers have to be moved to
access containers lower down in the
stacks. BoxBay is designed to be fully
electrified and can be powered by solar
panels on its roof.
The technology behind BoxBay was
originally developed by SMS group for
handling of metal coils that weigh as
much as 50 tonnes in racks as
high as 50 meters. The system
will be demonstrated to the
public during EXPO 2020 in
Dubai in October.
Sultan Ahmed Bin Sulayem,
Group Chairman and CEO
of DP World, said: “The
completion of the first 10,000
moves demonstrates that the
BoxBay concept works in the
real world. This technology has
the potential to revolutionise
TRADE CHRONICLE - Mar - Apr - 2021 - Page # 20
in the development and expansion of
Berbera Port. These cranes, in addition
to those already installed, will further
improve operational efficiencies at
Berbera Port and transform it into a
modern and world class facility, further
strengthening it as a major regional
trade port servicing the Horn of Africa.”
DP World has committed to investing up
to US$442 million to expand the port,
and once completed it will increase
capacity by 500,000 TEUs per year.
how ports and terminals operate
around the world. BoxBay adds
value for our operations and
customers and demonstrates DP
World’s strengths as a global provider
of smart and innovative logistics
solutions”.
Mathias Dobner, Chairman and CEO of
BoxBay, said: “We have been making
great progress in setting up the system
in Terminal 4. Usually, when setting up
a new plant or system, you first have
to run practical tests to find out where
further optimisation will be needed
– especially, when the system you
are building is the very first one of its
type, as is the case with BoxBay. In
order to enhance the reliability of the
technology, we have been thoroughly
analyzing the information collected by
our warehouse management system.
These were immense amounts of
data. But they enabled us to make
adjustments continuously wherever
necessary. BoxBay has set out to
revolutionize global supply chains”
Klaus Poeggeler, General Site
Manager of SMS group company
AMOVA GmbH said: “Seeing the new
system set up within just one year was
really impressive. Nevertheless, safety
of the teams on site has always had
top priority. We didn’t have a single
accident during the complete assembly
and installation phase – not even a cut
in a finger.”
Cement Industry
Fauji Cement’s net profits rise
by 232 per cent in 1HY2021
Fauji Cement Company Limited (FCCL)
announced its financial results for the
half year ended December 31st 2020.
Its net profits up by 232 per cent YoY
to PKR 1.601bn as compared to PKR
482m in the same period last year.
The Company officials attribute the
improved financial performance to
higher dispatches and improved
retentions during the review period. The
initiatives to reduce costs have also
started to realise with improvement in
fixed costs. Cost of production showing
decrease by 7% as compared to last
year owing to lower fuel, power and
fixed costs. Power cost reduction is
attributable to cheaper own generation
and to fuel the reduced coal prices
during review period.
FCCL net sales increased to PKR
11.61bn from PKR 9.557bn during
this period. The company incurred
a lower selling and distribution
expenses of PKR 93m against PKR
104m in the same period last year.
The administrative expenses stood
at PKR 254m compared to PKR
The Federal Bureau of Statistics
(FBS) of Pakistan has released
cement export and production data for
the July 2020-March 2021 and July
2020-February 2021 periods. It shows
diversified trends in export and local
production. Export volumes increased
during this period, but revenues
remained flat in dollar terms, reflecting
a weaker price market for cement
and clinker. Meanwhile, local output
increased on intense local demands
and expansion in capacity.
Export
Pakistan’s cement industry earned
US$210m of export revenue by
delivering 6.247Mt of cement and
clinker overseas in 9MFY20-21,
compared to US$210m from 5.592Mt
of exports in the year-ago period. The
263m in 1HY19. During the
review period, the Company’s
capacity utilisation improved to
100% compared to last year’s
92%. Cement despatches and sales
revenue during the review period
were highest ever during any six
months period. Export sales during
review period declined compared
to previous period mainly due to
closure of Afghan borders Solar
power plant having capacity of 2.5
MW has started its trial operations
during the month of January 2021,
making the total solar power capacity
as 17.5 MW largest captive solar
project in Pakistan.
Outlook
The diversified trend in export and
production recorded in Pakistan
A foot note from Waqar Ahmed Malik
Chairman Board of Directors and
Qamar Haris Manzoor Chief Executive
& Managing Director, says that going
forward, the cement demand is
expected to remain strong on the back
of pick up in construction activity and
initiating of work on CPEC and mega
hydro power projects. Due to stable
local demand, prices are also expected
to remain stable in 2nd half year of the
year. Exports to Afghanistan are also
expected to increase with the start of
export data represents a
flat performance on the
export front in dollar terms
but reflects the growth of
11.70 per cent in terms of volumes
during this period, as reported by FBS.
In local currency terms, the export
value increased by 3.80 per cent to
PKR34bn (US$210) from PKR32bn
during this 9MFY20-21. Nevertheless,
the cost per tonne fell from US$37.56/t
in 8MFY19-20 to US$33.62/t in the July
2020-March 2021 period.
In March 2021 alone, revenues rose to
US$26.84m on the export of 776,934t
from US$19.52m on the export of
537,452t cement and clinker exports
in February 2021. The export trend
represents a substantial growth of 37.50
per cent and 44.56 per cent in terms of
value and quantity, respectively. The
same strong growth pattern in export,
recorded in the comparison period of
March 2020, when export stood at US$
TRADE CHRONICLE - Mar - Apr - 2021 - Page # 21
Mr Waqar Ahmed
Malik, Chairman
summer season and more borders
being opened. However, the increase in
international coal prices and the recent
announcement by the Government to
increase electricity prices will increase
the cost of production going forward.
Profile of FCCL
Fauji Cement Company Limited (FCCL)
was set up as a public limited company
and commenced operation in 1997. It
began with a production capacity of
3700 tons per day that grew to 11000
tons per day. Fauji Cement has also set
up two Waste Heat Recovery Power
Plants (WHRPPs) of 12 MW and 9 MW,
one in 2015 and the other one in 2018.
By Abdul Rab Siddiqi
16.14m on the shipments of 436,725t of
commodities. It depicts growth of 66.25
per cent in value and 77.90 per cent in
quantity.
Production in 8MFY21
Mr Qamar Haris
Manzoor, CEO, MD
The Large Scale Manufacturing
Industries Index (LSMI) continues to
see a growth trend in July - February
2021. The latest data released by
PBS suggests that LSMI output during
8MFY21 witnessed an increase of 7.45
per cent YoY and an increase of 4.85
per cent YoY during February 2021.
During this period, Pakistani cement
production increased by 21.28 per
cent, YoY to 32.909Mt compared to
27.067Mt a year earlier. The upward
trend was also observed in February
2021, when production rose by 11.68
per cent to 4.053Mt versus 3.629Mt in
the same month last year.
A Chronicle report
TRADE CHRONICLE
Cement companies show significant
profits during 2QFY20 in Pakistan
Pakistan top cement manufacturers
listed on Pakistan Stock Exchange
(PSX) recorded significant profitability
with improved margins during the last
quarter of 2020. The experts believe
this trend is likely to continue in reaming
quarters of the ongoing financial year.
According to an analyst of Spectrum
Securities Limited, the cement sector
profitability continued in 2QFY21 as the
bottom line of the thirteen companies
posted profits to the tune of PKR 11bn
as compared to PAT of PKR 5bn in the
preceding quarter. The surge in profits
is mainly attributed to i) 11 per cent
Luck Cement overseas production
reaches to 4.12Mta
Lucky Cement Limited has informed
Pakistan Stock Exchange (PSX) that the
Greenfield cement production facility
Bangladesh cement makers add
two bulk carries to fleet
Bangladesh Meghna Group of
Industries have launched two of the
largest dry bulk carriers, viz MV Meghna
Princess & MV Meghna Adventure, on
March 10, 2021, at the Chittagong port.
Meghna Group is one of the top three
cement producers and marketers of
Bangladesh, operating with its two
strong brands, namely Fresh and
Meghnacem Deluxe. State Minister for
Shipping Khalid Mahmud Chowdhury
QoQ higher dispatches,
ii) 6 per cent QoQ
improvement in average
retention prices and ii)
decline in finance cost by 12 per cent
QoQ. iii) After coming online of new
capacities, the depreciation cost also
declines.
The 13 companies (out of 16), which
represent 99 per cent of the sector’s
market capitalization, include DGKC,
MLCF, FCCL, KOHC, GWLC, DCL,
ACPL, BWCL, CHCC, LUCK, PIOC,
POWER, and THCCL.
In 2QFY21, these companies’ gross
margins clocked in at 25 per cent
vs 19 per cent in 1QFY21 on higher
dispatches and better retention prices.
While the industry’s utilization
stood at 91 per cent during
2QFY21 vs 86 per cent in
1QFY21.
Selling and distribution
expense remained intact as
exports declined by 15 per cent
QoQ. During 1HFY21, exports
to Afghanistan declined by
13 per cent YoY. The sector’s
finance cost reduced by 12
per cent QoQ on short-term
deleveraging loans as liquidity
in Samawh, Iraq, with a
capacity of 1.2Mta, has
successfully commenced
its commercial operations
with the effect from March 10, 2021.
According to Faisal Mahmood, GM
Finance & Company Secretary of
Lucky Cement, the said cement
production facility is a joint venture
with the Al-Shamookh group of Iraq
and consequent to this addition, Lucky
Cement’s overseas cement capacity
attended the event as
Chief guest.
Chairman of Chittagong
Port Authority Rear Admiral M
Shahjahan was the special guest while
Commodore Abu Jafar Md. Jalal Uddin,
Director-General of the Department
Shipping was the guest of honour, says
a company announcement.
Mostafa Kamal, Chairman and
Managing Director of Meghna Group
of Industries, in the opening remarks,
said Meghna Group is carrying goods
in the river and sea. The two new shops
improved in the market.
Average coal prices (FOB) stood at
$58/t (considered a 2-month lag impact)
during 2QFY21 compared to $56/t in
the previous quarter. At the same time,
USD/PKR parity averaged at PKR 161
in 2QFY21 vs PKR 167 in 1QFY21.
Outlook
The cement sector remained in the
limelight during FY21TD on the
resurgence in construction activities
given government schemes and
extraordinary tax relief and monetary
relief by Stae bank of Pakistan, which
kept the cement demand intact. The
expected strong demand encourages
the existing manufacturers to enter into
brownfield expansion.
The analyst expects that the local
cement demand to remain upbeat in
the medium term given the government
and the private sector’s infrastructure
projects. Furthermore, the easing
monetary policy would fuel up economic
growth. The cement sector is highly
leveraged, and experts expect that the
low-interest rates to keep financial cost
at a minimal level. In contrast, improved
liquidity of the industry will result in
lower working capital needs.
now stands at 4.12Mta, which is as
follows:
• Cement Grinding Plant in Basra, Iraq:
1.74Mta
• Fully integrated Cement Plant in
the Democratic Republic of Congo:
1.18Mta
• Fully integrated Cement Plant in
Samawah, Iraq: 1.20Mta.
equipped with the latest technology and
ultramodern equipment now included in
the vast fleet of the Group, consisting of
145 vessels.
He expressed hope that in comparison
with the chartered vessel, the benefit
of lower freight is available in these
self-owned ships, which will positively
affect the competitive price of goods,
including cement.
Besides these, by hoisting the national
flag, these vessels will uphold the
country’s image in the world, he said.
TRADE CHRONICLE - Mar - Apr - 2021 - Page # 22
TRADE CHRONICLE
Attock Cement gets
Rs9.7bn credit line
Attock Ce ment Pakistan Ltd (ACPL)
has recently concluded the financial
close of syndicated term finance facility
of Rs9.7 billion under the State Bank
Of Pakistan’s Temporary Eco nomic
Refinance Facility and Long-Term
Financing Faci lity through a consortium
of banks led by MCB Bank Ltd, who
acted as agent bank on behalf of the
other financiers, which includes Allied
Bank Ltd and the Bank of Punjab.
This facility will be used to finance
the setting up of a new production
line of 4,000 tonnes per day capacity
of cement with a total investment of
$100 million as approved by its board
of directors for which the company has
already signed a contract with China’s
Heifi Cement Research and Design
Institute.
ACPL is already in the process of
installing a 20-megawatt solar power
plant at its existing site under the SBP’s
financing scheme of renewable energy
at an investment of $11m.
Lucky Cement offers third scholarship program for the
deserving students of District Lakki Marwat
In continuation to support education
in Pakistan and provide affordable
education for the deserving students,
Lucky Cement Limited has launched
yet another scholarship program for the
youth of District Lakki Marwat. Under
this program, the eligible students can
apply for scholarships for graduate and
post-graduate programs.
The Company will cover the tuition
fee expense of the selected students.
Students residing permanently and
holding domicile of District Lakki
Marwat can apply for the program
through Company’s website. The
program offers an opportunity for the
students from this district to attain a
degree from leading universities of
Pakistan including NUST, LUMS &
IBA. Students can apply for various
disciplines including Business
Management, Engineering & Medical.
The aim of the program is to make
education accessible and affordable for
deserving students especially from the
rural areas regardless of their financial
background.
Continuing with its long-term vision
to provide merit-based support for
the deserving and less privileged
segments of the society, the Company
has granted a number of scholarships
to various students of leading
universities in Pakistan. Furthermore,
to empower women through education
the Company has been supporting two
leading Government girls’ schools in
Karachi, which have been transformed
into model girls’ educational institutions
in collaboration with an NGO.
Recently, the Company also launched
a dedicated scholarship program for
the students of intermediate and as well
as a vocational training program for the
youth of District Lakki Marwat in which
more than 150 youth appeared for the
entry test. The selected students are
now settled in The Hunar Foundation’s
Rashidabad Branch in
TandoAllahyar District. Where
they will attain professional
vocational training diploma in
various trades.
Lucky Cement Limited is
covering the boarding,
lodging, and tuition fee of
these students with an aim to
empower them for financial
independence and for
strengthening their social and
economic status so they can
contribute to the development
and progress of the Country.
Maple Leaf Cement Factory
awards a contract for the
brownfield expansion
project at Punjab
Maple Leaf Cement Factory Limited
(MLCFL) has signed a contract with
plant supplier M/s. Chengdu Design &
Research Institute of Building Materials
Industry Co., Ltd, China for the supply
of equipment and engineering for a
dry process clinker production line-
4 of 7,000tpdgrey clinker, through a
brownfield expansion project at Punjab
Province in Pakistan.
The project is estimated to cost PKR
18.5 bn.
According to communication to
Pakistan Stock Exchange (PSX)
by Muhammad Ashraf Company
Secretary, the agreement was reached
on March 22 to enhance its clinker
production capacity up to 25,000tpd at
the existing plant site Ishanderabad,
District Mianwali, Punjab.
The project is expected to commence
trial production in August 2022.
Earlier, the Company had established a
Letter of Credit for the expansion of the
existing Waste Heat Recovery Plant.
The project is expected to complete
by September 2021 with a projected
capital outlay of PKR 1.8 bn, which
will increase the current capacity of 16
MW to 25 MW. In this regard, a civil
contractor has been mobilized at the
site and piling work is in process.
Maple boosts clinker output
Maple Leaf Cement Factory Ltd (MLCF)
informed the PSX recently that the
existing clinker capacity of their brown
field line-3, located at Iskanderabad,
had been enhanced by 500 tonnes to
7,800 tonnes per day. `Accordingly, the
existing total grey clinker capacity will
increase from 18,000 tonnes to 18,500
tons per day of clinker,` the company
stated.
TRADE CHRONICLE - Mar - Apr - 2021 - Page # 23
TRADE CHRONICLE
Pakistan records highest monthly growth
in cement dispatches during March 2021
The Pakistan cement sector posted the
highest ever monthly growth of 44.39
percent in March 2021 due to a massive
increase in domestic consumption
and exports. Total Cement dispatches
during March 2021 were 5.373
million tons against 3.722 million tons
dispatched during the same month of
last fiscal year.
According to the data released by the
All Pakistan Cement Manufacturers
Association (APCMA), local cement
dispatches in March 2021 were 4.563
million tons showing a healthy increase
of 41.96 percent compared to 3.214
million tons in March 2020. Exports
also increased significantly by 59.80
percent, from 507,480 tons in March
2020 to 810,962 tons in March 2021.
In March 2021, the cement mills in
North dispatched 3.809 million tons of
Kohat Cement announces
Rs1.059bln net profit
Kohat Cement has posted a net profit
of Rs1.059 billion translating into
earnings per share (EPS) of Rs5.27
for the quarter ended March 31, 2021
compared with the loss of Rs381.08
million in the same period last year.
“The recovery in profitability is likely
a product of increase in domestic
retention, which rose 18 percent
to Rs597/bag, higher domestic
dispatches and lower interest rates,”
Yusuf Rahman at KASB Securities said
in a report.
Total sales for the period under review
clocked in at Rs6.71 billion, up 163
percent compared with sales of Rs2.55
billion in the corresponding period last
year. Record high industry dispatches
and an increase in the company’s
cement to local
markets against
2.749 million
tons in March
2020, registering an increase of 38.52
percent. South-based mills posted
753,704 tons of cement in domestic
markets, which was 62.28 percent
higher than the 464,440 tons of cement
dispatched in March 2020. Exports
from North based mills registered an
enormous increase of 162.58 percent
as the volumes increased from 106,759
tons in March 2020 to 280,330 tons in
March 2021. The South increased by
32.42 percent to 530,632 tons in March
2021 from 400,721 tons during the
same month last year.
During the first nine months of this
fiscal year, total cement dispatches
(domestic and exports) were 43.325
million tons of 16.99 percent higher
than 37.035 million tons of cement
dispatched during the corresponding
period last fiscal year.
From July 20 to March
21, local dispatches
increased by 18.29
percent to 36.182
million tons from 30.588
million tons from July
19 to March 20. Exports
increased from 6.447
million tons from July
19 to March 20 to 7.144
million tons from July 20
to March 21, showing a
production capacity along with
higher domestic retention aided
the overall top-line growth during
the period.
The finance cost declined 32.14
percent to Rs119.27 million due
to low interest regime. “Financial
charges dipped on account of a
lower debt balance resulting from
a significant improvement in the
company’s cash-flows,” Yusuf said.
For the nine-month period ended
March 31, 2021, Kohat Cement
posted a net profit of Rs2.53 billion
translating into EPS of Rs12.60 as
against the loss of Rs283.3 million
and loss per share (LPS) of Rs1.41
in the same period last year. The
company did not announce any
payouts along with the corporate
results.
growth of 10.80 percent.
During the first nine months of the
current fiscal year, North-based mills
dispatched 30.629 million tons of
cement for domestic consumption that
was 17.75 percent higher than the
dispatches during the same period last
budgetary that stood at 26.012 million
tons. Exports from North were 1.911
million tons showing a decline of 0.22
percent over exports of 1.915 million
tons during the same fiscal year.
South-based mills dispatched 5.552
million tons in the domestic market
during the first nine months of the
current fiscal year, which was 21.36
percent higher than the 4.575 million
tons shipped during the corresponding
period of the last fiscal year. The
South exports were 5.232 million tons
registering an increase of 15.46 percent
over exports of 4.531 million tons during
the same period the previous year.
However, this growth was accompanied
by worrisome signs as the rates
of power and coal are consistently
increasing. Cement being an energyintensive
product, the industry is finding
it hard to operate due to continuous
rise in major input cost elements. “The
industry is not demanding any special
favour but wants to be treated at par
with five exporting sectors and import
levies on coal have to be rationalized
as it is the main input of the cement
sector,” added the spokesman.
TRADE CHRONICLE - Mar - Apr - 2021 - Page # 24
ACM Zaheer to take over
as PAF chief
Air Marshal Zaheer Ahmad Babar
Sidhu has been promoted as Air Chief
Marshal and appointed as the new
Chief of the Air Staff of Pakistan Air
Force (PAF). Born on April 16, 1965 Air
Marshal Zaheer Ahmad Baber Sidhu
OGDCL appoints new BoD chief
The board of
directors of Oil and
Gas Development
Company Limited
(OGDCL) in term
of section 192 of
the companies’
act 2017
appointed Zafar Masud as Chairman
Ajeet Kumar made Chief
Regulatory Officer of PSX
A j e e t
Kumar
has been
appointed
the Chief
Regulatory
Officer
(CRO) of
Pakistan Stock Exchange
(PSX).
Martin Dow Group announced
today that it has named Nutshell
Communications as their strategic
People & Events
was commissioned in GD(P) Branch
of Pakistan Air Force in April, 1986.
During his career, he has commanded
a Fighter Squadron, a Flying Wing, an
Operational Air Base and Regional Air
Command.
Presently, he is serving at Air
Headquarters, Islamabad as Deputy
Chief of the Air Staff (Administration). In
recognition of his outstanding services,
he has been awarded with Tamghai-Imtiaz
(Military), Sitara-i-Imtiaz
(Military) and Hilal-i-Imtiaz (Military).
Meanwhile, Air Chief Marshal Mujahid
Anwar Khan will retire today (March 18)
on completion of his three-year tenure
as the PAF chief.
Board for a term of three years in
its meeting held on Wednesday
in Islamabad.
The members of board of directors
participated in this meeting which was
scheduled to appoint new chairman of
the board. Earlier in 11th extraordinary
general meeting of the company,
which was held on March 17, 2021 the
directors of the company were elected
Ajeet Kumar has
been associated
with PSX for more
than seven years
and is a core team member
of the Regulatory Affairs
in the capacity of Deputy
General Manager, Policy &
Regulations Development
as well as the Secretary
of Regulatory Affairs
Committee (RAC) of the
Board of Directors at PSX.
Asif Ahmad named
IBM Pakistan GM
IBM announced
that Asif Ahmad
has been
named General
Manager of
IBM Pakistan.
Ahmad succeeds Ghazanfar
Ali, who led IBM’s business
operations in Pakistan since
2016 and has taken on a
Martin Dow Group signs Nutshell Communications as
Public Relations Agency of Records
PR partner to spearhead stakeholder
relations and brand communications
for the Pakistan market. (Sitting on
right) Ms. Anum Jawed Akhai, Group
Director Business Growth & Strategy -
Martin Dow Group, and (Sitting on left)
Ms. Sadaf Mahmood, Chief Operating
Officer -Nutshell Communications
signing the agreements in the presence
of the management team from both
the organizations. (Standing in the
TRADE CHRONICLE - Mar - Apr - 2021 - Page # 25
Sarmad Ali elected new
APNS President
The annual
meeting of the
APNS General
Council held on
March 24, 2021
at the APNS
House, Karachi,
unanimously
elected Sarmad Ali as President,
Jamil Ather as Senior Vice President,
Shahab Zuberi as Vice President,
Ms Nazafreen Saigol Lakhani as
Secretary General, Mohsin Bilal as
Joint Secretary and Owais Khushnood
as Finance Secretary of the society.
in accordance with section 159 of the
companies’ act 2017 for a term of three
years. The persons elected as directors
of the company included Syed Khalid
Siraj Subhani, Mian Asad Hayaud
Din, Mather Niaz Rana, Kamran Ali
Afzal, Mumtaz Ali Shah, Muhammad
Haroom-ur-Rafique, Zafar Masud,
Akbar Ayub Khan, Muhammad Riaz
Khan, ShamamaTul Amber Arbab and
Jahanzaib Durrani.
new leadership role in IBM
Middle East and Africa.
“Ahmad is a respected
leader with a solid track
record for developing highperforming
teams and being
a true partner to our clients,
helping them with their
transformation journeys,”
said Hossam Seif El-Din,
General Manager for IBM
Middle East and Pakistan.”
back from Right to Left) Mr. Rustom
Boga, Director Group Corporate
Communications - Martin Dow Group,
Usman Altaf, Group Head Legal &
IP - Marting Dow Group, Mr. Javed
Ghulam Mohammad, Group Managing
Director - Martin Dow Group, Mr. Ali
Akhai, Chairman - Martin Dow Group,
Muhammad Azfar Ahsan, Founder
& CEO - Nutshell Communications,
Amer Pasha, Chief Strategy &
Planning - Nutshell Communications,
Ms. Sanya Shahid, Head of Customer
Experience & New Initiatives - Nutshell
Communications.
TRADE CHRONICLE
Majyd Aziz elected president
of UN-GCNP
Majyd Aziz, former President
Employers’ Federation of Pakistan,
was elected as President of UN Global
Compact Network Pakistan at the
Annual General Meeting. Ismail Suttar
(Hub Salt Balochistan) was elected
Abacus appoints Fatima Asad
Khan as CEO
Abacus - a leading
technology,
consulting, and
outsourcing firm,
announced that its
Board of Directors
has appointed
Fatima Asad Khan
as Chief Executive Officer effective
immediately. Whilst Asad Ali Khan
continues as Chairman of the Board,
Humayun Bashir re-elected
NCCPL chairman
Limited (NCCPL).
Humayun
Bashir has
been re-elected
Chairman of
the Board
of Directors
of National
Clearing
Company
of Pakistan
as Senior Vice President while
Mahvash Siddiqui (EPLA Laboratories
Karachi), Muhammad Waqar
(Nestle Pakistan Lahore) and Usman
Mukhtar (Sadaqat Limited Faisalabad)
were elected as Vice presidents. The
AGM also elected 18 members of
Executive Committee including six coopted
members representing United
Nations, Government, WEBCOP, Workers, Academia and Women.
he will no longer serve as the
CEO. Also, Muhammad Aamer
Chaudhary shall assume the role of
Vice Chairman of the Board. Abbas
Khan and Paul Batchelor shall continue
as non-executivemembers of the
Board of Directors and Alliya Haider as
Corporate Secretary.
In her statement, Fatima AsadKhan,
commented, “Abacus has always
been a true transformation partner
for its clients, bringing revolutionizing
solutions in Strategy, Technology,
Human Resources, and Outsourcing.
Employer of Choice
“Emerald Award”
Engro Polymer & Chemicals CEO Jahangir
Piracha receiving the Employer of Choice
“Emerald Award” from His Excellency,
President of Pakistan Dr. Arif Alvi at the
Employers Federation of Pakistan’s 8th
Employer of the Year Awards held in Karachi
on March 12, 2021.
Aziz Memon elected ESU
Int’l VP
For the first time
in the over 100
years history of
English Speaking
Union (ESU)
International
that has over 90
chapters in 54
Commonwealth
countries,
Aziz Memon,
President, ESU Pakistan, has been
elected as Vice President for two years
while Jonathan Callund from Chile has
been elected as President.
Aziz Memon is a successful Pakistani
entrepreneur who specializes in
textiles and Chairman of Kings Group
of Companies. In June 2020 he
was elected as Trustee, The Rotary
Foundation for a period of four years.
Aziz Memon is Honorary Consul
General of the Republic of Suriname
and President of the United Memon
Jamat of Pakistan.
Turkey to expand cooperation with
Pakistan in technology sector
Turkey wants to expend relation with
Pakistan in the field of Technology and
vocational training, it was shared by the
Turk Consul General in Karachi Tolga
Ucak while addressing a gathering of
industrialists at Korangi Association
of Trade & Industry (KATI) in Karachi
recently.
Senior Vice President KATI Zaki Ahmed Sharif
presents shield to Turk Consul General in Karachi
Tolga Ucak. At the occasion Rashid Ahmed
Siddiqui, Nighat Awan, Masood Naqi and Syed
Farukh Mazher are also present.
The CG said that Turk
investor have keen
interest in the industrial
sector of Pakistan;
especially food, textile and chemical
are some of the priority sectors. He
urged to enhance cooperation between
two countries in technology transfer and
sharing. He said that Turkey wants to
enhance its cooperation in Technology
and we are working to introduce our
educational and vocational training
programs in Pakistan.
Mr. Ucak said that Turkey can provide
huge industrial machinery to Pakistan
and this opportunity of mutual
cooperation between Pakistan and
Turkey should be explored. He said
that for more trade between Turkey and
Pakistan we need to have a Turk Bank
here, so that we can establish better
and smooth banking and transaction
channels.
President of KATI Saleem-uz-Zaman
welcomed the CG Tolga Ucak at
KATI and briefed him about economic
significance and production capabilities
of Korangi Industrial Area. He said
that number of Turk companies are
working successfully in Pakistan,
however there are huge possibilities to
increase the volume of bilateral trade.
Rashid Siddiqui said that now Turkey
is one of the competitor of Europe in
technology and we can enhance our
relation in this sector. He said that a
commercial consulate of Turkey has to
be established in Pakistan to enhance
bilateral trade. Masood Naqi said
that we welcome the educational and
vocational training projects of Turkey in
Pakistan and ready to facilitate in our
capacity.
TRADE CHRONICLE - Mar - Apr - 2021 - Page # 26
TRADE CHRONICLE
KATI urges for a trade centric diplomacy
Asim made FBR chairman
A s i m
Ahmad,
F B R
Member
IT (BS-
21 officer
of Inland
Revenue
Service),
h a s
assumed
t h e
charge of
CEO Horoa Pharma Abdul Rashid
Chohan presents a bouquet of flowers
at a dinner hosted by Hoora Pharma
in honor of Patron-in-Chief KATI SM
Muneer. At the occasion President
KATI Saleem-uz-Zaman, Zubair
Chhaya, Danish Khan, Gulzar Firoz,
Sheikh Umer Rehan, Najam-ul-Arfeen,
Tariq Islam Baghpati and Omar Qasim
are also present.
109th rank became possible due to dedication,
sacrifices by policemen: Ghulam Nabi
chairman Federal Board of Revenue
(FBR) and the additional charge of
secretary, Revenue Division, recently.
During the tenure of the PTI government
since August 2018, Asim Ahmad would
be the sixth chairman of the FBR.
The earlier chairpersons posted from
2018 till date were: Rukhsana Yasmin;
Mohammad Jehanzeb Khan; Shabbar
Zaidi; Nausheen Javaid Amjad, and
Muhammad Javed Ghani. Sources
said that the federal cabinet through
circulating a summary has taken the
approval of Asim Ahmad appointment
as Chairman FBR.
Dagha to head FPCCI
research board
President Karachi Chamber of
Commerce & Industry (KCCI) Shariq
Vohra presenting crest to Additional
Inspector General of Police Ghulam
Nabi Memon during his visit to KCCI.
Chairman Businessmen Group Zubair
Motiwala, General Secretary BMG AQ
Khalil, Senior Vice President Saqib
Goodluck, Vice President Shamsul
Islam Khan, Chairman Law & Order
Subcommittee Junaid ur Rehman and
others are also seen in the picture.
The government is resolving environmental issues of the
province on priority basis; Secretary Environment
Federation
of Pakistan
Chambers
o f
Commerce
a n d
Industry
(FPCCI)
President
M i a n
Nasser
Hyatt Maggo has formed a Policy
and Research Board with Mohammad
Younus Dagha, a former federal
secretary for water and power,
commerce and finance, as its chairman.
KATI President Saleem-uz-Zaman
presents KATI's shield to
Environment Secretary Mohammad
Aslam Ghauri. At the occasion
Secretary Labor Abdul Rashid Solangi,
Gulzar Firoz, Danish Khan, Nighat
Awan, Syed Johar Ali Qandhari and
Syed Farukh Mazher are also present.
The board of the FPCCI is mandated
to provide research-based expert
input for policy advice and advocacy,
formalise business community’s
inputs on international trade, tariff
and taxation policies, macroeconomic
issues, regulatory laws, access to
finance and ease of doing business
initiatives related to various government
ministries and institutions.
TRADE CHRONICLE - Mar - Apr - 2021 - Page # 27
TRADE CHRONICLE
Coca-Cola commits to support Clean
and Green Pakistan program
Coca-Cola Beverages Pakistan Limited
(CCI Pakistan)pledged to extend the
Prime Minister’s ‘Clean and Green
Pakistan’ vision by signing a formal
memorandum of understanding (MoU)
with the Ministry of Climate Change.
The agreement was signed during a
special ceremony hosted at the Ministry
of Climate Change’s office in Islamabad
on April 7, 2021. Key officials including
the Special Assistant to Prime Minister
on Climate Change, Malik Amin
Aslam, along with representatives
from the Ministry of Climate Change,
CCI Pakistan, Environment Protection
Agency (EPA) as well as the district
waste management authorities of
related cities attended the ceremony.
The PM’s aide, Malik Amin
Aslam,mentioned that,“as per the
agreed terms of reference, CCI
Pakistan would support and engage
in various cleaning
activities as well as
plantation of around
50,000 tree saplings
across the cities of Karachi, Lahore,
Gujranwala, Faisalabad, Islamabad,
Attock, Multan, and Rahim Yar Khan.”
“As part of CCI’s corporate volunteer
program, its employees will also support
in executing these
activities”, said
Basit Zafar, Public
Affairs Manager at
CCI Pakistan.
The green activities
are scheduled
to be completed
within 2021, which
reflects a significant
contribution
towards shaping
a clean and green
Pakistan, he
elaborated.
China offers full support to Pakistani
business community
H.E. Nong Rong, Ambassador of the
People’s Republic of China along with
Mr. Li Bijian, Consul General of China
at Karachi along with his team visited
the Federation of Pakistan Chambers
of Commerce and Industry.
The meeting took note of various
subjects pertaining to economic
relationship between Pakistan and
China particularly in reference to
China Pakistan Economic Corridor
and China-Pakistan Free Trade
Agreement.
CPEC and the bilateral
trade. He also suggested
that China should focus
on investing in the people
of Pakistan by giving access to Chinese
market. President FPCCI also on this
occasion expressed sincerest gratitude
to the government of China for donating
Covid-19 vaccines to Pakistan.
During the discussion made in the
While speaking about this alliance,
Ahmet Kursad Ertin, General Manager
at CCI Pakistan said, “We are a
responsible and environmentally
conscious corporate citizen of Pakistan.
This mutual alliance serves as an
expression of our firm belief to protect
and nurture the environment and fend
off catastrophic challenges of climate
change faced by Pakistan.”
meeting, Mian Anjum Nisar, Immediate
Past President FPCCI requested
the Excellency to extend support
to Pakistani business community in
transferring technical knowledge in the
field of agriculture.
Sheikh Jawaid Ilyas, Chairman of Pak-
China Business Council pointed out the
imbalance in the bilateral trade which is
heavily in favor of China.
H.E. shared his views with the
house regarding the upcoming
online business portal of Chinese
Government which will be a good
opportunity for Pakistani business
community to get easily connected
with their Chinese counterparts.
H.E. extended his full support not
only of his Embassy at Islamabad
but also at Consul General Office at
Karachi to the business community
particularly to the Federation of
Pakistan Chamber of Commerce
and Industry.
The President FPCCI requested
His Excellency in emphasizing
strong and constants mutual efforts
to eliminate negative air against
TRADE CHRONICLE - Mar - Apr - 2021 - Page # 28
Telecommunication News
NdcTech & PTCL collaborate to offer Banking Services
on Cloud for the first time in Pakistan
Pakistan Telecommunication Company
Limited (PTCL) signed a partnership
with NdcTech, an award-winning
regional partner of Temenos, to offer
Banking Services on Cloud for the first
time in Pakistan.
Nadeem Khan, Acting CEO and Group
Chief Financial Officer, PTCL Group,
Zarrar Hasham Khan, Chief Business
Services Officer, PTCL, Saad Muzaffar
Waraich, Group Chief Technology
& Information Officer (Operations),
PTCL and Ammara Masood, CEO
& President, NdcTech attended the
signing ceremony held in Karachi,
along with senior officials from both
sides.
This collaboration will allow
NdcTech and PTCL to offer
Cloud-based Digital Banking
and Core Banking solutions.
This will be offered to banks
and non-banking financial
institutions for the first time
in Pakistan. This partnership
will open new avenues and
facilitate banks to provide
banking services digitally to
their customers in less than
KATI signs MoU with Jazz
The Korangi Association of Trade and
Industry (KATI) and Jazz, Pakistan’s
number one 4G operator and largest
internet and broadband service
provider, have signed a Memorandum
of Understanding (MoU) to provide
discounted services to the members of
KATI.
The MoU was signed by KATI
President Saleem-uz-Zaman
and Jazz Regional Head B2B
Sales Asim Irshad under the
presence of KATI’s Chairman
Cellular Standing Committee
Syed Johar Ali Qandhari and
Secretary-General Nihal Akhtar.
Speaking on occasion, Saleemuz-Zaman
said, “Given the
quality of services offered by
90 days. Furthermore, it will also allow
banks to configure the model they want
to operate and prepare for agility and
change from the very start.
On the occasion, Nadeem Khan,
Acting CEO & Group Chief Financial
Officer, PTCL Group, said, “With the
rising need to keep financial sector
data secure, PTCL is the right choice
for an in-country Cloud-based hosting
solution for this sector. We are serving
corporates and enterprises with a
truly robust and secure solution with
the capability to host the data within
Pakistan. This agreement will enable
PTCL and NdcTech to jointly facilitate
banks and financial organizations to
create a safer and more secure Cloud
Jazz, I believe KATI members will
benefit from this understanding that has
been established and make full use of
discounted services to further their
business objectives. Such collective
efforts are essential so that end-users,
especially business and industrial
communities, can benefit from the
digital ecosystem.”
solution for storing financial data within
the country.”
On the occasion, Jean-Paul Mergeai,
President, APAC and MEA, Temenos,
said, “We welcome this partnership
between NdcTech and PTCL to provide
a local Cloud hosting solution for
banks in Pakistan. Temenos software
is cloud-native and designed for the
digital banking age. Temenos is the
platform of choice for banks that want
to create hyper-efficient cost models,
get to market faster and rapidly launch
innovative personalized products.”
On the occasion, Ammara Masood,
CEO & President, NdcTech, said, “This
is a strategic partnership for us with
PTCL, who clearly stands out as a
trusted partner with state-of-the-art and
secure facilities in Pakistan. Through
this collaboration, we will jointly
host world’s leading Temenos
Software for Banks wanting to
use value added services on
PTCL Cloud. Temenos cloudnative
and cloud agnostic
products and our offering of
Pakistan Model Bank built with
local country specific products
and services is fully integrated
with the National switches
and gateways allowing digital
banks to launch rapidly.”
Jazz’s Chief Business Officer, Ali
Naseer, added, “By creating synergies
with reputable organizations like
KATI, we can not only increase the
accessibility of our services but also
maximize the impact that these
innovative services can have on local
business communities.”
According to the MoU, KATI’s
authorized members will
be able to avail reasonable
discounts on Jazz’s 4G devices
and voice and data services.
Each member company will
share proof of membership with
Jazz, as all connections will
be activated on the respective
company’s name. The company
availing the discounted services
and devices will be responsible
for ensuring timely payment of
dues.
TRADE CHRONICLE - Mar - Apr - 2021 - Page # 29
TRADE CHRONICLE
Zong Sweeps Prestigious Customer
Mobile Experience Awards
In continuation of a winning streak from
past years, Zong saw larger recognition
of their improvement efforts in the realm
of user mobile experience through
the customer-experience oriented
Opensignal awards 2021. Winning
five out of seven award categories
outright, Zong once again dominated
the mobile network experience awards
for Pakistan. The operator came top on
Video Experience, Games Experience,
and Upload Speed Experience,
4G Availability and 4G Coverage
Experience. Furthermore, Zong also
became the joint winner with Jazz for
Cellphone imports surge
to $1.31bn
Pakistan`s cellphone imports swelled
by 51.5 per cent to $1.311 billion in
8MFY21 as compared to $865m in the
same period last year, according to the
data released by the Pakistan Bureau
of Statistics on Tuesday.
An of ficial in a cellphone company
said that the mobile phone market is
now upbeat with burgeoning demand in
the price range of Rs10,000-40,000 in
which many companies are competing
Voice App Experience
and Download Speed
Experience.
The Opensignal awards are a globallyrecognized
metric and independent
global standard for analyzing consumer
mobile experience. Reputedly,
Opensignal industry reports are the
definitive guide to understanding the
true experience consumers receive on
with one another.
He said the main buying is coming in the
Rs10,000-25,000 range smartphones
since online education has gained
momentum followed by massive
demandfor food items through online
facilities in the last one year.
The official said Korean and Chinese
manufacturers have been presenting
one to two new cellphones every one to
two months in the range of Rs15,000-
25,000 with 2/3 GB RAM and 32/64 GB
storage options which has provided a
PTCL gets recognition for its communication
and social responsibility
Pakistan Telecommunications
Company Limited (PTCL) got
recognition for its progressive practices
in Inclusive Communication and Social
Responsibility at the Global Diversity
and Inclusion Benchmark Standards
(GDIB) Awards 2021.
Being a large organization with a
nationwide reach of staff and customerbase,
it is a tremendous feat to be
acknowledged for communication
practices that are effectively tailored
to the diverse characteristics of our
customers and employees. Email
bulletins, digital screens, IVR messages
and SMS alerts are some of the many
ways the company chooses to facilitate
two-way communication. Pulse surveys
are conducted to gauge feedback and
interventions are designed to ensure
optimum customer service.
Furthermore, the company’s social
responsibility practices have put
PTCL at a unique spot among its
contemporaries. The organization’s
growing commitment to diversity
and inclusion in terms of gender
representation and development
opportunities to Persons with
Disabilities (PWDs) has further fostered
a workplace culture of inclusiveness.
With the launch of the Justuju
Internship Program for PWDs this year,
PTCL commits to go only forward with
its pledge for excellence. Our employee
volunteer force; PTCL Razakaar has set
a benchmark for corporate philanthropy
and continues to spread smiles year
wireless networks.
Users all over Pakistan saw significant
improvements on the speed metrics
Download Speed Experience (1.9% to
17.7%) and Upload Speed Experience
(4.8% to 13.9%) as well as the 4G
Availability (2.1-2.5 percentage points)
and 4G Coverage Experience (2.1%
to 7.2%) metrics.This recognition of
improvement is remarkable in a year
that was unprecedented in recent times,
with the outbreak of the COVID-19
virus halting or slowing down much
necessary technical work throughout
the globe. At a time when people are
heavily relying on the internet and
smooth connectivity, Zong proved itself
to be up to the task.
big relief to people who cannot af ford
costly cellphones with prices starting
from Rs50,000.
A cellphone maker in Karachi, who
asked not to be named, said sales of
2G phones are still thriving as many
people cannot afford over Rs10,000
cellphones.
According to the Pakistan
Telecommunication Authority website,
the number of cellphone subscribers
soared to 178 million in January from
168m in July 2020.
after year.
On the occasion, Syed Mazhar Hussain,
Group Chief Human Resource Officer,
PTCL & Ufone, said, “We are proud to
have won these two prestigious awards
by Global Diversity and Inclusion
Benchmarks (GDIB). We are fully
committed to foster a culture of diversity
and inclusion in not only making PTCL
a more inclusive place, but we are also
taking conscious steps in making our
society at large more inclusive as well.”
These awards recognize and
encourage organizations that use
GDIB standards to align organizational
policies for sustainable financial and
social performance. Approximately
30 companies were honoured in
various categories at the prestigious
awards ceremony in Karachi. With
such recognition, the GDIB awards
motivate companies to become more
inclusive, diverse and agile. PTCL
being honoured in the list of winners is
a testament to its commitment towards
its employees as well as the community
at large.
TRADE CHRONICLE - Mar - Apr - 2021 - Page # 30
TRADE CHRONICLE
Telenor Pakistan empowers 1,100 women with digital skills
under World Bank’s Girls Learn Women Earn Initiative
Telenor Pakistan has set a new
precedent for enabling women’s
education and digital literacy by
training 1,100 women as part of the
World Bank’s Girls Learn Women
Earn (GLWE) initiative. As part of
the programme,1,100 women were
trained in digital skills including, solving
business problems and upskilling
women/girls in utilising digital tools to
help scale their businesses.
While women make up half of the
country’s population, unfortunately
the share of girls among out-ofschool
children is even higher at 53%.
Women’s labour participation in the
country rests at 29% and only 1% of
women engage in entrepreneurship.
This was the core focus of the GLWE
initiative and in order to achieve the
committed targets, Telenor Create, the
Etisalat’s Group CEO Hatem
Dowidar visits Pakistan
A high powered delegation of
Etisalat Group, led by Group CEO
Hatem Dowidar, visited Pakistan to
meet with Federal Minister for IT &
Telecommunication, Syed Amin ul
Haque recently.
During the meeting, Federal Minister for
IT & Telecommunication welcomed the
delegation from Etisalat and discussed
design academy at Telenor Pakistan,
developed a customised curriculum
to train and enable aspiring women
entrepreneurs on digital skills.
Speaking on the development,
Khurrum Ashfaque, Chief Operating
Officer, Telenor Pakistan stated;
“The challenges that we face today
require collaborative efforts from all
stakeholders, and at Telenor Pakistan,
we’ve always considered it our
responsibility to create meaningful
matters related to the Telecom
Sector in Pakistan. Secretary
IT and Chairman PTCL Board,
Shoaib Ahmad Siddiqui, along
with senior officials from the Ministry
and PTCL management, attended the
meeting. Both the sides stressed on
the need for digitalization in the country
and agreed to enhance cooperation
towards this vision.
Syed Amin ul Haque, Minister for IT
& Telecommunication, said, “For the
first time in the history of Pakistan,
after the formulation
of the Right of Way
Policy, the MoITT also
credited with taking
the revolutionary step
of getting its approval
from all forums. The
policy sets out a fee
structure for working
impact in the society. Women’s
education and empowerment is
one of the pressing challenges
and we are proud that through this
project, we have successfully brought
about positive changeand empowered
1,100 female entrepreneurs to realise
their dreams.”
Out of 1,100 trained females, 770
participated from different parts
of Khyber Pakhtunkhwa including
Malakand, Swabi and Charsadda.
Moreover, urban female participants
were upskilled with industry knowledge
and relevant skills to enhance their
employability and enable them to create
a more human-centered business.
After successfully bringing ‘Girls Learn
Women Earn’ to a glorious conclusion
in collaboration with the World Bank,
Telenor Pakistan continues to stay
committed to leveraging technology
and its digital expertiseto promote
diversity and inclusion across the
country.
in the required areas. Federal Minister
also said that on recommendations from
Ministry of IT and Telecommunication,
the Federal Cabinet has unanimously
approved a gradual reduction in various
heavy taxes imposed on the Telecom
Sector and mobile phone users. This
is a major achievement that will directly
benefit, not only consumers, but will
also help spread the spirit of digital
Pakistan, i.e. connectivity, to remote
areas of the country.
Hatem Dowidar, Etisalat Group CEO,
acknowledged and appreciated HE
Minister IT and his team for taking
positive, pro-active steps for the
progress of the telecom market in
Pakistan. He commended their role on
the recent developments on the Rights
of Way (ROW) and their championing
the need for a healthy and sustainable
telecom market.
Inaugural ceremony of Airlink Smart
phone production facility
A state-of-the-art smart Phone
production facility established by
Airkink in Lahore was inaugurated
by Mr. Muhammad Hammad Azhar,
Federal Minister of Industries and
Production, on 20th March, 2021. The
event was attended by many renowned
personalities of the sector including Mr.
Almas Hyder, Chairman EDB& other
govt. officials.
Addressing this
historic occasion,
Mr. Muzzaffar
Hayat Piracha
CEO Airlink Communication
Ltd. expressed his gratitude
on the inauguration of the
production plant. He said, “I feel
honored that Airlink was able
to establish this state-of-the-art
facility in these unprecedented
times which resonates with the Prime
Minister’s vision to promote “Made in
Pakistan” products that will not only
create employment opportunities for
people of Pakistan but also reduce the
import bill, thus lessening the burden
on foreign exchange reserves.
TRADE CHRONICLE - Mar - Apr - 2021 - Page # 31
Steel & Allied Industry
Lower financing cost boost
Steel industry profit
ISL reports earnings of PKR 2,378Mn
International Steels Limited (ISL)
reported earnings of PKR 2,378Mn
(EPS: PKR 5.47) for 3QFY21, up
12.5x/1.1X YoY/QoQ. An analyst of
BMA Capital Management Ltd attributes
the primary reasons for growth in
profitability to inventory gains, higher
flat steel prices (↑15% QoQ), and
lower financial charges (↓61/12% YoY/
QoQ). Moreover, the total earnings for
9MFY21 clocked in at PKR 5,152Mn
(EPS: PKR 11.84), up 7.9x YoY.
Key highlights of the result are
summarized below: -
During 3QFY21, the company recorded
topline of PKR 17,402Mn (↑33/↓3%,
YoY/QoQ). Despite higher ex-factory
prices (↑15% QoQ), the sales figure
declined on a quarterly basis due to
lower sales volume. Furthermore,
9MFY21 sales increased to PKR
50,918Mn, up 32% YoY.
The sales and distribution expenses
declined 12% YoY but increased 63%
QoQ to PKR 257Mn. On the other hand,
the administration expenses increased
to 131Mn, up 107/47%, YoY/QoQ.
Other expenses increased sharply by
9.1x YoY but dipped 12% on a quarterly
basis to PKR 253Mn. While other
income was reported at PKR 55Mn
(↓79% QoQ), compared to loss of
PKR 127Mn in same period last year.
Finance charges dipped to PKR 158Mn
(↓61/12% YoY/QoQ), on account of
lower interest rates and debt levels.
ASL reports earning of Rs 2.23Mn
According to
research report
of BMA Capital,
Aisha Steel Mills
Limited (ASL)
reported earnings
of PKR 2,232Mn
(EPS: PKR 2.92)
during 3QFY21
A Chronicle report
(↑20% QoQ). Inventory gains, upbeat
international HRC-CRC spread ($67-
70), and lower finance costs (↓79/21%
YoY/QoQ) are the primary reasons
behind the earnings growth. The total
earnings for 9MFY21 clocked in at PKR
6.21/sh, a major rebound from 9MFY20
LPS of PKR 0.57/sh. Key highlights of
the result are summarized below: -
During 3QFY21, ASL registered a sales
figure of PKR 15,337Mn up 118%/8%,
YoY/QoQ due to higher ex-factory
prices (↑15% QoQ), and strong flat
steel demand. The total 9MFY21 sales
increased to PKR 40,754Mn, up 66%
YoY.
The company registered a 4 year
high gross margin of 24.6% in
3QFY21 compared to 10.5%/20.5% in
3QFY20/2QFY21 due to inventory gain
from raw material (HRC) purchased at
lower price. This translated into higher
gross profits at PKR 3,775Mn, up
410/22% YoY/QoQ.
The sales and distribution recorded a
surge of 11.8/3.4x YoY/QoQ to support
the sales increases and was reported
at PKR 106Mn. On the other hand,
the administration expenses recorded
a rather modest hike to PKR 82Mn,
↑5/1%, YoY/QoQ. Finance costs
decreased by 79/21% YoY/QoQ to PKR
206Mn, owing to stable interest rate
and lower debt levels.
Amreli Steels Ltd (ASTL) posts a
NPAT of PKR503mn in 3QFY21
ASTL has posted a NPAT of PKR503mn
(EPS: PKR1.69) for 3QFY21,
compared with a NLAT of PKR374mn
(LPS: PKR1.26) in SPLY, and up 60%
qoq. This has taken aggregate 9MFY21
NPAT to PKR926mn (EPS: PKR3.12)
compared with 9MFY20 NLAT of
PKR689mn (LPS: PKR2.32). The
3Q result came above our projected
EPS of PKR0.76, where the variance
emanated majorly from higher-thanexpected
gross margins (potentially
due to scrap bought at lower prices in
the previous quarter) and a lower- thanexpected
tax rate.
Key takeaways from 3QFY21 result
include:
Revenue has clocked in at PKR9.7bn
(up 26% yoy and 2% qoq), where the
yoy increase can be attributed to (i)
higher sales volume, Coming from a
low base, and (ii) higher rebar prices
as global scrap prices have surged
recently. The revenue was below our
expectations, however, most likely due
to lower-than-expected volumes.
ASTL has posted gross margins of
13.9%, well above our expectation
of 10.5%. This can be attributed to
inventory gains (international scrap
prices rose c.30% qoq) as the company
acquired scrap at c.US$350/ton
compared to 3QFY21 average scrap
price of US$440/ton. Gross margins
rose by a staggering 7.5ppt yoy and
3ppt qoq.
Finance cost came in at PKR395mn, in
line with our estimates, down 32% yoy
due to lower interest rates.
Courtesy - Intermarket Securities
Limited
MUGHAL Result Preview 3QFY21
Earnings to clock in at 4.41/share
• Mughal Iron & Steel Industries Limited
is scheduled to announce its 3QFY21
result on 29th April, wherein experts
expect the company to post PAT of PKR
1.28bn (EPS: PKR 4.41) as compared
to PKR 1.04bn (EPS: PKR 3.58) in
the preceding quarter. This will take
9MFY21 PAT to
PKR 2.68bn (EPS:
PKR 9.20).
• The growth in
earnings is mainly
attributed to
improved retention
price and higher
volumetric sales of
copper ingots.
TRADE CHRONICLE - Mar - Apr - 2021 - Page # 32
NBP and SMEDA sign MOU
National Bank of Pakistan (NBP)
and Small and Medium Enterprises
Development Authority (SMEDA)
inked a broad-based Memorandum
of Understanding (MoU) to promote
Financial Inclusion, Diversity and
Development of Small & Medium
Enterprises (SMEs) in the country.
The MoU was signed by Arif Usmani,
President & CEO NBP and Hashim
Raza, Chief Executive Officer
SMEDA. Senior officials of both
organizations also attended the signing
Faysal Bank Limited was honored
with five Global Diversity and Inclusion
Benchmark (GDIB) Awards during a
ceremony held recently in Karachi.
The awards were conferred to Tahir
Yaqoob Bhatti, Head Retail Banking
Faysal Bank, by Sima Kamil, Deputy
Governor State Bank of Pakistan, in
the categories of Vision, Leadership,
Structure, Recruitment and
Meezan Bank, the Best Bank in
Pakistan and Master Group, pioneer of
foam industry in Pakistan have recently
joined hands to streamline transaction
banking services for Master Group.
Under this agreement, Meezan Bank,
through the provision of its state-ofthe-art
online banking solution, named
eBiz+, will enable Master Group to fully
automate its customer collections and
supplier payments, catering to every
Pakistan’s leading Islamic bank,
BankIslami Pakistan Limited (BIPL)
has joined hands with Pirani Group
of Companies (manufacturer of
Super Power Bikes) for its new
consumer product of Bike Financing
to their Corporate, Commercial,
SME customer’s employees under
Employees Banking Services. Bike
Banking & Insurance
Faysal Bank Bags 5 Global Diversity
& Inclusion Benchmark Awards
ceremony. Usmani emphasized NBP’s
commitment to become the Nation’s
leading bank for promoting sustainable
growth and inclusive development.
During the MoU signing ceremony
both NBP and SMEDA representatives
agreed that there is a dire need to
promote small and medium businesses’
growth in Pakistan as these account
for 80 percent of non-agricultural labor
force, while their ability to access bank
financing is generally very limited.
Both the organizations would organize
financial literacy awareness and
Development
and Social
Responsibility.
Faysal Bank was ranked
amongst the top 10 winners
across all participating
organizations and is the
only Islamic Bank to win this
coveted accolade.
Speaking on the occasion, Ms. Habiba
Sulman, Head Diversity & Inclusion
Faysal Bank, said, “As an organization
that is on a transformation journey to
Meezan Bank signs agreement with Master Group of Industries
for provision of Transaction Banking Services
BankIslami join hands with Pirani
Group for Bike Financing
client’s needs with a configurable and
intelligent platform.
The agreement was signed by
Mr. Abdullah Ahmed – Group
Head, Corporate & Institutional
Banking, Meezan Bank and
Mr. Shahzad Malik – Managing
Director, Master Group. Also
present at the occasion were
Senior Executives of both
Financing is a Shariahcompliant
financing facility
through which one can own
its own dream bike on easy
and affordable monthly payments in a
Riba freeway.
The MoU signing ceremony
between BankIslami and Pirani
Group of Companies was held
at Pirani Group of Companies
Head Office on Wednesday
entrepreneurship training programs for
students of vocational and technical
institutions in collaboration with
community organizations NGOs,
chambers of commerce and industry
(CCIs) and trade associations.
Furthermore, efforts would also be
made to work with universities in
the country to motivate and support
students and fresh graduates for
managing business start-ups.
The MoU would also enable the NBP
staff to have adequate knowledge
and training to provide non-financial
advisory services.
becoming a full-fledged Islamic entity,
principles of inclusion and equality are
among the core values that guide our
journey forward. Within the banking
sector, Faysal Bank has the highest
percentage of women employed
relative to total workforce.”
organizations including
Mr. Saqib Ashraf – Head
of Transaction Banking,
Meezan Bank, Mr. Amir
Mushtaq Butt – Director Finance,
Master Group and others.
24th March 2021. Mr. Zaheer Elahi
Babar – Group Head – Corporate and
IBG of BankIslami and Mr. Navaid
Usman Memon Pirani – Director Pirani
Group of Companies signed the MoU.
TRADE CHRONICLE - Mar - Apr - 2021 - Page # 33
TRADE CHRONICLE
HBL creates history: becomes the first Pakistani bank
to open a branch in Beijing, China
HBL became the first Pakistani bank
to open a branch and serve clients
in Beijing, China’s capital city. The
inauguration ceremony for HBL Beijing
was attended by clients, regulators and
senior executives of the Bank from
across HBL’s international network.
From Pakistan, Mr. Jameel Ahmad,
Deputy Governor — State Bank
of Pakistan, Mr. Sultan Ali Altana,
Chairman - HBL, Mr. Muhammad
Aurangzeb, President & CEO HBL,
along with senior executives and
HBL’s customers, virtually joined the
ceremony. HBL Beijing offers a full
range of products & services for the
Bank’s esteemed clients.
HBL remains grateful to the
Governments of Pakistan and China
HBL’s Q1 profit jumps 108
percent to Rs8.560 billion
Habib Bank Limited consolidated net
profit increased 108 percent to Rs8.560
billion translating into earnings per
share (EPS) of Rs5.68 for the quarter
ended March 31, 2021, a bourse filing
said recently.
It earned Rs4.108 billion with EPS of
Rs2.79 in the same quarter last year.
Interim cash dividend of Rs1.75/share
was announced for the period ended
March 31, 2021, that was 1.7 percent,
the PSX notice said.
Net interest income (NII) of the bank
settled at Rs32.5 billion for Q1CY21,
up 16 percent, led by a sharp reduction
in interest expense.
“Interest earned remained stagnant
QoQ indicating that asset re-pricing
following the rate cuts has completed
for the bank,” an analyst at Arif Habib
Limited said. The bank’s total deposit
and the regulators for the trust and
confidence they have reposed on
the Bank, through the opening of the
branch.
HBL has created history by being
the first and only bank from Pakistan
to have a branch in Beijing and one
of the three banks from South Asia
and MENA region to offer end-to-end
RMB intermediation in China. Upon
commencement of business, HBL
Beijing has become HBL’s second
branch and its managing branch in
China; both branches in Beijing and
Urumqi are equipped with foreign
exchange and RMB license to better
facilitate customers’ requirements in
multiple currencies.
HBL’s presence in China will
allow the bank to interact with
State-Owned Enterprises
(SOEs) and leading financial
institutions involved in CPEC
and across Belt and Road
Initiative (BRI) corridors. China
is a very important market for
HBL not only in terms of the
business in China and CPEC,
but also for Chinese companies
working on projects in countries
across the HBL network.
base closed at Rs2.8 trillion. Average
domestic deposits increased by a multiyear
high of nearly 20 percent over
Q12020, with average current accounts
rising by more than Rs120 billion.
This led to a nearly Rs500 billion
expansion in the bank’s average
balance sheet in Q12021.
Consequently, despite a much lower
interest rate environment, net interest
income rose to Rs32.5 billion, a 16
percent growth over Q12020.
Expenses remain well contained
despite continued investments in
people and technology. The bank
reduced its administrative expenses by
seven percent over Q12020 as the cost
to income ratio (excluding capital gains)
improved to 58.4 percent in Q12021
from 81.4 percent in Q12020.
Total non-performing loans (NPLs) of
HBL declined by Rs 0.7 billion over
December 2020, with the infection ratio
remaining stable at a record low of 6.3
percent. Helped by strong profitability,
Meezan Bank wins
‘Employer of the Year’
Diamond Award
Meezan Bank, Pakistan’s first and
the largest Islamic bank has been
recognized with the ‘Employer of the
Year’ Diamond Award in the category
of ‘Large National Companies’ by
Employers’ Federation of Pakistan
(EFP) – Pakistan’s largest forum for
employers.
The award was announced at the 8th
ceremony of the Employer of the Year
Awards held at a local hotel in Karachi.
Mr. Khalid Zaman Khan – Group
Head, Human Resources, Learning &
Development, Meezan Bank received
the award from Honorable President of
Pakistan – Dr. Arif Alvi.
the bank’s Tier 1 CAR rose to 13.9
percent, with total CAR increasing to
17.9 percent, a statement said.
Total deposit base closed at Rs2.8
trillion, with robust CA and CASA ratios
of 35.1 percent and 83.1 percent,
respectively. Average domestic
deposits increased by a multi-year high
of nearly 20 percent over Q12020, with
average current accounts rising by
more than Rs120 billion.
HBL President and CEO Muhammad
Aurangzeb said, “The bank’s growth
momentum continues in the new year
with all activity drivers showing an
upward trajectory. The growth was
broad-based across all business lines,
with strong performance from the
deposits, cards, trade and consumer
finance businesses.”
TRADE CHRONICLE - Mar - Apr - 2021 - Page # 34
TRADE CHRONICLE
EFU General Insurance Limited
Annual Financial Statement
The Board of Directors of EFU General
Insurance Limited approved the annual
financial statements for the year ended
31 December 2020. Despite the Covid
19 Pandemic the Company holds a
leading position in non-life insurance
business. It created another history
by becoming the first company to
underwrite premiums (including Takaful
Contributions) of 22.6 billion.
The underwriting profit for the year was
Rs. 739 million as compared to Rs.
505 million in the preceding year i. e.
increase by 46%. The after tax profit
was Rs. 2,371 million (earning per
share of Rs. 11.85). The market value
of investments and property increased
from Rs.28 billion in the preceding year
to Rs. 30 billion. The Board of Directors
recommended final cash dividend @ of
Rs. 5.50 per share (i.e 55%) in addition
to already paid three interim cash
EFU General –Dividend disbursed within
two working days after approval
At the Annual General Meeting held
on March 31, 2021, the shareholders
approved the annual financial
statements of the Company and Final
Dividend of 55 % thereby making total
dividend payout of Rs.10 for the year
2020 (including three interim dividends
of Rs. 1.50 per share already paid).
UBL posts strong profits of over
Rs34bn in 2020
UBL reported profit after tax of Rs
20.9 billion for the financial year ended
2020, which was 9% higher than 2019.
These results were delivered by the
highly dedicated UBL team which has
worked with the utmost discipline and
perseverance despite the challenges
from Covid-19.
The Bank maintained strong payouts to
shareholders, declaring dividends of Rs
14.7 billion for the year 2020 (Rs 12.0
per share). The Bank’s capital position
remains strong and provides a solid
foundation to support future business
expansion. The Capital Adequacy
Ratio (CAR) was measured at 24.4%
as at December 31, 2020, an excess
of 11.9% over the applicable minimum
regulatory requirements.
UBL maintains one of the largest
dividends of Rs. 1.50 per share
i.e 15% in each quarter, making
total distribution for the year to
100 % (i.e Rs. 10.00 per share).
Director Mr. Rafique R. Bhimjee
commended the Company’s
performance for the year and stated
that the growth in premiums in 2020
was remarkable as it was achieved
despite Covid 19 pandemic. reduced
vehicle production and lesser imports.
This achievement was made possible
by years of experience in serving
the needs of the valued and loyal
customers. The company’s Balance
Sheet is strongest in the industry and
I am sure company will continue to
maintain its lead position.
The Company is rated by A. M. Best,
the world’s specialized insurance
rating agency and has assigned
Financial Strength Rating of “B+” and
a Long-Term Issuer Credit Rating of
“bbb-” with Stable Outlook for both.
The Company
held leading
position in nonlife
insurance
business. It created another history
by becoming the first company to
underwrite premiums (including Takaful
Contributions) of Rs. 22.6 billion.
The underwriting profit for the year
was Rs. 739 million and the after tax
networks in Pakistan.
The Bank serves over
10 million customers
nationwide, through
its footprint of 1,356 branches,
including 100 Islamic branches,
1,442 ATMs and over 35,000
“UBL Omni” dukaans. The
network is well supported by our
innovative and transformative
UBL Digital app serving over 1.5
million customers today.
Shazad G Dada, President
and CEO of UBL said, “Despite
the challenges brought about by the
pandemic, UBL delivered solid results.
Our strong balance sheet gives us
the foundations for future growth. We
will build on our award-winning digital
proposition, introducing innovative
banking solutions. Our focus is on
enhancing performance across our
core businesses and building greater
operational efficiencies and agility
The Company is also rated by two
national rating agencies i.e. VIS Credit
Rating Company Ltd. and Pakistan
Credit Rating Agency. Both the rating
agencies have assigned rating of AA+
with stable outlook.
Chairman Mr. Saifuddin Zoomkawala
commented on the Company’s
performance and stated that this result
is because the Company is managed
by the best insurance professionals in
the country and continuous investment
in people, systems and processes.
profit was Rs. 2,371 million (earning per
share was Rs. 11.85).
The Final Cash Dividend 2020 @ Rs.
5.50 per share approved at Annual
General Meeting held on March 31,
2021 has been credited directly into
the designated bank account of the
shareholders on 2nd April 2021 i.e.
within 2 working days of Annual General
meeting.
across the organization. I am proud
of the way our people have shown
great resilience to maintain the highest
level of customer service during the
pandemic. They are our greatest asset
and we will continue to invest in their
development and wellbeing. Customer
centricity is at the heart of everything we
do, and we are committed to providing
market leading services to our evergrowing
customer base.”
TRADE CHRONICLE - Mar - Apr - 2021 - Page # 35
TRADE CHRONICLE
Parwaaz, HBL and IBP to train Cybersecurity specialists
to secure Pakistan’s financial sector
Parwaaz, HBL and Institute of Bankers
Pakistan (IBP) signed a Memorandum
of Collaboration (MoC) to develop a
skilling program for Parwaaz’s financial
services incubator. The incubator will
equip current and aspiring bankers
with skills to become cybersecurity
specialists.
The MoC was signed by Mr. Jawad
Khan, Country Head Parwaaz and
CEO Punjab Skills Development Fund
(PSDF); Mr. Muhammad Aurangzeb,
President & CEO - HBL and Mr.
Mansur- Ur- Rehman Khan, CEO - IBP.
This tripartite partnership is a crucial
step in closing the national skills gap.
PSDF, through the Parwaaz platform,
will fund the development of the training
program, manage the training delivery,
Meezan Bank, the Best Bank in
Pakistan has announced the provision
of corporate & transaction banking
services to Tufail Group– one of the
largest manufacturers of industrial
chemicals in Pakistan. As per the
memorandum of understanding (MoU)
signed between the two parties,
Meezan Bank will, provide a core suite
of payment & collection services to
Tufail Group, through eBiz+, its stateof-the-art
portal designed to automate
complex payment workflows.
The agreement was recently signed by
Mr. Zubair Tufail - Director & CEO, Tufail
Group and Mr. Muhammad Abdullah
Ahmed - Group Head, Corporate &
and harness its vast network to engage
relevant financial institutes to create
job opportunities for the graduates.
HBL will lead the identification of
banking professionals who are apt for
this training and the bank will also offer
job placements to selected graduates.
IBP’s role is to select cybersecurity
subject experts and develop course
curriculum with support from HBL
for the training. IBP will mobilize
applicants for training, conduct pre
and post assessment of the training on
graduate’s expertise and facilitate them
in accessing employment opportunities
in the financial services sector.
During the MoC signing Country
Head Parwaaz, Mr. Jawad said,
“Cybersecurity is a fast-growing
specialization globally and as the
financial world digitizes, it is
a highly sought-after area
of expertise for current and
upcoming professionals
in the banking sector.
This is the first time that a
certification in cybersecurity
is being developed and
offered in Pakistan.
Meezan Bank provides a one-stop automation solution
to Tufail Group to drive digital collections & payments
Institutional Banking, Meezan Bank at
Tufail Group’s Head Office, Karachi.
Commenting at the occasion, Mr.
Abdullah Ahmed - Group Head,
Corporate & Institutional Banking,
Meezan Bank, said: “As one of the
largest players in the industry, Meezan
Bank is doubling down on its efforts
to drive innovative digital cash flow
management for businesses and
corporates in Pakistan.
By bringing in the strengths of our
customizable, business-focused
product, eBiz+, we are not only
speeding up Tufail Group’s cash
collection cycle but will also enable
them to cut down on
the hours spent on
company books, thus
lowering their risks
through streamlined
processes and better
managed business
relations.”
MCB Bank earns
Rs6.79bln Q1 profit
MCB Bank’s unconsolidated net profit
inched up percent to Rs6.79 billion for
the quarter ended March 31, 2021,
translating into EPS of of Rs5.73, a
bourse filing said.
It earned Rs6.519 billion with EPS of
Rs5.50 in the corresponding period last
year. The bank announced interim cash
dividend at Rs4.5 per share, which was
45 percent, in continuation of its highest
dividend pay-out trend.
The MCB board of directors met under
the Chairmanship of Mian Mohammad
Mansha, to review the performance of
the bank and approve the condensed
interim financial statements for the first
quarter ended March 31, 2021. “The
result was above expectations due to
recognition of reversal in provisioning
and higher than anticipated fee
income,” an analyst at KASB Securities
said.
Net interest income for the period
clocked in at Rs16.29 billion compared
with net interest income of Rs17.28
billion in the corresponding period
last year. “Net Interest Income slightly
decreased by six percent in Q1CY21 as
the full impact of asset re-pricing was
taken into account.” Total non-interest
income stood at Rs4.97 billion in the
quarter under review as against Rs4.16
billion last year. “Non-interest income
increased by 19 percent largely driven
by 16 percent growth in fee income
and gain on sale of securities worth
Rs367 million.” The bank recognised a
provisioning reversal of Rs213 million
during the quarter under review that
lent further support to the earnings.
Operating expenses slightly increased
by 3 percent to Rs10.1 billion.
The total asset base of the bank on
an unconsolidated basis was reported
at Rs1.77 trillion. Analysis of the asset
mix highlights that the net investments
increased by Rs75 billion (7.4 percent)
whereas the gross advances decreased
by Rs33 billion (6.5 percent) over
December 2020. However, consumer
lending book grew by Rs2.2 billion (8
percent) in the first quarter 2021.
The non-performing loan (NPLs) base
of the bank hence recorded a marginal
increase of 1.2 percent over December
2020 to report at Rs51.8 billion.
TRADE CHRONICLE - Mar - Apr - 2021 - Page # 36
TRADE CHRONICLE
Travel World
Operational losses brought down
to Rs680m in 2020: PIA
Pakistan International Airlines (PIA)
has announced its financial results for
2020 as it submitted audited accounts
with the Stock Exchange of Pakistan,
claiming that it had reduced its
operational losses from Rs6.130 billion
in 2019 to less than Rs680 million in
2020.
A PIA spokesman said
in a press release that
what had been termed
one of the worst year in
decades for the global
aviation industry whereby
even largest players in
the market had obtained
huge bailout packages
from their respective
governments to stay afloat,
PIA had come up with a
noteworthy performance,
nearly breaking even on
operational losses and
reducing its overall losses
by 33.7pc.
According to the airlines`
Emirates announces special
fares for Pakistani market
Emirates is launching special fares in
First Class and Business Class, so you
can now book your holiday for less and
plan to meet friends
and family. With
Emirates’ generous
booking policies,
customers have the
option to extend
ticket validity for up to
threeyears,enjoying
greater flexibility and
confidence when
planning travel during
unprecedented times.
Travellers in Pakistan
can look forward to
flight deals on all
routesin Emirates’
global network,
with return fares to
New York starting at
audited financial results for
the year 2020, PIA reduced
its operational losses
fromRs6.130 billion in 2019
to less than Rs680 million in 2020,
which would have been easily covered
if revenue streams had not also fallen
by nearly 35.7pc. PIA achieved a
revenue of Rs94.989 billion, down from
Rs147 billion achieved in 2019, the
main reason for which was Covid-19
onlyPKR 309,500 in Business
Class or PKR 618,280 in First
Class. Special fares areavailable
for bookings made from 13to 26
April 2021, valid for travel between 16
April and 30 September 2021 (Blackout
dates apply)
restrictions affecting all of PIA routes,
reducing the overall operations by
nearly half.
PIA Chief Executive Officer (CEO)
Air Marshal Arshad expressed his
satisfaction on the financial results and
acknowledged the team effort put forth
by PIA and the support extended to it
by all the stakeholders, including the
government of Pakistan.
He said PIA is making all
efforts to face and cope
up with Covid-19 scenario
and though the outlook
remains challenging in
2021 as well, it is hoped
that with the `support of
the government, Pakistani
customers and dedication
of PIA employees, we
will emerge stronger than
before.
The testing times shall
soon be over and the
strength acquired by
PIA with the reforms,
restructuring and financial
discipline will bear fruit in
the near future.
Having participated actively in the UAE’s
vaccination programme, Emirates is
confident that travel will resume in a
safe manner as we gradually restart
operations across our global network. To
date, over 35,000 Emirates employees
have received their COVID-19 vaccine
shot from one of the
Emirates’ vaccination
centres, with over
85% of airline pilots
and cabin crew
already completing
two vaccine doses.
Customers can
look forward to a
safe and stress-free
travel experience as
Emirates has placed
a heavy emphasis on
health and safety with
new comprehensive
measuresat every
step of the journey.
TRADE CHRONICLE - Mar - Apr - 2021 - Page # 37
TRADE CHRONICLE
BREAK BULK DRY BULK FORWARDING FSRU
GAS CARRIERS PROJECT CARGO RO / RO TANKERS
TRADE CHRONICLE
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