TC Mar-Apr 2021 Issue

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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

TRADE CHRONICLE


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TRADE CHRONICLE


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

Circulation Audited by

ABC

CONTENTS

Founded by:

Late Abdul Rauf Siddiqi

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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

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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

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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

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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,

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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)

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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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