TC July-August 2021 Issue

www.tradechronicle.com Vol 68 -Issue Nos. 7 & 8 - Jul - Aug. 2021 Rs. 250/-

ESTABLISHED IN MARCH 1953

68 th - YEAR OF PUBLICATION

TRADE CHRONICLE

PAKISTAN OLDEST MONTHLY MAGAZINE OF COMMERCE, TRADE, INDUSTRY & PUBLIC AFFAIRS

14

th

August

Independence

Day

Pakistan anticipates a rise in bilateral

trade with Afghanistan

The glass industry needs a continuous

gas supply to maintain an upward

trajectory

Fall in cotton production may affect

textile export target for FY22

TRADE CHRONICLE

www.tradechronicle.com Vol. 68 Issue Nos. 7 & 8 Jul - Aug 2021 Rs. 250/-

TRADE CHRONICLE

PAKISTAN OLDEST MONTHLY MAGAZINE OF COMMERCE, TRADE, INDUSTRY & PUBLIC AFFAIRS

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CONTENTS

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editorial

• Pakistan anticipates a rise in bilateral trade with Afghanistan

editorial note

• The glass industry needs a continuous gas supply to maintain an upward

trajectory

• Fall in cotton production may affect textile export target for FY22

SPECIAL REPORT

14 th august Pakistan independence day

• Message from President Dr Arif Alvi

• Message from PM Imran Khan

• Pakistan was created after huge sacrifices, says President Dr Arif Alvi

• ‘Jinnah’s influence is indelible’

By Peerzada Salman

article & feature

• A mixed picture

By Nasir Jamal

• Life insurance sector of Pakistan: A window of economic growth

By Dr. Muhammad Nawaz Iqbal

• Putting efforts to resolve grievances of clients, Federal Insurance Ombudsman

ports, Shipping & railway

• Pakistan succeeds in saving precious crew life and averted oil spill during

July/Aug

By Abdul Rab Siddiqi

• ‘Pakistan needs new strategy to rationalize port charges’

• Minister for Railways Azam Swati visits Hutchison Ports Pakistan (SAPT)

• Federal Minister for Maritime Affairs Ali Zaidi visits Karachi port

• The KPT performance in 2020-21

• Freight corridor project feasibility report ready

• Maritime tourism: PNSC to support ferry services: Ali Zaidi

• A review of PNSC performance for the nine months period ended March 31,

2021

• PIBTL curtails environmental pollution and modernize the port infrastructure

of the country

leather industry

• Pakistan leather sector exports increased in July 2021

• PFMA plans footwear and allied industry facilities in Quaid-e-Azam Business

Park, Lahore

• Pakistan sacrificed about 5.86 million animals during last Eid-ul-Azha

• The new team of CLE is optimistic for growth in export during FY21-22

• Bangladesh sets export target of $1.031 billion for leather industry

regular features

• Automobile News, Banking & Insurance News, Cement Industry,

• People Events, Telecommunication News, Travel World, Steel & Allied Industry

TRADE CHRONICLE - Jul - Aug - 2021 - Page # 3

TRADE CHRONICLE

We begin with the name of Allah the Magnificient

Pakistan anticipates a rise in bilateral trade with Afghanistan

On August 15, the Taliban took over Kabul and declared their rule over

Afghanistan. Taliban showed favourable sea change with the grant of

public amnesty and thus adopted a soft diplomatic approach. They asked

fleeing people not to fear but return to peace. Likewise, the Taliban’s open

talks to form inclusive government may be the best strategy and good

omen for Afghanistan itself, besides representing a broader dealing more

acceptable to the world at large and regional countries.

FROM THE

EDITOR’S

DESK

ABDUL RAB SIDDIQI

Taliban spokesperson Zabihullah Mujahid at his first press conference,

said that the Taliban would continue trading with neighbouring countries

and steps would be taken to promote trade. Business people and traders

widely welcomed the announcement and the Pakistan Stock Exchange

(PSX) and the country’s bilateral trade with Afghanistan saw a short term

sudden rise.

Pakistan exported goods worth US$1bn to Afghanistan in FY21, less

than 4% of total exports and just 0.3% of GDP. More than half of this is

food commodities and the rest comprises chemicals, pharmaceuticals,

cement, packaging material, etc. Because of the small size of the Pakistan-

Afghanistan trade, the impact of any prolonged disruption to trade on most

listed Pakistani companies is marginal, stock experts believe. There may

be grounds for Pakistani exports to increase once trade does resume, with

Pakistan likely to recognize a government led by the Taliban or includes

them.

On a negative note, a review of export data suggests that shipments to

Afghanistan have been on a continuous decline in the past ten years –

from nearly US$2.0bn in FY11 to less than US$1bn in FY20. If exports to

Afghanistan increase, the cement sector may be a crucial beneficiary

(Pakistan exported 4.7mn tons of cement to Afghanistan in FY11 vs just

2.5mn tons in FY21).

Moreover, in the medium to longer-term, provided Afghanistan remains

stable, Pakistan may finally link up with the Central Asian Republics in a

trade and energy corridor. This vision has been in place since at least the

1990s.

However, on a concerning note, experts fear that the foreign investment

in Pakistan from the world would further fall in the coming months due to

fear of any prolong instability in Afghanistan. Resultantly, the investors

would wait till things settle down in Kabul.

The Taliban takeover in Afghanistan has several unanswered questions.

Key among them is the shape of the future Afghanistan government, its

acceptability to the international community, and whether the promises

made by the Taliban will be honoured, particularly the amnesty to

surrendered security forces and government workers.


TRADE CHRONICLE

The non-tariff barriers,

sluggish bureaucracy, poor

infrastructure and unstable

geopolitics are significant

hurdles to trade with

Afghanistan, local media

pointed out and added that the

previous Afghan government

led by President Ashraf Ghani

was more dependent on India,

Iran and its Central Asian

neighbours for its trade needs.

So, it bought fewer Pakistani

products, especially cement and

iron, to meet its requirements.

Analysts said with less Indian

influence, Pakistan might

The Government’s constructive

policies, especially in the

construction industry, have

given the country a muchneeded

injection of funds and

employment.

Dependent industries such

as glass manufacturing have

benefited from this boom and

continued to grow despite the

Covid-19 pandemic. Currently,

the glass industry employs

approximately 40,000 direct

personnel, which translated to

roughly 160,000 people reliant on

this sector.

Over thirty-five glass companies

in Pakistan produced various

glass products such as float/sheet

glass, bottles and containers,

tableware, electric glass tubes,

bulbs, neutral glass tubing etc.

The production capacity of these

units ranged from 15 metric tons

to over 1,000 tons per day.

In addition to manufacturing glass

items for the domestic industry,

most of these companies export

their products worldwide, thereby

earning the Government much

increase exports to Afghanis in

the long run. “If trade diversion

happens and some quantity of

it is diverted to Pakistan, then

these industries in Pakistan

stand to benefit from such

proposition,” said the report

released by a local research

house.

Editorial note

The glass industry needs a continuous gas

supply to maintain an upward trajectory

required

f o r e i g n

exchange.

Unfortunately,

the recent energy shortages in

the country, specifically in gas

production, has led to a massive

dilemma for this industry.

To clarify, glass production is a

continuous process. Furnaces,

once fired, cannot be shut down

until they complete their lifespan.

Due to this fact, the industry

tries to maintain a 7 to 10 days

reserve supply of alternate

fuel, i.e., Furnace Oil, for use

in emergencies to keep their

furnaces operational; the cost

runs into billions of rupees.

On 17th July 2021, the gas

supply to all the glass units

was disconnected without any

prior notification, forcing the

manufacturers to use their

reserve furnace oil as an alternate

fuel source. To make matters

worse, the Government banned

the sale/supply of furnace oil to

the general industry (including the

glass industry) and restricted the

supply to IPPs only. This policy is

a blow to the glass industry.

All Pakistan Glass Manufacturers

We conclude here with an

optimistic note from AHL

Research, that in the longer

term, stability in Afghanistan

bodes well for the entire

region in general and Pakistan-

Afghanistan relations in

particular. This could be a gamechanger

for Pakistan in terms

of economic development

as Afghanistan can function

as a link between Pakistan

and central Asia. Moreover,

Afghanistan’s geographical

location relies on neighbouring

countries for transit to its other

trading partners.

Therefore, the opening of trade

routes will benefit Afghanistan

and aid Pakistan’s CPEC

expansion, a step that will help

establish Pakistan as a regional

trade corridor.

Association (APGMA) has

appealed to the Government to

resolve the energy issue on a

priority basis to help maintain the

glass industry’s uninterrupted

growth. The representative body

would like to ask, how can any

industry survive when restricted

in this manner?

Gas and Furnace Oil are the

primary sources of fuel required

to produce glass. Suppose these

primary sources, i.e., gas and sale/

supply of furnace oil, are denied

to this segment, in that case, the

result will inevitably be the closure

of the glass industry, which in

turn will hurt the construction and

other related industries.

The glass industry is a significant

import substitute. If it is forced to

close, the import bill for glass will

jump considerably and up to over

US $ 1 billion annually.

We urged the Government

of Pakistan to provide an

uninterrupted supply of RLNG

to the continuous process

glass industry and ensure the

availability of furnace oil as an

alternative fuel for emergency

use, failing which the entire glass

industry will collapse.


TRADE CHRONICLE

Fall in cotton production may affect

textile export target for FY22

The Pakistan government has set

an export target of $ 40 billion

for goods and services for 2021-

22. The export target for textiles

stood at $ 21 billion, non-textiles

at $ 11.5 billion, and services at $

7.5 billion.

The textile export target can

be achieved if the government

gives serious attention to cotton

production - the primary raw

material for the textile industry.

Experts believe that the country

will likely miss the cotton

production target of 10.5 million

bales due to high inputs costs,

including fertilizers, diesel,

tractors, pesticides, plus water

shortage issues. Hence,

supporting cotton crops

will benefit millions of

farmers and support the

most important industrial and

export sector of textiles, while

exports will boost.

Pakistan is the fifth largest

producer of cotton globally,

with an average production of

1,350 metric tonnes. The current

cotton production in the country

is just about half of what it was

producing until a few years ago

and is expected to decrease

further in the next few years.

The “cotton country” now faces

a shortage of cotton and has to

import it to meet its needs. This

decrease in cotton production was

due to the decrease in incentives

to the farmers compared to its

preceding years. Experts attribute

the decline in cotton production

to a lack of research and

development. Besides, farmers

are cultivating other commodities

aside from cotton, mainly

sugarcane, rice and maize. Thus,

in the last five years, the area

under cultivation for the cotton

crop has reduced, while the area

under sugarcane, rice and maize

crops has increased.

We hope that relevant authorities

would take immediate steps to

manage this problem, provide

subsidies and loans to the

farmers, and establish an institute

for the cotton crop to educate the

farmers about modern machinery

and fertilizers.

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TRADE CHRONICLE

th

Message from President Dr Arif Alvi

I wish to

share in the

happiness

of my fellow

countrymen

on the

auspicious

occasion

of the 75th

Independence

Day of

Pakistan.

This day

reminds us

to pay rich tribute to the Father of the

Nation, Quaid-e-Azam Muhammad Ali

Jinnah, and leaders and workers of

the Pakistan Movement who created a

separate homeland for the Muslims of

the Indian sub-continent.

During this 74 years journey, Pakistan

faced many challenges but it

successfully overcame them with hard

work, sacrifices and the support of the

entire nation. Pakistanis are a brilliant

and brave nation, that has made

tremendous successes in various

fields making the country distinguished

from other nations. The world must

appreciate the fact that Pakistan

Message from PM Imran Khan

As we hoist

our national

flag to mark

Independence

Day, we must

reiterate the

firm resolve

to uphold

our national

values of

unity, faith and

discipline as

envisioned by

Quaid-i-Azam

Muhammad

Ali Jinnah. We have surmounted

monumental challenges during the

course of our history to emerge as a

united, peaceful and resilient nation.

Even today, the changing regional

dynamics along with some domestic

issues continue to test our resolve.

singularly fought a

long-drawn war against

terrorism and eventually

defeated the menace. Similarly, the

development of nuclear deterrence

by Pakistan is a great achievement

that has made the country’s defence

impregnable. Not to forget that Pakistan

is a host to millions of Afghan refugees

for many decades. Pakistan also won

laurels worldwide for successfully

handling the Covid-19 pandemic. For

this great achievement, I pay homage

to doctors and paramedics, religious

leaders, media, National Command and

Operation Centre, Security Forces and

the entire nation whose cooperation

made it possible to contain the spread

of the COVID-19 virus.

We have significantly improved all our

macro-economic indicators which are

now positively impacting the lives of the

masses. Despite these achievements,

Pakistan is still facing many challenges

on social and economic fronts, such

as increasing population, lack of

health and education facilities, stunted

growth, malnutrition and various other

diseases. It is encouraging to note

that the government has taken certain

steps for the empowerment of women

and Persons with Disabilities (PWDs)

by providing them loans and skills to

Like each time, we will also

overcome these obstacles

with our characteristic

determination and come out stronger

as a nation.

Pakistan today can stand tall among

the comity of nations. Our policies

towards reviving the economy, handling

the pandemic, and protecting the

environment have received universal

acclaim. On this occasion, we should

not forget our Kashmiri brothers and

sisters in Indian Illegally Occupied

Jammu and Kashmir (IIOJK) struggling

for their right to self-determination under

extremely adverse circumstances

marked by illegal Indian occupation

and unspeakable repression. Pakistan

will continue to extend its full support

to the Kashmiris in their just cause.

Kashmiris are looking up to the

international community to fulfil the

promises made to them. Pakistan has

make them financially independent.

Additionally, the Government has

initiated various social welfare

programmes under the flagship

“Ehsaas Program” to provide education,

health, and financial assistance to the

impoverished segments of society.

However, we need to make more efforts

for the facilitation and welfare of PWDs

and the empowerment of women by

ensuring the provision of their right

to inheritance. On this Independence

Day, we also reaffirm our commitment

to continue our moral, political and

diplomatic support to the cause of the

Jammu and Kashmir dispute.

I assure my Kashmiri brethren that

Pakistan would continue to stand by

them till the achievement of their right to

self-determination in accordance with

the United Nations Security Council’s

resolutions. I also urge the international

community to play its role to compel

India to stop committing human rights

abuses against the innocent Muslims

of Indian Illegally Occupied Jammu

and Kashmir and fulfil its commitment

to grant Kashmiris their right to selfdetermination.

Let’s pledge to follow

the ideals of the Quaid-e-Azam

Muhammad Ali Jinnah, and work for the

unity and prosperity of Pakistan. May

Allah be with us all. Ameen!

rendered immense sacrifices and paid a

heavy price for instability on its Western

border. We have consistently stressed

that there is no military solution to

the conflict in Afghanistan. Pakistan

will continue to support a negotiated

political settlement for durable peace

and stability in Afghanistan. We want

peace within and peace without, to

pursue our socio-economic agenda.

The Naya Pakistan has shifted its focus

from geo-politics to geo-economics,

with the well-being and welfare of our

people as the topmost priority. Our

government has undertaken every

possible effort for the development and

prosperity of Pakistan. This country is

undoubtedly a gift of Allah Almighty for

us. I once again felicitate all Pakistanis,

both inland and overseas, on this

auspicious occasion. I urge you to play

your part in making Pakistan a proud,

prosperous and peaceful nation state.


TRADE CHRONICLE

Pakistan was created

after huge sacrifices, says

President Dr Arif Alvi

Addressing a national flag hoisting

ceremony arranged at the Aiwane-Sadr

to mark Pakistan’s 75th

Independence Day, President Dr Arif

Alvi said that owing to the string of

successes achieved by the nation on

different occasions, its future course

was very bright and promising. “Our

past, present and future will set the

course for the destination ahead,” he

added.

The president felicitating the nation

on the Independence Day, said that

Pakistan was created after huge

‘Jinnah’s influence is indelible’

By Peerzada Salman

Quaid-i-Azam Mohammad Ali Jinnah’s

role was pivotal, critical and decisive

to Pakistan’s establishment. This was

said by Dr Ishtiaq Ahmed, Professor

Emeritus Political Science, Stockholm

University, while concluding his talk

on ‘Jinnah’s political career’ organised

online by the Aga Khan University

recently. Prof Ahmed, referring to his

book Jinnah: His Successes, Failures,

Role in History, said that there were

some controversies associated with his

politics.

“There is no doubt that Jinnah was

one of the most fascinating leaders

produced by the Indian subcontinent,

and his influence is indelible. I have

even argued that he fits very well

into the idea of [Thomas] Carlyle’s

heroes who make history. Then I

have used the Marxist argument that

men make history not in a situation

of their own choice but in the existing

circumstances.” The professor said he

had placed Jinnah sahib’s political role

into four phases. The first phase was

“Jinnah the Indian nationalist”.

He joined the Indian National Congress

in 1906 and quickly became a prominent

leader of the Congress. Just before he

did that he had [already] assumed a

political career. “The high point of his

achievement is the Lucknow Pact.

It was a pact arranged between the

Indian National Congress and the All

India Muslim League in which Jinnah

was given the role of chairman.” But

then came the anticlimax: Gandhi

sacrifices and the untiring endeavours

of the dynamic leadership of Pakistan

Movement led by Quaid-i-Azam

Muhammad Ali Jinnah.

He mentioned that Pakistan was also

becoming an industrial country and

a hub of information technology after

meeting its agricultural requirements.

“Whether it was earthquake during

2005, floods of 2010 or COVID-19

pandemic, the nation proved its mettle.

Pakistan is transforming into a digital

country with a thriving knowledgebased

economy,” he added.

He said the incumbent government

endeavour the achievement of basic

principles of Riasat-e-Madina were

based upon social justice, provision of

returned to India from South

Africa having earned a reputation

as a champion of the rights of

Indians of all sorts. “When he

comes to India, the Gujarati-speaking

people arrange a reception for him

where Jinnah goes out of the way to

welcome him, praising his services to

the Indians in South Africa. Gandhi,

when he gets up, expresses his joy that

‘look a Mohammedan leader is also

here’ and according to Stanley Wolpert,

Jinnah was offended by it. He thought

he was an Indian leader and not just a

Mohammedan leader. In 1917 another

clash takes place. In a meeting, Jinnah

sahib gets up and speaks in English.

Gandhi and his supporters indulge in

some sort of heckling saying ‘speak

in Gujarati, your mother tongue.’”

Eventually, Jinnah left the Congress.

Prof Ahmed called the second phase of

his political life “Muslim humanitarian”.

From 1920 to 1937, Jinnah sahib

argued that India was not home to

any one nation. Now he said that India

was constituted by many nationalities

— Hindus, Muslims, Sikhs, Dalits

and Dravidians. He thought that any

constitutional arrangement in India must

give all the powers to the provinces and

only a very loose Indian union could be

agreed to, having essential services to

deal with. Subsequently, he became

the leader of the Muslim League with

loyalists such as Sir Aga Khan.

The professor emphasised that the

most important phase was the third one

“where we get Pakistan”. This stage

emerged when the British introduced

the 1935 Act according to which, India

was to be a loose federation in which the

health and education facilities, shelter

and eradication of poverty.

During the COVID-19, the prime

minister decided against complete

lockdown and on the basis of data,

about Rs170 billion was provided to

15 million poor and deserving families

under the government’s social flagship

Ehsaas programme. About Rs400 to

Rs450 billion worth of housing projects

were in the pipeline with extension

of loaning facilities to the people to

construct their houses, he said.

The country’s exports surged with

record $30 billion remittances and

huge tax collection, Pakistan Stock

Exchange also broke the previous

records, he added.

princely states would

have maximum

autonomy and

as long as they

did not join

the federation

voluntarily, the

federal part of the

constitution could not b e

put into practice. Under that system,

elections were held in 1937.

He said, “The Indian National Congress,

especially Nehru, in 1936 said things

which set the alarm bells going. He

said that in a free united India we will

abolish the zameendari system, and

not only that we will reconstruct India

in the light of the Soviet Socialist type

of economy and political system. Nehru

goes on to say that there are only two

powers in India: the Congress and the

British. A lesser leader would’ve given

up. But Jinnah decides to fight back

and challenges the Congress’s claims.

Jinnah then embarks upon a concerted,

relentless campaign saying that the

Congress represents Hindu raj.

The professor said the fear that was

generated was that in united India

Muslims would be obliterated. Another

argument that Jinnah put forward

was that there was no difference

between the Hindu Mahasabha and the

Congress.He started calling the Indian

National Congress a ‘Hindu party’. The

fourth and final phase was Jinnah’s

role as head of a state as he continued

with the role of the viceroy as governorgeneral.

Courtesy ( DAWN )


TRADE CHRONICLE

A mixed picture

By Nasir Jamal

The swift and startling takeover of

Afghanistan by the Taliban in the wake

of the US-backed Ashraf Ghani regime

in Kabul is causing concern not only

about the war-ravaged country’s future

but also about its potential implications

for Pakistan’s economy in the shortto

medium-term. Even though the

return of the Taliban will likely affect

all regional economies, Pakistan was

the immediate focus of international

investors as indicated by rising yields

of its dollar-denominated Eurobonds in

the wake of the quick collapse of the

Ghani administration.

Though it is too early to predict the

economic spillover of the Taliban’s

return to power after 20 years in

regional countries like Pakistan, serious

concerns remain. While a stable and

secure Afghanistan is projected to work

in Islamabad’s favour, the comeback of

the Taliban is not going to be troublefree

for Pakistan with chaos in the

neighbourhood triggering risks of

an influx of refugees and insecurity

spillovers.

“The Taliban takeover in Afghanistan

has several unanswered questions…

about the shape of the future

government and its acceptability to the

international community, and whether

the Taliban will keep their promises

(made to the world),” Intermarket

Securities analyst Raza Jafri wrote in

a note on the change in Kabul for the

investors.

Of the immediate concern for Pakistan,

according to him, is the impact of the

disruption in bilateral trade and the

possible influx of Afghan refugees.

Of medium-term importance is the

possibility of a spillover of insecurity

from Afghanistan, which will have

(serious) implications for Pakistan’s

security conditions, with the hardfought

gains over the last five years

vulnerable to threats from the banned

Tehreek-e-Taliban Pakistan (TTP).

Another analyst, who sought

anonymity because of restrictions

from his employer, says the potential

implications of insecurity in Afghanistan

and the Taliban’s failure to address the

valid concerns of the world on political

and human rights of Afghans, especially

women and girls, could be huge

for Pakistan. “There are already 15

million internally

displaced people

in Afghanistan and

the deterioration

of the security

conditions

owing to the

disagreement

of the Taliban

on a broadbased,

inclusive

government could

push millions into

Pakistan. That will

place a punishing

burden on the

economy and the external sector,” he

argued.

Further, he is of the view that the

security spillovers will have a long-term

impact on investment sentiments. “The

surge in the bond yields immediately

after the Taliban retook Kabul indicates

that the global investors are feeling

jittery about the situation; it’ll raise the

cost of future debt Islamabad plans to

raise from the international markets to

boost its reserves.”

In addition to the refugee and insecurity

spillovers, he believes Pakistan is

facing a difficult situation with the US

and other western powers. “If we’re

suspected of somehow endorsing the

Taliban and their actions against their

opponents or violations of human and

women rights, it would make it difficult for

Islamabad to access multilateral dollars

and lift debt from the international bond

markets. This will also bring the fiscal

and external sectors under immense

stress,” he contended.

Almas Hyder, a businessman

and chairman of the Engineering

Development Board, is quite optimistic

about the situation, however. “The

collapse of a pro-India regime in Kabul

and the ascendancy of the Taliban has

reduced security risks for Pakistan.

Once the present transition period is

over and stability returns to Afghanistan,

we will be able to significantly increase

exports (to Afghanistan) besides

accessing the Central Asian markets.

Once the reconstruction work starts

there, Pakistan will also have a big role

to play with China leading the way to

fill the void created by the American

pullout from that country.” He believes

that the Taliban’s comeback has made

Pakistan strategically more important

to the US, implying Pakistan would

continue to receive multilateral dollars.

Another businessman, who sought

anonymity, warns that the fears of

insecurity spillovers into Pakistan, the

resurgence of the terrorist groups linked

to Tehreek-i-Taliban Pakistan and the

arrival of refugees are well-founded.

“We can escape these consequences

of the regime change in Afghanistan

only by helping the international

community convince the Taliban to

agree to the formation of an inclusive,

secular government representing

different groups and ideologies.”

Fahad Rauf, head of research at Ismail

Iqbal Securities, does not see much

trade or reconstruction opportunity in

Afghanistan any time soon. “There

will be no aggressive development

in Afghanistan or a massive jump

in trade between the two countries

unless the Afghan economy also

picks up,” he argued. Nevertheless,

he agrees that the establishment of a

pro-Pakistan government in Kabul will

make Pakistan, especially Balochistan,

securer, which will help complete China-

Pakistan Economic Corridor projects

in that province besides attracting

investment in oil & gas exploration

along the Pak-afghan border. “The

greater involvement of China, Russia

and Pakistan in Afghanistan will be a

positive for that country’s stability and

development. And if China invests there

it will be good for Pakistan as well.”

He does not agree with the suggestion

that the West will isolate Pakistan

because of Afghanistan. “Pakistan has

already announced to go along with the

international consensus when it comes

to recognising the new rulers in Kabul.

Pakistan also wants peace there… just

like the US and the rest of the world.

So I don’t think we will be marked out

by the US.”

Courtesy ( DAWN )


TRADE CHRONICLE

Life insurance sector of Pakistan:

A window of economic growth

By Dr. Muhammad Nawaz Iqbal

The potential of life insurance sector

in Pakistan have been seen since

last ten years when numerous

insurance distribution channels

introduced to facilitate Pakistani

citizens. Among these channels, the

channel of Bancassurance boost

up the penetration of life insurance

product through banking channel which

suddenly spread like a wild fire in an

industry. In last ten years, numerous

commercial banks introduce multiple

life insurance products as a joint venture

with life insurance companies and

insured their bank customers through

different life insurance plans. It brings

a threshold of trust among customers

to understand the importance of life

insurance for their financial security.

Such practices of Banks and insurers

help to retain their customer for ong

term with significant financial benefits

to their customers.

Following the monetary progression

of the mid 1990s, Pakistan opened

its insurance market to homegrown

and unfamiliar safety net providers.

Nonetheless, it was not until the mid

2000s that the private insurance area

encountered a development along

with the improvement of its business

and homegrown firms. The insurance

business in Pakistan has become

decently created lately by changing from

a monopolistic to a cutthroat market.

Like other monetary foundations, the

insurance business has likewise gone

through liberation, however the speed

of execution has been drowsy. The

Putting efforts to resolve grievances of

clients, Federal Insurance Ombudsman

Federal Insurance Ombudsman Dr.

Khawar Jameel said Pakistan collects

a total premium of Rs. 378 billion

annually, which makes the ratio of only

0.08% to Gross Domestic Product

(GDP) which is the lowest in the region,

the rate is more than 2% in China, the

neighboring country In India has it on

0.78%, our next target is to increase this

rate to 1.5%. He expressed his views

while talking to Korangi Association of

Trade and Industry (KATI) Members.

He said that efforts were being made

to resolve the insurance complaints,

adding that a large number of

insurance business

went through huge

primary changes after

the Securities and

Exchange Commission

of Pakistan (SECP) acquainted a

progression of changes with assistance

make the nonbanking monetary area

more aggressive. With the execution

of the mandate, both the public and

private areas saw a determined

improvement in their capital base,

resource construction and productivity.

The new administrative necessities

likewise prompted the conclusion of

powerless, unfruitful private area back

up plans, especially in the nonlife area.

Life coverage organizations utilized

remarkable bookkeeping framework

because of which productivity of the

business has consistently been hard

to quantify when contrasted with other

monetary foundations. State Life,

Jubilee Insurance and EFU are the

most in fact effective firms. All three

are bigger than the others as far as

business volume and effort, which

might have placed them at a benefit in

streamlining their information assets.

The major contribution of this volume

is via Bancassurance which altogether

affects monetary development the

country over. There is a programmed

augmentation of business in Securities

and Exchange Commission to bank

and disaster protection organizations.

Such joining of Bancassurance will

additionally move the banks towards

widespread saving money with

extraordinary financial proficiency

created by essential collusion between

disaster protection organizations and

Banks. Insurance companies are

complaints were

received from

the insurance

agents regarding

agreements and misleading the people.

In this regard, we have collaborated

with the SECP and the State Bank of

Pakistan, and have successfully made

changes in the agreement. Banks

cannot deduct insurance money directly

from their customer’s account, for

which verification from account holder

has been made mandatory. The money

is transferred to the insurance company

only after two formal verifications.

He further said that a total annual

premium of Rs 378 billion is collected

in Pakistan in which the insurance

companies pay only 1% in return for

particularly keen on deciding the capital

design designs, on the grounds that

these organizations expect assets to

settle the cases or pay harms at the

hour of misfortune.

The current business world without

insurance agencies is impractical

on the grounds that dangerous

organizations have not an ability to

hold a wide range of dangers that

they are looked during the activities.

Assuming insurance agencies end

to giving protection in the economy,

it may happen that organizations or

organizations stop their tasks or may

confront indebtedness because of high

danger.

During the time of 2005-2009 the yearly

reports of protection partnerships in

Pakistan show huge changes in the

benefits. This variety of benefits among

protection partnerships recommends

that firm-explicit variables assume

urgent part in affecting insurance

agencies’ productivity. It is in this way

fundamental to recognize what are

these elements and how they help

insurance agencies to make moves

that will expand their productivity

and financial backers to gauge the

benefit of insurance companies in

Pakistan. Life insurance is the market

reshaping technique take on by

insurers to build their pieces of the

pie in existing business sectors of

item and administrations. Insurance

plans likewise take on this system to

build their business income with no

alteration in their product or services.

Life insurance sector is the major and

critical wellspring of economy that gives

number of benefits to Pakistan in future.

the claims. In this regard Insurance

companies have also been consulted

to improve the system. Dr. Khawar

Jameel said that consumer complaints

are dealt with in a short span of 60 days,

while in some cases our decisions are

challenged in the courts. However, no

decision has been challenged in the

courts in the past few years. It is clear

that decisions are being made on the

basis of merit. In the past, up to Rs 410

million was settled by the Insurance

Ombudsman, just last year more than

Rs 2.13 billion was settled.


TRADE CHRONICLE

Ports, Shipping & railway

Ministry of Maritime Affairs,

Government of Pakistan, Pakistan

Navy (PN), Pakistan Maritime Security

Agency (PMSA), Karachi Port Trust

(KPT), Mercantile Marine Department,

the subordinate office of the Directorate

General, Ports and Shipping, Ministry of

Maritime Affairs and other stakeholders

had saved precious crew life and

averted oil spill when three foreign

vessels met mishaps during July/Aug

in territorial water of Pakistan. Three

foreign flag vessels – barge Heng Tong

77, General Cargo Suvari H and LPG

Carrier Gas Yodla-needed help, which

was well responded to by Pakistani

authorities. The ill-fated general cargo

vessel Suvari H was sunk before

reaching Pakistani authorities. The

barge Heng Tong 77 was still grounded

till filing this report at Seaview Beach in

Karachi, while LPG Carrier Gas Yodla

was repairing at KPT to resume its

scheduled journey.

The rescue operations send positive

signals to the world that Pakistan can

perform such functions, with the strong

backing of local shipping agents.

Still, we need some

polishing of our team

for a quick response

with adequate logistic

supports of heavy

equipment and

tugs, particularly for

operation in the low

draft of the beach

area. The Joint venture

with foreign expertise

would add additional

grooming of our

experts.

Barge Heng Tong 77

The vessel Heng

Tong 77 came into

the territorial waters

of Pakistan for a

crew change without

intention to enter the

KPT Harbor. Later, the

ship lost anchors due

to extremely rough

weather and

ineffective

engines,

By Abdul Rab Siddiqi drifted towards

shallow waters,

and beached at Seaview.

Pakistan succeeds in saving precious crew

life and averted oil spill during July/Aug

Later, Pakistan Federal Minister for

Maritime Affairs Ali Zaidi, Special

Assistant to Prime Minister (SAPM)

on Maritime Affairs, Mahmood

Moulvi, visited the spot along with the

chairperson of Karachi Port Authority

and Port Qasim Authority to take stock

of the situation.

Meanwhile, the owner of Heng Tong

77 immediately appointed Capt. Asim

Iqbal of Bahria Maritime Services (Pvt)

Ltd as an agent in Pakistan to oversee

the rescue operation. It follows the

appointment of Seamax Marine Group

to refloating the beached ship. The

vessel was carrying 118 tons of bunker

fuel. The agent hired a contractor who

successfully retrieved over 80 tons of

fuel without any spill.

Furthermore, Pakistan Maritime Affairs

Ministry has formed a six-member

Fact-Finding Committee to investigate

the grounding of barge Heng Teng 77

at Seaview Beach in Karachi on July

21.

According to Capt. Asim Iqbal of Bahria

Maritime Services (Pvt) Ltd, Mercantile

Marine Department, the subordinate

office of the Directorate General, Ports

and Shipping, Ministry of Maritime

Affairs, Government of Pakistan had

approved the salvage/refloat plan of the

grounded barge Heng Tong 77 on Aug

7. However, till writing this article, the

vessel remains grounded. The Pakistan

authority has detained the ship on the

question of the ship’s seaworthiness as

per IMO rules.

Unfortunate development

A sense of insecurity among the crew

and safety of the vessel was created

when a large number of people reached

the ground site of the ship on Aug 14.

Reportedly, welding equipment, heavy

chains and other stuff used in salvage

operations were stolen but later

recovered by the police. The security

around the ship relaxed on Aug 13

due to the postponement of the rescue

operation and other reasons which

were not disclosed.

The Henderson International report on

barge Heng Tong 77

The vessel arrived in Karachi anchorage

for a crew change; one

of its anchors was

broken due to rough

sea and swelled at

1620 hrs, UTC, Jul

21. The vessel was on

one anchor, which also

broke subsequently,

and it started drifting.

Finally, the ship ran

aground on a beach

in the Karachi area,

Pakistan, in position

lat 24 47 58.4N, long

67 01 22.0E, in the

morning of Jul 21.

So far, reported no

pollution.

General Cargo Suvari

H

The PMSA’s Maritime

Rescue Coordination

Centre received a

report that Merchant

Continued on pg # 12


TRADE CHRONICLE

‘Pakistan needs new strategy

to rationalize port charges’

Chairman United Business Group

(UBG) Standing Committee on Maritime

Affairs, Communications & Gwadar

Development, Tariq Haleem has said

that Pakistan needs a new strategy

to rationalize port charges, introduce

incentive schemes, simplify the Federal

Board of Revenue’s transshipment

rules and harmonize regulations for the

transshipment industry. This will help

to transform our seaports into regional

transshipment hubs. This should be

done with the help of the various

stakeholders of our seaports. Tariq

Haleem said that transforming KPT into

a transit state of the art facility will also

allow us to better connect to countries

in the Central Asia Regional Economic

Cooperation, which is a collection of 12

neighboring countries.

South Asia Pakistan Terminals Limited

(SAPTL), with initial investments of

about Rs 100 billion can, at the moment,

be the most suitable instrument in

creating a transshipment hub and

promoting cooperation with our CAREC

partners. Pakistan needs to revisit the

entire strategy of a transshipment hub.

Some Commonwealth of Independent

States (CIS) countries have also

shown their interest and have started

using our ports for transit trade in a

Continued from pg # 11

Vessel (MV) SUVARI H, which had

sailed from Kandla, India, for Bossasso,

Somalia, got stranded approximately

180 nautical miles south of Karachi

along with 18 crewmembers onboard.

The vessel was a General Cargo,

built thirty years ago and was sailing

under the flag of Gabon. The Pakistan

Navy, in coordination with the PMSA,

immediately tasked ships and aircraft to

provide assistance to the stranded ship

and save precious lives.

After arriving at the scene,

the Pakistan Navy and

PMSA aircraft dropped

life rafts to assist the

stranded crew at sea and

coordinated their recovery

through nearby Merchant

Vessel MT ELAN VITAL.

The Pakistan authority

recovered fifteen crew,

but three crew members

still missing. But the ship

was drowned in the sea in

small way. MOMA and MOC should

approach all 12 CIS countries and

provide them suitable facilities with

low handling costs for transit trade.

It may be noted that imports and exports

of these 12 CIS countries are more

than about US 450 billion dollars. This

trade between landlocked countries

should be promoted to be routed

through Karachi Port and Port Qasim,

as well through Gwadar Port when the

port is fully operational. This sort of

trade volume would mean a movement

of more than millions of containers and

millions of tons of other general cargoes

per year. The capacities of the ports

of Pakistan will need to be enhanced

on a war footing to handle these high

volumes of cargoes.

He said that transshipment laws need

to be amended by FBR in order to

permit Container Freight Station (CFS)

operations on an urgent basis. UBG

suggests that a common user CFS

station should be made within the

KPT, with a minimum area of about

200 acres (with the option to expand

as per requirements). This should,

preferably, be close to SAPTL so that

transportation and handling costs are

reduced. This will not only provide work

for different stakeholders at the ports,

but also jobs for much of our country’s

workforce. Tariq Haleem said that we

have 39 companies with stevedoring

late July this year.

LPG Carrier Gas Yodla

The Liquefied Petroleum Gas Carrier

Gas Yoda was about to ground when

PMSA and other stakeholders rescued

it and safely towed it to Karachi Port on

Aug 14. It is an LPG Tanker registered

and sailing under the flag of Panama.

According to Karachi Port Trust (KPT),

Liquefied Petroleum Gas Carrier Gas

licenses, out

of which quite

a few are

sitting idle;

an increase

in volumes

of cargoes

will provide

opportunities

to all of them.

In addition

to this,

ship agency, freight forwarding,

logistics, trucking, customs clearing,

warehousing and other port related

business will flourish. Overflow cargoes

at the ports will also benefit off-dock

activity. He said that when Singapore

started transshipment activities,

Mercedes Benz established a state of

the art, in-house facility for stock & sale

for their spare parts etc. Spare parts,

as well as other items, worth trillions

of dollars have been stocked and sold

from here.

Malaysia started transshipment

activities and they provided Stock &

Sale suitable laws and space, last year

about US 3.2 billion dollars of cargoes

were attracted to Malaysia for stockand-sale.

Hitachi is also carrying out

Stock & Sale activities worth billions

of dollars at Abu-Dhabi. Since many

decades Toyota is carrying out Stock &

Sale from Brussels.

Yodla remained at the container berth

of South Asia Pakistan Terminals

Limited. The vessel had to repair the

engine and fix both anchors lost earlier

in the Arabian Sea. A submission from

the ministry of the maritime affair of

Pakistan says that the vessel was

stranded 52 NM from Karachi port

due to engine failure & both anchors

were lost and was about to ground

on Aug 11. However, the Pakistan

Maritime Security Agency (PMSA) had

rescued it and towed it to Karachi port.

The vessel, which had

sailed from Mumbai, was

heading Jebel Ali of Dubai

(UAE).

A local shipping agent,

“M” International Services

(Pvt) Ltd, is looking after

the repair of Gas Yodla,

and the vessel would sail

from KPT as soon as it

completes the repair.


TRADE CHRONICLE

Minister for Railways Azam Swati visits

Hutchison Ports Pakistan (SAPT)

Federal Minister for Maritime Affairs

Ali Zaidi visits Karachi port

Minister for Railways, Azam Swati visits Hutchison Ports

Pakistan (SAPT) to inspect work being carried out at the

train tracks being laid at the institution. The newly laid tracks

are an effort to improve efficiency in transport of goods from

the Port to various parts of the country.

The KPT performance in 2020-21

The financial year 2020-21 remained

phenomenal for Karachi Port Trust

(KPT) and KPT’s performance

remained outstanding during global

lockdown situation, especially for

Shipping Operations and Cargo

Handling.

The volume of

cargo handling,

including Import

and Export

peaked at 52.28

Million Tons,

registering a

growth of 25

percent over the

previous year’s

41.84 Million Tons

including export in all categories of

cargo recording a growth of dry cargo

rising by 9 percent to 15.27 Million Tons

as against 13.97 Million Tons of 2019-

20.The container handling at Karachi

port was 2.29 Million TEUs (Twenty

Freight corridor project

feasibility report ready

The Pakistan Railways planned to

build a dedicated corridor for freight

train service between Karachi Port and

Pipri yard, for which a 50 kilometrelong

double track will be

laid. Containers will be

transported from Karachi

Port to Pipri through

freight shuttle trains on

the new track. The double

track will be built with the

feet Equivalent Unit) which

is the highest in KPT’s

history. The movement of

vessels also increased by 21 percent

to 1,845 ships.

The container carriers were reported at

868 during 2020-21 compared to 744

last fiscal and bulk cargo ships 280

against 172 ships.KPT also efficiently

handled wheat

cargo thereby

maintaining the

food security

chain and ensured

timely berthing

of oil tankers

to contribute

towards energy

security.

KPT endeavors to facilitate its Port

users and the trade community a

predictable business environment,

digitalization of Estate and Operations

thus ensuring ease of business & 24/7

access and transparency.

assistance of the private sector on the

basis of build-operate-transfer.

Containers would be brought from

Karachi Port to Pipri Yard where,

after customs clearance, goods will

be transported to all destinations

across the country. Azam Khan Swati,

minister for Railways,

secretary Planning,

secretary Railways, and

senior officials of both

Ministries participated in

the meeting.


Federal Minister for Maritime Affairs Syed Ali Zaidi, said

that there are three oil piers on Keamari which handle

all the liquid cargo. “Oil Pier 3 has been rebuilt on a fasttrack

basis, despite Covid-19 and it is expected to function

without major faults for the next 25 years.

Maritime tourism: PNSC to

support ferry services:

Ali Zaidi

Minister for Maritime Affairs Ali Haider

Zaidi recently said that Pakistan

National Shipping Corporation (PNSC)

will provide a great opportunity for

all interested in setting up a ferry

services in the country. In a tweet, he

said that “Pakistan National Shipping

Corporation (PNSC) will provide

management/manning services.”

The minister said that registered tour

operators in the country can design and

market Hajj/Umrah/Ziarat packages,

adding that “a win win for all!”. He

shared that Ministry of Maritime Affairs

in collaboration PNSC and Karachi Port

Trust, is working towards realizing the

potential of country’s Blue Economy

by promoting business opportunities in

the areas of maritime tourism, coastal

development and passenger-cumcargo

ferry service in the country. With a

large population and growing needs for

regional and international connectivity,

Pakistan holds immense potential for

operation of ‘Ferry Services’ from, to

and within Pakistan.

TRADE CHRONICLE

A review of PNSC performance for the nine

months period ended March 31, 2021

The Board of Directors of Pakistan

National Shipping Corporation (PNSC)

presented the consolidated and

unconsolidated condensed interim

financial statements of PNSC and

Group for the nine months period

ended March 31, 2021. Despite the

unpleasant economic affairs due to

the prevailing third wave of COVID-19,

the PNSC Group has managed to

achieve profit after tax of Rs.1,235

million as against Rs. 1,411 million in

the corresponding period last year.

Group earnings per share is Rs.9.35 as

against Rs.10.68 in the corresponding

period last year. Cumulatively, the

Group achieved a turnover of Rs.9,633

million (including Rs.1,674 million from

PNSC) as compared to Rs.9,621million

(including Rs.1,134 million from PNSC)

for the corresponding period last year.

There is growth in the tanker segment’s

revenue including foreign charters

by 7.12% from Rs.6,195 million to

Rs.6,635 million. The slot chartering

revenue increased by 19.64% from

Rs.704 million to Rs.842 million. A

slight decrease of 2.63% from Rs.1,609

million to Rs.1,567 million was observed

in the bulk carrier segment. An increase

in Group revenue in comparison to the

comparative period last year reflects an

increase in operational activity in terms

of the number of days and number of

voyages. The net profitability of the

The Directors of Pakistan International

Bulk Terminal Limited (PIBT) has

presented the Financial Statements for

the period ended March 31, 2021.

During the period, the Company has

handled 7,181,957 tons cargo against

6,581,546 tons in the same period last

year depicting improved performance.

The management of the Company is

focusing on strategies to bring more

efficiency in cargo handling operations,

Group

w a s ,

however,

adversely

affected due to a decline in

AFRA by 26%, reduction in

gross margins of slot business

by 11% and adverse movement

of USD versus PKR which

resulted in exchange losses

of Rs. 87 million in the period under

review as against exchange gains of

Rs. 54 million in nine months period

ended March 31, 2020.

PNSC standalone results reflect a loss

after tax of Rs.46 million with a loss

per share of Rs.0.35 as compared

to a loss after-tax of Rs.779 million

and loss per share of Rs.5.90 in the

corresponding period last year. The

finance cost on long-term financing

decreased by around 52% to Rs.427

million in the current period as against

Rs.886 million in the same period last

year. A major reason for the decline in

finance cost is a reduction in discount

rate at 7% as compared to 13.25% in

the corresponding period last year by

the State Bank of Pakistan (SBP).

Dry Bulk Sector Sentiment in the bulk

carrier sector is currently positive,

with average earnings seeing gains

recently as seaborne dry bulk trade

volumes rebound firmly after last year’s

COVID-19 shock, and a range of

factors provide ‘disruption upside’ (e.g.

port congestion).

PIBTL curtails environmental pollution and modernize

the port infrastructure of the country

with the objective of providing

unparalleled services to its customers.

During the period, the Company

has posted net profit after taxation

which also includes exchange gain

on currency revaluation of USD

denominated foreign loans.

During the period, the Company

changed its accounting policy to

measure certain items of property,

plant and equipment namely

port infrastructure, leasehold

improvements, buildings,

cargo handling equipment,

port power generation and

terminal operations equipment

using the revaluation model.

The revised accounting

Overall, global seaborne dry bulk trade

is currently projected to grow by 3.3%

across 2021, against underlying fleet

growth of 2.6% in dwt terms. Tanker

Sector With the seaborne oil trade

remaining weak, the tanker market

continues to remain under pressure.

While moderate market gains were

apparent in some sectors, the shortterm

outlook for the tanker market

remains weak overall, with impacts from

the COVID-19 pandemic on global oil

demand, and current OPEC+ oil supply

curbs now scheduled to continue into

the 4th quarter.

Current projections for 2022 suggest

the potential for tanker market

improvements, driven by the continued

recovery in global oil demand and

seaborne oil trade (crude and product

tanker dwt demand are expected

to grow by a further 4-5% in 2022,

returning to the 2019 level). Although

underlying tanker fleet capacity growth

is projected to remain limited next year

at 1.7%, some supply-side pressure on

the market may linger, with fleet capacity

expected to end 2022 approximately

8% above the end 2019 level.

policy has resulted in a revaluation

surplus of Rs. 9.22 billion which has

been incorporated in these condensed

interim financial statements.

GOING FORWARD

The Company has shown improvement

in revenue, gross profit, EBITDA

and profit after tax, and constantly

endeavours to further optimize costs

which improve shareholders’ return in

the future.

In the end, the Board of Directors of

the Company would like to reiterate

their commitment to operate efficiently

Pakistan’s first state-of-the-art

mechanized bulk cargo terminal for the

handling of Coal, Clinker & Cement,

compliant with international standards

of excellence which will curtail

environmental pollution and modernize

the port infrastructure of the country.


TRADE CHRONICLE Leather Industry

Pakistan leather sector exports

increased in July 2021

Pakistan’s earnings from leather and

leather goods dropped to $856.62

million in the last fiscal year July 2020

– June 2021 from $961.24 million in

the period of 2019-20. This translates

to a fall of 9.26 % YoY, according to

data released by the Federal Bureau

of Statistics. However, Month on Month

basis total leather sector exports

increased to $94.82 million in June

2021 from $56.23 million.

W h i l e

commenting

on the

exports,

Pakistan

Tanners

Association

(PTA) central

Chairman

Anjum Zafar,

told the

Pakistan Footwear Manufacturer

Association (PFMA) plans to enhance

the training facility of the Italy-Pakistan

Footwear Technological centre and

Pakistan shoe design Hub (IPFTC)

in Quaid-e-Azam Business Park in

Lahore. The Association has requested

the Government of Punjab to allocate

free land for the same, where all the

footwear and allied industry facilities

will be available for manufacturers to

boost this sector.

In this regard, Chairman

PFMA Mr Imran Malik met

with the Governor of Punjab

Chaudry Muhammad Sarwar

recently. He discussed the

plans with critical challenges

being faced by the footwear

industry.

In addition, PFMA Chairman

requested the Governor

instruct concerned

authorities to swiftly

process and reimburse

custom authorities’ funds

media that growth was noted

in the export of leather-related

products in FY21. “Our leatherrelated

goods exports recovered

in the outgoing fiscal year but still these

cannot match the brisk exports some

five years back,” he said.

The breakdown of the first twelve

months, July – June 2021, showed that

leather tanned revenue fell by 12.04 %

to $161.940 million from $184.10 million

earned during the same corresponding

period last year. In terms of quantity,

the export of finished leather slid by

25.98 % to 12.525 million Sqm from

16.921 million Sqm during this period.

However, on a positive note, leather

manufacturing has expanded by 18.74

% to $562.79 million from $473.97

million during this period. The figure

includes the export of leather garments

increased by 14.02 % to $286 million

from $251 million, followed by a 22.26

% rise in leather gloves to $260 million

from $213 million and other leather

PFMA plans footwear and allied industry facilities in

Quaid-e-Azam Business Park, Lahore

on importing machinery from Italy

to establish a state-of-the-art Italy-

Pakistan Footwear Technology Center

in Lahore. As per the Letter of Intent,

the Italian Government has provided

Free Machinery for IPFTC, but import

expenses have to be borne by the

Pakistan government. PFMA requested

the Government waiver on custom

duties on first-time imports, but matters

were delayed in different ministries.

Similarly, the Association also

manufacturing rose by 61% to $16.56

million from US$ 10.28 million during

this period.

The rising trend was also noted

in footwear exports, which were

increased by 4.72 % to $131.89 million

as compared to $ 125.932 million

during July – June 2019 – 20 period. In

terms of quantity, the export of footwear

rose by 22.03 % to 16.06 million pairs

from 13.618 million pairs during this

corresponding period.

The PTA central Chairman said

the government has already been

promoting an export-friendly culture

and PTA and the Ministry of Commerce

(MoC) are now engaged on how to

further promote the export of finished

leather and goods in FY22.

Chairman PTA has given a conservative

estimate to take the export of leather

products to $925m in FY22 based on

rising demand in Europe and the USA,”

Mr Zafar added.

suggested extending incentives of

local taxes and levies drawback for

another three-year term as previous

incentives expired on 30th June 2021.

The Chairman also brought Governor

attention towards determining the

import duties on ready shoes must be

fixed in dollar terms irrespective of FOB

price. This way, under-invoicing can

be stopped, and the impact will be on

Low priced imported shoes will be on

real value resulting in encouraging local

manufacturing.

The PFMA Chairman requested the

Governor to take this suggestion

timely into consideration

by providing swift relief to

the industry and providing

a level playing field to local

producers to compete with

their foreign counterparts. At

its infancy, Footwear Industry

requires Government

attention and support to

become the leading exportoriented

industry of Pakistan

to help boost the economy

by earning valuable foreign

exchange and creating job

opportunities.


TRADE CHRONICLE

Pakistan sacrificed about 5.86 million

animals during last Eid-ul-Azha

Seasonal festivities related to Eid-ul-

Azha generated over Rs325 billion

worth of economic activities, as

Pakistanis slaughtered around 5.86

million animals during the three-day

festival, industry officials said.

According to estimates of Pakistan

Tanners Association (PTA), three

million goats, two million cows/

calves/bulls, 0.8 million sheep and 70

thousand camels were slaughtered

across the country.

Prices of hides varied across the

board, with the hide of a cow, bull or

a calf costing between Rs900-Rs1,200

a piece.

Similarly, the price of a goat skin was

Rs160-Rs210, sheep was only Rs50-

75/piece, while camel hides were not

purchased by the brokers and buyers

of tanneries. For the first time, big

tanneries like Royal Leather, Sahfi

Group, and others did not purchase

The new team of CLE is optimistic for

growth in export during FY21-22

Sanjay Leekha, Managing Director

of M/s. Alpine Apparels Pvt. Ltd,

Haryana and Rajendra Kumar Jalan,

Director of M/s. AFPL Global Pvt. Ltd

have been elected as Chairman and

Vice-Chairman of Indian Council for

Leather Exports, respectively, in the

168th meeting of the Committee of

Administration (COA) held last month

through Virtual mode for the year 2021-

22.

The new chairperson in web statement

said, “After a prolonged period of market

slowdown caused by the Covid 19

Pandemic which led to 27.72% decline

in our exports during 2020-21, we are

Sanjay Leekha

any hides and skins of

the sacrificial animals.

Hot and humid weather

was also responsible for low sales, as

quality is affected due to humidity and

mugginess.

Tanners had faced a similar situation

last year on Eid-ul-Azha, when rains

damaged a huge quantity of animal

hides and skins across the country.

Former chairman of PTA, Agha Saidan,

who owns Royal Leather, said that the

leather industry faced huge losses last

year, when raw material was destroyed

by humidity.

According to the estimates of the PTA,

only animal sales generated over

Rs300 billion of economic activities.

The tanners’ body calculated it on the

basis of average price of cow/calf/bull at

Rs90,000 an animal, Rs35,000 a goat,

Rs25,000 a sheep, and Rs150,000 a

camel. Agha believed that the prices

of all animals were much higher in

urban centres like Karachi, Lahore,

back on the growth

track with exports from

our sector showing

impressive resurgence

during 2021-22. As per data received

from the Dept. of Commerce, export of

leather, leather products and footwear

increased from USD 146.79 million

in April – May 2020 to USD 641.72

million in April – May 2021, registering

337.17% growth. This is a perfect

beginning for us, which we hope to

sustain in the coming months”.

During 2021-22, CLE is planning to

organize more than 20 events, including

participation in the international

exhibitions (physical, virtual and hybrid

mode), 2 BSMs, and 2 Reverse BSMs

(Delhi and Kolkata) one Designers

Fair under MAIS,

depending on the

COVID situation.

Rajendra Kumar Jalan

Besides, CLE plans to

organize Virtual BSMs/

Webinars in the USA,

Israel, Guatemala

and Germany in

coordination with Indian

Missions concerned on

a self-financing basis.

Islamabad, and other mega cities.

“However, he said most of the money

went to middlemen (beoparis), while

livestock breeders from small villages

did not get high rates for the animals.”

Talking about city prices for various

animals, he cited the example of

bulls, that fetched around Rs150,000-

Rs200,000 in the cattle markets of

Karachi and Lahore, whereas goats

and sheep also fetched a higher price

in the urban markets.

On the other hand, prices in villages

were much lower than the consumer

prices in cities.

Other allied businesses that benefitted

from Eid-ul-Azha activities included

transport, fodder, slaughtering

equipment, and animal casings. Around

Rs10-Rs15 billion were generated by

allied businesses during the festive

season.

Courtesy ( The News )

Bangladesh sets export

target of $1.031 billion for

leather industry

Bangladesh leather industry during

July 2021 has earned export revenue

of $90.52 million compared to $ 89.94

million earned in the same month of the

previous year. It translates to a nominal

growth of 0.64 % on a YoY basis,

according to the Bangladesh Export

Promotion Bureau (EPB).

The breakdown shows that Bangladesh

bagged $11.07 million on exports of

finished leather in the first month of

the ongoing financial year compared

to $ 8.22 million in July 2020. It shows

a growth of 34.79 %. The exports of

leather products have also expanded

to $ 25.20 million from the $ 22.05

million of the same month of last year.

It translates to an incline of 14.33 per

cent on a YoY basis. On a negative

note, the leather footwear exports saw

a contract of 9.12% to $ 54.22 million

from $59.67 million during this period.

The Bangladesh Export Promotion

Bureau (EPB) had set the export target

for the leather industry at $1.031 billion

for the financial year 2021-22 (July –

June) compared to the $941.67 million

earned in the previous fiscal year.


TRADE CHRONICLE

Cement Industry

Another good export year for

the Pakistan cement industry

The Federal Bureau of Statistics (FBS)

of Pakistan has released cement

export data for the just-concluded fiscal

year 2021 (July – June). Both value

and quantity were expanded during this

period on a YoY basis. But comparative

figures of June 2021/May 21 and June

20 depicts a reverse trend due to

poor export of clinker to Bangladesh

and growing local demand, observed

by local research houses. Yet, they

believe exports picked up during FY21

supported by sea-based exports to

Bangladesh, Sri Lanka and opening

up of the neighbouring Afghan market

post-winter season.

The New Year begins with a dismal figure,

but the future is promising: APCMA

Pakistan cement body released total

dispatches figures for July 2021, which

indicates negative growth of 19.41 per

cent to 3.899Mt in the first of month

new fiscal year 2021-22. All Pakistan

Cement Manufacturers Association

(APCMA) attributes the declining trend

to monsoon rains and the stoppage of

construction activities due to Eid-ul-

Azha across the country.

A representative of APCMA expressed

concerns about the slide in demand.

However, he was hopeful that the

cement industry would regain its growth

momentum in the coming months,

mainly due to pro-government policies

The KPK plans a new stone

crushing site in the northern area

The KPK Provincial Government of

Pakistan has reportedly planned a

limestone mining/crushing site at

Khanpur for the cement industry. The

scheme has been approved by the

cabinet and the assembly as Annual

Development Plan in the financial

budget for 2021-2022 for the country’s

northern area.

KP Chief Minister Special Assistant

on Mining Arif Ahmadzai informed the

media that the KP Mines Department

had awarded rights for establishing

stone crushers near Khanpur Dam,

Pakistan’s cement industry in

12MFY20-21 earned US$267.91m of

export revenue by dispatching 7.815Mt

of cement and clinker overseas,

compared to US$259.44m from 7.11Mt

of exports in the year-ago period. The

export figures represent a noticeable

growth of 3.26 per cent in dollar terms

and a rising single-digit growth of 9.77

per cent in terms of volumes during this

period on a YoY basis, as reported by

FBS. However, in local currency terms,

the export value increased by 5.17 per

cent to PKR42.95bn (US$267.91m)

from PKR40.84bn during this

12MFY20-21.

related to the

construction

sector.

The breakdown shows out of 3.899Mt;

the domestic dispatches dropped from

3.953Mt in July 2020 to 3.446Mt in July

2021, a reduction of 12.8 per cent.

Exports showed a substantial decrease

by 49 per cent as the country exported

only 452,776t against 885,255t during

this period.

Analysis of zone dispatches reveals a

significant decline in domestic cement

consumption in the northern regions as

only 2.892Mt of cement was consumed

in July 2021 compared to 3.435Mt

in July 2020. It reflects a decrease of

15.81 per cent. However, the exports

annum.

covering an area of 3,750

acres with the potential of

300 crusher plants that could

generate up to PKR billion per

He added that the area with reserves of

around 8 billion tons of limestone could

initially generate PKR 200 to 500m

per annum, rising to PKR8 billion per

annum.

However, environmental experts are

surprised about how the scheme was

approved and became part of the

Annual Development Project without

any environmental assessment by the

authorities.

But June 2021 saw a negative revenue

trend of US$14.32m on the export

of 372,580t from US$28.52m on the

export of 818,471 cement and clinker

exports in May 2021, as the negative

impact of COVID-19 in the world supply

chain was disturbed. Thus, the export

trend represents a substantial MoM

shrink of 49.79 per cent and 54.48 per

cent in terms of value and quantity,

respectively.

Similarly, in the comparison period

of June 2020, when exports stood

at US$16.93m on the shipments of

548,913t of commodities, exports

skidded by 15.42 per cent in value and

32.12 per cent in quantity YoY.

from Northern regions increased by

10.42 per cent to 135,618t in July 2021

from 122,823t in July 2020.

South mills dispatched 554,442t of

cement for domestic markets during

July 2021, which was 7.07 per cent

higher than the dispatches of 517,850t

in the corresponding month of last

fiscal year. The cement exports from

the South experienced a severe dip

by a whopping 58.40 per cent as the

quantities dropped to 317,159t from

762,432t in July 2020.

It is pointed out that after the Supreme

Court ordered the removal of stone

crushers from Margala mountains

in Islamabad — a significant source

of limestone for stone crushers and

imposed a complete ban on the mining

— thus owners of displaced stone

crushers were desperate to get mining

rights in the vicinity. The then chief

justice, while ordering the removal of

stone crushers from Margala in 2016,

said, “We don’t want to make people

jobless, but we have to protect the

environment”. Margala had 60 stone

crushers while Khanpur — behind

Margala mountains — would have 300,

it is expected.


TRADE CHRONICLE

Cherat Cement Factory to

set up plant in DI Khan

The Cherat Cement Factory is going

to establish another plant in Paniala

town in Dera Ismail Khan to provide

employment opportunities to the local

populace.

During a recent visit, Chief Executive

Cherat Cement Factory Azam Farooq

and senior director Sales Amir Farooq

said that the management would soon

lay the foundation stone of the factory

in Paniala to meet the demand for the

cement at the local level and export

the commodity to the neighbouring

Maple Leaf plans

5MW Solar Plant

Maple Leaf Cement Factory Limited

has informed Pakistan Stock Exchange

(PSX) recently that the company has

signed a contract on August 10, 2021

with plant supplier, M/s. Zero Carbon,

for 5 MW Solar Plant at the existing plant

site Iskanderabad, District Mianwali,

Punjab, Pakistan. The expected date

of generation is January 01, 2022. The

total estimated cost of the project will

be PKR 450 million.

Bestway Cement, 14.3MW

captive solar power project

Bestway Cement and Reon Energy

Limited energized 14.3 MW captive

Solar Power Project at Farooqia,

Khyber Pakhtunkhwa. The Solar

Photovoltaic Plant is part of around a

50 MW project deal dispersed across

Bestway’s four locations i.e., Farooqia,

Chakwal, Kallar Kahar and Hattar.

The energy generated will also cut

around 1 million tonnes of CO2

equivalent emissions over the life of the

project, which is equal to plantation of

approximately 2.1 million trees.

countries. The staff members of

management and provincial president

Muttahida Labour Federation Iqbal

Khan were also present.

They said that Ghulam Farooq Group

of Companies was playing an important

role in the development of the country,

providing jobs to thousands of people

and earning foreign exchange.

The speakers also said that the

company had already announced the

establishment of the greenfield plant in

Khyber Pakhtunkhwa, which would cost

Rs34 billion and its daily production

would be 11,000 tons.

Azam Farooq and Amir Farooq said

Lucky Cement reports consolidated

earnings of PKR 28.2 billion for FY21

On a consolidated basis, Lucky Cement

Limited reported a profit after tax of

PKR 28.23 billion of which PKR 5.37

billion is attributable to non-controlling

interest for the year ended June 30,

2021. This translates into earnings

per share (EPS) of PKR 70.69 / share

as compared to PKR 18.96 / share

reported last year.

Further, on a consolidated basis, the

Company achieved gross turnover of

PKR 267.73 billion which is 64% higher

as compared to last year’s turnover of

PKR 162.87 billion.

During the year under review, the

Company’s consolidated net profit

(attributable to

owners’ of the

Holding Company)

increased by 273%

as compared to last

year. The increase

in Net Profit was

attributable to increase in profitability

of all the group companies. The PAT of

Cement segment (Holding Company)

grew by 3.21 times during the year

under review due to improved margins

and sales volumes. The increase in

sales volumes was attributable to

availability of newly commissioned

increased capacity of Line 1 for the

full year versus six months during the

corresponding period and the growth

of cement demand in local market on

the back of increase in construction

activities. The consolidated Net Profit

also grew due to considerable increase

in profitability of cement operations

of Joint Ventures outside Pakistan

and Company’s other subsidiaries in

the plant would

be completed

within three and a

notice had already

been sent to the

Pakistan Stock

Exchange. They

said that Cherat

was a trademark as the company

never compromised on the quality and

standard of its products.

The sale of cement jumped when

the construction sector was given

incentives by the government to provide

homes to the shelterless people in the

country.

Pakistan.

On a standalone basis

Company’s overall

sales volumes posted a high double

digit growth of 30.7% to reach 9.96

million tons during FY 2020-21. The

local sales volumes grew by 38.3% to

reach 7.56 million tons in comparison

to 5.46 million tons during last year.

Also, the export sales volumes of the

Company increased by 11.3% to 2.41

million tons as compared to 2.16 million

tons during last year.

Further, with regards to Company’s

standalone financial performance,

the gross sales revenue increased by

41.8% to PKR 88.36 billion compared

to PKR 62.30 billion reported last year.

The per ton cost of sales also decreased

mainly due to better absorption of fixed

cost as a result of

increase in volumes

and efficiencies

achieved from new

production line in

the North. Lucky

Cement recorded

net profit after tax of PKR 14.07 billion.

Similarly, the standalone EPS of the

Company is PKR 43.51 / share as

compared to last year’s reported EPS

of PKR 10.34 / share.

Despite the impacts of Covid-19

pandemic situation, the 1.2 MTPA

Greenfield cement production facility in

Samawah, Iraq successfully completed

its trial production on March 10, 2021.

The Company also reported that its 1 X

660 MW supercritical coal based power

project at Port Qasim has achieved

completion status of approximately

98.7% by June 30, 2021.


TRADE CHRONICLE

People & Events

Qayyum Niazi elected

13th Premier of AJK

Sardar Abdul

Q a y y u m

Khan Niazi of

the Pakistan

Tehreek-i-Insaf

(PTI) took oath

as the 13th

Prime Minister

of Azad Jammu

and Kashmir.

The oath was administered to him

by AJK President Sardar Masood

Khan at a well-attended ceremony at

President’s House in Muzaffarabad.

Shahzain Bugti made

SAPM

In a bid to woo

the estranged

B a l o c h

leaders,

the federal

government

has appointed

Jamhoori

W a t a n

Party (JWP)

chief and MNA Shahzain Bugti as

special assistant to the prime minister

on reconciliation and harmony in

Balochistan.

Khalid Mansoor new

SAPM on CPEC as Asim

Bajwa resigns

The Prime

Minister

h a s

appointed

Khalid

Mansoor

as his

Special

Assistant

on CPEC

Affairs.

Khalid Mansoor brings with him

over four decades of experience

working with multiple organisations in

energy, petrochemicals and fertilizers

industries.

Mahmood elected AJK

President

Murtaza Wahab made

KMC administrator

Sindh Government

has appointed

adviser to the Chief

Minister, Barrister

Murtaza Wahab, as

Karachi Metropolitan

Corporation’s (KMC)

administrator,

relieving Laeeq

Ahmed from the post

with immediate effect.

The appointment has been notified by

secretary to Sindh local government

Sarmad Ali bags PAS lifetime

achievement award

The Pakistan

Advertisers

Society

(PAS) has

bestowed

its Lifetime

Achievement

Award for

2021 on

Sarmad Ali,

Managing

Director of

the Jang

G r o u p

and President of the All Pakistan

Newspapers Society for his

contributions towards the development

of the marketing communications

industry.

Arbab Rahim made PM’s

Special Assistant

affairs.

Pakistan Tehreeki-Insaf’s

regional

president Barrister

Sultan Mahmood is

elected president of

Azad Jammu and

Kashmir after he

secured 34 votes

against 16 by his rival Mian Abdul

Waheed, a joint candidate of the PPP

and PML-N. Soon after his election, the

66-year-old politician vowed to continue

his mission to expose India’s ugly face

before the international community and

also help the government effectively

serve the AJK people.

Prime Minister

Imran Khan recently

handpicked ex-

Chief Minister Sindh

Dr Arbab Ghulam

Rahim as his special

assistant on Sindh

A notification issued by the Cabinet

Division said that “the prime minister

has been pleased to appoint Dr Arbab

Ghulam Rahim as special assistant to

the prime minister on Sindh Affairs”. It

said that the appointment will be in an

honorary capacity.

department which said: “In exercise of

powers, vested U/s 21 (3) of Sindh Local

Government Act 2013, and pursuant

to decision of Provincial Cabinet,

Government of Sindh, expressed vide

Additional agenda Item No 5, para

19.7 (1) at page number 23 of minutes

of meeting dated 4 September, 2020,

and with the approval of competent

authority, Barrister Murtara Wahab,

Advisor to Chief Minister, Sindh for

Law, Environment, Climate Change

and Coastal Development Department

is hereby appointed as Administrator,

Karachi Metropolitan Corporation,

relieving Laeeq Ahmed, with immediate

effect.”

Imran Ahmad elected

MAP president

Syed Imran

Ahmad a veteran

professional

in the field of

international

media marketing

has been elected

as the President

of MAP. He is the

Chief Executive of Pace Media Limited

in Karachi. He is also the founder of

Mera Karachi Group and President

of Bright Educational Society. He will

be assisted by Vice President, Azfar

Ahsan of Nutshell Communications,

Honorary Secretary, Amer Pasha

of Aladin Informatics and Honorary

Treasurer, Mohammad Ali Habib of

Habib Bank Limited.


TRADE CHRONICLE

Muhammad Azfar Ahsan

elected Vice President

of MAP

Founder of Corporate

Pakistan Group,

Nutshell Conferences

&

Nutshell

Communications

(Private) Limited

Muhammad Azfar

Ahsan is elected as

the Vice President

of Marketing Association of Pakistan

(MAP, an apex body of marketing in the

country) for one-year term.

Azfar is founder of Corporate Pakistan

Group (CPG).

Arshad Jamal elected

UBG VP

Senior customs

agents’ leader

Arshad Jamal has

been elected as

vice president of

United Business

Group (UBG). The

announcement

was made at

a ceremony

organized by All Pakistan Customs

Agents Association (APCAA), North

Zone, in Lahore, attended by leading

businessmen and central leaders of the

UBG attended it.

Gerry’s dnata recognised for

safety excellence in Pakistan

Gerry’s dnata, Pakistan’s largest

ground services provider, has won a

prestigious award for achieving the

highest safety standards. The company

has been recognised for its industryleading

health & safety risk assessment

and control procedures at the 7th

Jawaid Siddiqui hired as

CEO Pakistan Railway

Freight Transportation

Company

The Federal Cabinet

has appointed Jawaid

Ahmed Siddiqui as

Chief Executive Officer

(CEO) of Pakistan

Railway Freight

Transportation Company (PRFTC).

Siddiqui has been associated with

the Marine Group for over a decade

in top managerial positions that is

participating in the outsourcing of

freight wagons by Pakistan Railways.

Farah Naz appointed as

Falcon-i’s first female MD

Farah Naz has

joined Falcon-i,

Pakistan’s

leading IoT fleet

management

company, as

the first female

Managing

Director since

the company’s

inception. An alumna of the Institute of

Business Administration (IBA), Ms. Naz

joins Falcon-i from the energy sector

and is looking to take the company to

new heights.

International Environment, Health

& Safety Awards.

Syed Haris Raza, vice president

of Gerry’s dnata, said: “Safety is a

fundamental, uncompromising tenet

of our business, and one of our six

corporate values. We’ve integrated

safety in all aspects of our operations

and engage our people at all levels

of the organisation

in

continuous

improvement.

“This award is a

testament to our team’s

hard work and industryleading

achievements.

I am immensely proud

of my colleagues and

thank them for their

relentless commitment

to ensuring the highest

level of safety for our

customers and their

passengers, every day.”

Engr Aizaz Ahmad new

MD NTDC

Engr Aizaz Ahmad

assumed the

charge of Managing

Director National

Transmission and

Despatch Company

(NTDC) recently.

Engr Aizaz Ahmad did his Bachelors

in Engineering from UET Lahore, MBA

from Institute of Business Administration

(IBA)-Punjab University, Certified

Project Management Professional and

acquired multiple training courses from

renowned institutes of Canada and

Saudi Arabia.

Kashan Hasan to head

the entire Pakistan

business at Reckitt

Kashan Hasan has

been appointed as the

lead for all Pakistan

operations at Reckitt

– formerly known as

Reckitt Benckiser

(RB). Previously,

Kashan was leading the Health

business in Pakistan since January

2020. During his tenure, the Health

business not only achieved double digit

growth, but was also recognized as the

Market of the Year for Reckitt globally.

Kamran Kamal takes

charge of Pakistan’s largest

IPP - HUBCO

Hubco, Pakistan’s

largest IPP has

announced the

appointment of

Kamran Kamal as its

new CEO.

Previously, he held the position of Vice

President China Power Hub Generation

Company (CPHGC), a joint venture

between HUBCO & China Power

International Holding (CPIH). Kamran’s

appointment as the new CEO (from

within the Company) is a testament of

confidence of Hubco’s shareholders in

its home-grown talent.

Previously, Kamran was Commodities

Trade Head, Engro EXIMP FZE where

he managed Fertiliser, Coal, Oilseeds

and Sugar Trading Portfolio.


TRADE CHRONICLE

Automobile News

Indus Motor bags multiple

awards at the International

EHS Awards

Indus Motor Company (IMC) has been

honoured by The Professionals Network

(TPN), Pakistan,for its exceptional

contribution to the Global Goals,

bagging awards in four categories at

the 7th International Environment,

Health and Safety Summit and Awards

2021.

The awards were presented by the

chief guest,DG Rangers-Sindh, Major

General Iftikhar Hassan Chaudhary, to

the Company’s CFO,Mr Mohammad’

Ibadullahand Manager-Safety, Health

and Environment, Mr Faisal Meghani.

Chief Executive IMC, Ali Asghar Jamali,

sharing his thoughts on the occasion,

said “I will start by thanking The

Professionals Network’smanagement

for providing corporates this excellent

opportunity to not just showcase their

CSR initiatives but also acknowledge

their efforts. It is an honour and we

are very humbled to be conferred with

these prestigious awards.

He added, “Being at the very forefront of

the automobile industry in Pakistan, it is

incumbent upon us thatwe demonstrate

responsible corporate conduct and our

CSR program ‘Concern Beyond Cars’ is

a testament towards that commitment.

One such very recent example has

been the COVID-19 vaccination for

100% of our employees.”

As a signatory to the UN Global Compact,

IMC is fully committed to support the

UN Decade of Ecosystem Restoration

by reducingitsenvironmental footprint.

July 2021: Highest monthly

sales since October 2018

In July 2021, Auto industry sales rose

a staggering c.80% mom to 24,918

units, on account of robust demand

for vehicles of PSMC (up c.3.0x mom)

and INDU (up 50% mom), likely due to

pent-up demand in anticipation of price

reductions for vehicles up to 1,000cc

(as per Budget FY22, effective in July).

On a yoy basis, industry sales surged

2.0x.

Among INDU models, Yaris and

Corolla volumes (up an average 35%

mom) lifted overall sales to c.6,700

units. Hilux volumes rose to c.1,280

units (low base) in July. We highlight

that this is the highest ever monthly

sales recorded by INDU since 1993

(previous high was recorded in March

2021).

PSMC also

recorded the

highest ever

monthly sales in

July of c.15,200

units, surpassing

the previous high seen in April 2018

(14,781 units), led by the sharp

rise in both Alto and Cultus sales

(up c.5.0x/85% mom respectively),

recording highest sales by a model.

Apart from Swift (up 8% mom), all

PSMC models recorded sharp double

to triple digit growth.

The strong sales is largely attributed to

the below-par sales in June (purchases

held back by customers, to avail price

cuts as per the Budget), where PSMC

is the main beneficiary of the recent

incentives for cars up to 1,000cc, in our

view.

Diamond Group investment plan

The Diamond Group of Industries,

the sponsor of one of the largest tyre

manufacturing facilities in the country,

has announced investment plans.

To keep up with the growing market

share in the country’s

south region, the Group

has announced a

HCAR sold c.2,300 units in July,

down 30% mom, dragged by the

decline in the combined sales of

Civic and City of 1,700 units, down

40% mom. We believe that the decline

was due to the phasing out of old

City, ahead of the launch of the sixth

generation model (launched on 29

July), but we believe the City will regain

the lost market share in the coming

months. Recall that HCAR sales were

also divergent in June, up 80% mom

against a 10% mom decline for the

overall industry (this reversed in July).

BR-V sales rose 27% mom, cushioning

the decline in sales.

Tractor industry recorded sales of

c.4,300 units, down c.15% mom. MTL

and AGTL witnessed an average 12%

mom decline in volumes to c.2,900 and

1,400 units, respectively. We expect

tractor sales to resume the uptrend

in the coming

months, as farmer

income continues

to expand

amid elevated

commodity prices

and renewed

government focus

on the Agri-sector.

July witnessed a sharp rise in sales

largely due to the impressive volumes

of both PSMC and INDU amid pent-up

demand as consumers awaited price

reductions following the incentives

announced in the FY22 Budget. Experts

believe that the recent incentives given

to the sector and approval of the highly

awaited Auto Policy will spur demand in

the overall sector. The conducive macro

environment (single-digit interest rates)

and influx of new models will maintain

the robust demand for cars, in their

view.

major investment in southern

Pakistan with a state-of-theart

foam and spring mattress

manufacturing facility that has been set

up at Port Qasim, Karachi.

With a capacity to produce over 1,500

units a day, the plant is all set to

serve Diamond Foam’s

growing footprint in Sindh

and the commercial hub

of Karachi.


TRADE CHRONICLE

Shell and K-Electric inaugurate an

electric vehicle charging station

Shell Pakistan Limited (SPL) and

K-Electric (KE) inaugurated the first

‘Rapid Charger’ station with a capacity

of 50 kWh for Electric Vehicles at the

Shell Askari-4 forecourt located at

Rashid Minhas Road. This initiative

follows the signing of a Memorandum

of Understanding (MoU) between both

companies earlier this year; pursuant

to which, Shell will establish Electric-

Vehicle (EV) Charging Stations at

strategic locations in Karachi, and

KE, in its capacity

as Karachi’s sole

power supplier, will

ensure enhanced

power supply to the

agreed locations.

Speaking at the

inauguration, Taha

Magrabi, General

All-new Honda City launched

Honda Atlas Cars Pakistan Limited

(HACPL) has launched the All-new

Honda City, the most anticipated car

of 2021 at a spectacular event held

at Royal Palm Lahore. The HACPL

Management comprising Chairman;

Aamir H Shirazi, Presidenty & CEO;

Hironobu Yoshimura, Director & Senior

Advisor; Saquib H Shirazi & Senior

Management of HACPL along with

Dealers & Corporates were a part of

the launch event.

Amir Nazir, General

Manager Sales &

Marketing gave an

overview of the car

and highlighted the

features of All-new

Honda City.

The All-new Honda

City comes in five variants, 1.5L

ASPIRE CVT & MT, 1.5L City CVT and

1.2L CVT & MT. All variants carrying

exceptional features.

All variants ensure maximum safety

& security by features like Driver &

Passenger Airbags, ABS + EBD,

Impact Mitigating Headrest, ACE Body

Structure, Pedestrian Injury Mitigation

Technology, ECU Immobilizer and

many more. In Exterior, all variants

carry Premium Dual-Barrel Halogen

Headlights with Daytime Running light,

Manager Retail of Shell

Pakistan Limited stated

that: “Shell Recharge in

Pakistan is a step towards

cleaner energy solutions and is in

line with the government’s strategy to

promote electric vehicles in Pakistan.

K-Electric’s Chief Strategy Officer, Naz

Khan also expressed her pleasure on

the operational launch of this visionary

initiative and said: “Currently, 46% of

Pakistan’s energy emissions come

from burning fossil fuels. Of that, half

is contributed by the transport sector.

Thus, initiatives like this are vital to

our nations longterm

energy and

environmental

sustainability. KE

is proud to be

part of this project

alongside Shell

Pakistan.

attractive rear lights with 15’’ tire

size & high ground clearance.

Interior color is Ivory.

Honda City 1.2L is tailored specially

for the Pakistani market. It is an

exceptionally fuel-efficient variant

and offers an eco-friendly driving

experience featuring a spacious cabin

along with a bigger car trunk providing

greater luggage capacity, infotainment

screen as 7” Capacitive Touch Display

and Auto Door Lock System offering

a comfortable experience throughout

your drive.

Meanwhile, Honda

Atlas Cars posted

a net profit of

Rs928.22 million

with EPS of Rs6.50

for the first quarter

ended June 30,

2021, a bourse

filing said.

The company had posted a loss of

Rs511.02 million with loss per share

of Rs3.58 during the same quarter last

year on account of Covid-19 lockdown

when sales and production were

suspended. Board of directors of the

company in their meeting held via video

link did not announce any dividend.

The company recorded the gross profit

during the quarter at Rs1.59 billion,

up against Rs54.22 million during the

same period last year.

Car loans hit record high

of Rs308bn in FY21

Low interest rates and buyers’

enthusiasm for locally-assembled cars

have taken auto financing to a historic

high of Rs308 billion as of June 2021,

up by 3.6 per cent month on month and

46pc since June 2020, shows the data

released by the State Bank of Pakistan.

The total car financing saw a jump of

Rs97bn compared to Rs211bn in June

last year, according to the SBP figures .

Despite high prices of locallyassembled

cars in the last one and a

half years followed by late deliveries

and high premiums, buyers remained

upbeat to cash in on the opportunity

of low interest rate of 7pc which was

13.5pc in March 2020.

“The share of auto financing in total car

sales now stands between 40 and 45pc

depending on car models as compared

to 15-20pc some two years ago,” said

Head of Research at Arif Habib Limited

Tahir Abbas.

Mobile, auto exports seen

fetching billions of dollars

The upcoming mobile phone

manufacturing plants and expansion

in the auto sector could fetch Pakistan

billions of dollars in exports over

the medium term. It was stated by

Chairman Board of Management of

Engineering Development Board (EDB)

and businessman Almas Hyder during

a meeting with Prime Minister Imran

Khan recently. The meeting was held

to discuss ways to diversify exports.

“Engineering goods trade is the largest

export sector in the world. It is 54

percent of the global trade which is

equivalent to nearly $9 trillion,” Hyder

said. “Pakistan is now in the phase

of transforming. Engineering sector

includes everything from steel bars to

automobiles and from medical devices

and surgical instruments to mobile

phones.”


TRADE CHRONICLE

Telecommunication News

PTCL signs strategic contract

with Whale Cloud Technology

Pakistan Telecommunication Company

Limited (PTCL) has signed a strategic

contract with Whale Cloud Technology

for the transformation of its mission

critical Charging and Billing platform.

Nadeem Khan, Acting CEO & Group

CFO, PTCL & Ufone and Chen

XiaoWei, President South Asia, Whale

Cloud Technology, signed the contract

during a ceremony held at PTCL HQ,

Islamabad. Jafar Khalid, Group CTIO

(Development), PTCL & Ufone, Saad

M Waraich, Group CTIO (Operations),

PTCL & Ufone, Ayaz Ahmed, Vice

President, Whale

Cloud Technology,

Pakistan, also

attended the

ceremony, along with

senior management

from both companies.

This major

transformation marks

a significant step

Careem, the Super App for the greater

Middle East and Pakistan, has recently

announced its partnership with Jazz,

Pakistan’s number one 4G operator

and the most prominent internet and

broadband service provider. This

partnership allows Careem access

to Jazz’s campaign management

tools and provides its colleagues and

restaurant merchants with GSM cellular

service.

Under this partnership,

Jazz will provide tailored

and affordable GSM

voice and data services

for Careem’s employees

and restaurant

merchants, enabling

seamless connectivity

across the country. The

announcement was

made following a signing

ceremony that was

held in Karachi under

the presence of senior

towards PTCL’s efforts to deliver

enhanced user experience to its

valued customers. The initiative

would also serve as a key enabler

for offering the much-needed flexibility

to fixed broadband consumers and

corporate customers, by extending

enhanced billing and invoicing options

of their choice.

Speaking on the occasion, Nadeem

Khan, Acting CEO & Group CFO,

PTCL & Ufone, said, “PTCL with its

focus on offering customer centric

solutions is investing in the upgrade

of its billing solution, to provide stateof-the-art

services to its customers. We

are glad to partner with Whale Cloud

Careem to connect its merchants and employees

through Jazz’s communications solutions

management from both companies.

Commenting on the partnership,

Zeeshan Baig, Country General

Manager and CEO, said: “We are

super delighted to partner with Jazz to

provide our colleagues and merchants

with seamless network solutions.

This partnership is an embodiment of

how companies can come together to

provide their employees and other key

stakeholders with solutions that create

Technology on this strategic initiative,

which is one of the leading suppliers in

Business Support Systems domain in

key markets globally.”

On the occasion, Chen XiaoWei,

President South Asia, Whale Cloud

Technology, said, “We are greatly

honored for the confidence that PTCL

has bestowed upon us, by selecting

Whale Cloud Technology for this

transformation journey. This would

positively impact the customer value

chain and we shall endeavor to exceed

PTCL’s expectation in serving their

customers better.”

PTCL remains at the forefront to take

such initiatives that

will pave the way for

latest Cloud-based

solutions, hence

facilitating efficient

delivery of new and

innovative services

across different

customer segments.

their day-to-day tasks hassle-free.”

Syed Ali Naseer, Chief Business

Officer at Jazz, stated: “By enabling

and empowering those who were

previously immobile, Careem has truly

revolutionized travel across the region.

We’re happy to partner with such

trailblazers and hope to collaborate

more so in the future. Such synergies

are imperative to continue developing a

more digital Pakistan.”

Careem, which recently became a

Super App, has more than 800,000

Captains registered on its

platform. Transforming

into a Super App;

Careem offers multiple

opportunities as it

expands its services from

the mobility of people to

adding mobility of things

and mobility of money,

including food, essential

daily deliveries, peer to

peer credit transfer and

mobile top-ups.


TRADE CHRONICLE

Telenor Pakistan collects

accolades for positive change

Telenor Pakistan continues to make the

country proud by winning six coveted

awards at the Effie Awards held

recently. The Effie Awards recognise

marketing effectiveness and honour

brands with ideas that make an impact.

Telenor Pakistan has won 3 Gold, 1

Silver and 2 Bronze Effiesadding to

its growing list of recognitions and

accolades received from the world over

this year for its impressive roster of

campaigns and products.

Telenor Pakistan’s flagship initiatives,

“Naming the Invisible by Digital Birth

Registration” and the “World’s First

Personalized Data Plan” shone the

brightest by scooping Gold awards in

the categories of Marketing Disruptors,

Media Innovation and Positive change

(Social Good). Winner of a Silver Effie

award in the Positive Change category,

Telenor Pakistan committed to promoting

Skills for a Digital Future via EdTech

In its efforts to reduce inequalities

and provide access to education

for all, Telenor Pakistan has signed

an agreement to scale Orenda’s

Taleemabad project. This step is in

line with the organisation’s focus on

building skills for an accelerated digital

future under its sustainability agenda

and aims to provide high-quality digital

educational services to underserved

students and schools in Pakistan while

building a sustainable business model.

Chief Guest of the occasion,

Honorable Federal Minister for IT and

Telecommunications, Syed Amin ul

Haque, said that, “A key goal of the

Digital Pakistan Policy is to create a

digital ecosystem with infrastructure

and institutional frameworks for the

rapid delivery of innovative digital

services, applications and content.

the service ‘KhushaalWatan

7272’ offers farmers not only

access to localised agricultural

information, weather updates,

agricultural and livestock experts, as

well as financial security through a host

of health and life insurance products.

Driven by its purpose of empowering

societies through connectivity,

Telenor’s KhushaalWatan and the

Digital Birth Registration programs

offer Pakistanis a chance to a better life

using technology, delivering resilient,

secure, and inclusive connectivity.

Telenor Pakistan’s dedication to

Collaboration

t o w a r d s

achieving joint

ambitions is

key for us to truly prosper digitally. A

philosophy which we have adhered to

while designing the Digital Pakistan

Policy 2021. I look forward to supporting

Telenor Pakistan, Orenda and GSMA in

helping us achieve essential milestones

in our journey towards digitalisation.”

Federal Minister further stated that,

this initiative is a true example of how

an innovative idea, leveraged with

technology and partnerships, can be

taken to scale and how technology

can contribute to addressing key

developmental challenges in our

society. “I appreciate that Telenor

Pakistan has always been at the

forefront of developing sustainable

partnerships supported by the latest

technologies for the betterment of

people of Pakistan”, he added.

Via a video

m e s s a g e ,

Honourable

Federal Minister for

Federal Education

and Professional

Training Shafqat

M e h m o o d ,

appreciated

Telenor Pakistan

and its partners for

championing digital

improving livelihoods and its ability to

lead by example is what makes the

network operator of choice for tens

of millions of Pakistanis. This is wellearned

recognition of the organisation’s

ambition to advance the process

of documenting Pakistan’s invisible

soulsand providing the nation’s farmers

with a guiding light throughout the year.

These achievements make Telenor

Pakistan the most celebrated and

acknowledged telecom brand this

year. The awards recognise Telenor

Pakistan’s promise of empowering

Har Pakistani to do more, be more

and achieve more. Effie Pakistan is

a not-for-profit initiative between the

Pakistan Advertisers Society and Effie

Worldwide. It stands for effectiveness in

marketing communications, spotlighting

marketing ideas that work and

encouraging thoughtful dialogue about

the drivers of marketing effectiveness.

education and enabling Pakistan’s

journey towards digital transformation

and empowering students to learn new

skills through emerging technologies.

In his welcome address, Irfan Wahab

Khan, Chief Executive Officer, Telenor,

said, “Telenor Pakistan has been at the

forefront of leveraging technology to

make a meaningful impact in society.

We are committed to introducing

innovative solutions, bridging the digital

skills gap and contributing to the EdTech

ecosystem, while empowering Pakistan

in its journey towards digitalisation.

With this partnership we aim to enrich

young minds by enabling them with the

resources to realise their full potential.”

Haroon Yasin, CEO Orenda Welfare

Trust said, “When Telenor Pakistan

first partnered with us five years ago,

we had reached 1000 children. Since

then, we’ve used technology in all its

forms - smartphones, feature phones,

desktops, even broadcast radio and

television – and now are impacting

the lives of 10 million children through

Taleemabad.” He added, “But our

journey doesn’t end here - by deepening

our technology infrastructure and

extending our services to schools with

the help of Telenor Pakistan and GSMA,

we are moving towards realizing our

vision of making world class digital

learning accessible to all 71 million

children across Pakistan.”


TRADE CHRONICLE

Easypaisa bags 7 accolades

at Effie Awards 2021

Easypaisa, Pakistan’s leading digital

payments platform, has once again

established itself as one of the country’s

biggest brands by bagging seven

accolades at the prestigious Effie

Awards 2021. Easypaisa won 4 gold

awards for its ‘Eidipaisa’ campaign in

the categories of Seasonal Marketing,

Topical Marketing, Marketing Disruptors

and Finance categories, a gold and

silver award in the Finance category

for its ‘Every Number is Welcome’

and the ‘Phatta Note’ campaign

respectively, as well as a bronze award

for the ‘Easypaisa Raahi’ series in the

Marketing Disruptors category.

Effie Awards are an affiliate program

of the renowned Effie Worldwide, a

platform committed to inspiring and

celebrating effective marketing efforts

as well as the brains behind them,

Pakistan Telecommunication Company

Limited (PTCL), national flagship carrier

in the country and PAKSAT, the national

satellite company have announced

the signing of a strategic partnership

to develop and deliver state-of-theart

integrated satellite services in

addressing the ever-evolving national

needs of private and public sector in

Pakistan.

Major General Amer Nadeem HI(M),

Chairman SUPARCO, Sadaquat

Liaquat, CEO PAKSAT Int’l Pvt Ltd,

Hatem Bamatraf, President & Group

CEO PTCL, Zarrar Hasham Khan,

Chief Business Services Officer, PTCL,

along with key industry leaders and

officials from both companies attended

the signing ceremony.

since 1968. Easypaisa’s awardwinning

entries are amongst some

of the most innovative advertisement

campaigns and have been created in

collaboration with Ogilvy Pakistan.

Commenting on the occasion, M.

Mudassar Aqil, CEO, Easypaisa /

Telenor Microfinance Bank, stated;

PTCL & PAKSAT partner for indigenization & delivery

of Satellite Services in Pakistan & region

Under the partnership, PTCL will be able

to provide its national and international

customers with a seamless connectivity

through Pakistan-owned satellites,

which are connected with redundant

satellite hubs and the largest fiber

backbone across Pakistan.

Through this initiative PTCL will enable

PAKSAT as its partner for national

satellite bandwidth requirements,

while, PAKSAT will support PTCL in

deployment of the existing services

of PAKSAT as well as their upcoming

innovative services. This partnership

will ensure installation of satellite

projects with a special focus on

satellite gateway of Ka-Band and IoT

space. Zarrar Hasham Khan, Chief

Business Services Officer, PTCL, said,

“In the modern world, creating a good

product or service alone does not

guarantee success and often does not

receive the traction that it deserves.

There is therefore a need to back

it up with communications that can

drive the right message in the minds

of the target audience. At Easypaisa,

we have always believed in creating

unique campaigns based on concepts

that make our service stand out. It is

indeed an honour to be recognized at

a platform as prestigious as the Effie

Awards and we look forward to keeping

the same momentum in our efforts in

the future as well”.

As a telco-agnostic digital payments

platform, Easypaisa has been making

consistent efforts to transform Pakistan

into a cashless and financially inclusive

society. During the last year, the brand

was also honoured at the One Show

Asia Showcase, Ad Stars and Golden

Roll awards.

“This partnership will enable PTCL

to serve its customers with seamless

connectivity through Pakistan-owned

satellite. This will help us play a pivotal

role in driving digital transformation and

technological revolution in Pakistan.It

will create synergies to connect widely

separated geographical areas with

modern communication facilities, thus

meeting customer expectations.”

Sadaqat Liaqat, CEO PAKSAT said,

“Together PTCL and PAKSAT will

be able to bridge the digital divide in

Pakistan by connecting businesses and

communities in the underserved areas.

With the new satellite MM1 coming

online, this will prove to be the key

enabler of digital transformation in

Pakistan.

This technology will also help corporate

sector and government institutions

in the areas of IoT,

telemetry and highspeed

internet, where

PTCL already has a

vast experience.”

PTCL continues

to develop such

partnerships that

enable innovation

and transformation to

realize the vision of a

Digital Pakistan.


TRADE CHRONICLE

PTCL continues growth momentum Increase

of 8% in Revenue and 38% in Profit

Country’s leading telecom and

ICT services provider, Pakistan

Telecommunication Company Limited

(PTCL), has announced its financial

results for the first half ended June 30,

2021 at its Board of Directors’ meeting

held in Islamabad on July 14, 2021.

The company posted a significant 8

percent growth in its revenues, the

highest since 2014, owing to its robust

performance.

PTCL successfully sustained the

momentum of growth from its last

quarter’s turnaround that had cemented

its market standing as the largest fixed

line telecom player in the country.

The significant growth in revenues is

mainly driven by strong performance

in consumer segment led by Fixed

Broadband services. During the past

quarter, PTCL strongly focused on

enhancing customer experience

through provision of high quality and

fast internet under its flagship ‘Flash

Fiber’ Fiber-To-The-Home (FTTH)

project.

The company is upgrading its existing

infrastructure, besides expanding

FTTH to newer markets to usher in

seamless connectivity for greater

customer enablement and experience.

FTTH’s speedy deployment and

strong performance in Corporate

and Wholesale segments are the

cornerstone in PTCL’s enhanced topline

growth, which along with focus on

cost control program, has significantly

increased the company’s profitability.

PTCL Highlights

• PTCL’s revenue of

Rs 38 Billion for the

half year is 8% higher

than same period

last year, mainly

driven by Broadband

and Corporate &

Wholesale business

segments.

• The company has

posted operating

profit of Rs 2.8 Billion

which is higher by 96%

compared to the same

period of last year.

• Net Profit of Rs 3.7

year.

PTCL Group Highlights

Billion has

significantly

increased by

38% from last

• PTCL Group posted revenue of Rs

68 Billion in first half of 2021 that is 8%

higher as compared to the same period

of last year.

• U Bank continued its growth

momentum and has achieved 17%

growth in revenue.

• PTML (Ufone) posted revenue

growth of 5%.

• PTCL Group delivered strong

financial and operational performance

and posted a net profit of Rs 2.9 Billion

as compared to Rs 33 Million for the

same period of last year.

PTCL Consumer Business:

Consistency in Growth &

Performance

PTCL Consumer Business showed

consistent performance as it reported

4th straight quarter of growth. The

company’s Fixed Broadband customers

crossed 1.5 Million mark, with 44,486

net additions recorded during the

period. Due to COVID-19, Voice

business was impacted, however, all

remaining business segments reported

double-digit growth in revenue.

During the first half of 2021, PTCL

Fixed Broadband business grew by

13.5% YoY, whereas PTCL IPTV

Segment also grew by 14.1%. The

groundbreaking PTCL Flash Fiber

FTTH service showed a tremendous

growth of 52.5% , while PTCL Charji /

Wireless Broadband Segment grew by

18.4%.

Business Services: Continued

Positive Growth Momentum

Corporate and Wholesale businesses

continued its growth momentum

sustaining market leadership in IP

Bandwidth, Cloud, Data Center and

other ICT services segments. The

overall YoY growth has been recorded

at 8%.

PTCL’s Corporate business grew by

14% as compared to the same period

last year, while Carrier and Wholesale

business continued its growth

momentum and achieved 12% overall

revenue growth. International voice

revenue has declined by 5% due to

lower voice traffic and appreciation of

PKR against USD.

PTCL continues to develop strategic

partnerships with leading corporate

entities to offer Software-as-a-Service

(SaaS) in the banking, education,

Cloud and cyber-security verticals.

Furthermore, PTCL, in line with its vision

to revolutionize widespread availability

of IP connectivity in Pakistan, has

signed contract for deployment of

Unified IP Edge network for providing

next generation IP services.

Additionally, 5G technology was

successfully tested in a limited

environment in Khyber Pakhtunkhwa by

PTCL Group in collaboration with Khyber

Pakhtunkhwa Information Technology

Board (KPITB), under the umbrella of

Department of Science and Information

Technology, Khyber Pakhtunkhwa.

Ufone’s license for providing services

in Azad Jammu & Kashmir and Gilgit

Baltistan was also

renewed for the next

15 years by PTA in

June 2021.

Being the backbone

of Pakistan’s

connectivity, PTCL

Group remains at

the center stage to

accelerate and support

the ‘Digital Pakistan’

vision through robust

telecommunication

infrastructure and

enhanced customer

experience.


TRADE CHRONICLE

Banking & Insurance

Atif Bokhari made President,

CEO of Askari Bank

The Board of Directors of Askari Bank

Limited has decided to appoint Atif

R Bokhari as President and CEO of

Askari Bank Limited for a term of three

years from September 1, 2021.

In this connection, the Securities and

Exchange Commission of Pakistan

(SECP) and the Pakistan Stock

Exchange (PSX), Karachi have

received a letter of Askari Bank,

recently.

TPL Trakker Partners with

Bank Alfalah to Offer

Vehicle Tracking Solutions

TPL Trakker, Pakistan’s leading

IoT Company providing Tracking,

Telematics, Mapping and Location

Based Services, has partnered with

Bank Alfalah, one of the country’s

premier financial institutions, to

provide customers of Bank Alfalah with

exclusive discounts on vehicle tracking

products using their cards as part of

this arrangement.

Following the partnership, Customers

of Bank Alfalah will get exclusive

discounts up to 28% on Trakker Plus,

Trakker Premium and the newly

launched TrakkerPRO, allowing them

to drive their newly bought cars with the

least worries.

As a market leader in GPS vehicle

tracking systems with over 19 years of

experience in Pakistan, TPL Trakker

Ltd. offers an unparalleled combination

of technology and customer service.

HBL half year profits up 18.7

percent to Rs18.029 billion

Habib Bank Limited (HBL) net profit

increased 18.7 percent to Rs18.029

billion for the half-year ended June

30, 2021, translating into earnings per

share (EPS) of Rs12.04, a bourse filing

said recently.

The bank earned Rs15.18

billion profit with EPS of

Rs10.32 during the half

year ended June 30, 2020.

An interim cash dividend of

Rs1.75/share was announce,

that took 1H2021 cumulative

dividend to Rs3.5/share.

Analyst Umair Naseer of Topline

Securities in his note said, “Earnings of

the bank came in higher than industry

expectations driven by better than

expected provisioning charge and

improve fee income.”

JS Bank, Emaar ink deal

JS Bank has partnered with Emaar, a

prestigious developer brand, to provide

easy and convenient home financing

solutions at flexible markup rates, a

statement said.

This collaboration would allow Emaar’s

clientele to opt for the conventional

home financing services offered by JS

Bank.

The agreement was signed by JS Bank

President and CEO Basir Shamsie and

Emaar CEO Sohail Baig. Also present

were Chief Product and Marketing

Officer Atif Salim Malik, Head of

Secured Lending Fahad Siddiqui,

Distribution Head Consumer Lending

Zulfiqar Lehri and other representatives

from JS Bank.

Net interest income of the

bank went up 2.8 percent to

Rs64.864 billion in the 1H2021,

from Rs63.075 billion in the

same period last year. However, it

declined 7.6 percent to Rs32.394 billion

in Q2, from Rs35.061 billion in the

same quarter last year. This was in line

with estimates, as SBP had reduced

policy rate.

“HBL’s total provisions were

better than our estimates and

clocked in at Rs1.8 billion in

Q2 2021 versus Rs4.8 billion

in Q2 2020,” the note said.

Fee and commission income also

posted strong growth of 41 percent

year on year to Rs5.9 billion, which

remained higher than its historical

average. Capital gains against sales

of securities also clocked in at Rs1.7

billion in Q2 2021, down from Rs4.4

billion during the same period last year.

Muhammad Ali Baig, Muhammad Haris

Khan, Bassam Ali Khan and Akif Malik

were present on behalf of Emaar.

Shamsie said, “This partnership with

Emaar will serve as a one window

financing solution for potential home

buyers. By working directly with

developers, we are striving to bring

about a much-needed change in

today’s accepted mortgage process

by allowing clients to source properties

and obtain financing accordingly in a

simple and hassle-free process.”

Emaar CEO said, “We are pleased to

partner with JS Bank to provide home

financing product exclusively designed

for Emaar Karachi sea front residences.

It will unlock financing options for

our esteemed customers in current

and future projects. We look forward

to mutually explore opportunities to

provide value-added services to

our customers.”

JS Bank has taken this step to

provide flexible loans to the home

buyers of today, making it possible

for them to borrow as much as 90

percent of the property’s value and

hence bringing home ownership

within the reach of many who would

not be able to afford it otherwise.


TRADE CHRONICLE

HBL wins ‘Best Bank in

Pakistan 2021’ award by

Euromoney

Euromoney awards HBL the accolade

of Pakistan’s Best Bank 2021. Earlier

this year, the Bank also won Asiamoney

award for Best Domestic Bank in

Pakistan 2021. These two awards are

the most prestigious awards in the

banking industry, globally.

The Euromoney citation for HBL

acknowledges “Habib Bank (HBL) is

going from strength to strength under

Muhammad Aurangzeb (President &

CEO). Remarkably, in a year when

most banks around the world were

trying to stem the losses caused by

Covid, HBL doubled its after-tax profits

to Rs 30.9 billion ($193.4 million.”

Mobilink Microfinance Bank

launches Digital Application

Pakistan’s largest digital bank, Mobilink

Microfinance Bank Limited (MMBL)

has launched ‘Dost’, a mobile-based

application that provides a complete

digital banking ecosystem to its

customers and gives them hasslefree

access to financial services round

the clock. The latest addition to the

MMBL ecosystem reflects the bank’s

relentless pursuit for innovation to

foster digital banking and financial

inclusion in the country.

The digital application was launched in

Islamabad by President & CEO MMBL,

Mr. Ghazanfar Azzam along with senior

executives, while dignitaries from the

banking and finance sectors, MMBL

staff as well as customers, and media

were also in attendance.

Pak-Qatar Takaful signs MoU with Mutex

Systems for Sangfor VDI Solution

Pak-Qatar Takaful recently signed an

agreement with Mutex Systems for VDI

Solution by Sangfor. With this solution,

users can access their desktops

virtually from any device or location,

where all processing will be done on

a host server. This will allow PQT to

further minimize risk and enhance

security protocols.

The ceremony took

place at Pak-Qatar

Takaful’s head office.

The MoU was signed

by Mr. Azeem Iqbal

Pirani, CEO, Pak-Qatar

Family Takaful, and Mr.

Jubilee Life Insurance wins

Two Major Awards

Jubilee Life Insurance, the leading

life insurance company in the private

sector, has been awarded with two

major awards for the 3rd year in a

row at the Pakistan Digital Awards

Ceremony 2021.

For the exceptional

outreach, the

campaign for HBL

PSL Season 5

by Jubilee Life

Meezan Bank, Pakistan’s leading

Islamic bank has collaborated with

National Clearing Company of Pakistan

Limited (NCCPL) for developing new

Shariah-compliant products for the

country’s capital market. Through this

collaboration, Meezan Bank will extend

its support in introducing Murabaha

Share Financing System (‘MSF’),

a new Shariah-compliant product,

implemented by NCCPL, that will help

in extending Shariah-compliant stock

financing facilities to stock brokers and

their customers.

The MoU was signed by Mr. Ariful Islam,

Deputy CEO – Meezan Bank and Mr.

Muhammad Lukman, CEO – NCCPL at

a ceremony held at Meezan Bank Head

Adnan Siddiqui

– Director Sales

& Operations,

S a n g f o r

Technologies, along with senior officials

from both organizations.

While speaking at the occasion, Mr.

Azeem Pirani (CEO, PQFTL) said,

“We are glad to sign this agreement

as we will be able to offer more secure

environment to our users with minimum

risk. These kind of initiatives are the

best way forward to

offer convenience

as everything is now

going digital and

security is of big

concern for all of us.”

Insurance bagged the main award in

the category of ‘Best Digital Campaign

of the Year (Small Budget)’ and their

campaign of Befiker Lounge bagged the

second Award in the category of ‘Best

Social Media Campaign (Facebook)’.

At the heart of both campaigns from

Jubilee Life are the faces of the brand,

Mr. Befiker Bilal

Ashraf and Fawad

Alam, with Bilal

being present at the

awards to receive

the award along

with the brand team.

Meezan Bank and NCCPL Join Hands for New

Shariah-Compliant Products for Capital Markets

Office,

Karachi.

A l s o

present

at the occasion were Mr. Mohammad

Asif, GM – Head of Operations

and Mr. Sajid Sikander – Manager

Product Development from NCCPL;

and Mr. Muhammad Raza – Group

Head Customer Support, Mr. Ayub

Baig – Manager Capital Markets and

Mr. Hasan Faraz – Manager Product

Development from Meezan Bank.

Under this agreement, both

organizations will work to enhance

the proportion of Islamic products in

Pakistan’s capital markets and develop

new Shariah-compliant financial

instruments. Meezan Bank is also the

first bank in the country to be inducted

in MSF System, a Shariah-compliant

product of NCCPL, as a Non Broker

Clearing Member for the purpose

of extending Shariah-compliant

financing to the Stock Brokers and

their customers in Pakistan.


TRADE CHRONICLE

Steel & Allied Industry

Sales tax on steel

products notified

The Fede ral Board of Revenue (FBR)

recently notified the fixed value of steel

products for assessment of sales tax

through SRO 985.

The sales tax will be applicable on

the ad valorem basis at the rate as

applicable. The value of steel bars and

other long profile is fixed at Rs140,000

per tonne, steel billets at Rs125,000

per tonne, steel ingots/bala, ship plats

at Rs120, 000 per tonne and other

re-rollable iron and steel scrap at

Rs118,000 per tonne.

It was further clarified that the value

of goods will be the value at which the

supply is made in case the value of

supply of the goods is higher than the

value fixed.

Through a Sales Tax General Order

No7, the FBR has issued details for

licensing of brand name under section

40E of sales tax for specific sectors.

As a result, all existing and new

manufacturers of specific sectors are

required to register their brand of each

product with the FBR before selling

in the market. Every manufacturer

will have to submit an application to

the project director of the track and

trace system along with supportive

documents. The application will include

all details and operations regarding

their businesses/activities.

After the submission of the application

by manufacturer, project office track

and trace system will review the

application and schedule a mandatory

hearing with the manufacturer within

seven working days of the receipt of

the application.

A profile of Agha Steel

Industries Limited

Agha Steel Industries Limited

(ASIL) is a prominent steel re-rolling

manufacturing company in the country

with a rated capacity of 250,000 tons

for graded rebars and 450,000 tons

of billets. Through its recent IPO

in October last year, the company

raised Rs 3.8 billion at a strike price

of Rs32 (floor price: Rs30) and was

oversubscribed by 1.63 times. The

IPO proceedings have gone toward

acquiring new Italian technology for

re-rolling called Mi.Da. Agha is the

only long-steel manufacturer to have

an installed electric-arc furnace for

melting at a capacity of 45 tons (read

our detailed pre-IPO analysis—IPO

Files: Agha Steel’s ‘Midas’ touch, Oct

6, 2020).

The company has been in expansion

mode since 2018. In the first phase,

it raised melting capacity (process

by which scrap is melted to remove

impurities and casted into standardsized

billets) from 250,000 to 450,000

tons and re-rolling capacity (process

by which billets are rolled into graded

rebars) from 150,000 to 250,000 tons.

In the current second phase, the rolling

capacity would be raised to 600,000

tons.

In FY20, the company’s gross margins

stood at 24 percent compared to

Amreli’s 7 percent and Mughal’s

10 percent. The six-year revenue

CAGR between FY14 and FY20 was

25 percent which translated to a 33

percent compounded annual growth

rate in net profits.

Agha’s capacity utilization remained

strong between FY15 and FY18—

holding 70-85 percent production

amid the capability to roll out 150,000

tons of rebars. However, this began

to fall once the new expansion came

in and capacity grew to 250,000 tons.

Production kept growing though—last

year amid the pandemic dropping

into the world’s lap, the company still

managed to increase production by 22

percent and also raise utilization back

up—now levelling at 61 percent. This

will continue to grow because of the

optimistic outlook on demand.

Agha’s investment in the new rolling mill

would allow it to further double down

on costs as the steel making process

becomes more efficient with the new

technology—the new mill will reduce

power consumption and will have a

continuous rolling process which would

result in a higher billet to rebar yield and

will potentially also allow the company

to provide tailored rebar sizes based on

customer demand in the future.

The company had a leveraged balance

sheet with a reasonably high debt to

equity ratio. However, by raising money

through an IPO, this was improved—

by Dec 2020, the debt to equity

was lowered to 1.15x while interest

coverage ratio also substantially

improved from 1.8 in Dec-19 to 3.68,

according to company officials.


TRADE CHRONICLE

Travel World

No plan to privatise PIA:

Ghulam Sarwar

Aviation Minister Ghulam Sarwar Khan

recently put to rest all rumours about

privatisation of Pakistan International

Airlines (PIA), saying the government

had no plan to sell it off.

He rather said four new aircraft would

be added to the PIA fleet this year.

Speaking at a press conference at PTI

Public Secretariat here, the minister

said Pakistan aviation industry was

lucky as its losses during pandemic

were much lower than other countries

where, according to International Air

Transport Association reports, the

losses were $400 billion.

Ambiance Boutique Art

Hotels welcomes new

General Manager

Ambiance Boutique

Art Hotels is pleased

to announce Nayer

Zaman as the hotel’s

new General Manager

Operations.

A senior hospitality professional with

over 26 years of experience gained in

the UK, Pakistan and the Middle East,

Zaman holds an MBA in business and

finance from Leicester University UK,

and has managed large scale hospitality

projects. His last assignments in

Pakistan included serving as Director

Sales and Marketing, Serena Hotels as

well as Director Business Development,

Avari Hotels. For the past 10 years, he

was general manager of a large hotel

in the UK.

Located in Lahore, Pakistan’s art

and cultural hub, the hotel features

24 luxurious guest rooms, which are

meticulously designed to offer guests a

unique, personalized experience.

PIA, HBL partner to bring exclusive

discounts to their customers

Pakistan’s national flag carrier, PIA

and the country’s largest bank, HBL

recently signed an agreement to offer

HBL clients an exclusive discount on all

their international and domestic travel

tickets. The agreement was signed

between Air Marshal Arshad Malik, Chief

Executive Officer– PIA and Muhammad

Aurangzeb,

President &

CEO – HBL.

Present

at the

ceremony

were Sultan

Ali Allana,

Chairman – HBL and senior managers

from both the organizations.

Air Marshal Arshad Malik congratulated

both the teams for creating a new

dimension in air travel in the country.

Speaking on the occasion, he said,

“PIA is following a comprehensive

restructuring plan to turnaround the

stature of the national flag carrier. We

are en route to resurgence despite the

PIA signs MoU with SIH

Islamabad

Pakistan International Airlines (PIA)

and Shifa International Hospital (SIH)

Islamabad inked a memorandum of

understanding (MoU) as part of mutual

collaboration on the ‘Safe Skies’

initiatives undertaken by both the

organisations to protect the passengers

during their air travel.

The MoU was signed between Chief

Supply Officer PIA Air Commodore

Jibran Saleem Butt and Chief Medical

Officer, Shifa International Hospital

Islamabad Dr Zeeshan Bin Ishtiaque at

PIA offices in Blue Area Islamabad.

recent challenges, and

this is only possible with

an enhanced focus on

partnerships and alliances

with organizations like HBL.” He said

that PIA and HBL are long term partners

and natural allies, and it is about time we

join hands to promote tourism across

the country. He termed Sultan Ali Allana,

Chairman- HBL as a great friend of PIA

and a guiding beacon for the corporate

sectors of

Pakistan.

Muhammad

Aurangzeb,

President &

CEO – HBL,

commenting

on the

occasion said “We are delighted to have

entered into this strategic partnership

with PIA. HBL has long-standing

relationship with PIA. This alliance

will make travel more rewarding for

our customers and it is another step

towards HBL’s commitment to support

the national agenda to promote travel

and tourism across Pakistan.”

Emirates ramps up

operations

With the recent announcements of

the UAE easing entry protocols for 12

countries*, and the UK adding the UAE

on its ‘amber list’, Emirates is actively

responding to the spike in travel

demand across its network to make

it easier for customers to connect to

Dubai and beyond through the scaling

up of its operations.

In line with the easing of restrictions,

the airline will be restoring capacity

across 29 cities on its network on

over 270 flights as well as fine-tuning

its schedules to boost frequencies

and capacity as demand proliferates

for international leisure and business

travel.


TRADE CHRONICLE

TRADE CHRONICLE

TRADE CHRONICLE - Jul - Aug - 2021 - Page #

TC July-August 2021 Issue

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