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www.tradechronicle.com Vol 68 -Issue Nos. 9 & 10 - Sep - Oct. 2021 Rs. 250/-
ESTABLISHED IN MARCH 1953
68 th - YEAR OF PUBLICATION
TRADE CHRONICLE
PAKISTAN’S OLDEST MONTHLY MAGAZINE OF COMMERCE, TRADE, INDUSTRY & PUBLIC AFFAIRS
Pink October messages
growing in Pakistan
***
The exports target for textile
set at $25 billion by FY2023
***
Karachiites suffering
drags PTI attention!
***
Amanullah Aftab
Chairman PTA
Zahid Hussain
Chairman PFMA
Salman Aslam
President KATI
Muhammad Idrees
President KCCI
Javed Iqbal
Chairman PSAA
Ahmed Jamal Mir
Chairman PAA
Zaka Ashraf
Chairman PSMA
Mohsin Sheikhani
Chairman ABAD
TRADE CHRONICLE
TRADE CHRONICLE - Sep - Oct - 2021 - Page #
TRADE CHRONICLE
www.tradechronicle.com Vol. 68 Issue Nos. 9 & 10 Sep - Oct 2021 Rs. 250/-
TRADE CHRONICLE
PAKISTAN OLDEST MONTHLY MAGAZINE OF COMMERCE, TRADE, INDUSTRY & PUBLIC AFFAIRS
Circulation Audited by
ABC
CONTENTS
Founded by:
Late Abdul Rauf Siddiqi
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Abdul Rab Siddiqi
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Abdul Rafay Siddiqi
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Shoukat Hayat
Aftab Alam
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editorial
• Pink October messages growing in Pakistan
• The exports target for textile set at $25 billion by FY2023
• Karachiites suffering drags PTI attention!
article & feature
• Pak, Saudi leadership capable of leading world: President Alvi
• Innovative Pvt Ltd wins Fastest Growing Brand of the Year Award!
• Looking at rupee’s fall with the new normal lens
By Mohiuddin Aazim
• Impacts of Depreciation of Rupee
By Dr. Muhammad Nawaz Iqbal
• Pakistan Listed Food Manufacturers’ Conference
ports, Shipping & railway
• Capt. Javed Iqbal elected as Chairman of PSAA
• 3 billion dollar projects for Karachi, says Mahmood Moulvi SAPM
A Chronicle Report
• PQA to halve port charges
• KPT dredging works: deeper draft to attract bigger vessels
• PIBTL pays significant royalty to PQA
A Chronicle Report
• High Commissioner for Pakistan in Bangladesh meets Chairman of CPA
• Pakistan ports’ cargo handling posts double-digit growth in FY21
• QCCI members invited to invest in Gwadar
• Daily cargo clearance at PICT reaches 51pc
• PNSC Group has declared a profit after tax of Rs. 2,265 million during 2021
A Chronicle Report
• CPEC panel approves ambitious plan for Karachi coastline development
leather industry
• Tasawar Hussain elected PLGMEA chief
• Amanullah Aftab becomes Chairman PTA
• Zahid Hussain becomes new Chairman of PFMA
• Leather exports need skills for value addition
• Bangladesh leather industry has earned $271.34 million in July –Sept 2021
• Indian leather industry recorded a very significant growth of 82.38%
regular features
• Automobile News, Banking & Insurance News, Cement Industry,
• People Events, Telecommunication News, Travel World, Steel & Allied Industry
TRADE CHRONICLE - Sep - Oct - 2021 - Page # 3
TRADE CHRONICLE
We begin with the name of Allah the Magnificient
Pink October messages growing in Pakistan
In 2020, at least 2.3 million women had breast cancer and 685 000 deaths globally
(WHO, 2021). At the same time, in Pakistan, about 36,000 breast cancer cases were
diagnosed and 13 000 women, unfortunately, died, leaving behind a trail of the
painful story for the rest of the family members. Therefore, governments, hospitals,
NGOs, and Societies must continue to create awareness and empower women to
go for treatment, if any, at an affordable cost, accessible for the needy people in
particular. It is applaudable that all mobile networks give an important message
during October, which is a well-noticed contribution in spreading the Pink Oct
message.
According to a WHO report, breast cancer is by far the most common cancer in
women worldwide, both in developed and developing countries. “At present, there
is a need for more research about the causes of increasing breast cancer, and
however, early detection of the problem remains the foundation of its control.”
FROM THE
EDITOR’S
DESK
Breast Cancer Awareness Month (BCAM), which began its journey in the USA in
1985, has become an annual international health campaign organised by major
breast cancer charities every October. It aims to increase awareness of the disease
and raise research/funds for its cause and prevention, diagnosis, treatment and
cure. Later in 1993, the Breast Cancer Research Foundation was founded and
established the Pink Ribbon as its symbol.
Pink October messages growing in Pakistan and various events were organised
this month, including seminars, walks and pink illumination of landmark buildings.
The real credit goes to NGOs, hospitals and private sectors, and even the Pakistan
government is officially taking part on a big scale to promote awareness.
ABDUL RAB SIDDIQI
President Dr Arif Alvi underlined the need to raise awareness among women about
breast cancer, its early detection and treatment to save precious lives. He regretted
that due to lack of education and awareness, the breast cancer mortality rate in
Pakistan was almost 50 per cent, which was quite alarming. The President rightly
urged the female doctors should hold regular sessions in women colleges and
universities regarding breast cancer to create awareness about the disease. He
insisted on establishing a registry at central and provincial levels to collect data
about breast cancer cases.
Pakistani businesses have also joined the annual October drive to Think Pink with
increasingly innovative ways. Telenor has announced to set up Pakistan’s first
breast cancer hospital and had started fundraising. We hope people respond with
generosity and other organisations follow the path and set hospitals in each big
city.
As the world observes October as the Breast Cancer Awareness month globally,
Pakistani telecom company Ufone plays its part in drawing attention towards the
urgency of early detection and treatment of this disease by lighting up ‘Ufone Tower’
in bright pink colours, which is a landmark building in the heart of Islamabad. This
initiative was taken to create awareness of breast cancer and check the spread of
the disease amongst women in Pakistan.
Early diagnosis dramatically improves the chances of a cure. Treatment typically
involves surgery to remove the breast’s faulty tissue, and other expensive
treatments, such as chemotherapy and radiation therapy, may be recommended.
We pray to Almighty Allah to save all women from this illness, but we should also
highlight awareness the entire year, not limited to October.
TRADE CHRONICLE - Sep - Oct - 2021 - Page # 4
TRADE CHRONICLE
The exports target for textile
set at $25 billion by FY2023
Pakistan total textile exports
reported mixed trend in last three
years. It earned export revenue of
$13.32 billion in Financial Year 2019
(July – June) but rose to $12.53
billion in FY20 and reached $15.40
billion in FY21. The All Pakistan
Textile Mills Association (APTMA)
is now anticipating textile export
to surge at $21 billion in FY22 and
hopefully $25 billion in FY23. But
subject to continued support in a
new incentivised textile policy and
subsidy on energy supply. Some
business leaders differ, saying it’s
improbable, overoptimistic.
Likewise, the growing export trend
was continued in September 2021
and textile exports increased by 25%
Year on Year to $1.5bn compared to
$1.2bn in Sep’20. This was possible
despite logistics and supply chain
issues such as congestion on
ports and higher freight costs, and
the growth pattern was also 2%
Month on Month. Experts credit
the opportunity created due to
higher export orders from the US,
Europe, and Asian regions after
Karachiites suffering drags
PTI attention!
Without KCR / Metro system,
Karachi’s over 20 million population
looked for some solution to their
transport woes for a long time, but
to no avail. But luckily, Karachi
Circular Railway and GreenLine
Buses Project finally resulted in
Sindh-Islamabad “agreement” only
for joint working.
Resultantly, Prime Minister Imran
Khan graciously blessed the
“Metropolitan city without a Metro”
to again “formally inaugurate” a
wickedly neglected and forgotten
KCR project.
Likewise, the GreenLine buses
project ran in October, with 80 buses
reportedly “being brought”.
Karachiites already saw the ill fate
of previous projects and many bus
lines were hit in “accidents” by
the transport mafia and sent rest
in garages, with KCR blockade.
Ascertaining that must not happen
reopening global economies
and easing Covid-19 lockdowns.
That increased demand for textile
products and increased new
customer base and value addition,
which mainly led to the increase
in textile exports during the said
period.
Because of these envisaged growth
targets, APTMA has informed the
government that more than 100 new
textile units are being set up across
Pakistan and the investment of $ 5
billion in the textile industry after 13
years due to regional energy price
for the entire value chain. However,
it requested the government
ensure the uninterrupted supply
of RLNG for power stations so that
intermittent flow in the pipeline
remains regular. As a result, 500,000
fresh employment opportunities are
to be created.
APTMA advocates that regional
competitive energy Tariffs of 9 cents/
KwH for electricity and $ 6.5/MMBtu
for gas/RLNG across the entire
textile value chains are critical to
achieving $21 billion exports in FY22
as 85% of production is exported.
In contrast, only 10% of units are
vertically integrated, completing a
ever again is binding on all and
sundry. On the one hand, the federal
government appears intent on
bringing the KCR dormant project
to life by mid-2023, as indicated
by reports of the meetings chaired
by Federal Planning Minister Asad
Umar. Still, the Sindh government
appears to be allegedly delaying
matters on account of bureaucratic
hurdles.
The Frontier Works Organisation
(FWO) has to begin construction
on the KCR route in two phases, for
which the Sindh government must
pay the agency Rs6bn as its share.
Regrettably, no contract or work
order seems to have materialised
so far in this regard, local media
remarked.
Health, education, housing and
transport are among citizens’
fundamental rights that most
governments in the world provide,
but not our governments, as we
still lack them, and must ascertain
people’s welfare. Right away,
governments should present their
set target of $ 25 billion in FY23.
The government’s incentives to the
textile sector, including a reduction
in gas prices for export-oriented
sectors, rebates for exporters,
lower financing rate on LTFF (Long
term financing facility), and export
refinance scheme, provided support
in these crucial times. Both nonvalue
added and value-added
segments showed double-digit
growth on a YoY basis (1QFY22).
Cotton Yarn remained in demand as
sales increased by 69% YoY to $289
million compared to $170 million
earlier.
We hope the government will
continue rationalising imports
tariffs on raw materials and power
subsidies. Experts believe that the
demand for Pakistan’s textile exports
will likely remain strong due to the
continued rerouting of orders out
of China and other regional Asian
countries. The capital investments
by various textile exporters is an
indication of solid order flows, while
the recent PKR depreciation also
enhances exports’ competitiveness.
We firmly believe that all these
factors will increase our exports and
ease pressure on the trade deficit.
viable design and upgrading of an
active national transport policy
actively and ensure its proper
implementation.
If governments cannot do it, they
should partner with the private
sector and strictly monitor it,
with fines against violations, or
ensure the private sector provides
safe, economical and respectable
transport services.
The KMC – deprived of many of its
rightful powers – seems to loiter in
everlasting slumber without funds or
authority – even for simple garbage
disposable - and was therefore
paralysed without doing much to
provide civic amenities to people.
We urge both the centre and the
Sindh government should do their
utmost to make the KCR dream a
reality. Only then will we see a visible
improvement in the lives of those
millions of commuters who reside in
this sprawling city.
TRADE CHRONICLE - Sep - Oct - 2021 - Page # 5
TRADE CHRONICLE - Sep - Oct - 2021 - Page # 6
TRADE CHRONICLE
Pak, Saudi leadership capable
of leading world: President Alvi
President Dr Arif Alvi while lauding their
approach on international issues, said
the leadership of Pakistan and Saudi
Arabia was capable to lead the world
through their vision.
He was addressing a seminar on
‘Pak-Saudi Relations: Past, Present
and Future’ recently, said having their
religious affinity, the people of Pakistan
were devoted for security of the holy
land of Saudi Arabia.
Federal Ministers Chaudhry Fawad
Hussain and Pir Noorul Haq Qadri,
Special Assistants to PM Allama Tahir
Ashrafi and Shahbaz Gill, Foreign
Secretary Sohail Mahmood, Saudi
Ambassador Nawaf Bin Said Al Maliki
attended the event held in connection
with the celebration of 91st National
Day of Saudi Arabia.
The president said the first treaty of
friendship between Pakistan and Saudi
Arabia was signed in 1951 and that
both the countries had a long history
of friendship. He said even after India
carried out atomic explosion, Pakistan’s
friendly countries stood by it to build the
capacity and achieve deterrence.
The president especially lauded the
treatment of Pakistani workers in
Saudi Arabia who also contributed to
Saudi development besides sending
remittances to Pakistan. He viewed
that no incident in the history could
hurt the Pak-Saudi relationship as both
the countries showed their exemplary
friendship even at international forums.
President Alvi said the whole Muslim
Innovative Pvt Ltd wins Fastest
Growing Brand of the Year Award!
Innovative Pvt. Ltd. (IPL), a Pakistani
fin-tech was awarded Fastest Growing
Brand of the Year Award in the
category of Self-Service Banking by
the President of Pakistan - Dr Arif Alvi.
Self Service Banking includes the
banking services where customers
conduct financial transactions such as
cash deposit and withdrawal, inquiry,
transfer, bill pay-ment, loan, currency
exchange, and wealth man-agement
through self-service equipment such as
ATMs, CCDMs and Recyclers. IPL has
world looked at the Saudi
leadership for guidance on
international issues. He said
at a time when the commercial
and other vested interests dominated
the international affairs, the world
needed a leadership which formulated
its policies on the basis of morality.
Pakistan and Saudi Arabia could fill the
gap, he added.
Lamenting the phenomenon of fake
news, the president said the Holy
Quran had also warned about the same
tendency which also led to the prevailing
situation in Afghanistan and Iraq. The
president appreciated the vision of
Saudi Crown Prince Mohammed Bin
Salman for environment protection
as well as Saudi Vision 2030 which
featured the development of a modern
and unique city. He said Pakistan
and Saudi Arabia effectively handled
the COVID pandemic regardless of
whatsoever the fake news said about
the two friendly states.
Later, the president gave shields to
Saudi Ambassador, Tahir Ashrafi and
four overseas Pakistanis for their
remarkable contribution to strengthen
Pak-Saudi ties. Meanwhile, Minister
for Information and Broadcasting
Chaudhry Fawad Hussain Thursday
said that Pakistan and Saudi Arabia
enjoyed strong and cordial religious
partnered with globally
leading brand, Diebold
Nixdorf, to provide the
best in Self-Service
Banking for Pakistan and Afghanistan.
IPL remains the partner of choice
for Banks and Financial Institutions
because of its consistency in delivering
quality products and exemplary
services through its expansive country-wide
service infrastructure that
delivers IPL’s core value of customer
centricity. IPL’s comprehensive range
of high-quality VAS soft-ware solutions
provide its customers with a complete
peace of mind.
and historical relations based on
Islamic brotherhood.
Speaking at a seminar marking the 91st
National Day of Saudi Arabia here, he
said that the people of Pakistan had a
relationship of heart with Saudi Arabia
as holy cities of Makkah Mukarma and
Medina Munawwara were located in
the kingdom. He said every Pakistani
considered Saudi Arabia as their
second home.
Al Saud family had rendered valuable
services for Saudi Arabia, he said,
adding that King Abdul Aziz was an
extraordinary personality known all
over the world. Pakistan’s relationship
with Saudi Arabia, he said, dated back
to pre-independence times when King
Abdul Aziz visited Karachi in 1940
along with his five brothers.
He said that when in 1946, Bengal was
hit by famine, on the request of the
Quaid-e-Azam Muhammad Ali Jinnah,
Saudi Arabia gave generous donations
in All India Muslim League relief fund.
The minister said that since creation of
Pakistan, Kingdom of Saudi Arabia had
always supported Pakistan in difficult
times.
He said that in 1960s, the relationship
between Pakistan and Saudi Arabia’s
defence establishment were set up
which had grown with the passage of
time and could be termed as exemplary.
The minister said that the relations
between the two countries got new
impetus through Prime Minister Imran
Khan and Prince Muhammad bin
Salman and they would further grow in
near future.
Speaking on the occasion, Mr. Naveed
Ali Baig (CEO of IPL) said, “What started
in 1987 is today a network that spans
2 countries, 90+ cities, 8000+ATMs
and an irreplace-able experience in
excellence. This tremendous ascent
excites me about what 34 years of pure
hard work and dedication can further
achieve It makes me want to believe”.
IPL has deployed over 10,000 Self
Service Devices in Pakistan and
Afghanistan - and has sold the
highest number of ATMs year on year
consecutively for the last 4 years. IPL
employs 160+ Field Engineers across
Pakistan to ensure highest uptime for
its customers.
TRADE CHRONICLE - Sep - Oct - 2021 - Page # 7
TRADE CHRONICLE
Looking at rupee’s fall with
the new normal lens
By Mohiuddin Aazim
The State Bank of Pakistan has
recently taken multiple measures —
ranging from the imposition of cash
margins on hundreds of import items
to requiring the purchase of dollars to
biometric verification of buyers — all
aimed at avoiding a further fall of the
rupee.
The rupee has lost about 8.5 per cent
of its value against the US dollar since
the beginning of this fiscal year on July
1. (It sank to 170.96 a dollar on Oct 6
from 157.54 on June 30).
The central bank is desperately trying
to stabilise the exchange rate. But
unlike in the past, it is not intervening
in the currency market in a big way
for two reasons. First, learning from
past mistakes the central bank has
decided in principle to let market forces
determine the exchange rates. And
second, its forex reserves that cover
the merchandise import bill of just over
three months are not strong enough
to do this, particularly at a time when
regional peace remains clouded after
the Taliban takeover of Kabul in mid-
August.
These are tough times for those who
hate to change. The pandemic has
given birth to the new normal. We must
change the way we used to think and
act.
The fall of the rupee — a 100pc
increase in the trade deficit (between
July-September) behind it — is not new
to Pakistan. But this time around the
traditional quick fix cannot work. Why?
The post-pandemic global economy
has changed. And, the scope of the
new normal is expanding. There is little
room for applying quick-fix solutions to
structural problems.
Remember what Pakistan did back in
2018-19 when the rupee lost about
32pc value against the US dollar?
It borrowed funds extensively from
‘brotherly’ and ‘friendly countries’. That
was the old way of doing things.
This option is not available now. Why?
Those nations (ie Saudi Arabia, UAE
and China) and even other countries
such as the US and UK that we could
have looked up to for seeking forex
funds have tightened controls over
forex spending. (The US withdrawal
from Afghanistan which many see as
hasty came about when Washington
realised it cannot afford to fund a neverending
war).
And, Beijing is now examining more
closely than before the release of its Belt
and Road Initiative funds, according to
reports in the Chinese and international
media. Saudi Arabia and the UAE are
focused on maintaining— or even
enhancing — the import coverage ratio
of forex reserves to cope with ongoing
uncertainties of the pandemic.
The rupee has fallen in recent months
despite the fact that Pakistan, just like
other countries, received its due share
of forex support from the International
Monetary Fund to fight the pandemic;
the country also received enough
amount of free vaccines from the
World Health Organisation and friendly
nations and part of its foreign debt has
been rescheduled.
This is the new normal. Richer nations
individually, as part of the global
collective as well as international
institutions, are realising their
responsibility to help economically poor
countries steer out of the pandemicrelated
forex crises. But there is another
new normal.
Scientifically advanced nations that led
vaccine development programmes and
initially shared those vaccines free of
cost to other nations are now making
billions of dollars in increased exports
of vaccines and pharmaceutical and
health care products. Export demand
for this category is sure to remain
strong in the foreseeable future.
And, countries that are not prepared
to exploit this potential demand would
remain a net importer of vaccines
and pharma and healthcare products.
Pakistan is one of them, though it is now
trying to expand the base of its pharma
industry and boost pharma exports.
Similarly, the country has only recently
started exporting cellphones made in
Pakistan with foreign collaboration to
reduce net imports of smartphones
that consume over a billion dollars a
year. Meanwhile, the SBP has made
bank financing of imported automobiles
more difficult — to reduce the overall
merchandise import bill and cut the
trade deficit.
The new normal of external account
management is this: do what is required
to become a net exporter of something
big — and do it quickly. Or remain
dependent on imports — and let the
trade deficit rise and local currency fall.
The global container freight rates
index has more than tripled in the past
nine months. The index rose from
$3,143 in December 2020 to $10,323
in September 2021 mainly due to the
pandemic-related interruptions and
a surge in global trade as economies
started to recover from the 2020
recession. This has led to a sharper
increase in the cost of exports and
imports of countries like Pakistan
whose local shipping industry is least
developed.
This phenomenon is the new normal
in international trade. But developing
the local shipping industry in the short
term is not possible as it requires huge
funds, vast expertise and a long time.
It means Pakistan’s services import bill
will continue to rise, putting pressure on
the overall (merchandise and services)
trade deficit.
That brings up another critical issue.
That is, Pakistan’s historical inability to
increase its trade with neighbours. Out
of our four neighbours (Afghanistan,
Iran, China and India), we have enjoyed
consistently friendly relations only with
China. With Afghanistan and Iran, our
trade relations have remained erratic
both due to our bilateral issues as well
as the sanctions imposed on Iran by the
West. As for India, the lesser said the
better.
Trading liberally with immediate
neighbours would eventually become
another new normal pretty soon,
strengthening further growing intraregional
trade. But when exactly South
Asian nations will learn to resolve their
conflicts amicably and embrace this
new normal cannot be predicted.
Courtesy - DAWAN
TRADE CHRONICLE - Sep - Oct - 2021 - Page # 8
TRADE CHRONICLE
Impacts of Depreciation of Rupee
By Dr. Muhammad Nawaz Iqbal
Since creation of Pakistan, the country
facing different challenges sometimes
due to geopolitical factors, sometime
internal political situation and mostly
due to financial crises. Economic
challenges of Pakistan are increasing
day by day and there are multiple
factors behind this. The major factor
is external debt and depreciation
of currency which exceeds with
the passage of time. The more the
devaluation of currency the high the
debt burden has been facing b nation.
The rising debt brings multiple
challenges including high inflation,
unemployment and poverty are the
major one. On the other side, the exports
of the country will rise which brings
revenue to country but simultaneously
both impacts not maintain a balance of
economy and negative impact reflects
with high ratio. The purchasing power
will also be affected due to high inflation
which reduces consumer purchase
power.
It depends on the law of one value,
which says that, in case there are
no exchange costs nor exchange
obstructions for a specific decent, then,
at that point, the cost for that great ought
to be something similar at
each area. the conversion
scale between dollar and
Pak rupee really saw in the
unfamiliar trade market is the one that
is utilized in the buying power equality
examinations, so similar measure of
products could really be bought in one
or the other cash with similar starting
measure of assets.
Contingent upon the specific
hypothesis, buying power equality
is expected to hold either over the
long haul or, all the more firmly, in the
short run. Speculations that conjure
buying power equality expect that in
certain conditions a fall in either cash’s
buying power (an ascent in its value
level) would prompt a corresponding
abatement in that money’s valuation
on the unfamiliar trade market. he
Pakistani rupee depreciation against
the US dollar until around the beginning
of the 21st century, when Pakistan’s
huge current-account excess pushed
the worth of the rupee up versus the
dollar. Pakistan’s national bank then,
at that point, settled by bringing down
financing costs and purchasing dollars,
to safeguard the nation’s commodity
intensity. Another impact of rupee
depreciation is poverty due to economic
vulnerability.
Financial weakness is a vital factor
in the ascent of poverty in Pakistan,
weakness likewise emerges from
social feebleness, political disturbance,
and ill-working and distortionary
foundations, and these additionally are
significant reasons for the ingenuity
of weakness among poor people.
Unemployment is another major factor
comes due to depreciation of currency.
Government focuses to initiate
different youth programs to control
unemployment ratio b offering different
low percentage loan based schemes.
In 2016 government took a surprising
drive by declaring the Prime Minister’s
Youth Program to battle joblessness in
the country.
This program has an expansive material
of plans empowering youth and helpless
portion of society to improve business
openings, financial strengthening,
securing abilities required for profitable
work, admittance to IT and conferring
hands on preparing for youthful alumni
to work on the likelihood of finding a
useful line of work. Leader’s Youth
Program incorporates six plans which
are Prime Minister’s Youth Business
Loan Scheme, Prime Minister’s Interest
Free Loan Scheme, Prime Minister’s
Youth Skill Development Program,
Prime Minister’s Program for Provision
of Laptops to Talented Students,
Prime Minister’s Fee Reimbursement
Scheme, Prime Minister’s Youth
Training Scheme. Rupee depreciation
is a fall in the worth of a cash in a
drifting conversion scale framework.
Rupee depreciation can expand a
nation’s commodity movement as its
items and administrations become
less expensive to purchase. ongoing
current record deficiencies and high
paces of expansion, by and large
have devaluing monetary forms. Cash
deterioration, assuming systematic and
steady, further develops a country’s
product seriousness and may work on
its import/export imbalance after some
time. Yet, a sudden and sizable money
devaluation might terrify unfamiliar
financial backers who dread the cash
might fall further, driving them to haul
portfolio speculations out of the country.
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TRADE CHRONICLE - Sep - Oct - 2021 - Page # 9
TRADE CHRONICLE
Pakistan Listed Food Manufacturers’ Conference
AKD Securities Ltd. organized Pakistan
listed Food Manufacturers’ Conference
where some of leading local food
manufacturers, namely PREMA, BNL,
TOMCL, UNITY and NATF participated
and shed light on industry’s and their
company’s outlook over medium
and long term. On the demand side,
optimism was noted across the board
with different companies placing their
estimate for FY22 growth to follow
the same trajectory as in FY21. The
managements of all the companies
showed concern over rising prices of
global commodities and its likely impact
on local market. In order to hedge their
exposure to foreign exchange, the
companies have built up additional
inventories, providing a cushion to their
earnings, however, they need to passon
the costs to consumers in order
to sustain the margins in long term.
In past, the local food manufacturers
have raised their prices in line with
food inflation and expect to increase
their prices by 8-10% in FY22 to pass
on the rising costs to consumers.
Furthermore, the companies showed
optimism regarding their expansion
plans in the local market (PREMA,
BNL, UNITY) as well in international
markets (TOMCL, NATF).
Food sailing through the
competition: Competition from local
unregistered manufacturers remains
a key challenge for all the registered
companies. With rising prices, the
tendency of consumers to shift to local
and unregulated products is on rise
whereas imported products from Iran
are denting the sales in rural areas. In
addition to this, the relaxed legal system
in the country has resulted in several
counterfeited products which remain a
constant challenge. Nevertheless, the
companies seem confident about their
outlook and future potential as exhibited
by double digit growth in topline by
PREMA (+41%YoY), BNL (+22%YoY),
TOMCL (+21%YoY), NATF
(+20%YoY) whereas UNITY has
depicted a whopping growth of
134%YoY in 9MFY21.
PREMA: The management is eyeing
sustainable indigenous growth of herd
size by 7%YoY in FY22 (~350 milking
animals) and further addition of ~650
imported animals in FY23 where it
expects to double the production
output in next 3 years. The company
currently has around ~5,000 animals
whereas it has targeted the growth
to reach 100,000 animals in long run.
Hence, the company is still nowhere
close to its maturing phase. Besides,
the product mix contains 30% value
added products which the company
expects to increase to 50% by adding
new products in both dairy and allied
category. The company believes there
is a lot of space to grow whereas the
legislation to sell only pasturized milk is
expected to open more avenues for the
company.
BNL: Bunny’s is known for its
premium quality products and has a
large footprint in Punjab and northern
region (Islamabad, Peshawar etc.)
The company is currently operating
at full capacity in bakery segment
(85% revenue contribution) whereas
the utilization ratio in snacks category
(15% revenue contribution) stands
above 90%. The company has taken
up several expansions where currently
a fully integrated buns line is in trial
stage and will be operational by this
month. In addition to this, the company
is in process to establish an automated
frying machines to enhance the capacity
of nimco snacks, a new cake line and
automated bread line with a capex
of PkR600mn. The current market
share of BNL in the bread category is
35% in Punjab, higher by the leading
manufacturer in country (Dawn ~ 25%).
In order to expand its footprint, BNL
is eyeing to grow beyond the Punjab
region to penetrate the growing market
in Karachi and other parts of Sindh.
TOMCL: The company is currently
exporting to 15 countries currently and
plans to enter Chineese, Russian, and
other CIS countries. TOMCL is the sole
player involved in the exports of Offal
category which is a premium product
in international markets, proving
higher margins to the company. The
management has also decided to
introduce pet food category in USA, the
samples of which have already been
approved by FDA. The current product
mix of the company is 45% chilled
meat, 40% frozen and remaining 15%
from Offal exports. In order to capitalize
the growing market for Offals, the
company has taken up expansion plans
to enhance its existing product capacity
and new capacities of; i) Red offal (10
tons/day), ii) White offal (10 tons/day),
iii) Freezer storages (300 tons), iv) Heat
treated meat processing unit (300tons/
month), and v) dehydrated pet food
processing units (300 tons/month).
In addition to this, TOMCL plans to
acquire an existing facility at Karachi
Export Processing Zone (EPZ) and
capitalize on duty free imports of raw
materials.
UNITY: The company has depicted a
phenomenal growth of 134%YoY in
9MFY21 owing to a growth in volumes.
During FY21, the company confronted
major global supply disruptions
resulting in higher freights coupled
with PKR depreciation, however, the
management has been able to pass
on the costs whereas the sales of
Sunridge has increased the gross
margin from 7.3% in FY20 to 8.2% in
9MFY21. The management expects
the international production of Palm
Oil to improve by the end of FY22
therefore helping the prices to ease. In
addition to this, the company expects
higher production of Soybean, Canola
and Sunflower oil, expected to subside
the inflating prices. Going forward, the
company is considering to make entry
in rice business through acquisition
or by setting up a new rice mill. In
addition to this, it plans to enhance
its capacity in refinery and fractional
plants whereas it intends to become a
complete consumer staple company by
adding FMCG products its portfolio.
NATF: The topline of NATF has
grown by 20%YoY after being listed
in global e-commerce platforms such
as Amazon and Walmart resulting in
a boost in international sales (30%
contribution from exports in FY21 vs
6% in FY20). Within domestic sales,
60-70% of the revenue comes from
central and northern regions whereas
the volumetric growth in rural areas
now exceeds the growth in urban areas
owing to increasing women labor force.
Hence, the company is setting up a
new factory in Faisalabad to cater the
growing demand in these regions as
well as in north. The company takes
pride in its research and development
life cycle where it identifies the
changing preferences of its consumers
in order to introduce new products and
discard the ones which are no more in
demand. Going forward, NATF plans to
make further expansions and automate
its existing processes to increase the
efficiencies.
TRADE CHRONICLE - Sep - Oct - 2021 - Page # 10
TRADE CHRONICLE
Ports, Shipping & railway
Capt. Javed Iqbal elected
as Chairman of PSAA
Capt. Javed
Iqbal of
Eastwind
Shipping Co.
(Pvt) Ltd has
been elected
unopposed
as Chairman
of Pakistan
Ship’s Agents
Association
(PSAA) for
2021-2022.
He has about 28 years’ hands-on
experience at the shore in the shipping/
maritime industry in addition to his
sailing affair.
Likewise, Jawed Iqbal of Shoaib
Shipping Agencieswas elected as
Senior Vice Chairman, and Ovais-ur-
Rehman of Globelink Pakistan (Pvt)
Ltd as Vice Chairman respectively for
the same term.
Annual General Meeting (AGM) of
Pakistan Ship’s Agents Association
(PSAA) was held recently, and the
following office-bearers were declared
elected to the Executive Committee for
the term 2021-2022:
Mohammed A Rajpar, Younus Vayani,
Adil Khan, Mazhar Imam Hashmi,
Abdul Rauf, Taimur Badat and Amin
Sardar Ali Bhola were elected as
Executive Committee Members.
On occasion,
Capt. Javed
Iqbal has
expressed
his intention
of better and
closer working
between the
Maritime
sector, Business Community and the
Government significantly to increase
exports from Pakistan.
He appreciated the outgoing Chairman
Mohammed A Rajpar and his team for
their hard work to serve the interests of
the Ports and Shipping sector, which is
vital for the development and economic
progress of every country.
3 billion dollar projects for Karachi,
says Mahmood Moulvi SAPM
A Chronicle Report
Several significant big projects under
the China-Pakistan Economic Corridor
(CPEC) framework would be set up at
an estimated cost of over $3 billion in
Karachi. It includes fishery port, three
berths, housing projects and other portrelated
projects. These projects are in
discussion with China, and a formal
announcement will be made soon.
Mahmood Moulvi, Special Assistant
to Prime Minister on Maritime Affairs,
Government of Pakistan, disclosed this
while addressing the august gathering
at the 11th Sustainable Port & Shipping,
Logistics & Supply Chain Summit &
Exhibition (LOGISTICONEX), held in
Karachi recently.
He has also encompassed the
challenges and progress of Karachi
Port, Port Qasim and Gwadar port
and suggested worthy measures for
steering the docks to meet future
challenges.
He said KPT is now capable of
handling big draft container vessels
and oil tankers. Besides, Eastwharf
and Westwharf of port would be
connected through a bridge for which
port authority would sign construction
contract later this month. Port Qasim
has acquired four tugs to improve
the port’s efficiency; he added that a
new container and two general cargo
terminals are planned for PQ.
He announced a new oil terminal had
been added at Karachi port while
another one was upgraded.
Regarding Gwader port, he has
suggested that the matter is being
taken up with the Chinese government
to market port to function the port fully.
In the past government subsidized the
urea shipped to begin the shipping
business, he added.
Shipping investment
The Pakistan National Shipping
Corporation is going well and has now
focused more on transporting crude oil
and soon adding a new tanker to its
fleet. He asked the local investors to
come forward and enter the shipping
business as the government of
Pakistan offer good incentives such as
concessional bank fiancé and ten-year
tax exemption on income etc.
Many speakers presented
thought-provoking papers,
and if their suggestions are
implemented, it would bring
a good chance in the port
infrastructure, shipping business and
improve the supply chain in country.
The spesker inludes Mehmood Tareen,
Founder & CEO, The Professionals
Network, Ateeq Ur Rehman, CEO,
Coastals Packers & Movers, Trade &
Economy Analyst – Topic: Conference
Introduction; Khurram Aziz Khan,
Chief Executive Officer, Pakistan
International Container Terminal – Topic:
Opportunities of Improvement in Ports
& Supply Chain; Mohammad Rajpar,
Managing Director, General Shipping
Agencies and former Chairman PSAA –
Topic: CPEC Challenges from a Ports &
Shipping Perspective; Khurram Mirza,
Executive Director Special Planning &
Projects, Pakistan National Shipping
Corporation – Topic: Development in
Shipping Industry; Dr. Asif Inam, HoD
Maritime Science, Bahria University
Karachi Campus – Topic : Challenees
and Opertunities of Ocean decade
for Pakistan; Mohammad Hanif Ajari,
Director Export Network, Getz Pharma
(Pvt) Limited – Topic: Shipping Crisis
during the Pandemic Outbreak; Tariq M,
Rangoonwala, Chairman, International
Chamber of Commerce (Pakistan) –
Topic: Evaluation of Pakistan’s Current
Trade Connectivity; Aamir Khan, Senior
Manager Business Development, FAP
Marine Terminals Limited – Topic:
Emerging Opportunities of CPEC;
Saquib Ahmed, Country Managing
Director, SAP- Pakistan – Topic: Digital
Supply Chain Management.
Zubair Motiwala, Chairman,
Businessman Group (BMG) Former
Presided, KCCI has also addressed
the audience and drawn government
attention toward various problems
Karachi business people and exporters
face. He requested the government
to ensure interrupted gas supply to
industry to uplift the country exports.
With this, the Sustainable Port &
Shipping, Logistics & Supply Chain
Summit & Exhibition (LOGISTICONEX)
concluded successfully, organized by
the Professionals Network (TPN). The
theme of the conference was “CPEC
the Way to Success and Prosperity for
Pakistan”.
The next Summit & Exhibition will
be held in 2022, announced by the
organizer.
TRADE CHRONICLE - Sep - Oct - 2021 - Page # 11
TRADE CHRONICLE
PQA to halve port charges
In a bid to enhance quantum of
exports, the Cabinet Committee on
Transportation and Logistics decided
that the Port Qasim Authority (PQA)
would reduce wet and dry port charges
by 50 per cent.
The committee in a meeting presided
over by Minister for Maritime Affairs
Ali Zaidi asked the Karachi Port Trust
(KPT) to examine the possibility of
reduction of port charges as done by
the PQA and put up a proposal before it
through the ministry of maritime affairs
for consideration.
KPT dredging works:
deeper draft to attract
bigger vessels
Dredging of berths and channel of
Karachi Port has been accorded priority
since January 2021 so as to maintain
designed depths for more and diverse
cargo handling.
One of the major dredging platforms,
namely BHD ALI, has been made
operational in January this year after
a gap of several years. The dredger
is also carrying out night operations
for greater output and cumulatively
dredged approximately 160,000 cubic
meters during the period from 1st
January 2021 to 31st August 2021,
with substantial savings to KPT, and
has achieved designed depths of 11m
(berths # 1, 4 & 5), 13m (berths # 6,7,
10 & 11), 10m (berth # 20 & 21) and
13m (Oil Piers 1 & 3).
This fast track dredging operation has
enabled KPT to accommodate deeper
draft vessels, improve turnaround time,
safer berthing alongside berths, reduce
demurrage charges and enhance
revenue generation in line with the
vision of Federal Minister of Maritime
Affairs Syed Ali Haider Zaidi to facilitate
shipping and business community and
general public as well.
PIBTL pays significant
royalty to PQA
A Chronicle Report
According to the annual report of
Pakistan International Bulk Terminal
Limited (PIBT), during the year 2021,
the Company has shown growth in
revenue, gross profit and earnings per
share owing to the consistent business
performance of handling 10.072
million tons of cargo and the impact of
exchange gain on currency revaluation
of USD denominated foreign loans.
Contribution to the economy
It’s worth mentioning that ~35% of the
Company’s revenue goes to Port Qasim
Authority in terms of royalty which
amounted to Rs.
3,720 million this
year. Further,
contribution to
the national
exchequer in lieu
of income tax,
sales tax and
other government
levies amounted
to Rs. 2,056 million this year.
PIBT, a flagship project of the Marine
Group of Companies (MRGC), is
Pakistan’s first terminal for handling
coal, clinker and cement on a Build
Operate Transfer (BOT) basis at Port
Muhammad Bin Qasim to meet the
industry’s demand for mechanized
handling of dirty bulk cargo.
For thirty years, the Company entered
into a BOT contract with Port Qasim
Authority (PQA) on November 06,
2010. The terminal has been developed
High Commissioner for
Pakistan in Bangladesh
meets Chairman of CPA
High Commissioner for Pakistan,
Dhaka, Mr Imran Ahmed Siddiqui, called
on Rear Admiral Shahjahan Chairman
Chattogram Port Authority. The two sides
discussed matters of mutual interest,
including collaboration between port
authorities of Pakistan and Bangladesh.
CPA handles nearly 90% of all seaborne
trade, highlighting its importance to
the economy of Bangladesh inspite of
several deficiencies. CPA contributes
to 33% of Bangladesh GOVT. revenue.
Bangladesh being a global front-runner
in the national interest following the
master plan of the Ministry of Maritime
Affairs as the common-user terminal
for dirty bulk cargo in Pakistan. The
project warrants significant importance,
being the linkage of the supply chain
catering to the national requirement
of coal imports for the power plants,
cement manufacturers and industrial
consumers, and increasing the port
infrastructure capacity for handling
imported coal in Pakistan.
A huge capital in excess of USD 300
million was invested in the project, which
also attracted direct foreign investment
through, inter alia, International
Finance Corporation’s (financial arm
of the World Bank) debt financing and
equity investment in PIBT. It is pertinent
to highlight that
the Company is a
listed entity on the
Pakistan Stock
Exchange and
currently it has
more than 20,000
shareholders
from the public.
PIBT has been
designed to handle the export of clinker
& cement and the import of coal, which
is used for power generation by IPPs
and other industries such as cement,
steel, and others.
PIBT has the current capacity to handle
12 million tons of coal import and 4
million tons of export of clinker and
cement which can altogether be further
enhanced up to 20 million tons per
year. PIBT has been developed over
61.775 acres of backup area, including
coal and cement storage facilities and
9.72 acres of waterfront area i-e jetty
and trestle.
in the RMG exports has also achieved
a significant position in some other
export items like leather goods, jute, tea
and frozen foods. On the other hand,
Bangladesh imports electronic and
automobiles goods, consumer goods,
chemicals etc. from china, Japan and
India.
TRADE CHRONICLE - Sep - Oct - 2021 - Page # 12
TRADE CHRONICLE
Pakistan ports’ cargo handling posts
double-digit growth in FY21
Cargo handling activities at Karachi
Port Trust (KPT) and Port Qasim
Authority (PQA) recorded an
impressive growth of 25 per cent and
13.72pc in FY21 owing to 18pc and
26pc rise in the country’s exports and
imports, respectively.
According to the Pakistan Bureau
of Statistics (PBS), exports in FY21
soared to $25.3 billion from $22bn in
FY20 while imports stood at $56bn
as against $44.5bn in FY20, thus
keeping goods movement at twin ports
alive amid issues like lockdown, port
congestion, higher freight charges, etc
all over the world.
A senior maritime official said, despite
Covid-related challenges, Pakistan’s
trade remained progressive on the
back of their achievement with an
initiative of imposing smart lockdowns
and keeping logistics moving.
He said till 3QFY21 the country was
also affected by lockdowns, but port
cargo handling picked up momentum
from the fourth quarter after local
situation improved and exports to
the US, EU and China had recorded
significant increases, he
added.
A KPT official said the
total cargo handling grew substantially
to 52.279 million tonnes in FY21 from
41.840m tonnes in FY20.
In imports, total volume stood at
36.469m tonnes in FY21 as compared
to 27.206m tonnes in FY20. The
share of total dry cargo went up by
36.53pc to 24.670m tonnes in FY21
from 18.069m tonnes in FY20 in which
dry general cargo and dry bulk cargo
volume stood at 18.170mn tonnes and
6.5m tonnes as compared to 15.358m
tonnes and 2.711m tonnes, up by 18pc
and 140pc over FY20. Total liquid bulk
import cargo handling grew by 29pc to
11.799m tonnes from 9.137m tonnes in
2019-20.
In exports, KPT’s total cargo volume
improved by 8pc to 15.810m tonnes
from 14.634m tonnes which included
9.689m tonnes of dry general cargo
and 5.584m tonnes of dry bulk cargo
during 2020-21 as compared to 8.841m
tonnes and 5.130m tonnes in 2019-20.
The volume of liquid bulk export cargo
fell by 19pc to 0.537m tonnes from
0.663m tonnes.
A 15.34pc rise was registered in
container handling in twenty-foot
equivalents (TEUs) to 2.988m tonnes
from 1.992m tonnes. Out of the above
figures, the number of import TEUs was
1.155m in 2020-21 as against 1.001m
TEUs in 2019-20. Export TEUs stood
at 1.142m versus 0.991m in 2019-20.
Arrival of ships at the KPT increased
by 21.5pc to 1,813 ship from 1,492
in FY20. Out of total ship movement,
number of container ship rose by 17pc
to 869 from 743 followed by 61.5pc
rise in bulk cargo ship to 281 from 174,
five per cent rise in general cargo ship
to 169 from 161 and 19pc hike in oil
tankers to 494 from 414 ship in FY20.
Meanwhile, cargo handling activities
at the Port Qasim also swelled to 58m
tonnes in 2020-21 versus 51m tonnes
in 2019-20. In 2016-17, total cargo
handling was 37.3m tonnes. As per
data available at PQA’s website, arrival
of ships at the PQA rose to 1,709 in
FY21 from 1,520.
Surging imports
Pakistan exports during the first month
of FY22 posted a year-on-year highestever
growth of 17.3pc to $2.34 billion.
Considering this achievement along
with an ambitious plan of achieving
$38.7bn to $40bn exports during FY22,
the government has extended the
duty-free import regime to more raw
materials.
Imports also swelled during past
couple of months, which although put
a negative mark on current account,
however this has increased port
handling. Land route trade agreements
with CARs is also expected to increase
Pakistan ports cargoes, he hoped.
“With these developments, Pakistani
port handling during FY22 is expected
to remain brisk,” the maritime official
added. Pakistan’s import in July went
up by a whooping 52pc to $5.6bn from
$3.67bn in July 2020.
Courtesy - DAWN
QCCI members invited to invest in Gwadar
Gwadar Port Authority (GPA) Chairman Naseer Khan
Kashani has invited members of the Quetta Chamber of
Commerce and Industry (QCCI) to take advantage of golden
opportunities for investment in the port city. Speaking at a
meeting with the QCCI members he said the government
had already announced plans to extend maximum facilities
and incentives to those businessmen who intended to make
investment in Gwadar. He assured them of giving priority to
their proposals about investment and trade.
The GPA chairman said more trade-friendly measures
were being taken. He said that steps would be taken for tax
exemption and other incentives. “We will be
able to build 31 berths in Gwadar by 2050.”
He said the project was in the eyes of the
enemies and they were trying to derail it, but
“we all have to work together to complete it
successfully”.
Daily cargo clearance at
PICT reaches 51pc
The per-day clearance of trade cargoes at the Pakistan
International Container Terminal (PICT) reached 51 per
cent in August from less than 40pc last year, a development
that will help reduce the cost of doing business. The
information was shared during a meeting of the National
Assembly Standing Committee on Maritime Affairs presided
over by Amer Ali Khan Magsi recently when members
of the committee directed the Collectorate of Customs
Appraisement (East) Karachi for removal of blockage and
congestion of containers at the PICT.
Collector of Collectorate of Customs Appraisement (East)
Karachi Fayaz Rasool Maken briefed the committee on the
steps taken for the clearance of imported consignments.
The automated Web-Based One-Customs cargo clearance
system has ensured that 51pc of the consignments are
cleared within one day.
TRADE CHRONICLE - Sep - Oct - 2021 - Page # 13
TRADE CHRONICLE
PNSC Group has declared a profit after
tax of Rs. 2,265 million during 2021
A Chronicle Report
PNSC Group has declared a profit after
tax of Rs. 2,265 million, a decrease
of 6% compared to the last year’s
profit after tax of Rs. 2,414 million.
A significant reason for the decline
in profitability is a decrease in group
revenue from managed vessels
by 18% (Rs. 8,414 million v/s
Rs. 10,278 million last year).
At the same time, there is an
increase of Rs. 474 million (Rs.
736 million v/s Rs. 263 million
last year) in revenue from the
chartered segment.
The total cargo transported in FY
2021 increased to 11.09 Million
MT compared to 8.437 Million
MT in FY 2019-20, reflecting a
significant increase of 31.4%.
In addition, aggressive costcutting
measures were adopted
across all segments of the business.
As a result, despite an annual CPI of
8.9%, the administrative expenses
declined by 7.6%, rental expenses by
15.2% & other costs by 22.3%
PNSC having a total DWT capacity
of 831,711 metric tons, lifted cargo
of about 11.09 million tons (FY 2020:
8.437 million tons) during the year
under review, which is equivalent
to approximately 10.06% (FY 2020:
9.34%) of the country’s total 110.271
Calling it a “game-changer”, the federal
government has unveiled an ambitious
plan to rebuild Karachi’s coastline
under the China-Pakistan Economic
Corri dor (CPEC) with $3.5
billion “direct Chinese
investment” that aims to
overhaul city’s seaboard
with new berths for the
port, a new fishery port
and a ‘majestic harbour
bridge’ connecting it
with Manora islands and
Sandspit beach.
The Karachi Coastal Com
prehensive Development
Zone (KCCDZ) —
spread over 640 hectares
or 1,581 acres on the
Future Outlook
CPEC panel approves ambitious plan
for Karachi coastline development
million tons (FY
2020: 94.321 million
tons) seaborne trade
by volume.
The company remains optimistic
about the performance of the PNSC
group in the future. The tanker freights
have shown signs of recovery-albeit
gradually. The BDI is currently hovering
at ten years high, which is expected
to yield strong results for our bulk
carriers. The fleet expansion delayed
due to market volatility will be pursued
aggressively in FY 22. Materialization
of the transaction will positively impact
the revenues as well the bottom line of
PNSC. Business diversification & entry
into the marine services business is also
being followed vigorously. Persistence
of Delta variant & outbreak of newer
western backwaters
marsh land of the
Karachi Port Trust (KPT)
leading to revamp one of
the oldest city slums Machhar Colony
relocating its more than half a million
population — is an initiative of the
Ministry of Maritime Affairs.
variants of Covid remains the key risk
to the recovery of tanker freight rates.
The rising global container shipping
freight also remains an area of concern.
Tightening of environmental regulations
by IMO is another risk to profitability in
years to come. All efforts will be made
to mitigate the adverse impact of the
risks emanating from volatility in freight
markets and tightening of regulatory
framework & the associated
cost pressures.
Dividend Announcement
The Board of Directors is
pleased to recommend a cash
dividend for the year ended
June 30, 2021, on ordinary
shares at 30%, i.e. Rs. 3.00 per
share for the approval of the
members in the upcoming 43rd
Annual General Meeting.
PNSC is a shipping company
that undertakes international operations
by transporting petroleum products
from the Middle East to seaports in
Pakistan for domestic consumption and
through the global carriage of dry bulk
commodities on international routes.
The majority of PNSC’s revenue
streams are pegged to international
freight indices, inextricably linking the
Corporation and creating a dependency
on the global economy’s health.
(Abstract from PNSC annual report for
2021)
The KCCDZ is the latest addition to
CPEC projects aimed at providing
Karachi with an ultra modern urban
infrastructure zone, placing it among
the top port cities of the world.
The announcement came from the
top when a key member
of Prime Minister Imran
Khan’s cabinet sha red
some details of the project
and claimed it carried
“enormous potential for
global investors as well”.
“And the best thing of
this project is that it’s
solely based on foreign
[Chinese] investment
without any loan,” said
Minister for Mar i time
Affairs Syed Ali Zaidi while
speaking to media.
TRADE CHRONICLE - Sep - Oct - 2021 - Page # 14
TRADE CHRONICLE Leather Industry
Tasawar Hussain elected
PLGMEA chief
Tasawar Hussain Butt has been
unanimously elected as the Chairman
of the Pakistan Leather Garments
Manufacturers and Exporters
Association (PLGMEA) Central for the
year 2021-2022 in the first meeting
of the newly-elected 20th Central
Executive Committee.
The Committee also approved the
nomination of Rashid Arshad Zahur
as Senior Vice Chairman and Kashif
Rahim as Vice Chairman. Tasawar
Hussain Butt was elected first time the
Chairman Pakistan Leather Garments
Manufacturers and Exporters
Association (Central Office).
Earlier, Muhammad Saleem Ahmed
and Abdul Salam have been
unanimously elected as the Chairman
and Vice Chairman of Southern Zone in
the first meeting of newly-elected 20th
Southern Executive Board at PLGMEA
Offices, Karachi.
Central Chairman Tasawar Hussain
advised the members of the difficult
time, ahead in the aftermath worldwide
economic crunch due to Covid-19. He
said he would try to capitalize the merit
of the only value-added leather sector
of the country. He said that industrial
cost structuring needed improvement
by policy support of the government.
Fiscal, monitory, tariffs and taxation
need rationalization.
Chairman Southern Zone Saleem
Ahmed strongly urged to Prime Minister
of Pakistan and Federal Minister for
Commerce to activate TDAP and
Commercial Consular in Pakistani
Missions Abroad to help exporters
in international market for showcase
Pakistani leather garments products on
a large scale.
He said federal government needed to
review trade policy in order to enhance
the exports of leather garments and
allied industries, as leather garments/
goods industry has excellent potential
for growth as well as to earn foreign
exchange for the country.
Amanullah Aftab becomes
Chairman PTA
Amanullah Aftab of
M/s. Hafiz Tannery,
Karachi, has been
elected as Chairman
of Pakistan Tanners
Association (PTA) for
2021-22. Likewise,
Azmat Saleem
Sheikh of M/s. Leather Coordinators,
Sahiwal as Sr. Vice Chairman and Aziz
Ahmed of M/s. AMA Leather Industry,
Karachi as Vice Chairman for PTA
same year.
The fifteen members of the central
executive committee are Mr. Agha
Saiddain ( M/s. Royal Leather
Zahid Hussain becomes
new Chairman of PFMA
Mr Zahid Hussain
from Rafum
Industries (Borjan)
has been elected
new Chairman of
Pakistan Footwear
Manufacturing
Association
(PFMA) for 2021-
2022.
Similarly, Mr Rashad Islam of Waresa
Industry Pvt Ltd was elected as the
Senior Vice Chairman and Mr Wasim
Uz Zafar Quadri of ASA International as
Vice Chairman for PFMA.
In his welcome speech, Mr Zahid
applauded the contribution of Ex-
Chairman Mr Imran Malik for
establishing Pakistan’s First IPFTC
(Italian Pakistan Footwear Technology
centre) and PSDH (Pakistan shoes
design hub). Newly elected Chairman
Mr Zahid Hussain vowed to take these
projects to the next level of excellence
by creating a meaningful impact on
Pakistan’s Industry and economic wellbeing.
He is determined to best utilize these
facilities for the betterment and growth
of the Footwear sector of Pakistan
by developing more linkages with
supporting industries. After resuming
Industries Ltd., Lahore ), Mr. Badre
Alam ( M/s. Badre Alam Traders,
Lahore ), Mr. Ejaz Ahmed Sheikh
( M/s. Bombal Leathers, Karachi ),
Mr. Hamid Arshad Zahur ( M/s. Noor
Leather Garments (Pvt) Ltd., Karachi
), Mr. Irfan Iqbal ( M/s. Nova Leathers
(Pvt) Ltd., Karachi ), Mr. Muhammad
Musaddiq ( M/s. Siddiq Leather Works
(Pvt) Ltd., Lahore ), Mr. Muttaher
Shafique Pasari ( M/s. Pasari ORG.,
Lahore ), Mr. Shafique Ahmed ( M/s.
Shafique Leather Enterprises, Karachi
), Mr. Shakil Ahmed ( M/s. Universal
Leather (Pvt) Ltd., Karachi ), Mr. Tahir
( M/s. Tauheed International, Lahore
), Kh. Muhammad Mehr Ali ( M/s.
Khawaja Tanneries (Pvt) Ltd., Multan ),
Sh. Saqib Saeed Masood ( M/s. Khas
Industries (Pvt) Ltd., Karachi ).
charge, His prime objective is to make
all-out efforts to engage Government
relevant organs to create a conducive
environment for future cooperation that
can serve exporters, Manufacturers,
component supplies, Large, Medium
and Small Industries of Footwear along
with mutual interest of SMEs.
He emphasized the challenges faced
by the industry, especially drawing
policymakers attention toward critical
issues faced by the industry and
manufacturer. Some of the most
important are Extension of Local Taxes,
and Levies Drawback Scheme is
enhanced to 4%, to enable the industry
to position itself in the international
market, waiving off ACD and RD on all
raw materials for the footwear industry
and put them in the lowest slab of
custom duty, to promote “Made in
Pakistan Policy”.
He’ll continue to seek guidance and
suggestions from the Executive
members’ committee to enhance the
manufacturing base of Footwear that
leads to an increase in export and
generate employment opportunities in
the country.
On this occasion, Ex-Chairman Mr
Imran Malik thanked the EC members
and tremendous support of the
Footwear industry, which helped him
achieve success for the greater interest
of the PFMA and footwear industry of
Pakistan.
TRADE CHRONICLE - Sep - Oct - 2021 - Page # 15
TRADE CHRONICLE
Leather exports need skills
for value addition
Leather exports have been climbing
and the PBS export data shows that
exports including leather garments,
leather gloves, and other leather
products (excluding footwear) for the
first two months of FY22 (2MFY22)
were up by 8.2 percent year-on-year.
Leather footwear for the same period
was up by 20 percent year-on-year,
while tanned leather exports, which are
in the unprocessed form were also up
by 44 percent year-on-year. In August
2021, leather manufacturer’s exports
grew by a meagre 3.4 percent year-onyear,
whereas the footwear and tanned
leather exports were up by 38 and 49
percent year-on-year, respectively.
Although, leather exports rebounded
in FY21, total leather exports dropped
by 9.36 percent year-on-year in
FY20 that included first 4-5 months
of the pandemic during nationwide
and global lockdowns. According to
a mapping study with the financial
support of the European Union on
Pakistan’s leather products, shipment
data showed that Pakistan’s leather
and leather goods sector took a hit as
the exports of all leather products took
a dive in 2020 due to the pandemic.
Bangladesh leather industry has earned
$271.34 million in July –Sept 2021
During the first three months, July –
Sept 2021 of the ongoing fiscal year,
the Bangladesh leather industry has
earned export revenue of $271.34
million compared to $225.15 million
earned in the same three months of
the previous fiscal year. It translates to
double-digit growth of 20.52 on a YoY
basis, according to the Bangladesh
Export Promotion Bureau (EPB).
Indian leather industry recorded a very
significant growth of 82.38%
According to the
Indian’s Council for
Leather Exports
(CLE), export revenue
of leather and leather
products during the
first four months of the
ongoing financial year
i:e between April 2021
and July 2021 stood at $1.406 billion
as against the performance of $771.37
However, unlike FY20, total exports of
the leather industry including tanned
leather, leather apparel, leather gloves,
leather footwear, and their leather
manufactures witnessed 8.9 percent
growth year on year in FY21 despite
the pandemic and restrictions.
The resumption of growth in Pakistan’s
leather exports is a good sign, but it
must be noted that growth witnessed
did not come from resumption of
global demand but came from decline
in exports from India. Share of leather
exports in the country’s total exports
has fallen from 4.9 percent in FY16
to 3.6 percent in FY20, and a major
concern is the need for skilled and
trained manpower.
In a conversation with local media,
Fawad Ijaz Khan - the founder
chairman of Pakistan Leather
Garments Manufacturers and Exporters
Association (PLGMEA) highlighted that
leather is a labor-intensive industry that
requires expertise and skills rather than
technical knowhow because of very
basic machinery.
There is a lack of skilled labor force in
the country, which is a key inhibiting
factor for the growth of the sector -
such as lack of sufficient vocational
The breakdown
shows that
Bangladesh bagged
$31.96 million on
exports of finished leather between
July and Sept 21 compared to $23.80
million in July – Sept 2020. It offers a
growth of 34.29 %.
The exports of leather products have
also expanded to $70.67 million during
these three months from the $53.0
million of the same months of last year.
It translates to an incline of 33.34 per
million in April – July
2020. It recorded
a very significant
growth of 82.38%.
The breakdown shows that the finished
leather exports rose in value by 79.92%
to $155.99 million from $86.70 million,
leather footwear by 72.25% to $579.15
million from $ 336.22 million, and
leather garments by 77.22% to $101.90
million from $57.50 million during this
period.
The leather goods export also
training institutes, leather fashion, and
designing institutes focusing on highly
skilled workers for the industry.
However, that’s not all; the country also
suffers from low level of value addition
in the product-mix relative to regional
peers. Out of all the finished leather used
across the globe, highest percentage is
for footwear followed by leather goods,
which is where the sector’s labor
intensity must focus. Also, strict tannery
effluent and discharge management,
and global requirements also result
in very few internationally recognized
brands of leather products in Pakistan.
Bringing efficiency and environmental
sustainability in the sector will not only
help the sector improve export revenue
but also play a role in fight against
climate change.
Courtesy - Business Recorder
cent on a YoY basis.
On a more positive development, the
leather footwear exports grew 13.72%
to $168.71 million from $148.36 million
during this period.
The Bangladesh Export Promotion
Bureau (EPB) set the leather industry’s
export target at $1.031 billion for the
financial year 2021-22 (July – June)
compared to the $941.67 million earned
in the previous fiscal year.
increased by 104.59% to $357.19
million from $174.59 million during this
export period. Similarly, Saddlery and
Harness export rose to $81.58 million
from $33.93 million, reflecting a growth
of 140.44%.
Meanwhile, the Ministry of Commerce
and Industry has set an export target
of $400 billion for merchandise exports
during this year, i.e.2021-22. Out of this,
the target fixed for the leather industry
is $5.89 billion. CLE plans to undertake
maximum efforts to achieve an export
target of $5.89 billion during 2021-22.
TRADE CHRONICLE - Sep - Oct - 2021 - Page # 16
TRADE CHRONICLE
Cement Industry
Local and export dispatches during
September 21 remain depressed YoY
basis as stated in data released by
All Pakistan Cement Manufacturers
Association (APCMA) on October
05. Domestic transmissions stood at
4.018Mt and export 0.572Mt compared
to 4.095Mt and 1.131Mt in September
2020, respectively. This defines a
reduction of 1.88 per cent and 49.45
per cent on local and overseas markets
YoY basis. At the same time, total
cement dispatches declined by 12.17
percent to 4.589Mt from 5.225Mt
during this period.
A representative of APCMA expressed
concerns about the slide in demand.
But, was pretty hopeful that the cement
industry would regain its growth
momentum in the coming months,
mainly due to pro-government policies
related to the construction sector.
During September 2021, North-based
cement mills dispatched 3.451Mt
cement in domestic markets, showing
a decline of 2.04 per cent over 3.523Mt
dispatches in September 2020. Southbased
mills
p o s t e d
567,445t
cement in local
markets during September 2021, which
was slightly less than the dispatches of
571,639t during September 2020.
Local and overseas cement dispatches
dropped during September 2021 in Pakistan
Fauji Cement earns
Rs3.35bn
Fauji Cement Company Ltd announced
financial results for the year ended
June 30, 2021 posting profit after tax
(PAT) at Rs3.35 billion, translating to
earnings per share (EPS) at Rs2.52.
The earnings replaced loss after tax at
Rs59.4m and loss per share at Rs0.04
incurred the previous year.
DGKC earns Rs3.7bn
D.G. Khan Cement Company Ltd
posted a profit-after-tax of Rs3.72
billion for the year ended June 30,
converting to earnings per share at
Rs8.49. It showed a turnaround from
the loss after tax of Rs2.16bn and loss
per share of Rs4.93 suffered the in
FY20.
The board recommended a final cash
dividend at Rs10 per share
Exports from North-based mills
massively declined by 61.63 per cent
as the quantities reduced from 287,287t
in September 2020 to 110,245t in
September 2021. Exports from the
South also decreased by 45.29 per
cent to 461,340t in September 2021
from 843,334t during the same month
last year.
Cumulative dispatches
During the first quarter of the current
fiscal year, July – Sept 2021, total
cement dispatches (domestic and
exports) were 12.825Mt that calculates
to 5.67 per cent lower than 13.596Mt
dispatched during the corresponding
period of last fiscal year. Further
analyses indicate that domestic uptake
of the commodity increased by 3.92
per cent to 11.279Mt from 10.853Mt
during July-September 2020. In
contrast, exports during the same
period declined by a massive 43.64 per
Cement manufacturers asked
to start new plants early
The Punjab government has asked the
cement manufacturers that the new “No
Objection Certificates” (NOCs) issued
for installation of the cement plants
in the province could be cancelled if
they failed to initiate the projects within
six months period from the date of
issuance.
The warning was issued by the Punjab
Industry, Commerce and Trade Minister
Mian Aslam Iqbal chairing a review
meeting of the NOCs issued for the
installation of new cement plants in the
province.
Further, the
government
asked the
c e m e n t
manufacturers
TRADE CHRONICLE - Sep - Oct - 2021 - Page # 17
cent 1.546Mt from 2.743Mt during July-
September 2020.
Manufacturing cost rises
APCMA said that coal FOB prices have
increased from $ 68t in September
2020 to over $210t during September
2021. Ocean freight from South Africa to
Karachi has also increased from $ 11t in
September 2020 to $ 30t in September
2021. Pak Rupee parity to US dollar has
increased from Rupees 165 per dollar
to over Rupee 171 per dollar during the
same period. He further added that the
power and energy rates are constantly
growing, and the transportation cost
has gone very high due to an increase
in petroleum prices, adding to the cost
of delivery to different destinations.
These price escalations have seriously
affected the cost of doing business in
local as well as international markets.
A Chronicle Report
to submit their timelines for the
execution of the projects within one
week as the said NOCs were issued
on the fast-track basis to increase
the investment and employment
opportunities in the province.
However, only a couple of cement
manufacturers started work on the
new NOCs granted by the government
to them. Majority of the cement
manufacturers again complained the
number of issues such as environment
issues faced by them even after getting
the NOCs from the government.
He said 10 NOCs have been issued
for setting up of new cement factories
to promote the construction sector and
increase the employment opportunities.
More NOCs will be issued after the
Cabinet approval, he said. It is pertinent
to note that new industries are being
setup up in the province due to the
government’s pro-industry policies.
TRADE CHRONICLE
D.G. Khan Cement
completes second phase
of 30MW CFPP
D.G. Khan
Cement Company
Limited (DGKC)
has informed
Pakistan Stock
Exchange (PSX)
that the company
has successfully
completed in the
second phase
installation and
commissioning of 30MW Captive Coal
Fired Power Plant (CFPP) with Air
Cooled Condenser (ACC) technology,
at Hub site, Distt. Lasbela Baluchistan.
The plant is based on a high
temperature and pressure reheats
thermal system, which will generally
improve overall efficiency of the captive
power plant. With the completion of
this phase, captive power generation of
this project has reached to 40MW
The increasing trend in coal prices
may hit Pakistan cement industry
Pakistan top cement manufacturers
termed the growing trend in coal prices
detrimental to the county cement
industry. Its negative impact may dent
the portability in the second quarter of
this year if remedial measures such as
an increase in prices of cement bags
and relief in other inputs costs are not
allowed/eased immediately.
The coal prices are hovering around
$170t this month compared to $75t in
July last year – reflecting a surge of 127
per cent in a year period. The cement
industry is already under burden due
to provinces’ increased limestone
royalty and high cement bag prices. In
addition, volatility in fuel prices and Pak
Rupees depreciation against the dollar
in last month.
Cherat Cement Co Kicked-off
Line-IV Greenfield project
Pakistan leading
cement producers
- Cherat Cement
Company Limited
(CHCC), during a
financial briefing on
Sept 13, updated
about its planned
Greenfield expansion (line 4) of nearly
10-11,000tpd at the cost of PKR 34bn
at D.I. Khan, Khyber Pakhtunkhwa
Province in Pakistan.
The completion of the project is
expected in three years.
The financing structure includes 70
per cent of the total cost will be debt
component and the remainder will be
equity. The company has availed PKR
5bn for this capacity addition under
the State Bank of Pakistan Long Term
Financing Facility (LTFF) for Plant &
Machinery (SBP’s LTFF). However,
it does not include the WHR plant;
In Cement Conference,
conducted by CEO, AKD
Securities Ltd, Muhammad
Farid Alam, Sept 15, the
Chief Financial Officer, Lucky Cement
Limited (LUCK) Atif Kaludi; CFO, Attock
Cement Pakistan Ltd Muhammad
Rehan; CFO, Gharibwal Cement Ltd,
Shamail Javed and CFO DG Khan
Cement Limited Inayatullah Niazi have
encompassed the present and future of
cement industry in Pakistan. They have
said the industry had entered another
expansion phase. The total installed
capacity of the cement industry in
Pakistan is stood at 69Mt, and 18Mt
of capacity is in the pipeline. This will
take total production capacity to 87Mt
by FY24.
In FY21, cement sales have grown by
20 per cent YoY to 57.4Mt. For FY22,
experts expect demand to grow by 10
per cent YoY. They estimated that
if demand continues to increase by
10 per cent each year, the industry
will reach 100 per cent capacity
utilization by FY26.
Lucky Cement
Lucky will incur CAPEX of PKR 23bn
for its upcoming cement expansion,
of which ~50 per cent is funded
through Temporary Economic Relief
TRADE CHRONICLE - Sep - Oct - 2021 - Page # 18
hence overall project cost may
be higher.
Export to Afghanistan
The management of CHCC has
pointed out that although exports from
Afghanistan had gone up by 34 per
cent last year and with the U.S. exit,
the administration believes exports will
remain buoyant this year. However,
sea-based exports may face some
trouble. The current cement export
price to Afghanistan is $ 36-40t.
Financial Results highlights
The company posted a profit after tax
of PKR 3.205 bn in FY21, against a
loss of PKR 1.893 bn last year. The
primary reason behind the turnaround
was robust sales (dispatches went up
by 21 per cent YoY to 5.773Mt with local
sales depicting a jump of 21 per cent
while exports rose by 19 per cent) and
improvement in retention prices. The
management of CHCC has a positive
outlook for local dispatches, expecting
a 10 per cent growth in FY22.
Financing (TERF) and Long Term
Financing Facility (LTFF) facilities. The
development is expected to commence
operations by Dec-2022, Atif Kaludi
added.
Attock Cement
Cement expansion of 4,250tpd is
expected to come online by Jan2024.
Similarly, a solar plant of 20MW is
expected to go online by Oct2021;
Muhammad Rehan replied to the
question.
Garibwal Cement
According to Shamail Javed, GWLC’s
announced expansion is subject to
board approval. If the board approves,
it will take two years to start commercial
production.
DG Khan Cement
The company is expected to start
construction of a project from next year.
The 10, 000 -14,000tpd is expected
to come online by FY25. The total
cost of the project is expected to be
US$250m and will be financed through
a combination of debt and equity, said
Inayatullah Niazi.
Courtesy - www.cement.org
TRADE CHRONICLE
An update on Kohat Cement
green field project
The Company top management has
updated about its upcoming 8-10k tpd
green field project. The management
informed that the total cost of project
would be Rs25bn, of which Rs10bn
will be financed through internally
generated equity while the rest Rs15bn
will be financed through debt.
The company has not availed the TERF
facility but is trying to avail LTFF for the
An update on Thatta Cement
on production capacity
Thatta Cement Company Ltd has
completed enhancement in production
capacity of clinker & cement at Makli,
District Thatta, in Sindh Province. The
Company shared this update with the
Pakistan Stock Exchange Limited about
important material information on Sept
03. The Company has completed inhouse
modifications and improvements
Lucky Cement Limited (psx: LUCK)
won the Environment Excellence
Award at the 18th Annual Environment
Excellence Awards 2021, organized by
The National Forum of Environment
and Health (NFEH).
The ceremony focused on Climate
Change and Eco System Restoration
which was held at a local hotel on
16 September 2021. Lucky Cement
received the award in recognition to
its commitment and efforts towards
environment conservation and
sustainable business operations.
The Annual Environment Excellence
Awards are the
benchmark for
environmental
standards in Pakistan.
Speaking of the
occasion, Mr. Amin
Ganny, Chief Operating Officer, Lucky
Cement Limited, said, “At Lucky
Cement, we are committed to make
efforts for environment conservation
and sustainable business practices.”
He further added “We are constantly
making efforts on the management and
rational use of natural resources, which
has helped us in reducing the carbon
expansion.
Lucky Cement Awarded Environment
Excellence Award 2021
The plant is expected to commence
COD in FY24.
Along with this, company is also working
on optimization of pyro process of line-
3 which will reduce fuel & power cost.
The total cost of project is Rs1.2bn and
will be financed through combination of
debt and equity. However, the company
has kept other projects including
cement grinding mill and coal fired
boilers on hold due to injection of equity
in the processes of the existing plant.
By the Grace of Allah Almighty, our
technical team has completed the trials
and testing process.
Due to previously mentioned
modifications and improvements, the
total per annum production capacity
of clinker and cement has now been
increased from 548,400 tons to 660,000
tons and from 575,820 tons to 693,000
tons, respectively, based on 300
working days per year, said Company
footprint and increased
operational efficiency.
We understand our
responsibility towards
the environment as an industry leader
and through various environment
conservation initiatives including
planned tree plantation drives and
water conservation methods, we are
committed to play our part”.
Sustainable development forms a
significant part in Lucky Cement’s
business strategies and is one of the
key factors that have led the company
towards progress and growth.
The National Forum for Environment &
Health was established in 1999 and is
a non-profit organization with the aim to
facilitate and promote
environmental,
healthcare and
educational awareness
amongst the masses.
The Company has a proven history and
track record of its strong commitment
for the improvement of society and the
communities in which it operates. The
primary focus of CSR initiatives of the
Company remains in the development
of the education sector, women
empowerment, health, environment
and local communities.
in the greenfield project.
Currently plant is running at 70%
capacity utilization.
Courtesy - AHCML Research
Secretary Muhammad Abid Khan in a
bourse filing.
Pakistan beholds a mixed
export trend 03MFY21-22
Pakistan’s Federal Bureau of Statistics
(FBS) has released cement and clinker
export data for the first quarter July-
Sept of the current fiscal year 2021-22.
A mixed trend was noticed as both value
and quantity of exports slide during this
period on a cumulative basis compared
with the equivalent months in FY20-21
but saw growth on a month on a month
on a basis.
Pakistan’s cement industry between
July and Sept 21 earned US$55.20m of
export revenue by dispatching 1.555Mt
of cement and clinker overseas,
compared to US$72.29m from 2.206Mt
of exports in the year-ago period. The
export figures represent a drastic fall
of 23.64 per cent in dollar terms and
29.51 per cent in terms of volumes YoY,
as reported by FBS. The same pattern
was also noticed in local currency
despite the depreciation of Pak currency
against the dollar during this period. The
export value decreased by 24.17 per
cent to PKR 9.13bn (US$55.20m) from
PKR12.05bn during this 03MFY21-
22. However, a definite positive trend
observed in Sept 2021 when export
revenues were rose to US$33.81m
and volume 1.02Mt from US$ 9.42m
and 235,203t1t respectively during this
reporting period.
TRADE CHRONICLE - Sep - Oct - 2021 - Page # 19
TRADE CHRONICLE
Tariq Glass Industries Limited has
registered record net sales of Rs.
19.103 billion against Rs. 13.587 billion
in the previous year showing a robust
growth of 40.60%. The profit after-tax
and EPS for the period under report
are Rs. 2,109 million and Rs. 15.31
as compared to corresponding figures
of last year of Rs. 762 million and Rs.
5.53 (Restated) respectively, according
to Company annual report 2021.
The Company top officials attribute
the lucrative to efficient
monitoring and development
of operating procedures,
implementation
of
effective marketing plans,
promotional schemes and
media campaigns to secure
volumes of float glass
and tableware produced.
Consequently, the Company
succeeded in increased the
consumption of its goods
through a demand-pull
strategy.
The annual report adds that
the Company ignited / Fred
the furnace of a new state of
the art plant for the production
of Float Glass (namely Float
Glass Plant Unit – II) with
a capacity of 500 Metric
Tons Per Day on April 19,
2021, and the commercial
production started on May
31, 2021. The Company’s
existing production facilities
were also fully functional
during the financial year
under report. Production
activities
w e r e
effectively
planned
and adjusted to cater to the market
demand in terms of quantity and quality.
Tariq Glass Industries has registered a robust
growth of 40.60% in sales during 2021
VISION STATEMENT
“To be a premier glass
manufacturing organization of
International standards and repute,
offering innovative value-added
products, tailored respectively to the
customer’s needs and satisfaction.
Optimizing the shareholder’s value
through meeting their expectations,
making Tariq Glass Industries
Limited an “Investor Preferred
Institution” is one of our prime
policies. We are a “glassware
supermarket” by catering for all
household and industrial needs of
the customers under one roof”.
Cash dividend
The Board of Directors has
recommended the final cash dividend
for the year ended June 30, 2021, at the
rate of Rs. 12/- per share (i.e., 120%) in
addition to 25% interim bonus shares
already issued. The recommendation
of 25% interim bonus shares in
proportion of 25 shares for every 100
shares held out of free reserves for the
half-year ended December 31, 2020,
was made by the Board of Directors
in their meeting held on February 17,
2021, and subsequently approved by
the members of the Company in the
extraordinary general meeting held on
April 06, 2021.
Future Outlook:
Alhamdulillah, the Covid-19 pandemic
has been effectively controlled in
Pakistan, and with every passing day,
the business climate is improving. To
minimize the impact of the Covid-19
pandemic on the economy, the
Government has taken measures that
hopefully will trigger the economic
activities. The Board of Directors
believes that there is a strong need
for infrastructure development and
construction in Pakistan. The real
estate packages, amnesty to invest in
construction and the lower borrowing
rates will stimulate the construction
activities. They will result in higher
demand for glass products in the future.
With the induction of added production
from the Float Glass Plant Unit – 2, a
MISSION STATEMENT
“To be a world-class and leading
company continuously providing
quality glass tableware, containers
and float by utilizing the best blend
of state of the art technologies,
highly professional staff, excellent
business processes and synergistic
organizational culture”.
wide range of flat glass products will be
available not only in the shape of clear
and coloured float glass (i.e., green,
blue, bronze), mirror and reflective
coated flat glass but also the float glass
of varied thicknesses in the range of 2
to 12 mm will be maintained in stocks
for sales.
The management has undertaken
necessary measures to improve quality
further, introduce valueadded
products, and a more
focused approach towards
customer satisfaction. In
this regard, the Company
launched deckle printed
glass dinner sets. Our focus
will also be on capturing
the export potential both for
tableware and float glass
products. The availability of
an effective sales mix will
ultimately result in higher
sales and further improved
profitability of the Company.
The Company’s existing
furnaces of one of the
Tableware Plant and the
Float Glass Plant (Unit-
1) have completed their
useful campaign life. Still,
the production performance
of both these furnaces is
satisfactory. However, these
furnaces can be closed for
significant repair in the next
financial year, i.e., FY2021-
2022.
A Chronicle Report
TRADE CHRONICLE - Sep - Oct - 2021 - Page # 20
TRADE CHRONICLE
People & Events
Idrees elected KCCI
President
The Managing Committee of Karachi
Chamber of Commerce and Industry
(KCCI), in its meeting held recently,
unanimously elected Muhammad
Idrees as President KCCI for 2021-22
while Abdul Rehman Naqi was elected
as Senior Vice President KCCI and
Qazi Zahid Hussain as Vice President.
Muhammad
Idrees, who
has been
associated
with BMG
since more
than two
decades,
had already
serviced as Vice President KCCI in
2013-14.
He served as President Karachi
Electronic Dealers Association (KEDA)
from 2009 to 2015, besides being
member of a Committee of Ministry of
Maritime Affairs and Sindh IT Board.
Chairman BMG and former President
Salman Aslam elected KATI
President unopposed
New office-bearers of Korangi
Association of Trade and Industry
(KATI) have been elected unopposed.
According to details,
renowned businessman
Muhammad Salman Aslam
has been elected for the
presidency of 2021-22
while Maheen Salman has
been elected as senior
vice-president and Syed
Farrukh Ali Qandhari as vicepresident.
On the occasion,
SM Muneer Patronin-Chief
KATI,
congratulated
Salman Aslam
on becoming the
president of KATI
and said that the
previous presidents
Syed Farrukh
Ali Qandhari
of the past had served the business
community and Salman Aslam is the
Muhammad
Salman Aslam
KCCI, Zubair Motiwala, Vice Chairmen
BMG & former presidents KCCI Tahir
Khaliq, Haroon Farooki, Anjum Nisar,
Jawed Bilwani and General Secretary
BMG AQ Khalil congratulated the
newly elected office-bearers and hoped
that they will strive hard to further
improve the functioning of KCCI and
work diligently to resolve the issues
being faced by business and industrial
community.
It is pertinent
to mention
here that the
Businessmen
Group (BMG)
has been
constantly
winning
K C C I ’ s
election since
past 24 years. The newly elected officebearers
vowed to dedicatedly discharge
their responsibilities to the expectations
of KCCI members and the rest of the
business and industrial community.
They assured that no stone will be left
unturned to achieve various objectives
in this regard.
best choice to further enhanced the
efforts and services rendered for the
betterment of the national economy.
He said that Saleem-uz-Zaman also
performed well in KATI and raised
the standard. S M Muneer hoped that
Salman Aslam, Maheen
Salman and Farrukh
Qandhari would further
enhance the performance of
KATI.
Maheen Salman
Newly-elected president of
KATI Salman Aslam said
that he was grateful to the
patron-in-chief S
M Muneer and
all the members
who expressed full
confidence. He said
that after assuming
the office of KATI
as president, he will
serve the business
community as per
the vision and guidance of S M Muneer
and would take all possible steps for the
betterment of Korangi Industrial Area.
Jamal Mir elected PAA
Chairman
In the annual
Elections for 2021-
2022 of Pakistan
Advertising
Association (PAA)
Ahmed Jamal
Mir of Prestige
Communications
was elected
unopposed as
Chairman of the association.
Numan Nabi Ahmed of The Brand
Partnership was elected Senior Vice
Chairman along with Muhammad
Zeeshan Khan of TNI Communications
as Vice Chairman.
Mahmood Parekh of MCM, Usman Atiq
Butt of Interlink and Rizwan Ashraf of
Velocity were elected Chairman of
PAA Zones A, B and C. Javed Qadeer
of Marksman was elected secretary
Finance.
Mr. Numan
Nabi Ahmed
Mr. Ahmed
Jamal Mir
Mr. Muhammad
Zeeshan Khan
The newly elected Chairman, Ahmed
Jamal Mir thanked all members for
reposing their confidence in him. He
assured them that the new team with
the support of the PAA members
will work towards creating a positive
change and growth in the industry.
Especially in the current situation due
to the pandemic, he assured them that
the PAA will play its role to the fullest
to overcome these challenges and
enhance the image of the Advertising
industry and the country.
Other members elected to the
Executive Committee include: Anis
Thaver (G H Thaver), Imran Irshad
(M&C Saatchi), Fahd Khan (Manhattan
Communicati-ons), Mian Mobeen
Shaffat (Oak Media), Ahmed Hussain
Kapadia (Synergy), Sara Fatima
Koraishy and Faiza Nadeem (Midas
Communications).
TRADE CHRONICLE - Sep - Oct - 2021 - Page # 21
TRADE CHRONICLE
LCCI electees assume
offices
The newly elected office-bearers of
the Lahore Chambers of Commerce
& Industry (LCCI) are President Mian
Nauman Kabir, Senior Vice President
Rehman Aziz Chan and Vice President
Haris Attiq.
They in a statement said that exports
were like a lifeline for the national
economy and LCCI would present a
roadmap to the government to enhance
exports of the country.
The newly elected-office bearers said
the government should take urgent
measures to control rupee devaluation,
which was creating severe challenges
for the economy. They said cheap
energy and raw materials were a must
for the businesses.
Haroon Shamsi elected
President of FBATI
Renowned industrialist
Muhammad Haroon
Shamsi has elected
unopposed President
of the Federal B Area
Association of Trade
and Industry for the
period 2021 to 2022. At the 32nd
Annual General Meeting of the Federal
B Area Association of Trade and
Industry, Aqeel Zawar has been elected
Senior Vice President and Khurram
Saeed Khan has been elected Vice
President.
Maqsood Ismail elected
LCCI president
Maqsood Ismail,
Suleman Chawla
and Ahmed Ashraf
have been elected
unopposed as
President, Senior
Vice President
and Vice President respectively of
Lasbela Chamber of Commerce &
Industry (LCCI) fore the year 2021-22.
IAP elects office-bearers
Azfar Arshad, Chief
Operating Officer,
Jubilee General
Insurance, Babar
Mahmood Mirza,
Chief Executive
officer, Atlas
Insurance and Ali Haider, Director
Business Distribution, Adamjee
Life Assurance, have been elected
Chairman, Senior Vice Chairman and
Vice Chairman respectively, of the
Insurance Association of Pakistan (IAP)
for the year 2021-22.
In addition the Executive Committee
shall comprise the following members:
Faisal Khan, Chief Risk Officer, IGI
General Insurance, Syed Kazim
Hasan, Deputy Managing Director
to TPL Insurance, Ihtsham-ul—Haq
Qureshi, Chairman, Asia Insurance, M.
Faisal Siddiqui, Chief Executive Officer,
Sindh Insurance, Altaf Q. Gokal,
Deputy Managing Director & CFO,
EFU GeneraI Insurance, Mohammed
Ali Ahmed, Deputy Managing Director,
EFU Life Assurance, Farhan Akhtar
Faridi, Group Head, Retail Distribution,
Jubilee Life Insurance, Mian Kashif
Rashid, Executive Director United
Insurance.
The election results were announced at
the 60th Annual General Meeting of the
Association.
Saqib Naseem elected
PYMA Chairman
Saqib Naseem was elected unopposed
central Chairman of Pakistan Yarn
Merchants Association (PYMA) while
Javed Asghar elected senior vice
chairman for the year 2021-22.
According to PYMA announcement,
Muhammad Junaid Teli was elected as
vice chairman for Sindh and Balochistan
region and Awais Nisar, vice chairman
for Punjab and KPK region.
PSMA elects new Chairman
Chaudhry Zaka
Ashraf has been
elected as the
central chairman
of Pakistan Sugar
Mills Association
(PSMA) and
Iskander M.
Khan, as vice
chairman for the
year 2021-22.
The announcement of the election
results was made in the annual
general meeting of PSMA. The event
was attended by Ch. Muhammad
Aslam, chairman, PSMA Punjab
Zone, Faisal Mukhtar and Muhammad
Rafique, executive members and other
prominent sugar mill owners.
AP MSPIDA elects officebearers
Zahid Manzoor, Muhammad Arif
Siddiqui and Shahzad Sarfraz have
been elected as Chairman, Senior
Vice Chairman and Vice Chairman of
All Pakistan Motorcycle Spare Parts
Importers & Dealers Association
(AP MSPIDA) for year 2021-2022
respectively.
Earlier 6 new members were elected
unopposed as member’s of Executive
Committee.
Ellahi Buksh Anwer
Elected BQATI President
unopposed
Ellahi Buksh Anwer has been elected
President Bin Qasim Association
(BQATI) for the years 2021-22.
The Managing Committee also elected
Shakeel Ashfaq and Hussain Agha to
the positions of Sr Vice President and
Vice President, respectively.
Abdul Rasheed Janmohammad, Amin
Dawood, Homan Yakoob along with
Ellahi Buksh Anwer, and Hussain Agha
were also elected as Member Managing
Committee for the term 2021-2023.
TRADE CHRONICLE - Sep - Oct - 2021 - Page # 22
TRADE CHRONICLE
CAP announces election
results
Constructors Association of Pakistan
(CAP) on Thursday elected its new
office bearers for the year 2021-22.
According to a statement, Engr Kamal
Nasir Khan was elected unopposed as
Chairman CAP, while Engr MS Asad
Mukhtar as Senior Vice Chairman.
Moreover, Chaudhry Ahmad Habib was
elected unopposed as Vice Chairman
(Punjab), Syed Raza Ali Abidi Vice
Chairman (Sindh), Pir Zarif Shah Vice
Chairman (Khyber Pakhtunkhwa), and
Malik Muhammad Kaleem Ullah was
elected Vice Chairman (Islamabad).
Others who were elected unopposed as
members of the executive committee
are: Engr Abdul Karim Khadim,
Marghoob Shakir Izhar, Naeemudin A
Siddiqui, Engr Muhammad Imran Khan
Cheema, Syed Yasin Shah, Sheikh
Saeedullah from corporate class.
As per the statement, Zahid ul Hassan
Qureshi, Khawaja Shoaib Mohi-ud-din,
Muhammad Satwat Khan, Chaudhry
Khaleeq Ahmad Awan, and Shaheryar
Khan were elected as executive
committee members from the associate
class.
PRGMEA elects Sheikh
Luqman as North Zone chief
The Pakistan Readymade Garments
Manufacturers & Exporters Association
(PRGMEA) has elected Luqman Sheikh
as North Zone chairman for the year
2021-22. Those who were elected as
ZMC (NZ) members included Waseem
Akhtar Khan, Mubashar Naseer Butt,
Sajid Saleem Minhas, Ansar Aziz, Abid
Khawaja and Umar-uz-Zaman.
The newlyelected
zonal
chairman
S h e i k h
Luqman Amin
drew attention
of the garment exporters to meet the
challenges in international market
so that momentum of exports could
not only be maintained but also new
opportunities be fully exploited. He
encouraged the exporters not to worry
about threats of globalization, rather
the hidden benefits should be explored
and utilized.
Hamad Kehar elected
president PSX
Stockbrokers body
Hamad Nazir Kehar
has been elected
as President of
PSX Stockbrokers
Association for the year
2021-22.
Likewise, Noman
Abdul Majeed Adam Vice-President,
Muhammad Adil General Secretary,
Abdus Samad Salim Joint Secretary,
Kazim Sultan Dattoo Treasurer while
Basharat Ullah Khan, Fawad Yusuf,
Ghulam Mujtaba Sakarwala, Humayun
Javed and Muhammad Zahid Ali Habib
elected as Committee Members.
Adil Farhat named CEO
of P&G Pakistan
P&G Pakistan
announced
appointment of Adil
Farhat as its new
Chief Executive
Officer effective
October 01.
Most recently, Adil was Managing
Director of P&G West Africa, based
out of Lagos. Prior to that, he has led
businesses across several categories
and channels based out of Geneva,
Jeddah & Dubai offices.
Speaking at the occasion, Adil said,
“P&G Pakistan has grown from strength
to strength in the last few decades to
serve our customers and consumers.
Today, it is one of the leading FMCG
companies in Pakistan.
Miraj Gul made NTC MD
The federal
government has
appointed Miraj
Gul as Managing
Director, National
Telecommunication
Corporation, under
the Ministry of
Information Technology (IT) and
Telecommunication. According to the
notification issued by the Ministry
of Information Technology and
Telecommunication, Gul was appointed
on contract basis for a period of three
years. Gul was serving as acting MD
NTC for the last couple of months.
APTMA elections: Gohar
Ejaz Group clinches all
seats
Gohar Ejaz led
group has secured
all positions of All
Pakistan Textile
Mills Association
(APTMA) in
elections for
the year 2021-
22 concluded
recently. According
to election results announced
Mohammad Raza Baqir, Secretary
General APTMA, Abdul Rahim Nasir
has been elected as Chairman APTMA
for the year 2021-22 while Jamil
Qassim and Atta Shafi Tanvir Sheikh
were elected as Senior Vice Chairman
and Vice Chairman respectively.
By sweeping all seats in Central and
Zonal elections of APTMA, Gohar Ejaz
Group has registered 12th consecutive
victory which is unprecedented in the
history of APTMA or any other Trade
Organization in the country.
Tariq Ullah Sufi elected
PVMA chief unopposed
Tariq Ullah
Sufi has been
elected Chairman
P a k i s t a n
Vanaspati
Manufacturers
Association
(PVMA) for the
year 2021-22.
Likewise, Sheikh Amjed Rasheed and
Sheikh Kashif Razzaq elected unopposed
as Sr Vice and Vice Chairman
respectively.
Other members of Executive Committee
elected for the term 2021-23 are Atif
Ikram Sheikh, Mian M Ashfaq Malik,
Hassan Munawar, M Muneeb Monnoo,
Anjum Rehmat, Haseeb Ur Rehman,
Nasir Saleem, Sh Amjad Rasheed,
Ehtisham Javaid and Raja Abubakar
Farooq.
The edible oil sector of Pakistan,
comprising 137 units, manufactures 4.5
million M Tons of banaspati and cooking
oil to meet annual national demand, the
sector also contributes handsomely in
national exchequer in terms of duty and
taxes, hence placed in top five revenue
spinners of Pakistan.
TRADE CHRONICLE - Sep - Oct - 2021 - Page # 23
TRADE CHRONICLE
Shahzad Paracha elected
PSMA chief
Shahzad Mushtaq Paracha has been
elected Chairman Pakistan Soap
Manufacturers Association (PSMA) for
the year 2021-22.
The newly-elected unopposed officebearers
are Shahzad Mushtaq Paracha
of Paracha Soap & Chemical Industries
(Pvt) Limited, Faisalabad as Chairman,
M Shoaib Sethi of Khatoon Industries
(Pvt) Limited, Gujranwala as Senior
Vice Chairman & Tariq Zakaria of A K
Industries, Karachi as Vice Chairman.
Syed Anwer Suhail Razvi, Sh
Muhammad Ilyas, Sheikh Iftikhar Anwer
Sethi, Shahzad Mushtaq Paracha,
M Ali Zia and Zafar Mahmood are six
newly-elected unopposed Members of
Managing Committee.
Mohsin Sheikhani elected
ABAD chief unopposed
Pakistan’s seasoned
builder and developer
and Patron-in-Chief of
Allied Panel Mohsin
Sheikhani was elected
Chairman of the
Association of Builders and Developers
of Pakistan (ABAD) unanimously for
the term of 2021-2022 recently.
Mohsin Sheikhani has served ABAD
as Chairman four times earlier. While
Hanif Memon, Altaf Kantawala and
Sufian Adhia were elected as Senior
Vice Chairman, Vice Chairman and
Chairman Southern Region of the
organization respectively. Eng. Akber
Shaikh was elected as Chairman
Northern Region and Qamar Zaman
was elected as Vice Chairman Sub-
Region Hyderabad.
PCJCCI office bearers
Pakistan China Joint Chamber of
Commerce and Industry (PCJCCI) has
elected Chinese business leader Wang
Zihai as its president, a statement said
recently. Moreover, Ehsan Choudhry
and Muhammad Sarfraz Butt were
elected as Senior Vice President and
Vice President respectively, it added.
The announcement was made by the
Election Commissioner at 7th Annual
General Meeting of the PCJCCI held
with the outgoing president SM Naveed
in chair at PCJCCI office.
President Dr Arif Alvi inaugurated
the Pakistan Pavilion at the Dubai
Expo 2020. First lady Samina Alvi
and Adviser to the Prime Minister on
Commerce Abdul Razak Dawood were
Chairman Businessmen Group Zubair
Motiwala and President Karachi
Chamber of Commerce & Industry
Muhammad Idrees presenting crest
to Additional Inspector General Imran
Yaqub Minhas during his visit to KCCI.
Vice Chairman BMG Jawed Bilwani,
KATI President Saleem-uz-Zaman
presenting a shield to Imran Maniar,
MD Sui Southern Gas Company. Zaki
Sharif, Nighat Awan, Salman Aslam,
Patron-in-Chief of KATI SM Muneer
presenting shield to Secretary Industry
and Commerce, Sindh Amir Khurshid,
President KATI Saleem-uz-Zaman,
also present on the occasion.
The president visited different stalls
at the pavilion and was briefed about
Pakistani products.
General Secretary BMG AQ Khalil,
President KCCI Muhammad Idrees,
Senior Vice President Abdul Rehman
Naqi Vice President Qazi Zahid
Hussain, Former Presidents Younus
Muhammad Bashir and Shamim Ahmed
Firpo are also seen in the picture.
Ehteshamuddin, Danish Khan, Syed
Tariq Hussain and others are also
present.
Zubair Chhaya, Zaki Sharif, Nighat
Awan, DC Korangi Saleemullah Odho,
Gulzar Feroz, Danish Khan, Sheikh
Umar Rehan were are also present.
TRADE CHRONICLE - Sep - Oct - 2021 - Page # 24
TRADE CHRONICLE
Automobile News
Car loans hit record high
of Rs326bln in August
Auto financing reached an all-time
high of Rs326 billion in August 2021,
depicting a 46.8 percent year-on-year
jump, mostly owing to low interest
rates, a brokerage said quoting central
bank data recently.
Car loans increased 3.8 percent
month-on-month in August, while they
stood at Rs314 billion in July, said Arif
Hbib Limited in a report. “The growth
in auto financing during Q3FY21 is
mainly attributed to low interest rate
environment, increasing prices of
passenger cars, which affected the
PSMC posts Rs1.19bln
profit in 1H
Pak Suzuki Motor Co Ltd (PSMC) has
reported net profit of Rs1.19 billion for
the half-year ended June 30, 2021,
owing to an increase in its sales.
The company had posted a loss of
Rs2.46 billion the previous year. The
company also skipped a dividend for
this period, according to the statement
to Pakistan Stock Exchange.
Earnings per share came in at Rs14.54,
compared with losses of Rs29.92 last
year. The company said its revenue
for the year rose to Rs66.11 billion,
compared with Rs27.47 billion a year
earlier.
For the quarter ended June
30, the company announced
profits of Rs418.96 million,
compared with losses of
Rs1.52 billion last year.
Earnings per share for the
quarter came at Rs5.09
compared with losses per
consumers’ capacity to buy on cash,
and new entrants in the automobile
market that provided wider options to
the consumers,” said the State Bank of
Pakistan’s (SBP) third quarterly report
on Pakistan’s economy for FY2021.
This was consistent with an across
the board increase in the sales of
auto assemblers during the period
under review. In particular, cars in the
category of below 1000cc and jeeps
were in higher demand, it added.
Analysts expect the auto financing to
face some slowdown in the wake of
the high cost of borrowing. The SBP
hiked interest rates by 25 basis points
to 7.25 percent on Monday to moderate
demand growth.
The Monetary Policy Committee (MPC)
noted that accommodative financial
conditions had provided significant
support to the growth recovery since the
start of FY2021. Following historic cuts
in the policy rate and the introduction of
SBP Covid-related support packages,
share of Rs18.49 last year.
A report of Arif Habib Limited said the
earnings of the company were below
than market expectations.
It reported net sales of the company
increased by 141 percent year-on-year
to Rs66.1 billion during 1HCY21 due
to lower financing rates and revival
of economic activity which aided
volumetric growth of 137 percent YoY
(50,096 vs. 21,116 units in 1HCY20).
During 2QCY21, net sales of the
company increased by 208 percent
year on year to settle at Rs30 billion
owing to low base effect and volumetric
jump of 193 percent year on year to
22,019 units.
private sector credit grew by more
than 11 percent during FY2021, on the
back of consumer loans (mainly auto
finance and personal loans) followed
by a broad-based expansion in credit
for fixed investment and finally working
capital loans.
“The MPC felt that some macro
prudential tightening of consumer
finance may also be appropriate to
moderate demand growth as part of
the move toward gradually normalizing
monetary conditions,” it said.
Bank lending to consumers surged
near 34 percent year-on-year in August.
Consumer loans such as home, car
and personal, and credit cards rose
to Rs742 billion in August from Rs550
billion a year ago.
Personal loans stood at Rs239 billion in
August, compared with Rs197 billion in
the same month of the previous fiscal
year. Housing finance also jumped 39.8
percent to Rs112 billion in August.
Millat Tractors profit
drops 349pc
Millat Tractors Limited has reported
a 349 percent fall in its full-year net
profit, owing to an increase in the net
revenue. In a statement to the PSX, the
company reported a net profit of Rs9
billion for the year ended June 30, up
from Rs2 billion the previous year.
The company also announced a final
cash dividend of Rs50 a share, which
was an addition to the already paid
interim dividend of Rs50 a share. It also
announced 20 percent bonus share
that was one bonus share for every five
shares. It was in addition to the interim
bonus shares already issued at 12.5
percent. Earnings per share came in at
Rs103.12, compared with Rs38.36 last
year.
The company said its revenue for the
year rose to Rs43.95 billion, compared
with Rs22.94 billion a year earlier. The
company said its other income for
the period also rose to Rs667 million,
compared with Rs253 million the
previous year.
TRADE CHRONICLE - Sep - Oct - 2021 - Page # 25
TRADE CHRONICLE
Toyota announces over $100 Million investment in
Pakistan for local production of Hybrid Electric Vehicle
Toyota will invest over US$100 million
for the local production of Hybrid
Electric Vehicle (HEV) in Pakistan.
The announced investment shall go
towards localization of components,
plant expansion and production
preparation for the first Hybrid Electric
Vehicle to be manufactured at Indus
Motor Company Limited (IMC) plant
located at Port Qasim, Karachi.
A delegation from Indus Motor
Company led by the Vice Chairman, Mr.
Shinji Yanagi and Chief Executive, Mr.
Ali Asghar Jamali, met with the Prime
Minister today at the Prime Minister’s
Office to announce the new investment.
The meeting was also participated
by Mr. Yoichi Miyazaki, CEO for
Toyota Asia, via video message.
Members of the Cabinet including
the Federal Minister for Industries,
Mr. Khusro Bakhtiar, Federal
Minister for Energy, Mr. Hammad
Azhar and Finance Minister, Mr.
Shaukat Tareen also attended
the meeting. The Ambassador of
Japan to Pakistan, H.E. Mr. Kuninori
Matsuda, also graced the occasion.
Mr. Yoichi Miyazaki, CEO for Toyota
Asia said, “We are excited to announce
this new investment for bringing
Toyota’s latest generation Hybrid
Electric Technology to our customers
in Pakistan. Today’s investment
announcement is testament to our
strong commitment to Pakistan and
trust in the Government. We appreciate
the Government’s policies to encourage
low carbon mobility solutions.
Prime Minister Imran Khan whilst
appreciating Toyota’s investment
PM’s Advisor for Commerce and Investment visits
Careem headquarters to discuss potential of technology
The Advisor for Commerce and
Investment to the Prime Minister Imran
Khan, Abdul Razak Dawood, visited
Careem’s headquarters, Dubai in his
visit to the Expo 2020. The Advisor met
senior leadership of Careem including:
Mudassir Sheikha, CEO and Cofounder
of Careem, Colin Judd, Senior
Director Corporate Affairs and Fatima
Akhtar, Director Government Relations
Pakistan.
The meeting consisted of having an
in-depth discussion on how Pakistan
has evolved as an investment hub
over the last few years. The team at
Careem also enlightened the
Advisor with their journey of
creating a safe, trusted and
reliable mobility ecosystem
in Pakistan and the Middle
East. They also shunned
light on how Careem has
played a significant role in
fostering and nurturing the
tech startups in Pakistan as
well as positioned itself as the
fastest growing brand in the
region by enhancing its value
proposition by adding new
verticals and becoming a Super App.
Abdul Razak Dawood, Advisor for
Commerce and Investment to the Prime
Minister stated: “Careem is a great
example of how Pakistan is a country
ripe with potential in so many different
sectors, technology being one of them.
It is great to see the impact they have
created in Pakistan over years.
Mudassir Sheikha, CEO and Cofounder,
Careem also expressed his
gratification by saying: “I am absolutely
delighted that the Advisor to Prime
Minister has come to our office today
announcement said: “Toyota/Japan has
remained the most committed partner
for Pakistan even in the most testing
times. We value our relationship and
Toyota’s trust in Pakistan’s economy
and welcome this new investment for
Environment Friendly Hybrid Electric
Vehicles. Indus Motor Company is
a wonderful example of how global
companies can grow successfully here
in Pakistan”.
The Ambassador of Japan to Pakistan,
H.E. Mr. Kuninori Matsuda, whilst
welcoming the decision said, “The
Embassy of Japan is confident that
the new investment decision will take
the economic ties between Japan and
Pakistan to the next level.
Mr. Ali Asghar Jamali, Chief
Executive, Indus Motor Company
Ltd. Said, “Today’s investment
announcement represents IMC’s
strong commitment towards our
community as we contribute
tangibly towards making Pakistan
less vulnerable to Climate Change.
A Chronicle Report
and assured us of the commitment of
the Government of Pakistan to facilitate
technology investment and create jobs
in this sector. I believe that at the heart
of all this growth is the recognition that
technology is a force for good and can
be integral in simplifying the lives of
people across the globe.”
In the past, Careem also invited
various notable personalities from both
federal and provincial governments to
its headquarters to discuss potential
opportunities as well as enlightening
them on Careem’s journey and
Initiatives. The list includes: Zulfikar
Bukhari, Special Assistant for Overseas
Pakistanis and Human Resource
Development and Taimur Khan Jhagra,
Provincial Minister of Khyber
Pakhtunkhwa for Finance.
Transforming into a Super
App; Careem offers multiple
opportunities as it expands
its services from mobility
of people (ride-hailing) to
adding mobility of things as
well as mobility of money
including food, daily essential
deliveries, peer to peer credit
transfer and mobile top-ups.
A Chronicle Report
TRADE CHRONICLE - Sep - Oct - 2021 - Page # 26
TRADE CHRONICLE
Telecommunication News
PTCL Group joins hands
with NOWPDP for Justuju
Internship Program
Pakistan Telecommunication Company
Limited (PTCL) and Ufone has signed
an MoU to launch 2nd batch of Justuju
Internship Program in collaboration
with Network of Organizations Working
with Persons with Disabilities Pakistan
(NOWPDP).
Justuju includes a structured
professional development plan for
PWDs, focusing on training and
enabling them to be part of the country’s
mainstream socio-economic system.
PTCL Group will induct 20 interns,
as identified, and recommended by
NOWPDP for internship at PTCL and
Ufone offices in Islamabad, Lahore and
Karachi.
Jazz wins the Best
Taxpaying Company Award
Ufone awarded 4G
spectrum license
Pakistani Telecom Company, Ufone
has been awarded Next Generation
Mobile Services (NGMS) spectrum by
Pakistan Telecommunication Authority
(PTA) as
a result of
recently held
spectrum
auction. The
company won
the spectrum
in a bid to
enhance 4G
customer
experience
across the
country.
Federal
Minister for IT & Telecom, Syed Aminul
Haq along with Secretary IT & Telecom,
Dr. Muhammad Sohail Rajput,
Chairman PTA, Major General Amir
Azeem Bajwa (Retd.) HI (M), senior
officials from the ministry and PTCL
Group attended the event.
Telenor Pakistan recognises
largest taxpayer
DG Licensing PTA, Brig. Amer Shahzad
(Retd.) and President and Group CEO,
PTCL & Ufone, Hatem Bamatraf signed
the contract.
Sharing his thoughts on spectrum
acquisition, President and Group CEO,
PTCL & Ufone, Hatem Bamatraf said:
“It is a historic day for Ufone, as we
have acquired additional 4G Spectrum
in order to fully optimize our mobile
data services. This will enable us to
further enhance our users’ experience,
expand the existing network to serve
the unserved areas.
Jazz becomes most
preferred employer
Jazz has been bestowed the ‘Best
Taxpaying Company’ award under
the large taxpayers category (largest
withholding agent nationwide) at the
inaugural Taxpayer Recognition Awards
organized by the Rawalpindi Chambers
of Commerce and Industry (RCCI) in
Telenor Pakistan has been recognised
as one of the largest taxpayers at the
first Taxpayers Recognition Award
Ceremony in the esteemed presence of
the Honourable President of Pakistan,
Dr Arif Alvi, as Chief Guest. The award
ceremony was organised by the
Rawalpindi Chamber of Commerce and
Industries (RCCI) in collaboration with
the Federal Board of Revenue (FBR).
It was held at the President House in
Islamabad.
Jazz, Pakistan’s number one 4G
operator and the largest internet and
broadband service provider, has
been awarded the ‘Most Preferred
collaboration with the Federal Board
of Revenue (FBR). The ceremony
took place at the President House,
where the president of Pakistan Dr. Arif
Alvi handed over the award to Jazz’s
Chief Regulatory and Corporate Affairs
Officer Syed Fakhar Ahmed.
Mr Raza Zulfiqar, VP of Public and
Regulatory Affairs at Telenor Pakistan,
received the award. Telenor Pakistan
remains committed to empowering its
50 million-strong subscriber base and
contributing to the country’s socioeconomic
development.
Employer in the Telecom Industry’
at the Best Place to Work Awards
Gala 2021 (BPTW 2021) hosted by
Pakistan Society of Human Resources
Management (PSHRM) and Engage
Consulting. This award was based
on the BPTW 2021 survey, which
was taken by over 40,000 employees
across Pakistan.
TRADE CHRONICLE - Sep - Oct - 2021 - Page # 27
TRADE CHRONICLE
Number of 3G and 4G users in
Pakistan reaches 103.12m: PTA
The number of 3G and 4G users in
Pakistan reached 103.12 million by
end-August 2021 compared to 101.59
million by the end-July 2021, registering
an increase of 1.53 million, revealed
Pakistan Telecommunication Authority
(PTA) data.
The number of cellular subscribers
in Pakistan increased by 0.67 million
to 185.57 million by end-August 2021
compared to 184.90 million by the end
of July. Teledensity for cellular mobile
increased from 84.41 percent by the
end of July 2021 to 84.67 percent
by end-August. The total teledensity
increased from 86.55 percent by the
end of July 2021 to 86.81 percent by
Pakistan Telecom Authority (PTA)
Authorization holder Inovi Telecom
has started exporting smartphones to
other countries. The first consignment
of 5500 units of 4G smartphones
carrying “Manufactured in Pakistan”
tag has been exported to UAE.
end-August.
Manufactured in Pakistan: Inovi
Telecom starts exporting smartphones
Zong and Meezan Bank Join Hands
to Enrich Customer Experience
Pakistan’s cellular and digital services
leader, Zong 4G, has partnered with
the country’s Best Bank, Meezan Bank
to further build upon an interconnect
relationship and deliver exceptional
quality service to mutual customers
of both the organizations. The
partnership will enable Meezan
Bank customers, who have Zong
prepaid or postpaid connections,
to recharge their mobile balance
and pay their postpaid bills more
conveniently via the bank’s
Alternate Distribution Channels.
With an aim to offer convenience,
the mutual customers can also
subscribe to over twenty-five
attractive bundles offered by
Zong through Meezan Bank’s
highest rated Mobile Banking App,
besides being able to buy Zong
top-ups and pay postpaid bills.
The customers can click on the
Bill and Top up option and select
their Zong prepaid and postpaid
Monthly Next Generation
Mobile Service (NGMS)
penetration stood at 47.05 percent by
end-August 2021 compared to 46.38
percent in July 2021.
Jazz’s total count for 3G users stood at
7.438 million by end-August compared
to 7.598 million by the end of July 2021,
registering a decrease of 0.16 million.
Jazz 4G user numbers jumped from
31.745 million by the end of July 2021
to 32.767 million by end-August. Zong
3G subscribers decreased from 4.204
million by the end of July to 4.046 million
by end-August, while the number of 4G
users jumped from 23.581 million by
the end of July 24.099 million by end-
PTA congratulates
the company for
this landmark
achievement. This
is the result of concerted efforts for
the development of mobile device
manufacturing ecosystem in the
country. The successful implementation
of Device Identification Registration
and Blocking System (DIRBS) and
enabling government policies including
number along with multiple
packages as shown below:
“Zong is always prioritizing
customers’ needs and going the extra
mile to help them stay connected with
safety and convenience,” said Zong’s
official spokesperson. “Our partnership
August. The number of 3G users of
Telenor decreased from 4.984 million
by the end of July to 4.777 million by
end-August. The number of 4G users
jumped from 17.791 million by the end
of July 18.333 million by end-August.
Ufone 3G users decreased from 4.373
million by the end of July to 4.292
million by end-August. The number
of 4G users of Ufone increased from
6.212 million by the end of July 2021 to
6.246 million by end-August.
the Mobile Manufacturing Policy have
created a favourable environment
for mobile device manufacturing in
Pakistan.
As a part of this policy, Inovi Telecom Pvt
Ltd was issued mobile manufacturing
authorization by PTA on 9th April
2021. Within 4 months, the company
has managed to achieve exporting
‘Manufactured in Pakistan’ phones.
with Pakistan’s leading Islamic bank is
a part of that mission and the realization
of our mutual goal of bringing ease to
our users’ everyday lives.”
“We are happy to partner with Zong
to provide our customers with a range
of exciting bundles and packages in
addition to top-up services of Zong.
We also look forward to growing
this strategic partnership in various
areas of common interest between
the two organizations”, shared
Shariq Mubeen, Head Alternate
Distribution Channels, Meezan
Bank. “We hope this collaboration
goes a long way and facilitates
our mutual users’ everyday
connectivity needs,” he continued.
As a customer-centric company,
Zong 4G aims to uplift its customer’s
experience to newer heights.
Through its most advanced digital
solutions, Pakistan’s leading
telecommunication network is
innovating to provide sought-after
solutions, services, and offers to
its customers while promising to
continue doing so in the future.
TRADE CHRONICLE - Sep - Oct - 2021 - Page # 28
TRADE CHRONICLE
Banking & Insurance
National Bank of Pakistan signs MoU
with Pakistan Microfinance Network
A Memorandum of Understanding
(MOU) has been signed between the
National Bank of Pakistan (NBP) and
Pakistan Microfinance Network (PMN)
for collaboration between the two
organizations to facilitate the growth of
the microfinance industry in Pakistan.
NBP is the largest commercial bank as
far as lending to the microfinance sector
is concerned. This MOU will enable it
to strengthen its linkage with this sector
further and discover new business
opportunities.
NBP will be
facilitating
PMN members
for its accountr
e l a t e d
services as
well as the
provision of
credit facilities.
On the other hand, PMN will boost
linkage between NBP and its members
to promote financial services and share
data & research, client awareness &
financial literacy, and information of
mutual interest.
PMN is a national association for retail
players in the microfinance industry
and was established by industry
practitioners in 1997. Over the years,
the nature and level of activities grew.
Currently, the network strength stands
at 44 microfinance providers, including
Microfinance Banks (regulated by
Inauguration of NBP Learning
& Development Centre
NBP inaugurated a state-of-art,
modern and fully technologically
equipped Learning & Development
Center at FTC Karachi,
September 20, 2021
to provide latest and
industry driven learning
and development
opportunities to its
employees. The center
aims to align staff goals
and performance with the
Banks strategy, objective
and needs.
SBP) and Non-Bank
Microfinance Companies
(regulated by SECP).
NBP is Pakistan’s largest public-sector
commercial bank and provides a diverse
range of products and services through
a vast footprint of over 1,500 branches
throughout the country. The bank is
taking initiatives for increasing market
penetration and growth in the priority
sectors of the economy. The Inclusive
Development Group (IDG) within
NBP is leading these initiatives and is
engaged in focusing on the financial
inclusion of underserved industries
that have
significant
business
potential.
National
Bank (NBP)
is the largest
commercial
as far as
lending to the Microfinance sector
is concerned to further strengthen
its relations with the sector and to
discover new opportunities with this
sector; NBP signed a Memorandum
of Understanding (MoU) with Pakistan
Microfinance Network (PMN). From
NBP, Mr. Rehmat Ali Hasnie (SEVP/
Group Chief, IDG) and from PMN, Mr.
Syed Mohsin Ahmed (CEO) signed this
MoU. Mr. Ahmer Liaquat (Divisional
Head-MFSID NBP) and Mr. Ali
Basharat (Operations Manage, PMN)
were also present at the occasion.
The center was inaugurated by Mr.
Arif Usmani, President and CEO
National Bank of Pakistan along
with Group Chiefs. Speaking at the
occasion, Mr. Usmani said that NBP
is transforming its human capital to be
NBP board: Sarwar made
independent director
The Federal Government has appointed
Sarwar Iqbal as Independent Director
of National Bank of Pakistan (NBP)
Board in place of ex-officio member
Finance Division.
The Finance Division briefed the
Cabinet on September 21, 2021 that
in terms of Section 11(1)(b) of Bank’s
(Nationalization) Act, 1974, National
Bank of Pakistan (NBP)’s Board should
consist of not less than 5 and not more
than 7 members (excluding Chairman
and President).
In terms of Section 11(3)(a) of the Act
the Chairman, the President and other
members of the Board of a Bank were
appointed by the Federal Government
in consultation with State Bank of
Pakistan (SBP) for a term of three
years.
The present composition of the Board
of Directors of NBP was as follows
(i) Zubyr Soomro/ Chairman ;(ii) Arif
Usmani/ President/ CEO;(iii) Arif Jooma
/Director;(iv) Tawfiq Asghar Hussain/
Director;(v) Sadaffe Abid/ Director;(vi)
Imam Bakhsh Baloch/ Director;(vii)
Ahsan Ali Chughtai/ Director and ;(viii)
Farid Malik, CFA/ Private Director.
a competitive resource by equipping
them with the desired skill set in line
with modern banking environment and
future challenges.
Ms. Asma Shaikh, SEVP & Group
Chief Human Resource
Management Group
said that NBP through
this L&D Center shall
support all endeavors
to bring professionalism
in the management of
people through training
and development and
shall nurture the learning
environment amidst a
culture of trust.
TRADE CHRONICLE - Sep - Oct - 2021 - Page # 29
TRADE CHRONICLE
Askari Bank Limited
9MCY21 earnings @ PKR
5.40/share
AKBL announced earnings today
at PKR 6.8bn (EPS:PKR 5.40) for
9MCY21 depicting a YoY downturn of
17% while posting a 99% QoQ increase
(3QCY21 EPS: PKR 2.13). Earnings
posted a sequential jump due to lower
provisioning and improved net interest
income. No dividend was announced.
Result Highlights:
· Net Interest Income of the bank
settled at PKR 24.5bn during 9MCY21,
improving 9% YoY while increasing 7%
QoQ, as interest earned improved by
15% QoQ during 3QCY21.
· NFI declined on YoY as well as QoQ
basis by 6% and 2%, respectively. The
YoY decline was mainly due to a 66%
drop in capital gains during 9MCY21.
· There was decline in provisioning this
quarter (PKR 1.3bn), down 57% QoQ.
However, the total provisioning during
9MCY21 was significantly up at PKR
4.1bn, marking a 210% YoY jump.
· OPEX for the bank was up 7% YoY
in 9MCY21, flattish QoQ with a meagre
1% increase. Cost/Income ratio clocked
in at 64% during 9MCY21, which was
around 55% SPLY.
· Effective tax rate settled at 39% during
9MCY21.
Courtesy – AHL Research
HBL Prestige Lounge
inaugurated in Lahore
Muhammad Aurangzeb, President &
CEO — HBL along with valued clients
and senior leadership of the Bank at the
inauguration of HBL Prestige Lounge
located in Gulberg, Lahore.
Lahore — 29 September 2021: HBL
inaugurated its new Prestige
Lounge located in Gulberg, Lahore.
This is the third HBL Prestige
Lounge in the city and the eighth
across the country with future plans
to expand the Prestige footprint.
The inauguration was led by
Muhammad Aurangzeb, President
UBL announced a dividend
of PkR4/sh
United Bank Limited (UBL) announced
its 9MCY21 results yesterday where
the bank reported earnings of PkR17.8
(NPAT: PkR21.9bn) compared to
PkR12.8 (NPAT: PkR15.4bn) in the
same period last year. The result
came in line with our expectations.
· Together with the result, the bank
announced a dividend of PkR4/sh, taking
YTD cumulative payout to PkR12/sh.
· For 3QCY21, earnings stood
at PkR6.8bn (EPS: PkR5.5),
down 8.5%QoQ/+46.5%YoY
where the sequential decline is
HBL, IMC enter into strategic alliance
HBL signed a Memorandum of
Understanding (MoU) with Indus Motor
Company Ltd. The MoU was signed
by Muhammad Asad Khan, Head –
Secured Assets, Consumer, Rural and
SME Banking and Abdul Rab, Senior
General Manager, Marketing and Sales
- Indus Motors. Through this agreement,
HBL will facilitate its customers by
providing them with exclusive financing
and insurance rates on all Toyota
variants. With this initiative, customers
can avail preferential rates and priority
delivery of their financing facility. The
combined expertise of the companies
will help save time, reduce hassle,
& CEO — HBL. Valued clients and
senior leadership of the Bank was also
present on the occasion.
HBL Prestige provides a world-class
banking experience to high-net-worth
individuals (HNWIs). This exclusive
proposition offers tailored solutions
through dedicated digital & physical
channels and portfolio managers who
provide personalized banking services
attributable to initiation of windup
proceedings of Switzerland branch.
· Net Interest Income (NII) of the
bank remained flat on a QoQ basis
despite Gross Yield of the bank
dropping significantly to 45.6% – the
lowest since 1QCY20 possibly due
to maturity of high yielding PIBs.
· The bank continues to record
reversal in provision which for 3QCY21
stood at PkR708mn compared to
PkR534mn in the previous quarter.
· Effective tax rate of the bank stood
at 42.0% in 3QCY21 vs. 45.5% in the
previous quarter.
Courtesy – AKD Research
and create a seamless
purchase and
financing. In addition, 50
authorized dealerships and 35 TSURE
(used certified vehicles) outlets will be
utilized to offer leasing facilities.
Aamir Kureshi, Head – Consumer,
Rural and SME Banking stated, “The
importance of forging such strategic
partnerships enables HBL to put the
customer first, giving them options
to choose between conventional and
Islamic auto loans so we can facilitate
our customers in every way possible.”
Abdul Rab, Senior General Manager,
Marketing and Sales - Indus Motor,
commented, “When two established
giants, such as Toyota & HBL, in the
auto finance industry join hands to
form an alliance to provide an attractive
offer, it creates an excitement amongst
the consumers in the market. This was
a long-awaited alliance and we are very
excited for the outcome of this alliance.”
to its clients. The state of the art Prestige
lounges are located strategically in high
visibility areas of key cities.
Commenting on the occasion,
Muhammad Aurangzeb, President &
CEO — HBL said, “HBL is committed
to providing a wide array of financial
services to its extensive clientele. HBL
Prestige is exclusively designed to
meet the financial and lifestyle needs
of the Bank’s high-net-worth clients,
providing them with par excellence
services. HBL Prestige promises
to deliver an incomparable value
proposition with a number of industry
firsts as it remains true to its motto of
‘With you, in what you value’.”
TRADE CHRONICLE - Sep - Oct - 2021 - Page # 30
TRADE CHRONICLE
1H 2021: BankIslami
deposits cross Rs300bn
mark
First half of 2021 proved to be a prolific
financial cycle for BankIslami as the
Bank crossed Rs 300 billion benchmark
for its deposit book. This landmark was
achieved as a result of constant efforts
made by the Bank to strengthen its
distribution structure and ‘feet on street’
field force which proved to be pivotal in
enhancing its deposit base, particularly
the low cost CASA deposits.
When compared with balances at
Jun’20, the Bank’s overall Deposit
grew by 26 percent at Jun’21 (growth
of 7 percent from Dec’20) while CASA
deposits witnessed an increase of
34 percent at Jun’21 (increase of
16 percent from Dec’20). Out of
this increase, the growth in Current
Deposits was recorded at 39 percent
(increase of 18 percent from Dec’20).
The continuation of CASA growth trend
will play an essential role in enhancing
Bank’s net income margin (NIM) going
forward.
On the credit side, the Bank disbursed
funds to corporate entities and retail
segment while investment book was
increased through investments in
GoP Sukuks to improve overall credit
risk profile of the Bank. BankIslami
having the largest portfolio in Housing
Finance has successfully achieved
SBP’s mandatory targets for Housing
and Construction and the Government
Markup Subsidiary Scheme (MPMG).
The Bank provides facilities including
housing construction, purchasing and
renovation to both Resident & Non-
Resident Pakistani.
Cumulative operating and other
expenses of the Bank were up by
5 percent mainly due to inflationary
impact linked with staff and non-staff
costs and rise in variable cost directly
attributable to business growth. Owing
to contraction in net spreads, the
operating profit of the Bank decreased
to Rs 1,592 million in HY’21. This
decline was offset by net reversals
of provisioning during the period.
Resultantly, BankIslami posted Profit
After Tax (PAT) of Rs 1,162 million for
the half year ended June 30, 2021, an
8 percent increase from last year’s PAT.
Meezan Bank to provide Corporate and Transaction
Banking Services to Gani & Tayub (G&T) Group
Gani & Tayub (G&T) Group, country’s
leading group with companies across
different sectors including Synthetic
& Rayon and Power Generation, has
embarked on an enterprise level digital
journey with implementation of SAP for
all areas of their operations including
b a n k i n g
and finance.
Accordingly,
after thorough
evaluation
Meezan Bank’s
Transaction
B a n k i n g
solution eBiz+
has met G&T’s highest standards for
host-to-host connectivity with SAP for
payments and collections.
An agreement was recently signed by
the management of respective entities
represented by Mr. Rizwan Diwan
-Executive Director and Mr. Shabbir
Diwan-Executive Director from G&T
Group and Mr. Muhammad Abdullah
Ahmed-Group Head, Corporate
& Institutional Banking and Mr.
Muhammad Sagib Ashraf-EVP & Head
Transaction Banking from Meezan
Bank at G&T Tower, Karachi.
BankIslami has entered
into an agreement with M3
Technologies Pakistan
BankIslami, one of the leading Islamic
banks of Pakistan with a network of more
than 340+ branches in over 123 cities,
has entered into an agreement with
M3 Technologies Pakistan (Pvt) Ltd,
one of Asia’s premier communication
services provider for
business and telecom
operators. WhatsApp
Business will enable
BankIslami customers
around the world
to use the power
of digital platform’s
APIs in 180 countries
around the world to
offer a wide variety of
customer-oriented communication on
WhatsApp.
BankIslami will be rolling out large
number of communication solutions
for its customers on the underlining
WhatsApp Business APIs, which will
allow automation of communication
As per the agreement. Meezan Bank will
provide its state-of-the-art Transaction
Banking Solution (eBiz+) for payments
and collections to the subsidiaries
of G&T Group including Gatron
(Industries) Limited and Novatex Limited
that will ensure efficient cash flow
management
and ease of
reconciliation.
At this occasion,
Mr. Rizwan
Diwan shared
G&T’s ambition
for developing
G&T as a digital conglomerate signified
by the implementation of SAP and
appreciated Meezan’s contribution as
a banking partner in such an initiative.
Mr. Abdullah Ahmed commented: “As
one of the major players in the industry,
Meezan Bank is focusing largely on
delivering innovative cash management
solutions to commercial and corporate
businesses in Pakistan. The addition
of G&T Group to our portfolio is a
monumental opportunity to offer
streamlined cash flow processes and
effectively automating transactions.”
processes and will help accelerate
development of personalized, robotic
and AI based Customer Support
Services.
Mr. Bilal Fiaz, Group Head Consumer
Banking, BankIslami commented; “We
aim to offer our valued customers
optimal digital convenience through
leveraging state of the art digital
platforms and WhatsApp Business is
one such initiative.”
Mr. Saim Zuberi,
Country Manager
for M3 Technologies
Pakistan (Pvt.) Limited
commented; “We are
extremely pleased
to render WhatsApp
Business solution as
a WhatsApp Business
Service Provider to BankIslami. I
believe our Banking sector can harness
the power of WhatsApp Business APIs
and offer Bots and conversational
services supporting Banking customers
around the globe in a reliable and
efficient manner.”
TRADE CHRONICLE - Sep - Oct - 2021 - Page # 31
TRADE CHRONICLE
Habibmetro Sirat wins ‘Best
Islamic Banking Window
for Global Expansion’
The 11th Annual Global Islamic Finance
Awards virtual ceremony took place on
Tuesday, 14th of September, 2021.
HABIBMETRO Bank won the ‘Best
Islamic Banking Window for Global
Expansion Award 2021’ for its Islamic
Banking brand – SIRAT.
This follows HABIBMETRO SIRAT’s
recognition as the ‘Best Islamic Banking
Brand’ at the GIFA 2020 Awards, last
year.
Commenting on this global recognition,
Mr. Mohsin Ali Nathani, President &
CEO HABIBMETRO Bank said,
“We are honoured to be recognised
as the Best Islamic Banking Window
for Global Expansion at GIFA’s global
platform.
We owe this recognition to our
clients whose patronage gives us
the opportunity to grow our Islamic
Banking business, and our employees
whose efforts enable us to achieve our
aspirations.
We are grateful to our respectable
Shariah Scholars, our Corporate
Governance and Shariah Compliance
functions that enable us to continue
offering high quality Shariah Compliant
products across all spectrums.
We aim to continue to provide our
customers with differentiated and
advanced offerings towards their
evolving needs.”
HABIBMETRO SIRAT operates with a
dedicated network of 41 branches and
218 windows across the country, within
HABIBMETRO Banks country-wide
network of 450+ branches in more than
165 cities. SIRAT Islamic Banking is
also offered in the UAE, UK and South
Africa through Habib Bank AG Zurich
(parent bank of HABIBMETRO).
Pak-Qatar General Takaful (PQGTL)
recently signed an agreement with
Cometinsure (Online aggregator)
to promote Takaful products online.
Muhammad Raza (Head of Operations,
PQGTL) and Muhammad Sufyan Bedi
(Operations Manager, Cometinusre)
signed the agreement
along with senior officials
of both companies.
Muhammad Raza while
speaking at the signing
ceremony stated, “We
are extremely delighted to join hands
with Cometinsure as customers will
benefit from searching Takaful products
online and our reach will also increase
to spread awareness about Takaful
products. These kind of partnerships
are very fruitful for offering convenience
to customers.”
An MoU signing ceremony was held
at the TPL Insurance Head Office
located at SMCHS, Karachi, where
TPL Insurance, Pakistan’s leading
Insurtech, has entered into a strategic
partnership with MediQ, Pakistan’s
first virtual hospital. The partnership
provides complete online healthcare
solutions to TPL Insurance customers.
In line with TPL Insurance’s vision to
disrupt existing insurance landscape in
Pakistan and offer premium insurance
service to its customers through digital
medium. Both companies aim to create
a healthcare ecosystem for Pakistani
consumers on the TPL Insurance’s
lifestyle mobile app.
Customers will be enabled to connect
with doctors including specialists
consultants
r o u n d
the clock,
request
s a m p l e
collection for
lab testing
and instant
delivery of
medicines
at their door
step on
discounted
r a t e s
Mr. Sufyan while
expressing
his views
said, “We are
very excited to partner with Pak-
Qatar General Takaful in our urge to
digitalize Insurance/Takaful distribution
channel. This partnership will surely
bring benefits to all the customers of
Cometinsure and Pak-Qatar General
Takaful by bringing ease of purchasing
Pak-Qatar General Takaful Signs MoU with
cometinsure to promote Takaful products
TPL Insurance and MediQ to
digitize healthcare for customers
adequate Takaful
coverage and swift claim
processing.”
Cometinsure being
the most successful
and fastest-growing
insurance aggregator is taking some
huge steps to satisfy their customers by
providing suitable and befitting quotes
in no time. A company originated in
2017 has now become a revolutionary
platform that distributes the best
Insurance/Takaful quotes by allying with
the Top Rated Insurance Companies.
Muhammad Aminuddin,
CEO, TPL Insurance said,
“Being Pakistan’s leading
Insurtech, TPL Insurance
continually utilizes their digital paradigm
to disrupt the insurance industry.
We are redefining the ecosystem of
insurance by servicing our customers
through integration with multiple
business partners. Our partnership with
MediQ will further expand the scope of
our customer-centric initiatives while
offering comprehensive and hasslefree
digital healthcare services.”
CEO MediQ, Saira Siddiqui,
commented, “We are delighted
to partner with Pakistan’s leading
Insurtech Company where all the
initiatives are focused on offering
customer-centric services.
Through this ecosystem, we are
determined to offer quality virtual health
services
to TPL
Insurance
customers.
We look
forward
to further
innovate our
offerings in
collaboration
with TPL
Insurance.”
TRADE CHRONICLE - Sep - Oct - 2021 - Page # 32
TRADE CHRONICLE
Steel & Allied Industry
FF Steel to be listed on PSX
Frontier Foundry Steel (FF Steel),
one of Pakistan’s leading and fastest
growing steel manufacturers and
Financial Advisory Consortium held
a signing ceremony for the award of
mandate for the upcoming listing of FF
Steel on Pakistan Stock Exchange
(PSX).
A Financial Advisory Consortium
(FAC), comprising of HBL, Bank
Alfalah Limited, AKD Securities
Limited, and Alfalah CLSA
Securities Private Limited, has
been engaged to advise the
Company for listing at the local bourse.
Nauman Wazir, Chairman - FF Steel,
Zarak K. Khattak, CEO - FF Steel,
Muhammad Aurangzeb, President&
CEO -HBL, Atif Bajwa, President
& CEO- Bank Alfalah, Aqeel Karim
Dhedhi, Chairman - AKD Securities, Ali
Ansari, Chairman - Alfalah CLSA, and
other senior team members of the FAC
were present at the ceremony. The FAC
together holds strong credentials with
access to deep-rooted capital market
investor base, both domestically and
internationally.
Incorporated in 1986, FF Steel
produces top quality Grade-60 steel
bar shaving plants in Peshawar and
Lahore and ranks amongst the top
three rebar manufacturers in Pakistan.
The Company also intends to explore
different opportunities in the South
region. FF Steel, with its focus on
achieving efficiency and capturing
growth opportunities, has undertaken
backward integration at its Lahore
plant. The Company has also heavily
invested in its IT infrastructure and
boasts state of the art ERP system.
Commenting on the occasion,
Nauman Wazir, Chairman - FF
Steel said, “Over the past 3
decades, FF Steel has built strong
foundations through its systems
and policies, team and market
penetration; I am confident of a
prosperous and secure future of
the Company and its stakeholders.
With the assistance of such a strong
and professional FAC of HBL, BAFL,
AKD and Alfalah CLSA, FF Steel will,
Insha’Allah, be making a historic and
one of the largest ever private sector
IPOs in Pakistan.”
Iron and steel output
swells to 4.7m tonnes
The production of iron and steel,
with billets/ingots mainly used in the
construction industry, in the last 10
years swelled by 196 per cent to 4.777
million tonnes in FY21 from 1.616m
tonnes in FY12.
H/CR sheets/strips, coils/plates,
also known as flat steel products for
production of electronics, surged to
3.296m tonnes in FY21 from 1.850m
tonnes in FY12, Pakistan Bureau of
Statistics (PBS) data of Large-Scale
Manufacturing (LSM) showed. Rising
Sales volumes of ISL are up by
18% YoY to 492k tons in FY21
The flat steel industry’s volumes
increased by 32% YoY to 1,295k tons in
FY21, wherein 624k tons is attributed
to coated steel (galvanized and colourcoated).
Sales volumes of ISL are up
by 18% YoY to 492k tons in FY21. CRC
product applications are in sectors like
(1) Automotive, (2) Electrical goods,
(3) Packaging Drums, (4) Electric/
Home Appliances, (5) Telecom, (6)
Construction and (7) Agriculture,
amongst others. Significant customers
of the company are (1) Yamaha, (2)
Pak Elektron, (3) Dawlance, (4) Atlas
production of steel related products has
led to higher imports of raw materials.
For making steel bars, the country’s
iron and steel scrap imports in FY21
rose to 4.719m tonnes costing $1.86bn
from 1.568m tonnes valuing $538m in
2011-12, the PBS figures showed.
Besides, iron and steel imports swelled
to 2.992m tonnes amounting to
$1.959bn in FY21 from 1.755m tonnes
($1.4bn) in 2011-12. Commenting on
rising demand for steel bars, Pakistan
Association of Large Steel Producers
Secretary General Syed Wajid Bukhari
said steel bar production till 2011-
12 was about three to 3.5m tonnes
Honda, and (5) Loads Limited,
amongst others.
ISL is expanding its production
capacity by 120k tons to 350k tons
through the debottlenecking process.
The total CAPEX of the project is
Rs1.23bn and will be financed with a
combination of debt (TERF and LTFF)
and equity. The plant is expected to
start commercial operation in 3QFY22.
To note, ISL’s capacity utilization for
FY21 stands at ~85%. ISL is also
finalizing the technical study of setting
up a Hot Strip Mill in Pakistan. The
initial designed annual capacity of the
plant would be 1.2mn tons. Phase-1
while the current demand now hovers
between 6.5m tonnes to 7m tonnes.
He attributed increase in steel bar
prices to soaring scrap prices in the
world market to $550 per tonne from
$300 per tonne while one dollar is now
equal to 168 as compared to Rs85 in
2011-12. He said gas price increased
to Rs97 per unit from Rs15 per unit in
the last 10 years followed by power
tariff to Rs21 per unit from Rs6 per unit.
Freight charges are 100 per high now.
Mr Bukhari was of the view that steel
bar demand would soar to nine to 10
million tonnes by 2023-24 in view of
rising construction activities.
of the project is expected to take 27
months, starting from board approval.
Revival of Pakistan Steel Mills (PSM)
is not a significant threat to ISL’s Hot
Strip Mill as the quality that PSM can
produce is not required by the domestic
industry. Furthermore, ISL can produce
up to 500k tons vs domestic demand
of 2mn tons, which is insignificant. ISL
has recently increased their prices by
Rs4,000/ton. This takes 1mm thickness
CRC and HDGC price to Rs204,500/
ton and Rs211,850/ton, respectively.
Courtesy - AHCML Research
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TRADE CHRONICLE
Travel World
PIA losses reduced by half
in 3 years
The annual losses of Pakistan
International Airlines (PIA) have been
reduced to 34.64 billion rupees in 2020
-from 67.32 billion in 2018- while the
national airline has seven properties
abroad, out of which, only two have
been rented out and earning monthly
profits.
Aviation Minister Ghulam Sarwar Khan
shared these details in the maiden
sitting of the 314th Senate session
recently.
According to the details shared by the
minister, PIA’s annual loss in the year
2018 was recorded at Rs67.32 billion
Sri Lankan Airlines offers
‘partner flies free package’
Sri Lankan Airlines is offering a safe
gateway into ‘the heart of paradise’
by extending a special offer for its
customers from Pakistan.
The offer “Partner flies free” is available
for Pakistani leisure travellers who
purchase a double package for the
price of one.
Sri Lankan Airlines operates flights
to Karachi and Lahore from Colombo
since the resumption of travel. Pakistan
travellers who are fully vaccinated can
now easily travel to Sri Lanka without
any quarantine.
PIA signs MoU
Federal Ombudsman for Protection
Against Harassment
Kashmala Tariq, Cheif
Executive Officer
Pakistan International
Airlines (PIA) Air Marshal
Arshad Malik and
Country Representative
UN Women Pakistan
Sharmeela Rasool
signing a Memorandum
of Understanding
(MoU) between Federal
Ombudsman Secretariat
for Protection Against
Harassment (FOSPAH),
that went down to Rs52.60 billion in
2019 and Rs34.64 billion in the year
2020.
In addition, the PIA has seven
properties abroad; three properties in
Amsterdam and one property each
in New Delhi, Mumbai, New York and
Tashkent, the details submitted by the
aviation minister in Senate suggest.
Dimuthu Tennakoon, Head of Worldwide
Sales and Distribution of Sri Lankan
Airlines stated, “Sri Lanka is now open
for Pakistan tourists. People need to be
fully vaccinated, with the second shot
taken at least 14 days before the trip.
On arrival, travellers will go to their
hotel where the RTPCR test will be
conducted. Those who test negative
can explore the country freely.”
Pakistan International Airlines (PIA)
and UN Women Pakistan for providing
harassment-free workplace.
PC Hotel to open near
Attabad Lake
Chief Operating Officer of the
Hospitality and Education Division,
Hashoo Group, Haseeb A. Gardezi
has said the PC Hunza would open its
doors to both travellers and adventure
enthusiasts near Attabad Lake, Hunza
Valley, soon.
He said this as the representatives
of the Pakistan Services Limited and
Road & Story signed the MoU the other
days.
German Airlines to resume
flights in Pakistan
German Airlines Lufthansa has
expressed its keen interest to resume its
passenger and cargo flight operations
in Pakistan what the company says it
halted 13 years ago due to commercial
reasons. A business delegate
representing Lufthansa shared that it
was keen on resuming flight operations
in Pakistan. A meeting with the Minister
for Aviation was arranges by Secretary
BoI to materialize this plan.
Gulf Air contracts Gerry’s
dnata
Gerry’s dnata, Pakistan’s leading
ground services provider, has been
awarded a multi-year contract by Gulf
Air, the national carrier of the Kingdom
of Bahrain, a statement said recently.
The partnership will see Gerry’s dnata
provide quality and safe ground,
passenger and cargo handling services
to the airline at six airports in Pakistan,
including Karachi, Lahore, Islamabad,
Peshawar, Multan and Faisalabad,
according to the statement. “We are
proud to be the ground handler of
choice for Gulf Air in Pakistan. We
consistently invest in infrastructure,
cutting-edge technologies and training
to deliver the best possible services for
our customers,” said Syed Haris Raza,
CEO of Gerry’s dnata.
TRADE CHRONICLE - Sep - Oct - 2021 - Page # 34
TRADE CHRONICLE