TC Nov-Dec 2021 Issue




TRADE CHRONICLE Vol. 68 Issue Nos. 11 & 12 Nov - Dec 2021 Rs. 250/-


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Chronicle Printers




• Islamic banking rises higher, but potential untapped

• Urea industry needs deregulation

• Arabs eye meat in Pakistan: Exports to get $500m more


• Prime Minister's Message on Quaid's Day 25th December, 2021

• Nation celebrates Quaid`s birth anniversary


• Prime Minister Imran Khan inaugurates GLRB Project and new PVC Plant of EPCL

A Chronicle Report

• MPC decided to raise the policy rate by 100 basis points to 9.75 percent


• A review on fertilizer sector of Pakistan By Dr. Muhammad Nawaz Iqbal

• South Korea shows interest in urea import from Pakistan

• Fertilizers sales increased in Pakistan

• Deregulating fertiliser industry By Nasir Jamal

• COP26 & Pakistan By Maha Qasim


• Minister for Maritime Affairs visits London

• Cruise ship at Gadani

• World Bank ponders relocation of Karachi Port By Amin Ahmed

• PQA’s pictorial news

• PNSC signs MoU with HBFC for benefit of it’s employees

• Rising shipping cost impacting export of kinnows: PBF

• First electric autonomous cargo ship launched in Norway

• Shipping and insurance By Capt. Anwar Shah

• Railways revenue increases to Rs 48,651.7m

• New Gwadar Int’l Airport to be operational by Sept 2023

• Boskalis to advance emission-free shipping

Special Report On


• Shoaib made acting President, of MCB Bank

• A review on Pakistan’s Banking Sector By Dr. Muhammad Nawaz Iqbal

• Bakhtiari takes charge as Silkbank President

• Brief on Insurance Companies

• History of Islamic Banking in Pakistan

• Pak-Qatar General Takaful signs agreement with Hifazah

• Meezan Bank-led consortium signs Rs25.5bln syndicated project finance facility

• Tarin meets bankers and discussed issues

• Babar Azam visited Bank Alfalah

• Bank AL Habib deposits increased to Rs. 1,272.6 billion

• Bike rides made safe with customers’ life insurance

• Governor SBP Dr. Reza Baqir unveils AMA to enable opening of branchless banking accounts

• HBL partners with DTB to launch China Coverage Department

• UBL partners with U Bank to promote financial inclusion in Pakistan

• IAP, CDC sign MoU

• NBP joins hands with ICAP to offer training to CA students

• Meezan Bank, ICBC Pakistan ink Tahawwut Master Agreement

• Soneri Bank launches soneri digital to expand its banking landscape

• Profile of the EFU General Insurance



Nov - Dec - 2021

We begin with the name of Allah the Magnificient

Islamic banking rises higher, but potential untapped

In country stands on a sound footing of Scheduled Banks, Microfinance Banks,

the Islamic Republic of Pakistan, banking sectors comprise conventional as

well as Islamic banking, and a blend of both, from deposits to financing. The

Development Finance Institutions and Investment Banks. Five foreign banks also cater

to local customers. Many Islamic banks work in Pakistan, growing fast because of public


Banking professionals said pious Muslims insisted on Islamic Banking Industry (IBI) for

religious reasons as non-Islamic banking and offering or receiving usury is admonished

by Quran as hellfire and is forbidden (haraam) in Islam. Islamic banking undoubtedly

rises higher, but its full potential still remains unachieved, and it awaits more growth,

quite naturally, as it is the Islamic Republic of Pakistan. IBI is in line with the overall

trend in the banking industry here but has various ways to make a more outstanding

contribution, than duplicating conventional non-Islamic systems.




IBI recorded a noticeable growth rate in Assets, Deposits, Investments, Financing and

Capital, and Profitability etc: It contributed about 13.9 percent in the textiles sector and

13.6% in the energy production and transmission sector from April to June 2021 as per

the State Bank of Pakistan data.

IBI assets reported Rs 408 billion growth from April to June 2021. It increased to Rs

4,797 billion by the end of June 2021 from Rs 4,389 billion in the comparable previous

quarter. As per SBP, the main reason behind this expansion was IBI’s financing (net) with

a quarterly rise of Rs 165 billion during this period. IBI investment (net) surged to Rs

17.6 billion. The market share of IBI’s assets in the overall banking industry was recorded

at 17.0% by end of June 2021. The percentage of net financing and investments in total

assets (net) of IBI was recorded at 44.2% and 28.4%, respectively, by June 2021.

However, the number of main Islamic Banking Institutions remained at 22. Its number of

branches that stood at 3,274 by the end of June 2020 had reached 3,583 (spread across 124

districts nationwide) by June 2021. Those 22 main IBIs had five full-fledged Islamic Banks

(IBs) and 17 Conventional Banks having standalone Islamic Banking Branches (IBBs) by

the end of June 2021. IBI branches network is mainly in Punjab, followed by Sindh and

Khyber-Pakhtunkhwa (KP), respectively.


IBI profit before tax was Rs 42.6 billion from April to June 2021 compared to Rs 49.0 billion

in its previous quarter earlier year. Earnings ratios like ‘Return on Assets (ROA)’ and

‘Return on Equity (ROE)’ before tax were recorded at 1.9% and 31.1%, respectively, by the

end of June 2021. Meanwhile, operating expense to the gross income of IBI was slightly

increased and recorded at 52.3% by the end of June 2021 compared to 51.5 percent in its

previous quarter.

Experts urge that given “the reality that Islamic banks are now facing”, it is increasingly

important that IBI operations and product offerings be regulated firmly so that they are

held to the “highest standards of morality” by contributing to the country’s development

while safeguarding the trust of the depositors.

One of the points of concern, despite IBI’s effective performance, is that Islamic banking

currently accounts for only 17% of overall banking assets in Pakistan. Experts rightly

point out that notwithstanding the talk about its double-digit growth, its share is not

impressive, particularly for a predominantly Muslim country and given Islamic banking’s

revival since 2002 when the first full-fledged Islamic bank was licensed. Why has our

public not embraced it en masse when the choice is there?

Lastly, we suggest steps to reduce the Gender Gap in Financial Inclusion and remove the

barriers to women’s access to banking and financial services. And, similarly, the option

is granted to transfer of saving bank accounts from conventional accounts to Islamic

accounts like mobile number portability.



Editorial Comments

Urea industry needs deregulation

Pakistan`s fertilizer industry is

a significant contributor to the

country’s agriculture sector,

and around 4.4 per cent to large-scale

manufacturing, with nearly one per

cent to GDP.

The urea industry invested Rs163bn

in capacity expansions and plant

upgrades in the last ten years under

fertilizer policy 2001. It helped

save more than $3b through import

substitutions in 2021. Currently,

it is providing direct benefit to the

farmer, as local urea bag is available

at Rs 1768 compared to international

prices at Rs 7300 per bag – a saving of

Rs 5500.

However, the Pakistan urea industry

has a checkered history; sometimes,

it exports urea. On the other hand,

the government imports it to build

sufficient inventory for next season,

when it suspects any commodity

shortage. The government also

provides subsidies due to gaps in

local and imported prices. This has

been happening for quite some time,

apparently due to underestimating

requirements and gas curtailment to

Arabs eye meat in Pakistan:

Exports to get $500m more

Pakistan’s meat is being eyed for

imports by food loving Arabs

especially in Jordan, Egypt and

Saudi Arabia, besides usual supplies

to Gulf and Central Asian states,

Malaysia and Indonesia, expected to

increase additional $ 500 million in

revenue for Pakistan.

Pakistan’s meat exporting

organizations and its members

sought formal permission from

governmental food safety officials for

removal of prohibitions on exports.

And to address alarming concerns, by

adopting value addition and heating

to kill Corona/Covid virus and export

cooked, precooked, semi-cooked or

processed meat, thereby exporting to

many countries abroad, especially to

a populous China, as meat output in

Pakistan went up to 100 per cent in a

decade. Most of Pakistani processed

goat meat is currently exported to

Europe. If and when supplied to other

regions, export earnings will multiply.

small urea producers etc. The

industry has sufficient urea

production capacity in the

country. But we are deficient

in the production of phosphate

fertilizer and import a considerable

quantity to feed farmers.

Presently urea industry faces a urea

crisis, and media reports about its

hoarding and exorbitant rates, which

may lead to a shortage to hit wheat

production in Sindh and Punjab.

Farmers are being charged PkR2,300/

bag to PkR2,400/bag as opposed

to the official price of PkR1,800/

bag. The disparity in domestic

and international prices of urea at

PkR7,700/bag has been the primary

reason affecting retail supplies of the


It is good to note that the federal and

provincial governments have taken

solid administrative measures over

the last few weeks, discouraging the

hoarders, which has also served to

improve the availability of fertilizers

in both Punjab and Sindh. Also,

Fertilizer Manufacturers of Pakistan

Advisory Council (FMPAC) organized

the campaign to discourage profiteers

and hoarders of urea. An official of

the FMPAC said the industry supports

Pakistan exported meat and meat

products worth $133.71million

(30,867mt) between July and

November this year as against

$133.57 million (39,420 mt) over

the corresponding months last year,

indicating a marginal growth of 0.10

per cent in terms of value in dollars

but quantity fell by 21.67%, says

Federal Bureau of Statics.

A good export trend, too, was

recorded in FY 21 when meat export

touched $333.42 million (95,991mt),

an all-time high figure, compared to

$ 304.17million in FY20, translating

a growth of 9.62% in terms of both

value in dollar and quantity YoY basis.

Recently, after some good

developments, export is likely to

increase in due course of time after

priorities given by government

to export sectors and allowing

expanding meat slaughterhouses

here. Adviser to PM on Commerce

Razak Dawood said the move was part

of government’s geographical and

product diversification policy.

Nov - Dec - 2021

steps taken by the government to

manage hoarding and resultant

profiteering on urea.

A top official of industry has suggested

deregulating the urea industry to

cover some industry issues. They

believe that they are internationally

competitive even without subsidized

gas and can even fetch export

revenues of $400-500 million a

year if deregulated. Currently, the

fertilizer industry is providing urea at

a significant discount of Rs5000/50kg

bag, meaning a difference in price

compared to imported fertilizer. He

contends that the government can

earn higher revenues and reduce

the country’s fiscal imbalance

by deregulating the sector and

introducing Weighted Average Cost of

Gas (WACOG) for all manufacturers,

including indigenous gas and

imported RLNG-based plants.

Likewise, they hoped that the new

proposed fertilizer policy would

attract around $ 2 billion investment

and considerable forex availability

via import substitution and export.

We expect the government to

announce the same soon to ensure

uninterrupted urea supplies in the


Last month, Jordan also approved

three Pakistan-based slaughter

houses to export meat products

from Pakistan to Jordan. Jordanian

Ministry of Agriculture’s delegation

had finalized those slaughterhouses

after meeting with the top officials

of the government of Pakistan

and members of All Pakistan Meat

Exporters and Processors Association.

This achievement has opened a new

big meat market for Pakistani red

meat and will also enhance the meat

exports from Pakistan.

Furthermore, commerce ministry

said Egypt’s Veterinary Quarantine

Department, after its audit, approved

ten slaughterhouses of Pakistani

companies to export meat to Egypt.

Export of meat is good but not at the

cost of local sales. The meat prices

in the local market have increased

manifolds in-country and become

costlier for the masses. We hope

the government would curb the

smuggling/export of live animals

and ensure meat’s availability at a

reasonable price.



Nov - Dec - 2021

Prime Minister's Message on

Quaid's Day 25th December, 2021

Today we celebrate the birthday

of our great leader Quaid-e-Azam

Muhammad Ali Jinnah. It is a matter

of privilege for our generation and

our children to have been born in an

independent Pakistan that could not

have been our destiny without the

struggle of Quaid-e-Azam.

Muhammad Ali Jinnah realized the

importance of a separate homeland for

Muslims of the subcontinent where all

citizens could enjoy freedom of faith,

occupation and equal opportunities.

Quaid’s determination to unify a

nation despite huge challenges and

opposition was only possible due to

his perseverance. He had a firm faith

in AlmightyAllah and followed the

principles of Prophet Muhammad

(PBUH) that guided him through

Nation celebrates Quaid`s

birth anniversary

The nation celebrated the 145th birth

anniversary of the founder of Pakistan,

Quaid-i-Azam Mohammad Ali Jinnah,

on Saturday (Dec 25, 2021) with

traditional zeal and fervour. Mr Jinnah

was born on Dec 25, 1876, in Karachi.

Various activities were held in

government and private organisations

to shed light on the Quaid`s lifelong

political struggle and his guiding

principles of unity, faith and discipline.

The day was a public holiday and

the national flag was hoisted on

difficulties and challenges.

On this day, I want to

emphasize upon our youth

that Jinnah’s attributes of honesty,

hard work, perseverance and

dedication to a bigger cause made

him the great leader i.e. Quaid-e-

Azam. We as a nation need to adopt

these attributes to realize Quaid’s

vision of a developed, progressive and

tolerant Pakistan.

As per Quaid’s vision, our

Government is striving for a society

free of corruption and a system that

helps the poor and underprivileged

citizens. Pakistan is facing both

internal and external challenges and

the only solution to overcome these is

to live by the Quaid's ideals of Unity,

Faith and Discipline.

It is a day to join together in the same

spirit as our forefathers did during the

principal government

buildings throughout

the country.

The day was stared

with special prayers

for the security,

progress and

prosperity of the


Quran Khawani was

held at the Mazari-Quaid

in Karachi.

The change of guards

ceremony took place. A large number

of people from all walks of life visited

the mausoleum to pay

tribute to Mr Jinnah

for the services he

rendered for creating

a separate homeland

for the Muslims of the


To mark the day, the

Pakistan National

Council of the Arts

has organised various

cultural events. A

painting exhibition,

tableau and speech

competition were

Independence movement. Let us shun

our differences based on cast, creed

and faith and work in unison.

I pray to Almighty Allah that He grants

us strength and unity to realize our

destiny of becoming the strongest

nation on earth as envisioned by our

Quaid-e-Azam Muhammad Ali Jinnah.

Wazir Mansion

organised with the aim of educating the

youth about the Quaid`s vision and his

ideology of Pakistan. An official of the

Pakistan Academy of Letters said that

the `Quaid-i-Azam National Seminar`

would be arranged to highlight the

Quaid`s efforts for the supremacy of the

law. The Nazriya Pakistan Council has

also arranged week-long programmes

to mark the day.

Mr Jinnah was a lawyer by profession

and a politician. He served as the

leader of All-India Muslim League from

1913 until Pakistan`s independence on

Aug 14, 1947, and then as Pakistan`s

first governor general until his death

on Sept 11, 1948.



Prime Minister Imran Khan inaugurates

GLRB Project and new PVC Plant of EPCL

A Chronicle Report

Prime Minister Imran Khan has

inaugurated the Green Line

Rapid Bus (GLRB) Project on a

day long visit to Karachi on Dec 10.

Federal Minister for Planning and

Development, Asad Umar, Information

and Broadcasting Minister, Fawad

Chaudhry, Governor Sindh, Imran

Ismail and others accompanied the

Prime Minister during the inaugural.

Later, Imran Khan also inspected the

bus service.

PM Imran Khan also inaugurated

new 100,000 tons PVC Plant of Engro

Polymer & Chemicals in Karachi. In

addition, PM Imran Khan chaired

a meeting of PTI office-bearers in


Green Line Rapid Bus Project

Addressing the inaugural ceremony

of the Green Line Rapid Bus project,

the Prime Minister said Karachi is

the country’s engine of growth as the

country’s prosperity is linked with the

city’s development.

He said the first step to modernize any

city is to improve its transport system.

Still, unfortunately, no government

paid heed to addressing the transport

problem of Karachi in the past. He

further said that Karachi was the city

of lights. “We saw the city of lights

getting deteriorated. He said that the

city’s administration never thought to

introduce a transport system,” he said.

Earlier, addressing the ceremony,

Federal Minister for Planning and

Development, Asad Umar, said Green

Line is one of the five mega projects

initiated by the Federal Government

in the city completed. Its commercial

operation will start from the 25th of

this month.

GreenLine Bus Rapid Transit System

project will provide modern travel

facilities to one hundred and thirty-five

thousand passengers daily in Karachi’s

western and central districts, making

their access to Central Business

District easy and safe. This service

comprises 80 hybrid buses, and the

fare is expected to be between Rs15

and Rs55. The passengers can buy

tickets through mobile applications,

debit and credit cards.

GreenLine Bus

service will be

on trial till Dec

25. This project

connects 22

stations between Surjani Town and

Numaish Chowrangi.

The Ministry of Planning and

Development has implemented the

project through Sindh Infrastructure

Development Company in the

particular interest of the Minister

for Planning and Development Asad


PVC Plant of Engro Polymer &


Prime Minister Imran Khan has

inaugurated the new 100,000 tons

PVC III Plant of Engro Polymer &

Chemicals (EPCL), a subsidiary of

Engro Corporation, which will enable

import substitution of PVC and boost


Set up in 1997 as a joint venture with

Mitsubishi and Asahi Glass, EPCL is

the only fully integrated Chlorvinyl

chemical complex and producer of PVC

in Pakistan. Since 2015, the Company

has invested over $188 million in Plant

expansion and other upgrade projects

for higher efficiency, reliability, and

diversification of operations. The Plant

expansion has been completed with up

to $50 million financing support from

the International Finance Corporation

(IFC) and leveraged global expertise

in project execution with a Japanese

licensor and Chinese construction


With the new capacity, EPCL can

now produce 295,000 tons of PVC per

annum to fully cater to the surging local

demand, owing to the Government’s

favourable construction sector

policies, and achieve exports. Through

enhanced local production, EPCL will

now be contributing around $ 240

million towards import substitution.

The Company has exported PVC resin

worth $ 25 million to Turkey and the

Middle East markets in 2021.

According to Ghias Khan, President

& CEO of Engro Corporation and

Chairman of EPCL, “As a home-grown

conglomerate, Engro has always

strongly believed in the economic

potential of Pakistan and, therefore,

we have committed to invest in

businesses that help solve some of the

Nov - Dec - 2021

most pressing issues of Pakistan. This

expansion is a landmark achievement

for Engro, and we are confident that

it will reshape the petrochemicals

landscape of Pakistan. We fully

support the Government’s ‘Make in

Pakistan’ policy to promote exportoriented

industrialization. I want to

thank our local teams, global partners,

and Government stakeholders, for

showcasing good resilience and

collaboration for completion of this

expansion, despite the challenges

posed by COVID-19.”

Addressing the inaugural ceremony,

Prime Minister Imran Khan said that

the PTI Government was pursuing

policies to support local businesses’

expansion and promote import

substitution and exports. In particular,

PM Imran Khan urged the business

community to focus on import

substitution and diversification of the

export base to support the sustainable

economic growth of Pakistan. He

appreciated the pivotal role of Engro

Corporation and its subsidiaries in

different sectors of the economy.

The PVC demand in Pakistan has

grown at a steady rate of 6% each year,

with around 70% of the consumption

going into the construction sector.

Besides PVC, EPCL also produces the

critical raw material of caustic soda

for the textile industry, thus, being

a valuable supply chain partner for

Pakistan’s largest export sector.



MPC decided to raise the policy rate

by 100 basis points to 9.75 percent

The Monetary Policy Committee

(MPC) of State Bank decided

to raise the policy rate by 100

basis points to 9.75 percent. During

its meeting held on Dec 14 2021 the

goal of this decision is to counter

inflationary pressures and ensure that

growth remains sustainable.

Since the last meeting on 19th

November 2021, indicators of activity

have remained robust while inflation

and the trade deficit have risen

further due to both high global prices

and domestic economic growth.

In November, headline inflation

increased to 11.5 percent (y/y). Core

inflation in urban and rural areas also

rose to 7.6 and 8.2 percent, respectively,

reflecting domestic demand growth.

On the external side, despite record

exports, high global commodity

prices contributed to a significant

increase in the import bill. As a result,

the November trade deficit rose to $5

billion based on PBS data.

The MPC noted that recent data

releases confirm that the emphasis

of monetary policy on moderating

inflation and the current account

deficit remains appropriate. Following

today’s rate increase and given the

current outlook for the economy, and in

particular for inflation and the current

account, the MPC felt that the end goal

of mildly positive real interest rates on

a forward-looking basis was now close

to being achieved. Looking ahead, the

MPC expects monetary policy settings

to remain broadly unchanged in the


In reaching its decision, the MPC

considered key trends and prospects

in the real, external and fiscal sectors,

and the resulting outlook for monetary

conditions and inflation.

Real sector

High-frequency indicators of domestic

demand released since the last meeting,

including electricity generation,

cement dispatches, and sales of

fast-moving consumer goods and

petroleum products, and continued

strength in imports and tax revenues

suggest that economic growth remains

robust. The outlook for agriculture

continues to be strong, supported by

better seed availability

and an expected increase

in the area under wheat

cultivation. Meanwhile,

robust growth in sales tax on services

also suggests that the tertiary sector

is recovering well. While some activity

indicators are moderating on a

sequential basis, partly as a result

of recent policy actions to restrain

domestic demand, growth this fiscal

year is expected to be close to the

upper end of the forecast range of 4-5

percent. This projection factors in the

expected impact of today’s interest

rate decision. The emergence of the

new Coronavirus variant, Omicron,

poses some concerns, but at this stage

there is limited information about its

severity. The MPC noted that Pakistan

had successfully coped with multiple

waves of the virus, which supported a

positive outlook for the economy.

External sector

Despite strong exports and

remittances, the current account

deficit has increased sharply this year

due to a rise in imports, and recent

outturns have been higher than

earlier expected. Based on PBS data,

imports rose to $32.9 billion during

July-November FY22, compared to

$19.5 billion during the same period

last year. Around 70 percent of this

increase in imports stems from the

sharp rise in global commodity

prices, while the rest is attributable

to stronger domestic demand. Due to

the higher recent outturns, the current

account deficit is projected at around 4

percent of GDP, somewhat higher than

earlier projected. While in the near

term monthly current account and

trade deficit figures are likely to remain

high, they are expected to gradually

moderate in the second half of FY22 as

global prices normalize with the easing

of supply disruptions and tightening

of monetary policy by major central


In this context, the MPC emphasized

that the monetary policy response to

arrest the deterioration in the current

account deficit has been timely.

Together with the natural moderating

influence of the flexible and marketdetermined

exchange rate, the MPC

felt that this response would help

achieve the goal of a sustainable

current account deficit this fiscal year.

Moreover, the MPC noted that the

current account deficit is expected

Nov - Dec - 2021

to be fully financed from external

inflows. As a result, foreign exchange

reserves should remain at adequate

levels through the rest of the fiscal year

and resume their growth trajectory

as global commodity prices ease and

import demand moderates.

Fiscal sector

During July-November FY22, fiscal

revenue growth has been strong,

driven by a broad-based and abovetarget

increase in FBR tax collections

(36.5 percent (y/y)). However, lower

petroleum development levy (PDL)

collection led to a decline in nontax

revenues (22.6 percent (y/y) in

Q1 FY22). On the expenditure side,

development spending and subsidies

and grants have increased significantly

during this period.

Monetary and inflation outlook

Since the last meeting, despite a

moderation in consumer loans, overall

credit growth has remained supportive

of growth. Meanwhile, across all

tenors, secondary market yields,

benchmark rates and cut-off rates in

the government’s auctions have risen

significantly. The MPC noted that this

increase appeared unwarranted.

The momentum in inflation has

continued since the last MPC meeting,

as reflected in a significant increase

in both headline and core inflation

in November. Due to recent higher

than expected outturns, SBP expects

inflation to average 9 – 11 percent this

fiscal year. The pick-up in inflation

has been broad-based, with electricity

charges, motor fuel, house rent, milk

and vegetable ghee among the largest

contributors. On a sequential basis,

inflation rose 3 percent (m/m) in

November. Looking ahead, based on

this momentum and the expected

path of energy tariffs, inflation is

likely to remain within the revised

forecast range for the remainder

of the fiscal year. Subsequently, as

global commodity prices retrench,

administered price increases

dissipate, and the impact of demandmoderating

policies materializes,

inflation is expected to decline toward

the medium-term target range of

5-7 percent during FY23. The MPC

will continue to carefully monitor

developments affecting mediumterm

prospects for inflation, financial

stability and growth.



Nov - Dec - 2021

A review on fertilizer sector of Pakistan

By Dr. Muhammad Nawaz Iqbal

Pakistan’s biggest enterprises are for

the most part associated with utilities

like oil, gas, power, vehicle, concrete,

food, fertilizer, common aeronautics,

and media transmission. Fertilizer is

a significant and expensive element

liable for 30 to 50 percent increment in

the yield usefulness. The general target

is maintainability and development in

agricultural area that should coordinate

with the developing populace for food

security and the advancement of

monetary development.

There are nine urea

fabricating plants, one

DAP, three NP, four SSP,

two CAN, one SOP and

two plants of mixed NPKs

having an absolute creation

limit of 9,172 thousand

tons for each annum in

2021. Urea is fundamental

fertilizer having 70% offer

in absolute creation.

Introduced creation limit

of 6,307 thousand tons for

every annum is sufficient to

fulfill neighborhood need

subject to the accessibility

of continuous gas and RLNG


The wellsprings of fertilizer

supply in Pakistan are

homegrown creation and

imports. Those made

locally incorporate urea,

calcium ammonium nitrate

and ammonium sulfate

(AS) as straight nitrogen

manures. Significant central

participants in the fertilizer

business have effectively

been serving, instructing

and enabling the cultivating local

area through important formative

drives in association with different

government assistance and monetary


All out domestic installed limit of a

wide range of fertilizer creation in

Pakistan is as of now assessed at 10.0

million metric tons, 69% of which is for

urea and 31 percent for DAP and potash

(the compost item with the dynamic


potassium). Lately,

the business was

working beneath

limit, at around 75% of limit in 2013-

14. Ordinarily, Fertilizer producer

supply products to vendors with a

suggested most extreme value, which

is comprehensive of the sellers net

revenue. Vendors obtain fertilizer

stocks usually on a money premise,

however once in a while against a bank

guarantee and sell the item through

their business specialist networks at

costs that are dictated by the organic

market circumstance.

The quick extension of Pakistan’s

fertilizer creation capacity alongside

expansions in fertilizer imports, and

the development of the approach,

market and institutional framework

needed to elevate fertilizer use led to

critical yield gains in wheat and rice.

Fertilizers are applied to crops both

as solids and as fluid. Around 90% of

fertilizer are applied as solids. The most

generally utilized strong inorganic

fertilizer are urea, diammonium

phosphate and potassium chloride.

Strong fertilizer is regularly granulated

or powdered. Regularly solids are

accessible as prills, a strong globule.

Fluid fertilizer include anhydrous

smelling salts, watery arrangements

of alkali, watery arrangements of

ammonium nitrate or urea.

The presence of a cutthroat market

is, in any case, dependent upon

government intercession, at times

specially appointed in nature and at

times more primary.

Right now, in Pakistan, there

are six significant makers of

manures which incorporate

Fauji Fertilizer, Engro

Fertilizer Company, Dawood

Hercules, and Fatima

Fertilizers. Urea is one of the

main fertilizer in Pakistan.

Urea is exceptionally

dissolvable in water and

is in this way likewise

truly reasonable for use

in fertilizer arrangements

(in blend with ammonium

nitrate: UAN), e.g., in

‘foliar feed’ fertilizer. For

fertilizer use, granules are

liked over prills on account

of their smaller molecule

size conveyance, which is

a benefit for mechanical


Urea is typically spread at

paces of somewhere in the

range of 40 and 300 kg/ha

(35 to 270 lbs/section of

land) yet rates differ. More

modest applications bring

about lower misfortunes

because of draining. During

summer, urea is frequently

spread not long previously or during

precipitation to limit misfortunes from

volatilization (an interaction wherein

nitrogen is lost to the climate as

smelling salts gas). Despite of Covid-19

pandemic, Fertilizer sector is still not

increasing their prices comparatively

other sectors of Pakistan. Fertilizer

sector still required enhanced research

and development domain to discover

new patterns of growth of this sector.



South Korea shows interest in

urea import from Pakistan

South Korea has shown interest in

importing urea from Pakistan since

South Korean urea supplies have been

impacted due to recent limitations on

the export of urea and other fertilizers

from China. A delegation of Engro

Fertilizers Limited was called by the

South Korean Embassy to discuss the

possible opportunity of the export

of urea to South Korea. Pakistan has

significant potential to export urea and

earns valuable foreign currency for the


After the meeting with the Ambassador

- Mr. Suh Sangpyo and Counsellor

(DCM) – Mr. June Seo Park, Imran

Ahmed (CFO - Engro

Fertilizers Limited) briefed

the media on these

significant discussions.

Mr. Imran Ahmed

highlighted that Pakistan

was a net importer of urea

till 2012 as the domestic

manufacturers faced

capacity constraints to

meet the country’s high

urea demand. However, the

Fertilizers sales increased

in Pakistan

•According to monthly data of fertilizer

offtake released by NFDC, Urea offtake

in October 2021 increased by 24% yoy

and 5% mom to c.514,000 tons. The

yoy increase is majorly due to higher

demand from farmers amid better

crops yield and elevated commodity

prices. On a cumulative basis, in

10MCY21, Urea offtake increased by

12% yoy to 5.17mn tons. The market

share of FFC/FFBL shrunk by 4/1ppt

to 39%/8% in 10MCY21; whereas, that

of EFERT/FATIMA increased by 1/3ppt

respectively to 37%/13%.

• Urea ex-factory prices

remain unchanged mom

at c.PKR1,730/bag in

October 2021. However,

dealers in the market

were selling at a premium

of PKR300-350 per bag.

This was due to (i) the

anticipated increase in

GST from the current level

of 2% and (ii) the massive

surge in international

Urea prices have also

Fertilizer Policy 2001 incentivized

the local industry to invest around

Rs 162 billion in new plants and

capacity expansions. As a result,

the domestic production capacity

increased by approximately 2 million

tons and helped Pakistan not only to

attain self-sufficiency in urea but has

also created excess capacity which

may earn precious foreign exchange

for the country.

He further explained that with domestic

urea demand of hovering around 6-6.2

million tons, the fertilizer industry has

an idle capacity of 800,000 tons on an

annual basis. If granted permission by

the government, the industry can start

making exports within 30 days, which

will create additional jobs and result in

created room for local producers

to increase prices a little to pass on

the higher transportation cost and

inflationary pressures.

• Industry Urea inventory stood at

c.137,000 tons at the end of October

2021, compared with c.116,000 tons

by the end of the previous month. The

mom increase in inventory level is due

to higher production than last month.

• DAP offtake increased by c.49% yoy

and 55% qoq to c.342,000 tons. DAP

sales in 10MCY21 declined by only

3% yoy to 1.54mn tons; which is again

despite the massive jump in DAP

Nov - Dec - 2021

significant foreign exchange inflows of

over USD 700 million on a current spot


Whilst Pakistan faces a severe gas

shortage, the urea manufacturers

utilize low quality (low British Thermal

Unit - BTU) gas for which adequate

gas reserves for the next decade and

beyond are available. Moreover,

with the right government support,

untapped reserves of low BTU gas in

the country can be put to use to earn

the much-needed foreign exchange

for the country. The requirement of

urea in South Korea, coupled with the

unutilized capacity of Pakistan, may

create a possibility to develop a longterm

sustainable export opportunity

for the country.

The domestic fertilizer

industry has enabled USD 3

billion import substitution

for the country during this

year. After achieving selfsufficiency

for the domestic

demand, the industry is

now geared to generate

significant exports from

untapped low BTU

indigenous gas resources.

prices in 10MCY21. This shows the

elevated purchasing power of farmer

community post commodities price

hikes post Covid-19 pandemic. DAP

inventory during the month stood at

c.342,000 tons, up 49% yoy.

• Also during the month DAP prices

increased by PKR500/bag to PKR6,850/

bag. As of today, DAP prices have

further increased to PKR8,000 and are

expected to increase further as well.

The major beneficiary of the increase

in DAP is FFBL.

• Offtake and prices of both Urea and

DAP are expected to remain elevated

in the remainder of CY21,

sustaining the momentum

from 10MCY21. The DAP

international prices are

likely to normalize in

CY22. However, if the

government increases

GST from 2% to 10% or

17% in the coming weeks

then we will see massive

price hikes across the


Courtesy ( Intermarket

Securities Limited )



Deregulating fertiliser industry

By Nasir Jamal

ENGRO Fertilizers Chief Financial

Officer (CFO) Imran Ahmed has

more than 20 years of diversified

work experience in leadership and

management positions in large firms

in Pakistan and abroad.

He recently spoke with

local media on issues

relating to deregulation of

the fertiliser industry and

the development of an

effective mechanism for

providing direct, smart

subsidy to the small

farm holder, and how

these policy changes will

benefit the stakeholders:

small farmers, urea

producers, government,

and on and on.

`There`s a perception in the market

that urea manufacturers are profitable

because they get gas at subsidised

prices. No sir; that is not correct

perception. We are profitable because

we are internationally competitive

even without subsidised gas and can

even fetch export revenues of $400-

500 million a year if deregulated,` Mr

Ahmed says as he gives details of a 10-

year analysis of the industry.

`The analysis shows that

the subsidy passed on

by the industry to the

farmers is way more than

what we have received

by way of subsidised

gas prices from the


The industry has foregone at least

Rs500bn in its revenues in the last

10 years by selling urea to growers at

highly discounted rates compared with

the international prices.

Currently, the producers are getting a

subsidy of Rs842 per mmbtu on gas but

say they are competitive even at the

current LNG prices if deregulated and

allowed to charge import parity prices

for their urea.

`You withdraw subsidy, provide us gas

at the WACOG (or weighted average

cost of gas) and let us sell our product

at import parity price. We will show you

that we are internationally competitive

and can earn more money and even

Imran Ahmed

export,` Mr Ahmed insists.

Pakistan`s fertiliser industry

is a major contributor towards

the agriculture sector of the country.

The sector contributes around 4.4

per cent to large-scale manufacturing

and nearly 1pc to GDP. According

to Pakistan Credit Rating Agency

(Pacra), the industry`s

revenues in 2020 stood

at Rs381 billion. The

Pacra report says local

urea prices operate at

a significant discount

to the international

urea price. The delta

between the two rose to

as high as about 41pc and

36pc in 2018 and 2019.

According to the urea

makers, the delta rose to

over 80pc this year as the

international commodity

prices jumped on supply

disruptions and because of other

factors in the post-Covid period.

The urea industry made an investment

of Rs162bn in capacity expansions

and plant upgrades in the last 10 years

and its ability to meet the domestic

demand has shielded Pakistan from

the Covid-induced shocks in global

urea prices that have surged by 86pc

since last year. Through import

substitution, the fertiliser industry is

estimated to contribute

more than $3bn towards

reducing the trade deficit

in 2021. As a result of

the significantly lower

prices, the local fertiliser

industry will save farmers

from an additional

burden of Rs363bn.

The return on equity and return on

assets of the fertiliser industry at 33pc

and 11pc are, the producers said, much

lower than major industries, including

food and personal goods, automobiles,

and oil exploration and production.

The return on equity and return on

assets for other industries are as high

as 67pc and 190c.

Nov - Dec - 2021

`Currently the fertiliser industry is

providing urea at a significant discount

of Rs5000/50kg bag compared to

imported fertiliser. By dereg-ulating

the industry and introducing WACOG

for all manufacturers, including

indigenous gas and imported RLNGbased

plants, the government can

earn higher revenues and reduce

the country`s fiscal imbalance,` he


That means urea will be available to

the growers at much higher prices

compared to import parity costs.

`Agricultural productivity and framers

incomes, especially at the bottom of the

pyramid, could take a massive hit if no

countermeasures are taken to mitigate

this adverse outcome; the government

will need to implement smart subsidy

mechanism for smallholders.

Mr Ahmed says the removal of gas

subsidies to the urea producers will

transfer Rs89bn from the industry to

the national exchequer, which is more

than the amount it needs to finance

the targeted subsidy of around Rs65bn

for small landholders. It will still save


`Around 90pc of the farmers own

around 48pc of the land, with a size of

less than 12.5 acres. These smallholders

need to be subsidised and not the 10pc

who own 52pc of land.

The equal flow of subsidies to both big

and small growers has to be stopped.

You cannot treat a person who earns

Rs10m and another who takes home

a couple of hundred thousand equally.

How long can we sustain these

kinds of policies? Especially, when

theInternational Monetary Fund is

breathing down our neck?`

Mr Ahmed acknowledges that food

inflation is one of the biggest challenges

facing people and the government. But

he stresses that urea prices do not have

any impact on food inflation. He says

fertilisers form just 2.4pc-3pc of the

farm input costs. `The removal of feed

gas subsidy on the production of urea

and diammonium phosphate (DAP)

will not have a significant impact on

the prices of major crops and resultant

expenditure of family households in


According to his calculations, every

Rs50 per bag increase in urea price has

an impact of only 1 paisa on the price

of a `roti`. The impact of a Rs50/bag

increase in urea price on other agri

commodities like rice, sugar, maize,

potato, tomato and banana is all within

10 paisas per kilo.

Courtesy ( DAWN )



COP26 & Pakistan

By Maha Qasim

THE 26th Conference of the Parties

(COP26) to the United Nations

Framework Convention on Climate

Change took place in Glasgow from

Oct 31 to Nov 13, 2021. The resulting

policy document — the Glasgow

Climate Pact — eroded the trust of

developing countries and once again

underscored the feeling among them

that developed nations are not serious

about their commitments.

Representation from the developing

countries was limited due to Covid

vaccine inequity and quarantine

rules, prohibitive costs of travel

and accommodation and lack of

transparency around the participation

process. The last-minute watering

down of the agreement’s text due

to pressure from a few countries

put the interests of the majority

of climate-vulnerable countries

at risk.

Progress on key issues for

developing nations like climate

finance, adaptation and loss and

damage was limited. Wealthy

nations have already failed to

meet their previous climate

finance pledges which aimed to

mobilise $100 billion annually

by 2020 to enable developing

nations to transition towards

sustainable development. The

funding shortfall has fuelled

mistrust among nations like

Pakistan that have negligible

historical emissions but are

disproportionately vulnerable to

the adverse impacts of climate


Many developing nations have

made their climate pledges

contingent on receiving external

support. While concurring with the

observation that Pakistan’s Nationally

Determined Contributions (NDC),

with their “total target of a 50 per

cent emissions reductions by 2030”,

was ambitious, Minister for Climate

Change Malik Amin Aslam stated that

this was “conditional on getting $100

billion financing” to facilitate “a clean

and just energy transition”.

Indonesia and Vietnam have

committed to stopping the

construction of new coal plants and

phasing out existing plants by the

2040s but contingent on receiving

international funding to help reduce

their coal dependency. Dedicated

climate finance would be used to pay

debts, accelerate the retirement of

existing coal plants and finance clean


Developed countries agreed to

begin reducing coal-fired power and

eliminating subsidies on other fossil

fuels. However, following objections

from China and India, the wording in

earlier drafts of the text to “phase out”

coal was changed to “phase down”. The

biggest greenhouse gas emitters will

therefore continue using coal power

domestically. Pakistan too has decided

to continue using domestic coal but

will no longer develop imported coal


Pakistan also signed the Global

Methane Pledge, an initiative of

over 100 countries to curb methane

emissions, but says it does not “believe

in the net-zero concept at the moment”.

The US and EU have pledged to reach

net-zero greenhouse gas emissions by

2050, China has pledged net-zero CO2

emissions by 2060, while India has

pledged net-zero carbon emissions by


The varying timelines and lag in

translating policy action into law

signals a lack of seriousness about


Nov - Dec - 2021

the urgency of climate action. Only

a few of the 74 countries with netzero

commitments have formalised

them into law. How seriously these

commitments should be taken or how

likely they are to actually be achieved

remains unclear.

Further, several fossil fuel-dependent

countries argue in favour of emerging

and currently expensive technologies

to capture and permanently store

carbon dioxide underground

rather than emphasising behaviour

change. Japan, Saudi Arabia, China

and Australia, as well as the OPEC

nations, all champion carbon capture

and storage, claiming this could

dramatically cut fossil fuel emissions

from power plants and industry.

But basing future policy targets on

as yet unproven technologies only

serves to highlight the ambiguity

in countries’ commitment to

tackling climate change.

Based on these developments,

COP26 has largely been perceived

as kicking the can down the

road. The Glasgow Climate Pact

“requests” governments to revisit

and strengthen their NDCs before

the end of 2022 to bring these in

line with the Paris Agreement’s

temperature goal of 1.5 degrees

Celsius ahead of COP27, which

will take place in Sharm el Sheikh,

Egypt, in 2022.

With warming already at 1.1°C

above pre-industrial levels,

the window of opportunity for

avoiding the most disastrous

climate impact is fast closing: to

limit warming to 1.5°C, global

emissions must be reduced by

45pc by 2030. Under existing

emissions reduction pledges,

by 2030 emissions will be nearly

14pc higher than in 2010.

Since Pakistan contributes less than

1pc of global greenhouse emissions,

it would make more sense to focus

the country’s limited resources on

enhancing the adaptation capacity

of vulnerable communities, building

resilience to future climate shocks,

climate-proofing our water, energy,

healthcare and agriculture sectors

and developing a robust emergency

response and disaster management

plan to prepare for the challenges


Courtesy ( DAWN )

Minister for Maritime Affairs visits London

Cruise ship at Gadani

A magnificent 14-storey cruise ship is

set to end its nearly three-decade-long

journey at Gadani shipbreaking yard, in

Balochistan. According to the owner, the

country has no space to park the cruise

ship but to scrap it. Ahmedullah Khan,

the importer of the vessel, had requested

the government to allow turning

the ship into

a hotel by

docking it off

the Karachi

Federal Minister for Maritime Affairs

Syed Ali Haider Zaidi exchanged

views on maritime development &

significance of Transhipment with

World Bank ponders

relocation of Karachi Port

By Amin Ahmed

The World Bank has in a new study

explored the cost, process and impact

on a potential relocation of Karachi


The global lender in the report assessed

alternative ways of bridging the gap

between demand and improvement

of capacity and access to Karachi Port

and Port Qasim.

The report — Karachi Ports Supply

and Demand Assessment — explored

alternatives for a national port strategy:

to develop both Karachi and Qasim

ports simultaneously;

focus on one at a time; or

develop a third new port

sometime in the mid-

2030s when Port Qasim

would be at its maximum


Comparative costs of

alternative development

discount simultaneous

development of both

Karachi and Port Qasim.

Development of either

port one at a time

could possibly provide

navigation, berth, and

Secretary General of IMO. Secretary

General appreciated Pakistan’s offer to

participate in Maritime Convention at

Karachi Port.

land access capacity at relatively high

cost. Developing Karachi Port elevated

expressway would not resolve the

channel depth issue at Port Qasim.

The assessment shows that the Karachi

Port efficiency and capacity can be

increased if elevated expressway

project would serve South Asia

Pakistan Terminals (SAPT), oil

installations, East and West Wharves

relieving traffic at Keamari and Dock

yard Road; renovate rail lines at SAPT,

and dispatch regular trains every day;

and develop Pipri rail corridor.

The second option, developing PQA

only, with an improved maritime

access via 2 channels, would involve

a cost of $550 million, but this action



or use it for travel and

tourism, saying that it is in “workable

condition” for the next 10-15 years. But

the authorities turned down the idea

due to the size of the vessel.

alone will not resolve Karachi’s traffic

snarls, assessment shows.

The third option of simultaneous

development at both KP and PQ at

a total a cost of $850 million, would

effectively remove the main obstacles.

The fourth option was that of a third

new port. Two possible locations have

already been considered, Somiani,

85km to the north of Kara chi, and Keti

Bunder, 150km to south of Karachi.

Neither has rail access and both

require long and high maintenance

access roads that would, furthermore,

not relieve Karachi’s traffic congestion.

Thus, previous feasibility reports

concluded that no location fitted the

criteria for a deep-water port within

150kms of Karachi.

The other option is

Gwadar. But Gwadar has

failed to attract traffic

from Karachi Port or

Port Qasim over the

past 15 years since its

inauguration. Gwadar has

been leased to China for

43 years, until 2059. The

only container service,

running at Gwadar, is

by COSCO, with limited


Courtesy ( DAWN )


PQA’s pictorial news

Nov - Dec - 2021

First electric autonomous

cargo ship launched in


Zero emissions and, soon, zero

crew: the world´s first fully electric

autonomous cargo vessel was unveiled

in Norway, a small but promising

step toward reducing the maritime

industry’s climate footprint.

A delegation headed by President

FPCCI Mian Nasir Hayatt Maggo

visited PQA recently. Chairman PQA

gave detailed presentation about the

Port operational/industrial activities

and ongoing & future projects.

They expressed keen interest and

appreciated PQA pottential and


PNSC signs MoU with HBFC for benefit of it’s employees

By shipping up to 120 containers

of fertiliser from a plant in the

southeastern town of Porsgrunn to the

Brevik port a dozen kilometres (about

eight miles) away, the much-delayed

Yara Birkeland, shown off to the media

on Friday, will eliminate the need for

around 40,000 truck journeys a year

that are now fuelled by polluting diesel.

“Of course, there have been

difficulties and setbacks,” said Svein

Tore Holsether, chief executive of

Norwegian fertiliser giant Yara.

PNSC entered into a MOU with HBFC

for the benefit of PNSC’s employees

desirous of availing house financing

facility. Through this MOU, HBFC

Rising shipping cost impacting

export of kinnows: PBF

Vice President of Pakistan Businesses

Forum (PBF), Chaudhry Ahmad Jawad

has said the global trade is feeling the

pressure from rising costs of shipping

which is also affecting the ongoing

kinnow exports. According to the report

by the United Nations Conference on

Trade and Development estimates

that the surge in freight could increase

global import price

levels by 11 percent. This

would mean consumer

price levels would go up

by 1.5 percent till 2023.

The rising shipping cost

will impact the export of

shall offer PNSC’s employees loans at

preferential terms and rates. Home

ownership shall now be easier for

PNSC’s employees.

Pakistan’s kinnows to Canada,

Russia, Ukraine, Indonesia and

the Philippines. These countries

account for 50 percent of Pakistan’s

total kinnow export. The freight charges

were between $2500 and $3000. Now,

this rate has gone up to $7000.

However in the interesting

development, Chaudhry Ahmad

Jawad said Afghan government has

imposed Rs33 per kg import tax on

kinnow this season against Rs3.5 per

kg of the previous year,

if Islamabad doesn’t take

up the issue with Kabul

at the earliest Kinnow

export to Afghanistan will

be in shambles due to cost


The 80-metre, 3,200-deadweight tonne

ship will soon begin two years of

working trials during which it will be

fine-tuned to learn to manoeuvre on

its own.

The wheelhouse could disappear

altogether in “three, four or five years”,

said Holsether, once the vessel makes

its 7.5-nautical-mile trips on its own

with the aid of sensors.

On board the Yara Birkeland, the

traditional machine room has

been replaced by eight battery

compartments, giving the vessel a

capacity of 6.8 MWh -- sourced from

renewable hydroelectricity.

“That´s the equivalent of 100 Teslas,”

says Braaten.

The maritime sector, which is

responsible for almost three percent

of all man-made emissions, aims to

reduce its emissions by 40 percent by

2030 and 50 percent by 2050.



Shipping and insurance

By Capt. Anwar Shah

Banking and insurance

services play a vital

role in the economic

development of any

country. International

trade, commerce

and industry cannot

develop and function

without the key role of banking

and insurance. We can understand

how banking developed because it

provides the facility to make collective

investment in viable projects. But it

seems nobody is certain as to how

insurance came into this world.

However, most people now believe that

insurance originated from the needs of

the shipping world.

In early days when there was no

currency with universal acceptability,

trade was done on the basis of barter

exchange. In other words, traders

used to exchange goods according

to supply and demand. In those

days, the ship-owner was the

trader as he would collect goods

and go to another land for

profitable exchange. As he made

money and became rich, he did

not want to go to sea anymore

and employed a captain. However,

with the ship-owners off board,

they became keenly concerned

with the risks their ventures

faced in their absence. Some

people started taking bets on a

ship’s safe return. This allowed a

number of people to share the risk

and thereby encourage traders and

ship-owners to undertake more and

perhaps bigger business ventures. This

is how insurance provides the cover for

risk in any investment.

The industrial revolution along with

London and River Thames providing

natural harbor from rough seas and

piracy, galvanized its development as a

trading port, eventually becoming the

nucleus of maritime activities. Coffee

was first imported into Great Britain

in 1652 and soon became popular with

the elites. After the great fire of London

in 1666, the city started to re-build with

coffee shops in places where people

could transact business. Historical

records from 1688 for the first time

mentioned about Edward Lloyd’s

Coffee shop situated on Tower Street. It

was popular with traders, ship-owners

and captains returning from overseas


Edward rented out boxes in his

coffee shop for entrepreneurial

businessmen to conduct insurance or

risk undertaking contracts. One thing

that Mr. Lloyd noticed was that there

was a great demand for information

for assessment of risk. Lloyd’s Coffee

House started publishing daily

shipping news, informing people

about departures and arrivals, the

cargo aboard each ship and where

other country’s fleets were operating;

and where pirates were known to be

active. Thereafter Lloyd’s List was

first published in 1734 and the last

printed version was published on 25th

September 2013, with the electronic

version still continuing as one of the

world’s oldest newspapers.

It is essential for underwriters to know

about the operational and physical

condition of the vessel and whether it

Lloyd’s Coffee House started

publishing daily shipping news,

informing people about departures

and arrivals, the cargo aboard each

ship and where other country’s fleets

were operating; and where pirates were

known to be active. Thereafter Lloyd’s

List was first published in 1734 and

the last printed version was published

on 25th September 2013, with the

electronic version still continuing as

one of the world’s oldest newspapers.

is worth taking the risk. Underwriters

need to know details such as type of

ship, when and where it was built,

materials used in its construction,

when it was last docked and inspected,

etc. Lloyd hired the services of a few

ship-builders and engineers and the

Lloyd’s List gradually started to provide

such information as well. There was a

clear need from the insurance world

for an organization that was free of

any vested interest that could certify

the health of a ship as the doctor can

certify the health of a person. This

eventually led to the formation of the

Lloyd’s Register of Shipping, a nongovernment

organization not run for

profit but to serve the industry with

good advice and guidance, to enable

ships to meet the required standards.

Until this time Lloyd’s Coffee Shop was

the biggest facilitator and housed all


Nov - Dec - 2021

– ship-owners/brokers, underwriters,

classification society, Lloyd’s List and

all others connected with the business.

However, to exert its own freedom as a

non-partial independent organization

the Lloyd’s Classification Society had

to stand alone on its own and this

is precisely the reason why the two

businesses eventually separated out.

The insurance part of the business,

i.e., the ship-owners and their brokers

along with the underwriters were the

first to move out to Royal Exchange in

1774. The Lloyd’s Register, the society

for classification of ships moved out in

1786 to Lombard Street.

Today, the Lloyd’s Register of Ships is

situated on Fenchurch Street, London,

with offices and surveyors located

in major international business

and shipping hub cities across the

world. Over the years, it has earned

international reputation, trust

and confidence as an organization

dedicated to excellence,

performing its job of quality control

without any fear or influence and

not having any interest in loss or

profit for anyone. Underwriters

accept Lloyd’s Register reports as

the actual condition of the ship.

Lloyd’s House of Underwriters is

simply known as Lloyds and is

located at 1, Lime Street, London.

It may be argued that there is

no other insurance market that

conducts even half the business

that Lloyd’s deals with. However,

it must be understood that there

is no company known as Lloyd’s

Insurance Company. It is the business

house that provides all the facilities

for its members from both sides of the

industry to negotiate risk undertaking

business. It operates in the same way

as Lloyd’s Coffee Shop operated more

than 300 years ago, except that it is

now done under the law of the land as

the British Parliament gave the Lloyd’s

system and procedures the status of an

act of parliament.

With the passage of time, ship

operations became more hazardous

involving too many claims from too

many corners. Some of these claims run

into billions, especially those relating

to protection of marine environment

and removal of wrecks. No one shipowner

can pay those claims nor would

the insurance market like to give cover

to such unknown vast sums. The

ship-owners finally found their own


solution by forming mutual groups to

protect each other. These groups are

commonly known as Protection and

Indemnity (P&I) Clubs. These function

to protect and indemnify the owners/

members against any sudden claim

from third parties.

It is not unusual for a ship to be arrested

in port for not paying all claims on time

but it is also customary for the relevant

P&I Club to issue a bond or bank

guarantee for the vessel to get released

and continue its business while the

judicial process continues in court. The

P&I being mutual and not for profit, is

aimed at rescuing a member, facing

sudden and heavy losses, by collective/

additional contribution from other

members. Calls are subscribed

instead of paying premium. Similarly,

ships that are moth-balled or laid up

for period exceeding three months

may request for return of calls. The

principle on which it works is that no

engagement in voyages and ventures

mean no risk or hazard and as such 80

to 90 percent of the subscription may

be refundable.

An analysis of the history of the

development of financial services in

London shows that shipping was the

base for most other developments.

The systems and procedures were

developed by the industry itself.

To quote Lloyd’s CEO: “For more than

three centuries, the Lloyd’s market has

been sharing risk to protect people and

businesses, inspiring them to create a

braver world”.

Courtesy ( Business Recorder )

Boskalis to advance

emission-free shipping

A broader maritime consortium in

which Boskalis is participant has been

awarded a EUR 24 million grant to

conduct research into accelerating the

use of methanol as a low-carbon fuel

within the shipping industry. Methanol

can enable significant reductions

in CO2 emissions compared to

traditional fuels and is viewed within

the international maritime sector as

one of the most feasible ‘clean’ fuels for

large-scale adoption by the industry.

The program is entitled Methanol as

an Energy Step Towards Zero-Emission

Dutch Shipping and sponsored by

the Dutch Government’s Rijksdienst

Railways revenue increases

to Rs 48,651.7m

The revenue of Pakistan Railway has

increased from Rs 47,587.9 million in

2019-20 to Rs 48,651.7 million in 2020-

21, registering an increase of around Rs

1,063.8 million.

“Pakistan Railways has earned Rs

48,651.7 million during 2020-21 as

compared to Rs 47,587.9 million

during 2019-20,” an official in the

Ministry of Railways told media. The

official said the working expenses of

Pakistan Railways has also decreased

to Rs 95,883.8 million in 2020-21 as

compared to Rs 97,740.4 million in


Regarding the up-gradation of Main

Line-I, he said it was a flagship railway

infrastructure project under China

Pakistan Economic Corridor (CPEC)

which ECNEC approved on August

2020 at a rationalized cost of $6.806.

He said the project had been planned

to be executed in three packages while

preliminary design of the project had

been completed and a formal request

for the loan for package-I had been

conveyed to the Chinese side through

Economic Affairs Division (EAD).

voor Ondernemend Nederland

(Netherlands Enterprise Agency). The

research project aims to develop clean

energy technology with a high degree

of flexibility and broad applications

within the shipping industry, from

yacht building to offshore work

ships and high-powered dredgers.

The total research budget amounts

to approximately EUR 38 million

including a contribution from Boskalis.

The consortium, which includes ship

owners, yards, suppliers of specialist

maritime equipment and knowledge

institutions, will retrofit six different

vessel types to test the viability of

methanol fuel systems.

Peter Berdowski, CEO of Boskalis,

“Alternative fuel types are the most


Nov - Dec - 2021

New Gwadar Int’l Airport to

be operational by Sept 2023

The New Gwadar International Airport

(NGIA), the $ 246 m green field airport

being built at an area of 4,300 acres

would be operational by September

2023. According to an official source,

the passenger terminal building of the

project would be completed by June

2023; work related to air traffic control

by March 2023, while the overall

construction of the airport would be

finished before September 2023.

To be owned by a joint venture

between Pakistan, Oman, and China,

the airport would handle domestic and

international operations.

It was expected to stimulate the

development in Gwadar peninsula

and boost trade between Pakistan

and China. The airport would be

operated under open sky policy and

developed under the guidance of the

Civil Aviation Authority (CAA). The

NGIA project was initiated as an early

harvest high-priority project of the

CPEC programme in 2014.

significant driver

for developing a

more sustainable

m a r i t i m e

industry and

we continue to be at the forefront of

initiatives exploring the emissionreduction

potential presented by

methanol and other clean technologies.

This research program looking into the

use of methanol as a low-carbon fuel is

another important step along the road

to realizing net-zero objective.”

Boskalis is already part of a joint

industry project known as the Green

Maritime Methanol Consortium

which has previously investigated the

feasibility of methanol as a sustainable

fuel for the maritime sector.

The 7 th PMLS to be held

in Lahore, next year

Pakistan Tanners Association (PTA)

has started booking stalls for the 7th

Pakistan Mega Leather Show, to be

held from 28-30th January’2022 at Hall

# 1, in Lahore Int’l Expo Centre Lahore,


In 2021 this show could not be held

due to the spread of COVID.

The mega show would be jointly

organized by

all stakeholders

of the Leather

Sector of

Pakistan such as

Finished Leather

(Pakistan Tanners

Association -

URBANSOLE partnered with JANA Shoes

to manufacture and distribute in Pakistan

Urban Sole, a Leading shoe brand

in Pakistan, has signed MoU with

Jana shoes Gmb H&Co. KG Member

of the Wortmann group Germany, a

sole manufacturer and distributor

in Pakistan. The agreement will give

exclusive rights to Urbansole to

officially manufacture and distribute

Jana shoes across Pakistan.

The contract was signed between the

senior management from both sides

in a ceremony held in a local hotel in

Lahore. For more than two decades,

Urbansole has been leading the

footwear industry with its unmatched

quality and commitment to providing

the most comfortable shoe brand

in Pakistan. Urbansole has earned

the reputation of the leading stylish

shoe brand of Pakistan with extreme

comfort. It is the most popular brand of

youth because it offers contemporary


The CEO of Urban

sole Jawad Musaddiq,

while signing the

contract, said, “we

are keen to excel

our services in the

field of footwear by

focusing on comfort

PTA), Leather Footwear (Pakistan

Footwear Manufacturers Association

– PFMA), Leather Garments (Pakistan

Leather Garments Manufacturers &

Exporters Association – PLGMEA)

and Leather Gloves (Pakistan Leather

Gloves Manufacturers & Exporters

Association – PGMEA) with the

patronage of Government of Pakistan,

Trade Development Authority of


Leather/garments/footwear exports

Pakistan’s Federal Bureau of Statistics

(FBS) has released leather industry

export data for 04MFY22, reflecting a

growth of 14.23 % during this fourth

period of the ongoing financial year.

During the first four months of July-

Oct 2021/22, the leather industry

rose to $316.49 million from $277.04

million, earned in the corresponding

and making dayto-day

life easier

for consumers.

We believe that

no hurdle should come in the way of

achievers, and they must possess the

best footwear to walk their path of life.”

JANA shoes Managing Director

Michael Romberg has also endorsed

the statements and added, “both the

companies want a better experience

for their consumers providing them

a hassle-free and technologically

advanced experience.” Describing

the quality of Jana shoes, he told the

media that these shoes are made

up of recycled PET bottles, which is

the new and eco-friendly dimension

in footwear manufacturing that

results in feet comfort and a healthy


This agreement will be a gamechanging

partnership that will pave the

path for new standards in the footwear

industry. Urbansole will become the

only shoemaker which uses recycled

material to produce

high-quality shoes.

It’ll trigger healthy

competition among

local manufacture to

utilize environmentfriendly

raw materials

for shoe production.

months of 2020/21. This translates

to double-digit growth of 14.23% YoY


According to the FBS, tanners have

earned $61.85 million compared to

$43.60 million – representing a growth

of 41.84% during this period on a YoY


The leather manufacturing, including

the export of garments and leather

gloves, increased to $206.93 million

from $190.85 million in July – Oct

2020/21. This surge in trading

represents a rise of 8.43%.

On further positive development, the

footwear exports grew 12.02% in dollar

value in July - Oct 2020/21. During

this period, footwear export reached

$47.70 million against $42.58 million

in the same months last year.

Sri Lanka leather industry

earns $26.09 million

Sri Lanka’s Export Development Board

(EDB) has said the country’s leather

and footwear sectors earned export

revenues of $26.09 million in the first

ten months of 2021 (Jan – Oct 2021)

compared to $29.92 million in the

same months between Jan 2020 to Oct


This figure represents a decline of more

than 12.80 % year on year. According to

EDB, the export of footwear and leather

products was $ 139.56 million in 2016

and since then on decline trend.

From January to October 2021,

merchandise exports increased by

21.2% to $10,059.4 million compared

to the corresponding period of 2020,

following increased exports of almost

all the major product sectors; Apparel

& Textiles, Tea, Rubber-based products,

Coconut based products, Electronics

& Electronic Components, Spices

and Concentrates, Food & Beverages,

Seafood and Ornamental fish. The

leather industry shares stood at 0.26%

in total export during this period.



Pakistan’s first Shoe designers’

graduation ceremony in Lahore

Pakistan Footwear Manufacturer

Association (PFMA) organized

Pakistan’s first Shoe designers’

graduation ceremony in Lahore

after the first batch of Pakistan Shoe

Design Hub (PSDH) successfully

graduated from the institutions.

This studio has been developed with

the financial support of the World

Bank, Government of Pakistan in

collaboration with PISIC, CDI, UNIDO

and with the expertise of Italian

organizations, ASSOMA and PISIE. The

Indian leather industry

records growth of 57.93%

ceremony was followed by an

orientation seminar attended by

TVET Chairman Mr. Ali Salman

Siddique, Government senior

delegates and Chairman PFMA Mr

Zahid Hussain, and stakeholders to

update the development progress of

the Shoe manufacturing sector.

This design studio provides services

and training to footwear SMEs and

more prominent manufacturers in

Pakistan, intending to train local shoe

manufacturers to apply the latest

technological tools and techniques

in creating innovative designs of their



to make

them more


f o r


Bangladesh leather industry

earns $456.85 million

and national markets.

Nov - Dec - 2021

TVET Chairman Mr Ali Salman

Siddique, while attending the

ceremony, appreciated the PFMA

efforts in transforming the Shoe

industry in Pakistan. He further said,

“PSDH making a real difference in

creating a highly-skilled workforce

to bring our local Shoe industry at

par with international standards and

leading towards becoming the exportoriented

sector of Pakistan.

PFMA Chairman Mr Zahid Hussain

shared his gratitude for the TVET

chairman positive views. He added that

“PFMA continues its all efforts geared

towards “Made in Pakistan” vision by

enabling local producers to become

self-sufficient in terms of Technology

and Raw material and reduce reliance

on import.

Football exports surge 17pc

in 4MFY22

According to the Indian’s Council for

Leather Exports (CLE), export revenue

of leather and leather products during

the first five months of the ongoing

financial year i:e between April 2021

and Aug 2021 reached $1.831 billion

as against the performance of $1.159

billion in the same period last year. It

recorded a very significant growth of


The breakdown shows that the finished

leather exports rose in value by 59.83

% to $190.55 million from $119.22

million, leather footwear by 52.53 % to

$764.03 million from $ 505.23 million,

and leather garments by 42.48 % to

$138.06 million from $96.90 million

during this period. The leather goods

export also increased by 73.43 % to

$465.22 million from $268.19 million

during this export period. Similarly,

Saddlery and Harness export rose to

$105.92 million from $51.37 million,

reflecting a growth of 106.19%.

Footwear (Leather Footwear,

Footwear Components & Non-Leather

Footwear) holds the major share of

50.87% in the total export of leather

and leather products including Non -

Leather Footwear with an export value

of $931.60 million. This is followed

by Leather Goods & Accessories with

a share of 25.40 %, Finished Leather

10.40%, Leather Garments 7.54% and

Saddlery & Harness 5.78%.

The Bangladesh leather industry has

earned export revenue of US$456.85

million during the first five months,

July – November 2021, of the ongoing

fiscal year 2021-22, compared to

$358.57 million earned in the same

five months of the previous fiscal year.

It translates to rising growth of 27.41

% on a YoY basis, according to the

Bangladesh Export Promotion Bureau


The breakdown shows that Bangladesh

received $56.48 million on exports of

finished leather between July and Nov

compared to $43.86 million in July –

Nov 2020. It offers a growth of 28.77 %.

The exports of leather products have

also expanded to $121.16 million

during these five months from the

$87.87 million of the same months

of last year. It translates to an incline

of 37.89 per cent on a YoY basis. On

a more positive development, the

leather footwear exports grew 23.08%

to $279.20 million from $226.84 million

during this period.


Pakistan’s exports of football witnessed

a growth of 17 per cent in the first four

months of current fiscal year (4MFY22)

from a year ago, Commerce Adviser

Razak Dawood said recently.

A Ministry of Commerce official said

football exports reached $50.148

million between July and October 2021

as compared to $42.780m in the same

period in FY21. Mr Dawood said that

the exports of overall sports goods

increased by 21pc year-on-year to

$105.120m during 4MFY22 compared

to $87.070m last year.

The adviser also claimed that during

the month of November, Pakistan’s

overall exports had the fastest growth

rate in South Asia. “Our exports grew

by 33.5pc compared to Bangladesh’s

31.3pc and of India’s 26.5pc growth,”

he claimed.

This has been made possible by the

hard work of our exporters, the adviser

said, adding that they deserved praise

for this accomplishment.

Pakistan has planned new cement

capacities for Northern Zone

Pakistan five big cement manufacturers

are in the process to augment total

production capacity in North Zones,

targeting 73.60Mt by 2024 from 54.10Mt

of 2021 at an average annual growth

of 12 per cent to meet the expected

robust demands in Punjab and NPK

Provinces. In addition, to benefit

export opportunity in Afghanistan and

India thorough lands routes.

According to a report of AHCML

Research, the capacity may touch

a level of 54.20Mt in 2022, 57.90Mt

in 2023 and 73.60Mt in 2024. This

will occur if companies stick to their

expansion plan during these three


The North zones expansion plan

includes Lucky Cement 9.80Mt from

6.64Mt, Maple Leaf Cement 8.30Mt

from 5.87Mt, DGKC 7.40Mt from

4.20Mt, KOHT 11.60Mt from 5.30Mt

and Fauji Cement Company 5.60Mt

from 3.60Mt in 2021.

installing new cement plants

in the province recently.

Lucky Cement

It announced brownfield expansion

of 3.15 MTPA at our Pezu Plant in

KPK to increase production capacity

to 15 Mtpa maintains its position

as the largest cement producer in

Pakistan. Project groundbreaking has

commenced, and the completion

target is December 2022.

Maple Leaf Cement (MLCF)

The Company has also announced a

brownfield expansion that will help

it increase its future market share by

2.43Mta. The most practical aspect of

the new development for MLCF is that

about 60 per cent of total debt will be

financed from TERF and LTFF. Hence,

it is relatively less exposed to a shock

from higher interest rates.

project is Rs1.2bn and will be financed

through a combination of debt and


Fauji Cement Company (FCCL)

The Company has also announced a

greenfield expansion of 2.05Mt at DG

Khan (Punjab). The Company may

potentially become the third largest

cement player in the country with over

8Mt in annual capacity after the COD

of the new plant.

More expansion in the pipeline

Attock Cement Pakistan (ACPL)

It announced a cement expansion

of 4,250tpd, which is expected to

come online by 1QFY23. The total

cost of development is estimated to

be Rs15bn and will be financed with

a combination of debt and equity.

The Solar plant of 20MW is expected

to come online by 2QFY22, reducing

power costs.

Gharibwal Cement Limited (GWCL)

Two research houses - IMS Research

and AL Habib Capital Markets have

stated that the Pakistan cement

industry concentrates in the

Northern Zone because of upcoming

big infrastructure projects. A big

plus point is the availability of soft

loans. The LUCK, MLCF, FCCL and

KOHC have obtained loans with a

concessionary rate under the central

bank’s Temporary Economic Refinance

Facility (TERF) and Long Term

Financing Facility (LTFF). It would

cover at least 30 per cent of the project

cost – thereby hedging against higher

interest rates for plant & machinery.

Punjab government pressure

The Punjab government had asked

the cement manufacturers that “No

Objection Certificates (NOCs)” issued

for installing the cement plants in the

province could be cancelled if they

failed to initiate the projects at the

earliest. The Punjab Industry issued

the warning, Commerce and Trade

Minister Mian Aslam Iqbal chairing a

review meeting of the NOCs given for

D.G. Khan Cement Company (DGKC)

The Company has announced in a

financial briefing that it put a hold on

expansions for now, and the priority is

to retire the debt and management as

it is expecting to retire PKR 6bn during


Kohat Cement Company (KOHC)

The Company’s upcoming 8000-

10,000tpd greenfield project is

estimated to cost Rs25bn, of which

Rs10bn will be financed through

internally generated equity while the

rest Rs15bn will be funded through

debt. The plant is expected to

commence COD in FY24. The Company

is also working on optimizing the pyro

process of line-3, which will reduce

fuel & power costs. The total cost of the


The Company has announced an

expansion of 3Mta. A contract has been

signed with FL Smidth for the supply of

the Pyro. FLS cost is estimated at PKR

2bn for design and engineering, and

the remainder has not been finalized

yet (roughly, the equipment could cost

PKR 8-10bn). Equity debt has not been

completed yet. TERF has not been

availed for this line. Civil works for the

project will commence soon, and the

project timeline is two years. Shipment

will start arriving at the end of FY22.

Pioneer Cement Limited (PIOC)

The further plant expansion is under

evaluation, but debt reduction is the

primary focus at the moment, with

the Company set to retire Rs 4.5 billion

long term debt in the FY22. Expansion

evaluation incorporates the choice

of location where the Company can

either buy land at an existing site or

look for alternate sites. The Company

has already received approval for the

plant in DG Khan.

( A Chronicle Report )


Pakistan’s domestic dispatches grow,

but exports declined in November 2021

According to the data released by the

All Pakistan Cement Manufacturers

Association (APCMA), local cement

dispatches during November 2021

were 4.124Mt compared to 3.742Mt in

November 2020, showing an increase

of 10.21 per cent growth YoY. But,

exports dispatches suffered a decline

Pakistani cement exporters

face several challenges

The exports of cement and clinker from

Pakistan have been affected by several

factors, including a change in political

set-up in Afghanistan, the persistent

deadlock in trade between Islamabad

and Delhi, anti-dumping duties, and

the financial crunch in Sri Lanka,

according to Inayat Ullah Niazi, CFO

of DG Khan Cement. DG Khan exports

its products to Afghanistan, Kenya,

Madagascar, Maldives, Mozambique,

Seychelles, Sri Lanka and Tanzania.

As a result total cement exports

declined by 40.4 per cent to 2.157Mt

in July-October 2021 from 3.617Mt

in July-October 2020. The cement

Pakistan registers mixed

exports and production trends

during 05MFY22/04MFY22

Pakistan cement/clinker export

and production saw a mixed trend

between July 2021 and November

2021, and 04MFY22. According to a

research house, exports observed a

negative trend on a cumulative basis

driven mainly by the political crisis in

Afghanistan as exports from the north

reportedly remained disturbed. On

the other hand, exports from southern

plants posted nominal growth.

Exports in 05MFY21-22

Pakistan’s cement industry earned

US$115.99m of export revenue by

by 9.2 per cent as the

volumes reduced from

766,273t to 695,779t

during this period.

In November 2021, North-based

cement mills dispatched 3.469Mt of

cement in domestic markets, showing

an increase of 10.87 per cent against

3.129 million tons dispatches in

November 2020. The South-based

mills shipped 654,983t cement in

local markets during November 2021,

which was 6.83 per cent higher than

the dispatches of 613,113t during

November 2020.

Exports from North based mills

massively declined by 69.67 per

cent as the quantities reduced from

182,091t in November 2020 to 55,234t

in November 2021. Exports from the

export price is hovering at US$48-50/t

while the clinker export price ranges

between US$38-40/t, he added.

While the Afghan market is currently

completely frozen, any activity there

could also present an incredible

opportunity. In addition, cement

exports to India have not yet resumed

due to higher duty levied by India a few

dispatching 3.20Mt of cement and

clinker overseas in 05MFY21-22,

compared to US$123.67m from

3.73Mt of exports in the year-ago

period. The export figures represent

some downfall of 6.21 per cent and

14.621 per cent in dollar terms and

quantity, respectively. In local currency

terms, the export observed a fall of 3.48

to PKR19.64bn (US$ 115.99m) from

PKR20.35 bn during this export period.

While, in November 2021 alone, export

revenues surprisingly jumped to

US$50.54m on the shipment of 1.40Mt

from US$10.24m on the export of

248,833t cement and clinker exports in

October 2021. This translates to export

expanded by 393.14 per cent and

462.68 per cent on account of value

and quantity, respectively, on an MoM

Nov - Dec - 2021

South increased by 9.65 per cent to

640,545t in November 2021 from

584,182t during the same month last


Cumulative dispatches in 05MFY22

During the first five months of the

current fiscal year (05MF22), total

cement dispatches (domestic and

exports) were 22.86Mt that calculates

to 4.11 per cent lower than 23.83Mt

dispatched during the corresponding

period of last fiscal year. Further

analyses indicate that domestic uptake

of the commodity slightly increased

by 2.84 per cent to 20.007Mt from

19.455Mt during July-November 2020.

In contrast, exports during the same

period declined by a massive 34.92 per

cent to 2.853Mt from 4.384Mt during

July-November 2020.

years ago.

Anti-dumping duty of 68 per cent on

Pakistani cement placed by South

Africa did not solve the African

country’s import issue as Vietnam

started exporting there. The five-year

period is over, but the ban has still

not been lifted. However, the DGKC

management is optimistic.

Sri Lanka has a cement shortage as

prices were fixed (maximum MRP),

so imports had stopped. Now there

is a deficit, but the Sri Lankan central

bank does not have US dollars and

therefore, letters of credits have not

been opened yet. However, DGKC

management expects good prospects

in the medium- to long term.

basis. Similarly, in the comparison

period of November 2020, when

exports stood at US$18.10m on the

shipments of 498,091t of commodities,

exports raised by 178.79 per cent in

value and 181.10 per cent in quantity


Production in 04MFY22

During four months of July to October

20221, Pakistan’s cement production

decreased by 2.74 per cent, YoY to

15.982Mt compared to 16.433Mt a

year earlier. On more negatively, a

southward trend in cement production

was observed in Oct 2021 alone, when

production slid by 15.57 per cent to

4.479Mt versus 5.123Mt in the same

month last year. ( A Chronicle Report )



Nov - Dec - 2021

Tariq to head PAF’s public

relations wing

The Pakistan Air Force

has named Air Vice

Marshal Tariq Zia as

the head of its public

relations wing — the

first time for a two-star

general to hold this


“Air Vice Marshal Tariq Zia has

been appointed as director general

public relations (Air Force),” the PAF

announced. AVM Zia would also be

PAF’s spokesman.

Prior to his new posting, he was

serving as director general warfare &

strategy at the Air Headquarters. He

is a graduate of PAF Air War College,

Faisal, and Royal College of Defence

Studies (RCDS), UK. PAF said AVM

Zia had been awarded Sitara-i-

Imtiaz (Military) in recognition of his

“meritorious services and meticulous


Aamir Ahsan Khan

named Country Manager

of Ericsson Pakistan

Ericsson announced

the appointment of

Aamir Ahsan Khan

as Country Manager

of Ericsson Pakistan.

Having joined

Ericsson 14 years

ago, Aamir brings

forward progressive and professional

experience in information technology,

telecommunication, and management,

with a proven record of increasing

business through relationship-based

client management and streamlined


“I am thrilled to lead Ericsson Pakistan

during such an exciting time when

connectivity is transforming industries

and helping us reimagine the

possible,” said Aamir. “In my capacity

as Country Manager, I aspire to build

strong strategies that will not only

innovate our current client offerings,

but grow Ericsson’s regional business,

and support the digital transformation

momentum in the country.

Wasif Memon made SRB


Sindh government

has appointed Dr

Wasif Ali Memon

as Chairman Sindh

Revenue Board (SRB).

According to the

SRB, Dr Wasif Ali was

already working in SRB as a Senior


Prior to this assignment, he had served

as an officer of Pakistan Custom

Services for thirty one (31) years in

various capacities including Chief

Collector and Director General.

His contribution at SRB in the capacity

of a Senior Member (Legal, Audit and

IT) is worth mentioning as he expedited

the process of effective litigation

management, risk-based audit system

besides introducing innovations in

digitalization of the board.

Waqar Siddiqui to lead Shell

business in Pakistan

Waqar Siddiqui has

been appointed as

the Chief Executive &

Managing Director of

Shell Pakistan Limited

(SPL) with effect from

November 01, 2021.

Waqar joined SPL in 2001 and has

since held several roles locally and

internationally at senior leadership

positions. In his 24 years of oil

downstream experience, he has

successfully guided Shell companies

through organizational change, strategy

development, mergers/acquisitions

and achieving consistent performance

delivery. His last role before returning

to Pakistan was Managing Director of

Shell Downstream Retail in PT Shell

Indonesia. Waqar has been a Director

on the Board of SPL since 2019.

Waqar holds a BS degree in Chemical

Engineering and MBA in Marketing.

In addition, he holds academic

and professional accreditations

from Harvard Business School and

University of British Columbia.


CPNE office-bearers


Kazim Khan was

elected President

of the Council of

Pakistan Newspaper

Editors (CPNE) in

the polls held during

the meeting of its

standing committee

in Lahore recently.

Amir Mahmood was elected Secretary

General while Ayaz Khan was elected

Senior Vice President and Yousuf

Nizami was elected Deputy Secretary


PBA elects new officebearers

Pakistan Broadcasters Association

(PBA) held its Annual General Meeting

in Karachi recently. Majority of

members from TV and Radio category

were present at the meeting.


Mian Amir


In addition to

the permanent

b o a r d


the following

three TV

members were

elected by the

general body

as directors

in the elected

m e m b e r


namely Syed Mohsin Raza Naqvi (City

24), Ch Abdul Rahman (Neo TV) and

Ghulam Nabi Morai (Mehran TV).

Thereafter the Board meeting was

convened and the board elected the

following new office bearers of PBA for

the year 2021-2022: Chairman, Mian

Amir Mehmood (Dunya TV), Senior

Vice Chairman, Salman Iqbal (ARY),

Vice Chairman, Mir Ibrahim Rahman

(Geo TV), Secretary General, Shakeel

Masud Hussain (Dawn News), Joint

Secretary, Ahmed A. Zuberi (Ajj TV),

Finance Secretary, Muhammad Athar

Kazi (KTN).

All the office bearers were elected



Pharmaceutical exports can

beat textiles: Ismail

Pharmaceutical exports can outstrip

textiles if provided required

incentives, said Sindh Governor

Imran Ismail.

Billions of dollar worth of

medicines are exported from

Pakistan and it could be more

than textiles with due efforts, he

after inaugurating three-day Pak

Pharma and Healthcare Exhibition

at Karachi Expo Centre recently.

Governor Ismail visited various

stalls of the exhibition and

Rice exports cross $2bn mark

Chairman Rice Exporters Association

of Pakistan Ali Hussam Asghar recently

said that rice exports have crossed

two billion dollars. He said this while

talking to the delegation of the Lahore

Economic Journalists Association.

Former chairman REAP Shehzad Ali

Malik, president LEJA Muhammad

Sudhir Chaudhry and president

Agriculture Journalists Association

Muhammad Luqman was also present

on the occasion. Ali Hussam said that

last year more than 3.6 million tons

were exported. He said 700, 000 tons of

Dr. Zeelaf Munir, of

English Biscuit becomes

Chairperson of the PAS

Dr. Zeelaf Munir,

CEO and Managing

Director of

English Biscuit


was elected as

the Chairperson

of the Pakistan

Advertisers Society

(PAS), during 24th

Annual General Body Meeting, held in

Karachi recently.

The AGM also marked the end of twoyear

tenure of the current Council and

talked to exhibitors. He assured the

pharmaceutical industry that all their

problems, including export matter

would be resolved amicably, asserting

Basmati rice were exported while

2.9 million tons of Non-Basnati

rice were exported. He also told

that more than rice worth export 280

million were exported in August.

Ali said REAP’s slogan is “Grow

More export more”. He called for

mechanizing the rice sector. He also

said the government should provide

harvesters to rice farmers on subsidy.

He said that Pakistan benefited a lot

from the ban on Indian exports.

He further said that Pakistani rice

exports increased from 1,50,000 metric

tons to 3,00,000 metric tons. He called

the Office Bearers. The elections for

the new council were also part of the

proceedings. She is the first woman

to hold this position. She said “I am

honoured and proud to be nominated

as the first woman Chair of the Society.

I strongly believe in the cause and the

role marketing and marketers can play

for a sustainable future that is diverse,

equitable and inclusive, which will be

our area of focus in 2022 and onwards

along with some meaningful initiatives

for the fraternity.

I thank all my council members for

putting their trust and faith in my

leadership and hope to deliver on

their expectations to the best of my

ability”. Khalid Farid, CEO Gillette/

CCO P&G was elected as the Vice Chair

Nov - Dec - 2021

that the development of this industry

was also the vision of the Prime

Minister Imran Khan.

“At present pharmaceutical

exports stand at $300 billion,

which could increase further,” he

said. The governor said that Ehsaas

Health Card is an unprecedented

program as those people who

could not even buy a medicine

were now getting free and quality

treatment facility.

Ismail said that the law banning

big pharmaceutical companies

giving benefits to doctors is an

appreciable step. It will benefit

patients, he added.

for enhancing industry-academia

linkages. He said that REAP has already

announced a prize of Rs 10 million for

inventing a new variety having more

per acre yield.

and Farheen Salman, CEO, Ekaterra – A

Unilever Tea Company was nominated

as the General Secretary of the Society.

In addition, for specific initiatives,

Asif Aziz, Chief Commercial Officer

of Jazz and the outgoing Chairman of

PAS, was nominated as the Chair of

the Govt. Relations Committee, while

Faisal Rana, Director Marketing and

Communication, Nestle Pakistan was

nominated as the Chair of the newly

formed Regional Committee.

Other representative members of

the newly elected Executive Council

include Ahmed Wahab Shah -The

Coca Cola Co., Asiam Haq – Unilever

Pakistan, Hassaan Serwani-PEL,

Humayun Farooq-Reckitt Benckiser,

Humayun Shaikh – Shan Foods,

Khurram Koraishy

– AlKaram Studio,

Nauman Khan –

Dabur, Sheikh Adil

Hussain-Tapal Tea

and Syed Usman

Qaiser – Jubilee Life




Shahzad Khan Bangash appointed

new KP Chief Secretary

Dr Shahzad Khan

Bangash has been

appointed as the

Chief Secretary of

Khyber Pakhtunkhwa,

replacing Dr Kazim

Niaz, who has

been posted as the

federal secretary water resources

division, a notification issued by the

Establishment Division, Islamabad,

said. Mr Bangash was serving as federal

secretary water resources division

Shahab Sarki elected as

SHCBA President

Shahab Sarki

advocate was

elected as the

President of the

Sindh High Court

Bar Association

(SHCBA) for

2021-2022 in an

election held


According to the

unofficial results announced recently,

Sarki secured 1536 votes while his

opposing candidates Zia Ahmed Awan

received 917 votes and Mohammad

Zubair obtained 166 votes.

With as many as 1015 votes, Shazia

Tasleem was elected as the vice

president of the bar association.

Junaid W Zuberi joins


National Academy

of Performing Arts

(NAPA) Karachi

has announced the

appointment of Junaid

W Zuberi as its new

Chief Executive Officer.

With an MBA from Institute of Business

Administration (IBA) Karachi in 1994,

Junaid W. Zuberi has actively remained

associated with Tehzeeb Foundation,

Citizens Foundation, Tehrik-e-Niswan,

Sampurna and Karachi Relief Trust in

voluntary capacity.

He has a keen interest in music,

poetry and history. Junaid W Zuberi

assumed the office of CEO NAPA on 1st

November, 2021.

before his return to his native


He has previously served as

chief secretary AJK, DG Immigration

and Passport in the ministry of interior

as well as additional chief secretary,

planning and development, Khyber

Pakhtunkhwa. Born in Behzadi

Chakarkot, Kohat, Mr Bangash went

to school in his home district and

Peshawar, did his matriculation

from Cadet College, Kohat, FSc from

Edwardes College, Peshawar, and

MBBS from Khyber Medical College,

Peshawar, in 1988/89.

Ahsan Bhoon elected SCBA


Ahsan Bhoon of the Asma Jahangir

Group has won the seat of President

of the Supreme Court Bar Association

(SCBA) 2021-22, with a big margin.

Bhoon polled 1,548 votes against his

rival Sardar Latif Khan Khosa of the

Hamid Khan-led Professional Group.

Senior PPP leader Khosa managed

to get 920 votes. Under the rotation

policy, this year president’s seat was

given to Punjab.

Dr Saif Uddin Jonejo assumes

charge as EPZA Chairman

Newly appointed Chairman EPZA,

Dr Saif Uddin Jonejo held a detailed

meeting with the management of

Export Processing Zones Authority

(EPZA) upon assuming the charge of

the Authority.


Nov - Dec - 2021

Covid-19: SSGC’s

contribution acknowledged

SSGC has been conferred with a token

of appreciation for its role in controlling

Covid-19 pandemic. The Company’s

contribution was acknowledged in an

impressive ceremony organized by

Health and Nutrition Development

Society (HANDS) Pakistan, United

Nations Office for the Coordination of

the Humanitarian Affairs (UNOCHA),

in collaboration with the International

Organization for Migration (IOM) at a

local hotel.

Choice Ufuoma Okoro, Head of Office

for the Coordination of Humanitarian

Affairs at the UN, graced the

occasion. She presented the token of

appreciation to Salman A. Siddiqui,

Head of corporate communications,

who received it on behalf of SSGC.

A number of other corporate sector

entities were also presented with

tokens of appreciation on the occasion

for their respective roles in stemming

the menace of Covid-19. Throughout

the Covid-19 episode, SSGC provided

relevant support on government and

NGO level to help the affectees of the


Dr Saif Uddin Jonejo is a civil

servant from Pakistan Customs

Service. He has served in different

capacities in Govt i.e Chief Collector

of Customs Enforcement- South

Sindh/ Balochistan Collector Customs

Exports Port Qasim, Collector Customs

MCC Gwadar, Collector Customs MCC

Preventive at Custom House Karachi,

Collector Customs Quetta, Collector







/ Consul

General of



China &

other key


Agha Steel new plant will

come online in Jun’22

According to the management of

Agha Steel Industry Limited (AGHA)

its new plant will come online in

Jun’22. Most equipment for MI. DA

has been imported but could not be

installed due to COVID restrictions.

The estimated cost has been around

PKR 1.2bn.

It is said that Current scrap prices are

USD 425-450/ton (DRI)

and USD 550-560/ton

(other scrap).

Meanwhile AGHA is

working on containing

its energy costs so it can

Amreli Steel Q1 profit

jumps 534pc

Amreli Steel Limited (ASTL) profit

jumped 534 percent to Rs701.855

million with EPS of Rs2.36 during the

quarter ended September 30, 2021, a

bourse filing said.

ASTL earned Rs110.625 million with

EPS of Re0.37 during the same quarter

last year. Cash dividend was not

announced. Analyst Muqeet Naeem of

Ismail Iqbal Securities in his note said,

“The result is above our estimate of

International Steel posts

Rs2.688bln Q1 profit

International Steels Limited net profit

spiked 377 percent to Rs2.668 billion

with EPS of Rs6.13 during the quarter

ended September 30, 2021, a bourse

filing said.

It earned Rs559.110 million with EPS

of Rs1.29 during the same quarter last

year. The company did not announce

any cash dividend for Q1FY22.

Analyst Muhammad Ali of Insight

Securities in his note said the result was

above expectations. Net sales stood at

Rs24.4 billion (up 56.3 percent/29.7

percent YoY/QoQ), increase was

“primarily attributable to recuperating

economic activity and elevated flat

steel prices in domestic/international


become an exporter of steel. Also

looking to tender for a 3-3.5MW solar

plant in upcoming plants.

Gaddani is back to operating at its

maximum capacity of 1mn tons. It has

also started supplying scrap (15%) to

the local industry, to small re-rollers,

due to extremely high imported scrap

prices. However, while these players

save 3-4% in costs, the ship supply is

getting tight amid very high freight


AGHA is looking at other

segments (wire rods etc.)

and will announce once


Courtesy ( AHL Research )

EPS: Rs1.29/share, where the deviation

largely stemmed from higher than

estimated gross margins.”

Topline arrived at Rs11.844 billion,

which the analyst said was in line with

estimates, “but largely flat QoQ where

the likely fall in sales volumes would

have been offset by the rise in rebar

prices (+18.8 percent)”.

In a corporate briefing recently, the

company said scrap prices have gone

up to $532/tonne in Q1FY22 from

$296/tonne in Q1FY21, whereas it was

$444/tonne in Q4FY21.

Gross profit for the quarter clocked

in at Rs4.35 billion (gross margin:

17.7 percent) vs Rs1.39 billion (gross

margin: 8.88 percent) in the same

period last year.

Selling and distribution stood at

Rs179 million (down 10.8 percent/59.8

percent YoY/QoQ) while other

operating charges were also down by

58 percent QoQ due to higher base

in the previous quarter (substantial

impairment on PPE and exchange



Steel policy to be announced

soon: Minister

Federal Minister for Industries and

Production Makhdum Khusro Bakhtyar

has said that a comprehensive steel

policy would be announced soon with

active consultation of stakeholders

of the steel sector for which a twomember

team had been nominated

from the Pakistan Association of Large

Steel Producers (PALSP).

Mr Bakhtyar expressed these views

while presiding over a consultative

meeting on the country’s steel policy

with leading steel industry tycoons

at the office of Pakistan Industrial

Development Corpo ration (PIDC).

He was accompanied by PIDC CEO

Rizwan Bhatti. He said that once the

policy was finalised, it would help

the government resolve all issues

being faced by steel industry owners.

He asked them to extend all kinds of

support in drafting the comprehensive

policy as suggestions of all stakeholders

would be incorporated in the policy.

The Minister further informed

the industrialists involved in the

steel production that the federal

government was planning to develop

approximately 7,500 acres of land in

Pakistan Steel Mills area as clusterbased

Special Economic Zones

through PIDC. He asked the steel

sector participants to explore jointly

putting up Captive Power Plant in that

project to meet their power needs at

possibly lower cost.

“The first phase of the upcoming

project on 1,500 acres, for which

government has allocated Rs7

billion PSDP funding, will allow the

government land to be allotted on a

low upfront cost for industries with the

remaining payments to be made in 5 to

7 years in easy installments on a payas-you-earn

model,” the Minister said.

Special Report on

Shoaib made acting

President, of MCB Bank

Shoaib Mumtaz has

been appointed

acting President

and Chief Executive

Officer (CEO) of

MCB Bank Limited

with effect from

December 21, 2021.

According to a notice sent to Pakistan

Stock Exchange recently, the Board

of Directors of the MCB Bank in its

meeting held on December 8, 2021 has

approved the appointment of Shoaib

Mumtaz as acting president and CEO

of the bank effective from December

21, 2021.

The existing term of three years of

Imran Maqbool, as President and Chief

Executive Officer of MCB Bank Limited

will expire on December 20, 2021.

The Board has also placed on record its

appreciation for valuable contribution

and the services rendered by the

outgoing President and CEO, Imran

Maqbool on completion of his term

on December 20, 2021 and wished him

luck for his future endeavors.

Bakhtiari takes charge as

Silkbank President

President and

CEO of Silkbank

Limited Shahram

Raza Bakhtiari

recently took

charge of his


Shahram Raza

comes with

a diversified

experience of

over 32 years working at leadership

positions for Silkbank, Standard

Chartered Bank, Union Bank And TCS

Group primarily in Retail Consumer

Business, Branch Banking, SME

Lending & Marketing Divisions.

He has demonstrated strong capability

by setting up the most profitable Retail

& Consumer Banking Business of

Silkbank, says a press release.

A review on Pakistan’s Banking Sector

By Dr. Muhammad Nawaz Iqbal

Banking Sector of Pakistan plays a

pivotal role in national economy. Like

other countries, Pakistan Banking

Sector also divided into three domains

including retail banking, commercial

banking and investment banking. In

fiscal year 2020, the overall increase

in profitability by 30.7% and 37.6%

respectively for both conventional and

Islamic banking.

Despite pandemic situation

around the globe, Pakistan’s

banking sector stability justified

its credibility to national

economy. Volatile economic

situation is the

most common

challenge for

banking industry

of Pakistan.

Pakistan Banking

Sector contains

Commercial Banks,

Foreign Banks,

Islamic Banks,

Development Financial Institutions

and Microfinance Banks. The industry

comprises around 31 banks of which

five are public area banks, 22 are

private banks and 4 are foreign banks.

As of Sep, 2020, foundation of IBI

in Pakistan comprise of 22 Islamic

financial establishments (IBIs); 5

undeniable Islamic banks (IBs) and 17

Brief on Insurance Companies

The Insurance Association of Pakistan

(IAP), established in 1948, is a

dynamic and vision-driven body that

represents the insurance industry

of Pakistan and voices the mandate

of its member companies at various

levels—representing both life and

non-life insurance/takaful companies

that written about 391 billion worth of

premium in 2020.

IAP members collectively contribute

to approximately 95% of life and nonlife

insurance premiums/contribution

in the private and public sectors.

Out of its stronghold of 39 member

companies, 28 companies transact

non-life insurance business, 7 transact

ordinary banks having

independent Islamic

financial branches


The resources of the Islamic Bank

industry expanded to 4,269 billion

Pakistani rupees ($27.50 billion),

while stores arrived at 3,389 billion

rupees ($21.3 billion) before the finish

of December 2020. In the fiscal year

2021, the deposit of Pakistan’s banking

industry touches 22 % due to increase

in remittances growth.

Progresses developed by 10%

as of June-end to reach at Rs9

trillion ($56 billion) as banks

stayed exhausted of generally

speaking financial

conditions because

of COVID-19.


development of

5% quarter-onquarter

in banks’

loaning is a sign for

further developing

viewpoint. The

financial area

profit kept on collecting on the rear of

sound profits from developing supplies

of hazard free government protections.

Moreover, the lower arrangements

additionally contributed towards

development of benefits. The

monetary area in Pakistan is going

through a significant progress period.

life insurance business, 3 takaful

operator, one a state-owned

reinsurer (PRCL) in Pakistan.

According to IAP Year Book 2020-21,

which contains valuable data and

analysis of the insurance industry

in Pakistan, the premium income

of its eight life insurance and family

Takaful members, including State Life

Insurance Corporation in 2020, grew

by around 6% to reach Rs. 231 billion.

On the other hand, the premium

income of the 30 non-life members

was Rs. 102 billion, recording a growth

of 8%. Our other member, PRCL, the

only reinsurer in Pakistan, recorded a

premium of Rs. 17 billion, a decline of

6% as compared to the corresponding

period last year.

( A Chronicle note )



History of Islamic Banking

in Pakistan

Pakistan got independence in 1947

and the Quaid-e-Azam Muhammad Ali

Jinnah, in his speech on the occasion of

inauguration of State Bank of Pakistan

on 1st July 1948, aspired to build the

economic and financial system of

country in line with injunctions of

Islam. He said, “I shall watch with

keenness the work of your Research

Organization in evolving banking

practices compatible with Islamic

ideas of social and economic life….

The adoption of Western economic

theory and practice will not help us in

achieving our goal of creating a happy

and contented people. We must work

our destiny in our own way and present

to the world an economic system based

on true Islamic concept of equality of

manhood and social justice. We will

thereby be fulfilling our mission as

Muslims and giving to humanity the

message of peace which alone can save

and secure the welfare, happiness and

prosperity of mankind. ”

Initially, the research on Islamic

finance was undertaken by the eminent

Shariah scholars both from abroad

and Pakistan. An Islamic Economic

Division was created in the Research

Department of SBP in 1950s and was

entrusted to undertake research on

Islamic economic system and it also

as a secretariat to Council of Islamic

Ideology (CII). Efforts for economy

wide elimination of Riba started in

late 1970s and several noteworthy

and practical steps were taken in

1980s. Numerous laws were amended

Pak-Qatar General Takaful signs

agreement with Hifazah

Pak-Qatar General Takaful Limited

(PQGTL) came into an agreement

with, a brand of Hifazah

Technologies Private Limited (HTPL)

to promote Takaful products through

digital medium.

Muhammad Raza (Head of

Operations, PQGTL) and Mr. Aboo

Baker Mohammedi (Founder and

CEO, HTPL) signed the agreement

along with senior officials of both


While expressing his views at

the signing ceremony, Mr. Saqib

Zeeshan (DCEO, PQGTL) said,

and new laws were enacted

to facilitate Islamization of

economy during this period

in which State Bank played

a major role. In a technical

sense it was the most

advanced model compared

to any other model being

practiced anywhere in the

world at that time.

However, the financing

procedure based on ‘mark-up’

practiced by banks was declared un-

Islamic by the Federal Shariat Court

(FSC) in November 1991 but on appeal

to the Shariat Appellate Bench of

Supreme Court the 1991 FSC ruling

was suspended till orders of the court.

The Supreme Court’s Shariat Appellate

Bench delivered its judgment in

December 1999 with the directions that

laws involving interest would cease to

have effect by June 30, 2001 and later

the date was extended to June 30, 2002.

However, on a review petition filed by

a bank, Shariat Bench of the Supreme

Court set aside the previous verdicts on

Riba in June 2002 and remanded back

the case to Federal Shariat Court for

hearing afresh.

In the mean time, the government

decided to promote Islamic banking

in a gradual manner as a parallel and

compatible system. The initiative to reintroduce

Islamic Banking in Pakistan

was launched in early 2000 to shift

to interest free economy through a

market driven and flexible approach,

in a phased manner without causing

any disruptions. Furthermore it aims

at building a broad based financial

system in the country to enable all

“We are delighted to sign

agreement with Hifazah

Technologies Private Limited

as this will benefit customers

from choosing Shariah compliant

Takaful coverage with ease and upon

competitive rates. On the other hand,

this partnership will further enhance

Nov - Dec - 2021

segments of the population to access

financial services. In this context SBP

adopted a three pronged strategy for

promotion of Islamic Banking i.e.

• Permission to establish new full

fledged Islamic banks in the private


• Permission to the conventional banks

to set up Islamic banking subsidiaries,


• Permission to the existing

conventional banks to open Standalone

Islamic banking branches.

A comprehensive regulatory framework

including Shariah Governance

framework has been introduced for

the development of Islamic banking

industry on sound footings. SBP

has also been collaborating with

local and international financial

regulators and infrastructure

development institutions to promote

standardization and harmonization

in regulatory framework in line

with international best practices, to

facilitate the development of Islamic

financial services industry locally and


our reach and help us spread awareness

about Takaful products to the masses

accessing digital platforms.”

Aboo Baker during the signing

ceremony commented: “Hifazah was

created with a vision to enable the

public to opt for Takaful (An Alternate

to Conventional Insurance)

coverage with confidence,

transparency and ease through

technology. This platform aims to

increase penetration of Takaful via

strategic partnerships and vertical

diversification, and to make the

customer journey convenient.” He

further said that he is quite hopeful

that this new strategic partnership

will bring fruitful results in near




Meezan Bank-led consortium signs Rs25.5bln

syndicated project finance facility

Meezan Bank-led consortium and

Enertech Water Private Limited, have

inked Rs25.5 billion Islamic syndicated

project finance facility structured

under a public-private partnership, a

statement said recently.

The facility will be utilised for the

development of a 45 cusec water supply

project from


to Vajihar


two large water reservoirs and 65km

pipeline in Thar, Sindh.

The mandated lead advisors and

arrangers for the facility are Habib

Bank Limited, United Bank Limited,

Meezan Bank Limited, Bank Alfalah

Limited and Pak Kuwait Investment

Company (Private) Limited.

Nov - Dec - 2021

The other participating financial

institutions are National Bank of

Pakistan, MCB Bank Limited, Faysal

Bank Limited, The Bank of Punjab,

Bank Islami Limited and Pak China

Investment Company Limited. The

transaction is being led by Meezan

Bank in the capacity of investment

agent, security agent, accounts bank

and Shariah structuring bank.

Tarin meets bankers and

discussed issues

Shaukat Tarin, Advisor to the Prime

Minister on Finance and Revenue,

visited the office of Pakistan Banks’

Association (PBA) in Karachi, and met

its Executive Committee. Muhammad

Aurangzeb, Chairman, PBA, and Tawfiq

Hussain, CEO & Secretary General,

Babar Azam visited

Bank Alfalah

The Captain of Pakistan Cricket Team,

Babar Azam visited Bank Alfalah

to meet the President and senior

management of the institution. Bank

Alfalah has recently signed Babar Azam

as a brand ambassador to support the

PBA, welcomed the Advisor to PBA.

Tarin lauded the role of PBA, saying

that it has become an increasingly

effective and vibrant body. Matters

pertaining to the banking sector were

discussed and Tarin emphasized the

need for the banks to aggressively

grow their deposit base so that the

saving rate of the country increases

and moves closer to those in countries

similar to Pakistan.

On this, PBA pointed out the

continuing wide disparity between

the lower tax rates on profit/dividends

from investment in shares listed on

stock market and in units of mutual

funds, & the tax rates on profit from

bank deposits classified as “profit on

debt.” Tarin understood this disparity

Apart from the need to diversify

lending, both geographically and

Bank in promoting various initiatives.

Pakistan is a cricket loving nation. Bank

Alfalah, with an objective to create a

strong connection with young fans of

the sport, has brought Babar Azam on

board as its brand ambassador. Babar

Azam is a Pakistani international

cricketer who captains the national

team in all formats. His passion and

zeal personifies an ideal role model for

the youth and he resonates with the


sectorally, Tarin asked the banks to

also focus on product innovation. He

specifically asked the development

financial institutions to develop long

term paper.

Talking about Kamyab Pakistan

Program, Tarin asked for more banks

to participate in the second bidding

process. On Roshan Digital Account,

Tarin emphasized the need for banks

to also push this offering in markets

other than UAE.

In response to PBA’s concern on the

huge disparity in tax rates on banks

and the tax rate on corporate sector

and the continuation of Super Tax on

banks, which stands withdrawn from

the corporate sector, Shaukat Tarin

understood and agreed with the PBA

concern and said that the Government

will look into the matter.

values of Bank Alfalah.

Bank Alfalah is evolving rapidly with

growing global outreach, emerging

digital platforms and expanding

branch network. Consumers today

prefer convenience and expect faster

services and Bank Alfalah is taking

initiatives to take innovative solutions

to consumers.

To celebrate this new partnership, a

Meet & Greet Session was hosted for the

captain of the national team, where he

met Mr. Atif Bajwa- President and CEO

Bank Alfalah, Mr. Saad ur Rehman,

Group Head - Corporate, Investment

Banking and International Business

as well as other senior members of the



Bank AL Habib deposits

increased to Rs. 1,272.6 billion

According to the unaudited


statements of Bank AL

Habib Limited along

with the unaudited


financial statements

of Bank AL Habib

Limited and the Bank’s Subsidiaries

AL Habib Capital Markets (Private)

Limited and AL Habib Asset

Management Limited for the period

ended September 30, 2021, the

performance of the Bank continued to

be satisfactory, during this period.

The deposits increased to Rs. 1,272.6

billion as compared to Rs. 1,099.7

billion on December 31, 2020. In the

same period, advances increased to

Rs. 659.2 billion from Rs. 510.3 billion,

while investments increased to Rs.

934.7 billion from Rs. 764.9 billion. The

pre-tax profit of the Bank for the nine

months period ended September 30,

2021 was Rs. 22.31 billion as compared

Bike rides made safe with

customers’ life insurance

Considering the high rate of motorbike

accidents and the road safety situation

in the country, the widely popular ridehailing

service, Bykea, is now offering

insurance coverage to all its customers

if they meet any unfortunate road

accident while using its service.

According to research, bikes are five

times more likely to meet accidents

than a normal four-wheel vehicle,

making the rider and the passenger

vulnerable to life-threatening injuries.

The insurance offered by Bykea in

partnership with the State Life of

Pakistan covers hospital charges,

to Rs. 22.09 billion during the

corresponding period last year.

The profit after tax for the period

ended September 30, 2021 was Rs.

13.93 billion compared with Rs. 13.13

billion during 2020.

By the Grace of Allah, the Bank now has

a network of 954 offices, comprising

921 branches, 29 sub-branches, and

4 Representative Offices. Our branch

network includes 133 Islamic Banking

Branches and 3 Overseas Branches.

Continuing with our branch expansion

policy, the Bank intends to open more

branches during the year 2021.

In September 2021, the Bank

successfully completed its eighth issue

of rated, unsecured, and subordinated

Term Finance Certificates (TFCs)

amounting to Rs. 5,000 million

(inclusive of a “Green Shoe” option

of Rs. 2,000 million) through private

placement. This private placement

was managed and arranged by your

Bank. This TFC issue has further

enhanced the Bank’s capital adequacy

and will also support future growth in

injury-treatment charges, and

compensates the bereaved families in

case of human lives lost.

The Bykea users now have the option

to pay a nominal amount on each bike

taxi trip to get themselves an insurance

cover of PKR 25,000 for hospitalization

and injuries. In case, the accident

results in a tragic death or causes

permanent disability to the user, his/

her next of kin will be eligible to receive

PKR 400,000 in lieu of the life insurance


Rafiq Malik, Chief Operating Officer,

Bykea, said, “We are constantly trying

to provide access to services leveraging

technology for the middle class in

Pakistan. We feel our partnership

with State Life of Pakistan is a

first in offering coverage to the

most vulnerable on the roads in

Pakistan and we hope that in the

odd instances of road accidents,

our customers are covered when

traveling using our platform.”

Shoaib Javed Hussain,

Chairperson, State Life

Insurance Corporation of

Pakistan at the occasion said,

“This is truly a first in Pakistan

of digital and protection

innovation, providing social

Nov - Dec - 2021

our operations. PACRA has assigned a

rating of AA+ (Double A plus) for this

Tier-II TFC-2021.

Alhamdolillah, as informed earlier in

our review for the period ended June

30, 2021, Pakistan Credit Rating Agency

Limited (PACRA) has upgraded the

Bank’s long term entity rating from AA+

(Double A plus) to AAA (Triple A) while

maintaining the short term entity

rating at A1+ (A One plus). This long

term credit rating (AAA) denotes the

highest credit quality with the lowest

expectation of credit risk and indicates

exceptionally strong capacity for timely

payment of financial commitments.

The ratings of our pre-existing

unsecured, subordinated Term

Finance Certificates (TFCs) were also

upgraded from AA (Double A) to AA+

(Double A plus) for TFC-2018 and from

AA- (Double A minus) to AA (Double

A) for TFC-2017 (perpetual). These

ratings denote a very low expectation

of credit risk emanating from a very

strong capacity for timely payment of

financial commitments.

protection to working Pakistanis at a

nominal price. State Life’s endeavor

and vision is to transform health, life,

and financial protection in Pakistan;

to enable Pakistanis to achieve life

goals with the confidence that State

Life protects them and their families.

This is the first and important step

in achieving that vision through true

product and tech innovation.”

“As someone who is the sole

breadwinner of his family and barely

manages to make ends meet, I am

thankful to Bykea for introducing the

customers’ protection. God forbid, if

something happens to me, at least I

know my family will be taken care of,”

says 37-year-old Shabbir Ahmed, a

resident of Gulistan-e-Jauhar.

While Bykea, along with the city

administration, has been encouraging

the use of a helmet for motorbike

drivers and pillion riders, very few

citizens have any kind of insurance

cover in the event of a mishap on the

road. With this optional feature on

the trip, the customers can rest easy

as they get the insurance cover for all

sorts of injuries sustained; do not have

to pay for hospitalization; and do not

have to worry about their family’s wellbeing

in case of permanent disability

or demise.



Governor SBP Dr. Reza Baqir unveils AMA to

enable opening of branchless banking accounts

Governor State Bank of Pakistan, Dr.

Reza Baqir, unveiled the Asaan Mobile

Account (AMA) recently in a launch

ceremony held at SBP headquarters

Karachi. AMA allows opening of a

branchless banking account by dialing

a simple code *2262# on a mobile

phone. The account holder can then

deposit money in his or her account

at any branchless banking agent and

use the same for transactions through

mobile phone.

AMA is an initiative of State Bank of

Pakistan (SBP) to achieve National

Financial Inclusion Strategy (NFIS)

target of promoting digital financial

inclusion in the country.

AMA has been launched with the

key support of various stakeholders

including PTA, NADRA, Branchless

Banking (BB) Providers, Cellular

Mobile Operators (CMOs) and Virtual

Remittance Gateway (VRG). VRG has

been licensed jointly by SBP and PTA

HBL partners with DTB to launch

China Coverage Department

HBL partners with Diamond Trust

Bank (DTB) and launches the China

Coverage Department to serve Chinese

enterprises operating in the East

African Market.

HBL, the largest Bank in Pakistan and

China is HBL’s second home market.

It is the only Pakistani bank to have

branches in China and only one of

the three banks from South Asia and

MENA region to offer end-to-end RMB


Diamond Trust Bank Kenya Limited

(DTB) is a leading regional bank


under the


for mobile


The launch ceremony was chaired

by Dr. Reza Baqir, Governor SBP and

addressed by Ms. Sima Kamil, Deputy

Governor SBP, Chairman PTA Major

General (R) Amir Azeem Bajwa HI (M),

Chairman NADRA Mr. Muhammad

Tariq Malik and Mr. Ikram Sehgal,

Chairman VRG. The ceremony also

witnessed signing of a Memorandum

of Understanding (MoU) among 13

branchless banking service providers.

The MoU was signed to affirm their

commitment in facilitating customers

through continued collaboration for

more innovations in line with NFIS


While speaking on the occasion, Dr.

Reza Baqir thanked the stakeholders

for their contributions that culminated

into the successful launch of the

AMA initiative. He said that AMA is

listed on the Nairobi

Securities Exchange

(NSE) with presence

in four East African

countries. An affiliate of the Aga

Khan Development Network

(AKDN), DTB has operated in

East Africa for more than 70 years.

HBL has been instrumental

in supporting business flows

between China and South Asian

Countries. This partnership with

DTB, will further the Bank’s ability to

extend this capability for the China

Business to Africa. DTB is working

with HBL to introduce a wide range

of products to cater to the needs of

the market including direct RMB

remittances from Kenyan Shilling,

Nov - Dec - 2021

expected to bring a significant increase

in bank account opening and the

lack of internet access or proximity

to branchless banking outlets/bank

branches would no longer be barriers

for Pakistanis to access financial

services. Accounts can now be opened

simply by dialing a USSD code *2262#

from any mobile phone (smart or

simple feature phone) through any

mobile network, without requiring

internet connectivity. Customers will

have the choice to choose from any

of the 13 branchless banking service

providers that are currently offering


Governor Baqir highlighted that the

AMA would play an important role

in enhancing digital access and use

of formal financial services in the

country. He added that Pakistan has

over 187 million biometrically verified

mobile subscribers with Tele-density

of around 85%, however; there are only

106 million 3G/4G subscribers with

mobile internet penetration standing

at 48%. This gives us the potential

market of around 81 million mobile

subscribers which don’t

have access to internet

and could become users

of AMA if provided

with the right value


AMA will particularly help

low income segments

with non-digital phones

and no access to internet

to enjoy banking as it

offers a simpler process,

such as dialing a code, to

avail financial services.

RMB-based trade products including

guarantees, imports and exports and

financing financial products.

The announcement was made at a

dinner hosted by DTB in honour of its

Chinese clients in Kenya.



UBL partners with U Bank to promote

financial inclusion in Pakistan

United Bank Limited (UBL) and U

Microfinance Bank Limited (U Bank)

recently signed a Memorandum of

Understanding to promote financial

inclusion in Pakistan and to open up

multiple avenues for collaboration,

including medium to long term

debt funding, retail TFC, Islamic


F u n d i n g ,


paper and


their respective

business to

scale. The

ceremony was

held in UBL

Head Office in


The signing ceremony was presided

by Shazad G Dada, President & CEO

UBL and Kabeer Naqvi, President &

CEO U Microfinance Bank Limited

along with senior executives of both

banks including Farooq A Khan,

Group Head CIBG & FI, Muhammad

Tayyab Khurshid, Unit Head FI and

other executives from UBL and

Mariam Pervaiz, Chief Commercial

Officer & Chief of Staff, Muhammad

IAP, CDC sign MoU

Insurance Association of Pakistan (IAP)

and Central Depository Company

of Pakistan Limited (CDC) signed

a Memorandum of Understanding

(MoU) for the digital aggregation of

insurance products through CDC’s

Emalaak Financials platform, a

statement said.

Under the regulatory impetus of

Securities and Exchange Commission

of Pakistan (SECP), the agreement aims

to provide low-cost and centralised

solution to insurance policy holders

by providing comparative cost benefit

analysis of different products on a

Farooq Kamran, Head

of CB&I and Mohsin

Aslam, Head Budgeting

Planning and Corporate

Finance from U Microfinance Bank


Shazad G Dada, President & CEO UBL,

at the event, said “As the ‘Best Digital

Bank’ of Pakistan, we are looking

forward to our strategic alliance with

U Bank, with the aim of expanding

the scope

of financial

inclusion across

the country.

It presents

an exciting


to further

strengthen our

digital prowess

to bring state

of the art financial solutions to our

combined customer bases.”

Kabeer Naqvi, President & CEO U Bank

said “We are delighted to establish

this partnership, which is aimed at

exploring avenues to collaborate,

design innovative products and work

together in moving the banking sector

forward. This alliance will help us

serve more customers and bring more

Pakistanis in to the banking net.”

centralised platform.

Sadia Khan, commissioner at SECP,

presided the MoU signing ceremony at

the CDC House in Karachi.

“This fintech solution of ‘Emlaak

Financials’ is a landmark initiative

of national significance, aiming to

become ‘digital financial super market’

in Pakistan by leveraging the potential

of technology to increase outreach for

various financial products.” CEO at

CDC Badiuddin Akber said.

Addressing the occasion, Sadia Khan

said digital transformation is expected

to have an impact throughout

the insurance value chain, from

underwriting and pricing of products,

their marketing and distribution,

through to claims processing and the

ongoing customer servicing.

This is expected to lead to a reduction

in the protection gap as new market

segments are accessed as well as an

increase in the insurance penetration,

she added.

Nov - Dec - 2021

NBP joins hands with

ICAP to offer training

to CA students

National Bank of Pakistan (NBP) has

entered into an arrangement with the

Institute of Chartered Accountants of

Pakistan (ICAP) to offer articles training

to the Chartered Accountancy students

throughout the country. A ceremony in

this connection was held on December

17, 2021 at the Bank’s Head Office

and was attended by existing and

past ICAP Council members and CA

professionals from industry.

Addressing the audience, President of

the Bank Mr. Arif Usmani encouraged

the idea of promoting professional

excellence through extensive training

and grooming of young finance

professionals as future visionaries and

economic leaders of the country. This

goes well with the Bank’s Vision to be

the Nation’s Leading Bank Enabling

Sustainable Growth and Inclusive

Development. The Bank has capacity

to induct up to 75 trainees at any point

in time. Placement will be offered

initially at the Bank’s Head Office and

then throughout the Country, thus

creating a nationwide opportunity for

those students who cannot relocate to

bigger cities to pursue CA qualification.

Extensive learning plans offered by

the Bank include rotated placement

of trainees in all key functions of

the Bank, particularly in Finance,

Audit, Risk, Operations, Compliance,

Treasury, IT, HR, etc.

The Bank will support deserving

trainees through reimbursement of

the cost of approved study materials

as well as examination fees. The

arcticleship training programme

is regulated by the ICAP to ensure

quality & comprehensive training

programme for producing talented

Chartered Accountants. The audience

appreciated this initiative of NBP as

an excellent opportunity for young

CA professionals, and acknowledged

contributions of the Bank towards

economic growth in the country over

the last seven decades.



Meezan Bank, ICBC Pakistan ink

Tahawwut Master Agreement

Meezan Bank and Industrial and

Commercial Bank of China (Ltd)

Pakistan (ICBC Pakistan) has signed

the Tahawwut Master

Agreement (TMA)

between, this will

allow Meezan Bank

to execute Shariahcompliant


for CNY denominated

transactions on a

Wa’ad (promise) based


In a virtual ceremony, the agreement

was signed by Irfan Siddiqui Founding

Soneri Bank launches soneri digital

to expand its banking landscape

On completing its 30 years and to mark

a new era of smart banking, Soneri

Bank is pleased to announce the

launch of a new and improved Soneri

Digital, an enhanced

digital platform for iOS,

Android and Web.

Soneri Digital is the new

chapter in the Bank’s

ongoing journey towards

digitalisation and

President & CEO Meezan

Bank and Chen Yuncheng

CEO & General Manager

ICBC Pakistan in presence of

the senior management of both the


Commenting on this occasion, Irfan

Siddiqui said that Meezan Bank is

delighted to be given this opportunity

focusing on providing

customers with a

seamless, secure and

convenient banking

experience. With an increased demand

for digital banking solutions, the Bank

has been swift in redefining its strategy

Nov - Dec - 2021

to extend our role in the development

of the Islamic financial market in

Pakistan. “We strongly support and

believe that the development of the

financial system is critical for the future

growth and success of any economy.”

The TMA, which is

governed under the

International Islamic

Financial Markets

(IIFM) framework,

is an Islamic

alternative to the

globally recognised

International Swaps

and Derivatives

Association (ISDA) agreements, which

allow banks to trade over-the-counter

(OTC) financial products.

and adapting to changing consumer

needs by keeping customer experience

as the top priority.

The new digital platform offers

customers a full suite of digital

banking services, including Seamless

Registration, Account

Management, Card

Management, Account

Statements, Funds

Transfers, Utility Bill

Payments and other

school/university and

government payments.



Profile of the

EFU General Insurance

EFU General Insurance Limited is

Pakistan’s largest and oldest general

insurance company, always ready to go

the extra mile to serve better.

Ever since the company’s establishment

in 1932, it has met the challenges of

changing times. It has built a diversified

customer base, covered more types

of risks than any other, enhanced

the expertise and delivered on the

promises. In the year 2017 EFU General

Insurance Ltd. including its Takaful

(Islamic Insurance) operations have

crossed the Premium/Contribution

figure of Rs.20 billion. It is the first

general insurance company in the

history of Pakistan to achieve this


EFU General provides a wide

range of insurance services to

fulfil all needs of commercial or

individual clients. It provides Fire,

Engineering, Marine, Aviation,

Motor, Miscellaneous services

and Takaful (Islamic Insurance)

covers. It has a diversified

customer base and writes all

classes of industrial, commercial

risks and caters to retail business

like travel insurance, vehicle

insurance, etc.

It is rated by national and international

rating agencies. i.e., VIS, PACRA of

Pakistan and AM Best of USA. VIS and

PACRA have assigned the rating of AA+

with a stable outlook and AM Best have

assigned a rating of B+ with a positive

outlook. EFU is an ISO 9001:2015

certified company.

Regarding the recognition of EFU

General’s services to the industry and

the economy of Pakistan, it has also

received various awards including

the Corporate Excellence Award of

Management Association of Pakistan,

Best Corporate Report Award of

Institute of Chartered Accountant

of Pakistan (ICAP) and Institute of

Cost and Management Accountants

of Pakistan (ICMAP), Achievement

Award & Gold Medal of the Federation

of Pakistan Chamber of Commerce

and Industry (FPCCI), SAFA Best

Presented Annual Report (Certificate

of Merit) of South Asian Federation of

Accountants (An apex body of SAARC),

Brands of the year Award of Brands

Foundation, Consumers Choice Award

of Consumers Association of Pakistan,

and Top 25 Companies Award of

Pakistan Stock Exchange, etc.

EFU General is the most powerful

trusted brand in the country and

Nov - Dec - 2021

is the leading insurer of Chinese

infrastructure projects (CPEC) in

Pakistan. It has always played a

pivotal role of the institution, giving

the Pakistan insurance industry the

leadership, manpower and drive

needed to grow and face challenges.

Performance Review

According to the unaudited financial

statements for the nine months period

ended 30 September 2021, the Written

Premium for the period increased by 8 %

to Rs. 18,662 million (including Takaful

Contribution of Rs. 2,045 million)

from 17,307 million (including Takaful

Contribution of Rs. 1,830 million) for

the corresponding period of last

year. The Net Premium Revenue

increased by 10 % to Rs. 7,048

million from Rs. 6,431 million for

the corresponding period of last


The overall Claims ratio to Net

Premium Revenue was 47%

as compared to 50% for the

corresponding period last year.

Investment income (including

rental income, profit on deposits

and other income) for the period

increased by 6 % to Rs. 1,871

million as compared to Rs. 1,765

million for the corresponding

period of last year.

The after-tax profit for the period

increased by 10 % to Rs. 1,956 million

as compared to Rs. 1,775 million in the

corresponding period last year. The

earnings per share for the nine months

was Rs. 9.78 as against Rs. 8.88 in the

corresponding period of last year.

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Telenor Pakistan signs

license renewal template

Continuing its

commitment to

provide best-inclass

telecom and

digital solutions to

its customers and

connecting them

to what matters


Pakistan has signed

its GSM license renewal template

issued by Pakistan Telecommunication

Authority (PTA) under protest and

without prejudice.Telenor Pakistan

reserves right to continue seeking a

legal resolution to its dispute with PTA

in this regard.

PTA issued a 15-year license for network

operations to Telenor Pakistan in 2004,

the renewal of which was required to

be done within available framework.

Telenor Pakistan has always advocated

for a level playing field and fair terms

and conditions; and believes that the

coverage and quality of services will

improve throughjoint efforts of all

stakeholder involved to ensure long

term viability and sustainability of the

telecom sector.

The dispute on the

onerous terms and

conditions of the

license template is subjudice

before Supreme

Court of Pakistanand Telenor Pakistan

will continue the legal recourse to

resolve disagreements. However,

subject to outcome of aforesaid legal

proceeding, in order to ensure greater

certainty to business operations,

Telenor Pakistan has taken a step

forward towards its future ambition by

singing the license template.

Commenting on the development,

CEO Telenor Pakistan, Irfan Wahab

Khan stated,“Telecom and digital

services have become fundamental

for modern, sustainable societies to

prosper. At Telenor Pakistan, we are

continuously maximising our efforts

towards enabling our customers and

accelerating the pace of digitalisation

in the country.

VEON Group CEO visits


Kaan Terzioğlu, Chief Executive

Officer, VEON Group called on Prime

Minister Imran Khan in Islamabad.

Kaan reiterated the Group’s full

support towards the Government’s

#DigitalPakistan agenda.

VEON, a leading global provider of

connectivity and internet services, is

embarking on a journey to be a worldleading

digital operator with over 213.8

million subscribers in nine countries,

including 71.9 million in Pakistan

through its operating company, Jazz.

Zong 4G set up digital lab

As part of its ‘Let’s Go Digital’ mission,

Pakistan’s cellular and digital services

giant, Zong 4G, has partnered with

Molvi Abdul Haq School, Karachi to

construct a digital lab there.

The digital lab was inaugurated by

the Honorable Federal Minister for IT

and Telecommunication Syed Amin Ul

Haque on 11th December 2021 in the

presence of the top management of

Zong 4G.

PTCL & Ufone sign MoU

with Huawei



Company Limited (PTCL) and Ufone

have signed a Memorandum of

Understanding (MoU) with Huawei

Technologies Pakistan, for providing

strategic learning & development

initiatives for its employees.

Syed Mazhar Hussain, Group Chief

Human Resource Officer, PTCL &


Kaan apprised the Prime Minister

about Jazz’s investment in Pakistan,

which has crossed US$ 10 billion

including US$ 560 million in the

last two years alone on 4G network

expansion - taking the total number

of 4G users to 34.2 million, cementing

Jazz’s position as the number one 4G


Speaking at the occasion, Honorable

Federal Minister for IT and

Telecommunication Syed Amin Ul

Haque said, “Pakistan is moving

towards its mission of digital and social


Ufone, and Ahmed Bilal Masud,

Deputy CEO, Huawei Technologies

Pakistan, signed the MoU during a

ceremony held in Islamabad. The

ceremony was also attended by

Hatem Bamatraf, President and GCEO,

PTCL & Ufone, and Mark Meng, CEO,

Huawei Technologies Pakistan, along

with senior management from both


The MoU aims to facilitate effective

learning and development for Ufone

and PTCL employees that will enable

their fast-paced


growth and

development. It

also reinforces

the partnership

between PTCL

Group and Huawei

to help them

pursue mutual


growth and



Samsung mobile phone

plant to offer 800 jobs

The Ambassador of South Korea to

Pakistan Suh Sangpyo has said that

Samsung is establishing a mobile

phone manufacturing plant in Pakistan

that will give new job opportunities to

hundreds of local people.

Ufone secures its largest syndicated

financing of 4G Spectrum & Rollout

Pakistani Telecom Company, Ufone

has secured its largest syndicated

financing facility jointly led by MCB

Bank Limited (MCB) (Agent bank),

Allied Bank Limited (ABL), Bank

of Punjab (BoP), National Bank of

Nov - Dec - 2021

financing of PKR 21

billion at a ceremony held

in Islamabad, which was

also attended by President,

MCB Bank, Mr. Imran Maqbool;

Group Head, Corporate Finance &

International Banking, MCB Bank, Mr.

Shoaib Mumtaz; President Allied Bank,

Mr. Aizid Razzaq Gill; Chief, Corporate

The Korean Ambassador also said that

Samsung mobile phone manufacturing

plant is expected to start its production

by the end of current calendar year.

Initially, this mobile manufacturing

plant will offer 800 jobs to local people

and these job opportunities could

increase in futures.

Air Link subsidiary,

Xiaomi in deal

Select Technologies (Pvt) Limited, a

subsidiary of Air Link Communication

Limited, is partnering with Chinese

smartphone firm Xiaomi to

manufacture handsets in Pakistan.

“Xiaomi, the global consumer

electronics and smart phone giant, has

joined hands with Select Technologies

(Pvt) Limited, a wholly owned

subsidiary of Air Link Communication

Limited (AIRLINK) as its manufacturing

partner for Xiaomi mobile phones

in Pakistan,” the company said in a

bourse filing recently.

The company said it was targeting a

production of initially around 2.5 to 3

million handsets annually ‘subject to

smooth supply chain’. The company

expects this partnership to add

approximately $450 million annually

in top line revenue numbers. “[It] will

have a material incremental impact

on the EPS of the company other than

the normal course of business,” the

company said. The production facility

will be located adjacent to the Air

Link’s existing state of the art mobile

manufacturing facility at Quaid-e-

Azam Industrial Estate, Kot Lakhpat

Lahore. The production facility is

anticipated to be operational within

the month of January 2022.

Pakistan (NBP), and United Bank

Limited (UBL) to fund the acquisition

and rollout of its 4G services across


President and Group CEO, PTCL &

Ufone, Mr. Hatem Bamatraf signed

the agreement for the syndicated

Telenor Pakistan to empower the farmers

and rural communities in Pakistan

Telenor Pakistan, GSMA and Tabadlab

collaborate to share findings and

recommendations in a report aimed

at empowering the agriculture

ecosystem in the country. Fostering

the development of agricultural

innovation, Telenor Pakistan is

empowering the agriculture ecosystem

in the country with the official unveiling

of KhushaalWatanplatform designed to

PTCL Group marks int’l day

of persons with disabilities



Company Limited (PTCL) Group –

PTCL and Ufone – has successfully

concluded its flagship Justuju

Internship Program, an exclusive

development program for Persons

with Disabilities (PWDs) to mark the

International Day of Persons with

Disabilities, falling on December 03.

PTCL Group, in collaboration with the

Network of Organizations Working

with Persons with Disabilities,

& Investment Banking, Allied Bank,

Mr. Owais Shahid; Head Investment

Banking, Bank of Punjab, Mr. Umer

Khan, Mr. Abid Kitchlew Divisional

Head C&IBG, National Bank, and Mr.

Farooq Ahmed Khan Group Head

Corporate & Investment Banking,

United Bank Ltd.

digitally enable the

rural community

and farmers.

The platform

was unveiled by Makhdoom Shah

Mahmood Qureshi, Minister of Foreign

Affairs at Telenor Pakistan’s 345 campus

in Islamabad. The event also anchored

around a discussion between experts

from Telenor Pakistan, GSMA and

Tabadlab to contribute towards a

report with key recommendations to

nurture the agriculture ecosystem in

the country.

Pakistan (NOWPDP), introduced

an exclusive six-week internship

program aimed at providing equal

internship opportunities to Persons

with Disabilities (PWDs) at their

Headquarters and Zonal Offices.


New auto policy places strong

focus on export, says EDB chief

Engineering Development Board

(EDB) chairman Almas Hyder said

around 8 million vehicles in different

categories will be produced annually

by the year 2026.

Speaking at the annual dinner of

PAAPAM, hosted by its outgoing

chairman Abdur Rehman Aizaz, the

EDB chairman said, “The new auto

policy has a strong focus on export as

well as capacity enhancement of the


Almas said the policy aims to generate

volumes of over 600,000 in fourwheelers,

over 100,000 in tractors,

and over 7 million units per annum

in motorcycles by the year 2026.

Meanwhile, PAAPAM has announced

MCM set to become first

vehicle exporter of Pakistan

Master Changan Motors (MCM) has

taken a leap to become the first auto

assembler to export vehicles from

Pakistan. After revealing the sketches

of its upcoming SUV segment, the

MCM claimed that the upcoming SUV

launch would be the first-ever ‘global

launch’ for any vehicle in Pakistan.

Danial Malik, CEO MCM, apprised last

year that MCM and Changan, China

had agreed to make Pakistan ‘exporting

hub’ for Right Hand

Drive (RHD) vehicles,

and after the release

of initial sketches of

the upcoming SUV,

Pakistan will be the

first country to launch

this new Changan SUV

outside China as a

global launch and the

that the 19th edition of Pakistan

Auto Show, one of Pakistan’s

most popular exhibitions, is

going to be held at Karachi Expo

Centre from January 21-23.

“The auto show is a very important

opportunity for local companies and

businesses in Pakistan to showcase

their capabilities,” said Zain Shariq,

convener of PAS 2022.

He said the show reflects the level of

engineering that’s being undertaken in

Pakistan and how it is adding value to

the local manufacturing industry and

hence, is a good avenue for consumers

and policymakers to witness local


PAAPAM chairman Razzak Gauhar

said the association has always played

a pivotal role for the provision of

business opportunities and growth

of the Auto Engineering Industry as a


At the PAS 2022, PAAPAM will establish

a substantive business generation

model for everyone including PAAPAM

members who are not exhibiting

and the representatives of the allied

industries, he said.

vehicle will be supplied to other RHD

markets from Pakistan.

Danial says, “As with everything else,

we are entering the SUV segment with

a ‘Future Forward Forever’ attitude

and look forward to disrupting it for

the better and bringing Pakistan’s SUV

consumers into the future.” While the

company has not revealed features,

price, or launch timelines – mentioning

only the new SUV will debut “Very


Earlier this year, the company unveiled

its “Future Forward

Forever” positioning,

demonstrating its

commitment by testing

Changan’s Level-3

autonomous driving

technologies on

Pakistani roads – a first

for any automaker in

the country.

Car sales jump 62pc to

90,303 units in July-Nov

According to data released by

Pakistan Automotive Manufacturers

Association, total car sales swelled to

90,303 units during the five-month

period from 55,779 units a year

ago despite a mild drop in sales in

November to 15,351 units from 17,413

in October.

The highest jump of 134pc was

recorded in Suzuki Cultus sales, which

stood at 13,105 units in July-November

compared to 5,596 last year. On the

number two spot was Suzuki WagonR,

whose sales rose 93pc to 8,768 from

4,539 units.

Toyota Corolla emerged as the third

best-selling sedan with a jump of 92pc

in sales to 12,723 from 6,632 units.

Toyota Yaris production dropped 8pc

to 10,388 and sales fell 1pc to 11,252.

The combined sales of Civic and City

rose 27pc to 13,215 from 10,429 units

in the year-ago period. Suzuki Alto and

Bolan sales jumped 75pc and 74pc

to 23,193 and 5,201 units. Hyundai

Elantra and Sonata sales stood at 1,280

and 1,071 units during the period.

Umair Naseer of Topline Securities

attributed a drop in November sales

to rising financing rates, stringent

financing requirements by the central

bank, and the year-end phenomenon

when car sales tend to slow down in




Chery to launch the latest

generation Tiggo SUVs in


Chery Automobile Co., Ltd., the

number one automobile export

company of China has partnered

with Ghandhara, a leading name in

manufacturing and distribution of

vehicles for local production of the

latest generation Tiggo Series SUVs.

This move is part of Chery’s strategy

to engage with emerging automotive

markets around the world, tailoring

brands and products to meet the rising

consumer demand. Sales of the first

locally built vehicles are expected to

begin in Pakistan within the fiscal year


Ghandhara’s investment of $10million

over the first four years will provide the

industry with a much-needed financial

boost, as well as help expand a retail

network and create job opportunities.

Chery will launch with an initial

dealership network of 8 dealers across

Pakistan and a production capacity of

16,000 units. In their second phase of

production, this will be increased up

to 32,000 units as their state-of-the-art

plant is being built in Karachi’s Port


Chery and Ghandhara will work

together to introduce world-class

facilities in Karachi’s Port Qasim. The

partners are working closely to have a

long-standing relationship, bringing

a wealth of local knowledge and

experience with the latest engineering


The Tiggo 4 Pro is a 5-seater SUV with

the latest generation 1.5TCl Engine. Its

shape embodies a traditional design

concept for the family, with a unique

combination of Diamond Grille, LED

headlights and daytime running lights

for its fashionable attitude.

General Tyre of Pakistan

rechristened as Ghandhara Tyre

The name of General Tyre and Rubber

Company of Pakistan Limited has

been changed to Ghandhara Tyre and

Rubber Company Limited.

According to material information

sent to the Pakistan Stock Exchange

recently, the certificate of change

of the Company’s name has been

issued by the Securities and Exchange

IMC chief underscores the

need for import substitution

“Pakistan’s macroeconomic goals are

tied to ‘Make in Pakistan’ and import

substitution. With a multiplier effect of

10, auto industry can help contribute to

it significantly,” said Ali Asghar Jamali,

CEO Indus Motor Company (IMC).

Talking to a group of journalists in

Karachi, he said the industry has

invested heavily in the last 4 decades to

establish a local engineering base and

they are proud that IMC has been at

the forefront of this initiative. “We are

working on numerous upgrades and

new models in coming future with key

focus on localization.

With 36 Technical Assistance

Agreements in Pakistan, we have

laid the foundation of automobile

technology transfer in Pakistan and

exponentially contributing to it. This

has not only generated employment

but also opened doors to export for

many local part makers”. It is to be

noted that with more than 60 percent

localization, IMC is procuring local

parts worth over 200 million every day

from its vendors.

“Local vendors and OEMs are working

in collaboration for localization,”

Jamali said, adding that recently IMC

announced an investment of $100

million for localized manufacturing

of hybrid vehicles. “This huge

investment is sure to give a boost to

Nov - Dec - 2021

Commission of Pakistan


“As mandated by law, both

names, ie, ‘Ghandhara Tyre and Rubber

Company Limited’ and ‘The General

Tyre and Rubber Company of Pakistan

Limited’ shall be collectively used by

the company for some time and the

latter name will gradually be phased

out,” the information said.

The company’s agreement and

arrangements with its technical

partner, ie, Continental AG, bankers,

other creditors, suppliers and other

business affiliates are intact and would

remain in full force and effect, it added.

“This change in the company’s name is

part of the overall brand transformation

strategy of the company, ie, ‘GTR’ and

does not affect the principal line of

business, in any manner, whatsoever.”

the local auto vendor industry while

it will also open doors for new hybrid

technology,” Jamali said. The $100

million investment will go towards

localisation of components, plant

expansion and production preparation

for the first hybrid electric vehicle to be

manufactured at IMC plant.

Besides this investment, he added,

the IMC has also made an additional

investment of $30 million in its plant

in order to meet the demand in the

post-covid era. The total industry wide

installed capacity has touched 420,000

units annually and it is expected to

increase in the foreseeable future

with further investments across the


“Hybrids, in the larger interest of the

country, are the practical sustainable

new option for our local customer to

enjoy better mileage but also help curb

the oil import bill. While facilitating

customers through 50 percent to

70 percent fuel savings, Hybrid will

also help generate jobs through

localization,” he added.


PIA fully compliant with

flight safety regulations

The Pakistan International Airlines

(PIA) is fully compliant with flight

safety regulations as per international

standards, backed by a team of

experienced internal flight safety


“PIACL is fully compliant with Flight

Safety Regulations as we have ‘No’

outstanding audit findings on this

subject from any regulator,” the

Aviation Division said in written reply

submitted in the National Assembly,

responding to a query of Member

National Assembly Dr Nafisa Shah.

“PIA has successfully undergone an

intense, on site IOSA [IATA Operational

Safety Audit] re-certification audit

concluded at Karachi. IOSA renewal

is now valid till next 24 months from

certification date i.e 11-09-2022,” it

added. The Aviation Division said

enhancement of SMS data integration

through indigenous SMS dashboard

had been designed to monitor safety


With the enhanced effectiveness of

Flight Data Analysis (FDA) programme

(100 percent monitoring), it said a

significant improvement in flight

safety related issues had been ensured.

Besides, the Crew Resource

Management (CRM) was being revised

and improved for reducing human

factor that caused incidents. “Subject

matter expert’s services and assistance

have been sought from the Boeing/

Airbus companies for assessment

of SMS functions and FDM (Flight

Data Monitoring) Programme. A very

positive outcome and analysis of

SMS was acknowledged by them,” the

Aviation Division.

PIA becomes first airline to

operate flights to Fujairah

PIA’s first flight took off from Peshawar

for Fujairah recently carrying 168

passengers. CEO PIA Air Marshal

Arshad Malik (Retd) along with

passengers travelled on the first flight

to Fujairah. CEO PIA was warmly

welcomed by members of the Royal

Family and High government officials.

All passengers were greeted and

welcomed with traditional dance. PIA

TCS partners with


TCS (Pvt.) Limited has announced

signing of a Cargo General Sales Agent

(CGSA) agreement with SereneAir (Pvt.)

to expand its supply chain solutions.

The agreement, effective from Dec 1,

2021, aims to upgrade movement of

goods within the country.

“We are living in an age of

collaboration and this partnership

will allow both organizations to

enhance their customers’ journey and

experience,” CEO TCS (Pvt.) Limited

Mr. Muhammad Harris Jamali said.

He said partnership with Serene Air

(Pvt.), a privately owned Pakistani

airline, would leverage TCS’s respective

Islamabad Marriott Hotel welcomes

new GM, Executive Chef

Islamabad Marriott Hotel has

appointed David Richard O’Hanlon

as its new General Manager. The

official introduction for the new

General Manager was made by Haseeb

Gardezi – Chief Operating Officer,

Hospitality and Education Division,

for the convenience of passengers has

made special arrangements for swift

immigration at the airport and free bus

transportation to other cities.

networks to provide customized and

end-to-end supply chain solutions to

small and large businesses alike. He

envisaged that the partnership would

accelerate movement of goods and

commerce across Pakistan.

TCS (Pvt.) Limited is not only Pakistan’s

logistics and supply chain solutions

provider, but also an International Air

Transport Association (IATA) license

holder, allowing it to connect all

corners of Pakistan.

With the partnership, both parties

plan to increase access for consumers,

enable faster, safer, and cheaper

movement of cargo, improve trade

conditions within the country and

empower large and small traders and

business owners to reach clients across

the nation.

Hashoo Group, during the

dinner reception held at

Islamabad Marriott Hotel

on 8th November 2021.

David has worked in the hospitality

industry for more than 25 years in

South Asia, SE Asia, Middle East,

Eastern and Western Europe. Prior to

joining Islamabad Marriott Hotel, he

was the General Manager at

BWH Hotel Group, Thailand.

Adding to this, Islamabad

Marriott Hotel welcomes

Metin Isci, from Turkey, as

the new Executive Chef, who

has over a 20-year experience

of working in five-star hotels,

including Istanbul Marriott




Emirates offers special fares on flights

to Europe or the US from Pakistan

Emirates has announced special fares

from Pakistan to multiple destinations

in Europe and US. Passengers from

Pakistan can plan their winter holidays

in advance to save big on their air

fares by booking early with Emirates.

This is a suitable time for people who

are traveling for leisure and to meet

friends and family after a long wait

to book their tickets on special fares.

With Emirates’ generous booking

policies, customers have the option

to extend ticket validity for up to 24

months, enjoying greater flexibility

and confidence when planning travel

during unprecedented times.

The special fares will be available for

bookings made from 06 December

Gerry’s dnata wins coveted global award

for best-in-class services in Pakistan

Gerry’s dnata, Pakistan’s leading

ground services provider, has been

recognised for consistently delivering

quality, safe and innovative services

at its Islamabad hub and received the

‘Best Station’ accolade at the 2021 Pride

of Ground Handling Awards. Gerry’s

dnata was also shortlisted for four

additional awards.

Syed Haris Raza, Vice President of

Gerry’s dnata, said: “We are delighted

to receive one of the industry’s most

coveted global awards as a recognition

2021 to 19 December

2021, valid for travel

between 09 December

2021 and 31 March

2022*. Passengers transiting in Dubai

from Pakistan must present a negative

COVID19 PCR test certificate for a test

taken no more than 72 hours before

departure. The promotion is valid on

Economy, Business as well as the First


Emirates currently flies to/from 5 cities

in Pakistan on over 64 weekly flights,

and continues to make adjustments as

demand for travel increases. Emirates

returned to its pre pandemic capacity

in Pakistan this month and is gearing up

for a speedy recovery in the market. The

airline continues to expand its network

safely and in line with global demand

for travel, it has resumed passenger

of our world-class


“Islamabad is an

extremely important and strategic

location for the aviation industry. As

the leading ground handler we are

proud to have supported one of the

largest repatriation missions of the

year by ensuring safe and seamless

operations of the flights.

“I thank each member of our team for

their relentless commitment to provide

service excellence across our network.”

Over the past year, Gerry’s dnata has

continued to enhance its operations

Nov - Dec - 2021

services to over 157 destinations via its

hub Dubai, recovering close to 90% of

its pre-pandemic network. Emirates

also announced a whooping increase

of 86% in its revenue compared to the

last year, showing signs of quick return

of passenger demand.

The promotional return fares to New

York start from USD 1005 in Economy

Class USD 2851 in Business Class.

and services to deliver the highest

level of quality and safety and help

airline customers safely transport

passengers and precious cargo to

and from Pakistan. Gerry’s dnata

also made significant investments

in infrastructure, technology and

equipment. This included the opening

of a new, state-of-the-art cargo

facility in Lahore which doubled the

company’s cargo handling capacity at

the airport.

Gerry’s dnata’s quality of service helped

it win or retain over 20 contracts with

key accounts across its network. The

company also achieved prestigious

industry certifications, including GDP

and IATA’s ISAGO accreditation, which

validate its capabilities and place the

business in a market leading position.

Gerry’s Group and dnata, a global

leading air and travel services provider,

joined hands in 1993 to provide ground

handling services at Karachi Airport.

Since then, the joint venture has

continually expanded its operations

in the country and today serves more

than 20 airline customers at seven

Pakistani airports. Gerry’s dnata’s

dedicated employees serve more than

seven million passengers and handle

150,000 tons of cargo annually.

Ground Handling International’s (GHI)

Pride of Ground Handling Awards

celebrate excellence in ground service

across the globe and the all-important

people who are passionate about

performing the perfect turnaround.


Bangladesh top shipping agent

offers its services


(Marine Shipping Logistics)


Head Office: Portland Sattar Tower (7th Floor),

1776-Strand Road, Near Port Gate No:1,Barik Building,


Register Office : Amrito Plaza (3rd Floor),

7, Sk. Mujib Road, Barik Buildding

More, Agrabad, Chittagong-4100, Bangladesh.

Phone: +880312523035,

Fax : +880312523036




PIC: Lion Sk. Md. Samidul Haque : Mobile/WA: +8801819379912

PIC: Mr. A. H. M. Ashraf : Mobile/WhatsApps:+8801715606590






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