Trade Chronicle Mar-Apr 2022

tradechronicle53
  • No tags were found...

EDITORIAL

• PM Shehbaz challenges on economic and political fronts
• Pakistan to fine-tune petroleum policy to attract E&P investment
• Falling FDI is a matter of concern

ARTICLE & FEATURE

• Shehbaz becomes 23rd PM of Pakistan
• 33 MPs take oath as cabinet members - By Ayaz Akbar Yousafzai
• Five 'band-aids' the new government must immediately apply to revive the
bleeding economy - By Sajid Amin Javed
• Potentials of the IT industry in Pakistan - By Dr. Muhammad Nawaz Iqbal
• Package for IT sector in Pakistan
• PIEDMC to promote industrialization in Punjab

PAKISTAN CEMENT INDUSTRY
• Pakistan cement dispatches fall in February and 8MFY22
• Lucky Cement plans a 34 MW captive solar power project in KPK
• Cement prices surge to Rs850
• Maple Leaf Cement to become the 4th largest player in Pakistan
• Pakistan's cement/clinker exports observe a mixed trend in 8MFY22
• Flying Cement gets a long-term mining lease

PORTS, SHIPPING & RAILWAY
• Work on $5bn Pak-Afghan-Uzbek railway kicks off
• PICT posts record revenue of Rs 11,099 million
• KPT organises seminar on ‘Marine Salvage’
• Gwadar Port to be utilised for Afghan transit trade
• KPT conducts security drill at harbour
• Pakistani freight train likely to reach Zahedan
• PNSC Group has managed to achieve an 18% increase in PAT
• PIBTL has released a financial report for the period ended Dec 31, 2021

Special Report
23rd March Pakistan day
• President Dr Arif Alvi message on Pakistan Day
• Pakistan showcases military prowess at the parade

PAKISTAN LEATHER INDUSTRY
• Consul General of Pakistan in UAE inaugurated Pakistan Pavilion in APLF 22
• India leather records growth of 33.45% in 10MFY22
• Sri Lanka leather export falls
• UAE to provide duty-free facilities for leather
• High energy and an optimistic mood pervaded APLF’s special edition in Dubai
• Bangladesh leather industry exports increase in 8MFY22

REGULAR FEATURES
• Automobile News, Banking & Insurance News, People Events,
• Telecommunication News, Travel World, Steel & Allied Industry

www.tradechronicle.com Vol -Issue Nos. & - Mar - Apr. Rs. /-

ESTABLISHED IN MARCH

th

- YEAR OF PUBLICATION

TTADE CHHONICLE

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

23 rd March

Pakistan

Resolution

Day

Mian Shehbaz becomes 23 rd PM of Pakistan

Ministerial Portfolios

Minister for Finance

Miftah

Ismail

Minister for Planning

and Development

Ahsan Iqbal

Minister for Interior

Rana

Sanaullah

Minister for Information

Marriyum

Aurangzeb

Minister for Railways

Khawaja Saad

Rafique

Minister for Defence

Khawaja

Asif

Minister

for Commerce

Syed Naveed Qamar

Minister for Industries

Syed Murtaza

Mahmud

Minister

for Privatization

Abid Hussain Bhayo

Minister

for Communication

Asad Mahmood

Minister for IT

Syed Amin

-ul-Haque

Minister

for Maritime Affairs

Faisal Subzwari


TRADE CHRONICLE


TRADE CHRONICLE


TRADE CHRONICLE


TRADE www.tradechronicle.com CHRONICLE

Vol. 69 Issue Nos. 3 & 4 Mar - Apr 2022 Mar - Apr Rs. 250/- - 2022

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

Circulation Audited by ABC

CONTENTS

Founded by:

Late Abdul Rauf Siddiqi

Editor:

Abdul Rab Siddiqi

Special Feature’s Editor:

Abdul Rafay Siddiqi

Managers:

Shoukat Hayat

Aftab Alam

*****

Editorial & Business Office:

Office M-2,

DADA Garden,

Plot No. 10,

Jamaluddin Afghani Road,

Sharfabad,

Karachi-74800.

Phone: 92-21-34893095

Auto Phone / Fax: 92-21-34893091

E-mail: arsidiqi@yahoo.com

*****

Editorial Representative in

Islamabad

Ajaib Malik

0300-5259936

Business Representative in

Islamabad

Waseem Ahmed Subhani

Mobile: 0333-5332280

Representative in Lahore

Usman Nadeem

Mobile: 0320-8435673

*****

Subscription Rates:

Annual Rs. 1,200/-

Foreign by Air Mail $75/-

*****

Publisher:

Abdul R. Siddiqi

Printer:

Chronicle Printers

Karachi

EDITORIAL

• PM Shehbaz challenges on economic and political fronts

• Pakistan to fine-tune petroleum policy to attract E&P investment

• Falling FDI is a matter of concern

ARTICLE & FEATURE

• Mian Shehbaz becomes 23rd PM of Pakistan

• 33 MPs take oath as cabinet members - By Ayaz Akbar Yousafzai

• Five 'band-aids' the new government must immediately apply to revive the

bleeding economy - By Sajid Amin Javed

• Potentials of the IT industry in Pakistan - By Dr. Muhammad Nawaz Iqbal

• Package for IT sector in Pakistan

• PIEDMC to promote industrialization in the Punjab

CEMENT INDUSTRY

• Pakistan cement dispatches fall in February and 8MFY22

• Lucky Cement plans a 34 MW captive solar power project in KPK

• Cement prices surge to Rs850

• Maple Leaf Cement to become the 4th largest player in Pakistan

• Pakistan's cement/clinker exports observe a mixed trend in 8MFY22

• Flying Cement gets a long-term mining lease

PORTS, SHIPPING & RAILWAY

• Work on $5bn Pak-Afghan-Uzbek railway kicks off

• PICT posts record revenue of Rs 11,099 million

• KPT organises seminar on ‘Marine Salvage’

• Gwadar Port to be utilised for Afghan transit trade

• KPT conducts security drill at harbour

• Pakistani freight train likely to reach Zahedan

• PNSC Group has managed to achieve an 18% increase in PAT

• PIBTL has released a financial report for the period ended Dec 31, 2021

Special Report

23 rd March Pakistan day

• President Dr Arif Alvi message on Pakistan Day

• Pakistan showcases military prowess at parade

LEATHER INDUSTRY

• Consul General of Pakistan in UAE inaugurated Pakistan Pavilion in APLF 22

• India leather records growth of 33.45% in 10MFY22

• Sri Lanka leather export falls

• UAE to provide duty-free facilities for leather

• High energy and an optimistic mood pervaded APLF’s special edition in Dubai

• Bangladesh leather industry exports increase in 8MFY22

REGULAR FEATURES

• Automobile News, Banking & Insurance News, People Events,

• Telecommunication News, Travel World, Steel & Allied Industry

5


TRADE CHRONICLE

Mar - Apr - 2022

We begin with the name of Allah the Magnificient

PM Shehbaz challenges on economic and political fronts

Pakistan’s economy mostly encompasses agriculture-based. It is the fourth largest cotton

producer, the fifth largest milk producer, eighth-largest rice producer, second-largest pea

producer, and fourth-largest sugar-cane grower.

Despite the above, our economy is passing through low waters just because of unchecked

turmoil on the political front, lack of consistent economic policies, rampant luxury items

import and slow growth in exports. Lately, the economy has become fragile due to rupee

depreciation, declining reserves, rising commodity prices, and revenue shortfalls. The

biggest mounting issues are the power sector circular debt and the gas sector.

From the

editor's

desk

Unfortunately, since Pakistan came into being in 1947, no elected prime minister has

ever completed their five-year terms in Islamabad, and Imran Khan is the latest casualty.

Muhammad Shehbaz Sharif became present PM to complete the remaining period

after Imran Khan’s departure. Let us see whether he completes his remaining time or

announces an early election as desired by Imran Khan and some other parties.

PM Shehbaz Sharif, in his opening speech, announced several measures by augmenting

the minimum wage at PKR 25,000 per month, a 10% increase in federal government

employees’ salaries from April 1st, 2022. Besides, the PM made the Benazir Income

Support card functional, launched a laptop scheme again for students, and vowed to

address high electricity prices. However, some of the decisions announced in the opening

speech could have been put on hold and will be reviewed in the upcoming budget.

Moreover, banking days have been increased to six per week, and all government officials/

bankers have been asked to work longer hours. These decisions indicate the extreme

pressure he must be feeling, but these announcements should have been made soon after

taking stock of the economy and not before that. The public had mixed reactions to these

packages.

PM and coalition government reportedly have inherited some formidable challenges, an

impossible task for his cabinet in the shortest period. These include, but are not limited

to, a worsening economic crisis, growing political turmoil, deteriorating relations with

the Western powers that PML-N can readily resolve, and the resurgence of militancy in

some parts of the country, experts viewed.

ABDUL RAB SIDDIQI

On top of all this, we have no idea whether the ruling coalition that consists of disparate

parties and groups with often-conflicting political and economic aims will stick together

until the elections are called, experts narrated apprehensively.

We endorse expert’s views that improving the economy requires tough decisions, such as

the immediate removal of the cap on electricity and petroleum prices and renegotiating a

new loan with the IMF, which will be hard, if not impossible, without repairing diplomatic

relations with the US and other Western powers.

With a growing current account deficit and foreign reserves falling to as low as $10.8

billion, the South Asian nation needs external finances. Finance Minister Miftah Ismail

rightly suggested that we need to cut expenditures and development funds and revive an

International Monetary Fund program on an urgent basis as Pakistan is waiting for the

IMF to resume talks on its seventh review of the $6 billion rescue package agreed in July

2019. If the review is approved, the IMF will release over $900 million and unlock other

external funding.

Our Finance Minister’s talks with International Monetary Fund will be an uphill task as

IMF has set initial conditions for the revival of the USD 6bn loan program, including “an

increase in fuel prices to break even, taxes restored, an amnesty scheme discontinued

for industries, circular debt reduced, power rates raised, and fiscal savings ensured” to

reverse the PTI government’s February 28 relief package completely.

A good suggestion from Karachi Chamber of Commerce and Industry (KCCI) President

Muhammad Idrees is that the new government and business people need to interact

6


TRADE CHRONICLE

to survive. We suggest the new

government engage with the private

sector to evolve a comprehensive

strategy for the country’s economic

revival to meet the multiple

challenges the economy was facing.

This included local and foreign debt,

rising inflation, the falling value of

Editorial Comments

Pakistan to fine-tune petroleum

policy to attract E&P investment

Pakistan’s import bill for the

petroleum group increased to US$

14.8 billion in the first nine months

of the current financial year 2022,

up by 96.09% on Year on Year basis,

indicated Pakistan Federal Bureau

of Statistics data recently. The

situation is likely to worsen because

of increased geopolitical tensions

that have forced Europe and the

US to increase their reliance on

Liquefied Natural Gas, causing LNG

spot prices to soar, rising by 30%

recently. Resultantly, increased global

demand will keep prices elevated in

the medium term.

A direct impact of increased LNG

prices is increased import bills, with

LNG constituting 24% of Pakistan’s

energy imports bill. At the same time,

recent defaults by suppliers will force

Pakistan to choose between higher

LNG prices or gas shortage locally.

On the other hand, as per the latest

hydrocarbon reserves data by PPIS,

oil reserves during Dec’21 have

reduced by 16% YoY, arriving at 223

million bbl compared to 266mn bbl

in Dec’20. The decline is attributable

to the decrease in oil reserves of

major fields. Likewise, total gas

reserves in Dec’21 dropped by 6% YoY,

settling at 19,986 billion cubic feet.

Falling FDI is a matter of concern

The State Bank of Pakistan (SBP) has

reported that the country received

Foreign Direct Investment (FDI)

amounting to $1.285 billion during

July-March of FY22 as against $1.311

billion in the same month of the

previous fiscal year (FY21), showing

a decline of about 2%. During the

period under review, overall FDI

inflows were $1.967 billion against

$682.4 million in outflows.

Experts believe that the country’s

the rupee, declining foreign exchange

reserves, growing fiscal imbalances

and dwindling foreign direct

investments.

Finally, and importantly, the

government needs to prepare a

budget in 35 to 40 days, with a primary

Gas reserves of areas such as

Qadirpur, Nashpa, Kandhkot,

Shahdadpur, Mari, and Uch

witnessed a fall of 14%, 8%,

7%, 6%, 5% and 5% YoY,

respectively. Presently, the country’s

total hydrocarbon reserves have a

reserve life of 15 years.

Pakistan has a strong desire to

augment oil and gas exploration

activities to meet energy challenges

in the long-term and cut the import

bills, a major concern in the trade

deficit.

It is engaging to note that the Ministry

of Petroleum, DGPC, had opened

bids for 14 onshore Blocks for grant

of Petroleum Exploration Rights

through open bidding on April 18,

2022, at Petroleum House, Islamabad.

The minimum investment to be

carried out by the Exploration and

Production (E&P) companies in

these Blocks will be over USD 70.2

million in three years. For blocks that

have discoveries, these companies

will make investments of several

hundred million dollars to develop

the production. Apart from E&P

activities, the successful companies

will also spend over USD 810,000 on

social welfare for the areas of their

respective Blocks.

It is further heartening to note that

Pakistan is considering amending

its petroleum policy to offer more

incentives to foreign local oil and gas

foreign exchange reserves are

depleting and have declined

to $17.28 billion, including

$10.849 billion of SBP and $6.178

billion held by commercial banks.

Therefore, the country needs huge

foreign inflows to build the depleting

foreign exchange reserves. The slow

in FDI can be attributed to COVID 19

and reportedly slow pace in CEPC,

and delay in advancing in the third

phase of projects.

A leading financial daily has

wisely encompassed the irritants

Mar - Apr - 2022

focus on revenue mobilisation and

curtailment of expenditure while also

supporting the lower strata of the

population. In addition, several IMF

conditions need to be incorporated

into the upcoming budget, which

Sharif’s rule can easily solve.

exploration and production firms.

Reportedly, changes are being made

in the new E&P policy draft, including

cutting the period of exploration

license from nine years to seven years

and reducing the appraisal of renewal

period from two to one year. Apart

from this, a better gas price has been

given to E&P companies to attract

more investment.

On a “negative” note, over the last

several years, the E&P activities in

Pakistan have significantly reduced,

and several companies have left the

country, resulting in the “increased

requirement for more foreign oil and

gas imports”, it’s reported.

The government is also vetting the

Draft Model Petroleum Sharing

Agreement as per Pakistan Petroleum

Exploration and Production 2012,

approved by the Council of Common

Interests (CCI). This draft agreement

will facilitate offshore oil and

gas exploration in Pakistan. The

government has sent the draft to the

Law Division, which will review it.

We hope Petroleum Minister in the

new government setup would take

the matter on a priority basis and

offer further incentives to attract

investments in the oil and gas sector.

Pakistan has a success ratio, and

there is a need for full exploration of

onshore and offshore areas on better

terms, conducive atmosphere and

conditions.

in attracting FDI and stated that

uncertainty is evil for foreign direct

investments. Political instability

and economic problems discourage

foreign investors: this is a general

observation in many countries in the

Middle East, Africa, and South Asia,

particularly Pakistan. The security

and law and order situation has been

a big deterrent in attracting foreign

investment to Pakistan.

The rising political volatility in the

country is not a good sign for foreign

investment. An even more important

7


TRADE CHRONICLE

uncertainty that has kept investors

at a distance has been inconsistent

policies with luck. Whether it is the

lack of diversification with all eggs

in one basket (Chinese CPEC) or the

lack of energy reflected in the Board

of Investments’ initiative to boost FDI,

foreign investment policy has often

come under fire.

We hope the government will pay heed

to the budget proposal of the Overseas

Investors Chamber of Commerce

and Industry (OICCI). The apex body

of foreign companies in Pakistan

has submitted comprehensive

taxation proposals for the upcoming

budget for the fiscal year 2022-

23, highlighting various measures

Mar - Apr - 2022

to facilitate business and FDI and

promote the ease of doing business

and documentation of the economy.

Besides broadening the tax base and

enhancing the revenue collection

to match the country’s economic

potential.

ABDUL RAB SIDDIQI

BUSINESS REPRESENRATIVE IN

PAKISTAN

ADVERTISEMENT BOOKING:

+92-21-34893095

abdul.rab.siddiqi@consultants.ft.com

NAME:

NAME of company:

address:

phone:

sign:

Get Your Own Copy of

TRADE CHRONICLE

On concessional rates

Subscription Rates: For one year Rs. 1,200/- and for

two years Rs. 2,000/-

Thus saving Rupess for 400/-

Mail the coupon today aling with your cheque to:

TRADE CHRONICLE

Office M-2, DADA Garden, Plot No. 10, Jamaluddin

Afghani Road, Sharfabad, Karachi-74800.

E

Phone: 92-21-34893095,

Auto Phone/Fax: 92-21-34893091,

E-mail: tradechroniclekhi@gmail.com

email:

date:

8


TRADE CHRONICLE

Mian Shehbaz becomes

23 rd PM of Pakistan

For the first time in the history of

Pakistan’s parliament, the entire

opposition cohort in the National

Assembly crossed over to the

government aisle following the

election of Shehbaz Sharif as the new

Prime Minister, on April 11.

Mr Sharif, who later took oath as the

country’s Premier, secured 174 votes

in a one-sided election in the National

Assembly following the en masse

resignation of Pakistan Tehreek-i-Insaf

(PTI) members.

According to the National Assembly

website, Mr Sharif will be the 23rd

prime minister of the country — not

counting caretaker set ups.

PML-N’s Ayaz Sadiq presided over

proceedings after Deputy Speaker

Qasim Suri, who was initially chairing

the sitting, said his conscience did not

allow him to conduct the session.

Soon after the announcement of the

result by Mr Sadiq, Mr Sharif went up to

the parliamentary leaders of coalition

partners to thank them for supporting

him in the election, as the galleries

echoed with slogans in his favour.

In his maiden speech as the country’s

Prime Minister, Mr Sharif announced

that his first task would be to call

a meeting of the parliamentary

committee on National Security to

receive an in-camera briefing on the

issue of the alleged “threat letter” in

order to end that controversy once for

all.

Terming the country’s economic

situation “very serious”, PM Sharif

emphasised the need for hard work to

improve the economy.

He lamented that the previous

government had rejected his proposal

of introducing a “charter of economy”.

He announced a slew of new measures,

chief among which was an increase in

the minimum wage to Rs25,000 from

April 1 onwards. He vowed to make

Pakistan a “paradise for investments”

and appealed to investors to increase

the salaries of their employees whose

monthly income was Rs100,000 or less.

He also announced a 10 per cent

increase in the pension of civil and

military pensioners. This, too, would

be implemented from April 1, he said.

Moreover, Mr Sharif said wheat flour

would be made available at cheaper

rates under a Ramazan package.

Further, he said, they would address

the high prices of electricity and take

measures for the progress of smaller

provinces.

The newly-elected Premier

announced that the Benazir Card

scheme, which was renamed in the

previous government’s tenure, would

be reintroduced, adding that the

programme would be expanded to

cover education as well.

Criticising the PTI government for its

foreign policy decisions, he lamented

that Pakistan’s strategic partners and

friends had abandoned it.

Underlining the importance of having

good ties with China, he alleged that the

previous government had attempted

to weaken the friendship between

Islamabad and Beijing. He reassured

the house that his government would

restart progress on the China-Pakistan

Economic Corridor.

Meanwhile, businesspersons hailed

the election of Shahbaz Sharif as Prime

Minister of Pakistan and expressed

hopes that the veteran businessman

would stabilise the crumbling economy

by dealing with rupee devaluation,

rising debts, and taxation issues.

SAARC Chamber of Commerce

and Industry (SAARC CCI), Lahore

Chamber of Commerce and Industry

(LCCI), Karachi Chamber of Commerce

and Industry (KCCI), and Businessmen

Group congratulated Sharif for his

success and pinned hopes on him for

delivering on the economic front.

KCCI urged the federal government

to pay attention to issues of Karachi,

particularly infrastructure, gas,

electricity and water crises, as the

city contributes more than 65 percent

revenue to the national exchequer,

more than 95 percent to the provincial

kitty and 54 percent in terms of exports

despite all odds.

They suggested that the PM should

9

Mar - Apr - 2022

Mian Muhammad Shehbaz Sharif

(born 23 September 1951) is a Pakistani

politician serving as the 23rd and

current prime minister of Pakistan, in

office since 11 April 2022.

He is the current President of the

Pakistan Muslim League (N) (PML-N).

Previously in his political career, he

served as the Chief Minister of Punjab

three times, making him the longestserving

Chief Minister of Punjab.

Shehbaz was elected to the Provincial

Assembly of the Punjab in 1988 and

to the National Assembly of Pakistan

in 1990. He was again elected to the

Punjab Assembly in 1993 and named

Leader of the Opposition.

He was elected as Chief Minister of

Pakistan's most populous province,

Punjab, for the first time on 20

February 1997. After the 1999 Pakistani

coup d'état, Shehbaz along with his

family spent years of self-exile in Saudi

Arabia, returning to Pakistan in 2007.

Shehbaz was appointed Chief Minister

for a second term after the PML-N's

victory in Punjab province in the 2008

Pakistani general election.

He was elected as Chief Minister of

Punjab for the third time in the 2013

general election and served his term

until his party's defeat in the 2018

general election.

During his tenure as chief minister,

Shehbaz enjoyed a reputation as

a highly competent and diligent

administrator. He initiated ambitious

infrastructure projects in Punjab and

was noted for his efficient governance.

Courtesy - WIKI

gather a team of economic experts,

and reliable and honest members of

the business community, to prudently

guide the government in formulating

numerous policies directly or indirectly

affecting trade and industry.

Courtesy - Media Reports


TRADE CHRONICLE

33 MPs take oath

as cabinet members

By Ayaz Akbar Yousafzai

The 33-member federal cabinet

comprising members of the

mainstream political parties of the

country took oath at a swearing-in

ceremony held in Islamabad at the

Aiwan-e-Sadr, recently.

Chairman Senate Sadiq Sanjrani

administered oath to the cabinet

members, a week after he gave oath

to the Prime Minister Shehbaz Sharif

as the head of the government. The

total strength of the federal cabinet at

present is 38. Two MPs have not taken

the oath yet.

PPP Chairman Bilawal Bhutto Zardari

has not taken the oath as foreign

minister, but he is expected to assume

his office after he returns following a

meeting with PMLN supremo Nawaz

Sharif from London. Shahid Khaqan

Abbasi, who has been named the

minister for energy, will also take

the oath in the next phase, which is

expected in a few days.

The new ministers include Minister

of Defence Khawaja Asif, Minister of

Planning and Development Ahsan

Iqbal, Minister of Interior Rana

Sanaullah, Minister of Education

and Professional Training Rana

Tanveer Hussain, Minister of Climate

Change Sherry Rehman, Minister of

Information Marriyum Aurangzeb,

Minister of Railways Khawaja Saad

Rafique, Minister of Water Resources

Syed Khursheed Shah, Minister of

Commerce Syed Naveed Qamar,

Minister of Health Abdul Qadir Patel,

Minister of Poverty Alleviation and

Social Safety Shazia Marri, Minister

for Industries Syed Murtaza Mahmud,

Minister for Overseas Pakistanis and

Human Resource Development Sajid

Hussain Turi, Minister of Human

Rights Ehsan-ur-Rehman Mazari,

Minister of Privatization Abid Hussain

Bhayo, Minister of Communication

Asad Mahmood, Minister of Housing

and Works Abdul Wasay, Minister of

Religious Affairs

and Interfaith

Harmony Mufti

Abdul Shakoor,

Minister of

S A F F R O N

Muhammad

Talha Mahmood,

Minister of

Information

Technology

Syed Amin-ul-

Haque, Minister

of Maritime

Affairs Syed Faisal

Ali Subzwari,

M i n i s t e r

of Defence

Production

Muhammad Israr

Tareen, Minister

of Narcotics

Control Shahzain

Bugti, Minister

of Food Security

and Research

Tariq Bashir

Cheema.

Sardar Ayaz

Sadiq, Khurrum Dastagir Khan,

Murtaza Javed Abbasi, Mian Riaz

Hussain Pirzada also took oath as

ministers but were not assigned

portfolios. Meanwhile, Aisha Ghaus

Pasha has been given the portfolio of

state minister for finance and revenue

and Hina Rabbani Khar state minister

for foreign affairs. Abdul Rehman Khan

Kanju also took oath as state minister

but wasn’t allocated a portfolio.

Similarly, Qamar Zaman Kaira has

been notified as adviser to the PM on

Kashmir Affairs and Gilgit-Baltistan.

Other two advisers are Amir Muqam

and Aon Chaudhry.

Sanjrani administered the oath,

instead of President Arif Alvi after he

had excused himself from performing

his constitutional duty.

Besides Prime Minister Shehbaz Sharif,

the event was attended by senior

politicians, including Bilawal Bhutto,

Mar - Apr - 2022

former prime ministers Yusuf Raza

Gilani and Raja Pervaiz Ashraf, and

a large number of parliamentarians,

party workers and government

officials.

The new cabinet mainly comprises

members of the Pakistan Muslim

League-Nawaz (PMLN), Pakistan

Peoples Party (PPP), Jamiat Ulemae-Islam-Fazl

(JUI-F) and Muttahida

Qaumi Movement (MQM). One

member each from the Balochistan

Awami Party (BAP), Jamhoori Watan

Party and Pakistan Muslim League-Q

also joined the cabinet. However, the

Balochistan National Party stayed

away from the coalition cabinet.

The President House in a statement

issued prior to the oath-taking

ceremony said that President Dr Arif

Alvi had given formal approval to

the names of the federal and state

ministers and advisers.

Courtesy - The News

Marriyum Aurangzeb

Information and

Broadcasting

Sherry Rehman

Climate Change

as Federal Minister

Shazia Marri

Federal Minister

for BISP

Hina Rabbani Khar

State Minister

for Foreign Affairs

Aisha Ghaus Pasha

State

Minister

10


TRADE CHRONICLE

Five 'band-aids' the new government must immediately

apply to revive the bleeding economy

By Sajid Amin Javed

The National Assembly finally elected

a new Prime Minister following over a

month of political turmoil, narrowly

escaping a constitutional crisis that

threatened to pit the various arms of

the state against each other. There

is, however, a much bigger challenge

awaiting the newly formed coalition

government, headed by Shehbaz Sharif

— how to revive a haemorrhaging

economy.

That the economic crisis is dire is no

secret — even the Supreme Court,

while hearing arguments from all

parties, questioned Shehbaz how he

planned to tackle it. In response, the

then opposition leader pointed to a

"Charter of Economy", which he had

presented in the National Assembly in

2018.

Undoubtedly, it will take much more

than a charter to address the myriad

of problems plaguing the economy

— the looming current account and

fiscal imbalances, depreciating rupee

and inflation — all of which require an

immediate response.

The new government will have to make

some difficult choices to correct these

external and internal imbalances.

Given the nature, severity and speed of

the crisis, the policies to correct these

imbalances need to be put in place

immediately in a way that the burden

is not shifted to an already vulnerable

population on the lowest rungs of the

economic ladder.

This requires a balanced mix of

policies, which on the one hand,

correct these imbalances and on the

other, compensate and protect the

poorest of the country from the side

effects. Therefore, the new government

needs to develop a consensus on

a minimum immediate economic

agenda. This is particularly critical for

at least three reasons:

• It is a government of allies, each of

whom has very different priorities,

agendas and approaches towards the

economy. The absence of a common

economic agenda, therefore, can delay

relief for the common man.

• Given the serious political volatility,

the government may choose

prioritising accountability over the

economy. This will further exacerbate

the problems faced by citizens.

• A government preparing for elections

will be unwilling to take any economic

policy measures that may cost votes.

For example, it may opt to maintain

the subsidies on petrol and energy

prices from the PTI government's relief

package to please the voter base and

avoid taking the blame of adding to

people's problems. This will, however,

worsen the already deteriorating fiscal

imbalances.

Keeping these challenges in mind,

the following minimum immediate

economic agenda for the new

government is proposed:

Keep politics out of economics

The country has already seen much of

politics, with the situation becoming

increasingly volatile over the last year

and a half. What the country and the

market need now is stability.

While important, issues like

accountability and controlling

corruption can be put on hold until a

fresh mandate is taken via elections.

The political turmoil has already done

a great deal of damage to the economy,

adding to the sufferings of the public at

large. The focus must now shift towards

actions concentrated on improving the

lives of the common man.

Make tackling inflation a priority

The government must think it has

a tenure of 100 days only and avoid

introducing any ambitious agenda of

reforms and new programme rollouts.

Its economic agenda must be focused

on improving the lives of the common

man immediately. In short, the

government must make controlling

inflation its number one priority.

According to data from the Pakistan

Bureau of Statistics (PBS), consumer

price index (CPI) based inflation stood

at 12.72 per cent in March, compared

to the same month in the previous

year. It is important to note that this

number may be underreported due to

the ousted premier’s relief measures

of freezing energy and petrol prices.

Mar - Apr - 2022

Adjusted for this, the actual inflation

may be higher — at somewhere

around 15pc. Worryingly, the sensitive

price index, which includes the prices

of essential food items, was recorded at

17.87pc year-on-year in the first week

of April, according to the Pakistan

Bureau of Statistics.

While corrective measures at a more

fundamental level are essential to

curb inflation, immediate action

is warranted. The government

can immediately put in place

administrative measures to keep a

check on the artificial price hikes of

goods, particularly food products.

It can also use district level price

control committees to stem undue

profiteering.

The district managers — the

commissioners and assistant

commissioners — must be strictly

tasked and monitored to curb

hoarding and smuggling of essential

commodities. Random market visits

of price monitoring officers to strictly

implement official prices at the local

level can help keep a check on artificial

price hikes.

In addition to other drivers, a loose

commitment to control prices and

inflation will make it difficult to slow

down inflation.

The newly formed government must,

therefore, clearly convey and through

its actions, prove that controlling

inflation is its foremost priority and

that it will not let anyone distort it. The

online price control and monitoring

system developed by the Pakistan

Information Technology Board (PITB)

can also be used to monitor artificial

price hikes at district wholesale and

local markets to achieve this goal.

Continuing existing social

programmes that benefit people

The government must continue its

predecessor's beneficial programmes.

If anything, the country's most

vulnerable population must be

provided social protection in a more

effective way. For example, cash

payments to poor households may be

made monthly, instead of quarterly

— the latter may not be the best

approach in a consumption smoothing

programme.

While unpopular, the new government

11


TRADE CHRONICLE

must also provide targeted subsidies

instead of politically driven blanket

subsides such as petrol price cuts

that least benefit the poor. Cutting

unproductive subsidies will be the new

government's biggest challenge.

Complete the IMF programme

Pakistan has had a bumpy ride with

the IMF Extended Fund Facility so far.

The politics around the programme,

deviations and departures from

commitments and priors has already

cost us much. The outgoing PM’s last

relief package was virtually an exit

announcement from the Fund, with

talks on the seventh review in jeopardy

yet again.

It may be an unpopular decision,

but exiting the IMF programme at

this point will further exacerbate

economic woes. The country will find

it very difficult to borrow from the

international market, and amid the

record high current account deficits,

the Fund closure can increase pressure

on the rupee.

Avoiding any populism, the

government must therefore sit with

the IMF. It may clearly communicate

that as it is here for a very short term, it

can only deliver on some of the doable

conditions.

For example, a petrol and energy price

freeze until June is not viable. The

government must gradually open the

price cap. On the other hand, the lender

must be convinced that some of its

proposals to control the fiscal deficit,

such as a flat 30pc tax on the income

bracket between Rs0.1 million to Rs1

million, are difficult to implement at

this point in time.

Reconsider positions on policy issues,

such as SBP amendment act

The government must understand that

low and stable inflation is essential to

improve living standards and attain

sustainable economic growth. Only an

effective monetary policy, with clear

targets and the autonomy to apply

required instruments, can deliver

Mar - Apr - 2022

this. The SBP Amendment Act 2021

provides this opportunity.

Admittedly, the bill was presented and

passed without taking the opposition

on board. Based on its position taken

as the opposition, the government

must not act to reverse or revoke this

bill. It will create huge economic policy

uncertainty, which will affect the public

at large in the decades to come. There

is substantial margin for improvement

in the law, but it is a step in the right

direction. This also holds for other

policies, such as flexible exchange rate

etc.

To sum up, the new government may

have come in after months of political

turmoil, but its work is just beginning.

It must prioritise the provision of relief

to the people of Pakistan. This will

require a clearly defined minimum

economic agenda, besides ensuring

that the policies to achieve this agenda

are put in place without further delay.

Courtesy - DAWN

PIA’s overall revenues take

a dip of only 10pc in 2021

PIA has announced its annual

financial reports for the year 2021. The

overall performance of PIA remained

challenging in the first three quarters

and getting back to profitability in the

fourth quarter.

The airline’s major revenue streams

remained affected during most part

of the year with Saudi Arabia (Hajj

& Umra), Gulf & UAE, China and

Malaysia as routes were suspended

due to Covid related travel restrictions

and Europe & UK discontinued due to

EASA ban. PIA remained heavily reliant

on domestic markets resultantly loss of

Q Airways gears up to start

domestic flights by August

Q Airways is gearing up to start its

domestic operations in Pakistan

from July or August after fulfilling

the conditions and receiving the air

operation certificate. The airline has

already been issued a regular public

significant revenues compared with

the same period, previous years. KSA

and UK contribute around 65 percent

of the total revenue chunk of PIA.

Hence, despite the setbacks, PIA’s

overall revenues only took a dip of

10 percent, from Rs94 billion in 2020

to 86 billion in 2021. The resultant

operational losses were also Rs15

billion in 2021, mainly because of the

reduced revenues. Despite the route

restraints, PIA team did not sit back

and continued its efforts to generate

revenues from exploring newer

markets.

Interestingly, PIA has shown

remarkable comeback in the fourth

quarter when travel restrictions on

transport (RPT) license.

Chief Operating Officer S Kamran

Hasan said, “We will initially be starting

with three A320 aircraft. We want to

12

KSA, UAE and Gulf were comparatively

eased up. PIA in first three quarters

achieved a revenue of Rs49 billion

where as in the last quarter alone

posted revenues of Rs37 billion

consequent to the resumption of traffic

on these routes. PIA has also posted

an operational profitability of Rs2.125

billion in Q4 which clearly shows the

early signs of recovery from Covid.

expand after that and we would also try

for international flights and increase

our fleet to another two to three wide

body aircraft,” he added.

With Q Airways and Fly Jinnah

expected to start their operations soon,

Pakistan’s aviation industry would have

half a dozen airlines including PIA, Air

Blue, Air Sial and Serene Air.


TRADE CHRONICLE

Potentials of the IT

industry in Pakistan

By Dr. Muhammad Nawaz Iqbal

In Pakistan, information technology

is a rising industry with the potential

to grow even more in the future. The

Ministry of Information Technology

of the Government of Pakistan is in

charge of IT-related issues. During the

recent decade, Pakistan's government

has provided incentives to IT investors,

resulting in the expansion of the IT

sector. Between 2003 and 2005, the

country's IT exports increased by

roughly 50% to around 48.5 million

USD. In its 2014 Global Information

Technology Report, the World

Economic Forum ranked Pakistan

111th out of 144 nations in information

and communication technology

development.

Pakistan's Prime Minister formed

and chaired a National Task Force

on "Technology-Driven Knowledge

Economy." The Task Force's Vice

Chairman is Atta-ur-Rahman, and the

Task Force has initiated various national

programmes connected to information

technology. Artificial Intelligence is

one significant area of attention, and

the Task Force is establishing several

Centers of Excellence in colleges

across the country. The debut of 3G/4G

technologies from 2013 to 2018 ushered

in a historic upheaval in the sector, and

the IT business is booming. According

to Bloomberg, Pakistan's technology

sector had a record year in 2021 due to

the COVID-19 pandemic and the 2021

China tech crackdown. As part of its

efforts to build an "information age"

in Pakistan, the government has highly

Package for IT sector

in Pakistan

The Federal government envisages

forex inflows of $1 billion annually

for companies/freelancers, besides

bringing internationally parked foreign

currency to Pakistan, after the Prime

Minister announced an incentives

package for IT sector recently.

The govt announced 100 percent tax

exemption for both companies and

freelancers in the IT sector, 100 percent

foreign exchange exemption, and 100

percent exemption from capital gain

tax for investments in IT startups.

Federal Minister for Information

Technology and Telecommunication

valued information technology. The

government wants to raise productivity

in the public sector, improve the

country's IT infrastructure standards,

and use IT as a management tool

to promote good governance by

focusing on information technology's

technological growth. In Pakistan,

significant progress has been made

in developing effective computerised

e-government systems for major

departments such as the police, law

enforcement agencies, and district

administration.

In Pakistan, software development

is a rapidly growing field, and the

government has launched several

initiatives to promote software

development and exports. Pakistani IT

firms have started building software for

various industries and services. Lowcost

software solutions created locally

are accessible in schools, hospitals,

supermarkets, and other companies.

Major control systems, such as ERPs,

are also designed for large businesses

that produce textiles, medicines, food

and drinks, and other products.

The government of Pakistan has a

different definition of broadband

than the rest of the industrialised

world. Pakistan, for example,

defines broadband as always being

128 kbit/s, whereas the FCC in the

United States defines it as 20 Mbit/s.

Or a 159-fold difference in speed

(15900 percent). The Government of

Pakistan (GoP) recognised in 2015

that telecommunications had become

one of the most important sectors

in the economy, contributing to

society's well-being and contributing

Syed Aminul Haque in his

previous tenure termed the

package an historic which would

help in achieving the export

target of $5 billion by 2023.

Barkan Saeed, Chairman Pakistan

Software Houses Association for

IT and ITeS (PASHA) told media

that the latest tax exemption

announced by the prime minister

will increase the IT/ITeS exports.

This benefit along with the cash

reward benefit announced last

year will help in increasing IT/

ITeS exports.

The IT companies and freelancers

have been allowed to open USD bank

accounts with 100 percent retention

13

Mar - Apr - 2022

significantly to GDP, and thus issued a

Telecommunication Policy 2015.

The e-commerce business in

Pakistan is estimated to be worth

$4 billion. According to the Oxford

Dictionary, E-commerce is defined

as business transactions carried out

electronically over the Internet. With

the launch of Beliscity.pk in 2001,

Abid Beli established Pakistan's first

e-commerce enterprise. Since then,

the market had gradually increased

until 2012, when the sector reached a

turning point.

In 2018, the Pakistani government

reformulated its Digital Pakistan

Policy to reflect its increasingly

transformed role across all sectors of

socio-economic development and

their accelerated digitisation and

transformational modernisation into

integrated components of a holistic

knowledge-based economy. One

of the fastest-growing industries

in the country is information and

communications technology. Only 1.3

percent of the population accessed the

Internet in 2001. By 2006, it had risen

to 6.5 percent, and by 2012, it had been

increased to 10.0 percent. Pakistan has

a 54 percent internet user rate as of July

2021, which corresponds to around 118

million persons with internet access.

and also allowing them to send money

abroad. This facilitation may have the

same effect as Roshan Digital account,

which are helping bring billions of

USD to Pakistan.


TRADE CHRONICLE

PIEDMC to promote

industrialization in the Punjab

Punjab Industrial Estates Development

and Management Company (PIEDMC)

is a Company setup under section 42 of

the Companies Ordinance, 1984(now

Companies Act, 2017). PIEDMC is

an autonomous, not for profit entity

owned by the Government of Punjab

and is managed by a Board of Directors

(BOD) comprising private sector

industrialists and ex-officio members.

PIEDMC is a successful example of a

Public-Private Partnership.

Punjab Industrial Estates

Development & Management

Company (PIEDMC) was formed

to promote industrialization in the

province of Punjab. PIEDMC follows

a self-sustaining model to develop

industrial estate in every District of

Punjab Province.

Quaid-e-Azam Business Park

The vision of PIEDMC:

To follow the public-private

partnership model and bring less

developed areas of Punjab into the

mainstream, create jobs, alleviate

poverty & contribute to sustainable

GDP growth. Also, to abide by

environmental laws & comply with the

WTO regime.

The mission of PIEDMC:

To develop a chain of new industrial

estates dynamically and innovatively

by capitalizing on proposed & existing

industrial and agricultural strengths of

Punjab and Pakistan

Objective:

• To provide international standard

state of the art infrastructure.

• Promote rapid industrialization.

Rahim Yar Khan Industrial Estate

Mar - Apr - 2022

• Enforcement of Environmental

Compliance.

• Push for sustainable GDP growth.

• Bring least developed areas into

the mainstream.

• Alleviate poverty.

• Creation of employment

opportunities.

• Provision of electricity, gas, power

plant, CETP & security.

• Up-gradation of existing Industrial

Estates/Parks/Cluster.

• Foreign collaborations to attract

FDIs.

• Help in the colonization of

developed industrial estates.

Infrastructure and Facilities provided

by PIEDMC

Vehari Industrial Estate

Bhalwal Industrial Estate

PIEDMC estates have infrastructure

that is comparable to any modern

industrial estate globally. After

analyzing the needs of local industry,

PIEDMC has ensured the availability of

the following amenities:

• Reinforced Concrete Road

Network

• Underground Sewerage System

• Underground Electricity

Distribution System

• Walled industrial estate with

limited entry/exit points.

• High Pressure Gas Pipelines

• Potable Water

• Telecommunications System

• Estate Managed Electrical

Distribution System.

• Fully Equipped Fire Station

• Computerized Weigh Station

• Information Signages

• Technical Training Facilities

• Estate Owned Security

Arrangements.

• Hospital / Emergency Medical

Services (Social Security)

• Mosque

• Petrol Stations.

HEAD OFFICE:

042-35297203-6 | 042-35297207 | 042-35297207

info@pie.com.pk

Punjab Industrial Estates Development and Management Company,

Commercial Area (North) Sundar Industrial Estate, Raiwind Road, Lahore.

14


TRADE CHRONICLE

Mar - Apr - 2022

Pakistan cement dispatches

fall in February and 8MFY22

All Pakistan Cement Manufacturers

Association (APCMA) released

disappointing domestic and export

dispatch data for February and 8MFY22

as some negative developments

hit the cement industry. Businesss

sentiment was low as the industry

sees burgeoning coal prices, a cut in

public sector development funds by

Islamabad to make up losses for the

freezing of oil prices and lowering

power tariffs for the next four months.

In addition, there have been falling

prices of cement scripts in local

markets for the last few days.

The total dispatches have recorded

a fall of 4.8 per cent in February 2022

to 4.36Mt against 4.57Mt dispatched

during the same month of last fiscal

year. Out of this total, 3.95Mt was

delivered locally compared to 3.96Mt in

February 2021, showing a reduction of

0.2 per cent, while exports dispatches

Lucky Cement plans a 34 MW

captive solar power project in KPK

Lucky Cement Limited and Reon

Energy have announced recently a 34

MW captive solar power project with

a 5.589 MWh Reflex energy storage.

The project set to be installed at

Lucky Cement’s Pezu plant in Khyber

Pakhtunkhwa will hold Pakistan’s

largest on-site captive solar plant

suffered a massive decline by 34.2

per cent as the volumes reduced

from 616,030t in February 2021

to 405,489t in February 2022.

In February 2022 north-based cement

mills dispatched 3.214Mt cement in

domestic markets, showing a reduction

of two per cent against 3.278Mt

dispatches in February 2021. Southbased

mills shipped 740,595t cement

in local markets during February 2022,

which was 8.4 per cent higher than

the transmissions of 683,384t during

February 2021.

Exports from northern mills massively

declined by 78.1 per cent as the

quantities reduced from 186,595t in

February 2021 to 40,902t in February

2022. Exports from the south also

decreased by 15.1 per cent to 364,587t

in February 2022 from 429,435t during

the same month last year.

Dispatches in 8MFY22

During the first eight months of the

current fiscal year, 8MFY22, total

cement dispatches (domestic and

exports) were 35.78Mt, 5.8 per cent

lower than 37.95Mt dispatched during

the corresponding fiscal year. Further

analyses indicate that domestic uptake

of the commodity reduced by 0.6 per

cent to 31.42Mt from 31.61Mt during

July-February 2021. In contrast, exports

during the same period declined by

31.4 per cent to 4.34Mt from 6.33Mt

during July-February 2021.

and the largest ever energy

storage solution.

Lucky Cement Limited

becomes the third such Company

in Pakistan to install Reflex energy

storage solution.

The 34 MW, solar PV project is

expected to produce approximately 48

GWh (Gigawatt hours) annually. The

output energy will be

used on-site, resulting

in substantial savings

for the Company in the

cost of fuel and cutting

around 29,569 Tonnes

of CO2 equivalent

emissions annually.

Cement prices surge to Rs850

Sky-rocketing coal prices, squeezed

supplies and other similar issues have

caused a surge in cement prices that

has subsequently led to an increased

cost of construction. In the last 60 days

(since Jan 15), the per-bag cement

price has increased by Rs160 and it

may further jump by another Rs200

in the retail market within the next 30

days or so, media has learnt.

“In January, the per-bag price was

Rs690 that has now reached Rs850.

It is likely to touch Rs1,050 if the coal

supply crisis prolongs,” Muhammad

Wasiq, a leading cement dealer in

Lahore, told Dawn on Monday.

There are 25 cement factories in the

north and south of the country with

an adequate manufacturing capacity

to meet domestic demands. “Both

electricity and coal make up about

50 to 65pc of the total cost incurred

on cement production,” an industry

source explained.

He said the price of coal being imported

from South Africa, Indonesia, Ukraine

and other western countries once

surged to $500 per tonne, forcing

traders to halt the imports. Later, the

price gradually started decreasing.

But still, the per-tonne price of $375

was very high. “In 2003, the per-tonne

coal price was just $35," he said.

Courtesy ( DAWN )

Speaking of the project, Mr Noman

Hasan, Executive Director, Lucky

Cement, stated Company has always

ensured to introduce and adopt the

latest technologies in line with its vision

of promoting sustainable business

practices. This advancement will not

only enhance our plant’s efficiency but

will also support in curtailing Carbon

emissions.”

This will improve the reliability of

the power system by absorbing the

variations of the Solar Plant and

improve the overall generation

efficiency by shutting down 20 MW

of fossil fuel generation during the

daytime whilst keeping the critical

spinning reserve intact.

15


TRADE CHRONICLE

Maple Leaf Cement to become the

4th largest player in Pakistan

Maple Leaf Cement Company

(MLCF) is expecting to complete the

line 4 expansion at the existing site

in Iskanderabad, Mianwali district,

Pakistan, in October 2022. This will

lead the Company to become the 4th

largest player in the industry with a

single site capacity of 7.7Mt.

Addressing a Pakistan Mid Cap

Conference 2022 organised by research

house – Topline recently, Group

Director Finance Maple Leaf Group Mr

Mohsin Naqvi, disclosed the details of

the expansion plan and added that the

overall overhead cost would be lower

in this new line, as this expansion is

brownfield.

MLCF had signed a contract with

Chengdu Design & Research Institute,

China, to supply a 7,000tpd grey

clinker line in late March last year.

The Company is also considering

enhancing the white cement line in the

future. White cement has contributed

around 10% in sales revenue, and 20%

in profits as the product offers healthy

margins.

Solar plants

The Company has installed 5MW solar

plants to augment energy supplies

Pakistan's cement/clinker exports

observe a mixed trend in 8MFY22

Pakistan's cement and clinker exports

have observed a mixed trend in the

first eight months of FY21-22. During

a presentation, Mohsin Naqvi, Group

Director Finance of Maple Leaf Group

– the parent company of Maple Leaf

Cement Co (MLCF), has stated that

the company is not foreseeing robust

growth in export given higher sea

freight charges. Hence, the negative

trend was also reflected in cumulative

export data.

and would further add 7.5MW

solar plants by April 15, 2022.

Coal supply

Ukraine/Russia war issue has

disturbed the coal supply to Pakistan.

The price of coal imported from South

Africa, Indonesia, and other western

countries surged to $500t, forcing

traders to halt imports. Then, the price

gradually started decreasing, but still,

the $375 was high. Northern cement

producers are eying Afghnsitan supply.

The cement industry in the north

has partially shifted toward Afghan

and local coal, given th e spike in

Richard Bay coal prices. The Company

anticipates that Afghanistan would

ramp up their production output, given

the source of income in Afghanistan

is very low. There is an inflow of 250-

300t/month of Afghani coal imports in

Pakistan.

Financial performance in 1HFY22

During 1HFY22, its consolidated

profit stood at PKR 2.757bn as against

PKR1.625bn for the corresponding

period last year, representing an

increase of 70 per cent.

Local/export sales

Total sales volume of 2.406Mt achieved

in 1HFY22 depicts a decrease of 4.51

The Pakistan cement industry earned

US$179.44m in export revenue by

dispatching 4.749Mt of cement and

clinker overseas in the 8MFY21-22 (July

2021-February 2022), compared to

US$183.19m from 5.476Mt of exports

in the year-ago period. As a result, the

sector saw a slide of 2.1 per cent in

dollar terms but reported a doubledigit

decline of 13.2 per cent

in volume during the export

period. However, exports

valued in Pakistani rupees saw

a growth of 3.3 per cent to PKR30.85bn

(US$171.7m) during this period.

On the contrary, in February 2022

alone, export revenues increased 7.9

per cent MoM to US$18.52m on the

shipment of 433,780t, compared to

US$17.15m from 393,607t of exports in

January 2022. The quantity increased

by 10.2 per cent during this period.

However, when compared with

February 2021 earnings of US$19.52m

from 537,452t, this represented a drop

of 5.1 per cent and 19.3 per cent YoY in

value and quantity, respectively.

Pakistan has been exporting clinker/

cement to Bangladesh, Sri Lanka,

Afghanistan, Madagascar, South

Africa, Tanzania and India. The export

to India was suspended for the last few

years.

Mar - Apr - 2022

per cent over 2.520Mt sold during

the corresponding period last year.

Domestic sales volume was 2.336Mt,

defining almost the same level of

demand, with slight pressure on

cement consumption in the local

market compared to the corresponding

period last year.

The Company’s export volumes

decreased by almost 52.60 per cent

to reach 70,020t from 147,707t in the

corresponding period. This decline is

mainly attributable to the Afghanistan

market due to the slow economic

activity post-American departure from

the country and low margins.

Further, cement dispatches to the rest

of the world are still not feasible due

to high production costs in Pakistan

compared to the global market and

increased shipping costs. Mr Irfan said

manufacturers are investing in clean

energy solutions to minimise the cost

of cement manufacturing.

Flying Cement gets a longterm

mining lease

Flying Cement Company Limited

(FLYNG) has informed Pakistan

Stock Exchange (PSX) recently that

the Directorate General of Mines &

Minerals (Punjab) has granted the

Company a long-term mining lease

for Limestone over an additional area

of 1,765 acres of land situated near to

factory site, Dhok Meharwal in District

Khushab, Punjab.

This will add remarkable value

to the Company’s vision in the

implementation plan of achieving

constant future growth.

Accordingly, the Company would

be able to implement its business

growth plan by further expanding its

operation shortly, which will result in

better profitability and add significant

value to the shareholders’ equity. "

16


TRADE CHRONICLE

Mar - Apr - 2022

Federal Minister for Maritime Affairs, Syed Faisal Ali

Subzwari, visited KPT Head Office for introductory briefing

after taking Oath as Minister Maritime Affairs. The Minister

was given warm reception by Chairman KPT and GM’s upon

arrival.

Work on $5bn Pak-Afghan-

Uzbek railway kicks off

Landlocked Uzbekistan has launched

the construction of $5 billion

(estimated cost) Trans-Afghan Railway

Line project to access Pakistan’s major

seaports, which will boost regional

connectivity and trilateral trade, a

statement said recently. On February

2, 2022, these three countries in

Tashkent agreed to a roadmap for

the construction of 600-kilometrelong

rail project connecting Pakistan,

Uzbekistan, and Afghanistan (Mazar-i-

Sharif-Kabul-Peshawar railroad).

"This Trans-Afghan Railway project

is the most economical and shortest

route connecting Central Asia with

Pakistani ports of Karachi, Gwadar,

and Qasim," said Muhammad Azfar

Ahsan, former Minister of State and

Chairman Board of Investment (BOI)

while speaking at the Trilateral Working

Meeting in Uzbek city of Termez.

“The route to Pakistan has received the

most attention owing to its feasibility.

In this regard, the Termez-Mazare-Sharif-Kabul-Peshawar

railway

project could be a game changer for

the region's future.” He underscored

that its geography makes Pakistan the

shortest, most economical, and easiest

land route for Central Asia to access

Arabian Sea.

PICT posts record revenue

of Rs 11,099 million

According to the Annual Report of

Pakistan International Container

Terminal Limited (PICT) for the year

ended December 31, despite being

grappled by a multitude of challenges

such as Covid-19 disruptions in global

supply chains, port congestions, and

low vessels' schedule reliability, the

Company managed to handle 476,577

containers as compared to 394,458

containers dealt with during the last

year and thereby outgrew the market

growth and increasing its market share

to 20%.

Excess capacity available with the

competitors remains a challenge

mitigated through various commercial

and operational activities.

During the year, the Company marked

a milestone by handling the 10-Million

TEU since its inception. This milestone

is your Company's expression of

commitment to supporting the

country's economic resilience. As we

continue to build our legacy, our vision

to become the container terminal of

choice in Pakistan's busiest port city

resonates with our conscious efforts

17

Federal Minister, Syed Faisal Ali Subzwari, visited PNSC

Head office. The Chairman PNSC and Executive Directors

welcomed the honourable Minister and briefed about the

current and future projects of the company.

and focused actions towards improving

the ease of doing business, promoting

digitalization, and providing efficient

customer services to the clientele.

Operating and Financial Results

The Company recorded revenue of Rs.

11,099 million, which is 23% higher

than last year. Through operational

excellence and cost optimizations,

Company posted a Gross Profit of Rs

5,160 million. The year ended with a

net profit of Rs 3,390 million which was

higher by 27% compared to last year.

This growth is aided by the increase in

revenue by 23% over the same period

the previous year and increased market

share.

Future Outlook

The global maritime supply chain

vulnerabilities, driven primarily by the

Covid-19 disruptions and its knockon

effects on shipping and ports, such

as port congestions and schedules

unreliability, may continue to disrupt

supply chains in 2022. These are

expected to normalize by the Years

2023-24.

World Trade Organization expects

a 4.0% rise in trade growth in 2022,

with the total volume of global trade

remaining below the pre-pandemic

trend. Your Company endeavours

to retain the sustainable market

share of Karachi Port through

digitally enhanced experience for the

customers, offering customer-centric

services, and delivering enduring value

for all its stakeholders.


TRADE CHRONICLE

KPT organises seminar

on ‘Marine Salvage’

Karachi Port Trust (KPT) organized a

seminar on Marine Salvage covering

legal, operational, safety and

environment aspects at KPT Staff

College, Lalazar, Karachi.

Chairman KPT Nadir Mumtaz Warraich

while speaking on the occasion

highlighted the importance of marine

salvage and said that although

resources are scarce but we as maritime

stakeholders must collectively make

ourselves self sufficient. He said

Gwadar Port to be utilised

for Afghan transit trade

The Pak-Afghan Chamber of

Commerce & Industry (PACCI) and

Gwadar Chamber of Commerce &

Industry (GCCI) agreed to utilise

Gwadar Port for Afghan transit trade.

The chambers also agreed to take

measures for boosting bilateral trade.

A delegation of PACCI and Karachi

business community led by the

chamber’s president President Javed

Barwani and Zubair Motiwala visited

Gwadar. GCCI President Nagman

Abdul and former president of the

chamber Naveed Kalmati were also

present in the meeting.

that it is equally the duty of ports

and stakeholders to get equipped

with sophisticated and ultramodern

gadgets to enable ourselves to handle

all kind of emergency situations.

Chairman KPT appreciated the

support provided by stakeholders in

organizing the seminar which will

eventually bring fruitful results. He said

shipping though contributes to global

prosperity but disasters like grounding,

collision and sinking of vessels impacts

adversely on port business as well on

marine environment.

Earlier KPT General Manager

Operations, Rear Admiral Zubair

Shafique, in his keynote welcome

address termed the seminar as an

excellent opportunity to understand

the severity of such disasters and

their costs. He said that marine

salvage team is an integral part

of sustainable operations which

needs to be established. Perhaps it

is a challenge that we all face today,

he added.

In a meeting held at the office of

Gwadar Development Authority

(GDA), Captain Gul of Gwadar Port

Authority and GDA’s Abdul Razaq

Baloch briefed the delegates about

the utilisation of Gwadar Port and the

China Pakistan Economic Corridor

(CPEC). The business leaders expressed

their interest in promoting trade via

Gwadar Port.

The meeting agreed that in the coming

days PACCI, importers and exporters

from the two countries and Afghan

transit trade would utilise Gwadar Port.

It was decided that steps in this regard

would be taken in consultation with the

concerned authorities so that Gwadar

Port becomes a trade and economic

hub between Pakistan and

Afghanistan.

It was observed that mega

development projects initiated

under CPEC would ensure

Gwadar’s place as the future

economic hub of Pakistan.

In April 2020, as the Covid-19

pandemic spread, Pakistan

had allowed import of bulk

shipments of food items

through Gwadar port for

transit to Afghanistan to help

Kabul maintain food supply.

18

Mar - Apr - 2022

KPT conducts security

drill at harbour

The Port Security Force (PSF) of the

Karachi Port Trust (KPT) conducted

amphibious security drills in the

harbour recently.

According to a press release shared by

the KPT, boats, tugboats and pilot boats

were deployed with PSF personnel on

board to handle any attempt to block

the channel. Recently inducted female

PSF personnel were also part of this

exercise.

Water cannon and splicing of ropes

manoeuvres were also carried out.

PSF and technical personnel manning

the crafts synchronised their response

mechanisms. The KPT said that the

PSF remained vigilant round the clock

to protect the port and its assets.

Pakistani freight train

likely to reach Zahedan

Under tight security provided by the

Pakistan Railways (PR) police, the 10th

Pak-Iran international goods train

carrying a huge quantity of sulfur, salt,

rice and other items has moved from

Peshawar for Zahedan (Iran), making

the freight train operations successful.

Prior to this, nine trains have

successfully completed their trips

from Pakistan to Iran during the last

two months, according to the official

sources.


TRADE CHRONICLE

PNSC Group has managed to

achieve an 18% increase in PAT

The Pakistan National Shipping

Corporation (PNSC) Board of Directors

has presented the unconsolidated

and consolidated condensed interim

financial statements of PNSC and

Group for the six months ended

December 31, 2021.

Performance Review

Despite the country’s prevailing

unfavourable macroeconomic

environmental condition, the PNSC

Group has achieved an 18% increase

in profit after tax of Rs.1,423 million

as against Rs.1,204 million in the

corresponding period last year.

Group earnings per share increased

to Rs.10.77 against Rs.9.12 in the

corresponding period last year.

Cumulatively, the Group achieved

a turnover of Rs.10,106 million

(including Rs.3,926 million from

PNSC) compared to Rs.6,975 million

(including Rs.1,362 million from PNSC)

for the corresponding period last year.

Overall revenue from all segments

has increased compared to last year

by Rs.3,130 million (45%). The major

increase was seen in the Dry Cargo

segment, including slot charter, which

was increased by Rs.1,570 million.

In contrast, the revenue from Liquid

Cargo was increased by Rs.1,553

million, considering the decline of

Rs.616 million from owned oil tankers,

followed by a significant increase

of Rs.2,169 million from foreign

flagged vessels.

Due to the controlled strategies

implemented by management, other

expenses at the group level have been

decreased by Rs.108 million (46%). The

finance cost of long-term financing

decreased by 18% to Rs. 243 million

in the current period as against Rs.298

million in the same period last year.

This is mainly due to the repayment

of long term loans, and; there is no

new loan has been obtained in the

reporting period.

Future Prospects

Dry Bulk Sector

PIBTL has released a financial report

for the period ended Dec 31, 2021

Business Review

Pakistan International Bulk Terminal

(PIBTL) has entered into a Build

Operate Transfer (BOT) contract

with Port Qasim Authority (PQA)

on November 06, 2010, for the

construction, development, operations

and management of a coal and clinker

/cement terminal at Port Muhammad

Bin Qasim for a period of thirty years.

During the period, the Company

has handled 4,567,069 tons of cargo

against 5,273,221 tons in the same

period last year which is in line with the

industry demand for imported coal.

The management of the Company is

focusing on strategies to bring more

efficiency to cargo handling operations,

The Dry Bulk Market, in general,

remains significantly elevated

above average 2020 and 2019 levels.

Compared to its break neck pace in

late 2020 and early 2021, the Chinese

economy has slowed down, with

industrial production going back down

to its average levels. Although there was

a dip in freight rates earlier in the year,

they have once again started to rise,

with the trend lines firmly pointing

upwards.

Despite this correction, overall, the

outlook for the dry bulk sector, as

reflected by Baltic Dry Index (BDI),

remains positive due to strong

fundamentals. Port congestion,

particularly from Covid -19 and the

spillover from the containership

with the objective of

providing unparalleled

services to its customers.

During the period, the Company

has posted a net loss after taxation

primarily due to the impact of currency

devaluation on USD denominated

foreign loans.

Going Forward

Corresponding to the business

performance above which is consistent

with the industry demand, the

company is committed to enhancing

shareholders' value while improving

the productivity of cargo handling

operations with an overall vision

to mitigate the environmental and

proficiency concerns at the Country's

port infrastructure and enhance our

shareholders' value.

Mar - Apr - 2022

sector, have ensured high demand,

with the supply of vessels unable to

keep pace due to a declining order

book. However, it is difficult to forecast

charter freight rates, in the long run,

considering the volatile/cyclic nature

of BDI.

Tanker Sector

The recent wave of new coronavirus

variant “Omicron” has impacted global

oil demand appears to have been

more limited than previous waves of

Covid-19, and major forecasters expect

oil demand to return to pre-Covid

levels later this year. The tanker market

is expected to gradually improve

through 2022, supporting continued

recovery in oil demand and supply.

Overall, the tanker market is expected

to continue to face challenges in the

short term, with the seaborne oil trade

remained way below pre-Covid levels.

However, improvements are expected

to gradually materialise over 2022-23,

potentially with additional support

from the supply-side may be benefited

due to new environmental regulations.

In the end, the Board of Directors of

the Company would like to reiterate

their commitment to operating

efficiently Pakistan's first state-of-theart

mechanized bulk cargo terminal

for the handling of Coal, Clinker &

Cement, compliant with international

standards of excellence which will

curtail environmental pollution and

modernize the port infrastructure of

the country.

19


TRADE CHRONICLE

Mar - Apr - 2022

Engro Energy & Agha Steel join hands

to further Renewable Energy transition

Agha Steel Industries, a leading Steel

manufacturing company has signed a

term sheet with Engro Energy Limited

for providing Renewable Energy to

Agha Steel from its Renewable Energy

Park, which is being established at

Jhimpir, District Thatta in Sindh. The

Signing Ceremony took place at the

“Pakistan Energy Symposium” event

held at a local hotel in Karachi. This

is the first of its kind Hybrid wind and

solar PV park that is being established

in the country and will provide up to

400MW of electricity by early 2024

in the first phase, with a potential to

increase this generation to 1GW by the

end of 2029.

It is estimated

that once

Agha Steel

installs MiDa

technology, it

would reduce

its electricity

consumption

International scrap

prices increased

International scrap prices have rallied

28%MoM in Mar’22 to currently

hover around US$641/ton compared

to FYTD/CYTD avg. of US$495/541/

ton amid Russia & Ukraine crises,

European power shortage and partial

lockdowns in China which caused

smelters to go offline from Europe to

China.

European steel prices surged 51% amid

soaring power costs and declining

output and U.S. benchmark steel scrap

prices have gained 53% since Russia’s

invasion amid disruption in supplies of

pig iron and iron ore from Russia and

Ukraine.

International Steels report

strong sales in 3QFY22

by a hefty 20%, and its

production losses in

terms of raw material

would be reduced by

8%. Mr. Hussain Agha, CEO, Agha

Steel said, “In line with our Sustainable

Development Goals (SDG), it is our

vision to become Pakistan’s first green

steel manufacturer with zero reliance

on fossil fuels by 2025. As a micro

mill utilizing scrap-based Electric

Arc Furnace (EAF) technology, we

are helping to preserve our natural

resources. By using recycled scrap

for our raw material, we reduce the

need for natural resources. Our CO2

Scope 1 greenhouse gas emissions

and energy consumption intensities

are approximately 7 times less than

the global

steelmaking

average. We

are extremely

proud to say

Green Steel

Revolution

has come to

Pakistan”.

Local rebar prices have increased by

PkR7-8K/ton to PkR216-217K/ton in

Mar’22 as manufacturers look to pass

on the increase in scrap prices and PkR

devaluation (3.4%MoM in Mar’22). On

the other hand, the CRC-HRC spread

has contracted, currently trading at

US$68/ton as compared to a high of

US$116/ton and an avg. of US$94/86/

ton in Jan’22/Feb’22.

Experts believe, the recent round

of hikes in local rebar prices should

release pressure off margins for ASTL

and MUGHAL. Hence it recommend,

ASTL (TP: PkR57/sh, upside 82%) and

MUGHAL (TP: PkR140/sh, upside

57%) as our top picks from the sector.

Courtesy - AKD Research

International Steels Ltd (ISL) has

posted NPAT of PKR1.1bn (EPS:

PKR2.60) in 3QFY22, down a sharp

c.30% qoq and c.50% yoy. The 3Q result

has come broadly in line with our

projected EPS of PKR2.70 higher-thanexpected

revenues have been offset by

lower margins. This takes 9MFY22 EPS

to PKR12.31, down c.22% yoy.

Net revenue has clocked in at

PKR27.3bn, up 57% yoy, beating our

expectation of c.PKR20bn by some

distance, amid greater volumetric

offtake and higher CRC prices.

Courtesy - Intermarket Securities Limited

Amreli Steels NAPT

up 6% in 3QFY22

ASTL has posted NPAT of PKR531mn

(EPS: PKR1.79) for 3QFY22, which is up

6% yoy but down c.12% qoq. This has

taken 9MFY22 NPAT to PKR1.8bn (EPS:

PKR6.18), almost double the NPAT of

PKR9.29mn (EPS: PKR3.12) in SPLY.

The 3Q result has come in lower than

our projected EPS of PKR2.09, where

the variance emanated from lowerthan-expected

gross margins.

Key takeaways from 3QFY22 result

include:

Revenue has clocked in at c.PKR15.9bn

(up c.63% yoy), beating our expected

revenue of PKR14.3bn, where the

growth is led by (i) higher rebar prices

which increased by c.44% yoy, and (ii)

higher volumes (4% qoq / 10% yoy). We

estimate 3Q volumes to have clocked

in at around 97,000 tons, against our

expected volumes of c.88,000 tons.

ASTL has posted gross margins of

10.7%, down a sharp c.3ppt yoy and

c.2ppt qoq, below our expectation

of 12.4%. The sequential decline

in margins can be attributed to (i)

procurement of costlier raw materials,

c.4% PKR slippage, and higher energy

costs, in our view.

Distribution and Admin expenses

clocked in at PKR308mn and

PKR157mn, up 43% and 17% yoy,

respectively. The rise in the former

is likely due to rising transport costs

coupled with the increase in sales

volume growth, in our view.

Finance cost has come in at PKR650mn,

up c.65% yoy (up c.40% qoq), likely due

to a rise in short term debt (in tandem

with sales), as well as borrowing rates

(policy rate increased by 250bps in

2QFY22 to 9.75% from 12.25% last

year).

Moreover, an uptick in construction

activity amid sharp Mera Ghar Mera

Pakistan loan disbursements, in the

last quarter of FY22, can potentially

improve rebar sales further.

Courtesy - Intermarket Securities Limited

20


TRADE CHRONICLE

Mar - Apr - 2022

Consul General of Pakistan in UAE

inaugurated Pakistan Pavilion in APLF 22

The formal inaugural ceremony of

the Pakistan Pavilion in Asia Pacific

Leather Fair’2022, in Dubai, UAE,

was jointly organized by the Pakistan

Tanners’ Association & Consulate

General of Pakistan, Dubai, UAE, at

the entrance of the Pakistan Pavilion

in Hall # 4 at 30.03.2022 at World Trade

Centre, Dubai, UAE.

The Consul General, Consulate

General of Pakistan in UAE, Mr

Hassan Afzal Khan, inaugurated the

Pakistan Pavilion as “Chief Guest”. It

was attended by Mr Shafique Ahmed,

Chairman, Int’l Fairs & Delegations

Standing Committee, PTA, Mr Aziz

Ahmed, Vice-Chairman, PTA, Mr

Agha Saiddain, ex-Chairman, PTA, Mr

Adeem Khan, TIC, Consulate General

of Pakistan, UAE and others.

According to a PTA statement,

46 Pakistani exporters dealing in

producing Finished Leather of Cow,

Buffalo, Sheep & Goat skins, Leather

Garments, Leather Footwear, Leather

Gloves & Leather Products/made-ups

participated in APLF’2022. They want

to take due to maximum advantages

India leather records growth

of 33.45% in 10MFY22

According to the Indian Council for

Leather Export (CLE), the export

of Leather and Leather products

including Non-Leather Footwear

for the period April-January 2021-

22 reached the US $3.960 billion as

against the performance of $2.967

billion in April-January 2020-21,

recording a growth of 33.45%.

A top official of CLE has stated that

going by this growth trend, exports

from it to

expand their

trade volume

with potential

buyers/customers/visitors during

3 Days shows in Dubai, UAE, under

the aegis of the National Pavilion

of Pakistan in the MM&T Section

(finished leather with26 exporters)

& F&FP Section (Leather Garments

Section with 20 exporters) in Asia

Pacific Leather Fair from 30th March to

1st April 2022 at Dubai, UAE.

A beautiful Pakistan Pavilions in both

sections of APLF’22 with eye-catching

colour schemes/features have

been arranged with the help of the

Consulate General of Pakistan, Dubai,

UAE, to become an extensive gateway

for the 46 Pakistani exporters to

yield/conclude the sizeable business

during the Show for the promotion of

country’s exports and to promote the

leather sector of Pakistan as well.

Before participation, extensive

marketing & dissemination has already

been through the Consulate General

of Pakistan, Dubai, UAE amongst the

potential buyers/customers/visitors,

Federations, Chambers, Association

at the destination to visit the Pakistan

Pavilion in APLF’22, Dubai for business

are likely to be in the range of $4.9

billion to $ 5 billion this year, which

is more or less the same as that of

the year 2019-20.

The breakdown shows that during this

period of ten months, finished leather

exports rose in value by 23.79% to

$374.15 million from $302.24 million

of the same period last year and similar

leather footwear by 39.69% to $1.652

billion from $ 1.183 billion, and leather

garments by 14.16% to $297.46 million

from $260.56 million during these ten

months corresponding period of last

year.

The leather goods export

also increased by 37.74% to

$1.049 billion from $761.74

million during this export

period. Similarly, Saddlery and

Harness export rose to $227.56

million from $145.67 million,

reflecting a growth of 56.22%.

tie-up/collaboration/joint ventures to

achieve the desired goals/objectives

of the Pavilion/participation in this

important event at Dubai, UAE.

PTA thanked the Consul General, Mr

Hassan Afzal Khan, for inaugurating

the Pakistan Pavilion in APLF’222 to

grace the occasion with his august

presence. PTA also thanked EDF/MOC

exceptionally for allocation of funds

to PTA in general and is very thankful

to TDAP, Govt. of Pakistan for their

cooperation & patronage in particular.

In conclusion, Mr Hassan Afzal Khan,

Consul General, Consulate General of

Pakistan, Dubai, assured maximum

support to the Pakistani business

people during the Fair in Dubai to make

the participation more result-oriented

and to achieve the desired objectives

of involvement for the supreme motive

to promote the country’s exports as per

aspiration of the Government.

Sri Lanka leather export falls

The Sri Lanka leather industry export

revenue has been declined drastically

during the last five years. According

to Srilanka Export Development

Board, exports of footwear and leather

products, which were at their peak, i.e.

the US $139.63 million in 2016, fell by

337 percent to the US $31.98 million

during the year 2021.

UK was the biggest buyer of Srilanka

footwear and leather products in 2021,

followed by the USA, UAE, Canada,

Australia, Netherlands, Maldives, and

others.The Sri Lanka total exports of all

commodities have declined from $13.7

billion in 2016 to $12.33 billion in 2020.

21


TRADE CHRONICLE

UAE to provide duty-free

facilities for leather

Indian Council for Leather Exports

(CLE) has welcomed United Arab

Emirates (UAE) decision to provide

duty-free facilities for leather, leather

products & footwear under India-UAE

Comprehensive Economic Partnership

Agreement (CEPA).

The duty-free facility will help in

achieving more than 15% annual

growth in exports to UAE from the

leather sector in the coming years, CLE

expressed hope. CLE on Twitter thanks

Government for this consideration.

According to historic UAE-India CEPA

details released on March 27, the CEPA

was finalised and signed in a record

time of just 88 days; the agreement will

contribute to trade expansion, promote

greater regional economic integration.

India exported leather and leather

products worth $80.84 million to UAE

from April 2021 to January 2022 from

$60.19 million in the same ten months

of last financial year.

High energy and an optimistic mood

pervaded APLF’s special edition in Dubai

After a three years hiatus due to the

Covid-19 pandemic, the world’s

leading trade fair in Leather and

Fashion made a triumphal return in

Dubai World Trade Centre, from 30th

March to 1st April, coinciding with the

last few days of Expo2020. This was the

first time in 35 years that APLF did not

take place in its hometown Hong Kong.

Nevertheless, a total of 463 exhibitors

from 34 countries and regions

participated at APLF Leather, Material+

and Fashion Access, including first

time participants from Uzbekistan

from the leather sector, Georgia and

Zimbabwe from the finished products

sector. These were joined by over 6,000

buyers from 88 countries and regions.

This is in line with the estimates of

the Organisers despite the new venue

and the extraordinary circumstances

Bangladesh leather industry

exports increase in 8MFY22

The Bangladesh leather industry has

earned export revenue of US$784.98

million between July 2021 and

February 2022, of the ongoing fiscal

year 2021-22, compared to $605.61

million earned in the same months of

the previous fiscal year. It translates

a growth of 29.61% on a YoY basis,

according to the Bangladesh Export

Promotion Bureau (EPB). The target

for this period was also surpassed by

14%.

The breakdown shows that Bangladesh

received $100.27 million on exports of

finished leather between July and Feb

2022 compared to $73.40 million in the

same period last year, which shows a

growth of 36.61%.

The exports of leather products have

also expanded to $209.67 million

during these eight months from the

$154.94 million of the same months of

surrounding the

timing of the

event.

“As a business platform, APLF Dubai

will open new markets and expand

its global reach until normality reigns

again in China and Southeast Asia”,

confirmed David Bondi, Director of

APLF and Senior Vice President at

Informa Markets Asia.

“We are grateful that APLF finally

made it happen! This is an opportunity

to meet new customers and Dubai

may be the steppingstone to new

markets, including Africa”, Dr

Alessandro Lamura, Italy Deputy Trade

Commissioner of the United Arab

Emirates, said, speaking at the opening

ceremony.

At the press conference, the APLF

Organisers hosted the launch of the

inaugural World Leather Day, 30

March 2022. This initiative was

conceived by the Leather Working

Group and Leather Naturally who

recently joined forces as part of

the renewed unity to promote

and defend leather.

Leather revival was also observed

in some countries such as in

India, Egypt, Uzbekistan and

some parts of Africa where

governments went the extra mile

Mar - Apr - 2022

last year. It translates to an incline of

35.32 on a YoY basis.

On a more positive development, the

leather footwear exports grew 25.89%

to $475.04 million from $377.34 million

during this period.

The Bangladesh Export Promotion

Bureau (EPB) set the leather industry's

export target at $1.031 billion for the

financial year 2021-22 (July – June)

compared to the $941.67 million

earned in the previous fiscal year.

The government plans to boost the

country's export of leather and leather

goods to $12 billion by 2030.

to support the sector. In India, import

duty exemptions and a five-year

Footwear and Leather Development

Programme is expecting to double

the export turnover to 10 billion USD

by 2025-26 and the domestic industry

turnover from 12 billion USD in 2019-

20 to 20 billion USD by 2025-26,

according to Sanjay Leekha, Chairman

of the Council for Leather Exports,

India.

Similarly, in Uzbekistan, tax exemption,

the implementation of funds and the

establishing of industrial zones are

expected to increase the size of exports

from 101 million USD in 2017 to 1.2

billion USD in 2026.

In Egypt, the relocation of tannery

activities from the old downtown Cairo

to Robbiki Leather City is expected

to increase leather production, while

controlling any adverse environmental

effects.

In Zimbabwe, the National Export

Strategy is expected to stimulate the

production and exportation of hides

and skins, especially exotic ones.

Meanwhile, the question on everyone’s

mind is where will the next APLF

take place? Hong Kong or Dubai? The

answer will be announced before

summer.

22


TRADE CHRONICLE

Mar - Apr - 2022

President Dr Arif Alvi

message on Pakistan Day

Pakistan Day is a landmark day in

the history of the sub-continent on

many counts. On this day in 1940, the

Muslims changed their demand from

"separate electorates" to a "separate

state," made it clear to the British that

partitioning of the subcontinent could

not be delayed any further, and that

the Congress was not a representative

political party of the Muslims. On this

historic day, therefore, it becomes our

duty to pay homage to the founding

fathers of this nation for taking timely

and prudent political decisions.

The demand for a separate homeland

for Muslims has proved to be politically

correct over time.

The unlawful accession of Jammu and

Kashmir with India, denying the right

to self-determination to Kashmiris,

Pakistan showcases military

prowess at parade

The nation celebrated 82nd Pakistan

Day with a resounding commitment to

ensure progress, prosperity and strong

defence of the country.

The spectacular and colorful Pakistan

Day military parade was held at Parade

Avenue in Islamabad with three wings

of the armed forces displaying their

professionalism and military prowess.

The impressive ceremony kicked off

Human rights violations in the valley,

forcible disappearances, persecution of

minorities, communication blockade,

and extra-judicial killings are sufficient

grounds to believe that the leadership

of that time had clearly visualised

what was in store for them if they had

remained at the mercy of the Hindu

majority in undivided India. Achieving

national freedom is considered as half

work done in such struggles.

The remaining half, being crucial for a

state's security and stability, is equally

important. This includes blending of

various ethnic and minority groups

into a single nation, ensuring the

supremacy of law, curbing differences

on the basis of social and class status,

eliminating terrorism and internal

disturbances, achieving economic

growth, promoting good relations

with the world, especially with the

neighbouring countries, and above

all, protecting human rights of all the

citizens of the state. These tasks are

with the flying past of fighter jets

of Pakistan Air Force and Pakistan

Navy led by Air Chief Zaheer Ahmad

Babar presenting salute to the chief

guest President Dr Arif Alvi.

Formations of fighter jets including

J-10C, F-16, Mirage and P-3C

participated in the flying past.

Contingents of Pakistan Army, Navy,

Pakistan Air Force, Special Services

Groups, Frontier Corps, Rangers,

Islamabad police marched past the

dais presenting salute to the chief

achievable.

The way the Pakistani nation has

overcome polio and COVID-19,

there remains no doubt that the

challenges which Pakistan is facing

now can be addressed by the collective

efforts of all. The day will not be far

away when Pakistan becomes an

economically strong and prosperous

country. We need to stand united and

collectively work for the unity and

socio-economic development of the

country to materialize the dream of

our forefathers. May Allah be with us

all. Ameen!

guest.

The participants of the 48th OIC-CFM

including Chinese Foreign Minister

Wang Yi were special guests of the

Pakistan Day parade.

Theme of this year Pakistan Day was

"Shaad Rahy Pakistan".

President Dr Arif Alvi, while addressing

the parade, said Pakistan would never

compromise on its sovereignty and

vowed that “any external aggression

will be dealt with strongly”.

23


TRADE CHRONICLE

Mar Nov - Apr Dec - 2022 2021

Sarmad elected APNS

President

The annual

meeting of

the

APNS

General Council

unanimously

elected Sarmad Ali

as President, Jamil

Ather as Senior

Vice President, Shahab Zuberi as Vice

President, Nazafreen Saigol Lakhani

as Secretary General, Mohsin Bilal as

Joint Secretary and Muhammad Awais

Khushnood as Finance Secretary of the

Society.

The General Council attended by 151

members from across the country,

formed an Election Commission

headed by Dr. Waqar Yousuf Azeemi

with Nasir Daad Baloch and Safdar

Ali Khan as members. The Election

Commission conducted the election

of the executive committee for the year

2022-23.

IFC appoints new director for

ME, Afghanistan & Pakistan

IFC has named Khawaja Aftab Ahmed

as the regional director for the Middle

East, Pakistan, and Afghanistan.

Khawaja Aftab Ahmed will lead the

institution’s efforts to help increase

private sector participation in the

economy to create jobs, address the

climate crisis, close the infrastructure

gap, foster financial inclusion, and

support fragile and conflict-affected

situations.

“I am excited to work closely with

Aftab to build up IFC’s operations and

impact in this very important, diverse,

and promising region,” said Hela

Cheikhrouhou, IFC’s Regional Vice

President for

the Middle

East, Central

Asia, Turkey,

Afghanistan,

a n d

Pakistan.

“His ind

e p t h

knowledge

Rain Financial Inc

appoints Zeeshan as CGM

Rain Financial, Inc, a

global leading crypto

currency trading

platform, has appointed

Zeeshan Ahmed as

its Country General

Manager, Pakistan.

While Rain is not yet operational in

Pakistan, it will be advocating for

the regulation and seek licensing

in the country.Zeeshan is a senior

management professional leading

turnaround and growth strategies.

With a career span of over 16 years, 7

of which were spent at strategic C level

positions, he most recently worked as

the Chief Executive Officer for Askari

Enterprises (A subsidiary of AWT).

Commenting on his appointment

Zeeshan said “I am thrilled to be

joining Rain Pakistan at this pivotal

time for the blockchain and crypto

industry.

of the region, combined with

his expertise across different

sectors and products, will be a

tremendous asset as IFC ramps

up its business in the Middle East,

Pakistan and Afghanistan.”

Khawaja Aftab Ahmed, a Pakistani

national, has 33 years of development

banking experience. At IFC, he has held

several managerial positions, most

recently serving as Global Director of

Investment and Credit Risk.

Before that, he led IFC’s work with

financial institutions and private

equity funds in the Middle East, North

Africa, and Europe, where he managed

a $6 billion portfolio spread across 45

countries.

He has deep experience in frontier

markets, where he helped to promote

innovative financial instruments and

Islamic financing tools.

Khawaja Aftab Ahmed holds a

Bachelor of Mechanical Engineering

from Pakistan’s NED University of

Engineering and Technology and an

MBA in Finance from the Institute of

Business Administration in Karachi.

KU gets its first female

acting VC

Since 1951, for

the first time in

the history of

the University of

Karachi, a woman

has been appointed

as acting vice

chancellor of the

educational institution. The Sindh

Universities & Boards Department

issued a notification that in compliance

with the January 26 orders of the Sindh

High Court, Prof Dr Nasira Khatoon,

dean of the Faculty of Science, has

been appointed as acting VC of KU as

an interim arrangement until further

orders.

Dr Nasira had done her PhD in 1994 in

parasitology from KU’s Department of

Zoology, while her field of specialisation

is clinical and veterinary parasitology

and pathology, and fish pathology. She

had served as the chairperson of the

Department of Zoology from October

25, 2019 to November 3, 2020.

Dr Osman Hasan conferred

‘HEC best research award

Higher Education

Commission (HEC)

has conferred Best

Researcher Award upon

Pro-Rector Academics

NUST, Dr Osman Hasan

(TI) in due recognition

of his meritorious and impactful

research undertakings.

Out of the three Best Researcher Award

categories, Dr Hasan has earned

the coveted award in the domain

of Physical Sciences, Engineering,

Technology, Computer Science,

Statistics and Mathematics. He has

been able to acquire research grants

worth over Rs 125 million from various

national (HEC, PSF and Ignite) and

international (DAAD, Germany,

British Council, UK, QNRF, Qatar,

UAE ICT Fund) agencies. Prof Hasan’s

research findings have been published

in 6 books, 14 book chapters, about

100 journal papers, and over 150

conference papers at internationally

reputable venues.

24


TRADE CHRONICLE

Avanceon selected to execute

Masjid al-Haram expansion

Avanceon Saudi for Energy Co WLL, a

subsidiary of Avanceon FZE, has been

selected to execute an innovative and

state of the art SCADA solution for the

Masjid Al-Haram Expansion Project

in Makkah. According to material

information sent to Pakistan Stock

Exchange, the Haram Expansion

Project aims to restore Masjid Al-

Haram’s central position in the city

and give the mosque an architectural

and engineering aspect to welcome

growing number of pilgrims.

Avanceon will be responsible for

the PLC based SCADA systems,

Instrumentation, Real Time Data

Acquisition, Performance Monitoring

Systems and Turnkey Automation to

ensure new praying areas and essential

ICI PET recycling plant in

Sheikhupura comes online in 2022

In line with the Company’s

sustainability goals, ICI Pakistan

Limited has launched innovative

offerings within its Polyester Fibre

portfolio. These products allow the

Company to play its part in reducing

Pakistan’s plastic waste levels by

recycling and converting discarded

PET bottles into value-added polyester

fibre.

ICI Pakistan Limited has introduced

sustainable products such as “Terylene

Clean” and “Terylene Powered by

CiCLO”, with the aim of reducing

the environmental burden caused

by plastic and microfiber pollution.

Terylene Clean (Global Recycle

Standard Certified) is salvaged from

100% post-consumer PET bottles and

allows the downstream sector textile

to completely shift its production on

recycled fibre while continuing to

PSO renews partnership with

TotalEnergies Aviation

Pakistan’s largest energy company

- Pakistan State Oil (PSO), signs

Fuel Supply and Technical Services

Agreements with Total Energies

Aviation (TEA) at their headquarters at

La Defense Paris France.

The agreements were signed by Chief

Supply Chain Officer, PSO - Mr Abdus

Sami and President, TEA - Mr. Joel

Navaron. Senior officials from both

companies were present during the

services to millions of pilgrims who

visit Makkah for Hajj and Umrah.

With the Al-Ka’bah as its focal

point, the Haram Expansion Project

will extend radially outwards across

a 684 m distance. It will include the

construction of a new Haram building,

courtyards around the mosque, a new

services building, a Central Utility

Complex (CUC), a hospital, civil

defence, and security facilities, as well

as bridges and pedestrian walkways.

A utility tunnel serves as the main

artery, harbouring utilities from the

CUC to the Haram, including chilled

water, water supply, fire fighting, waste

water, refuse collection, and electric

cables. With water as the lifeblood of a

pilgrims’ journey, water proofing and

other measures will be employed to

ensure that the spring water, Zamzam,

remains contaminant-free.Avanceon

ceremony.

offer exceptional quality

finished products to their

consumers.

To date, through Terylene Clean, ICI

Pakistan Limited has recycled more

than 250 million PET bottles. As

responsible stewards, the Company

is also in the process of enhancing its

Polyester manufacturing capability

by setting up a PET recycling unit

at its plant in Sheikhupura. The

facilityis scheduled to come online in

2022, and will enable the Company

to produce 100% recycled PET chip

PSO is the market leader in the

aviation business in Pakistan with

a share of approx. 95% in jet fuel and

an experience spanning over four

decades. The company fuels the skies

at ten major airports having state-ofthe-art

refuelling facilities across the

country.

Total Energies Aviation is a guarantor

member of Joint Inspection Group,

a world-leading organization for the

development of aviation fuel supply

Mar - Apr - 2022

will provide all services in accordance

with the local regulatory and QHSE

authorities’ requirements.

For the execution of this project,

Avanceon will be partnering with World

Class OEMs. All necessary studies will

be carried out before the start of the

project with fail-safe plans to address

any safety, quality, and environmental

issues.

for the manufacture of recycled

polyester fibre which is consumedby

the downstream textile industry to

produce yarn for blended textiles. With

this new installation,the Companycan

recycle over 3.3 billion PET bottles

in the coming three years and cater

to the growing needs of Pakistan’s

textile industry in line with the global

sustainability agenda of its customers.

Moreover, to create awareness

amongst future generations regarding

proper disposal of PET waste and the

benefits of recycling, ICI Pakistan

Limited has collaborated with WWF

Pakistan to sponsor the National

Spellathon campaign. Commenting

on the initiatives, Mr Nauman Afzal;

Vice President of ICI Pakistan Limited’s

Polyester business stated. We believe

that creating a circular loop supply

chain and encouraging the recycling

of PET waste can be beneficial to

Pakistan’s economy.

standards and a leading member of

the international Aviation technical

committees (IATA-TFG, Energy

Institute & ASTM). Its network is spread

across 250 international airports in 70

countries.

25


TRADE CHRONICLE

Descon Engineering

wins a contract from

AkzoNobel Pakistan

Descon Engineering Limited (Descon)

has been awarded a large turnkey

project by AkzoNobel Pakistan Limited

– the leading paint and coatings

company in Pakistan. Descon has

begun constructing AkzoNobel’s 25-

acre integrated paints and coatings

manufacturing plant at the Allama

Iqbal Industrial City in Faisalabad,

Pakistan. The project is stipulated to be

completed within 18 months.

The Descon CEO Taimur Saeed,

stated, “Our EPC division excels at

enriching the value-chain with turnkey

solutions tailored to meet the clients’

requirements. This win is another

feather in our cap and solidifies

Descon’s position as the country’s

leading EPC company. We look forward

to working with AkzoNobel Pakistan

Limited to deliver a world-class variety

of engineering services that this project

has the potential to offer.

The 8th edition of “PakPlas

Expo 2022” inaugurated

Pakistan Plastics Manufacturing

Association (PPMA) in association with

Events 360 Design and Management

The exhibition, have organized

this event. Many leading domestic

and foreign companies providing

technology and services related to

plastics, chemicals and rubber are

presenting their products and services

at PakPlas Expo 2022.

Expressing excitement over the

organization of the exhibition, Zakaria

Usman, Patron General of Pakistan

Plastics Manufacturing Association,

Mar - Apr - 2022

said that the largest show of the plastics

industry in Pakistan is now being held

in full swing after being stalled during

the Covid pandemic.

Hira Saleem, the Founder and

Managing Director at Events360-

Design and Management, welcomes

potential exhibitors to showcase their

product(s) and service(s) in PakPlas

Expo 2022.

We have gained deep insights on

AkzoNobel’s vision for sustainability, as

this Green-Field project must achieve

minimal environmental footprint and

also contribute towards the overall

growing ‘Green Revenue’ of Descon.”

Chairman PM Task Force on Housing Zaigham Rizvi, Chairman NEPRA Tausif

H.Farooqi, Chief Executive Officer Alternative Energy Development Board Shah

Jahan Mirza and CEO FAKT International Salim Khan Tanolion has inaugurated

the three days Solar Pakistan along with the of Electricity Pakistan exhibitions at

the Expo Centre.

Under the auspices of the FAKT Exhibition, it is the 10 th edition of Solar Pakistan

Exhibition and the 3 rd edition of Electricity Pakistan which is the biggest and the

only dedicated solar energy exhibition in the country.

Descon’s President of Construction

Division Abdul Moeed Syed, added,

“We must ensure the commercial

success of this unique venture while

mitigating its ecological impact.

Descon is well-equipped to assist

AkzoNobel in achieving its goal of

reducing carbon emissions across the

full value chain by 2030.”

Descon has an illustrious track record

of executing many large-scale projects,

on an EPC basis, since the early

1990s. The company has the capacity

to ensure world-class engineeringdesigns

for achieving excellence

in manufacturing/procurement,

construction, commissioning and

maintenance.

Shell Pakistan inaugurates an Integrated Retail Outlet on M9 Motorway. In the

picture (L-R) Naz Khan, Chief Strategy Officer at K-Electric, Waqar Siddiqui,

Chief Executive & Managing Director of Shell Pakistan Limited, Raza Pirbhai,

Chief Executive Officer of KFC Pakistan cut the ribbon to inaugurate the site

26


TRADE CHRONICLE

Mar - Apr - 2022

Mobile Production

facility in Pakistan

By Dr. Muhammad Nawaz Iqbal

MDM Authorization has been granted

to 29 businesses so far, allowing them

to make cell phones in Pakistan.

Samsung, Nokia, Oppo, TECNO,

Infinix, Vgotel, and Q-mobile are

among the firms represented.

In Pakistan, the mobile phone network

operator industry is booming. In March

2019, the Pakistan Telecommunication

Authority (PTA) said 152 million

mobile 'phone customers' in Pakistan.

DIRBS has also benefited Pakistan's

Jul-Feb mobile phones imports

grow 7.63pc to $1.41bn YoY

Pakistan imported mobile phones

worth $1.411 billion during the first

eight months (July-February) of 2021-

22 compared to $1.311 billion during

the same period of last year, registering

a growth of 7.63 percent, despite

the increase in local manufacturing,

according to the Pakistan Bureau of

Statistics (PBS).

On a month-on-month basis, imports

of mobile phones into Pakistan

decreased by 21.45 percent during

mobile ecosystem by eliminating the

counterfeit gadget market, giving a

level battleground to commercial

entities, and instilling consumer

trust by creating standardized legal

channels for all types of device imports,

according to the telecommunications

authority.

On January 28, 2021, Mobile Device

Manufacturing (MDM) Regulations

were issued in response to the policy.

MDM authorization has been granted

to 26 businesses so far, allowing them

to fabricate cell phones in Pakistan.

The domestic production of cellular

phones has grown rapidly in the

country.

According to data from the Pakistan

Telecommunication Authority

(PTA), the output of cell phones by

neighbourhood producing plants

nearly doubled to 18.87 million in the

first ten months of 2021, compared to

45 million imported. Since introducing

its first Android smartphone in 2009,

February 2022 and remained

$141.207 million when

compared to $179.765 million

imported in January 2022, the

PBS data revealed.

On year-on-year basis, mobile phones

witnessed a decrease of 19.69 percent

when compared to $175.821 million in

February 2021.

Meanwhile, the local manufacturing

plants have manufactured/assembled

1.53 million mobile phones handsets

against 0.14 million commercially

imported in January 2022, says the

Pakistan Telecommunication

Authority (PTA).

The manufactured/assembled

mobile phones handsets by

local manufacturing plants

during the calendar year

2021 stood at 24.66 million

compared to 13.05 million in

2020, i.e. 88 percent increase.

The commercial imports

of mobile phones handsets

stood at 10.26 million in 2021

compared to 24.51 million in

2020.

the firm has dominated the cell phone

and Phablet market in Pakistan and

globally. In Pakistan, Samsung is the

most popular mobile phone brand.

This brand debuted a slew of new

phones with cutting-edge features

and functionality. Their Android

phone is also rather functional. Many

individuals prefer Samsung phones

for business because of their superior

RAM and memory capabilities. ITel,

Tecno and TCL phones are likewise

produced via Air Link in Pakistan.

The organization professes to be

one of Pakistan's biggest cell phone

merchants, with a cross country

organization of more than 1,000

wholesalers and 4,000 retailers. The

public authority's Mobile Device

Manufacturing Policy, as per Air

Link, has helped gather in the nation

and, therefore, exportability. This

approach, it expressed, was the main

thrust behind their choice to enter the

assembling business.

Jazz appoints new

JazzCash CEO

Jazz, Pakistan’s leading digital operator

has announced the appointment of

Atyab Tahir as the CEO of JazzCash

w.e.f May 1 2022.

A t y a b ,

currently

serving as

Country

Manager

MasterCard

Pakistan and

Afghanistan,

has over two

decades of

international

experience

in banking and consulting. Atyab has

also held senior positions at Fidelity

Investments, HBL, Telenor Bank

and easypaisa. He holds a BA from

Dartmouth College and MBA from

Babson College.

JazzCash is at the forefront of Pakistan’s

digital revolution processing more

than 5 million transactions every day

and accounting for almost 7 percent of

Pakistan’s GDP.

27


TRADE CHRONICLE

Number of 3G and 4G users

reaches 109.72m by Jan-end

By Tahir Amin

The number of 3G and 4G users in

Pakistan reached 109.72 million

by end January 2022 compared to

107.68 million by end December

2021, registering an increase of

1.52 million, revealed the Pakistan

Telecommunication Authority (PTA).

The number of cellular subscribers

in Pakistan increased by 1.8 million

to 190.51 million by end January

2022 compared to 188.71 million by

end December 2021. Teledensity for

cellular mobile increased from 85.94

percent by end December 2021 to

86.71 percent by end January. The

total teledensity increased from 87.08

percent by end December to 87.85

percent by end January.

Jazz’s total count for 3G users stood at

6.712 million by end January compared

to 6.809 million by end December,

registering a decrease of 0.097 million.

Jazz 4G user numbers jumped from

34.750 million by end December to

35.324 million by end January.

Zong 3G subscribers decreased from

3.650 million by end December to

3.561 million by end January, while

the number of 4G users jumped from

26.389 million by end December to

26.953 million by end January.

Pakistan’s leading cellular and digital

services company, Zong 4G, has

joined hands with Tracking World Pvt

Ltd to offer state-of-the-art vehicle

infotainment solutions for leading

vehicle brands in Pakistan.

Leading the digital innovation in the

country, the partnership will bring new

advanced solutions that will contribute

to the digital transformation of

Jazz's Head of D&I Sabahat Bokhari,

Chief People Officer Wajida Leclerc

and CEO Aamir Ibrahim with Dr.

Omar Chugtai of Chugtai Lab at

the 'Power to be You' event, where

Mar - Apr - 2022

vehicles in the country. Through

this partnership, the companies will

integrate their suite of technologies,

primarily by incorporating Tracking

World’s vehicle solution as part of Zong

4G’s connectivity and digital solutions.

The partnership was signed by the

management of both companies

during the ceremony held in Lahore.

Jazz's commitment to increase the

proportion of female broadband users

on its network was announced along

with a host of internal D&I initiatives.

The number of 3G users of Telenor

decreased from 4.090 million by end

December to 3.994 million by end

January. The number of 4G users

jumped from 19.824 million by end

December to 20.385 million by end

January.

Ufone 3G users stood at 3.877 million

by end January compared to 3.871

million by end December. The number

of 4G users of Ufone increased from

7.112 million by end December to

7.653 million by end January.

Courtesy - Business Recorder

Zong 4G, Pakistan’s cellular and digital

services frontrunner, has joined hands

with OP Digital Services Pvt. Ltd

(OPay) to integrate the mobile top-up

facility in OPay’s point of sale (POS)

terminals. Through this collaboration,

OPay will ensure that customers have

the availability of mobile recharge

28

at more locations such as shopping

malls, pharmacies etc. and will help

merchants to increase customer

engagement on their respective

locations. This partnership will help

both organizations in moving forward

in their mission to provide digital

solutions to their customers.


TRADE CHRONICLE

Mar - Apr - 2022

Muhammad Afaq Khan

appointed as new President

of MCB Islamic

Mr. Muhammad

Afaq Khan has been

appointed as the new

President of MCB

Islamic Bank Limited

by the Board of

Directors of the Bank.

Mr. Afaq Khan brings with him over

thirty years of experience as a successful

Islamic Banking professional. He was

the Chairman of Al Rajhi Investment

and Banking Corporation (Malaysia)

and also served as Group CEO of

Islamic Banking, Standard Chartered

Bank (Saadiq).

He was part of the senior management

in HSBC Group that established Islamic

Banking. He also served as Global Head

of Asset Finance and Advisory of HSBC

Amanah.

Standard Chartered

appoints Saadya Riaz

Standard Chartered Bank Pakistan

Limited (SCBPL) announced the

appointment of Saadya Riaz as Head

of Consumer, Private and Business

Banking (CPBB).

Previously, she has worked in the

Africa & Middle East Region (AME),

as the Regional and Country Head

of Segments, AME and UAE, and as

Country Head Wealth Management,

Priority, and International Banking

for Pakistan. Saadya holds an MBA in

Finance from the Institute of Business

Administration, IBA – Karachi, and is

also a Sustainability Champion’ at the

Bank.

Rehan M. Shaikh, Chief Executive

Officer, Standard Chartered Pakistan

stated, “I am very pleased that Saadya

is joining us to lead our next phase

for CPBB business. Her deep insights

of the market coupled with wealth of

international experience will enable

us meet evolving and fast-growing

industry and client needs.

NBP reports highest ever

PBT of Rs 52.9bn

The 73rd Annual General Meeting

of National Bank was attended by

the Chairman Mr. Zubyr Soomro

and the President Mr. Arif Usmani

along with other Directors and senior

management of the Bank as well as a

large number of the shareholders.

The Shareholders appreciated the

Bank’s financial performance as total

revenue for the year 2021 closed at

PKR 134.6 Bn that included net interest

income of PKR 97.6 Bn and nonfund

income of PKR 36.9 Bn. Despite

inflationary pressures, operating

expenses dropped by 5% YoY to close at

PKR 60.0 Bn. Also, loan loss and other

provision charges reduced by 61% to

close at PKR 11.9 Bn. Despite a civil

penalty of PKR 9.8 Bn imposed on the

Bank’s US operations, profit before tax

amounted to PKR 52.9 Bn which is the

highest ever in the history of the Bank.

Total provision charge for the year 2021

amounted to PKR 11.92 Bn, which is

significantly lower by PKR 19.0 Bn or

62% vs PKR 30.9 Bn for 2020. Due to the

civil penalty, profit after tax closed at

PKR 28.0 Bn reflecting a YoY drop of 8%.

With PKR 74.4 Bn in after-tax profits

Meezan Bank and SNGPL join hands

for digitalization of consumer bill

Meezan Bank, Pakistan’s leading

Islamic bank has recently signed

an agreement with Sui Northern

Gas Pipelines Limited (SNGPL), the

largest integrated gas company in

North Central Pakistan, to enable

digitalization of consumer bill

collection via the Bank’s state-ofthe-art

Transaction Banking Solution

(eBiz+).

The agreement was signed by Mr. Irfan

Siddiqui - Founding President & CEO,

during the last three years, net assets

of the Bank stand increased from PKR

206.9 Bn at the beginning of 2019 to

PKR 286.2 Bn at end of 2021 translating

into Book Value of PKR 135 per share

against PKR 97.2 at the beginning of

2019, when the new management took

charge.

On the balance sheet side, total assets

of the Bank have reached PKR 3.85

Trillion compared to PKR 2.80 Trillion

in early 2019. Only in 2021, YoY growth

was high at 27.9% as the Bank achieved

the PKR 3.0 Trillion milestone in

deposits which increased by PKR 600

Bn, of which 80% or PKR 477.4 Bn were

customer deposits.

The shareholders appreciated the

Board’s recommendation for dividend

pay out of Re 1.0 per share subject to the

approval of the Federal Government

and the State Bank of Pakistan.

Meezan Bank and Mr. Ali

J. Hamdani - Managing

Director & CEO, SNGPL

in the presence of other

key management members including

Mr. Ariful Islam - Deputy CEO, Mr.

Abdullah Ahmed - Group Head

Corporate & Institutional Banking, Mr.

M. Saqib Ashraf - Head Transaction

Banking and Mr. M. Munir - Head

Payments & Cash Management from

Meezan Bank, and Mr. Faisal Iqbal -

Chief Financial Officer, SNGPL.

As per the agreement, Meezan Bank

will provide transaction banking

services (eBiz+) to SNGPL

enabling payment of

gas bills by the residents

of Punjab, Khyber

Pakhtunkhwa (KPK) and

Azad Jammu & Kashmir

(AJ&K) via e-channels and

branch banking avenues

offered by the Bank.

29


TRADE CHRONICLE

HBL Islamic Banking continues

to expand its footprint

HBL inaugurated three Islamic Banking

branches recently as it ramped up

efforts to expand its branch network

to better serve Shariah-compliant

products and services to its clients.

The first branch located in Jodia Bazar

was inaugurated on 3March 2022. This

was followed by the inauguration of

the Naya Nazimabad Branch and the

Burki Trade Centre Branch, located on

Superhighway, on 4 March 2022.

HBL Islamic Banking also offers a

complete product suite for its SME and

Commercial Banking clients, ranging

from short-term working capital

Bank of Punjab, SLIC

sign agreement

The Bank of Punjab (BOP) and State

Life Insurance Corporation of Pakistan

(SLIC) have signed Bancaassurance

and Bancatakaful agreements in a

ceremony recently held in Lahore

at BOP Head Office. Shoaib Javed

Hussain, Chairman SLIC and Zafar

Masud, President & CEO BOP were

present at the ceremony. Senior

officials from both organizations were

also in attendance at on the occasion.

This is a landmark agreement which

marks a first for both organizations

in terms of Bancatakaful proposition.

While BOP is already offering various

EFU Life wins CSR Award 2022

EFU Life Assurance Ltd., the leading

private life insurance provider in the

country, has been conferred with ‘CSR

Award 2022’ in the category of ‘Social

Impact’ at the 11th Corporate Social

Responsibility Summit &Awards,

organized by The Professionals

Network and Ethical Business Update

(EBU). The award is the first and

financing to long-term project

financing.

Commenting on the occasion,

Muhammad Aurangzeb, President &

CEO HBL said, “HBL Islamic Banking

continues to expand its footprint

across the country to better serve the

Islamic Banking needs of our clients.

The demand for Shariah-compliant

Bancasurance (conventional)

products, it will be for the first time

that a Takaful proposition is going to

be offered from BOP Islamic branches

as well as from Islamic windows of

conventional branches. Similarly, this

agreement marks the first bancatakaful

agreement for SLIC, whereas SLIC is

currently offering only conventional

only registered CSR Award of

Pakistan registered with IPO

Government of Pakistan.

Evelyn D. Abrogena, Head of CSR, EFU

Life Assurance Ltd., received the award

on behalf of the Company. The award

recognizes Company’s efforts towards

social development and sustainability

initiatives in the country.

EFU Life has been in the forefront

of promoting and contributing

to the causes of healthcare,

education and environment and

believes in playing a pivotal role

in building a positive relationship

with the society in which it

operates.

EFU Life has joined hands with

numerous renowned nongovernmental

organizations for

a better and prosperous Pakistan.

Mar - Apr - 2022

banking solutions and services

has seen a sharp increase, and this

expansion highlights HBL Islamic

Bank’s commitment to support our

clients’ strategic needs. With tailor

made financial solutions, we will

continue to maintain our lead as the

eminent Islamic Banking player in the

industry.”

Commenting at the Naya Nazimabad

inauguration, Arif Habib, Chairman

Javedan Corporation/Arif Habib

Group, said, “Naya Nazimabad is an

evolving community and its residents

have growing financial needs. We are

delighted that one of Pakistan’s biggest

and fastest-growing digital banks,

HBL, too has begun its operation in

Naya Nazimabad.”

products with other partner banks.

Shoaib Javed Hussain, Chairman State

Life, said at the event, “it is pleasure

to announce the partnership between

State life and BOP at the start of State

Life 50th anniversary. The State Life is

a leading insurer in the country and

is also backed by sovereign guarantee.

The partnership brings together two

leading organizations of Pakistan with

shared vision of ensuring inclusion and

protection of people of Pakistan across

all strata of society with the mutual

goal of increasing economic activities

in the country. We see this step as a

beginning of a successful partnership

between the great Pakistani two

corporate entities.”

BankIslami posts

PAT of Rs2.13bn

BankIslami Pakistan Limited (‘the

Bank’ or ‘Bankislami’) announced its

financial results for the year ended

December 31, 2021. Year 2021 proved

to be a successful

year for the

Bank wherein

the Bank not

only crossed Rs

300 billion land

mark in Deposits

by closing its

deposit book

at Rs 344.8 billion as at Dec 31, 2021,

depicting a growth of 21.6 percent from

last year, but it also crossed deposit per

branch benchmark of Rs. 1 billion at

the end of the year 2021. Moreover, the

Bank also posted its highest ever profit

after tax of Rs. 2.13 billion.

30


TRADE CHRONICLE

Mar - Apr - 2022

British HC visits MG JW

Automobile

The British High Commissioner to

Pakistan, Dr. Christian Turner visited

the MG JW Automobile Pakistan (Pvt)

Ltd facility in Lahore.

Speaking at the event, Dr Turner said

“It is a wonderful showcase of the

British Automotive Brand in Pakistan.

Bohat Mubarak! The future is electric

and MG will be cutting down carbon

emissions with electric vehicles for

cleaner and greener Pakistan.”

MG with its British legacy has always

been a brand of ingenuity and

innovation. The brand entered the

Pakistani market under the flag of

SAIC Motor International, primarily

launching in the luxury category. The

first HS CKD variant line-off was held

on 28th May, 2021 and after successful

testing and trials, is ready to launch

locally assembled, world class vehicles

in the country.

Master Changan Motors

launches Oshan X7 in

Pakistan

Master Changan Motors Limited,

Pakistan’s disruptive automotive

brand, has announced the launch of its

SUV - Changan Oshan X7 at the ‘RHD

Global Premier’. This is the first time

in the history of Pakistan that a RHD

model is launched before any other

country in the world.

High burgeoning car prices may

impact sales volumes in FY23

The car sales volume increased by

around 50 percent in the first nine

months of the financial year 2022, but

industry experts see auto volumes

coming down in the next fiscal amid

increasing car prices and hike in

interest rates.

“Auto sales for March 2022 are expected

to clock in at 25,800 units which is a

growth of 29 percent on both year-onyear

and month-on-month basis. Sales

during 9MFY22 are set to grow by 50

percent year-on-year to 196,066 units,”

said Arif Habib Limited Research

Analyst Wasil Zaman.

However, Zaman added that he sees a

declining trend in auto sales volume

for the remaining part of the year as

the impact of increase in taxes and the

MG envisions a cleaner and

technologically advanced future

for Pakistan. The dream is to make

Pakistan a part of the global supply

chain and soon be able to export

Pakistan made MG vehicles across

the globe. As the company is ready to

start local production and very soon,

vehicles “Made in Pakistan”, will be

dominating the roads worldwide.

additional round of price hikes

in March 2022 would weigh in.

Meanwhile, Muqeet Naeem,

research analyst at Ismail Iqbal

Securities said that prices have gone

up by up to 36 percent since the

price came down last year after the

government reduced taxes and duties.

“Looking at the currency devaluation,

further price hikes cannot be ruled out.

Continuous price hikes coupled with

higher interest rates and limitations

on auto financing would likely hurt

auto demand in the next fiscal year,”

he added.

However, industry players said that

the entry of new players following

Auto Development Policy 2016-21

(ADP 2016-21) jacked up the capacity

somewhere above 400,000 cars, while

the demand fluctuates around 300,000

cars.

The government has also recently

grilled the auto industry for jacking up

car prices and has formed a committee

to investigate and see if there have

actually been cost pressures to increase

car prices proportionally.

Courtesy - The News

The CEO of Master Changan Motors

Limited, Danial Malik revealed the SUV

and announced the details during a

press conference in Karachi, featuring

a digital stream with an exuberant set.

The digital stream was also broadcast

at nationwide dealerships and by

Changan partner outlets around the

world.

The Changan Oshan X7 will be the first

Euro 6 vehicle made in the country

and demonstrates the company’s

resolve towards a cleaner Pakistan.

The Master Chagan plant is the most

environmentally friendly in the auto

industry, with 30 percent supported

by solar power; this is set to increase to

over 60% in the middle of this year.

The all-new Changan Oshan X7 will be

available in two variants - Oshan X7

FutureSenseTM (5 Seat) and Oshan X7

Comfort (7 Seat).

Speaking on the occasion, Danial Malik

spoke about how China is leading the

world’s auto technology future. He

highlighted recent achievements of the

160-year-old company.

“On one front, Changan is developing

a whole new intelligent electric car

platform with Huawei and CATL,”

Danial remarked.

31


TRADE CHRONICLE

Chery Tiggo becomes 12th

locally assembled SUV in

Pakistan

Ghandhara Nissan Limited (GNL)

has announced opening of bookings

for SUVs Chery Tiggo 4 and 8 Pro

in Karachi, with a price tag of Rs4.6

million and Rs6.6 million.

The company partnered with Chinese

Chery Automobile Co Ltd. for local

assembly and distribution of Tiggo

series sports utility vehicles (SUVs) last

year.

GNL said it had started assembling

of the SUVs and would be delivering

first batch of the vehicles in April and

May. Tiggo 4 is a 1.5L Turbo five-seater

vehicle, while Tiggo 8 is a 1.6 Turbo

seven-seater SUV. Before the Auto

Development Policy (ADP) 2016-21,

Toyota Fortuner and BR-V were the

only locally assembled SUVs. However,

nearly a dozen SUVs were introduced

after the auto industry was enabled by

the government’s policy. Kia Sportage,

Sorento, Stonic, Peugeot 2008, Hyundai

Tucson, Changan Oshan X7, DFSK

Glory, BAIC BJ 40, and Haval SUVs

are being assembled in the country.

However, GNL doesn’t have greenfield

or brownfield status under the policy.

Pak Suzuki Motor posts

of Rs489mn in 4Q2021

Pak Suzuki Motor Company (PSMC)

has posted a profit of Rs489mn (EPS:

Rs5.94) against a profit of Rs1,221mn

(EPS: Rs14.80) in the same period

last year. Gross Margins decreased

by 5.7ppts YoY to 3.6% in 4Q2021 due

to freight costs along with currency

devaluation and an increase in raw

material prices.

This takes 2021 profits to Rs2,679mn

(EPS: Rs32.56) against loss of

Rs1,378mn (LPS: Rs16.75). The

significant recovery in earnings is

mainly attributable to an increase in

unit sales by 108% YoY during 2021

due to the easing of COVID-19 related

lockdown and economic resurgence.

Courtesy - AHCML Research

Peugeot launches operations in

Pakistan with Lucky Motor Corp

The European automaker “Peugeot”

has officially launched operations in

Pakistan with its exclusive partner

Lucky Motor Corporation (LMC). The

company has initially introduced two

variants of Peugeot 2008 SUV - Active

and ALLURE in Pakistan.

Asif Rizvi, Cheif Executive Officer,

Lucky Motors Company said:

“Lucky Motors is set to change the

automotive landscape of Pakistan by

introducing Peugeot, the first locally

Al-Ghazi Tractors reports

4QCY21 NPAT of PKR743mn

Al-Ghazi Tractors (AGTL) has reported

4QCY21 NPAT of PKR743mn (EPS:

PKR12.82), up a sharp c.60% yoy but

down c.10% qoq. This takes CY21 EPS

to PKR51.03, more than doubling yoy

from an EPS

of PKR23.28

in CY20. The

result is slightly

lower than

our expected

4QCY21 EPS of

PKR13.87, where

the deviation

has stemmed largely from lowerthan-expected

gross margins. AGTL

announced a final DPS of PKR51.03,

greater than our expected DPS of

PKR47.

Key Highlights for 4QCY21:

• Net revenues of PKR5.4bn, broadly in

line with our expectations, up a strong

c.95% yoy (down c.5% qoq), largely

attributed to the c.60% yoy rise in

volumes to c.4,400 units. Also, the price

hikes in November further boosted

revenue, in our view.

• Gross margins clocked in at 21.3%,

down c.7.5ppt yoy and c.3.5ppt qoq,

due to (i) sharp rise in commodity

prices, shipping freight and other

Mar - Apr - 2022

made European brand in the

country. We are very excited

to partner with Peugeot

and look forward to being

associated with Stellantis, a company

that strongly believes in futuristic

mobility solutions.

The first step of this ongoing

commitment to the Pakistani customer

will begin with the introduction of

the Peugeot 2008. Rizvi also termed

the government Auto Industrial

Development Policy (AIDP) 2016-21 as

successful, saying that the government

policy has resulted the addition of 12

new entrants as car manufacturers

bringing in about 15 brands and 25

new vehicles in the country.

The consumers’ choice is limited

to cars designed from the Far East.

Sensing this gap and constraint in

customer preferences and choices, the

company signed up with Stellantis, the

4th largest car company in the world,

having 13 international brands.

input costs and (ii) sharp PKR

depreciation, in our view. Gross

margins are likely to be cushioned

from the continuously elevated input

costs in the coming quarters due to the

multiple price hikes, in our view.

• Distribution expenses decreased by a

sharp c.65% yoy despite the sharp rise

in sales. We await annual accounts for

further clarity on this. Admin expenses

rose c.75% yoy to PKR94mn. Other

income clocked in at PKR47mn, from

PKR14mn last year, due to greater cash

balances, in our view.

• Finance costs clocked in at negligible

levels. This is due to the full retirement

of debt amid strong sales growth. The

effective tax rate clocked in at 29%.

Despite the strong growth in sales

CY22td, margins are likely to remain

under pressure in the coming quarters

given the previous PKR slippage and

elevated commodity prices. Although

farmer dynamics remain favourable

for the sector, the potential increase

in GST in the FY23 Budget (assuming

no subsidies are given), remains a key

risk to the sector, in our view. Although

we have a Neutral stance on AGTL

with a December 2022 TP of PKR405/

sh, in light of the strong payout we

may revisit our estimates upon the

availability of detailed accounts.

Courtesy - Intermarket Securities Limited

32


E

Subscription of www.leatherbiz.com is also available at GBP 155/-

TRADE CHRONICLE


TRADE CHRONICLE


TRADE CHRONICLE


More magazines by this user
Similar magazines