Trade Chronicle Mar-Apr 2022

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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

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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
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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

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