Trade Chronicle Mar-Apr 2022
EDITORIAL • PM Shehbaz challenges on economic and political fronts • Pakistan to fine-tune petroleum policy to attract E&P investment • Falling FDI is a matter of concern ARTICLE & FEATURE • Shehbaz becomes 23rd PM of Pakistan • 33 MPs take oath as cabinet members - By Ayaz Akbar Yousafzai • Five 'band-aids' the new government must immediately apply to revive the bleeding economy - By Sajid Amin Javed • Potentials of the IT industry in Pakistan - By Dr. Muhammad Nawaz Iqbal • Package for IT sector in Pakistan • PIEDMC to promote industrialization in Punjab PAKISTAN CEMENT INDUSTRY • Pakistan cement dispatches fall in February and 8MFY22 • Lucky Cement plans a 34 MW captive solar power project in KPK • Cement prices surge to Rs850 • Maple Leaf Cement to become the 4th largest player in Pakistan • Pakistan's cement/clinker exports observe a mixed trend in 8MFY22 • Flying Cement gets a long-term mining lease PORTS, SHIPPING & RAILWAY • Work on $5bn Pak-Afghan-Uzbek railway kicks off • PICT posts record revenue of Rs 11,099 million • KPT organises seminar on ‘Marine Salvage’ • Gwadar Port to be utilised for Afghan transit trade • KPT conducts security drill at harbour • Pakistani freight train likely to reach Zahedan • PNSC Group has managed to achieve an 18% increase in PAT • PIBTL has released a financial report for the period ended Dec 31, 2021 Special Report 23rd March Pakistan day • President Dr Arif Alvi message on Pakistan Day • Pakistan showcases military prowess at the parade PAKISTAN LEATHER INDUSTRY • Consul General of Pakistan in UAE inaugurated Pakistan Pavilion in APLF 22 • India leather records growth of 33.45% in 10MFY22 • Sri Lanka leather export falls • UAE to provide duty-free facilities for leather • High energy and an optimistic mood pervaded APLF’s special edition in Dubai • Bangladesh leather industry exports increase in 8MFY22 REGULAR FEATURES • Automobile News, Banking & Insurance News, People Events, • Telecommunication News, Travel World, Steel & Allied Industry
EDITORIAL
• PM Shehbaz challenges on economic and political fronts
• Pakistan to fine-tune petroleum policy to attract E&P investment
• Falling FDI is a matter of concern
ARTICLE & FEATURE
• Shehbaz becomes 23rd PM of Pakistan
• 33 MPs take oath as cabinet members - By Ayaz Akbar Yousafzai
• Five 'band-aids' the new government must immediately apply to revive the
bleeding economy - By Sajid Amin Javed
• Potentials of the IT industry in Pakistan - By Dr. Muhammad Nawaz Iqbal
• Package for IT sector in Pakistan
• PIEDMC to promote industrialization in Punjab
PAKISTAN CEMENT INDUSTRY
• Pakistan cement dispatches fall in February and 8MFY22
• Lucky Cement plans a 34 MW captive solar power project in KPK
• Cement prices surge to Rs850
• Maple Leaf Cement to become the 4th largest player in Pakistan
• Pakistan's cement/clinker exports observe a mixed trend in 8MFY22
• Flying Cement gets a long-term mining lease
PORTS, SHIPPING & RAILWAY
• Work on $5bn Pak-Afghan-Uzbek railway kicks off
• PICT posts record revenue of Rs 11,099 million
• KPT organises seminar on ‘Marine Salvage’
• Gwadar Port to be utilised for Afghan transit trade
• KPT conducts security drill at harbour
• Pakistani freight train likely to reach Zahedan
• PNSC Group has managed to achieve an 18% increase in PAT
• PIBTL has released a financial report for the period ended Dec 31, 2021
Special Report
23rd March Pakistan day
• President Dr Arif Alvi message on Pakistan Day
• Pakistan showcases military prowess at the parade
PAKISTAN LEATHER INDUSTRY
• Consul General of Pakistan in UAE inaugurated Pakistan Pavilion in APLF 22
• India leather records growth of 33.45% in 10MFY22
• Sri Lanka leather export falls
• UAE to provide duty-free facilities for leather
• High energy and an optimistic mood pervaded APLF’s special edition in Dubai
• Bangladesh leather industry exports increase in 8MFY22
REGULAR FEATURES
• Automobile News, Banking & Insurance News, People Events,
• Telecommunication News, Travel World, Steel & Allied Industry
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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