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wishes is readers

• A Naional Dialogue on Charer of

Economy

• PTA signed beween Pakisan and

Turkiye

• A Review of indusrializaion in 75

Years of Pakisan - By Dr. Muhammad

Nawaz Ibal

• Agri’s 75 years of success and

sagnaion - By Ahmad Fraz Khan

• Profundiy of Pakisan Movemen -

By Dr. Hasan Askari Rizvi

Prime Miniser Shehbaz Sharif

is hoising he Naional Flag

• Cemen Indusry

• Pors, Shipping & Railway

• Leaher Indusry

• Texile Indusry

• Auomobile News

• Banking & Insurance News

• People & Evens

• Telecommunicaion News

• Seel & Allied Indusry

• Travel World

TRADE CHRONICLE

TRADE CHRONICLE Jul - Aug - 2022

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

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CONTENTS

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EDITORIAL

• A National Dialogue on Charter of Economy

EDITORIAL COMMENTS

• PTA signed between Pakistan and Turkiye

Special Report

14 th August Pakistan Independence Day

• Message from President Dr. Arif Alvi

• Message from PM Shehbaz Sharif

• A review of industrialization in 75 Years of Pakistan - By Dr. Muhammad Nawaz Iqbal

• Agri’s 75 years of success and stagnation - By Ahmad Fraz Khan

• Profundity of Pakistan Movement - By Dr. Hasan Askari Rizvi

CEMENT INDUSTRY

• Pakistan cement dispatches dwindle in July 2022

• FY22 ends with mixed export dispatches from Pakistan

• Bangladesh expects a 15% growth in cement exports in FY22-23

• Lucky Cement’s production to increase 15.3Mt by Dec 22

• Cherat Cement Company sales its hydropower project’s feasibility

• Kohat Cement plans renewable energy project

PORTS, SHIPPING & RAILWAY

• Pakistan fails to register new shipping co, since 2001

• Maritime affairs play a key role in revenue generation

• PNSC acquires two secondhand Aframax Crude oil tankers

• Hutchison Ports Pakistan sponsors Pakistan's youngest table tennis player

• KPT's pictorial news

• KPT handled 51.71m tons cargo, 2.21m TEUs containers in 2021-22

• FOTCO asked to submit its proposal afresh

• DP World reports volume growth of 3.5% in 2Q2022

• Engro and Excelerate Energy Sign MoU to Develop Private RLNG Sector in Pakistan

• Prantik Group facilitates Mongla port dredging operation in Bangladesh

LEATHER INDUSTRY

• Lumpy skin disease, other challenges cast a shadow on tanneries

• ACLE2022 to be Rescheduled

• Pakistan leather export increases in FY22

• India leather industry records 42% in Apr jun22

• CLE and Uzbekistan signed an MoU

• Bangladesh posts 32.23% growth in leather exports

• CLE to participate in Melbourne, Australia

TEXTILE INDUSTRY

• FY21-22: Textile group exports witness 25.53pc growth

REGULAR FEATURES

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

• Telecommunication News, Travel World, Steel & Allied Industry

3


We begin with the name of Allah the Magnificient

A National Dialogue on Charter of Economy

Prime Minister Shehbaz Sharif, on this 75th Independence Day, again

reiterated holding a national dialogue and developing a consensus on the

charter of the economy. He urged all stakeholders to join in transforming

Pakistan into an economic power. It's a timely vow when Pakistan has

completed three-quarters of its existence and happened to be in dire need

of harmony among politicians and all stakeholders to steer the country to a

peaceful and prosperous country with honoured rights and full justice. It is a

big question mark that when we have become a nuclear power, why not also

become an economic power?

All leading papers wrote editorials and welcomed PM dialogue on the Charter

of the Economy with some reservations and suggestions.

From the

editor's

desk

ABDUL RAB SIDDIQI

The leading paper Dawn abstracted: It is a fundamentally well-intentioned

idea, but it remained an elusive dream thanks to our polarised political

landscape. The idea for a charter of the economy was built on the Charter

of Democracy signed by PML-N supremo Nawaz Sharif and the PPP`s late

Chairperson Benazir Bhutto in London in 2006. After years of rivalry, they

repeatedly conspired against and undermined each other to the country`s

general detriment. The Charter of Democracy had set certain ground rules

for how politics would be fought in Pakistan between the two major parties.

In much the same way, the proposed charter of the economy will likely set red

lines that the signing parties will agree not to cross in their fight for power.

The need for such rules was felt increasingly over the past few years as the

country stumbled from one crisis to another. At the same time, successive

governments kept leaving the tough job of implementing economic reforms

to their respective successors.

The idea was for politicians to sign a common reform plan and agree to keep

it off the table. At the same time, if they bicker and fight over everything else,

the economy will at least get some space to stabilise and grow with a measure

of continuity.

The Business Recorder, from an economic angle, stated that Fawad

Chaudhary’s dismissal of the charter of the economy as a “foolish idea” also

reflected his lack of knowledge of what was happening in this country not

only during the pre-2018 era but also during the 3.8 years tenure of PTI

(Pakistan Tehreek-e-Insaf ), however abortive. First and foremost, there

was no structural reforms undertaken which explained why the circular

energy debt reached more than 2.3 trillion rupees: It reflected a level of

incompetence, inefficiency and corruption in this sector that accounted

for its emergence as the largest drain on the government’s scarce resources,

for making productive sectors uncompetitive internationally (thereby

impacting on exports) and within the country (with smuggling across our

large porous borders).

Similarly, state-owned entities (SOEs), apart from the energy sector, today

accounted for a rising percentage of our resources and, again, claim

improvements through changing the board members or strengthening

the boards or appointing senior management on merit or ensuring that

overstaffing is dealt with a pledge that has been made by each incoming

4


government that remains

unfulfilled to this day. And

successive governments,

including the present and

the previous, have increased

expenditure, particularly

current spending, by a

considerable amount — one

trillion rupees in the current

year and the same amount in the

budget for 2021-22 — and relied

on borrowing from abroad as

well as domestically to fund it.

Experts on economics wisely

said that Pakistan was now

undergoing the most severe

Editorial Comments

PTA signed between

Pakistan and Turkiye

Pakistan has Free Trade

Agreements (FTA) with Sri

Lanka, China, and Malaysia,

besides having Preferential

Trade Agreements (PTA)

with Iran, Indonesia, and

Mauritius. The PTA includes

comprehensive provisions

on bilateral safeguards, the

balance of payment exceptions,

dispute settlement, and periodic

agreement review.

Whereas a much-awaited PTA

between Pakistan and Turkiye

was reached on August 12,

witnessed by Prime Minister

Shehbaz Sharif when the visiting

Turkish Trade Minister Dr

Mehmet Mus and Minister for

Commerce Syed Naveed Qamar

signed the accord.

Prime Minister Shehbaz Sharif

termed the agreement “a great

moment and a milestone” in

the brotherly and historical

relations between Pakistan and

Turkiye. A key highlight of the

trade concessions offered by

both sides under the agreement

is that Turkiye had provided

benefits to Pakistan on 261 tariff

lines, which included key items

economic crisis in its 75-year

history and could not sustain

further deterioration in the

economy.

The future depends entirely

on whether all stakeholders in

Pakistan’s economic landscape,

including the business

community and political

parties, are willing to put aside

their differences and develop a

national economic policy that

will be implemented regardless

of which party comes to power.

This will help ensure continuity,

restore the confidence of foreign

of Pakistan’s export interest to

Turkiye from both agriculture

and the industrial sectors.

We believe the Trade in Goods

Agreement will help achieve the

strategic bilateral trade goal of $

5 billion in the medium term.

We hope this agreement will lay

the foundation for a gradual

liberalisation of goods, services,

and investment by establishing a

Free Trade Area under the ambit

of the deal. It was because of a

Joint Scoping Study conducted

to identify the areas in which

both sides can make progress in

reducing tariff barriers to trade.

The total trade between

Pakistan and Turkiye stood at

$883 million in the fiscal year

2021-22, with Pakistan’s exports

to Turkiye amounting to $366

million and Pakistan’s imports

from Turkiye amounting to

$517 million. The trade balance

is in favour of Turkiye, with a

negative trade balance of $151

million in 2021-22.

We should be careful about

Pakistan - Turkiye relations.

The Employer’s Federation of

Pakistan said that Pakistan has

agreed to give duty exemptions

on almost 220 products. In

5

donors and investors, and bring

some semblance of hope to a

populace in distress.

Whether our leaders can bury

their egos and personal agendas

long enough to come together

and make tough decisions for

their people remains a billiondollar

question.

It is, after all, the ability to create

bold, controversial, but wellthought-out

decisions in times

of crisis that is the true measure

of a real leader.

contrast, Turkiye has granted

an exemption on 120 products.

EFP alleged that the Ministry of

Commerce has failed to reach

out to the private sector for

consultations on the PTA.

However, FPCCI has

categorically rubbished the

claims that the private sector of

Pakistan was not taken on board.

Even a high-profile ceremony

to celebrate Pakistan-Turkiye

Trade in Goods Agreement was

attended by Syed Naveed Qamar,

Federal Minister for Commerce

& H.E. Mehmet Mus, Trade

Minister of Turkiye, Mr Irfan

Iqbal Sheikh, President FPCCI

and Mr Suleman Chawla, SVP

FPCCI.

Mr Irfan Iqbal Sheikh, President

of FPCCI, has said that the

true bilateral trade potential

of Pakistan and Turkiye is $5

billion at the moment, and the

signing of the Pakistan – Turkiye

Trade in Goods Agreement has

paved the way for the realisation

of the potential.

We hope that Pakistani

exporters should target valueadded

textiles, sports goods,

surgical equipment, rice, fruits,

vegetables and construction

materials.

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

TRADE CHRONICLE

TRADE CHRONICLE th

Jul - Aug - 2022

Message from President Dr. Arif Alvi

On the joyous occasion of the

75th anniversary of Pakistan’s

Independence, I extend

my heartiest felicitations to the

nation. This day reminds us of

the innumerable sacrifices

rendered by our Founding

Fathers under the dynamic

leadership of Quaid-e-Azam

Muhammad Ali Jinnah

for carving this homeland

“Pakistan” for us. Today, we also

reaffirm our resolve to uphold

Pakistan’s ideology and make Pakistan

an ideal modern Islamic welfare

nation-state.

This year, we are also celebrating the

Diamond Jubilee of our independence,

and in this regard, various ceremonies

are being organized across the country

to mark this propitious occasion. The

aim of these events is to educate and

create awareness among our people,

especially the Pakistani youth, about

the significance of national solidarity,

Pakistan’s ideology and the Freedom

Movement. I would like to commend

the efforts of all stakeholders in

Message from PM Shehbaz Sharif

The 75th Independence Day is

a watershed moment in our

nation’s history. Today we pay

rich tributes to Muslims of the subcontinent

and express our collective

gratitude to them for their heroic

struggle and epic sacrifices for creating

a new state. The establishment of

Pakistan is an outcome of the Quaidi-Azam’s

single-minded devotion,

unflinching resolve and unwavering

struggle. From the conception of an

idea in 1930, Pakistan emerged on the

map of the world as the largest Muslim

country in a short span of 17 years.

The coming of Pakistan into existence

was no less than a miracle that stunned

friends and foes alike, beating all

predictions and assessments. Where

the 75th Independence Day is an

occasion of jubilation and festivity, it

is also a moment of reflection and selfaccountability.

We, as a nation, have

achieved many milestones during the

last seven and a half decades. From

thwarting external aggression to

organizing events to

commemorate this

historic moment. On the

occasion of this Diamond Jubilee, there

is a dire need to assess our successes

and failures. In our 75 years of history,

we successfully overcame various

challenges. We not only emerged

as a nuclear power but also

defeated the menace of

terrorism. In the recent past,

we successfully managed the

COVID-19 pandemic.

On this historic day, we pay

homage to that personnel of our

Armed Forces and Law Enforcement

Agencies who had laid their lives for

the defence, security and safety of our

motherland. We also appreciate our

workers, labourers, women, youth, the

business community, minorities and

all those who have played their role

in the development and progress of

our country. Today's Pakistan is facing

challenges on economic and political

fronts,but I strongly believe that our

nation will overcome these challenges

with its proven commitment,

determination, and patriotism as well

as with hard work, unity, discipline,

putting together a federal

constitution to becoming the

7th nuclear power of the world

to beating the scourge of terrorism, we

have come a long way. The odds were

definitely heavier than anyone could

imagine, but our national will to defeat

them was stronger.

At the same time, it is also a fact that

we have not been able to realize the

dream that our founding fathers

dreamed fully; the dream of socioeconomic

justice, rule of and equality

before the law, and the dream of an

egalitarian society. While we are an

independent nation, a precious gift

for which we cannot thank Allah

Almighty enough, true freedom lies in

being free from want, hunger, poverty

and backwardness. As long as we

do not have economic sovereignty,

the concept of freedom will remain

incomplete. Nothing is more

dangerous for a nation than internal

division; disruption and chaos, for

such negative forces, undermine the

solidarity and integrity of the country

and rob societies of their national

mutual harmony and solidarity.

While celebrating Independence Day,

we should not forget our oppressed

brothers and sisters in the Indian

Illegally Occupied Jammu and Kashmir

(IIOJK). India has been committing

egregious human rights violations in

IIOJK for decades, and it has been three

years since India unilaterally revoked

Article 370 and abolished Article 35A

to deprive IIOJK of its special legal

status on August 5, 2019. I assure

our Kashmiri brethren that Pakistan

will continue to extend all possible

political, diplomatic and moral

support to them in their legitimate

struggle for self-determination in

accordance with the UN Resolutions.

In the end, I urge the entire nation

to remain steadfast and work

wholeheartedly for the development

and progress of our country and the

prosperity of our people. We need to

remain united to overcome financial,

economic and security challenges

faced by the country. Let us pledge that

we will remain steadfast in rendering

any sacrifice for the dignity and selfrespect

of our people and the greatness

and glory of our beloved homeland.

Insha’Allah!

purpose. The Quaid-i-Azam warned

against such evils and gave us the

motto of “unity, faith and discipline”

as an antidote. The greatest strength of

our country is the people, particularly

the youth.

It is their energy, resolve and passion

that is capable of overcoming any

odds, beating any hurdle and lighting

the candle of hope. We can push back

the divisive and nihilistic forces with

the power of the people and protect

our freedom and identity. I have my full

faith in their capabilities to chart a way

forward. While celebrating the 75th

Independence Day, let us seek guidance

from the ideology and thoughts of our

founding fathers and put the welfare of

our people at the center of our mission

of national rejuvenation. Let us vow

to turn Pakistan into a nation-state

that reflects the ideals of our founding

fathers. On the historic occasion

of the 75th Independence Day, I

congratulate the people of Pakistan,

including overseas Pakistanis. Pakistan

Paindabad!

7


75 years of Pakistan

8


A review of industrialization in 75 Years of Pakistan

By Dr. Muhammad Nawaz Iqbal

Up until the fiscal year 2021, the

industrial sector in Pakistan will

provide 28.11% of the country's

GDP. Manufacturing accounts for

12.52 percent of this, followed by

mining (2.18 percent), construction

(2.05 percent), and power and gas (1.36

percent). The majority of industrial

units are in the textile sector, which

contributes $15.4 billion in exports, or

56% of all exports. Chemicals, medical

devices, and a developing automobile

industry are additional units.

The manufacturing of cotton textiles

is the single most significant industry,

employing around 19% of all largescale

industrial workers. In 1999–2000,

Pakistan's exports of cotton yarn,

cotton cloth, made-up textiles, readymade

clothing, and knitwear totaled

close to 60%. Cement, vegetable oil,

fertilizer, sugar, steel, equipment,

tobacco, paper and paperboard,

chemicals, and food processing are

further significant businesses. The

national industrial base is being

diversified, and export-oriented

industries are receiving more attention

from the government. Since the middle

of the 1960s, the industrial sector

has contributed between 19 and 25

percent of the nation's gross domestic

product (GDP), or 24.5 percent in

2004. With over 19 percent of GDP

each, manufacturing and construction

dominate the industrial sector.

Since the 1980s, the industrial sector has

employed between 17 and 20 percent

of the working population (25 percent

in 2004), primarily in manufacturing

and construction. Although the

industrial base has expanded since

independence, textiles and sugar still

dominate the manufacturing base.

As a result, production is susceptible

to bad weather and changes in the

price of commodities like sugar and

cotton on the global market. In cities

and towns, cottage industries have

also become incredibly important.

Hand-woven carpets, embroidered

pieces, brassware, rugs, and traditional

bangles are in high demand. These are

likewise regarded as significant export

goods and are in high demand on

global marketplaces.

Textiles, food, drinks, and

tobacco, Coke & Petroleum, and

Pharmaceuticals make up the

majority of Pakistan's manufacturing

industry. Large Scale Manufacturing

(LSM), Small Scale Manufacturing

(SSM), and slaughtering are the three

"components" of the manufacturing

industry. Small Scale Manufacturing

comes in second with 2.12 percent

of total GDP and a 16.6 percent

sectoral share, trailing Large Scale

Manufacturing, which accounts for

9.73 percent of GDP and 76.1 percent of

the sectoral share in the manufacturing

industry as a whole.

About 3.7 percent of our overall

exports are made up of sports goods.

The primary raw materials used in

the production of sporting goods

are imported PVC as well as leather

and mulberry wood, both of which

are found in Punjab. The majority of

footballs, hockey pucks, hockey

sticks, cricket bats, and rackets are

made by hand. Both Sialkot and

Lahore have access to skilled labor.

Large and medium-sized factories

in the sector subcontract work to

home-based and small businesses.

One of Pakistan's main sources

of foreign exchange gains is the

local manufacturing of sporting

products. It is mostly produced

in and around the city of Sialkot,

where it has thrived as a cottage

industry thanks to generations of

talented craftsmen. This industry

was in its infancy at the time of

independence, with a nominal

export of Rs. 0.82 million. By

offering producers loans and

incentives as well as making plans

9

to market the created goods, the

government moved swiftly to grow

this industry. Taiwan, India, and South

Korea are among the fierce competitors

in this sector. The chance to modernize

and mechanize the business has not

been taken advantage of, despite the

government having offered numerous

incentives and facilities.

Pakistan's manufacturing sector is

centered on textiles, which account for

56 percent of all exports, $15.4 billion

in export revenue, and 40 percent of

employment. Pakistan is the world's

fourth-largest producer of cotton

and the eighth-largest exporter of

textiles in Asia. Textiles are in higher

demand due to rising urbanization

and a middle-class that is expanding.

Pakistan's major manufacturing sector

is the textile industry. In Asia, Pakistan

is the eighth-largest exporter of textile

goods. Pakistan's GDP is 8.5% derived

from the textile industry.

Additionally, the industry employs

38% of the manufacturing workforce

and roughly 45% of the nation's entire

labor force. Pakistan is Asia's thirdlargest

cotton producer by spinning

capacity, behind China and India,

and it provides 5% to the world's total

spinning capacity. Currently, there are

442 spinning units, 124 big spinning

units, and 425 small units that

make textiles, totaling 1,221 ginning

units. In Pakistan, it dominates the

manufacturing sector. $3.5 billion 6.5

percent of all cotton shipped globally

in exports between 2017 and 2018.

In Asia, Pakistan is the eighth-largest

exporter of textile goods. Contribution

to the economy is almost 8.5% of the

overall GDP. About 45% of the labor

force in the nation is employed in the

textile sector.

Since the early 1980s, various

liberalization reforms have been

pursued, but have been hampered

by significant corruption, frequent

shortages of raw materials, the

government's propensity to grant

generous concessions to specific

industries, such as sugar refining

and yarn spinning, and an onerous

tax structure that has assisted in the

growth of the informal economy.

According to estimates, Pakistan loses

between 5 and 6 percent of its GDP,

or roughly $6 billion, as a result of

inadequacy. Our products' production

costs are increased by around 30% as a

result of logistical difficulties.


Agri’s 75 years of success and stagnation

By Ahmad Fraz Khan

Agriculture, by far, is the biggest

human activity in Pakistan,

providing a way of life to twothirds

of the population, contributing

22.7 per cent to GDP, providing 37.4pc

of national employment and anchoring

over 70pc of exports.

Despite this phenomenal importance,

the last 75 years present a patchy

picture of the sector: progressing here

and regressing there — enviable during

a certain period and disappointing

in others. Painting this decade-wise

picture tells us that it witnessed record

growth in the 1960s before slumping

during the early 1970s. Recovering in

the second half of the 70s, it sustained

around 5pc growth in the 80s and 90s.

Since then, a growth rate between less

than 1pc to 4pc has merely covered

population growth and demand for

food and fibre for the last two decades.

Historically speaking, the stage for

early growth was set by a commission

in the late fifties, which led to multiple

development strategies through the

sixties. Commonly known as the Green

Revolution, it was an era of high, rather

record, growth with the introduction of

high-yielding crop varieties. Modern

inputs like fertiliser and pesticides were

introduced and progressive irrigation

ways revolutionised the sector.

During that decade (1963-73),

Pakistan’s per capita income grew by a

healthy 27pc. As added an advantage,

this growth mainly occurred in rural

areas, where poverty resided. This

high growth period led to the setting

up of the embryonic fertiliser, tractor

and seed industry, which later grew

to expand to their current levels. The

early seventies also saw the beginning

of the poultry industry, which now

boasts of over Rs400 billion investment

and is a proud global competitor when

it comes to technology and stocks.

The next foundational policy

document was produced three

decades down the line by Pakistan’s

most prolific technocrat Sartaj Aziz

in the late eighties, which not only

diagnosed the then emerging ills but

also prescribed its treatment and set

parameters for the way forward. For

most writers and experts in the sector,

it is still considered the most relevant,

but ignored,

document.

For the next 34 years

ago, no one bothered to seek guidelines

from it or refresh it through another

attempt at the same level, thus creating

a policy vacuum at the national level.

However, beyond these works, which

should have created a policy and

development discipline, the sector has

grown at its own pace and direction

— dictated by potential and profits,

regardless of sustainability and cost of

the experiment.

In the last seven decades, crop

concentration has hit 167pc against

the 67pc of irrigation planning —

producing three crops instead of the

historical one crop from the same soil.

Imported hybrid seeds multiplied the

number and yields of crops beyond

most calculations and sustainability.

For example, maize, which at merely

705,000 tonnes in the 70s, has gone

beyond eight million tonnes. Rice

numbers grow both in variety and yield

and hit production of 7.5m tonnes —

with over 4m tonnes being exported

— making Pakistan the tenth largest

producer globally.

Cotton production rose from 188,000

bales in the 1950s to over 14m bales

at one point, before dipping down to

half of it right now. Sugarcane stood at

81m tonnes in 2020 — rising from 23m

tonnes in 1971. The potato crop has

gone beyond 6m tonnes.

All these figures look impressive when

taken out of context because they have

put Pakistan on the world food map

in a respectable position: cotton, rice

and mango (4th), milk, sugarcane and

date palm (5th), citrus (6th), wheat and

onion (7th), chickpea (3rd) and apricot

(6th).

However, when taken in the backdrop

of the cost of this unplanned growth

on soil health and underground water,

the achievements are disastrous.

According to global standards, the soil

must have 1.29pc organic matter to

qualify as healthy. In Pakistan, most of

it has fallen below 1pc, with massive

tracks having only half of 1pc. As far as

subsoil water is concerned, Pakistan’s

potential is 68bn square meters, out

of which 60bn square meters are being

exploited. It is not being exploited only

10

in those areas where pumping the

water out is not feasible for technical

or economic reasons. It means that

this resource is almost exhausted. In

most of Punjab, as some recent studies

indicate, the level is dropping by one to

three feet every year.

Even among those crops, which have

seen a phenomenal rise in the last

few decades, the two most crucial

ones — wheat and cotton — have hit

stubborn stagnation. Wheat has been

stuck at 25m tonnes for the last eight

years, with little variation every year

— turning Pakistan into a net importer

over the last four years.

Similarly, cotton production is actually

receding, leaving the industry largely

dependent on imports as other crops

hog its area and economic sheen.

Since policy planning and direction are

missing, Pakistan is importing both at

great foreign exchange pain.

These seven decades also present

two more phenomenal failures:

mechanisation and research. Since

independence, mechanisation meant

tractorisation and some harvesting and

thrashing units. The tractor industry,

which was the harbinger of the farm

mechanisation process, has hogged all

subsidies and other benefits for itself,

leaving others out and ignoring the fact

that the tractor does not perform at its

optimum utility when running on its

wheels alone — it needs implements

alongside to hit optimum utility and

most of them are simply not there.

Soil generally needs three kinds of

inputs — primary (soil preparation),

secondary (agronomic practices) and

tertiary (harvesting). All of them need

a complete range of implements which

are missing in Pakistan’s scheme of

things. Successive governments have

announced subsidies on tractors and

ignored the rest and compromised

farm mechanisation in the process.

Research has also been a sore point

in Pakistan’s context. It has spent far

less than 1pc of agriculture GDP on

research, against 6-7pc by others like

India. This only increased dependence

on imported seeds, which defied local

ecological realities and soon lost utility.

Climate change has added urgency to

research requirements and makes this

investment absolutely necessary.

Courtesy - DAWN


Profundity of Pakistan Movement

By Dr. Hasan Askari Rizvi

Pakistan celebrates its

Independence Day on

August 14. This date

has more significance this

year because Pakistan

has completed 75 years

of its independence.

Its history of 75 years

represents successes as well

as disappointments.

Pakistan began its career as an

independent state under extremely

difficult conditions. New federal

government and a new provincial

government were established in

Karachi and Dhaka, respectively.

The three provincial governments

of Sindh, the then NWFP (now KP)

and Punjab were linked with the

new federal government in Karachi.

The same was the situation of

Balochistan. Communal riots and

unplanned migrations created difficult

administrative and human problems

for the new state. The economy

suffered from serious dislocation and

disruption. Almost all parts of Pakistan

were adversely affected by the two-way

human migrations.

It was not surprising that many

political observers in Great Britain

and India thought that Pakistan would

collapse under the weight of its initial

problems.

Pakistan defied

the “doomsday”

predictions

about its future. It

tackled the initial problems

and focused on turning

the new state into a

sustainable political and

economic entity. By 1954-

55, Pakistan had become

a viable state. Pakistan

further strengthened its

credentials as an independent

and sovereign state in the

subsequent years, although the quality

of performance often faltered and

its leadership found it problematic

to adequately cope with external

security challenges and internal

political, economic and administrative

obligations.

There were many disappointments

during the last seventy-five years. We

could not create viable participatory

political order that assigned priority to

human development and welfare. The

dream of a better and secure future for

the people could not become a reality

and the slogans of constitutionalism,

the rule of law and socio-economic

justice for all citizens irrespective of

ethnicity, region, religion and gender

did not fully materialize.

While celebrating the Independence

Day this year we need to pay attention

to three major issues. First, we

must pay tribute to the leaders who

articulated the idea of a separate

11

homeland and then turned it into

a reality. We should also remember

the people who lost their lives in the

communal riots and in the attacks

on their convoys moving from India

to Pakistan by railway trains, bullock

carts and on foot. Second, there is a

need to revisit the circumstances and

factors that led the All India Muslim

League to seek a separate homeland

for the Muslims of British India. Third,

we need to make a dispassionate

analysis of why we faltered in creating a

flourishing democracy and a just social

and economic order. Why poverty and

underdevelopment continue to haunt

us?

These three issues can link the postindependence

generations with

the realities of the independence

struggle and the violence and the

refugee problem of 1947 to give them

a better understanding of why and

how the new state was created. This

understanding will enable us to judge

our successes and disappointments

in the post-independence period and

how to overcome our shortcomings.

In this article we are focusing on the

second issue which will also address

the first issue of paying tribute to the

makers of Pakistan.

The establishment of Pakistan can

be appreciated by focusing on four

inter-related aspects of the freedom

struggle. These four aspects are the

distinct socio-cultural identity of the

Muslims that distinguished them

from other communities in British

India; the establishment of the

modern state system in India by the

British government and its impact on

different communities in India; the

Muslim political experience in British

India; and the demand for a separate

homeland.

The Muslims in British India were the

descendants of the Arab traders or the

migrants from Afghanistan, Central

Asia, Iran or they were local converts.

Their social disposition was rooted

in the civilizational, historical and

cultural heritage of Islam and their

intellectual inspiration came from

the teachings and principles of Islam.

Their nostalgia of the glory was based

on the period of the Muslim rule in

India. Over time, they became different

from the Muslims of Central Asia and

the Middle East. Similarly, they turned

different from local Hindu population

as well. This brought in existence an


identity, often described as ‘the

Indian Muslim’.

No doubt, the Muslims and

other communities lived

together in pre-British

India under Muslim as

well as non-Muslim rulers.

The situation changed

under the British rule when a

competition developed between

the elite of the Muslims and the

Hindus. Some Indian writers attribute

the conflict between the Muslims and

other communities in India to the

British policy of ‘divide and rule.’ As

a matter of fact, it was not the ‘divide

and rule’ policy but the establishment

of the modern state with legal-rational

authority in India by the British that

changed the socio-political, economic

and administrative make up of India

which created a new context for intercommunal

interaction. Its imperatives

diverged the two communities as

their interests began to clash. The

British gradually introduced modern

education, system of limited elections

and competitive recruitment to civil

services. As the Hindus were the first

to get modern British education, they

had the advantage in fitting into the

modern state system as compared to

the Muslims who began to get modern

education only in the last quarter of

the 19th Century. The competition

among the two communities by the

electoral process and recruitment

to government services made the

two communities conscious of their

identities and they began to think

about their share in the elective bodies

and civil services in the beginning of

the 20th Century.

Some Muslims elite joined the Indian

National Congress (the Congress)

but most of them stayed away from it

because they thought that the Congress

was not adequately inclined towards

protecting their rights and interests in

the modern state system. The Muslim

elite demanded separate electorate

for electing Muslim representatives

in October 1906 because they learnt

from their experience that the INC did

not help the Muslims to get elected

to elective bodies. In December 1906,

the Muslim elite established the All-

India Muslim League as an exclusively

Muslim party to articulate Muslims’

rights and interests and present them

to the British. These two developments

(demand for separate electorate and

the establishment of the All India

Muslim League (Muslim

League)) were

the first sold

expression of

a separate

M u s l i m

political

identity and a

strategy to protect

their separate rights

and interests in the modern

state system. The British government

granted separate electorate to the

Muslims in 1909.

By 1909-10, the Muslims elite of British

India had developed their political

agenda which comprised protection

and advancement of Muslim

civilizational-cultural identity, political

rights and interests. The strategies for

achieving these goals changed over

time but these objectives remained the

same.

The Muslim elite changed its

strategies in view of their political

experience of interaction with the

Congress that often attempted to bypass

the Muslim elite and adopted a

dismissive disposition towards the

Muslim demands for protecting and

advancing their identity, rights and

interests. With the passage of time

their experience of interaction with

the Congress ranged from negative to

hostile. The Congress was not prepared

to recognize the Muslims as distinct

community with their own interests

and rights that needed to be given

special attention in policy making and

policy implementation.

The Muslim elite talked of

constitutional safeguards and

guarantees for the protection of

their socio-cultural identity, rights

12

and interests. The Lucknow

Pact of 1916 between the

Congress and the Muslim

League accommodated

Muslim demands for

representation in the

elected bodies and

government services.

However, this agreement

could not last long. The

Congress reversed the political

concessions given to the Muslims in

the Lucknow Pact in the Nehru Report

(1928) on constitutional reforms.

Quaid-i-Azam Muhammad Ali Jinnah

attempted to convince the Congress

leadership to accommodate the

Muslims demands in the Nehru Report.

The Congress refused to change the

report. The Nehru Report episode is

viewed as the “parting of the ways”

between the two communities. In 1929,

Jinnah delivered his famous speech,

outlining the Muslim demands,

described as Jinnah’s Fourteen Points.

The Muslim League leadership was

willing to accept a federal system

with autonomy for the provinces and

adequate guarantees for the Muslim

rights and interests. However, the

political experience of the Muslim

League in the 1930s convinced them

that the majority community and

the Congress were not willing to give

any guarantees for the protection

of what the Muslims viewed as their

cultural and religious identity and

rights and interests as a distinct

community. Their bitterest political

experience was during the period of

Congress ministries in non-Muslim

majority provinces in 1937-39. These

ministries subjected the Muslims to

discrimination in government jobs

and introduced an education system

that incorporated Hindu culture and


values under the rubric of Indian

culture. The Muslim leadership was

perturbed that Hindu religio-cultural

values were being imposed on Muslim

children through the state education

system.

The accumulative impact of the

Muslim experience of the behaviour

of the Congress leadership was that

the Muslim leadership began to think

about the alternative to the federal

system because the experience of the

Congress ministries in non-Muslim

majority provinces convinced them

that the majority community wanted

to overwhelm the distinct religiocultural

identity of the Muslims and

ignore their rights and interests.

It was against the backdrop of the

political experience of the Muslim elite

that the Muslim League decided to

discard the federal option and asked

for a separate homeland to secure their

future. Jinnah took the lead in arguing

that the Muslims of British India were a

separate nation and therefore needed

a separate homeland in the Muslim

majority areas in northwest and east.

He argued that a separate homeland

for the Muslims would not only secure

their future but it would also promote

peace and stability in the Subcontinent

because both nations would

live in accordance with their cultural

values and political preferences in

their separate homelands.

The demand for a separate homeland

for the Muslims of British India was

formally presented by the Muslim

League in its annual session in Lahore

on March 22-23-24, 1940. It was a new

political path for them and represented

a new nationalism -Two nations in

British India – which challenged

the conventional nationalism of the

Congress that talked of one Indian

nation. The ambiguities in the text of

the Lahore Resolution were removed

by 1943-1944, and the Muslim League

leadership left no doubt that it stood

for a single Muslim homeland of

Pakistan.

Though the demand for a separate

homeland of Pakistan was initiated by

the Muslim elite but it turned into a

popular demand after the Muslim elite

mobilized the Muslims of British India

in its favour. The mass mobilization

resulted in a landslide victory of the

Muslim League in the provincial

elections in 1946. The Muslim League

had contested these elections on a

two-item agenda. That the Muslim

League was the sole representative

of the Muslims, and its demand was

the establishment of Pakistan as a

sovereign independent state. Had the

Muslim League not demonstrated its

popular support in the 1946 elections,

the establishment of Pakistan would

have been delayed. In other words, the

establishment of Pakistan was linked

with the democratic process.

The speeches and statements of

Jinnah before and after establishment

of Pakistan showed that he wanted

Pakistan to be a modern democratic

state that derived its ethical

inspirations from the principles and

teachings of Islam. He was against

the notion of a theocratic or religious

13

state dominated by orthodox clergy. He

was convinced that the principles of

modern democracy could be combined

with the teachings and principles of

Islam which emphasize participatory

governance, the rule of law, equality for

all and socio-economic justice. Further,

the Lahore Resolution of March 1940

and speeches and statements of Jinnah

offered religious and cultural freedom

to religious minorities in Pakistan and

that they would be free to practice

their religion and maintain their

educational institutions. The religious

minorities were also promised equal

citizenship and equal protection of

law. The Objectives Resolution, March

1949, also gave religious and cultural

freedom to religious minorities.

It was because of the selfless

leadership of Jinnah and other

Muslim League leaders and sacrifices

of life and property made by several

million Muslims that Pakistan came

into being. Those born after the

establishment of Pakistan must

remember the nature and dynamics

of the freedom movement. Pakistan

is a gift from the pre-independence

generation. However, its present and

the future is in the hands of the present

post-independence and the future

generations.

About the Author: Hasan Askari is

a Lahore-based political analyst.

He holds the PhD Degree from the

University of Pennsylvania, USA. He

is a recipient of the Presidential Award

“Sitara-i-Imtiaz.”

Courtesy - Business Recorder

FY21-22: Textile group exports

witness 25.53pc growth

The country’s textile group exports

witnessed a growth of 25.53 percent

in the last financial i.e. 2021-22 and

remained at $19.329 billion compared

to $15.399 billion during 2020-21,

reported the Pakistan Bureau of

Statistics (PBS).

The data of exports and imports

released by the PBS revealed that during

July-June, 2021-2022 total exports of

the country remained $31.792 billion

(provisional) against $25.304 billion

during the corresponding period of

last year showing an increase of 25.64

percent.

The exports in June, 2022 were $2.918

billion (provisional) as compared to

$2.626 billion in May, 2022 showing an

increase of 11.12 percent and by 6.96

APTMA links export growth

to competitive energy tariffs

Patron in Chief All Pakistan Textile

Mills Association (APTMA) Dr Gohar

Ejaz in a statement has indicated

that the Pakistan textile industry is

expecting a notable increase in exports

during FY23 with a growth rate above

20 percent given that the government

continues with the Policy of ‘Regionally

Competitive Energy Tariffs’ for Exports.

Textile industry has posted record

exports of $4 billion in FY22 with its

expansion and investment plans of

about $5 billion under LTFF and TERF

schemes - YOY growth of 25 percent up

till June 30, 2022.

In addition, Pakistan textile industry

plans to import 6 million bales of

cotton this year from the USA and

Brazil.

percent as compared to $2,728

million in June, 2021.

The textile group exports registered

an increase of 3.93 percent on a

month-on-month basis as it reached

$1.706 billion in June 2022 compared

to $1.641 billion in May 2022. Textile

exports witnessed 2.86 percent growth

on a year-on-year basis and remained

$1.706 billion in June 2022 compared

to $1.658 million in June 2021.

Raw cotton exports registered 714.94

percent growth during July-June 2021-

22 and remained at $6.577 million

compared to $0.807 million during the

same period of last year.

Cotton yarn exports registered 18.67

percent growth during July-June 2021-

22 and remained at $1.206 billion

compared to $1.016 billion during the

same period of last year.

11 Pak firms participate

in Texworld Paris show

Some 11 Pakistani fabric and leather

manufacturers took part in Texworld,

Apparel Sourcing and Leatherworld

Paris held from 4 to 6 July 2022.

This summer edition - a first in July

for the trade fairs of Messe Frankfurt

France, Texworld Paris celebrated its

25th anniversary this year and marked

the return of the major sourcing

countries to Paris, the capital of

fashion.

As a sign of the recovery of the global

textile and clothing market, more than

400 exhibitors from about 20 countries

participated at this essential event.

The major sourcing countries such

as Bangladesh, China, Korea, India,

Taiwan, Turkey and Pakistan displayed

global fashion range. From Pakistan

fabric companies including Art Mill,

Kamal Limited, Kohinoor Mills, Liberty

Mills, Mekotex, Nishat Mills, Sapphire

Finishing, Sarena Textile, Shafi Texcel,

US and Dynamo Mills participated

in the fair. While from apparel sector

United Impex set up its booth on the

exhibition.

Pakistani stands were seen busy with

trade and buyers from UK, France,

Main commodities of exports during

June, 2022 were knitwear (Rs97,063

million), Readymade garments

(Rs75,350 million), bed-wear (Rs58,049

million), cotton cloth (Rs41,082

million), rice others (Rs35,268 million),

cotton yarn (Rs19,236 million), towels

(Rs18,643 million), madeup articles

(Excl towels & bed-wear) (Rs14,089

million), rice basmati (Rs12,838

million) and fruits (Rs9,699 million).

Germany and other European

countries.

Syed Ali Taha Rizvi Deputy General

Manager Sales and Marketing at

Kohinoor Mills, commenting on the

exhibition, said that it was a wonderful

show and Pakistani companies really

enjoyed presence at the show. “We had

a very busy show and got good number

of inquiries,” he added.

Hassan Asghar Butt, Manager

Marketing and Sales at Shafi Texcel

said that majority of the visitors from

UK, Italy and Spain visited booth. He

expressed satisfaction with outcome of

the show.

The next Texworld, Apparel Sourcing

and Leatherworld Paris will also be

held from 6-8 February 2023. Texworld

and Apparel Sourcing USA will be held

from 19-21 July, 2022.

Courtesy - Business Recorder

14


Pakistan cement dispatches

dwindle in July 2022

Pakistan dispatches a lesser volume

locally and internationally during

July 2022, translating into a total

figure of 2.039Mt cement. In terms of

percentage, it stands at 47.7, whereas

it recorded total dispatches of 3.899Mt

during the same month of last fiscal

year.

A representative of APCMA

emphasized that massive currency

devaluation, political uncertainty

and a deteriorating economy need to

be addressed by the government to

provide a stable industry environment.

The situation is alarming, and the

government must devise a solution to

bring the country out of this crisis.

According to the data released by the

APCMA, local cement dispatches by

the industry during July 2022 were

1.88Mt compared to 3.44Mt in July

2021, showing a decline of 45.28 per

cent. Exports dispatches also suffered

a massive decrease of 66.09 per cent as

the volumes reduced from 452,777t in

July 2021 to 153,517 tons in July 2022.

North and south comparison

In July 2022, North-based cement mills

dispatched 1.68Mt cement showing a

decline of 44.3 per cent against 3.02Mt

dispatches in July 2021. South-based

mills dispatched 352,747t of cement

during July 2022, 59.53 per cent less

than the dispatches of 871,601t during

July 2021.

North-based cement mills dispatched

1.61Mt cement in domestic markets,

showing a decline of 44.11 per cent

against 2.89Mt despatchers in July 2021.

South-based mills delivered 269,477t

cement in local markets during July

2022, which was 51.4 per cent less than

the dispatches of 554,442ts during

July 2021. Exports from North-based

mills also declined by 48.2 per cent as

the quantities reduced from 135,618t

in July 2021 to 70,247t in July 2022.

Exports from the South also decreased

by 73.75 per cent to 83,270t in July 2022

from 317,159t during the same month

last year.

FY22 ends with mixed export

dispatches from Pakistan

The Federal Bureau of Statistics (FBS)

of Pakistan has released cement export

data for July 2021-June and 2022 (twelve

months). Both value and quantity of

exports plummeted during this period

when compared with the equivalent

months in FY20-21, apparently due to

local and foreign fronts issues.

Pakistan's cement industry in

12MFY21-22 earned US$223.99m of

export revenue by dispatching 5.733Mt

of cement and clinker overseas,

compared to US$267.91m from

7.815Mt of exports in the year-ago

period.

The export figures represent a

noticeable double-digit fall of 16.39 per

cent in dollar terms and 26.64 per cent

in terms of volumes YoY, as reported by

FBS. The negative trend was also seen

in local currency terms, as the export

value decreased by 8.53 per cent to

Bangladesh expects a 15% growth

in cement exports in FY22-23

Bangladesh has set an export target for

the cement industry at US$11m during

the 12 months of the ongoing financial

year, ending 31 June 2023, compared

to US$9.57m earned in FY21-22. This

translates to expected growth of 15 per

cent YoY, according to the Bangladesh

Export Promotion Bureau (EPB) data.

Meanwhile, the first month of FY22-

23, i.e. July 2022, started with bringing

home US$0.72m of earnings on cement

exports, up by 94.6 per cent over the

same month last year. The figure also

includes a minor amount of salt, stone

and related products, says EPB data.

More than a dozen companies export

cement to India, Myanmar, Nepal,

PKR39.29bn from PKR42.96bn a

year ago.

However, on the contrary, in June

2022 alone, export revenues were up by

73.91 per cent to US$12.80m (267,937t)

over May 2022 of US$7.36m (151,133t).

The growth in volume stands at 77.29

per cent during this MoM period. At

the same time, value and quantity

declined by 10.65 per cent and 28.09

per cent if we take into account the

June 2021 figure of US$14.32 from

372,880t of cement/clinker.

The export of cement has declined

massively during the last financial year

due to the high cost of production. The

All Pakistan Cement Manufacturers

Association stated that the industry

is going through difficult times due

to the historically high prices of

fuel, electricity, coal and other raw

materials. The government should

devise a policy to help the cement

industry export from Pakistan, said a

spokesman of the Association.

Maldives and Sri Lanka.

Furthermore, local media

says that Bangladesh Cement

Manufactures Association

(BCMA) sent a letter to the commerce

ministry asking for a 10 per cent

cash incentive for exporting key

construction materials to increase the

current export volume threefold.

The volume of cement export was

0.25Mt in the 2021 calendar year.

The majority was exported to the

northeastern states of neighbouring

India, cites the letter. Seventy-six

cement companies are registered with

the government, but only 42 large-,

medium- and small-scale companies

are currently in operation. Of them,

seven have stock market listings,

according to the association.

Currently, all the 42 plants have

a production capacity of ~58Mta

against the demand of ~31Mta. The

cement industry is dominated by

only ten companies, including two

multinationals, holding around 75 per

cent of the total market share.

Published under Cement News (Courtesy)

15


Lucky Cement’s production

to increase 15.3Mt by Dec 22

Lucky Cement Limited announced

the financial result for 4QFY22/

annual (April –June 2022) on Aug 05

and had a Corporate Briefing session

in the evening at PSX to discuss the

company’s outlook.

Expansion project

The Company expansion of 3.15Mt at

Pezu in North is progressing well and

is expected to cost PKR 30bn. The plant

would come online in Dec’22. The

brownfield cement plant expansion

in KPK Province is in line with the

company’s growth strategy, the Board

of Directors on January 29, 2021.

After completion of this project, the

cement production capacity of Lucky

in Pakistan will reach 15.3Mta, says

Company officials’ notification to PSX.

The company also announced

installing a 34MW solar power project

with a 5.589MWh Reflex energy

Cherat Cement Company sales its

hydropower project’s feasibility

Director & Chief Operating Officer

of Cherat Cement Company Limited

(CHCC), Yasir Masood, informed

the Pakistan Stock Exchange (PSX)

on July 14 that Madian Hydro Power

Limited (MHPL) has entered into an

agreement with Pakhtunkhwa Energy

Development Organization (PEDO)

of the KPK Government for sale of the

Kohat Cement plans

renewable energy project

Kohat Cement Company Limited

(KOHC) informed Pakistan Stock

Exchange (PSX) vide letter dated July

07, 2022, that the Board of Directors of

the Company has approved the setting

up of 10 MW (approx.) Solar Power

Plant at Company’s plant site, Kohat,

in northern Punjab, says Company’s

Chief Executive Nadeem Atta Sheikh.

The Company’s Board of Directors has

also re-appointed Mr Aizaz Mansoor

storage at its Pezu Plant. The expected

commercial operations date has been

set at 2QFY23.

Financial Results

Lucky Cement Limited has posted an

unconsolidated NPAT of PKR4.0bn for

4QFY22 (April – June 2022), down 28

per cent QoQ. This takes FY22 (July –

June) NPAT to PKR15.3bn, up 9 per

cent YoY. Its sales volumes declined by

8.9 per cent to reach 9.1Mt during July -

June 30, 2022, compared to 10Mt fiscal

last year.

Local sales volume dropped by 3.6

per cent to reach 7.3Mt in the current

year compared to 7.6Mt the previous

year. While the export sales volume

declined substantially by 25 per cent

to 1.8Mt during the year compared

feasibility study of Madian,

148 MW Hydro Power Project

for total consideration of

PKR 160 million and has also

received the sale consideration.

CHCC, owned by Pakistan's Ghulam

Faruque Group, has a 50 per cent

shareholder of MHPL and will

eventually be entitled to 50 per cent of

the sale consideration after adjusting

any cost and taxation impact in the

event MHPL distributes the same.

Sheikh as Chairman and Mr Nadeem

Atta Sheikh as Chief Executive of the

Company for three years.

Financial performance

Total dispatches for July-March 2021-

22 stood at 2.85Mt compared 1.75Mt

in the corresponding period, made

from a new grey cement plant (line-4)

during the test runs.

The Company earned a profit after tax

of PKR 2.53 bn in 9MFY22. Officials

attribute that better retention prices,

improved capacity utilization and

increased volumes due to the new

production lines resulted in higher

profits during the nine months ended

March 31, 2021.

However, an increase in input costs,

16

to 2.4Mt in the last year due to nonviability

in terms of pricing on the

back of persistent high coal prices in

the international market coupled with

increased shipping freights.

Outlook

The company has reported that it

expects the fiscal year 2023 to be

challenging for Pakistan’s economy,

especially due to the high Current

Account Deficit, which stood at $17.4

bn for FY 2022 versus $2.8 billion

for FY 2021. The IMF staff-level

agreement has now been signed, and

as per Government statements, most

conditions have been met, and it

expects the program to resume post

approval from the IMF Board towards

the end of August 2022.

The resumption of the IMF program

will reduce uncertainty and open

avenues for borrowing from other

sources, which could help stabilize

the foreign reserves and the domestic

economic situation.

The Ghulam Faruque Group made a

bankable feasibility study through the

German Consultant Fichtner GmbH to

assess the project’s

technical, economic

and environmental

viability of the

Madian Hydropower

Plant in the Upper

Swat Valley, on Swat

River 60 km north of

the town of Mingora.

i.e. coal, electricity and packing

materials in the 3rd Quarter ended

March 31, 2021, could not be fully

passed on to the customers, which

resulted in a reduction in Gross Profit

margins by around 2 per cent during

the 3rd Quarter as compared to these

margins during the 2nd Quarter ended

December 31, 2020.

Future project

The Greenfield Cement production

Line in Khushab, Punjab – The

Company has obtained all the requisite

regulatory approvals for setting up

the Cement Plant. Acquisition of land

is in process, and it is expected that

contracts for the supply of the plant

shall be executed by the end of this

financial year.


Pakistan fails to register

new shipping co, since 2001

Owing to a non-favourable shipping

policy for the investors, Pakistan has

failed to register any new ship and

shipping company from the private

sector since 2001. This was revealed

by the Pakistan National Shipping

Cooperation (PNSC) Chairman,

Rizwan Ahmed, while briefing the

Senate Standing Committee on

Maritime Affairs which met under the

chairpersonship of Senator Rubina

Khalid.

The agenda of the meeting was to

discuss the Pakistan Merchant Marine

Policy, 2001, and the amendments

made therein in 2019, and to review the

budgetary allocation and its utilisation

by the Ministry of Maritime Affairs and

its attached departments, during the

Financial Year 2021-22.

The committee members expressed

grave concern on the non-registration

of new ships or companies during the

past 21 years.

Briefing the panel, the PNSC chairman

said that no company or ship has been

registered in Pakistan except Pakistan

National Shipping Cooperation (PNSC)

ships because of the wavering policies.

“Due to changes and inconsistency in

policies in terms of tax exemptions,

incentives and tax regimes the investor

has lost its confidence” the PNSC

chairman added.

The PNSC chairman opined had

the policies became constant and

competitive like in other parts of

the world it would have encouraged

the investors to invest in Pakistan’s

maritime market.

The Maritime Affairs Secretary, Mathar

Niaz Rana, said that to resolve the

issue of inconsistency in policy and

compatibility to that of the global

market a revised policy may be devised

in relation to the current incentives

and feasibility in terms of the country’s

capacity. The committee sought a brief

on the revised policy within a fortnight.

While reviewing the budgetary

allocation and expenditure for

the Financial Year 2021-22 and its

utilisation by the Ministry of Maritime

Affairs, the committee sought details

on the expenditure made and revenue

generated by the departments. The

committee also demanded details of

the developing budget on Port Qasim

and Karachi Port Trust (KPT) and other

departments.

The committee also sought details

on the procurement policy of PNSC.

The PNSC chairman informed the

committee that on the procurement of

new ship a wait-and-see policy is being

applied globally since IMO ship regime

will change in 2025 and again by 2030.

The committee raised question as to

why an old ship is being purchased

in comparison to a new one. The

ministry informed that there is a

financial dynamic behind procuring

an old ship instead of a new one and

proposed to present a brief on it in the

next meeting. The chairman PSNC also

informed the committee that the cost

of an old ship is US 21 million dollars

and of a new one is around U 55 to 60

million dollars.

While briefing the committee on the

Merchant Marine Policy, 2001 the

committee was informed that the

target of the policy was to expand and

update Pakistan Flag merchant marine

fleet from five percent to 40 percent.

The committee was informed that no

preference will be given to the PNSC in

private sector cargoes. The committee

was also informed that an amendment

in the policy 2019 also includes that no

federal direct and indirect taxes shall

be levied to the detriment of Pakistan

resident ship owing companies during

the exemption period and the Pakistan

flag vessels to be provided priority

berthing at all Pakistan ports.

17

Maritime affairs play a key

role in revenue generation

Federal Maritime Affairs Minister

Senator Faisal Subzwari, while

addressing a press conference at

the Karachi Port Trust, said that the

49-kilometre-long dredging of the Bin

Qasim Port had not been completed

during the last eight years. “I don’t know

why the dredging process halted,” he

remarked.

He said Machar Colony had been

excluded from coastal development

plans because evading people from

the colony was impossible. “The profit

from ports would be doubled by next

year”, he remarked.

Extreme measures are being taken for

the development of the Gwadar Port

as Prime Minister Shehbaz Sharif is

keenly interested in its development,”

the federal Minister said.

He said cross-stuffing had been allowed

in the Gwadar port, and work on the

new LNG terminal was underway. The

ministry of maritime affairs played a

key role in revenue generation, and

the country’s port played a vital role in

economic development.

Meanwhile, he orders to shut down

Minister’s Office from Karachi

Port Trust(KPT) and Port Qasim

Authority(PQA) in Karachi. “I have

decided to shut down Minister’s

offices at KPT and PQA. There is no

need for these offices, as it is a sheer

waste of money and resources of the

government,” said the Minister for

Maritime Affairs.

The Ministry of Maritime Affairs

is based in Islamabad - Pakistan

Secretariat. Currently, there are four

offices for the Minister for Maritime

Affairs; one in Islamabad and three

in Karachi - each in Karachi Port

Trust (KPT), Port Qasim Authority

(PQA) and Pakistan National Shipping

Corporation (PNSC).


PNSC acquires two secondhand

Aframax Crude oil tankers

Pakistan National Shipping

Corporation (PNSC) has announced

the acquisition of M.T Mardan,

inducted into its fleet on August 3rd,

2022. The other vessel, M.T Sargodha,

will be inducted within a week. With the

induction of these two vessels,

PNSC’s carrying capacity will

increase to 107,123 Metric tons;

the highest PNSC has achieved

since its inception in 1979.

This acquisition will increase

employment opportunities for

Pakistani seafarers. Employing these

oil tankers in the oil trade

will reduce the outflow of

foreign exchange from the

exchequer.

Chairman Rizwan Ahmed

Sheikh lauded the support

and efforts of the PNSC

Board of Directors and

Management in making this

task possible.

KPT's pictorial news

Consul General US Mr Mark Stroh

has, along with his team, called on

Chairman KPT Syed Muhammad Tariq

Huda at KPT Head Office Building.

Chairman KPT presented souvenir to

the honorable Consul General during

the occasion.

Hutchison Ports Pakistan sponsors

Pakistan's youngest table tennis player

As a commitment to support young

talent of Pakistan, Hutchison Ports

Pakistan, the country’s first deep-water

container terminal has sponsored

sports trip of Hoor Fawad – Pakistan’s

youngest table tennis player in the

women category – to represent

Pakistan at the Islamic Solidarity

Games, scheduled to commence on

August 9 in Konya, Turkey.

The initiative is aligned with its

approach of supporting young talent

of Pakistan and offer opportunities

to represent Pakistan at international

events and forums.

13-year old Hoor started playing table

tennis at age of 8-year and proved her

mettle by bagging first Gold medal

in Sindh Games at the age of 9. She

continued her winning streak and

won Women's Karachi Champion title

at the age of 11. Playing alongside

many experienced players, Hoor won

2 Gold Medals in Senior National

Championship Lahore and 1 Silver

and 1 Bronze medal in South Asia

under-15 category. She is the National

Champion in under-15 category, Mix

Double Senior National Champion

and Team Event Senior

National Champion.

Pakistan Sports

Federation had conducted trials of top

12 women players for the Asian Games

Hangzhou and Islamic Solidarity

Games Konya. Hoor had won 10 out

of 12 matches and stood 2nd in trials.

She is the 1st youngest women player

to represent Pakistan at international

events.

Head of Business Unit, Hutchison

Ports Pakistan – Captain Syed Rashid

Jamil said that “Hutchison Ports

Pakistan is committed to supporting

youth-oriented initiatives and other

causes of national interest. Offering

opportunities to the youth of the

country is one of our top priorities as

a corporate entity. We will continue

to support initiatives that offer

opportunities to the young generation

and enable them to excel their skills

and talent in different fields.”

Jubilant Hoor said: “I will make every

effort to perform exceptionally in

this competition and make Pakistan

proud. I am thankful to Hutchison

Ports Pakistan for their support and

sponsoring my sports trip to represent

Pakistan at an international sports

event.”

Hutchison Ports Pakistan has been

supporting youth of Pakistan in

various fields. The port had recently

sponsored vocational trainings for the

underprivileged youth with the aim to

inculcate technical skills to them.

Bucket Dredger AFTAB has become

operational on trial basis after Major

Refit under the supervision of GM

Engineering Rear Admiral Adnan

Khaliq and CM&EE-1 Mr Wajid

Hussain. Efforts of the officers and

staff onboard dredger AFTAB are also

appreciated.

Barrick Gold Team, a foreign

delegation, visited KPT Head Office for

an intoductory meeting regarding the

cargo and container handling activities

taking place at Karachi Port. The

delegates were given briefing about

the infrastructure, services potential of

the port, ongoing and future projects

by Chairman KPT Syedain Raza Zaidi

and General Managers.

18


KPT handled 51.71m tons cargo,

2.21m TEUs containers in 2021-22

Karachi Port Trust (KPT) remained fully

functional and operational on round

the clock basis and its operations,

including export and import witnessed

51.71 million tons cargo and 2.21

million TEUs containers at the end

of financial year 2021-22 whereas the

same corresponding year 2020-21

remained 52.28 million tons cargo and

2.30 million TEUs containers.

The breakup shows, dry cargo import

and export at the end financial year

2021-22 closed at 36.64 million tons

as against 39.94 million tons the same

corresponding year 2020-21. Similarly,

this financial year (2021-22), liquid bulk

cargo import and export increased by

22 percent and closed at 15.07 million

tons as compared 12.33 million tons

was handled last year 2020-21.

handled at last year 2020-21

with remarkable increased by

19 percent.

In continuation of above, the break-up

of export cargo at the end of financial

year 2021-22 was remained closed

at 16.17 million tons as against 15.81

million tons at the same corresponding

year 2020-21 which seems on higher

side with 2.27 percent growth.

At the end of financial year 2021-

22 the container handling at KPT

of import and export including all

private container terminals remained

closed at 2.21 million TEUs (twenty

feet equivalent unit) from 2.29 million

TEUs handled last year i.e. 2020-21.

The breakdown shows the import

containers remained 1.10 million TEUs

against 1.15 million TEUs handled last

year similarly the export containers

was 1.11 million TEUs from 1.14

million TEUs a year ago.

KPT by the Grace of Almighty, with

a solid support by the government

and a wholehearted activity by its

stakeholders, hard work by the

workforce continues as a flag bearer

of success in Pakistan economic

front against a world wise gloom of

recession.

KPT always preferred to facilitate its

port users and the trade community

through best business policies in

this regards KPT always endeavors

on facilitating its port users through

adopting friendly business policies

in line with the policies of present

government. Cognizant of its

importance the KPT is more focused

in its approaches on right track.

The breakup shows, the import cargo

at the end of financial year 2021-22

remained closed at 35.54 million

tons as against 36.47 million tons at

the same corresponding year 2020-

21. Similarly, the same financial

year (2021-22), liquid bulk cargo

import registered 14.07 million tons

as compared 11.80 million tons was

FOTCO asked to submit

its proposal afresh

Port Qasim Authority (PQA)

has directed Fauji Terminal and

Distribution Company Ltd (FOTCO)

to submit fresh modified design

in its terminal to handle 100,000

DWT (Deadweight tonnage) vessels

as Supplemental Implementation

Agreement (SIA).

FOTCO Jetty located at Kadiro Creek

at the offshore terminal, Port Qasim

was originally designed to handle oil

tankers upto 75,000 DWT. FOTCO

desired to evaluate the existing Jetting

Structure to berth ships/tankers upto

100,000 DWT.

Secretary PQA, in a letter to Chief

Operating Officer M/s FOTCO, has

referred to FOTCO’s letter written on

June 1, 2022 titled “enhance POL vessel

DWT capacity berthed at FOTCO

and said that FOTCO may provide

afresh complete proposal for carrying

out technical/strength evaluation of

jetty and associated infrastructure

for handling of 100,000 DWT vessel”

and Full Mission Bridge

Simulation (FMBS) studies as

per international codes and

standards. The proposal shall

be reviewed/evaluated by PQA

Consultant i.e. Nespak and

subsequently approval of PQA

Board be sought.

Secretary PQA has further stated

that FOTCO may conduct these

studies for entire satisfaction of

all the stakeholders. On receipt

of these studies duly reviewed

vetted by PQA Consultant,

Supplemental Implementation

Agreement subject to approval of

the PQA Board shall be signed as the

existing vessel handling capacity of

terminal is 75000 DWT according to

Implementation Agreement (IA).

Secretary PQA in his letter has

suggested that based on terms and

conditions of the SIA, FOTCO shall

furnish design, drawings, planning for

the modification/ alteration as per the

international codes and standards. PQA

Consultant shall review/vet the same.

FOTCO may commence modification/

19

Moreover, the KPT hopes to do

even better with an eye on its

prospective business plan for the

short and medium term future with

encouragement from the Government

through its friendly policies and whole

hearted participation from the private

sector the tide of success should, God

willing, continue unabated.

alteration of Terminal as outcome

of these studies. FOTCO is further

required to prepare complete dossier

with regard issuance of successful

commissioning certificate in terms

of the SIA for terminal’s readiness to

handle 100,000 DWT vessels.

PQA Consultants shall witness it and

accordingly successful commissioning

certificate shall be issued. PQA

Consultant remunerations shall be

borne by FOTCO. Thereafter revised

Notice to Mariners will be considered

for issuance, he added.


DP World reports volume

growth of 3.5% in 2Q2022

DP World Limited handled 20.2 million

TEU (twenty-foot equivalent units)

across its global portfolio of container

terminals in the second quarter of

2022, with gross container volumes

increasing by 2.9% year-on-year on a

reported basis and 3.5%[1] on a likefor-like

basis.

Volume growth in 2Q22 was driven by

our terminals in Asia Pacific, Americas

Engro and Excelerate Energy

sign MoU to develop private

RLNG sector in Pakistan

Engro Eximp FZE, a subsidiary of

Engro Corporation, announced

recently that it has entered into a

Memorandum of Understanding

(“MOU”) with Excelerate Energy, Inc.

(NYSE: EE) (Excelerate), a leading

provider of flexible LNG infrastructure

solutions around the world, related to

the development of a private sector gas

marketing business in Pakistan.

Under this MOU, both partners will

jointly evaluate the possibility of

establishing a regasified LNG (RLNG)

marketing business with maximum

participation from the country’s

private sector.

This initiative has the potential to

increase private company participation

in Pakistan’s LNG sector and enhance

Pakistan’s energy security by opening

up new RLNG supply avenues for

businesses and consumers. This

endeavor comes at a point when the

need for energy security has become a

critical issue globally, and particularly

for Pakistan, against the backdrop of

current geopolitical dynamics.

Ghias Khan, President & CEO – Engro

Corporation stated, “I am delighted that

Engro’s collaboration with Excelerate

Energy has been strengthened through

this agreement, which will help

Pakistan meet its energy needs.

and Australia. Jebel Ali (UAE) handled

3.6 million TEU in 2Q2022, up 3.5%

year-on-year. On a 1H2022 gross

basis, DP World handled 39.5 million

TEU, with gross container volumes


reported basis and 2.7% on a like-forlike

basis.

At a consolidated level, our terminals

handled 11.6 million TEU in 2Q2022,

up 1.8% both on a reported and on

a like-for-like basis. On a 1H2022

consolidated level, we handled 22.9

million TEU, with container volumes


reported basis and 1.4% on a like-forlike

basis.

Sultan Ahmed Bin Sulayem, Group

Chairman and Chief Executive Officer

of DP World, said: "We report another

solid set of throughput figures with

second quarter volume growth of

Prantik Group facilitates Mongla port

dredging operation in Bangladesh

The Mongla Port of Bangladesh has

launched an ambitious dredging

project to maintain the draft at a

sustainable level. The port authority

witnessed the arrival of two world’s

biggest non-propelled cutter suction

dredgers ( 138 m long, 28 m Breadth

“Xin Hai Xu”, and “Xin Hai Teng”),

owned by CCECC, China. They were

engaged in the Mongla port channel

dredging operation by Mongla Port

Authority, Bangladesh. The dredgers

were loaded out July 23 to semi

submergible vessel Blue Marlin

(owned by Boskhalis) for departure

from Mongla port, Bangladesh, after

completing their dredging work in the

port channel of Pushur River.

The local Prantik Group has played

an important role in this operation

as Prantik tugs towed the dredgers

initially from Base Creek, Mongla Port,

to Akram Point anchorage (34 Nautical

Miles distance)

The Company’s three tugs, AHTS

Prantik Sarwar 63 BP, Barshan 26 BP,

20

3.5%, which is once again ahead of

industry growth of 2.6%[2]. This robust

performance illustrates the resilience

of the global container industry,

and DP World’s continued ability to

outperform the market.

"Growth was driven by a strong

performance across our Asia Pacific,

Americas and Australia terminals. Our

flagship port of Jebel Ali (UAE) also

delivered an improved performance

with throughput growth of 3.5% yearon-year.

"Looking ahead, the near-term outlook

is uncertain given the geopolitical

environment, inflationary pressures

and continued impact of the pandemic,

but we remain positive on the medium

to long term outlook for global trade.

Overall, given the solid start to the year,

we expect to deliver an improved full

performance".

and Seagull Pride 6,

28 BP used in this very

challenging loading out

the operation. Loading

out the process was carried out in

Akram Point anchorage, Mongla port.

Prantik’s tugs’ master and crew have

done a wonderful job together with

Loading Masters, Pilot of Mongla Port.

Prantik Bangladesh MD Golam Sarwar

has proudly stated that the towage

to loading location and tugging for

loading out the operation with leading

tug DP capabilities AHTS Prantik

Sarwar and another two tugs – Barshan

and Seagull Pride 6, Prantik provided

these three tugs.

Prantik Bangladesh MD Golam Sarwar

said, “The whole operation was

possible for lead tug Prantik Sarwar

availability locally; otherwise, the

heavy tug would have been required

on charter from overseas- Singapore:

Prantik stands as one of the most

trusted names in the region of

comprehensive, end-to-end solutions

in the marine industry in Bangladesh

and beyond since 1998.

Each of our portfolio companies

specializes in a distinct market segment

and provides a unique value2/3

proposition to our esteemed clientele

all over the world – from Texan energy

giants to logistics titans in Europe, all

the way to Chinese salvage masters in

the Far East.


Lumpy skin disease, other challenges

cast a shadow on tanneries

Amanullah Aftab

Chairman PTA

The spread

of lumpy skin

disease (LSD)

and other

challenges

including

high cost of

business have

cast shadow on

the otherwise

flourishing

t a n n e r y

business in

Pakistan.

The exports of leather goods that

were projected to touch the mark of

$1 billion, might hover around $950

million in 2021-22 due to supply

crunch and price volatility of raw skins

and hides over LSD and high cost of

manufacturing.

Consequently, the lost glory of leather

trade might be restored albeit at a

slower pace, said stakeholders of

tannery and leather businesses, while

sharing an optimistic view of the

sector.

After lifting of Covid-related

restrictions, businesses have started

showing progress. Leather sector

exports grew by 17 percent in financial

year 2021-22 compared to the last year.

With challenges of LSD and high cost

of business, the exports would now

likely remain between $950 million to

$1 billion, observed Amanullah Aftab,

ACLE2022 to be

Rescheduled

Due to the recently uncertainty and

the public health control situation in

Shanghai, Anhui and other provinces

is once again severe and complicated

in China.

The organisers of the All China

Leather Exhibition (ACLE) have

announced that ACLE 2022, originally

scheduled to be held at the Shanghai

New International Expo Centre from

31 August to 2 September, will be

rescheduled to 20 - 22 December 2022

Chairman,

Tanners

(PTA).

Pakistan

Association

He was of the view that lumpy skin

disease spreads rapidly mainly in cow,

which makes meat and skins of affected

animals unusable. He emphasised that

the raw hide of animals affected by

LSD were totally unusable.

This definitely created negative impact

on supply side directly or indirectly.

On the eve of qurbani or ritual of

scarifying animals, he added, our hope

of having an ideal season of sourcing

skins and hides in big quantities has

dampened to some extent. “Eidul Azha

is the big occasion for tanning industry

because we cover the raw hides and

skins demand of around 4/5 months

from animals slaughtered at qurbani,”

he said.

Regarding price trend, he added, “this

year we expect almost doubling of raw

skin price”. Last year, the price of cow

hide was Rs700 to Rs1,000 and goat

skin stood at Rs150 to Rs180.

at the same venue.

The organiser said: "The entire

ACLE team would like to thank all

exhibitors, buyers and partners

for their support of the All China

Leather Exhibition over the years,

as well as their understanding and

cooperation for the postponement

of the exhibition.

We will continue to monitor

the development of the situation

closely and maintain frequent

communications with relevant

authorities".

However, this year the price of cow hide

would be around Rs1,600 to Rs2,200

and goat skin at around Rs250 to Rs350.

Therefore, the cost of manufacturing

on this count would be almost double

than last year.

Agha Saiddain, former Chairman, PTA

also anticipated an adverse impact

of LSD on the quality and quantity of

skins this year. “There may be a drop

in prices of cows for sacrificing on Eid

and disease affected skins definitely

will have no value,” he said.

On prices, he expected a jump on

cow hides, from Rs1,200 to Rs1,800.

Similarly, goat skins would likely be

sold at an average price of Rs220 this

year against last year’s price of Rs160.

Prof Dr Talat Pasha also echoed

concerns about the deterioration of

quality as well as quantity of raw cow

skin to some extent due to LSD. He

stressed the need to ensure blanket

cover of immunisation to animals

against LSD as soon as possible with a

view to curtailing its spread.

To a question, he said, affected animal

taking fodder, simply means loss in

milk and meat production.

The export of leather and leather

products from Pakistan increased by

8.86 percent from $765.355 million to

$833.199 million during fiscal 2020-21

over the preceding year. The outgoing

year might likely see growth in leather

exports as per stakeholders.

Courtesy - The News

We aim to have a smooth arrangement

for ACLE 2022 and look forward to

organising a successful event for

exhibitors, buyers and stakeholders of

the leather industry.

21


Pakistan leather export

increases in FY22

According to data compiled by the

Pakistan Bureau of Statistics (PBS),

Pakistan’s leather industry exports

saw double-digit growth of 15.16%

between July 2021 and June 2022

on the back of a noticeable increase

in finished leather, garments, and

footwear export during this period.

The leather industry export’s revenue

has surged to US$986.157 million

during these twelve months compared

to $856.264 in 12MFY21. This export

trend translates to a growth of 18.11%

YoY.

India leather industry

records 42% growth

According to the Indian Council for

Leather Export (CLE), from the export

of Leather and Leather Products,

including Non-Leather Footwear,

India earned US$ 1.388 billion during

the first three months of 2022-23

(April –June), against the earning of

$ 977.86 million in April-June 2021-

22, recording a growth of 42% on YoY

basis.

The breakdown

shows that during

03MFY 23, finished

leather exports

rose in value by

0.77% to $ 118.70

million from $

117.79 million in

the same period

CLE and Uzbekistan

signed an MoU

Sanjay Leekha, Chairman of the

Indian Council for Leather Exports

(CLE) and Adhamjon N. Muydinov,

Deputy Chairman, Uzcharmsanoat

Association of Uzbekistan, signed

a Memorandum of Understanding

(MoU) for cooperation and mutual

growth and development of leather

and footwear sectors in New Delhi on

July 28.

The breakdown shows that Pakistan

exported 16.077 million sqr. mtr tanned

leather at $208.092 million, compared

to 11.992 million sqr mtr at $161.938

million, thus recording a growth of

34.06% and 28.50% in quantity and

value dollar, respectively, over July –

June 2021.

Similarly, Pakistan exported leather

manufacturing, including garments,

goods and other articles, worth

$621.081 million during this period,

compared to $562.428 million in July –

June 2021. It recorded an expansion of

10.43%.

Pakistan footwear export comprises

19.002 million pairs of shoes at

$156.984 million during these twelve

months (July – June 2022) of the

current financial year compared to

16.532 million pairs at $131.898 million

July-June 2021. Thus, export recorded

a growth of 14.94% in quantity and

19.02% in value on a YoY basis.

last year. Leather footwear was up

52.25% to $ 614.40 million from $

403.55 million, and leather garments

by 44.37% to $ 90.29 million from

$62.54 million during these three

months last year.

The exports of leather goods increased

by 43.94% to $ 353.65 million from

$245.70 million during this period.

Similarly, Saddlery and Harness export

rose to $ 65.83 million from $ 56.62

million, reflecting a growth of 16.27%.

The export of non-leather footwear

stands at $ 73.93 million, up by 95.74%

and footwear components $ 614.40

million, rising by 52.25%.

Whereas, in the last financial year of

FY22 (April – March), India had earned

US$ 4.872 billion against $3.681 billion

in April-March 2020-21, recording a

growth of 32.35% on a YoY basis.

Earlier, CLE organized the visit of the

Uzbekistan delegation to India in April

this year, mainly for Agra and Kanpur

region, to increase India's exports and

to explore the potential of bilateral

trade related to leather and leather

products segment with CIS countries.

During the visit, at least six companies

have shown interest in exploring joint

venture opportunities in the leather

and footwear sectors.

22

Bangladesh posts 32.23%

growth in leather exports

The Bangladesh leather industry has

posted a remarkable growth of 32.23%

export of leather, goods, and footwear in

the just concluded the financial year 2022

(July 2021 and June 2022), according to

Bangladesh Export Promotion Bureau

(EPB).

The leather sector earned total export

revenue of US$1.245 billion in FY 21-22

compared to $941.67 million earned in

the same twelve months of the previous

fiscal year. It translates to a growth of

32.23 on a YoY basis. The export has also

surpassed the target by 20.77%.

The breakdown shows that Bangladesh

received $151.37 million on exports of

finished leather between July 2021 and

June 2022 compared to $119.14 million in

the same period last year, which shows a

growth of 27.07%.

The leather products exports have also

expanded to $337.62 million during these

twelve months from the $252.65 million

last year. It translates to a growth of

33.63% on a YoY basis. On a more positive

development, the leather footwear

exports grew 32.69% to $756.18 million in

July 2021– June 2022 from $569.88 million

in the previous fiscal year.

The Bangladesh Export Promotion

Bureau (EPB) set the leather industry's

export target at $1.031 billion for 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.

CLE to participate in

Melbourne, Australia

The Indian Council for Leather Exports

CLE) has informed its members that

CLE will set India Pavilion comprising

twenty-five its members in the Footwear

& Leather Show, Melbourne, Australia,

during November 15-17, 2022.

The Indian participants can avail of the

funding support of the Government of

India under MAI Scheme.

TRADE CHRONICLE Nov Jul - Aug Dec - 2022 2021

British Pakistani

entrepreneur appointed

Ambassador-at-Large on

Investment

Prime Minister

Shehbaz Sharif

has appointed

British Pakistani

entrepreneur

Zeeshaan Shah

as Ambassadorat-Large

on

Investment

to promote

investment in Pakistan. The

announcement was made in a

notification issued.

Zeeshaan Shah is a multi awardwinning

entrepreneur based out

of London. His group has overseen

investment transactions in excess of

$1.3 billion. He made his name first

when he appeared on BBC’s popular

show Apprentice.

Zeeshaan Shah boasts a global network

of contacts within the investment

space, including leading institutional

and family offices across the Far East,

Middle East, the United Kingdom and

the United States of America.

Admiral Khalid Mir

elected KCFR head

Admiral Khalid Mir has been elected

as chairman of the Karachi Council on

Foreign Relations (KCFR). The election

for the council’s office bearers was

conducted during the KCFR’s annual

general meeting that was held at a local

club recently.

The members unanimously elected

Admiral Khalid Mir unopposed as the

chairman as well as all the candidates

for office bearers. For his services to

the KCFR, outgoing chairman Sehgal

was then unanimously elected as the

patron-in-chief of the council.

Those who oversaw the election

included former chief of naval staff

Admiral Shahid Karimullah, former

State Bank of Pakistan governor

Dr Ishrat Husain and former MNA

Khadim Ali Shah.

Aftab Sultan appointed

NAB Chairman

The federal cabinet

recently approved

the appointment

of

former

director general

of Intelligence

Bureau (IB) Aftab

Sultan as Chairman

of National

Accountability Bureau (NAB).

Following the cabinet meeting chaired

by Prime Minister Shehbaz Sharif

through video link from Lahore,

Interior Minister Rana Sanaullah,

briefing the media, said that credibility

of Aftab Sultan was beyond doubt. He

expressed his confidence that the new

NAB chairman will make the watchdog

impartial in checking corruption in the

country.

The Ministry of Law also issued a

notification regarding Aftab Sultan’s

appointment for a period of three

years.

CPNE appoints Ikram Sehgal

as Chairman of Media Safety

& Security Committee

23

Ikram Sehgal has

been appointed

as the Chairman

Media Safety

& Security

Committee to

accomplish

such objectives.

A member

of the World Economic Forum and

Global Agenda Council, he has been

representing Pakistan every year at the

World Economic Forum in Davos for

the past 19 years.

Other members of the committee

include Ijaz-ul-Haq (Daily Express

Karachi), Muhammad Haider Amin

(Daily 92 News Lahore), Salman

Masood (Daily the Nation Islamabad),

Dr Jabbar Khattak (Daily Awami Awaz

Karachi), Arif Baloch (Daily Balochistan

Express Quetta), Tahir Farooq (Daily

Ittehad Peshawar), Yusuf Nizami (Daily

Pakistan Today Lahore) and Maqsood

Yousufi (Daily Nai Baat Karachi).

New Chairman

of WAPDA

Lt-Gen (Retd) Sajjad

Ghani recently

assumed duties as

23rd chairman of

the Water and Power

Development

Authority (WAPDA).

According to a

spokesman of

WAPDA, he served Pakistan Army as

a professional engineer and soldier,

pursuing two parallel career streams

over the last four decades. Ghani

obtained a bachelor of Engineering

Degree from the Military College of

Engineering in 1984.

Shehzad Malik elected

President of ICMA

The National

Council of ICMA

has elected Shehzad

Malik as President

of ICMA for the

period 2022-2023.

Further to this

change, Ather

Saleem Ch. and Awais Yasin have

assumed the roles of Vice President

and Honorary Treasurer respectively,

whereas, Shaham Ahmed will remain

the Honorary Secretary of the Institute.

Shehzad Ahmed Malik is the CEO

of Shehzad Malik Management

Consultants (Pvt) Ltd. In addition

to being board member of different

companies, he is also holding honorary

position in committees of Rawalpindi

Chamber of Commerce and Industry.

Prof Dr Shagufta Dean of

KU’s education faculty

Sindh Chief

Minister Syed

Murad Ali Shah

has appointed

s e a s o n e d

educationist and

author of several

books on special

education, Prof

Dr Shagufta Shahzadi as the Dean

Faculty of Education of University of

Karachi.


Iftikhar Shallwani assumes

charge as Federal Secy

Iftikhar

Ali

Shallwani recently

assumed charge as

Federal Secretary of

Housing and Works.

The senior officers

of the ministry

welcomed the new Secretary and

briefed him about the official matters,

said a news release.

Iftikhar expressed satisfaction over the

briefing and asked the officers to play

their role in running the affairs of the

ministry smoothly and efficiently.

Dr Ghulam Muhammad

appointed PARC Chairman

President Arif Alvi

recently appointed

Dr Ghulam

Muhammad Ali

as the Chairman

of the Pakistan

Agricultural

Research Council

(PARC).

The President made the appointment

in line with Section 9 of the Pakistan

Agricultural Research Council

Ordinance, 1981.

Under the PARC Ordinance, the

President appoints a prominent

scientist from the agricultural sector as

the Chairman of the research body.

Syed Naveed Qamar, Federal Minister

for Trade & Investment, Government.

of Pakistan presented the Brand of the

Year Award for Rooh Afza to Ms. Sadia

Rashid, Chair of Hamdard Laboratories

(Waqf) Pakistan during the Awards

Distribution Ceremony of the 11th

edition of the 2021 Brand of the year

Awards at a local hotel, Karachi.

Former cricketer Younus Khan was also

present on the occasion.

President Meezan Bank visits

Naya Nazimabad Gymkhana

Recently, Mr Irfan Siddiqui, President

of Meezan Bank, visited Naya

Nazimabad Gymkhana and praised

the dedication of Chairman Arif Habib

Group, Mr Arif Habib and his team for

delivering an amazing landmark to the

people of Karachi at Naya Nazimabad.

During the visit, Mr Arif Habib

informed that they are working to

transform Naya Nazimabad into a

Sports City by developing International

standards sports facilities in one place.

“Fully developed floodlight Cricket

stadium, Football Ground, Basket Ball

Court, Futsal ground, Taekwondo,

Archery, horse riding and paragliding

are already operational”, he added.

On this occasion, President Naya

Nazimabad Gymkhana, Syed

Muhammad Talha, said that in addition

to the Gymkhana, the management of

Naya Nazimabad is also constructing

a state-of-the-art Hotel that would be

helpful during major tournaments.

This five-star facility will

include four multiple

restaurants and a

banquet hall. Additional

facilities like a top-ofthe-line

Gym, Swimming

Pool, Sauna and other

luxurious facilities like

International standard

Tennis, Table Tennis,

Squash, Badminton,

Snooker, Card room,

Library, meeting rooms,

KE appoints Mark Gerard

Skelton as Board Chairman

K-Electric has appointed Mark Gerard

Skelton as the new Chairman of its

Board of Directors (BoDs), replacing

Shan A Ashary. The new chairman said

his priority would be to build a deeper

connection with customers and bolster

Karachi’s growth trajectory.

Talking about his election as

the Chairman of the KE’s Board

of Directors, Mark G Skelton

said, “As a power utility, KE has

a historical relationship with

the city of Karachi, and my

priority will be to build a deeper

connection with our customers

and to bolster Karachi’s growth

trajectory.

24

multipurpose Hall etc. will also be

available at this dream project.

Mr Irfan Siddique Presedent and

Deputy CEO Meezan Bank Mr Arif ul

Islam also participated in the ongoing

tree plantation drive. Mr Talha

informed that extensive parks and

green belts set Naya Nazimabad apart

from all other residential settlements

in the city. “We have our nursery &

greenhouse where thousands of plants

and trees are taken care of by our

dedicated horticulture staff. Recently,

Naya Nazimabad initiated a plantation

drive where nearly 5000 trees will be

planted”, he added.

Mr Irfan Siddiqui also visited Ali Habib

Medical Center (AHMC) and admired

the facilities being provided to the

resident of Naya Nazimabad and the

community. CMO AHMC, Dr Lubna

Masroor, said that at AHMC, the best

possible medical assistance is being

provided to every patient, and all

treatments are done professionally

according to the latest medical

standards being practised all over the

world.

The new members joining the

KE Board include Arshad Majeed

Mohmand, Boudewijn Clemens

Wentink, Muhammad Kamran

Kamal, Saad Amanullah Khan and

Muhammad Zubair Motiwala.

Whereas Shan A Ashary, Adeeb Ahmad,

Ch Khaqan Saadullah Khan, Dr Imran

Ullah Khan, Mark Gerard Skelton,

Mubasher H Sheikh, Sadia Khuram

and Moonis Abdullah Alvi continue to

be on the KE Board.


Number of 3G, 4G users up by

1.86m in one month: PTA

The number of 3G and 4G users in

Pakistan increased by 1.86 million from

113.89 million by end-May 2022 to

115.75 million by the end of June 2022,

says the Pakistan Telecommunication

Authority (PTA).

The number of cellular subscribers

in Pakistan increased by 1.32 million

to 194.58 million by end-June 2022

compared to 193.29 million by end-

May 2022.

The teledensity for cellular mobile

increased from 87.8 percent by end

May to 88.34 percent by end June. The

total teledensity increased from 88.94

percent by end May to 89.53 percent by

end June 2022.

The Monthly Next Generation Mobile

Service (NGMS) penetration increased

from 51.73 percent by end-May 2022 to

52.55 percent in June 2022.

Jazz’s total count for 3G users declined

from 6.068 million by end May to

5.947 million by end June, registering

Telenor reports

Rs26.7bn revenue

Telenor Pakistan reported a revenue

of Rs26.7 billion, up by Rs104 million

from Q2 last year. The company stated

that Pakistan’s volatile macroeconomic

situation during the current fiscal year

and its exchange rate fluctuations

impacted Telenor Pakistan’s

performance during the second

quarter of 2022.

The company reported YoY growth of

a decrease of 0.121 million. Jazz 4G

user numbers jumped from 37.168

million by end May to 38.039

million by end June.

Zong 3G subscribers decreased from

3.272 million by end May to 3.197

million by end June, while the number

of 4G users increased from 28.317

million by end May to 28.906 million

by end June.

Telenor 3G subscribers decreased

from 3.613 million by end May to 3.542

million by end June, while the number

of 4G users of Telenor increased from

21.496 million by end May to 21.831

million by end June.

Ufone 3G users stood at 3.509 million

by end June compared to 3.576 million

by end May. The number of 4G users

of Ufone increased from 9.052 million

+1.8 percent in subscription and traffic

revenues (S&T), +1.7 percent in service

revenues and +0.4 percent in total

revenues.

The reported EBITDA growth stood at

-14.9 percent while the EBITDA margin

was 47.3 percent for Q2 2022.

During the quarter 289,000

subscriptions, were added to the

network with the subscriber base now

standing at 49.5 million.

The EBITDA development

was majorly attributable to

significant hikes in fuel and

electricity prices coupled

with YoY reduction in mobile

termination rates.

The rising inflation in the

country (June: 21.3 percent),

significant rupee devaluation

and the prevailing economic

situation also had an impact

in the performance.

by end May to 9.419 million by end

June, registering 0.367 million increase

during the period under review.

The PTA received 20,191 complaints

from telecom consumers against

different telecom operators, including

(cellular operators, PTCL, LDIs, WLL

operators, and ISPs) as of June 2022.

The PTA said it was able to get 19,847

complaints resolved i.e. 98 percent.

Cellular mobile subscribers constitute

a major part of the overall telecom

subscriber base. Therefore, the

maximum number of complaints

belongs to this segment. The total

number of complaints against CMOs

by June stood at 19,496 where 19,215

were addressed i.e. 98 percent.

According to the PTA data, 7,191

complaints were received against Jazz,

6,135 against Telenor, 4,427 against

Zong and 1,735 complaints were

received against Ufone. The PTA also

received 176 complaints against basic

telephony, where 160 were addressed

during June 2022. Furthermore, 499

complaints were received against ISPs,

where 453 were addressed.

PTCL declares 5.7pc

revenue growth in H1 2022

Pakistan Pakistan Telecommunication

Company Limited (PTCL) recently

announced its financial results for the

quarter ended June 30, 2022, revealing

that the group managed to post up

to 5.7 percent growth in revenue in

6 months of the year 2022 over the

comparative period.

PTCL Group’s revenue of Rs71.7

billion in 2022 is 5.7 percent higher

as compared to the same period of

last year. According to the company,

it managed to keep top line growth

momentum, which strengthened

its market standing as an integrated

telecom services provider in the

country.

25


14.08m mobile phones manufactured

during Jan-June: PTA

The local manufacturing plants have

manufactured/assembled 14.08

million mobile phone handsets

during the first six months (January-

June) of 2022 compared to 1.14

million imported commercially, says

the Pakistan Telecommunication

Authority (PTA).

The local manufacturing plants

have manufactured/assembled 1.67

million mobile phone handsets

in June 2022. 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,

revealed the official data of the PTA.

The locally manufactured/assembled

14.08 million mobile phones handsets

include 8.06 million 2G and 6.02 million

smartphones. Further as per the PTA

PTCL launches smart

solutions powered by Huawei

Pakistan

Telecommunication

Company Limited, the largest telecom

services provider in Pakistan launched

Smart Solutions powered by Huawei.

The initiative will enable enterprises

with smart ICT services that are

completely secure and reliable through

one-window operations.

The event was attended by Mr. Zarrar

Hasham Khan, Group Chief Business

Solutions Officer, PTCL & Ufone, Mr.

Mengqiang, CEO Huawei Pakistan, Mr.

Gaoweijie, Managing Director, Huawei

Enterprise Pakistan, Mr. Daniel Kirk,

VP Strategy in Huawei's Global Carrier

Enterprise Unit, Mr. Haroon Khan,

Head of IT Infrastructure at Khushhali

Microfinance Bank and Mr. Abrar Ali

Khan, CEO Rockville Technologies.

This is a first-of-its-kind intelligent

NaaS – Network as a Service platform

to provide innovative Smart Solutions

to provide next generation AI and

software defined ICT services to help

multi verticals of healthcare, Edtech,

banking, commercial sector

to digitalize, bring efficiency and

data, 54 percent mobile

devices are smartphones

and 46 percent 2G on

Pakistan network.

However, despite the increase in local

production of mobile phones, Pakistan

imported mobile phones worth $1.978

billion during the fiscal year 2021-22,

according to the Pakistan Bureau of

Statistics (PBS).

The overall telecom imports into

the country during the period under

review i.e. fiscal year 2021-22 increased

by 3.52 percent by going up from

$2.593 billion in July-June 2020-21 to

$2.684 billion during the same period

of last period.

On a month-on-month basis, imports

of mobile phones into Pakistan

decreased by 76.52 percent during

June 2022 and remained $32.221

million when compared to $137.213

million imported in May 2022, the PBS

data revealed.

On a year-on-year basis, mobile

phones witnessed 84.26 percent

negative growth when compared to

productivity in their day-to-day

businesses. Backed by PTCL's state

of the art infrastructure coupled with

decades of industry best practices

experience, these smart solutions

offers one stop shop, pay as you grow &

cost-effective next generation services

to help business grow and effectively

play their part in national growth of

Pakistan.

Speaking at the occasion, Zarrar

Hasham Khan, Group Chief Business

Solutions Officer, PTCL & Ufone, said,

“We at PTCL Group are committed

to uplifting our customer experience

through adoption of state-of-theart

products & solutions. PTCL

has achieved another milestone

by successfully introducing Smart

Solution that will further strengthen

and enhance our efforts to new heights

through intelligent upgrades and

comprehensive solutions. Together,

26

$204.677 million in June 2021.

The successful implementation of

Device Identification Registration

and Blocking System (DIRBS) along

with conducive government policies

including the mobile manufacturing

policy has created a favourable

environment for mobile device

manufacturing in Pakistan.

It has also contributed positively to

the mobile ecosystem of Pakistan by

eliminating counterfeit device market

providing a level-playing field for

commercial entities and has created

trust among consumers due to the

formulation of standardized legal

channels for all sorts of device imports.

we can help our customers go digital

successfully and accelerate Pakistan

digital transformation”

Mr. Daniel Colum Kirk VP Strategy in

Huawei's Global Carrier Enterprise

Unit, stated on the event that; “' Huawei

believe that solutions such as PTCL’s

Smart Solutions are a powerful way

for businesses in Pakistan to gain the

benefits of Digital Transformation. We

are delighted to support this product

launch with our NaaS solutions. This

provides customers with a world class,

intelligent and flexible smart ICT

service hosted securely in Pakistan

by PTCL. We look forward to working

together with Ufone-PTCL Business

Solutions to bring the benefits of these

Smart Solution services to customers

across Pakistan."

Mr. Zarrar Hasham Khan GCBSO, PTCL

& Ufone and Mr. Abrar Ali Khan, CEO

Rockville Technologies signed first

contract for Smart Office Solutions.

As part of their mission to build a fully

connected and intelligent world, PTCL

group and Huawei are always aiming

to contribute to digital empowerment

to help realize the vision of Digital

Pakistan.


HBL posts a net profit of Rs12.107

billion 1st half june 2022

Habib Bank Limited (HBL) has

reported a decline of 34 percent in

its net profit for the first half of 2022

as high and retrospective taxes bite

profits. The government in last budget

imposed 10 percent super tax on large

corporates including banks. Industry

officials said such levies on the most

taxed industry have had a considerable

negative impact on profitability.

The Habib Bank Limited reported a

net profit of Rs12.107 billion for the

half-year ended June 30 compared

to Rs18.029 billion during the same

Digital financial services: Citibank,

NIFT establish referral arrangement

Citibank N.A., Pakistan (Citi) and

National Institutional Facilitation

Technologies Private Limited (NIFT)

recently established a referral

arrangement to promote digital

financial services.

The arrangement between Citibank

and NIFT, Citibank will introduce

NIFT’s electronic payment gateway

(NIFT ePay) to facilitate its clients with

an array of digital collection channels.

NIFT ePay is a State Bank of Pakistan

licensed Payment System Operator

and Payment Service Provider (PSO/

PSP) that allows corporate institutions

to receive collections digitally from

bank accounts, wallets, and debit/

credit cards. The arrangement aims to

facilitate businesses by offering tailormade

digital collection solutions while

strengthening Pakistan’s e-payment

ecosystem.

Commenting on the occasion,

Ahmed Bozai, Managing Director &

Citi Country Officer – Citibank N.A.,

period the previous year.

Earnings per share (EPS) for

the quarter remained at Rs2.32,

bringing earnings per share for

the half year to Rs8.10.

The bank also declared a dividend of

Rs1.50 per share (15 percent) for the

second quarter ended on June 30, 2022.

The bank reported revenue of Rs34.6

billion for H1 2022, 11 percent higher

than the profit of Rs31.2 billion in the

same period last year. Total deposits

reached Rs3.8 trillion, a growth of

Rs370 billion over December 2021.

According to the bank, strong

mobilisation efforts resulted in a 10

percent growth in domestic deposits,

which reached Rs3.4 trillion with

market share growing to 14.32 percent.

In first six months, the bank’s total

advances grew by 10 percent over

December 2021 to Rs1.7 trillion with

growth across all lending businesses.

The bank’s net interest income grew

by 14 percent over H1 2021 to Rs73.9

Pakistan said, “This

enablement will open

avenues for reliable

and secure electronic

receivables solutions for our clients,

as well as help strengthen the digital

payment and collections landscape of

the country. Citi’s arrangement with

NIFT will further our mission towards

promoting digitization of banking

services in Pakistan.”

Haider Wahab, CEO–NIFT said, “We

are delighted to enter into a referral

arrangement with Citi, one of the

leading foreign banks in Pakistan. NIFT

ePay, as a digital payment gateway

provides solutions and convenience

in online transactions. This referral

arrangement will further augment

the accessibility of digital payment

acceptance in the country.”

billion as the average balance sheet

grew by over Rs500 billion although

spreads declined marginally.

“Fee income continued on an upward

trajectory, increasing by 28 percent

over the first six months of the previous

year,” HBL said. Its total revenue

increased by 18 percent over H1 2021

to Rs97.6 billion.

The bank said despite high doubledigit

inflation and its investment in

people, technology and infrastructure,

administrative expenses remained

flat to the previous quarter with the

cost/income ratio reduced from 59.6

percent in Q1 2022 to 55.1 percent in

Q2 2022.

Total credit-related provisions of the

bank reduced by 43 percent over H1

2021 to Rs2.6 billion, which includes

incremental general provisions of Rs1.3

billion.In 2022, the bank increased its

contribution to the HBL Foundation

by 50 percent, from 1 percent of profit

after tax (PAT) to 1.5 percent of PAT.

President & CEO U Microfinance Bank

Limited (U Bank) Kabeer Naqvi and Ali

Jameel, CEO, TPL Corp Limited, signed

Memorandum of Understanding

(MoU) of a strategic partnership to

promote synergic partnership between

the two organizations.

MMBL reaffirms

its commitment

Mobilink Microfinance Bank’s (MMBL)

efforts to promote digital and financial

inclusion across Pakistan, were

recognized at the recent 5th edition

of the Leaders in Islamabad Business

Summit (LIIBS) 2022, organized by

Nutshell Conferences. More than 1,000

delegates were in attendance, including

senior dignitaries from local and

international private organizations,

the public sector, notable media

personnel, entrepreneurs, and

policymakers – DOST.

27


Meezan Bank and Arif Habib Group enter into a strategic

partnership for apartment development under Musharakah Mode

Arif Habib Group (AHG), and Meezan

Bank Limited (MBL) have entered

into a strategic partnership to jointly

develop and sell apartment towers at

Naya Nazimabad. This collaboration

will allow customers to opt for the

Shariah Compliant Home financing

services offered by MBL.

MBL has entered into a Musharakah

Agreement with Globe Residency

REIT(GRR), for development of 3

Apartment Towers consisting of

408 apartments of 2 Bedrooms.

Construction of Towers is already

underway, and their grey structure

is expected to be ready in eighteen

months.

GRR is being managed by Arif

Habib Dolmen REIT Management

Limited and Arif Habib Real Estate

Development Company is the

Development Advisor. In total GRR is

constructing nine towers, which were

launched in November 2021 and will

be ready for possession within 3 years.

642 apartments have already been

booked by general public out of 836

offered in November 2021. REIT units

Bank Alfalah announces

financial results for HY 2022

The Board of Directors of Bank Alfalah

Limited (BAFL), in its meeting held

on July 28, 2022, approved the bank’s

financial results for the six months

ended June 30, 2022.

The bank announced profit after tax of

Rs 8.703billion, up by 25.5 percent. EPS

stood at Rs 4.90(Jun 21: Rs 3.90). The

Board has approved an interim cash

dividend of Rs 2.5 (last year: Rs 2.0) per

share.

The Bank’s deposit base stood at

Rs 1.318trillion at the end of Q2’22,

with YoY growth of 28.6%. The Bank

continues to outpace the industry

in deposit growth driven by a strong

will also be listed on PSX, soon offering

them to general public for investment.

Under the mortgage finance facility

customers will be able to make

payments over 20 years, similar to

making monthly rental payments.

The process is open and transparent,

making real estate more accessible to

middle class customers.

MBL is participating for 50% share in 3

Towers out of 9 towers being developed

by GRR through the Musharakha

Arrangement. Both MBL and GRR shall

contribute 50% each for the cost of

construction of these apartments. All

regulatory approvals from SECP and

SBCA are in place. Central Depository

Company of Pakistan Limited (CDC)

is the trustee and A.F. Ferguson (PWC)

are Auditors of GRR.

The agreement was signed by Mr.

Arif ul Islam, Deputy CEO, MBL,

Mr. Badiuddin Akber, CEO, CDC,

Mr. Samad Habib, CEO, Javedan

Corporation Limited (JCL), and Mr.

Muhammad Ejaz, CEO, Arif Habib

Dolmen REIT Management Limited.

momentum in its current deposits

which showed market leading

growth of 25.7% YoY. Moreover,

BAFL’s CA mix at 45.5%, remains

one of the strongest in the industry

which has been a result of the

bank’s continued focus on market

penetration serving more and more

customer segments and effective

branch expansion strategy.

Furthermore, despite challenging

market fundamentals, the Bank’s

credit performance was strong in the

first half of 2022 with Gross Advances

reaching Rs 755.340 billion, showing

a growth of 18.3% YoY. In anticipation

28

Also present on the

occasion were Mr. Arif

Habib, Chairman, JCL

and Mr. Muhammad Irfan

Siddiqui, President and CEO, Meezan

Bank Limited. MBL.

Mr. Muhammad Irfan Siddiqui,

President and CEO, Meezan Bank

speaking at the occasion said, “Meezan

Bank strives to offer its qualified

customers Shariah-compliant banking

solutions and services. Many of our

customers wish to own their homes

and we are pleased to be able to

provide them Islamic Mortgage mode

of financing for Apartments at Naya

Nazimabad that will offer a convenient,

affordable and Shariah compliant way

to obtain a home of their dreams.”

Mr. Arif Habib, Chairman, JCL

commented, “Naya Nazimabad works

relentlessly to offer quality lifestyle to

its residents. This is a landmark real

estate transaction opening the doors

of housing development in Pakistan

for the middle-class population

through Mortgage Financing mode

between an Islamic Bank and a

REIT scheme. It is hoped that many

more such transactions will take

place between banks and REITs to

facilitate the general public. We are

pleased to partner with Meezan Bank

to provide home financing product

exclusively designed for Apartments

at Naya Nazimabad. Making our

housing project accessible to the wider

community is a significant part of our

vision and we believe Meezan Bank

will be a key partner in helping us

realise this goal.”

of expected credit headwinds caused

by the current economic stress, the

Bank has taken an additional general

provision of Rs 2.750 billion during the

quarter and subjectively downgraded

a few customers showing credit

weakening.

Accordingly, the coverage ratio stands

at 109.8% while the infection ratio

remained stable at 3.5%. The Bank

remains adequately capitalized, and

CAR was well above the regulatory

requirement with 14.64 percent as at

June 30, 2022.

This momentum will continue, despite

the prevailing uncertainty, since the

Bank is committed to its strategy of

growth, customer centric approach

and innovation.


Meezan Bank announces financial results

for the half year ended June 30, 2022

The Board of Directors of Meezan Bank

approved the financial statements of

the Bank for the half year ended June

30, 2022. The meeting was chaired by

Mr. Riyadh S.A. A. Edrees – Chairman

of the Board, Mr. Faisal A. A. A. Al -

Nassar – Vice Chairman of the Board

was also present.

The Board has approved an interim

cash dividend of Rs 1.75 per share

(17.5%) and 10% bonus shares. This

brings the total cash dividend payout

for the half year to Rs 3.50 (35%) per

share along with 10% bonus shares.

The Bank’s profit after tax increased

to Rs 17.1 billion compared to Rs 12.6

billion in the corresponding period last

year, reflecting a 36% growth – despite

taxation charge at 49% (inclusive of

10% super tax) in the current half

year pursuant to Finance Act 2022.

The Bank was able to manage its tax

charge efficiently by maintaining an

ADR of over 50% and accordingly, did

not attract any additional tax charge

Mastercard partners with MCB Bank to empower SMEs

in Pakistan with Simplify Commerce Technology

Mastercard and MCB Bank have

entered a strategic partnership to

boost financial inclusion in Pakistan

and empower small businesses with

Simplify Commerce, an all-in-one

e-commerce technology solution.

The agreement was signed between

Mr. J.K. Khalil, Cluster General

Manager, MENA East, Mastercard

and Mr. Shoaib Mumtaz, President

& CEO, MCB Bank at MCB House,

Lahore. Senior members from both

organizations were also present at the

ceremony.

Simplify Commerce, powered by

Mastercard Payment Gateway Services,

is specifically designed to be easy to

use, making it possible for merchants

with only a minimal amount of digital

experience to access a convenient and

secure acceptance solution and receive

payments within a matter of minutes.

The partnership allows businesses to

sign up for an innovative and costeffective

application that allows

them to quickly embrace electronic

acceptance. Extremely easy to set up,

the technology enables SMEs with

a suite of powerful payments and

business management features that

help simplify backend processes,

helping MCB partner merchants to

focus on core business functions as

they enter and thrive in the digital

marketplace.

The solution benefits small businesses

who want to build their own webstores

without coding knowledge, use

advance payment options such as

e-invoicing, integrate with social

media, take informed business

decision using the powerful reporting

module or build payments into

existing websites with hosted payment

or shopping cart payment plug-ins.

29

relating to ADR

below 50%.

Total deposits of

the Bank closed at Rs 1.57 trillion – an

8% growth over last year. During the

half year, the Bank opened 29 new

branches, bringing its geographical

network to 931 branches in more than

300 cities. The Bank’s ATM network

crossed the 1,000 ATMs milestone

during the half year. The Bank’s Mobile

Banking App remains the highest-rated

Mobile App in the banking industry on

both Google Play Store and Apple App

Store.

The Bank’s net spread grew by 46%

to Rs 45.4 billion from Rs 31.2 billion

in corresponding period last year,

primarily due to volumetric growth

in earning assets and higher average

underlying policy rate during the half

year.

The Bank’s non-funded income also

recorded a growth of 57% closing at

Rs 10.7 billion as compared to Rs 6.8

billion in corresponding period last

year mainly

due to debit

card related fee

income, higher

trade related

income and

branch banking

income.

Total assets of the Bank crossed Rs

2.4 trillion, registering a 27% growth

(Rs 514 billion), over December,

2021 (Rs 1.9 trillion). The Bank’s nonperforming

financing ratio remained

at an exemplary level of 1.7%. The

Bank maintains a comfortable level of

provisions against its non-performing

financings with a coverage ratio

of 139% - one of the highest in the

banking industry. The Investments

portfolio of the Bank doubled, growing

to Rs 1.2 trillion from Rs 620 billion last

year after investment of more than Rs

600 billion in GoP Ijarah Sukuk. During

the half year, the Bank made additional

general provision of Rs 750 million

against any potential non-performing

financings in view of the current

ongoing economic slowdown.

J. K. Khalil, Cluster General Manager,

MENA East, Mastercard, said: “Small

businesses play a vital role in uplifting

communities and building inclusive

economies. As SMEs navigate a

changing digital world, it is crucial

to have access to the right insights,

technologies, and solutions to grow

and scale. Together with MCB Bank,

we are supporting Pakistan’s SME

community and providing these

businesses with the digital tools and

resources to help them thrive.”

Shoaib Mumtaz, President & CEO

at MCB Bank, said: “Our alliance

with Mastercard will provide small

and medium enterprises a powerful

suite of business management

tools to better manage the financial

and administrative aspects of their

enterprises. We are confident that

Simplify Commerce will greatly

streamline backend processes,

providing MCB partner merchants the

freedom to focus on what’s important,

growing their businesses in the

ecommerce arena. This

partnership will go a long

way towards empowering

entrepreneurs and

fostering financial

inclusion, both critical

drivers of sustainable

economic growth.”


State Life opens modern

data centre in Islamabad

State Life is Pakistan’s largest life and

health insurer, which serves more

than 140 million Pakistanis and only

insurer in Pakistan with AAA rating.

As part of its chairman’s broader

vision of providing every citizen of the

country with the benefits of true social

and financial protection, SLIC has

launched state-of-the-art data centre

and digital services at State Life Tower

Islamabad. The ceremony was largely

attended by government officials and

corporate clients of State Life.

Chief guest of event Federal Minister

of Commerce Syed Naveed Qamar,

Muhammad Sualeh Ahmad Faruqui

Federal Secretary Commerce and

Chairman State Life Shoaib Javed

Hussain inaugurated the data centre in

Islamabad and introduced a number

of digital initiatives and innovations

BankIslami becomes first

Islamic bank to finance EWHR

BankIslami has become the first Islamic

Bank to have successfully structured

and disbursed Pakistan’s first Shariahcompliant

Electronic Warehouse

Receipt (EWHR) financing issued

under the repository system managed

by Naymat Collateral Management

Company Limited.

To facilitate farmers & aggregators

to avoid distress sales during the

harvesting period, SECP issued

Collateral Management Company

(CMC) Regulations in the Year 2019 to

create an enabling environment and

accredit warehouses for the storage of

different commodities.

Naymat Collateral Management

Company Limited (NCMCL), the first

CMC of Pakistan registered under

the said regulations, is authorized to

TPL Trakker wins two

Brand of the Year Awards

The Brands of the Year Award is

hailed as one of the most eminent

and trustworthy brand awards in

the industry based on the current

year’s market standing and consumer

preferences. TPL Trakker received

two prestigious awards at the BoYA

beside that SLIC launched five unique

health protection products for its

customer.

“Speaking on the occasion, The

minister of commerce expressed that

it is heartening to see that State Life is

not only enhancing its efficiency and

services through digital solutions but

also facilitating the most vulnerable

of the society to cater for unforeseen

circumstances for them and their

families through its innovative and

best-in-value products.

The core objective remains optimum

facilitation for clients who are expected

to derive various benefits in a hasslefree

environment.

State Life had a record-setting

performance in 2021, and I am pleased

to note that it is continuing its strong

performance in 2022, delivering

growth across all lines of business and

now across life and health, serving

accredit warehouses to accept

& store commodities, and issue

Electronic Warehouse Receipts

(EWHR) through a digital

repository system duly connecting

all relevant stakeholders, including

Warehouse Operator, Depositor, Bank

and CMC. Banks can access the system

to accept EWHR for financing to their

customers, as per their credit policy,

against stored commodities.

In this regard a ceremony was

held at BankIslami Head Office,

Karachi to commemorate this first

of its kind Shariah compliant EWR

financing transaction. The ceremony

was attended by President & CEO

BankIslami, Syed Amir Ali and Shakaib

Arif CEO NCMCL along with other

senior officials from both entities.

Syed Amir Ali, President BankIslami

congratulated the NCMCL team for

taking this important initiative to

strengthen the most important link of

ceremony recently held in Karachi,

under the categories of Digital

Mapping & amp; Location Services,

and Fleet Management Solutions.

“At TPL Trakker we firmly believe in

progressive facilitation of evolving

digital ecosystems.

As a market leader, we continuously

outperform others by providing

30

more than 140 million Pakistanis in

leadership and vision of dynamic

chairman Shoaib Javed Hussain.”

On the occasion, Shoaib Javed

Hussain, Chairman SLIC said that “We

are excited to announced launching of

digital services for policy holders with

the aim of ensuring life and financial

protection of hardworking Pakistanis;

enabling them to further expand their

financial horizons with the confidence

that they are being protected by SLIC.

SLIC remains firm in its resolve to meet

the protection and savings needs of

Pakistanis across all strata of society

through innovative and value-adding

solutions.

Pakistan’s Agriculture value chain and

making EWHR financing a success.

He emphasized that agriculture is

the mainstay of Pakistan’s economy

providing food security so any

investment in the sector will not only

benefit farmers to enhance the crop

yield but also help Pakistan to generate

foreign exchange through surplus

exports.

He further said that BankIslami is

keenly focusing on the agriculture

sector and consistently growing its

Agri portfolio by facilitating farmers

through its 340+ branches in more

than 123 cities, while offering excellent

turnaround times, especially in terms

of Shariah Compliant EWR Financing.

innovative

solutions in

the areas of

IoT and fleet

management

to our

esteemed

customers

as well as

serving the nation through our digital

mapping and location services.


Honda Cars Q2 profit

down 41pc

Honda Atlas Cars (Pakistan) Ltd

announced a decline of 41 percent in

profits for the quarter ended June 30,

because of an increase in the cost of

sales.

In a statement to the PSX, the company

reported a net profit of Rs658.202

million during the first quarter ended

June 30 against Rs928.224 million

during the same period last year.

The company did not announce any

dividend for this period.

EPS came in at Rs4.61, compared with

EPS of Rs6.50 during the same period

last year.

The company said its sales for the

quarter increased to Rs30.245 billion,

compared with Rs21.764 billion a

year earlier. However, the cost of

sales was recorded at Rs28.330 billion

from Rs20.169 billion last year, which

reduced the profits.

Gross profit during the quarter was

recorded at Rs1.915 billion, against

Rs1.594 billion during the same period

last year.

However, other costs increased to

Rs821.185 million against Rs231.249

million which further decreased the

profit margins.

In terms of value, localization for

the vehicles assembled is between

25% and 30%, although the company

refused to provide a specific amount.

The company expects demand to

reduce by ~35% in MY23.

Mega Auto Expo begins

in Lahore

The country’s largest three-day

automobile, parts and accessories

event — Pakistan Auto Show — held at

Lahore Expo Centre recently.

Federal Minister for Industries &

Production Makhdoom Syed Murtaza

Mehmood inaugurated the expo along

with the Engineering Development

Board Chairman Almas Hyder.

Organised by the Pakistan Association

of Automotive Parts and Accessories

Manufacturers (Paapam), the event

features more than 153 exhibitors

comprising local and international

auto manufacturers and related

enterprises.

As Paapam represents over 3,000 large,

medium and small industries all over

Pakistan, its show-2022 is themed

as “Made-in-Pakistan”. Renowned

companies exhibited their latest

parts and technologies, including

150 auto parts

manufacturers.

Visitors will be able

to take test-drive

tracks for the latest

cars of MG, Toyota,

Suzuki and Honda.

Also, Motorway

Police Kiosk is

stationed at the venue to facilitate

the visitors by engaging them on how

to improve their driving and offering

Learner’s Driving Licenses on the spot.

“The government’s strong

commitment to this industry helps

to encourage large-scale investments

and creates a business-friendly

environment for the automotive and

engineering sectors as well. I offer

my heartiest congratulations to our

31

local industrialists and engineers who

have achieved remarkable success

in establishing a robust engineering

sector, which is generating remarkable

new opportunities for value-added

exports,” the industries minister said

while speaking on the occasion.

“The country’s automobile industry is

a cornerstone of the national economy.

It not only vitalizes the economy but

plays an essential role in elevating

Pakistan’s image as a progressive

country with a thriving industrial

base,” he added.

Paapam former Chairman Syed Nabeel

Hashmi said: “Pakistan Auto Show

2022 is setting

new benchmarks

and trends for

the automotive

industry. Today,

this mega event

has attracted

thousands of

visitors from all

over Pakistan as well as abroad,”

He said over 200 international buyers

and 100 international visitors have

arrived here to attend the show. He

urged the government to prepare

long-term plans in a bid to support

industries accordingly.

Paapam Chairman Abdur Razzaq

Gauhar while speaking on the occasion

said the people were passionate

about seeing the latest revolutionary

technologies being deployed in

Pakistan. “Some of the participants

this year include global automobile

brands, along with spare-parts

manufacturers, component suppliers,

Original Equipment Manufacturers

(OEM vendors), automobile traders,

investors, buyers and enthusiasts.”


A Progress on Battery

Industry in Pakistan

By Dr. Muhammad Nawaz Iqbal

During the expected period of 2022-

2027, the battery market of Pakistan is

expected to grow at a CAGR of more

than 3%. The COVID-19 epidemic had

a significant detrimental influence

on the country's economy, reducing

people's disposable income to buy

new consumer gadgets and, as a result,

lowering demand for batteries.

The battery is not only used in autos,

but it is also an important component

of other electrical gadgets that allow

the machine to function. Some

batteries can be recharged, which is

advantageous if the charging capacity

is high and long. Because of the benefits

they bring, top and well-known

brand batteries are preferred. Various

varieties of batteries are available,

each with a different price range and

FY23 is to be a challenging year

for Automobile in Pakistan

The Latest Automobile Industry

demand figures indicate a sharp

slump of 52% YoY (down 58% MoM)

to c.11,900 units; the steepest decline

since the initial pandemic lockdown

in Jun’20 owed to production

constraints. Administrative measures

to tame auto-part imports, monsoon

and Eid holidays led to the decline

in production during the month.

Although import quotas will gradually

ease off, high-interest rates, PKR

volatility, price hikes and production

constraints will continue to add to the

sector's woes in the year.

application. People are quite happy

with the performance of batteries

made by Pakistan's top brands.

For the benefit of customers, all of the

top 10 battery brands are discussed,

along with their most recent products

for 2020. These batteries are accessible

with battery pricing on online sites.

Customers will be more comfortable

with this essential product for home

appliances, autos, motors, and up or

solar panels because of the higher

quality characteristics and longer life.

Acid-based and maintenance-free

batteries were the two primary

categories of batteries in 2018. Sixtyfour

percent of respondents preferred

acid-based batteries, while 36 percent

preferred maintenance-free batteries.

Maintenance-free batteries have just

lately gained popularity. Previously, car

owners in Pakistan could only purchase

acid-based batteries. Pakistan shown

Restrictions on importing auto

parts by the SBP were the major

factor behind the sharp decline

in sales during the month. During

Jul’22, INDU and PSMC announced

non-production days, with an

additional 2 weeks in Aug’22 by the

former. Hence, INDU witnessed the

sharpest decline in sales (65% YoY),

below the 2,500 units level for the first

time since lockdown.

According to channel checks,

production will likely improve in the

coming months due to the easing

import restrictions (greater quota) for

Aug’22 and Sep’22. But, the companies

are likely to revert to single-shift

production due to the inability to

32

significant progress in development of

lithium-ion batteries.

A lithium-ion battery, often known as a

Li-ion battery, is a rechargeable battery

made up of cells in which lithium ions

travel from the negative electrode

to the positive electrode through

an electrolyte during discharge and

then back again during charging.

The positive electrode of a lithiumion

cell is made of an intercalated

lithium compound, while the negative

electrode is usually made of graphite.

Li-ion batteries have a high energy

density, little memory effect (with

the exception of LFP cells), and a low

self-discharge rate. Energy or power

density can be prioritized in the

design of cells. They can, however,

be a safety problem because they

contain flammable electrolytes, which

can cause explosions and flames if

damaged or incorrectly charged.

import required CKD kits (and other

parts) and the opening of LCs by banks.

Another round of price hikes

(averaging c.20% from May 22) was

witnessed during the month owing to

the unprecedented 15% devaluation of

the Pak Rupee. This, coupled with lower

utilization will pressure margins in the

ongoing quarter, in our view, despite

the multiple price hikes (May’22 price

hikes will be effective from Jul’22 as

well). Also, announcement of refunds

by INDU is likely to impact profits in

the coming quarters.

Tractor sales witnessed a similar

trend, with AGTL continuing to

outperform MTL. We believe MTL’s

underperformance is likely due

to reduced operations as refunds

continue to grow. Although the sector

operates at a high localization level,

supply chain constraints from vendors

are likely to have also attributed to the

decline.

Moving forward, we expect industry

sales to decline by c.30% YoY, owed to

i) steep reduction in auto-financing

underpinned by an increase in interest

rates, ii) overall slowdown due to a

decrease in purchasing power amid

inflationary pressures and multiple

price hikes, and iii) ongoing production

concerns leading to further delays in

sales.

Courtesy - Intermarket Securities

Limited


Steel industry performance

during H1-FY22: SBP

The steel sector witnessed 18.4 percent

growth during H1-FY22, compared

to 12.1 percent decline in the same

period last year. The increase in steel

production is partially a response to

demand-side factors. The demand for

flat steel is attributed to the robust

growth of sectors such as automobiles

(discussed earlier) and domestic

appliances.

Within appliances, the manufacture

of refrigerators, deep freezers, and air

conditioners grew by 41.5 percent,

13.8 percent, and 79.6 percent during

H1-FY22, compared to 28.3 percent,

ASTL venturing into Non

Ferrous segment

•The Board of Directors of Amreli Steel

Limited (ASTL) recently approved

an investment to install a facility for

the production of ADC12 Aluminum

Alloy Ingots, a widely used alloy to

produce Pressure Die Casting (PDC)

components used in Engineering,

Electric Lighting and Automotive

Industry. Per our discussion with

management, the total CAPEX of the

project is estimated at Rs750mn with

the project to be financed with a Debt

to Equity ratio of 80:20. Initial product

capacity will be 18k MT which is

expected to come online in FY24.

• As per our estimates, the incremental

impact on the earnings of ASTL is

likely to be Rs1.6/share (15%-20% of

FY24 Earnings) from this Aluminum

segment.

• For our estimates, we have assumed

an Aluminum scrap LME (raw

material) price of US$1,430/MT with a

primary margin of US$770/MT.

-8.7 percent, and 32.3 percent last

year, respectively. As a result, flat steel

registered a growth of 8.8 percent

during H1-FY22, compared to a decline

of 26.2 percent in the same period last

year.

Meanwhile, the demand for long steel is

associated with higher PSDP spending

and infrastructure development,

including dams (as mentioned earlier).

Steel manufacturers had positioned

themselves to meet the anticipated

demand and have continued to

undertake capacity expansion.34

Moreover, anecdotal evidence

suggests that the large, graded steel

manufacturers have recently been

able to capture some market share

• ASTL is looking for both options to

go for exports or tap the local market,

but we have assumed 100% exports in

our projections due to higher export

potential. To arrive at the selling price,

we incorporate a 1% discount on

LME Aluminum, considered a global

benchmark for pricing the commodity

and comes close to US$2200/ton.

• The manufacturing process of

Aluminum is not very energy intensive,

unlike long steel rebar, which

consumes more power. Conversion

cost (cost of conversion from scrap to

end product) is estimated at US$250/

MT.

• Globally, similar manufacturing

facilities have 3-10% conversion losses.

Conservatively, we have incorporated a

conversion loss of 10%. While the waste

scrap could also be sold, for which we

have assumed a 90% discount on the

Aluminum scrap price.

• We have assumed plant capacity

utilization of ~70-75% for the first

two years, which will likely improve

gradually.

33

• Given high

container and

sea freight costs,

we have assumed

gross margins

of ~12%, which

could improve

once the global

supply situation

from smaller firms by, among other

things, branding their graded rebars as

superior products.

Resultantly, the long steel segment

posted 36.7 percent growth during

H1-FY22, compared to 39.1 percent

expansion in the same period last year.

improves.

• Company is likely to use the straight

line depreciation method for the

project with a life of 20-year. We have

also incorporated the working capital

requirement with a net cash cycle of

three months.

• ASTL would be insulated from any

major duties as the company is likely to

enjoy duty exemption on raw materials

consumed for exports.

• The full and final tax would be only

1% for exports, which could result

in a lower effective tax rate for the

company.

• The development will help ASTL to

diversify its portfolio and improve

its bottom line. The management of

ASTL is also eying even to enhance this

Aluminum capacity.

• To recall, Mughal Iron & Steel

(MUGHAL), another listed steel

company, is already involved in

manufacturing copper with a capacity

of 8k MT and planning to enhance its

copper capacity by 10k MT. MUGHAL

has also designed add Aluminum

manufacturing facility with a total of

38k MT in FY23.

• ASTL is trading at FY23 PE of 4x,

which is in line with the market FY23

PE. We do not expect any dividend

payment in FY23.

Courtesy - Topline Securities


Huma Batool Becomes First

Ever Female Chairperson of

an Airline in Pakistan

Syeda Huma

Batool is the first

woman to own a

Pakistan-based

scheduled airline.

Ms. Batool is the

first ever woman

in the Pakistan Aviation Industry

who has the prestige of acquiring an

Airline License from the Pakistan Civil

Aviation Authority for Alvir Airways

Private Limited.

Ms. Huma Batool, a born leader and a

dynamic personality, having seventeen

years of diversified experience and

great research on business models and

systems of economy, holds the honor

of being the Chairperson, of Alvir

Airways Private Limited.

She is a woman who has a great passion

for her profession, she is an inspiration

not only for Pakistani women but

across the globe. She is awarded

numerous awards for her services.

She is a writer, and a poetess, and has

immense fondness for English, Persian

and Punjabi mystic poets.

Airblue launches regular

flights to Skardu

Airblue has expanded its operations

and launched its regular flights to

Skardu, after successful training and

proving flights to the destination.

This is another milestone achieved

by the airline. Airblue affirms vigilant

planning with strict compliance to all

protocols and SOPs at every step of the

journey to ensure passengers’ comfort,

convenience and safety.

PIA to acquire three new

aircraft next year

The Pakistan International Airlines

(PIA) has decided to induct three widebody

aircraft in its fleet next year.

According to sources, the PIA will

acquire Airbus A-330 and Boeing-787

within the first quarter of 2023 as part

of its improvement policy. The airline’s

spokesman said that the new aircraft

would replace the planes acquired

in 2002 and 2003. The induction of

new aircraft was aimed at expanding

operations for long-haul flights as

A-330 was one of the most modern and

reliable aircraft.

Separately, the airlines had also

planned to induct four Airbus A-320s

into its fleet in this year, out of which

two have already become a part of

the fleet while two more aircraft will

be added next month, the spokesman

Expansion of Serena Hotels

to develop tourism in KP

Tourism Promotion Services (Pak)

Limited has entered into a Business

Sale Agreement with Pakistan Services

Limited to acquire Pearl-Continental

Hotel Peshawar, with the intent to

promote the untapped potential for

tourism in Khyber Pakhtunkhwa

province. It will be Serena Hotels’

second property in KP province after

the Swat Serena Hotel, increasing

the total number of Serena Hotels in

Pakistan to 9.

The addition of Serena Hotel in

Peshawar, the oldest city of Pakistan

with a rich cultural heritage, will not

only help in extending the tourist

circuit in KP province but will also

allow regional connectivity for tourists

and business travelers through its

portfolio of hotels in Islamabad,

34

added.

Moreover, the airline has decided

to refurbish five existing A-320s and

replace their old seats with spacious

and more comfortable ones. The

PIA spokesman said the process of

refurbishing would be completed

within four months.

Aviation Minister Khawaja Saad Rafiq

was briefed recently by the airline’s

management about the procurement

of new aircraft and improvement in

service delivery. The minister also

ordered replacement of the seats in

PIA’s special Boeing-777 long-haul

aircraft which operates on Canadian

routes.

Peshawar, Kabul and Dushanbe. The

Serena Hotels has plans to further

expand its portfolio to other Central

Asian countries in the future.

Serena Hotels in Pakistan is playing

a pivotal role in promoting tourism

in underdeveloped areas of Pakistan

with four properties in Gilgit-Baltistan

including three Heritage properties.

Two new Serena Hotels are under

construction in Hunza and Sost in

Gilgit-Baltistan.

The properties will showcase the scenic

areas, rich cultural heritage, local

cuisine, and traditional hospitality of

the region, while providing economic

opportunities for the local community

through skill development,

employment, and enhancement of

the value chain. As destination hotels,

they will not only allow tourists to

relax and enjoy the stunning views, but

will also provide venues for corporate

retreats, family reunions, weddings,

and conferences.

The Company plans to invest in

Peshawar Hotel for upgrading the

guest rooms, restaurants, banquet hall,

meeting rooms, health club, public

areas, and service delivery in line with

Serena Hotel’s standards.

TRADE CHRONICLE

TC Jul-Aug 2022 Issue

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