TC Jul-Aug 2022 Issue
Transform your PDFs into Flipbooks and boost your revenue!
Leverage SEO-optimized Flipbooks, powerful backlinks, and multimedia content to professionally showcase your products and significantly increase your reach.
www.tradechronicle.com Vol - Issue Nos. & - Jul - Aug. Rs. /-
ESTABLISHED IN MARCH
th
- YEAR OF PUBLICATION
TTADE CHHONICLE
PAKISTAN’S OLDEST MONTHLY MAGAZINE OF COMMERCE, TRADE, INDUSTRY & PUBLIC AFFAIRS
Trade Chronicle
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
www.tradechronicle.com Vol. 69 Issue Nos. 7 & 8 Jul - Aug 2022 Rs. 250/-
PAKISTAN OLDEST MONTHLY MAGAZINE OF COMMERCE, TRADE, INDUSTRY & PUBLIC AFFAIRS
Circulation Audited by ABC
CONTENTS
Founded by:
Late Abdul Rauf Siddiqi
Editor:
Abdul Rab Siddiqi
Special Feature’s Editor:
Abdul Rafay Siddiqi
Managers:
Shoukat Hayat
Aftab Alam
*****
Editorial & Business Office:
Office M-2,
DADA Garden,
Plot No. 10,
Jamaluddin Afghani Road,
Sharfabad,
Karachi-74800.
Phone: 92-21-34893095
Auto Phone / Fax: 92-21-34893091
E-mail: arsidiqi@yahoo.com
*****
Editorial Representative in
Islamabad
Ajaib Malik
0300-5259936
Business Representative in
Islamabad
Waseem Ahmed Subhani
Mobile: 0333-5332280
Representative in Lahore
Usman Nadeem
Mobile: 0320-8435673
*****
Subscription Rates:
Annual Rs. 1,200/-
Foreign by Air Mail $75/-
*****
Publisher:
Abdul R. Siddiqi
Printer:
Chronicle Printers
Karachi
EDITORIAL
• 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
TRADE CHRONICLE Jul - Aug - 2022
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
TRADE CHRONICLE Jul - Aug - 2022
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
TRADE CHRONICLE Jul - Aug - 2022
75 years of Pakistan
8
TRADE CHRONICLE Jul - Aug - 2022
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.
TRADE CHRONICLE Jul - Aug - 2022
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
TRADE CHRONICLE Jul - Aug - 2022
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
TRADE CHRONICLE Jul - Aug - 2022
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
TRADE CHRONICLE Jul - Aug - 2022
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
TRADE CHRONICLE Jul - Aug - 2022
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
TRADE CHRONICLE Jul - Aug - 2022
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.
TRADE CHRONICLE Jul - Aug - 2022
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).
TRADE CHRONICLE Jul - Aug - 2022
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
TRADE CHRONICLE Jul - Aug - 2022
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.
TRADE CHRONICLE Jul - Aug - 2022
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
increasing by 2.3% year-on-year on a
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
increasing by 1.6% year-on-year on a
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.
TRADE CHRONICLE Jul - Aug - 2022
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
TRADE CHRONICLE Jul - Aug - 2022
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.
TRADE CHRONICLE Jul - Aug - 2022
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.
TRADE CHRONICLE Jul - Aug - 2022
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
TRADE CHRONICLE Jul - Aug - 2022
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.
TRADE CHRONICLE Jul - Aug - 2022
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
TRADE CHRONICLE Jul - Aug - 2022
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.
TRADE CHRONICLE Jul - Aug - 2022
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.”
TRADE CHRONICLE Jul - Aug - 2022
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.
TRADE CHRONICLE Jul - Aug - 2022
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.”
TRADE CHRONICLE Jul - Aug - 2022
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
TRADE CHRONICLE Jul - Aug - 2022
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
TRADE CHRONICLE Jul - Aug - 2022
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