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TRADE CHRONICLE Sep - Oct - 2022

www.tradechronicle.com Vol. 69 Issue Nos. 9 & 10 Sep - Oct 2022 Rs. 250/-

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

Circulation Audited by ABC

CONTENTS

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Late Abdul Rauf Siddiqi

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EDITORIAL

• The Thar coalfield will pave the way for more power generation

ARTICLE & FEATURE

• Thar Coal Mining: a game changer for Pakistan

• Viewpoint on the Coating Industry of Pakistan - By Dr. Muhammad Nawaz Iqbal

• PCA congratulates LCCI

• Siraj new Chairman of PCA

• Achieving ‘$50bn’ textile exports in 4 years - By Dr Gohar Ejaz

• Asif Inam elected unopposed as chairman of APTMA

PORTS, SHIPPING & RAILWAY

• Abdul Rauf elected unopposed as Chairman of PSAA

• PNSC posts highest profit in FY22

• Rear Admiral Jawad Ahmed, assumed Chairman PNSC

• New goods clearance rules

• IMO Events – World Maritime Day 2022 held in Karachi

• Hutchison Ports network donates $250,000 for flood victims

• Gwadar varsity, PMSA ink deal for collaboration

• PQA plans port terminals

• PIBT pays a royalty of Rs. 3,396 mn to PQA in FY22

• DP World plans an industrial park in Pakistan

• Maritime Affairs Ministry donates Rs70 mn in PM Relief Fund

• Saudi Ports Authority signs $170m contracts to establish new berths at Jeddah

Islamic port

• DP World to ease supply chain congestion

• Coal exports expands at KPT

LEATHER INDUSTRY

• Muhammad Mehr Ali, new Chairman PTA

• PFMA election 2022-23 result announced

• Performance of two shoes companies

• The 8th Pakistan Mega Leather Show 2023

• Bangladesh leather posts growth in export

• Leather production in Pakistan

• PTA participates in APLF ASEAN Show

CEMENT INDUSTRY

• Flying to install 21MW power plant for under construction Line 2

• Pakistan cement industry aftermath of floods

• Kohat Cement's profit increased by 43.66 percent in FY21-22

• Fauji Cement reports profit despite higher taxes in FY22

• Lucky Cement to install a 25.3 MW solar power plant in Karachi

• D.G. Khan Cement earns a lesser profit of PKR 2.972bn in FY21-22

• Local and export dispatches fall during Sep in Pakistan

• Bestway lights up its kiln at Mianwali plant

REGULAR FEATURES

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

• Telecommunication News, Travel World, Steel & Allied Industry

3


TRADE CHRONICLE Sep - Oct - 2022

We begin with the name of Allah the Magnificient

The Thar coalfield will pave the way for more power generation

The Thar coalfield was discovered by the Geological Survey of Pakistan

(GSP) and the United States Agency for International Development

in the Thar Desert, Tharparkar District of Sindh province, in 1991. It is

estimated that 175 billion tons of indigenous coal deposits in Thar can make

the country self-sufficient in energy for years to come and save huge foreign

exchange spent on importing LNG and crude oil/ products.

October 2022 was a milestone in the history of Thar coal fields when the

Sindh Engro Coal Mining Company (SECMC) completed phase II of its mine

expansion during this month to produce 7.6 million tons per annum (MTPA)

from the previously 3.8 mtpa under phase I of its plan. This will pave the way

for more power generation based on Thar Coal.

From the

editor's

desk

ABDUL RAB SIDDIQI

We believe this is a major achievement and shares triumph for the country

and the SECMC as this achievement translates into the much-needed energy

security for Pakistan.

Prime Minister Shehbaz Sharif, Sindh Chief Minister Syed Murad Ali Shah,

Pakistan’s Foreign Minister, Bilawal Bhutto Zardari, Sindh Energy Minister

Imtiaz Shaikh and others while inaugurating the 2nd phase of mining

operations and a 330-megawatt power plant of Thar Energy Ltd (TEL), pinned

hope that cheaper energy production from Thar coalfields would be a game

changer for national development. They hoped the Thar coal project would

help the government save up to $6 billion annually in reduced energy imports,

which had already crossed the $24bn mark.

PM Shehbaz justified by saying that ignoring the country’s indigenous coal

reserves was a huge mistake and announced that he’d convene a meeting of

stakeholders on Thar coal mines to discuss the way forward. He said the federal

government, in collaboration with the Sindh government, would chalk out a

policy framework on the Thar coal project to connect it with the rest of the

coal-powered plants in the country, producing 4,000MW of electricity.

The coal-powered plants, he said, would provide feasible electricity production

at the rate of Rs 10 per unit, helping save valuable foreign exchange. Earlier,

he said, the project would be connected through a freight rail track for the

transportation of coal to other parts of the country - a long desired by investors.

We understand that Thar has emerged as a development model through a

public-private partnership that will provide jobs to local people and improve

their lives. The phase II expansion will further reduce coal prices from the

current $65/ton to around $46/ton, making it one of the cheapest fuel sources.

Climate change is coal’s most serious, long-term, global impact. Chemically,

coal is mostly carbon, which, when burns, reacts with oxygen in the air to

produce carbon dioxide, a heat-trapping gas. Carbon dioxide works like a

blanket when released into the atmosphere, warming the earth above normal

limits. We hope the government will leave no stone unturned to mitigate the

negative environmental impact or seek a solution from China, the world’s

largest coal power producer. The plantation drive should be excelled to

over the issues. The tree plantation drives are an ideal solution to make the

environment friendly and should be followed, we suggest.

4


Thar Coal Mining: a game

changer for Pakistan

Prime Minister Shehbaz Sharif has

said amid skyrocketing fuel prices,

inexpensive energy production from

Thar Coal Mines Project would prove

to be a game-changer for development

of entire Pakistan. Addressing the

inauguration of commercial operations

of Phase-II of Sindh Engro Coal

Mining Company (SECMC) during

his visit to Thar Coal Mines Block-II,

Shehbaz said the project could help

the government save up to $6 billion,

as the expenditure on import of petrol

and liquid petroleum touched $24

billion.

He said Thar Coal Project was high

on the government’ agenda in view of

reduced cost of power generation. He

inaugurated 330MW Power Plant of

Thar Energy Limited (TEL) and also

inspected the construction site of

SECMC Mine Phase-II at Islamkot.

He said the federal government,

in collaboration with the Sindh

government, would chalk out a policy

framework on the Thar Coal mines

project, with the objective to connect

it with other coal-powered power

plants in the country, producing 4,000

megawatts.

Shehbaz said gas price in the

international market had shot up

and regretted that the government

could not import it for supply to the

consumers during the winter. He

mentioned that the international cost

of coal had come down from $67 to $44

and had prospects of further reduction

up to $30. The coal-powered plants,

he said, would prove to be a feasible

operation for electricity production at

the rate of Rs10 per unit.

The prime minister said Thar Coal

project would save the country’s

foreign exchange and help the

economy to thrive. In March 2023, he

said Thar Coal Mines Project would be

connected through a freight rail track

for transportation of coal to other parts

of the country.

He lauded the Sindh government,

Hubco and Chinese government and

companies for training

the local professionals

and workers, and also

appreciated the women

working in the field

including at water plants

and dumping trucks.

He expressed satisfaction

that Thar was undergoing

a fast development after

former prime minister

Benazir Bhutto first

visited the area in 1996 and envisioned

a prosperity plan for the locals.

Foreign Minister Bilawal Bhutto

Zardari said Thar once known for

malnutrition and infant and maternal

mortality rate had now emerged as a

game-changer and a public-private

partnership model of development.

He mentioned the project had

contributed towards provision of job

opportunities to the local people of

Thar, thus improving their lifestyle. He

said that under the public-partnership

projects, the barren desert of Thar was

now witnessing crop irrigation and

fish breeding even with the use of hard

water.

Bilawal expressed confidence that

the prime minister, with his inspiring

‘Shehbaz Speed’ would materialize

the development plans at a fast pace.

Speaking about the project, Chief

Minister Sindh Murad Ali Shah said the

Sindh government had allocated 40

percent equity along with 60 percent

contributed by Sindh Engro in the

public-private partnership.

Quoting the Geological Survey of

Pakistan (GSP), Murad said Thar had

175 billion tonnes of coal reserves of

worth $29 trillion or more than the oil

reserves of Saudi Arabia and Iran. He

added the entire coalfield had been

divided into 13 blocks, of which Sindh

Engro Coal Mine Company (SECMC)

was working in Block-II, a reservoir of

two billion tons of coal, and SSRL was

engaged in Block-I, a reservoir of five

billion tons.

He said had the work on Thar coal not

stalled since its first mining in 1991,

the project would have produced

5

10,000 megawatts by now. He termed

Sindh province the ‘energy basket of

Pakistan’, with immense potential of

natural energy resources, including

solar and wind energy.

Chinese Ambassador Nong Rong

congratulated the Government of

Pakistan on the successful completion

of the project, and lauded Prime

Minister Shehbaz Sharif for his

“consistent devotion and firm

support” in strengthening Pakistan-

China cooperation including in CPEC

projects.

He hoped the new power bloc would

help overcome energy shortage,

and provide reliable and affordable

electricity. The envoy thanked the

Pakistan Army for providing foolproof

security to the Chinese professionals

working in the country.

As ‘Iron Brother’, he said China

would be happy to continue assisting

Pakistan to help it achieve prosperity.

Chairman Hub Power Company

Limited (Hubco) Habibullah Khan

said Hubco continued to be Pakistan’s

largest independent power producer

and contributed $5 billion to the

country in four CPEC projects.

He said Hubco’s investment in

production of the cheapest power

was significant for ensuring longterm

energy security in the country.

The Sindh chief minister presented

samples of indigenous Thar coal to

Shehbaz Sharif, Bilawal Bhutto, and

Chinese envoy Nong Rong. Former

prime minister Shahid Khaqan Abbasi,

senior officials, and representatives of

Chinese companies were present.

Courtesy - media


TRADE CHRONICLE Sep - Oct - 2022

Viewpoint on the Coating Industry of Pakistan

By Dr. Muhammad Nawaz Iqbal

For the first time, the size of Pakistan’s

economy topped $300 billion.

Although there are no official statistics

on the value and volume of the paint

and coatings business in the nation,

most players estimate that it is worth

PKR 37 billion. Pakistan’s market for

paints and coatings is only somewhat

consolidated, with a few key firms

controlling the industry.

AkzoNobel, Berger Paints Pakistan

Limited, Brighto Paints, Diamond

Paints, and Nippon Paint are a few

well-known businesses. Throughout

the projected period, Pakistan’s paints

and coatings market is anticipated to

expand at a compound annual growth

rate of over 3%.

Growing demand for paints and

coatings from the architectural

coating is a major element driving

the market under study. In Pakistan,

where residential and commercial

construction activities heavily

influence demand, architectural/

decorative coatings are the most

important type used. These enriching

paints are either oil-or water-based

paints for tasteful purposes for both

inside and outside applications.

The construction sector’s contribution

to Pakistan’s GDP increased roughly

10.45% in 2019, showing an increase in

the country’s construction operations.

One hundred ten paint manufacturing

facilities are reportedly active in the

PCA congratulates LCCI

A Pakistan Coating Association (PCA)

delegation led by the Vice Chairmen

of PCA, Mr M Imran Sulehria and Mr

M Waqas Mughal, met with the newly

elected office bearers of the Lahore

Chamber of Commerce & Industry

(LCCI) and congratulated them.

Mr Kashif Anwar, President of LCCI,

admired the efforts of the PCA for

taking different initiatives to facilitate

the country’s business community,

particularly the initiatives to enhance

unorganised sector. A considerable

lot of them are likewise not covered

under the extract net similarly to the

communal area and, therefore, are in a

better position to compete in the local

market. Although there are no official

statistics on the value and volume

of the paint and coatings business

in the nation, most players estimate

that it is worth PKR 37 billion. For BPI,

advancing products worldwide was, in

every case, part of the arrangement.

Even though they are productive

and beneficial locally, the Pakistani

market alone isn’t adequately large to

help the enormous scope of potential

open doors. To boost incomes, I want

to think universally and fabricate

products according to a worldwide

point of view.

On the off chance that the focus is

predominantly on the neighbourhood

market, the merchandise created

will provide food to the nearby

clients, passing on no space or

potential opportunities to check our

presentation outside the country.

In addition, growing abroad is a savvy

step, keeping in view the speed of

progress in the taste and patterns of

Pakistani customers. Nearby clients

show less reliability to the brands

and continue to switch among them.

Focusing available abroad enhances

the client base and diminishes

reliance and chance levels. A coating

the export of the member industries.

While addressing the occasion, Mr M

Imran Sulehria, Mr M Waqas Mughal

and Mr Moazzam Rasheed demanded

the Government include the PCA

member industries in the list of Export

Oriented Sector.

If the government offers the same

facilities to the PCA member industries,

they can enhance exports to one billion

USD. The meeting was also attended

by many notable industrialists and

members of PCA and LCCI.

6

company may form various strategic

alliances, including joint ventures and

fully or partially owned subsidiaries.

The strategic alliance partners share

the risk of achieving a shared goal.

The coalition might be framed for a

quick experience in another market,

decreased marketing costs, admittance

to innovation, or more proficient

creation.

In a joint venture, the firm is possessed

by at least two free firms and deals with

the advantage of lower speculation and

admittance to the skill of the nearby

accomplice regarding marketing,

creation, obtainment, and information

about the legitimate, political and

social climate. Pakistan’s paint business

delivery gotten-done and halfway

items, including shades, sicknesses,

plastic emulsion, polish, undercoat,

preliminaries, elastic paint, aero plane

paint, marine paint, anticorrosive

paint, hostile to fouling paint, and so

on. The paint business in Pakistan is

encountering a yearly development

pace of around 6-8 per cent.

In 2018, the limit achieved was about

18 million litres of paint, according

to an official of the Pakistan Paint

Manufacturers Association (PPMA).

The advancement in development,

assembling, transport and different

areas has expanded the interest for

paints in Pakistan.

The paint business has quite far in its

development endeavours. There is a

ton of potential to thrive because the

interest in painting is expanding.

Siraj new Chairman of PCA

Mr. Siraj U Din of

Nelson Paint Industry

(Pvt) Ltd, Karachi, has

been unanimously

elected as the new

Chairman of the

Pakistan Coating

Association (PCA) for 2022-23. PCA

Elections were held on 26 Sep 2022 to

elect its new leadership for 2022-23.

Other office bearers include Mr

M. Badar Haroon of Haroon Paint

(Ind) Corp, Rawalpindi as Senior

Vice Chairman of the association.

Two Vice Chairmen of PCA are Mr

Imran Sulehria, DS Enterprises,

Lahore and Mr M. Waqas Mughal,

Norson Chemicals Industries, Lahore,

respectively, for the year 2022-2023.


TRADE CHRONICLE Sep - Oct - 2022

Achieving ‘$50bn’ textile exports in 4 years

By Dr Gohar Ejaz

Pakistan’s textile industry is on an

upward trajectory with the addition

of $500 million per month through

incremental capacity. This has been

enabled through TERF (temporary

economic refinance facility) and its

support to 100 new projects.

However, even the current capacity

is not fully utilized due to energy

supply and quality constraints for

the last 6 months, costing Pakistan

approximately $300 in lost production/

exports million per month.

The global apparel market is expected

to grow to $843.13 billion in 2026 at a

compound annual growth rate (CAGR)

of 8.6%, but Pakistan’s textile industry

has not captured a sufficient level of

this demand, given its potential and

existing capacity to add $10 billion per

annum to exports.

The textile industry is faced with

countless opportunities to capture

greater market share, but state reforms

in energy, technological upgradation,

diversification and value addition will

be necessary in order to enhance the

potential of the sector and facilitate

economic growth at unprecedented

levels.

It is pertinent to note Pakistani

exporters’ exemplary handling of

disruptions such as the COVID-19

pandemic and its greater performance

compared to regional competitor

Bangladesh.

To maintain the current momentum,

the textile sector has committed to

unprecedented value addition by

committing to set up 1000 garment

plants. Each plant will consist of 500

stitching machines at an investment of

$7 million; able to produce garments

for exports of $20 million per annum,

while generating employment for 700

workers.

The total investment would be US $7

billion generating annual exports of $20

billion and providing employment to

well over 700,000 workers. A thousand

garment plants are being established

near major textile producing cities.

This commitment is reliant upon

strong and sustained policy support.

Despite having been acknowledged as

7

the backbone

of the economy

since early on,

the textile sector

has suffered through a period of weak

policy support over the years. In order

to grow at scale and achieve its target

of $50 billion in exports over the next 4

years, the textile sector requires:

• Adequate supply of energy at

regionally competitive tariffs

• Availability of working capital

• 500 new entrepreneurs

• TERF like facility for Rs 500 billion ($

2 billion) to facilitate investment

• Debt Equity ratio of 80:20 which

includes building & infrastructure as

50 percent of cost of garment factories

is on these items.

It is important to note that the textile

sector has had its order books full

for the past few years, despite the

countless setbacks due to external

challenges – inflation, high interest

rates, the war in Ukraine, lockdowns

and technological change.

By identifying key setbacks and

garnering policy support and

facilitation from the government

at unprecedented levels, the sector

emerged successful in meeting a

majority of the demand, increasing

its output and improving its logistics

network. These results have been

tangible and had a great bearing on the

economic growth projection for the

coming year.

The ready-made garments industry

has emerged as one of the most

important small-scale industries in

Pakistan, with sizeable demand both at

home and abroad. In terms of quality,

Pakistan’s products can greatly benefit

from technological upgradation.

Advancements in equipment and

e-manufacturing can exponentially

improve our exports and facilitate an

entry into high performance apparel

and MMF. This will also allow the

sector to meet its needs in terms of

value addition and diversification of

the export bundle.

Pakistan is the 4th largest producer

and 3rd largest consumer of cotton

worldwide. However, this major sector

is faced with frequent hurdles such as

import restrictions on critical inputs,

and long delays in the approval of

import permits. Meanwhile, most

South Asian economies have optimized

their production of goods and services

in which they have competitive

advantage, and further diversified their

export baskets to enter an abundance

of untapped markets.

They have also tapped into hightech,

high-value-added products.

The demand for MMF-based apparel

has grown exponentially, owing to

the convenience it affords. However,

cotton and textiles in Pakistan suffer

from a lack of quality research and

application. We must reduce the focus

on primary commodities, and make the

much overdue shift towards secondary

and tertiary sectors — manufactured,

nontraditional goods and value added

services.

With that said, the textile sector is

highly sensitive to energy outages and

quality, so given Pakistan’s troubled

energy sector, these matters ballooned

into a large-scale hindrance in its

growth and made it difficult to meet

costs, let alone achieve much needed

revenue targets that could allow for

modernization and expansion.

A long term Energy Tariff Policy with

clear billing mechanism is an essential

component to be ensured moving

forward, so that the performance

of textile sector can be rid of the

problems created by an unstable and

uncompetitive energy supply.

In addition to this, issues of grid

connected electricity, quality,

transmission and availability, and an

expensive energy mix abound. The

exporting industry cannot pass on

incidentals of taxation & institutional

inefficiencies to international buyers.

5-7% of incidences of various local

provincials & federal taxes are not

zero-rated on exports. The rising

circular debt is a direct result of the


TRADE CHRONICLE Sep - Oct - 2022

non-resolution of these longstanding

issues.

as well as a reputation for never

compromising on quality.

More specific issues to be

addressed include working

capital requirements. In FY22,

the total amount retained by

FBR (federal board of revenue)

as sales tax on domestic sales

was Rs 50 billion out of Rs 249

billion collected. Over Rs 250

billion liquidity of the industry

remains with the FBR at all times

as a result of this collection and

refund mechanism.

Sales tax is on a consumption

basis which inflates inventory and

capital costs, serving as an impediment

to new projects as capital cost increases

by 20 percent and refund can only

happen after commercial operations.

Furthermore, there are numerous

technical errors and inefficiencies in

the sales tax refund FASTER system

of FBR that require immediate

rectification.

According to a report by the IMF

(International Monetary Fund), the

cascading effect of GST has harmed

Pakistani exporters’ competitiveness

as there is currently no systemic

method to ensure that all tax paid

on inputs may be charged against a

final sale is refunded. This huge cycle

Asif Inam elected unopposed

as Chairman of APTMA

Asif Inam, the unopposed newlyelected

central Chairman of All Pakistan

Textile Mills Association (APTMA), has

vowed to restore the viability of the

textile industry to ensure growth and

sustainability.

The assurance was given while he

was delivering his maiden speech on

the occasion of 64th Annual General

Meeting of APTMA recently.

The newly-elected office bearers

including senior Vice Chairman

Rehman Naseem, Vice Chairman

Naveed Ahmed and Asad Shafi and

newly elected members of the Central

Executive Committee were also

present on the occasion. The meeting

was largely attended by member mills

representing all the regions.

In his address, Asif Inam assured

APTMA members that he and his team

will not leave any stone unturned for

of sales tax collection and refunds,

exporters suffer in the form of delayed

pending and deferred refunds. The

cost of collecting and refunding sales

tax outweighs the revenue collected by

a significant margin.

Competing textile economies have

opened up their markets, thereby

securing major market shares.

Following this strategy, Pakistan must

formulate its trade policies with a view

towards increasing market access, on

a reciprocal basis whereby Pakistan’s

market openness would also have to

increase. There must be a dedicated

effort to promote private investment

in the industry, which is naturally

contingent upon interest rate support,

taking forward the agenda of growth

and sustainability of the textile

industry while ensuring regional

competitiveness as APTMA members

are suffering from major issues.

He stressed upon the harmony and

unity amongst the APTMA members

to resolve the issues amicably. “APTMA

would be represented in the same

fashion as it has been carried on by the

previous management,” he added. He

further said that he will make all out

efforts to build up the image of the

Asif Inam

Export-oriented industries in

Pakistan are at least 25 percent

more productive than nonexport

oriented businesses,

and their productivity increases

with an increase in economic

activity as well as greater foreign

exposure and alliances. However,

systemic inefficiencies cannot

be exported, so these must be

mitigated from all inputs before

results can be seen.

Since exports in Pakistan are

labour-intensive, expansion in this

industry is a surefire way to ensure

large-scale job-creation, as well as an

increase in foreign currency to pay for

required imports.

The problem has not been a lack of

policy development, but rather the

implementation of policies to mitigate

the disadvantages that have persisted

over the years. With a greater focus

on implementation of policy, there

can be a tangible impact in terms

of sustainable development and

economic growth, greatly enhancing

the position of the textile industry and

Pakistan’s exports in the next 4 years.

Courtesy - Business Recorder

APTMA being the premier association

of textile industry in Pakistan.

He said it is unfortunate that the

textile industry, which is mainstay of

economy, leading foreign exchange

earner and employment provider

through backward and forward

linkages, was currently passing

through unprecedented period of

crisis. Consequently, the capacity

to produce over $5 billion worth of

exports is already closed.

He said the textile industry has already

invested over $5 billion and ready

to further invest one billion dollar

annually in case the government

ensures a congenial environment to

double the exports in next five years.

Asif Inam is a senior businessman. He

has served APTMA as Vice Chairman

and Chairman APTMA Southern Zone

for the year 2016 to 2018 and 2020

to 2022. He is the Chief Executive of

Diamond International Corporation

Ltd.

8


TRADE CHRONICLE Sep - Oct - 2022

Abdul Rauf elected unopposed

as Chairman of PSAA

Mr Abdul Rauf has been elected

unopposed as Chairman of the

Pakistan Ship’s Agents Association

(PSAA) for 2022-2023 at AGM, held in

Karachi recently. Likewise, Mr Asim

Saeed Khan was elected Senior Vice

Chairman, and Mr Taimur Badat Vice

Chairman for PSAA, respectively.

The other executive committee

members for the term 2022-2023

are Capt. Syed Nazar Haider, Mr

Ahmad Omar, Mr Syed Adnan Ahmad

Mahmoodi, and Mr Amin Sardar Ali

Bhola.

The incoming Chairman, Mr Abdul

Rauf, appreciated the

outgoing Chairman, Capt.

Javed Iqbal and his team

for their hard work to

serve the interests of the

Ports and Shipping sector,

which is vital for every

country’s development

and economic progress.

PNSC posts highest profit in FY22

Despite the challenging global

economic environment, Pakistan

National Shipping Corporation (PNSC)

Group has achieved highest to date

annual net profit after taxamounting to

Rs.5,650 million during the year 2021-

22 as compared to Rs.2,264 million

during the preceding year.

According to results announced the

earnings per share (EPS) of the PNSC

(Group) is Rs.42.75 as against Rs.17.14

in the comparable period last year.

PNSC has declared dividend of Rs.5 per

share (50%), which is also the highest

ever in the history of PNSC.

Cumulatively, the Group

achieved a turnover

of Rs.27,714 million as

compared to Rs.12,789

millionfor the same

period last year. The

major increase seen in

revenue was from Liquid

Cargo which increased

by Rs.10,641 million

considering the increase

Pakistan Ship’s Agents Association

(PSAA) was formed in 1976 and is the

largest and oldest Trade Association

representing Shipping Lines/Agents

whose 54 members handle all types of

cargo, i.e. containerized cargo, liquid

cargo and dry bulk cargo at Pakistani

seaports.

PSAA’s main objective is to resolve

problems its members face and make a

positive contribution to the long-term

progress of the Ports and Shipping

industry in Pakistan.

PSAA enjoys a high reputation at all

official levels, including the Ministry

of Maritime Affairs (MOMA), Karachi

Port Trust (KPT), Port Qasim Authority

(PQA), Gwadar Port Authority (GPA),

Customs, FPCCI, etc.

Its members are

represented on several

high-profile committees

formed by the Federal

Government from time to

time at MOMA, KPT, PQA,

GPA, KDLB, Planning

Commission, etc.

of Rs.4,358 million from

owned oil tankers followed

by increase of Rs.6,283

million from foreign flagged vessels.

The Dry Cargo segment (including slot

charter) increased by Rs.4,266 million.

The Bulk Carrier revenue increased

primarily due to the increase in average

Charter Rates and hike in average BDI

as compared to last year.

The PNSC managed fleet comprises

of eleven (11) vesselsof various types

/size (05 bulk carriers, 04Aframax

tankers and 02 LR-1 clean product

tankers).Subsequent to the year end,

PNSC procured two (02) Aframax

vessels which resulted in an increase of

total deadweight tonnage (DWT) to

1,045,657 metric tons

which isalso the highest

ever carrying capacity

since PNSC’s inception.

Moreover, PNSC plans to

enhance its fleet further

by purchasing more

vessels in the coming

financial year.

Rear Admiral Jawad Ahmed,

assumed Chairman PNSC

Rear Admiral Jawad

Ahmed, SI(M)

has assumed the

charge of the post of

Chairman Pakistan

National Shipping

Corporation

with effect from

30thSeptember, 2022. The PNSC Board

of Directors in a meeting earlier ratified

the nomination of Rear Admiral Jawad

Ahmed, SI(M) as Chairman PNSC, as

notified by the Establishment Division

and Ministry of Maritime Affairs

notifications.

PNSC Board welcomed him and

assured full cooperation and support

for the organization. Further, Mr. Asad

Chandna, as ex-Officio, Additional

Secretary, MOMA, Ms. Alia Shahid, as

ex-officio DG Port and Shipping, Mr.

Anwer Sheikh, as ex-officio, Additional

Secretary (Corporate Finance),

Finance Division have joined as new

Board Members on the PNSC Board

of Directors and also attended the

aforesaid PNSC Board Meeting.

New goods clearance rules

The customs department has proposed

new rules for the self-clearance of

goods at ports without using customs

agents. A customs notification

SRO1764 was released recently to get

feedback from all stakeholders. The

notification seeks feedback within 15

days of the publication of the draft

amendments.

“Any objections or

suggestions which

may be received

from any person,

before the expiry of

the aforesaid period,

will be taken into

consideration by the

Federal Board of Revenue,” stated the

notification. Under self-clearance,

a person or his employee, or his

authorised representative, transacts

customs business without using a

customs agent. However, this will be

subject to all procedures notified in the

notification.

9


TRADE CHRONICLE Sep - Oct - 2022

IMO Events – World Maritime

Day 2022 held in Karachi

Director General Ports and Shipping,

Ministry of Maritimes, Govt of Pakistan,

Alia Shahid and other dignitaries of the

shipping industry have attended the

World Maritime Day 2022 mega event

held in Karachi recently.

Ajmal Mahmoodi, Chairman,

The Nautical Institute – Pakistan,

stated that it is an important event

celebrated globally to provide an

MARITIME STRATEGY IN PAKISTAN,

Capt. Muhammad Adeel Farooq, MSQ

Superintendent, Global Radiance

Group of Maritime Companies,

Alia Shahid has assured full support of

the ministry for maintaining a clean

shipping environment and other help

as required for the seafarers.

Keeping its tradition of celebrating the

WORLD MARITIME DAY for more than

three decades, The Nautical Institute,

UK – Pakistan Branch, in collaboration

with The Institute of Chartered

Shipbrokers, Pakistan chapter – and

The Chartered Institute of Logistics &

Transport, Pakistan, organized a oneday

seminar to celebrate IMO World

Maritime Day 2022.

Pakistan – 75th anniversary; Diamond

Jubilee of Independence, making

this year’s celebration unique for

the Pakistan branch of international

maritime organizations.

The theme for the year 2022, as

approved by the council of the

International Maritime Organization

(IMO) was:

IMO: new technologies for greener

shipping

The event celebration comprised

three sessions attended by wellknown

maritime national and foreign

professionals, entrepreneurs, maritime

students, Pakistan naval officers and

Government officials. International

participation via Zoom Meeting was

arranged, and the event was attended

on Zoom.

The first – Inaugural session

commenced with reciting the holy

Quran, followed by the speech of

Maritime Industry officials.

HE KITACK LIM, Secretary-General,

International Maritime Organization,

a video message was displayed.

Captain Andre L. Le. Goubin, President

of The Nautical Institute, presented the

Presidential address.

During his keynote address, S. M.

opportunity to focus on and value the

shipping and maritime industry. He

thanked all for coming and attending

this mega event.

At the end of the first session, ‘The

Beacon of Maritime Award’ was

presented to ten senior maritime

professionals who devoted their

lives to uplifting Pakistan’s maritime

community. A special committee

of PMNOA selected the nominees,

and the Global Radiance Group of

Companies sponsored the award.

The inaugural session concluded with

the presentation of mementoes and

group photos.

The Second – Technical Session was

rapporteur by Captain Ali Asghar. In

the session, 7 papers were presented

by a different segment of the maritime

industry.

Captain Saleem Alavi, President of

Sea Commerce America Inc, USA,

presented his paper on Alternative

Marine Fuels: Focus on Methanol as

GHG friendly alternative fuel for the

transport industry,

Simon Grainge, Chief Executive,

ISWAN- UK, presented his presentation

on International Seafarers Welfare &

Assistance Network,

EMRE CEBECIOGLU, Sales Manager

MEAI Region WARTSILA VOYAGE, gave

his presentation on Wartsila Smart

Ports Solutions,

Gary Hindmarch, Secretary

International Association of Maritime

Institutions-UK, presented his paper

online on Maritime Training for green

technologies,

Eng. Hamid Ali Khan, President,

Pakistan Merchant Navy Officers’

Association, presented his paper on

10

presented his paper on Audacious

strategy to reduce GHG emissions

in the shipping sector, and in the

end last paper by Ayesha Masood

Khawaja, Executive Director SeaCare

Pakistan (Private) Limited on the NEW

TECHNOLOGIES FOR GREENER

SHIPPING

The chair summed up the session and

appreciated the speakers’ valuable

papers.

The third – Closing session was

attended by participants with their

spouses. During the welcome address,

Sardar Yasin Malik, Chief Patron CILT

Pakistan Territory, highly appreciated

the organizers for successfully

conducting this mega event.

Capt. S. M. Ajmal Mahmoodi,

Vice President of Nautical

Institute, presented the seminar’s

recommendations.

Chief guest of the session, Vice Admiral

(R) Khan Hasham Bin Saddique HI(M)

Managing Director, Bahria Foundation,

addressed the gathering, expressed his

thoughts about the importance of this

industry and witnessed the efforts to

organize such a mega event.

Capt. Asim Iqbal, a member organizer

committee, talked about Green

shipping and recycling of the ship

breaking industry, the upcoming

convention implemented in 2023

for recycling of ships applicable in

the Gadani Shipbreaking yard in

Balochistan.

At the end of the closing session, Capt.

Rashid Anwar, Principal, Maritime

Training Institute, thanked sponsors

and partners for their support and

for making this event a success. He

also thanked all for coming and

participating in the event.

A Chronicle Report


TRADE CHRONICLE Sep - Oct - 2022

Hutchison Ports network donates

$250,000 for flood victims

The country’s first deep-water

container terminal, Hutchison Ports

Pakistan along with Hutchison Ports

KICT have jointly donated $250,000

to support the flood relief efforts in

Pakistan.

The relief package includes donations

to the Prime Minister’s Flood Relief

Fund 2022, Rangers Welfare and

Efficiency Fund, and Akhuwat.

Gwadar varsity, PMSA ink

deal for collaboration

The University of Gwadar and

Pakistan Maritime Security

Agency (PMSA) recently signed a

Memorandum of Understanding

(MoU) for collaboration in curriculum

development on maritime affairs and

internship programme for students of

the Gwadar university at the PMSA.

Vice Chancellor of University of

Gwadar and Deputy Director General

of PMSA Rear Admiral Aamir signed

the MoU under which the university

will introduce maritime affairs as

an academic course to its all degree

programmes and the PMSA will

PQA plans port terminals

Port Qasim Authority (PQA) intends

to acquire Engineering Consultancy

Services of consultants having foreign

associates for establishment of

new state-of-the-art port Terminals

(Two Multipurpose Cargo and One

Integrated Container) at Port Qasim.

The Consultants will provide services

complete in all respect including

but not limited to prepare the

conceptual layout plan including the

planning / basic design parameters,

prequalification

documents,

project guidelines, evaluation and

recommendation of pre-qualification

documents and Technical & Financial

proposals, assist in finalization of

Implementation Agreement (IA),

review of Manuals & Engineering

Head of Business Unit,

Hutchison Ports Pakistan,

Captain Syed Rashid Jamil,

and Head of Business Unit, Hutchison

Ports KICT CS Kim, presented the

donation cheques to Federal Minister

for Maritime Affairs, Faisal Sabzwari.

Syed Muhammad Tariq Huda,

Chairman of Karachi Port Trust (KPT)

was also present. The minister lauded

Hutchison Ports network’s generous

flood relief contribution while

receiving cheques for donations to the

PM Relief Fund 2022.

provide technical and logistic support

for the purpose.

Speaking on the occasion, Dr Sabir

said the university would soon make

its unique identity in the fields of

teaching and research related to

maritime affairs.

Earlier, Prof Dr Abdul Razzaq Sabir,

Vice Chancellor of Gwadar University,

and Dr Syed Manzoor Ahmed, Pro Vice

Chancellor University of the Gwadar

University, held a meeting with the

deputy director general of the PMSA

to discuss the academic collaboration

and joint research, particularly in the

field of maritime, marine and social

science.

Procurement

Construction (EPC)

documents to extent

of its compliance with

IA, vetting of design

/ drawings and detailed construction

supervision/monitoring/project

management and quality assurance of

implementation thereof including the

commissioning and final acceptance

of completion of the Two Multipurpose

Cargo and One Integrated Container

Terminals by PQA.

Interested firms are requested to

submit their Technical & Financial

proposals complete in all respects

as per format provided in the RFP in

the office of Director (Private Sector

Projects), Port Qasim Authority,

Karachi, Pakistan by 31st October,

2022.

11

PIBT pays a royalty of Rs.

3,396 mn to PQA in FY22

Pakistan International Bulk Terminal

Limited (PIBT) has released the

Company’s financial statements for

the year ended June 30, 2022. During

the year, the Company handled lesser

quantity of 8,243,495 tons of cargo

against 10,071,090 tons last year,

mainly due to the economic slowdown

in the country.

It’s worth mentioning that ~32% of the

Company’s revenue goes to Port Qasim

Authority (PQA) in terms of royalty

which amounted to Rs. 3,396 million

this year. Further, contribution to the

national exchequer in lieu of income

tax, sales tax and other government

levies amounted to Rs. 2,139 million

this year.

On the global front, commodity prices,

particularly coal, touched an all-time

high, coupled with increased freight

costs. Consequently, the local users

of imported coal switched to Afghan

coal due to the exorbitantly high price

of coal in the international market.

However, a simultaneous increase in

demand for imported coal has been

witnessed from the power generation

sector, which supported the Company’s

volume throughout the year.

The Terminal, dedicated to bulk

handling Coal, Clinker and Cement,

stands committed to providing

unparalleled services to its customers

at international standards of efficiency

and pollution control.

FINANCIAL MATTERS

During the year, the Company has fully

prepaid outstanding loans from local

banks amounting to Rs. 5,490 million

from the proceeds of new long-term

loans at economic terms as disclosed

in the Company’s financial statements.

During the year, the Company posted

a loss after taxation primarily due to

the impact of currency devaluation on

USD-denominated foreign loans.


TRADE CHRONICLE Sep - Oct - 2022

DP World plans an

industrial park in Pakistan

Dubai-based global logistics and port

terminal operator DP World working

at Port Qasim, is planning to set up an

industrial park in Pakistan to attract

global investors.

SPA signs $170m contracts to establish

new berths at Jeddah Islamic port

Saudia,

according to

a statement.

This will happen through the

deepening of harbor approach

channels, turning basins, waterways,

and the South Terminal basin.

Sheikh Sultan bin Sulayem, Chairman

DP World, said he was interested in

setting up industrial parks in Pakistan,

where there was no dearth of human

resource.

Sheikh Sultan arrived in Pakistan

recently to assess the scale of a climate

disaster that hit the South Asian

country after the onset of monsoon

rains in mid-June.

“The vision I have is to open industrial

parks in Pakistan which will be

equipped with modern infrastructure,”

he said. Sheikh Sultan said his

organization would provide food,

medicines, tents and anything that was

required for the flood-affected people

in Pakistan.

Maritime Affairs Ministry

donates Rs70 mn in PM

Relief Fund

Ministry of Maritime Affairs donated 7

crores to Prime Minister's Flood Relief

Fund recently.

Federal Minister for Maritime Affairs,

Syed Faisal Ali Subzwari met the Prime

Minister Shahbaz Sharif and presented

the relief cheque to him recently.

The Saudi Ports Authority, known as

Mawani, has signed two contracts

totaling SR642 million ($170 million)

to deepen and establish new berths at

Jeddah Islamic port.

The two contracts were signed with

contractors PC Marine Services and

Modern Building Leaders, the latter

in a consortium with Huta Hegerfeld

DP World to ease supply chain congestion

DP World added more than 23,000

nautical miles of new trade routes

across the globe in the first three

quarters of 2022, equivalent to a

complete circumnavigation of the

Earth. The new routes — connecting

the Americas, Europe, Asia and the

Middle East — are already opening new

trading opportunities for cargo owners,

providing better access to goods and

services for underserved populations,

and alternatives to globally congested

routes and ports across the globe.

Tiemen Meester, Chief Operating

Officer of Ports & Terminals at DP

World, said: “Our purpose is to make

trade flow. By bringing together our

world-leading capabilities in road, rail,

sea and ports, we’re able to provide new

trading opportunities that connect

cargo owners with their customers,

their products and wherever they are

Coal exports expands at KPT

To enhance the country’s exports, KPT

is maintaining close coordination

with exporters to extend all possible

facilities as per their requirements.

In this regard, KPT is paying special

attention to cement exporters, raising

Pakistan’s cement exports to as far as

the United States.

The upgrades will allow the arrival of

giant vessels that hold a capacity of

up to 24,000 twenty-foot equivalent

containers, and will enhance the port’s

competitive capability and attract new

global shipping lines to local shores.

The contract with PC Marine Services

will see new berths, measuring 16

meters deep and 1,100 meters long,

to receive large bulk grain carriers and

accommodate larger vessels to cover

the local market demand.

in the world.

“Our new routes

provide Central American fruit

suppliers access to Asia, the UK and

Western Europe, and African citrus

growers access to new markets in the

Middle East and South Asia.

The new routes are part of a concerted

effort by DP World to provide end-toend

logistics solutions, enabling the

seamless movement of goods from

the point of production to the enduser

through innovative technology

and global intermodal transportation

services across shipping, rail and road.

handled the

export of 125660

M/tons cement, a

48% increase from the last quarter. As

per the orders in the pipeline, these

figures are expected to grow further.

During the last quarter of the fiscal

year 2021-22, KPT handled 60109 M/

tons of cement. Whereas, during the

first quarter of the year 2022-23, KPT

12


TRADE CHRONICLE Sep - Oct - 2022

Muhammad Mehr Ali,

new Chairman PTA

Mr. Muhammad Mehr Ali of M/s.

Khawaja Tanneries (Pvt) Ltd.,

Multan, has been elected unopposed

as Central Chairman of Pakistan

Tanners Association (PTA), while Mr

Muhammad Shafi of M/s. Mateen

Brothers, Karachi, elected unopposed

as Senior Vice Chairman and Mr

Fazalur Rehman Shaikh of M/s.

Rehman Brothers & Company, Kasur,

elected as Vice Chairman of the Central

Executive Committee, PTA for 2022-23.

The members of the Central Executive

Committee of Pakistan Tanners

Association (PTA) elected for the years

2022-23 are as follows:

Mr Agha Saiddain, M/s. Royal Leather

Industries Ltd., Lahore, Mr Asdaque

Sultan, M/s. Sulco (Cemcentre),

Karachi, Mr Danish Naseem, M/s.

PFMA election 2022-23

result announced

Pakistan Footwear Manufacturers

Association (PFMA) has announced

that during AGM held on 30 Sep 2022,

Mr Mansoor Ehsan Sheikh of Xarasoft

(Pvt) Ltd has been elected as Chairman

of the association

for the period

from 01 Oct 2022

to 30 Sep 2023

(one year tenure).

MR. Mansoor

Ehsan Sheikh

( CHAIRMAN)

Similarly, Mr

Asad Malik

of Leathertex

Tanneries was

Senior Vice

Performance of two

shoes companies

Pakistan's two footwear manufacturing

companies listed on Pakistan Stock

Exchange (PSX) – Bata Pakistan and

Service Global Footwear Limited, have

announced their financial results for

Jan – June 2022 (Six months).

Bata Pakistan reports its net turnover

in Jan – June 2022 stood at Rs. 8.346

billion compared to Rs. 5.863 billion

MIMA Leather, Karachi, Mr Ejaz Ahmed

Sheikh,M/s. Bombal Leathers, Karachi,

Mr Irfan Iqbal, M/s. Nova Leathers

(Pvt) Ltd., Karachi,Mr. Muhammad

Tayyab, M/s. Riaz Tanneries, Kasur, Mr.

Muttaher Shafique Pasari, M/s. Pasari

ORG., Lahore, Mr Naveed Ahmed,

M/s. Pioneer International, Karachi,

Mr Tahir Mushtaq, M/s. Tauheed

International, Lahore, Tanveer Aslam

Chawla, M/s. Chawla Tanneries, Kasur,

Mr Waqas Shakil – M/s. Universal

Leather (Pvt) Ltd., Karachi, Sh. Saqib

Saeed Masood, M/s. Khas Industries

(Pvt) Ltd., Karachi and Sheikh

Muhammad Shafi, M/s. Pan Asia

International, Lahore.

Chairman, and Mr Hamza Hafeez of

Shafi Life Style was Vice Chairman,

respectively.

Executive Committee PFMA for the

period from 01 Oct 2022 to 30 Sep 2023

(1) Mr. Mansoor Ehsan Sheikh,

Xarasoft (Pvt) Ltd

(2) Mr. Asad Malik, Leathertex

Tanneries

(3) Mr. Hamza Hafeez, Shafi Life Style

(4) Mr. Zahid Hussain, Rafum

Industries

(5) Mr. Hassan Javed, Service Industries

(6) Mr. Hamid Hussain, SSC

Manufacturing

(7) Mr. Muhammad Ali, Shafi (Pvt) Ltd

(8) Mr. Muhammad Mehr Ali, Khawaja

Tanneries

for the corresponding period of last

year, showing a healthy growth of 42%.

Profit before tax during the current

period was Rs. 651.4 million compared

to Rs. 224.2 million last year. Profit after

tax was Rs. 384.851 million compared

to Rs. 130.353 million of the previous

year's earned operations for the six

months ended 30 June 2022.

Service Global Footwear Limited

(SGFL) recorded net sales of PKR

13

PTA on occasion said that the Leather

Sector of Pakistan is the vital exportoriented

Sector of the country being

core product and concluded the

export value of Finished Leather at

US$ 208.092 Million for the year July-

June 2021-22 with positive growth

percentage at 28.50% and the total

exports of Leather Sector reached

at US$ 953.707 Million this year and

looking for the landmark of US$

1 billion export of Leather Sector,

which is hopefully to be achieved

this landmark milestone shortly by

the Sector with vigorous efforts of the

Leather Exporters.

(9) Mr. Waqar Ahmed Paracha,

Universal Footwear

(10) Mr. Abdul Sami, Samad Rubber

(11) Mr. Muttaher Shafique Pasar,

Pasari Org

(12) Mr. Shakeel Ur Rehman, Leo Asia

International

(13) Mr. Talha Shafi, Oak Trading

(14) Mr. Faisal Mahmood, Rex

Machinery

4.83 billion in its financial statements

during the six months, showing an

increase of 58.35% from last year.

Profit before tax amounted to PKR

515.99 million against profit before

tax of PKR 223.56 million in the same

period the previous year.

Net profit after tax amounted to PKR

347.40 million against profit after tax of

PKR 145.09 million in the same period

last year.


TRADE CHRONICLE Sep - Oct - 2022

PTA participates in APLF ASEAN Show

Pakistan Tanners Association (PTA),

in collaboration with the Trade

Development Authority of Pakistan

(TDAP), has organised a Pakistan

Pavilion in APLF ASEAN Show held in

Bangkok from 19 – 21 October 2022.

Khawaja Tanneries

(Pvt) Ltd., Multan;

Siddiq Leather Works

(Pvt) Ltd., Lahore; Multan Hide Co.,

(Pvt) Ltd., Multan; Highway’s Creation

(Pvt) Ltd., Karachi; Jeaman Leather

& Leather Clothing, Karachi; Yousaf

Tanneries, Kasur; H.Sadar Ali Akhter

performances, and most importantly,

it symbolised an exciting start to the

event. According to the oragnsior,

the 3-day APLF ASEAN begins at the

Queen Sirikit National Convention

Centre, a new place to reunite old

faces, especially those from Asia Pacific

Region. “APLF is in Bangkok, at the

The participants from Pakistan

displayed their finest quality of valueadded

Finished Leather of all sorts of

Cow/Buffalo Hides and Goat & Sheep

Skins during the Fair in Bangkok,

Thailand.

Ali (Pvt) Ltd, Lahore; Unique Tanning

Industries (Pvt) Ltd., Lahore; Pelle

Classics, Karachi and Hussain Leather

Craft, Karachi are representing their

stands in the unique fair of ASEAN at

Bangkok.

heart of the ten-nation ASEAN region,

which will be a focal point for this trade

bloc’s leather and fashion sectors,”

says David Bondi, Director of APLF

and Senior Vice President of Informa

Markets Asia.

PTA’s member participated, includs

Indian footwear exports can be

increased by 10 times in near future

Indian Commerce and Industry

Minister Shri Piyush Goya! said that

India has immense potential in

footwear sector and can increase the

production and export ten times in

near future. He said this while virtually

addressing 'Meet at Agra-Leather,

Footwear Components. Technology

The 8 th Pakistan Mega

Leather Show 2023

Pakistan Tanners Associating (PTA) has

started initial work to organize the 8th

Pakistan Mega Leather Show scheduled

to be held from 1-3rd February 2023

at Lahore Int’l Expo Centre, Lahore.

PTA has asked its members to

consider participation positively

and convey their interest in

participation with the required

number of booths, as each booth

size would be 9 sqm duly equipped

Leather production

in Pakistan

Pakistan's leather industry produced

1.488 million sq m of finished leather

during July - June 2021 - 22, recording a

negative growth of 17.81 percent; if we

compare the figure of 1.811 million sq

m of July - June 2020 - 21, data released

The Opening Ceremony was lit with

Fait.

He added

that all

leading brands are

dependent for raw

material on India

He urged the

industry. prepare a plan so that Indian

brands with high value projects find

their way in the global market

under the shell scheme.

At the same time, further details with

the supply of Hall would be sent later

on for allocation of booths on a “first

come, first served” basis on receipt of

due payment of stand fee.

by the

Federal

Bureau of

Statistics

( P B S ) .

Experts

attribute a fall in export to high freight

costs, weaker demands and an increase

in the cost of production.

A Chronicle Report

Bangladesh leather posts

growth in export

The Bangladesh leather industry has

posted a double-digit growth of 20.87%

in the export of leather, goods, and

footwear in the first three months i:e

July – September 2022 of the current

financial year 2022-23 to US$327.97

million against US$271.34 million in

July - September 2021, according to the

Bangladesh Export Promotion Bureau

(EPB).

The breakdown shows that Bangladesh

received US$34.52 million on exports

of finished leather between July and

September 2022 compared to $31.96

million made in the same three months

in the last year, which shows a growth

of 8.01%.

However, due to local demands, sole

leather production increased by 4.76

percent to 176 tonnes against 168

tonnes in the fiscal year. The footwear

production also increased by 16.01 per

cent as the country recorded a figure

of 29.765 million pairs of shoes in July

2021 - June 2022 compared to 25.658

million pairs in 2020-2021.

14


TRADE CHRONICLE Sep - Oct - 2022

Flying to install 21MW

power plant for under

construction Line 2

Company Secretary of Flying Cement

Company Limited (FLYING) Shahid

Ahmad Awan has informed Pakistan

Stock Exchange (PSX) that the Board

of Directors of the Company, in their

meeting on October 03, discussed the

installation of 21 MW captive power

plants to meet the power requirement

of Line 2 at Lilla, in Punjab Province

of Pakistan. The Company has already

obtained NOC for its installation

from the Government of Punjab

Environmental Protection Agency.

According to Company's 3rd quarter

report (Jan –March 2022), Flying is

fully committed to completing its Line

2 expansion

project,

after which

a significant

rise in

profitability

a n d

financial ratios is expected to maximize

shareholder return. It is estimated that

the Company shall achieve its COD

later this year, after which the annual

cement production capacity will rise

from 1.197Mt to 3.510Mta.

Flying Cement's profit increased

during FY21-22

Meanwhile, Flying Cement Company

has reported that its profit after

taxation for FY 22 comes to PKR 924m

from a profit of PKR 143.6m earned

in the corresponding period last year.

The major increase in yield can be

attributed to higher net sales of PKR

53.36bn from PKR 32.05bn in the same

period the previous year.

The Company incurred higher

administrative expenses of PKR

75.9m against PKR 53.8m and higher

distribution expenses of PKR 14.5m

as opposed to PKR 10.7m in the same

period last year. The financial cost has

ballooned to PKR 115m from PKR 71m

during the comparative accounting

period.

Courtesy - CemNet

Pakistan cement industry

aftermath of floods

Sindh Chief Minister Murad Ali

Shah has stated that the provincial

government would start building

homes and other civil infrastructures

for flood affectees as soon the water is

receded in Sindh Province. The other

provinces will follow in their footsteps.

Furthermore, Pakistan’s top cement

manufacturers expect demands for

cement likely to pick up in 3-6 months

in the country as soon as the water

recedes and rehabilitating works are

started under aid from various foreign

countries and government allocation.

The federal government has already

shifted some funds from Public Sector

Development Programme to flood

affectees.

The recent floods have severely

impacted Pakistan, leading to massive

damage to the country’s physical

infrastructure, including homes, roads,

bridges, crops, etc. As per National

Disaster Management Authority

(NDMA), a cumulative loss of 1.76m

houses (Partially and Fully Damaged),

390 Bridges and Roads (distance of

12,718km) has already taken place till

Sep 14, 2022.

Topline Research surveyed Pakistan’s

Kohat Cement's profit increased

by 43.66 percent in FY21-22

Pakistan cement producer – Kohat

Cement Company Limited (KOHC) has

announced an increase of 43.66 per

cent in its profit on a YoY basis during

its financial results for the year ended

June 30, 2022.

It reported a profit after tax of PKR

5.024bn compared to PKR 3.497bn

earned in the year's corresponding

period. The major factor responsible

for the increase in profit was growth in

sales.

leading cement manufacturers to

understand better the situation and

sector’s outlook after the floods.

These manufacturers cumulatively

represent 76 per cent of the total

industry size in terms of plant capacity.

The Research house outlook expects

a fall in cement dispatches in FY23.

It anticipates cement dispatches to

decline by 12 per cent in FY23, followed

by an increase of 11 per cent in FY24,

as the reconstruction of infrastructure

will result in increased demand for the

sector, especially when Federal and

Provincial governments will increase

spending in an election year. However,

cement prices remain flat during FY23

from the current levels as it would be

tough for manufacturers to increase

costs further, given the existing

economic environment.

Still, there are concerns about

planned capacities which could again

cause pressure on cement pricing.

But the Research house believes

that the planned capacities could

face delays, especially in greenfield

projects where the central bank had

imposed restrictions on the import

of machinery. Thus, the scheduled

capacities expected in FY23 and FY24

could be delayed to FY24 and FY25.

Courtesy - CemNet

IMS Research has added that

KOHC has posted impressive

gross margin and operating

profitability in 4Q (April – June

2022), majorly attributed to elevated

retention prices and better inventory

management.

According to a Company notification

to the Pakistan Stock Exchange (PSX)

on September 24, 2022. Its sales

increased 36,67 per cent to PKR

32.876bn from PKR 24.057bn during

this period. However, it incurred a

distribution cost of PKR 122m against

PKR 94m. The administrative and

general expenses stood at PKR353m

compared to PKR 313m in the year's

corresponding period.

The Company's Board of Directors

announced no dividend and bonus

shares on September 24, 2022.

15


TRADE CHRONICLE Sep - Oct - 2022

Fauji Cement reports profit

despite higher taxes in FY22

Pakistan's leading cement producer,

Fauji Cement Company Limited

(FCCL), has announced its financial

results for the year ended June 30,

2022, on September 20, 2022, by

declaring a net profit of PKR 7.113b,

which is increased by 105 per cent YoY

as compared to PKR 3.471bn earned in

the same period last year.

Company Secretary, in a regulatory

filing, has informed that The Board of

Directors has recommended issuing

Bonus Shares in the proportion of 12.5

Lucky Cement to install a 25.3 MW

solar power plant in Karachi

GM Finance and Company Secretary

of Lucky Cement Limited, FAISAL

MAHMOOD, informed Pakistan

Stock Exchange (PSX) on Sept 14 that

following considering the feasibility

study for a renewable energy project,

the Company has entered into an

arrangement with Orient Energy

Systems (Private) Limited for the

supply and installation of 25.3 MW

captive solar power project at its

D.G. Khan Cement earns a lesser

profit of PKR 2.972bn in FY21-22

Pakistan’s leading cement producer –

D.G. Khan Cement Company Limited

(DGKC), announced the financial

result for FY22, posting a profit after

tax (PAT) of PKR 2.972bn (EPS: PKR

6.78) compared to PKR 3.721bn (EPS:

PKR 8.49) in the same period last year

(SPLY), depicting a decline of 20 per

cent YoY, says notification of Company

to PSX on Sep 13.

However, during

4QFY22 (April-

June), the

company recorded

a loss of PKR

647m (LPS: PKR

1.48) against a

PAT of PKR 873m

(EPS: PKR 1.99) in

4QFY21. According

shares for every 100 shares held,

i.e. 12.5%.

Net Sales of the Company during

the year spiked by 123 per cent to PKR

54.24bn from PKR 24.27bn compared

to the previous year's period. The

administrative expenses increased to

PKR 1.29bn from PKR 524m during

this comparative accounting period.

It incurred a distribution cost of PKR

539m against PKR 189m in the same

period last year. The income tax

expenses jumped to PKR 4.412bn from

PKR1.633bn.

IMS Research has added that FCCL has

registered decent full-year earnings

Karachi plant.

The estimated project cost

is PKR 3bn, and the Company

is in the process of establishing LCs to

import equipment which is subject to

receiving approval from the SBP. The

project is expected to be completed in

approximately eight (8) months after

the establishment of LC.

The Company expects the solar project

to be in addition to the announced 34

MW captive solar power project with

a 5.589 MW Reflex energy storage at

the Company's plant in Pezu, Lakki

Marwat.

The Company's initiatives for

investment in renewable energy

to AHL Research, the loss

incurred during the fourth

quarter was primarily due to

the recognition of super tax

and the impact of deferred tax liability.

During 4QFY22, the company’s

dispatches declined 21 per cent QoQ

to 1.3Mt, while total dispatches during

FY22 declined by 10 per cent YoY to

6.5Mt versus 7.2Mt in FY21, report

another research house, AHCML

Research. Alongside the result, the

company announced a PKR 1.00/share

dividend.

Net Sales of the Company increased

by 29 per cent during the year to PKR

58.04bn from PKR 45.10bn during this

period. The administrative expenses

increased by 16 per cent to PKR 751m

compared to PKR 647m in the same

period last year. It incurred a lesser

distribution cost (about 10 per cent)

16

after the amalgamation of Askari

Cement. In the future, it believes that

higher synergies, coupled with the

early expansion of Askari Cement, will

increase the market share and elevate

the company's overall profitability, the

analyst predicted.

projects will play a key role in cost

savings and reduction of the country's

reliance on imported fuel; officials

pined hope with these projects.

Sales in FY22

The Company's domestic sales

decreased 0.3Mt to 7.3Mt in FY22,

down by 3.9 per cent. The export sales

volumes of the Company decreased

by 0.6Mt to 1.8Mt in FY22, down by

25.5 per cent due to an increase in

input costs, political and economic

uncertainty in Afghanistan and Sri

Lanka, and high freight costs globally.

It exports to Bangladesh, Srilanka,

Madagascar, Other regions of Africa,

Afghanistan, China and countries.

of PKR 1.75bn against PKR 1.95bn in

the same period the previous year. The

financing cost rose to PKR 3.571bn

from PKR2.921bn, up by 22 per cent

YoY basis.

According to IMS Research, the massive

jump in tax rate and other expenses

have led DGKC to book a quarterly

loss for the first time since 1QFY21.

However, if we ignore these one-offs,

the company has posted a decent gross

margin, despite the burgeoning cost

pressures and flattish export prices (on

a QoQ basis).

Moving ahead, lower dispatches amid

monsoon rain, recent floods and

elevated coal prices may hurt DGKC’s

margins in 1HFY23. But, in 2HFY23,

analysts believe demand recovery

and higher cement prices will revive

profitability.

A Chronicle Report


TRADE CHRONICLE Sep - Oct - 2022

Local and export dispatches

fall during Sep in Pakistan

Pakistan's cement

industry has recorded

a fall of 6.83 per

cent in dispatches

during September

2022, when total

cement dispatches (local and exports)

shrunk to 4.276Mt from 4.589Mt of

the same month of last fiscal year, says

data released by All Pakistan Cement

Manufacturers Association (APCMA).

The breakdown shows that local

dispatches slide by 5.33 per cent to

3.80Mt from 4.01 million and exports

by 17.35 per cent to 472,437t from

571,613t during this period of YoY.

Giving reason for the negative trend,

a spokesman of APCMA expressed

serious concerns over strict limitations

on establishing a letter of credit by the

State Bank for spare parts and other

machinery. The government must relax

conditions for opening a letter of credit

immediately as, without spare parts,

cement factories will face difficulties in

running their operations.

Bestway lights up its kiln

at Mianwali plant

Bestway Cement Limited, Pakistan’s

2nd largest cement manufacturer

with an annual production capacity of

10.8 million tonnes, achieved another

milestone. On Oct 20, the company

lit up its Kiln with 7,200 tonnes per

day clinker capacity at its Greenfield

Mianwali plant.

A simple ceremony was held at the

plant premises to mark the occasion

which was attended by the Chairman,

Bestway Group, Sir Mohammed Anwar

Pervez OBE HPk, the Group’s CEO,

Lord Zameer M. Choudrey CBE SI Pk,

Bestway’s senior officials and delegates

from the plant suppliers, Sinoma.

Sir Mohammad Anwar Pervez OBE

HPk cut the ribbon to inaugurate the

lighting up of the Kiln.

Speaking on the occasion, Bestway

Group’s CEO, Lord Choudrey, said “it’s

a proud day for the company. Our new

Greenfield production line at Mianwali

has been set up in a record time of less

than 18 months from establishing the

L/C to lighting up the Kiln. This has

been achieved despite various hurdles

and supply chain disruptions caused

by Covid-19.

This beats our own previous record

of setting up greenfield plant in 20

months. By virtue of Mianwali plant,

Bestway Cement has now become

the largest cement producer in the

country. The state-of–the-art plant has

its own Waste Heat Recovery Power

Plant of 9MWs while work on setting

up of Solar Power Generation of 20

MWs has also commenced”.

Lord Choudrey further added that work

on the brownfield production line of

7,200 tonnes per day clinker capacity

at Hattar site was also at an advanced

stage and was likely to be operational

by March 2023.

17


TRADE CHRONICLE Sep - Oct - 2022

FF Steel launches 132kV Grid Station

FF Steel, one of the leading steel

manufacturers in Pakistan, has

achieved a new stage of growth by

being the first steel company in the

country to have two 132kV grid stations

in two separate units.

According to a press release, the

introduction of the new grid station in

one of the units of FF Steel in Lahore

will ensure that the production of steel

International Steels complete CRC

debottlenecking at CAPEX of PkR1.23bn

International Steels Limited (ISL)

organized its analyst briefing recently

to apprise investors of the FY22 result

and future outlook. To recall, ISL

announced the FY22 result, where the

company posted PAT of PkR5.4bn (EPS:

PkR12.44), down 27.5%YoY. ISL posted

PAT of PkR57mn (EPS: PkR0.13), down

98%YoY in 4QFY22. The company also

announced a final cash dividend of

PkR6.5/share in FY22:

Revenue increased by

11.0%YoY/31%YoY in 4QFY22/

FY22, mainly reflecting higher steel

prices which offset the decline in

offtakes (14%YoY) to 424K tons.

Galvanized sales clocked in at 240K

tons (-18.1%YoY), and Colled Roll

Coil (CRC) sales clocked in at 184K

tons (-7.5%YoY) in FY22. Local and

export sales showed impressive growth

of 31%YoY and 57%YoY in FY22,

respectively. Moreover, the company's

major export markets during FY22

AGHA result review: FY22 EPS @ PKR 3.07

Agha Steel Industries Limited (AGHA)

announced the financial result for FY22

recently by posting a profit after tax

(PAT) of PKR 1,855mn (EPS: PKR 3.07)

compared to PKR 2,036mn (EPS: PKR

3.37) in SPLY. During the last quarter

of FY22, the company posted earnings

of PKR 115mn (EPS: PKR 0.19), while

profitability for 4QFY21 arrived at PKR

438mn (EPS: PKR 0.72).

Result Highlights

During FY22, the topline of the

company underwent a growth of 29%

bars will be uninterrupted

in every manner while

helping the company attain

a greater share in the steel market of

Pakistan.

It is worth mentioning that this

achievement makes FF Steel get

were North America,

GCC, Asia, and the

EU.

Local industry volumes of flat steel

decreased by 15.4%YoY to 1.1mn tons

in FY22, comprising 535K tons of CRC

and 564K tons of both galvanized and

coated steel.

Management believes ISL is likely to

be the biggest supplier to the pipe

steel manufacturers, with approximate

market size of 200K tons in FY23.

Finance costs increased by a whopping

63%YoY in FY22 due to the policy rate

increasing from 7% to 15%, impacting

the bottom line.

During FY22, the CRC debottlenecking

project with a total CAPEX of PkR1.23bn

has successfully commissioned, and

the new capacity currently stands

at 400K tons vs 230K tons. Modified

skin passing capacity has also been

increased to 350K tons from 230K

tons. Furthermore, C and Z purlins

have successfully been commissioned

YoY, primarily

aided by a nearly

40% jump in the

prices of rebars and specialized billets.

In contrast, we believe volumes posted

a mild decline on a YoY basis. A similar

trend was witnessed in the last quarter.

· Gross margins during FY22 settled

at 21.4% vs 22.7% in FY21 as the

company sold a lower quantum of wire

rods / specialized billets (high-margin

products) coupled with higher scrap

prices, PKR depreciation, and a higher

energy tariff. During 4QFY22, the dip

in margins was much sharper (17.6%

against 30.6% in SPLY and 23.2% in

its name among the elite group,

comprised of about 10 companies that

have 2 of their own grid stations at

different units.

FF Steel has focused on innovation and

constant growth with stability, since its

inception. The company has a vision

for setting benchmarks in the steel

industry in regards to the production

processes, digitization of internal

procedures and also in terms of the

sales.

at the service centre and have started

commercial production.

Going forward, the completion of

debottlenecking in CRC finishing

capacity has enabled the company

to cater to larger domestic demand

for white goods and additional

demand from pipe manufacturers.

Furthermore, additional CRC capacity

will also help ISL to increase CRC’s

contribution to the export sales mix

from 20% to around 40-50% in the

coming years. Hence, management

also foresees robust export growth

(total export sales: PkR18.7bn

(+57%YoY) in FY22) to continue in

FY23, where ISL is expected to export

to major countries across the globe.

Courtesy - AKD Research

3QFY22) as the price hike remained

insufficient due to existing long-term

contracts to passing on the impact of

higher scrap prices, PKR depreciation,

and a higher energy tariff.

· Finance costs displayed a jump

of 52% YoY in FY22 to PKR 2,136bn,

attributable to a sharp hike in the

benchmark policy rate by the SBP

during the year.

· The company booked effective

taxation at 45% during 4QFY22 on

account of super tax.

Courtesy - AHL Research

18


TRADE CHRONICLE Nov Sep - Oct Dec - 2022 2021

Kamran Tessori sworn in

as Sindh Governor

Muhammad Kamran Khan Tessori,

better known as Kamran Tes sori, took

oath as the 34th Governor of Sindh

recently.

Sindh High Court Chief Justice Ahmad

Ali M. Sha ikh administered the oath

of office to the new incumbent in

a ceremony held at the Governor’s

House, which was also attended by

Sindh Chief Minister Syed Murad

Ali Shah, members of the provincial

cabinet, MQM-P leaders, businessmen

Ishaq Dar takes oath as

new Finance Minister

Ishaq Dar has taken oath as Pakistan’s

new Finance Minister a day after he

was sworn in as a member of the

country’s parliament.

President Arif Ali recently administered

the oath of office to the veteran

politician during a brief ceremony

in the capital Islamabad. This is the

fourth time Dar, aged 72, has been

given the portfolio.

and other city notables.

Tariq Yousuf elected as President, Touseef

Ahmed as SVP, Haris Agar as VP of KCCI

The Managing Committee of Karachi

Chamber of Commerce & Industry

(KCCI), unanimously elected

Mohammad Tariq Yousuf as President

(KCCI) for 2022-23 while Touseef was

also elected as Senior Vice President

KCCI and Mohammad Haris Agar as

Vice President.

It is pertinent to mention here that the

Businessmen Group (BMG) has been

constantly winning KCCI’s election

Syed Jawaid Iqbal elects as

the new Chairman of PAA

Syed Jawaid Iqbal of CMC

(Pvt) Ltd. has been elected

(unopposed) as Chairman

of the Pakistan Advertising

Association (PAA), the

sole body representing

the advertising profession and allied

sectors on a national level. Others

elected (unopposed) include Brig (R)

In a brief interaction with the media,

Governor Tessori vowed to meet all

expectations and fulfil the duties that

he has been entrusted with.

“I will definitely make every possible

effort to play my role as mandated by

It also comes at a time when Pakistan

is recovering from devastating floods

that killed more than 1,600 people and

destroyed homes, crops, roads and rail

networks.

In remarks made after taking the oath,

Dar outlined his priorities. “We will

control inflation. We will bring interest

rates down,” he told reporters.

Dar, a chartered accountant by

profession, was given the position

after the resignation of his predecessor

since past 25

years, which

clearly indicates

the overwhelming

support of the Business & Industrial

community of Karachi. BMG has

undoubtedly succeeded in restoring

the trust and confidence of the entire

Muhammad Zubair Rehan (Creative

Junction) as Senior Vice Chairman

and Mr Jawad Humayun (Channel 7

Communications) as Vice Chairman.

Mr Fahd Khan (Manhattan

Communications) has been elected

as Chairman Zone “A”, Mr Usman

Attique Butt (Interlink Advertising) as

Chairman Zone “B”, and Mr Nadeem

Kabir Alvi (Oktopus 360 Media) as

Chairman Zone “C” while Mr Javed

the Constitution of Pakistan. Whether

it’s the problem of the province or its

people, you will find me raising my

voice at every relevant forum.”

An enigmatic figure, Mr Tessori came

into the political limelight from the

platform of the Pakistan Muslim

League Functional (PML-F) when

the party was a key ally of Gen Pervez

Musharraf and Arbab Ghulam Rahim

was the Sindh chief minister between

2004 and 2007. Despite enjoying no

official status, Mr Tessori was known as

an influential figure under the PML-F

regime.

Miftah Ismail, who was Pakistan’s fifth

finance minister in about four years.

Business & Industrial community due

to its transparent policy of ‘Public

Service’ which was strictly followed

by all the Office Bearers during their

tenures under the guidelines of

Chairman BMG.

The newly elected Office Bearers

vowed to dedicatedly discharge their

services up to the expectations of BMG

Leadership, KCCI members and the rest

of business & industrial community.

They assured that no stone will be left

unturned to achieve various objectives

of the premier Chamber.

Qadeer Khan (Marksman Advertising)

as Secretary Finance.

Also elected as members of the Central

Executive Committee (CEC) are Mrs

Seema Jaffer (Bond Advertising), Mr

Khalid Rauf (Lowe & Rauf), Mr Ahmed

Jamal Mir (Prestige Communications),

Ms Faiza Nadeem (Vantage Media),

Ms Neesha Dara Khan (Manhattan

International) and Mian Mobeen

Shafaat (Oak Media).

19


TRADE CHRONICLE Sep - Oct - 2022

SAI elects new office-bearers

Riaz Uddin, Abdul Kadir

Bilwani and Muhammad

Hussain Moosani

have been elected

unopposed as President,

S. Vice President and Vice President

respectively of SITE Association of

Industry (SAI) for the year 2023.

President-elect Riaz Uddin thanked the

members of SAI for posing confidence

on him to represent the oldest and the

largest Industrial base in the country,

founded by Quaid-e-Azam in 1947,

which has the largest contribution in

both federal and provincial revenue,

cesses & levies and in creation of jobs.

Riaz Uddin outlined his priorities for

taking up the impending issues facing

the industries in SITE area notably

that of dilapidated infrastructure, lack

of availability of basic utilities i.e. gas,

water and electricity, non availability

of transportation for masses, last but

not the least the law & order situation

prevailing everywhere in the city.

On the occasion Riaz Uddin

remembered the founding Chairman

BMG (late) Siraj Kassam Teli and

lauded his memorable service for

the cause of industries in Karachi. He

further thanked the senior leadership

team of BMG; Jawed Bilwani Vice

Chairman BMG and Majyd Aziz former

President SAI and KCCI; Abdul Hadi

former President SAI.

PAMA names Chairman

General body of the Pakistan

Automotive Manufacturers Association

(PAMA) has elected Saquib H. Shirazi,

president and CEO Atlas Honda, as

new chairman of PAMA for the year

2022-23, a statement said recently.

Sohail Bashir Rana,

executive director at Millat

Tractors and Masafumi

Harano, managing

director at Pak Suzuki

Motors have been elected as senior

vice Chairman and vice chairman,

respectively, along with other members

of the executive committee. It’s for third

time that Saquib H. Shirazi has been

elected PAMA chairman. He is part of

the Atlas Group, a leading player in the

automotive sector with a presence in

both original equipment manufacturer

and also in the auto part making.

Chela Ram Kewlani elected

REAP Chairman

Chela Ram Kewlani

has been elected

Chairman Rice Exporters

Association of Pakistan

(REAP) for the year 2022-

23.

All the candidates of REAP have been

elected unopposed in the annual

elections of Managing Committee

Members of Rice Exporters Association

of Pakistan (REAP) for the tenure of

2022-2024.

Atif Dada elected KCA Chairman

Muhammad Atif Dada, Humayun Zafar

and Rizwan Iqbal Umer were elected

unopposed as Chairman, Senior Vice-

Chairman and Vice-Chairman of the

Karachi Cotton Association (KCA) for

the year 2022-23 respectively.

Muhammad Atif Dada of M/s Dada

Sons (Pvt.) Limited has been engaged

in Cotton Business since two decades.

He is a prominent and well renowned

Exporter of Raw Cotton in Pakistan.

He has been elected as Chairman of

the Karachi Cotton Association several

times. He has also served as Member of

the Executive Committee, the KCA.

PHMA elects new office-bearers

Pakistan Hosiery Manufacturers and

Exporters Association (PHMA) has

elected new office-bearers for the

year 2022-23 including Muhammad

Women’s chamber elects

new President

Prominent businesswoman Rizwana

Asif has been elected unopposed as

Sheikh Abdul Razzaq

elected PVMA Chairman

Sheikh Abdul Razzaq has been

elected Chairman Pakistan Vanaspati

Manufacturers Association (PVMA) for

the year 2022-23.

According to an announcement of

the PVMA recently, Nasir Saleem and

20

Chela Ram Kewlani from Karachi has

been elected chairman, while Haseeb

Ali Khan from Sheikhupura elected

Senior Vice Chairman REAP, Habib ur

Rehman from Swat Vice Chairman and

Muhammad Noman from Karachi has

been elected Treasurer REAP for the

year 2022-24.

In addition, Muzammil Rauf, Mian

Ahmed Akbar, Muhammad Rafiq, Ch

Samee Ullah Naeem, Taufiq Ahmed

Khan, Usama Tariq, Usama Shafique,

Yasmin Ismail and Rizwana Sameen

has been elected as member managing

committee of the REAP 2022-24.

Humayun Zafar of M/s

Omnitrade Enterprises has

also been engaged in Cotton

Business since a considerable time.

He has been elected as Senior Vice-

Chairman, the KCA for the year 2013-

14, 2016-17, 2018-19 and 2020-21.

Rizwan Iqbal Umer of M/s Khudabux

Industries (Pvt) Limited has also been

engaged in Cotton Business since

a long time. He has been elected as

Vice-Chairman, the KCA for the years

2016-17, 2018-19 and 2020-21. He has

also served as Member of Executive

Committee, the KCA for the year 2015-

16.

Muhammad Babar Khan,

Naseer Ahmad Butt, and Khizer

Mehboob for central chairman,

senior vice-chairman, and vicechairman

respectively, a statement

said recently.

President of the Islamabad Women's

Chamber of Commerce and Industry

(IWCCI).

The annual general meeting of IWCCI

was held after which the election

results were announced in which

Rizwana Asif was elected as President

while Sonia Saleem was elected as SVP

and Sehrish Ahsan was elected as VP.

Muhammad Muneeb Monnoo were

also unanimously elected Senior

Vice Chairman and Vice Chairman

respectively for the year 2022-2023.

The Secretary General PVMA, Umer

Islam Khan, announced the final

results at 79th Annual General Body

Meeting of the Association at a local

hotel.


TRADE CHRONICLE Sep - Oct - 2022

Faraz-ur-Rehman elected unopposed

President of KATI for FY 2022-23

New office bearers

of the Korangi

Association of

Trade and Industry

(KATI) were elected

unopposed for 2022-

2023 in the annual

general meeting.

According to the

details, Faraz-ur-Rehman, a wellknown

businessman, was elected as

KATI President, while Nighat Awan

was elected Senior Vice President, and

Muslim Mohammadi was elected as

Vice President.

Patron-in-Chief of KATI SM Muneer

hoped that Faraz-ur-Rehman, Nighat

Awan and Muslim Mohammadi

PRGMEA elects new

office-bearers

Pakistan Readymade Garments

Manufacturers and Exporters

Association (PRGMEA) has elected

Mubashar Naseer Butt as its new

central chairman, Amir Lakhani as

senior vice chairman, and Waseem

Akhtar Kham as vice chairman for the

year 2022-23, a statement said recently.

The association has elected Butt for

second time as central chairman. He

Mian Ahmed elected as APSEA

Chairman unopposed

Mian Muhammad Ahmed has been

elected Chairman All Pakistan Solvent

Extractors’ Association (APSEA) for the

years 2022-23.

Jahangir Abdullah Rasheed and Dr

Kh Muhammad Saqib were chosen

unopposed to the positions of Vice

Ahsan elected new

MAP President

Muhammad Azfar Ahsan, founder

and CEO of Nutshell Group, has

been elected as new president of The

Marketing Association of Pakistan

(MAP).

Other office bearers elected to the MAP

this year include Saqib Saleem from Arif

Habib Investments as vice president

MAP, Jahangir Rasheed from Dalda

Foods as honorary secretary, and Asim

economy.

would play a key role in

developing the Korangi

Industrial Area and

the improvement of the

It may be noted that Faraz-ur-Rehman

is the son of Fazal-ur-Rehman,

founder, a long-time associate of KATI

Patron SM Muneer, and the brother of

former Chairman Farhan-ur-Rehman.

He became a regular member of

the KATI in 2003 and has served in

various capacities in the Pak-Vietnam

Business Council. At the same time,

the newly elected Senior Vice President

Nighat Awan has previously served as

the Vice President of KATI, whereas the

newly elected Vice President Muslim

Mohammadi has also served as the

Vice President in FPCCI.

was elected first in 2018-

19. Butt paid tribute

to outgoing central

chairman Shaikh Shafiq

Jhok Wala, senior vice

chairman Sheikh Luqman Amin and

vice chairman Muhammad Yaseen.

Speaking on the occasion, he said

high cost of doing business, issues of

market access, and the exchange rate

were hindering the country’s exports

growth. The government would have

to work on the issues in consultation

with the stakeholders, he added.

Chairman (Southern Zone) and

Vice Chairman (Northern Zone),

respectively.

Mian Muhammad

Ahmed, Jahangir

Abdullah Rasheed,

Shahid Ahmed, Mian M Jahangir

Muggoo, Mian Bakhtawar Tanvir

Sheikh were elected as Member

Executive Committee.

Shafiq from Abbott

Laboratories as

honorary treasurer.

Commenting

on the ocassion,

Ahsan said his

priority would be

to strengthen and

expand the platform

of the association across the country,

with induction of new members and

new chapters from genres of traditional

marketing and emerging digital space

alike.

21

PHMA elects Babar Khan

as Central Chairman

Pakistan Hosiery Manufacturers &

Exporters Association (PHMA) has

elected its office-bearers unopposed

for the term 2022-23.

Muhammad Babar Khan, Naseer

Ahmad Butt and Khizer Mehboob have

been elected unopposed as Central

Chairman, Senior Vice-Chairman and

Vice-Chairman, respectively for 2022-

23 period.

New Rangers Chief

assumes command

The new Director

General of Pakistan

Rangers Sindh, Major

General Azhar Waqas

recently assumed his

new responsibilities

as the head of the

paramilitary force.

Bakhtawari elected

President of ICCI

The nominated presidential candidate

of Founders Group, Ahsan Zafar

Bakhtawari has secured record 987

votes and achieved historical victory

in the annual election 2022-23 of the

Islamabad Chamber of Commerce and

Industry (ICCI).

In the annual election 2022-23 of the

Islamabad Chamber of Commerce and

Industry, the Founders Group won all

the seats of the executive committee

with a huge majority. Founders Group’s

presidential nominated candidate

Ahsan Zafar Bakhtawari set a record

by taking more 987 votes and the

turnout in the election was also a

record of more than 80%, in the history

of the chamber, no candidate has ever

received so many votes.

Speaking on the occasion, upcoming

President of ICCI Ahsan Zafar

Bakhtawari said that he will play

his full role in bringing Islamabad

Chamber of Commerce and Industry

to the international level and

connecting the business community

with international markets.


TRADE CHRONICLE Sep - Oct - 2022

Altaf Tai elected new

Chairman of ABAD

A leading builder and developer

Altaf Tai was elected Chairman of the

Association of Builders and Developers

of Pakistan (ABAD) unanimously for

the term of 2022-2023.

While Khawar Munir,

Nadeem Jeewa and

Raheel Rinch were

elected as Senior

Vice Chairman, Vice

Chairman and Chairman

Southern Region of the organization

respectively. Sultan Gohar was elected

as Chairman Northern Region and

Eng. Faraz Memon was elected as Vice

Chairman Hyderabad Sub-Region.

Qaisar elected new

PYMA Chief

Pakistan

Yarn

Merchants Association

(PYMA) announced

election of Sh. Khalil

Qaisar as new central

chairman of Pakistan

Yarn Merchants

Association (PYMA) and Sohail Nisar as

senior vice chairman for the year 2022-

23. Muhammad Jawed Khanani was

elected as vice chairman for Sind and

Balochistan region and Muhammad

Ramzan as vice chairman for Punjab

and KPK region, the association stated.

Other elected members of PYMA

executive committee from Sind and

Balochistan region include Adnan

Riaz, Rizwan Diwan, Munir Ismail, Bilal

Saleem, Omer Ahmed Shaikh, Ahmed

Munaf. Similarly, from Punjab and KPK

region, Syed Fahim Mehmood Shah,

Moazzam Ali, Humayon Qaisar, Habib

Ahmed, Khalid Masood, Muhammad

Sajjad and Muhammad Rasheed were

elected members of the committee.

Tahir Jahangir elected

Chairman of TMA for 22-23

Secretariat of this Association feels

pleasure to share that renowned &

veteran businessman Tahir Jahangir of

M/s Hala Enterprises, has been elected

unopposed for the Chairmanship of

TMA for the term of 2022-23 while Syed

Usman Ali of M/s Silver Textile, has

been elected as a senior vice Chairman

and Habib Anwer Shaikh of M/s Saad

Textile Mills (Pvt.) Ltd, elected as a vice

Chairman of the Association.

PHA elects office-bearers

Mustansir Zakir has been elected

Chairman, Mian Akram Farid as Senior

Vice Chairman, Faisal Qayyum Khan

as Vice Chairman North, and Abdul

Jabbar Rathod as Vice Chairman South

of Pakistan Hotel Association (PHA).

Mustansir Zakir has been elected as

Chairman, who is associated with

Hashoo Group for more than 25 years,

and is the CEO of Hashwani Hotels

Rasheed JanMuhammad elected

BQATI Chief unopposed

Abdul Rasheed Jan Muhammad has

been elected President Bin Qasim

Association (BQATI) for the years 2022-

23.

The Managing Committee elected

unopposed Abdul Rasheed Jan

Muhammad for the slot of President,

Usman Ahmed and Ashraf Bhawany

were elected unopposed to the

positions of Senior Vice President and

Vice President, respectively.

English Biscuit partners with Al Maya

Group to distribute products across UAE

English Biscuit Manufacturers (EBM),

the leading FMCG Company in

Pakistan, has collaborated with Al

Maya Group to expand its international

business to the United Arab Emirates.

This marks one of EBM’s largest

expansions in the Middle East and

promises to spread the joy of EBM’s

brands in the region.

EBM has a prolific international

footprint in over 30 countries and

a notable presence in the global

market, including the United States,

Canada, the UK, the Middle East, and

Africa. The journey of EBM’s product

to international markets reflects the

company’s commitment to R&D and

innovation.

For over 50 years, EBM has held

the largest production capacity in

Pakistan. This new endeavour enables

the company to remain a leader in the

FMCG sector both locally and globally.

Chief Executive Officer and Managing

22

Limited, the owners and operators of

Islamabad & Karachi Marriott Hotels

and Zaver Pearl-Continental Hotel

Gwadar.

Zakir is a fellow member of the Institute

of Chartered Accountants of Pakistan

(ICAP) and Associate Member of the

Institute of Cost and Management

Accountants of Pakistan (ICAM).

He has done his certification in

Hospitality and Strategic Management

from Cornell University, USA. Zakir

has remained Chairman and Executive

Committee Member of PHA in the

past as well, playing a vital role in the

hospitality sector on behalf of the

Pakistan Hotels Association.

Usman Ahmed, Ashraf Bhawany,

Naveed Shakoor, Mohib Moulvi,

Bilal Barkat, Muhmmad Imran

Panawala were elected to the

Managing Committee for the term

2022-2024.

Abdul

Rasheed

Usman

Ahmed

Ashraf

Bhawany

Director of EBM,

Dr Zeelaf Munir,

expressed her views

on the new journey

“Over the past years, we have provided

our customers and consumers, at

home and abroad, with innovative,

high-quality products. Our increasing

presence in the international market

is a testament to our commitment to

providing every consumer with healthy

& affordable nutritious brands.

By extending our supply chain to

the UAE with the largest distribution

network, we will be able to introduce

our innovative product range to new

consumers and provide overseas

Pakistanis with a taste of their

homeland.”


TRADE CHRONICLE Sep - Oct - 2022

Tyre smuggling causing Rs50bn

revenue loss to exchequer

Smuggling of new and used tyres into

Pakistan is threatening survival of the

local industry as up to 60 percent of

the country’s total trye market is met

through smuggled ones, dealing a huge

blow to the industry and government

alike, an industry official revealed to

media recently.

“Tyre is one of the top commodities

smuggled into Pakistan, thus ruining

the local industry badly and causing

huge losses of around Rs50 billion

to the national treasury,” said

spokesperson of GTR Tyre, one of

leading manufacturing units in the

Al-Ghazi Tractors launches 2023

models on its 40th Anniversary

To commemorate 40 successful years

of its existence, Al-Ghazi Tractors

Limited (AGTL) has introduced new

2023 models with high gloss paint

features for all New Holland tractor

variants.

The new 2023 models will be offered

for the following models: 480s, 480

Power Plus, Ghazi, 640, 70-56, and

Dabang. In addition, AGTL is going to

take the market by storm with a

special batch of New Holland's

Trademark Blue-colored

Tractors for the first time in

Pakistan.

The brand-new models will

enable farmers to have higher

yields, thanks to AGTL’s cuttingedge

technology for planting,

cultivating, fertilising, and

harvesting crops. The upgraded

variants are highly durable, fuel

and cost-efficient. The models

will also feature 2023 engraved

country.

He added that the total tyre

market of Pakistan was close

to 14 million (excluding motorcycle/

Rickshaw tyres). “Around 15 percent

of the demand is met through local

production and 25 percent through

imports, while the rest 60 percent are

smuggled.”

If that 60 percent smuggling was

controlled, the gap could be filled by

local manufacturers and legal imports,

he said.

The spokesperson was of the view

that smuggling had been unabated

because of lack of coordination

between the concerned authorities in

the government. He claimed that items

under guise of Afghan Transit Trade

(ATT) are either unloaded in Karachi

or come back from the Afghan border

via smuggling.

“The government should re-evaluate

data of the items being imported via

the ATT and see if the numbers of tyres

Chassis Plates.

Speaking at the 40th

anniversary of the company,

Malik Ehtisham, Chief Executive

Officer, AGTL, stated: “AGTL lauds

all of its devoted customers and

partners who have stood by it through

thick and thin over the years. We are

working towards making AGTL the

industry leader in the agriculture

equipment industry. AGTL is also

making significant investments in

technology to uphold the highest

standards in agriculture by providing

being imported are supported by the

vehicle population in Afghanistan,”

suggested GTR spokesman. Smuggled

tyres are transported from Dubai

either in containers or launches then

gets unloaded in Karachi from where

they are further distributed in different

parts of the country, according to the

official.

He emphasised that the customs

department should ensure that the

facility was not misused.

“The government should protect the

local industry and national treasury

from the damage caused by smuggling.

Effective measures have to be taken

to curb the smuggling to improve

the competitiveness of the local

industry and to provide equal business

opportunities.”

The company manufactures steel

belted tubeless radial tyres for cars

and light trucks while cross-ply tyres

for light trucks, buses, tractors, bikes,

rickshaws and OTR.

Media Report

our farmers access to state-of-the-art

tools and modern methodologies with

the help of our recently set up R&D

Department. We are using advanced

technology while adhering to the

vision of our shareholders to ensure

that AGTL becomes the benchmark for

others. We hope that our customers will

enjoy yielding with our ultra-modern,

cutting-edge, ever-dependable, and

robust tractors”.

All of AGTL's customers are also

eligible for a free servicing programme.

The customers can get their vehicles

serviced at their respective local

dealers.

Al-Ghazi is a joint venture of

the Al-Futtaim Group and

CNH Agricultural Machinery

Company. Its market share in

the tractor manufacturing and

sales industry of Pakistan stands

at 46% year to date. It also marks

the highest market share Al-

Ghazi has had in the last 14

years, which is a testament of

trust that our partners, farmers

and dealers have in us.

23


TRADE CHRONICLE Sep - Oct - 2022

Sales declined to 27 month low

of 11.0K units during Sep'22

As per the latest automobile sales

number by PAMA, auto sales showed a

decline of 6% MoM | 51% YoY to 10,953

during Sep’22, on account of i) a fall in

auto financing (down by 2.2% MoM),

and ii) higher car prices affecting

consumer affordability.

Besides, the measure taken by SBP to

curb imports are still intact; hence,

auto assemblers need prior permission

to import CKD units and raw materials

resulting in production limitations.

Further, PKR volatility and increased

international commodity prices

Atlas Group has achieved impressive

export sales during the last six months

Atlas Honda exported nearly 12,000

motorcycles while additional auto

parts of around US$ 2 million were also

exported by the group companies.

According to a statement issued by

the group, the breakthrough reflects

acceptability of Pakistan made auto

parts products in the international

markets.

“The company is looking at more

export markets for motorcycles and

parts in future. New parts and models

Indus Motor wins the prestigious MAP

Corporate Excellence Award 2022

At the 37th Corporate Excellence

Awards 2022 ceremony, hosted by

the Management Association of

Pakistan (MAP) in Karachi, Indus

Motor Company (IMC) won the Best

Corporate Excellence Award in the

Automobile Assembler Sector category.

The award, presented by Federal

Minister, Miftah Ismail, was received

by IMC CFO Mohammad Ibadullah.

The laurel recognizes IMC’s outstanding

performance while demonstrating

progressive management practices

in 2022. IMC has received the Best in

Sectoral Corporate Excellence Award

for the 7th time since 2010 and has also

won the Overall Industrial Corporate

Excellence Award four times.

Ali Asghar Jamali, the IMC’s Chief

Executive, said: “Excellence is more

than a set of year-end results; it’s a

remain a serious concern for

the Automobile sector. 1,300cc

segment and above portrayed a

setback in sales by (-17% MoM)

as Corolla and Yaris sales shrunk by

(-39% MoM). In addition, the sales of

Hyundai depicted a mammoth dip of

(50% MoM), when added up.

On the contrary, we witnessed a major

jump in 1,000cc segment sales by

(+95% MoM), led by the rise in Swift and

Wagon R sales, which elevated by 137%

MoM and 110% MoM, respectively.

INDU: INDU sales dipped by 32%, as

Corolla and Yaris sales shrunk by 39%

MoM to 1,780 units.

Atlas makes export breakthrough as it aspires

to enter Honda’s ‘Global Supply Chain’

are under

study for their

suitability

for export.

Evaluation criteria places special

emphasis on them having potential of

becoming part of the

global supply chain,”

said Afaq Ahmad,

representative of Atlas

Honda.

Afaq expressed hope

that the motorcycle

industry could

experience major

growth. This has

become possible

due to the high level

of localisation and

journey of

prevailing

attitude. It

is quite an

honour to receive this much

coveted award from MAP

once again, and for us, the

biggest contributor in this

crowning accomplishment

has been the “Toyota Way”.

This recognition signifies

IMC’s will, commitment, and

dedication to deliver on the

high expectations of all its

stakeholders consistently.”

The evaluation for the

Awards comprised four phases, i.e. (a)

shortlisting based on dividend payouts

during the last three years, (b) detailed

financial assessment, (c) review

of management practices, and (d)

management interviews. An impartial

third-party consultant was retained by

MAP to carry out the award evaluation

24

PSMC: PSMC sales augmented as it

portrayed an increase (of 52% MoM)

as consumers switched towards more

affordable cars.

HCAR: The dip in HCAR (by 29% MoM)

as Civic and City sales went down (by

16%) .

Tractors: The positive momentum

from last month remained short-lived,

registering a decline of 41% MoM to

2,349 in Sep’22. MTL remained a major

contributor to the decline as its sales

decreased by (-67% MoM).

and compile the results.

Courtesy - AHL Research

technology transfer from Japanese

companies like Honda, Hitachi, Denso

and GS Yuasa. The commitment to

quality, product reliability and focus on

enhancing exports remains a strategic

vision and mission for Atlas Honda.

The Corporate Excellence Awards was

instituted by MAP in 1982 with the

sole aim of recognizing and honouring

companies showing outstanding

performance and demonstrating

progress and enlightened management

practices.


TRADE CHRONICLE Sep - Oct - 2022

HBL partners with AICL to provide

dairy, livestock insurance

HBL and Adamjee Insurance Company

Limited (AICL) have collaborated

for providing livestock insurance to

clients. The insurance arrangement

will provide coverage of animal

mortality in addition to covering the

accidental death of the client.

This partnership brings a unique

insurance product to the industry i.e.,

“Working Capital Livestock Insurance

Scheme.” This product further

strengthens the HBL agriculture

portfolio by mitigating significant

risks and promoting greater financial

empowerment for the dairy and

NBP teams up with NGOs to

help flood-hit households

National Bank of Pakistan (NBP),

in collaboration with Thardeep

Microfinance Foundation and Rural

Community Development Program

(RCDP), has stepped up to provide

immediate aid to the vulnerable

communities in Pakistan by providing

water purifiers developed by PakVitae

to provide flood-affected households

access to clean drinking water.

livestock farming sector of

Pakistan.

Commenting on the occasion,

Habib Shah, Acting Head Agriculture

Banking – HBL, said, “Pakistan is the

fourth largest milk producing country

in the world. The agreement with AICL

will facilitate in improvement of the

dairy and livestock ecosystem through

independent and ISO certified labs

to meet the standards established

by the US Environment Protection

Agency (EPA), NSF International and

World Health Organization (WHO)

and removes bacteria, parasites,

microplastics and turbidity.

NBP President and CEO (A) Rehmat

Ali Hasnie announced additional

measures to provide relief to the flood

victims by contributing Rs 50 million to

the Prime Minister’s Flood Relief Fund.

the provision of insurance protection

to dairy farmers towards animal

mortality. HBL is the leading farmer

financing provider in the country and

is committed to enhancing financial

inclusion in rural Pakistan through

such partnerships.”

Syed Ahmer Shoaib, Deputy Executive

Director Commercial – AICL, said, “We

believe that this partnership will benefit

Pakistan’s dairy farmers by enhancing

their protection. The integration

of personal accident coverage of

farmers in the livestock insurance is a

benefitting value addition that actively

enhances the agricultural landscape of

Pakistan while adding to the stability

and sustainability of farmers.”

EFU Life wins ‘Consumers

Demand Award 2022’

EFU Life Assurance Limited, leading

private sector life insurance provider

in Pakistan, has been honoured with

the prestigious ‘Consumers Demand

Award 2022’ for Best Life Insurance

Company at the 16th Consumers

Choice Award 2021-22.

This was announced by NBP President

and CEO (A) Rehmat Ali Hasnie during

briefing reporters here recently.

The representatives of Thardeep

Microfinance Foundation and Rural

Community Development Programme

were also present on this occasion.

These Water Purifiers has patent

coverage in 82 countries and have

undergone rigorous testing by

The unprecedented rains and floods in

Pakistan have caused the devastation

of an enormous magnitude in various

parts of the country. Officials estimate

that more than thirty-three million

people have been affected, and more

than a thousand have lost their lives

due to flooding.

The Pakistani nation, civil society,

and humanitarian organizations are

continuing rescue and

relief efforts.

NBP President mentioned

that NBP has also launched

a digital payments

platform enabling people

across the globe and within

Pakistan to donate using

their preferred payment

method, i.e., Credit/Debit

Card, International bank

transfer, local bank Direct

debit, Wallets, ATMs, and

1Bill.

25

Zain Ibrahim, Senior Executive

Director and Chief Operations Officer,

EFU Life received the award on behalf

of the company from Asadullah Larik,

Additional Collector Customs Pakistan

and Guest of Honor for the event.

This is the 13th consecutive year that

EFU Life has been conferred with

Consumers Choice Award. The award

reflects the company’s customer -

centric approach, innovative products

catering to the evolving needs of

customers and the latest practices it

adopts for providing superior services.

Consumers Association of Pakistan

is a non-government, non-profit

organization set up in 2000 to protect

and educate consumers. It aims to

safeguard the interest of consumers

while ensuring that their needs are

given a higher priority.


TRADE CHRONICLE Sep - Oct - 2022

Silkbank, PSO sign

agreement

Silkbank with a leading stake in the

credit card market has entered into

an agreement with PSO to facilitate

Silkbank Mastercard credit card

customers who can now redeem their

reward points (Perks) at selected PSO

outlets nationwide.

The agreement to this effect was signed

on 19th August, at the PSO head office

and attended by senior management

officials of Silkbank and PSO.

The signing ceremony was attended

by Naveed Mushtaq Business Head–

Credit Cards / Head of Marketing &

Phone Banking, Nouman Butt Head

Alliances, Loyalty & New Initiative, and

Amir Zaib Khan, Acting GM Cards and

Non-Fuel Business at PSO.

Standard Chartered join

hands with IGI Life and EFU

Life for Bancassurance

Standard Chartered Bank

(SCBPL) signed a memorandum

of understanding with EFU Life

Assurance Limited and IGI Life

Insurance Limited. These partner

companies will deploy dedicated sales

staff at Standard Chartered branches

for cross-selling insurance solutions to

the Bank's client base.

The signing ceremony was attended

by Standard Chartered Pakistan’s

CEO - Rehan Shaikh, Head CPBB

- Saadya Riaz; and Head of Wealth

Management - Kailash Kumar, along

with Taher Sachak, CEO of EFU Life

Assurance Limited, Mohammed Ali

Ahmed, Deputy Managing Director

EFU Life, and Ali Nadim Deputy CEO

IGI Life Insurance Limited with their

respective teams.

UBL partners with NICK to host

BuiltByHer 3.0 Hackathon

United Bank Limited is partnering with

National Incubation Centre, Karachi

(NICK) to organise the BuiltByHer

3.0 Hackathon to address women’s

economic inclusion in Pakistan

whilst simultaneously promoting

science, technology, engineering and

mathematics (STEM) education.

Despite having an estimated

population of over 220 million, the

participation of women in Pakistan’s

local economy is impeded due to lack

of financial literacy and difficulty in

accessing financial services. Therefore,

it is imperative for leading businesses

to support endeavors that encourage

women empowerment.

BuiltByHer is a 48-hour long virtual

hackathon aimed at empowering

young women in creating

State Life and Dubai Islamic Bank to

offer innovative Takaful solutions

State Life Insurance Corporation

(SLIC), Pakistan’s largest life and health

insurer, has signed a Memorandum

of Understanding (MoU) with Dubai

Islamic Bank (DIB). This partnership

will enable both organizations to

offer hassle-free Shariah-compliant

UBL and NayaPay partner

As the demand for fast, secure and

simple digital payments across borders

continues to grow, UBL and NayaPay

have collaborated to enable users

in Pakistan to receive international

remittances from over 100 money

26

technological solutions to

address pressing developmental

challenges present within their

communities.

To commemorate the partnership, a

signing ceremony was held recently

and was attended by Sharjeel Shahid,

Group Executive-Digital Banking, UBL

and Omar Abedin, Project Director,

NICK alongside other senior members

from both sides.

Omar Abedin, Project Director, NICK

shared his excitement of partnering

with UBL and said, “Having an

organization like UBL committed to

creating a gender inclusive economy is

a game changer. With UBL’s expansive

reach and expertise in banking

technology, the participating teams

are bound to come up with some truly

innovative solutions.”

Speaking on the occasion Sharjeel

Shahid, Group

Executive,

Digital Banking

Group, UBL

said, “UBL has

always taken

pride in being a

progressive and

inclusive bank.

financial solutions to DIB

customers nationwide.

As per the agreement, SLIC

and DIB will jointly work on Life and

Health Takaful plans for Roshan Digital

Account (RDA) holders and collectively

market the product to other areas,

such as in the GCC market, SLIC has a

strong footing.

Moreover, this partnership will lay the

foundation for collaboration in other

areas, such as General Takaful for

assets, DIB employee health coverage,

treasury bills, and Sukuks etc., for DIB

customers. The signing ceremony was

held at DIB’s Head Office in Karachi,

which senior management from SLIC

and DIB attended.

transfer agents (MTOs) directly in their

NayaPay accounts.

NayaPay, a leading E-Money

Institution in Pakistan, enables users

to open E-money accounts on their

smartphones in a few simple steps and

take control of their finances.


TRADE CHRONICLE Sep - Oct - 2022

EFU Life listed among PSX

Top 25 Companies for 2021

EFU Life Assurance Limited, leading

private sector life insurance provider

in Pakistan, has been recognised in the

‘Top 25 Companies for the Year 2021’.

This is the third time that EFU Life has

been conferred with this award.

Insurance industry paid

claims of Rs189bn in 2021

The insurance industry (life/ nonlife

insurance companies) has paid

claims of Rs189 billion to the general

public during 2021 as compared to Rs.

170 billion paid in 2020, reflecting an

increase of Rs 19 billion.

The Securities and Exchange

Commission of Pakistan (SECP) has

released latest insurance industry

statistics for the calendar year 2021.

The insurance industry has 41 active

operators consisting of 30 non-life

insurers/ general takaful operators,

10 life insurers/ family takaful

operators and one re-insurer.

Out of the total gross premium of

individual life insurance industry

for the years 2021, 56% of the gross

premium pertained to the Punjab

followed by Sindh at 29%.

On the other hand, our of the total

gross premium of non-life industry

ABL enters into strategic

partnership with BPC

In order to further enhance customer

experience and to contribute toward

expansion of digital payments

ecosystem in the country, Allied

Bank Limited (ABL) has entered into

a strategic partnership with BPC

to introduce Merchant Acquiring

Services.

This solution will entail frictionless

merchant on boarding and payment

experience for customers

of ABL and other domestic

and international financial

institution from thousands

of merchant locations across

Pakistan.

The signing ceremony was

held at Allied Bank’s Head

Office, Lahore and was

The companies recognised have

outperformed others in the spheres

of corporate governance, financial

performance and have added to

shareholder value.

Every year, the Pakistan Stock

Exchange announces the names of

the twenty-five (25) leading, publicly

for the years 2021, 56% of the gross

premium pertained to the province of

Sindh followed by Punjab at 35% and

Federal 7%.

The statistics provide a comprehensive

view of the insurance industry to the

relevant stakeholders in a holistic

manner which will help them in

making informed policy decisions

related to the insurance industry,

through presentation of consolidated

insurance industry information.

During the year 2021, insurance

industry has written gross annual

premium of Rs. 432 billion as compared

to Rs. 355 billion in 2020, recording

attended by senior management

of both the organisations along

with officials of ABL Legal counsel

Mandviwala & Zafar Associates.

We are excited to partners with BPC

to start the merchant acquiring

business. This journey is evidence

of our commitment and ambition to

impact the payments ecosystem in

Pakistan. I believe this will enable the

businesses through innovation in POS,

eCommerce and QR solutions to grow

and expand further,” said Sohail Aziz,

Chief Digital Banking Officer at Allied

27

traded companies

based on specific

quantitative criteria

such as profitability

ratios, liquidity ratio,

turnover of shares

and corporate governance, to name

a few of the factors against which the

companies are selected.

year-on-year growth of 21.7%. Claims

paid during 2021 were Rs. 189 billion

(2020: Rs. 170 billion), out of which

Rs.136 billion worth of claims were

paid by the life insurance companies

and remaining Rs. 53 billion paid by

the non-life insurance companies.

Within the category of gross written

premium of life insurance and

family window Takaful operators,

the product wise distribution shows

83% of the premium pertained to

unit linked polices in private sector,

followed by health-related policies

at 8%. In public sector, 68% of the

premium comes from participating

policies followed by health-related

policies at 23 percent.

SECP Commissioner Sadia Khan said

that Pakistan’s insurance market holds

enormous untapped potential for

growth. She added that the sector is

rife with opportunities, for both local

and foreign investors, considering

the size of population in Pakistan and

the growing demand for affordable &

innovative insurance solutions.

Bank.

Ahson Saeed, Managing Director of

BPC Pakistan, commented “With

rapid growth in the adoption of

digital payment instruments such as

cards, wallets and QR codes, payment

acceptance is becoming a priority

for businesses and merchants as it is

convenient and improves customer

experience and retention.

Businesses today require ease,

access, affordability, transparency

and convenience of being

able to accept payments

digitally. By selecting BPC

and its SmartVista platform,

Allied Bank can be sure that

their business clients will

be able to accept payments

in addition to offer a userfriendly,

safe, and convenient

experience to buyers across

Pakistan.”


TRADE CHRONICLE Sep - Oct - 2022

PIA inducts another

A320 to its fleet

As part of its drive to add more aircraft

to its fleet, Pakistan International

Airlines (PIA) has acquired a narrowbody

Airbus A320 and it has arrived

in Islamabad, a spokesperson for the

national carrier said recently. With this

addition, the PIA now has 32 aircraft in

its fleet, including 13 Airbus planes.

Last year, the national carrier invited a

tender for acquiring four aircraft, out

of which three have already arrived

while the last one will arrive in the next

few days, the spokesperson added. The

first aircraft arrived earlier in April,

followed by the second in July.

The spokesperson said that the arrival

of new modern aircraft with improved

cabin facilities will help the airline to

provide better travel facilities to the

passengers.

The aircraft will be operated on

domestic, regional and Gulf routes.

PIA suffering Rs35bn-

Rs40bn loss annually: Saad

The Senate was informed recently that

Pakistan International Airlines (PIA)

is suffering a revenue loss of Rs35

billion to Rs40 billion annually due to

the irresponsible statement of former

aviation minister about the pilots.

“Fly Jinnah” releases the

painting video of its fleet

Fly Jinnah, Pakistan’s new low-cost

carrier (LCC), releases a timelapse

video of the livery painting of its fleet.

The video shows the full process of

painting the aircraft from start to

finish. The current full fleet of Fly

Jinnah, comprised of three Airbus A320

aircraft, have received a fresh coat of

paint reflecting the brand’s livery.

Fly Jinnah has received its Air Operator

Certificate (AOC) and Air Operating

License (AOL) Pakistan Civil Aviation

Authority (PCAA), and the airline

will start its operations from Karachi

Emirates appoints new

Regional Manager in Pakistan

Emirates has appointed Salem Al

Mana as the new Regional Manager for

Pakistan, with

effect from 1

November. This

comes as part

of the airline’s

management

rotations to

support its

commercial

strategies

and efforts

Minister for Aviation and Railways

Khawaja Muhammad Saad Rafique

told the House during the Question

Hour that a comprehensive business

plan has been prepared to bring

improvement in the national airliners.

He said that measures have been taken

to enhance the revenue of the national

flag carrier.

He said that three aircraft have recently

been inducted while one more will

soon be inducted in the airlines. He

said an activity has also been started to

install new seats in the PIA planes.

International Airport soon.

Lakson Group and Air Arabia Group

announced their decision to form a JV

airline in Pakistan in September 2021.

‘Fly Jinnah’ will follow Air Arabia’s

successful low-cost business model

and provide its customer base with a

reliable operation and value-driven

product.

in rebuilding its global network

amidst the increase in travel

demand and the easing of

restrictions. Salem was previously

Emirates’ Commercial Support

Manager – Indonesia since 2021.

In his new role, Salem will report to

Mohammed Alnahari Alhashmi, Vice

President – Pakistan and will help

Emirates respond to shifting market

dynamics in addition to strengthening

Emirates’ presence in the market and

driving growth. Wahid Albalooshi,

who was previously Regional Manager

Pakistan, will become District Manager

Riyadh.

has been conducted under which

profitable routes have been added.

The minister for aviation said the

government is also considering

to outsource airports, especially

Islamabad International Airport, to

operate them as per the international

standard.

Khawaja Muhammad

Saad Rafique

He said efforts are underway to resume

our flights to the UK and European

countries which is expected to bring

reasonable revenue to the PIA.

He said route rationalisation exercise

28

He said airports of Sukkur and D I Khan

will be given status of international

airports in view of their potential.

He said there is also a proposal

to introduce small jets to cater to

domestic passengers.


TRADE CHRONICLE Sep - Oct - 2022

Number of 3G, 4G users

increases in Pakistan

The number of 3G and 4G users in

Pakistan increased by 3.07 million

from 115.75 million by end-June

2022 to 118.57 million by the end of

July 2022, according to the Pakistan

Telecommunication Authority (PTA).

The number of cellular subscribers

in Pakistan increased by 0.68 million

to 195.26 million by end-July 2022

compared to 194.58 million by end-

June 2022. The teledensity for cellular

mobile increased from 88.34 percent

by the end of June to 88.61 percent by

the end of July. The total teledensity

increased from 89.53 percent by end

June to 89.8 percent by end July 2022.

PSO Cards and JazzCash signed digital

payment partnership agreement

JazzCash, Pakistan’s leading fintech,

partners with Pakistan State Oil,

Pakistan’s leading energy company,

to provide DIGICASH users payment

gateway and card top up facility via the

JazzCash app. This collaboration will

also enable JazzCash users to apply for

DIGICASH directly from their JazzCash

app.

PSO, pioneer in Fuel Card business,

revolutionized the concept of fueling

by launching the first ever Fuel card

in Pakistan in year 2002. The

company continues to lead the

way in cards and digital solutions

for its valued customers. With

launch of DIGICASH as its flagship

B2C card in 2019 and a number

of value-added offerings, PSO is

fast growing in digital payments

Cell phones worth $102m

imported in July, Aug

The Monthly Next Generation Mobile

Service (NGMS) penetration increased

from 52.55 percent by end-June 2022 to

53.8 percent in July 2022.

Jazz’s total count for 3G users declined

from 5.947 million by the end of June

to 5.838 million by the end of July,

registering a decrease of 0.109 million.

Jazz 4G user numbers jumped from

38.039 million by the end of June to

39.296 million by the end of July 2022.

Zong 3G subscribers decreased from

3.197 million by the end of June to

3.108 million by the end of July, while

the number of 4G users increased

from 28.906 million by the end of June

to 29.695 million by the end of July.

Telenor 3G subscribers decreased from

3.542 million by the end of June to

3.480 million by the end of July, while

sphere as a major

player.

Agreement signing

ceremony was held at PSO house

whereby PSO Cards and JazzCash

signed the partnership agreement.

Speaking at the signing ceremony,

Murtaza Ali, Chief Operating Officer

at JazzCash said, “Jazz is committed to

fostering a cashless digital economy in

Pakistan. Our partnership with PSO is

a strategic step to bring digitization to

large businesses from diverse fields,

like petroleum in this case, and catapult

digital payment process that cultivates

Pakistan imported mobile phones

worth $101.864 million during the

first two months (July-August) of

the current fiscal year 2022-22, and

registered a negative growth of 64.38

percent when compared to $285.947

million during the same period of the

last year. Pakistan Bureau of Statistics

(PBS)’s data shows that on a monthon-month

(MoM) basis mobile phone

imports registered 62.51 per cent

growth and remained $63.060 million

in August 2022 when compared to

$38.804 million in July 2022. Mobile

phone imports registered 62.16 percent

negative growth on a year-on-year

basis in August 2022 when compared

to $166.710 million during the same

month of last year.

The overall telecom imports into

the country remained $169.438

the number of 4G users of Telenor

increased from 21.831 million by the

end of June to 22.401 million by the

end of July.

Ufone 3G users stood at 3.468 million

by the end of July compared to 3.509

million by the end of June. The number

of 4G users of Ufone increased from

9.419 million by the end of June to

9.909 million by end of July, registering

0.49 million increase during the period

under review.

higher business efficiency and ensures

fast and secure transactions. We look

forward to jointly introducing more

services on our platforms in the future.

Speaking on the occasion, Amir Zaib

Khan, General Manager Cards and

Non-Fuel Business at PSO said, “We are

excited to partner with JazzCash which

will enable PSO in expanding our

DIGICASH customer base. Utilizing

JazzCash’s platform which is the

leading digital wallet in the country,

to facilitate DIGICASH customers is

an important step in the proliferation

of digital payments and overall

expansion of digital business. We

look forward to our relationship

and aim to explore devising

further value-added solutions in

collaboration with JazzCash in

future. PSO is delighted to have

JazzCash as its digital payment

partner.”

million during the first two months

of the current fiscal year 2022-23 and

registered 53.84 per cent negative

growth when compared to $367.051

million during the same period of last

fiscal year. The local manufacturing

plants have manufactured/ assembled

14.94 million phone handsets during

the first seven months (January-

July) of 2022 compared to 1.16

million imported commercially, says

the Pakistan Telecommunication

Authority (PTA).

29


TRADE CHRONICLE Sep - Oct - 2022

PTCL and Nokia to explore

innovative ICT solutions for all

Pakistan

Telecommunication

Company Limited (PTCL) and Nokia

have signed a Memorandum of

Understanding (MoU) to explore and

provide innovative ICT solutions to

industries, governments, cities, and

businesses throughout Pakistan.

The purpose of this MoU is to

collaborate and tap into the potential of

the ICT market and catalyze the digital

transformation of enterprises across

Pakistan. Under this MoU, PTCL and

A high level delegation from e&

International comprising of top

management held meetings with

Federal Secretary IT, Federal

Secretary Privatization, and other key

government stakeholders in Islamabad

recently.

The delegation led by CEO International,

e&, Mikhail Gerchuk met with the

Federal Secretary IT, Mohsin Mushtaq,

Federal Secretary for Privatization,

Dr. Iram A. Khan and Chairman

PTA, Major General (R) Amir Azeem

Bajwa HI (M). The delegation from

e& was accompanied

by President and Group

CEO, PTCL & Ufone,

Hatem Bamatraf.

During the meeting,

Mohsin Mushtaq

welcomed the delegation

Telenor Pakistan, the country’s secondlargest

mobile operator, reported solid

performance for the quarter that ended

on September 30, 2022. According

to Telenor Group’s financial results,

Telenor Pakistan reported a total of

NOK 1.32 billion (~Rs. 29.53 billion) in

revenues during the quarter, up by 10.7

percent in terms of PKR as compared

Nokia will engage in discussions

to strategize and build a go-tomarket

plan to address industry

needs selling PTCL solutions with

Nokia products and services, including

Nokia Digital Automation Cloud

(DAC), a high-performance, end-toend

private wireless networking and

edge computing platform.

Zarrar Hasham Khan, Group Chief

Business Solutions Officer, PTCL

& Ufone, said, “PTCL is the largest

ICT services provider having a

wide footprint across Pakistan.

PTCL is pivotal in driving digital

transformation throughout Pakistan,

meeting the need for collaboration

in the ICT segment. This will create

synergies to revolutionize various

sectors such as healthcare, education,

automotive, retail, energy & utilities,

cities and agriculture as well as other

industrial segments across Pakistan,

enabling all geographical areas with

e& International Delegation meets key government

stakeholders from Telecom & Privatization Sector

from e& International to Pakistan.

Matters of mutual interest were

discussed with a focus especially on

Telecom Sector and its significance

on the national economic growth. The

agenda of discussion also included

e& International and PTCL Group’s

incredible support in developing a

strong infrastructure in Pakistan that

would surely transform the country

into a digitalized economy.

The management and government

officials exchanged their views on

the ongoing crisis in the country by

Telenor Pakistan profits grow 10.7% in Q3 22

to the same

period last

year. Telenor

Pakistan’s service revenues were strong

despite the flooding situation. For the

operator, high energy prices in Pakistan

continue to be a headwind. With regard

to the outlook for the year, Telenor

maintains the expectation of low singledigit

growth in service revenues. Telenor

Group’s mobile subscription base in

Pakistan was impacted by flooding and

30

modern ICT technologies and a better

future.”

Imran Durrani, Head of the Customer

Team for PTCL Group at Nokia,

said, “Nokia has deployed missioncritical

networks to more than 2,200

leading enterprise customers in the

transport, energy, large enterprise,

manufacturing, webscale, and

public sector segments around the

globe. We have also extended our

expertise to more than 485 large

private wireless customers worldwide

across various sectors. This MoU

with PTCL is yet another testimony to

further strengthening our long-term

relationship. At Nokia, we will leverage

our industry-leading private wireless

products and services, including Nokia

Digital Automation Cloud (DAC) to

empower PTCL to cost-effectively offer

digital solutions to their enterprise

customers across a wide spectrum of

segments.”

the recent floods and ways to extend

joint support for the people during

these tough times. The discussion

also included the issue of telecom

companies in Pakistan requiring

import of communication equipment

for their network up-gradation and

expansion as well as to maintain

the quality-of-service requirements

mandated for the sector. In addition,

both sides talked about the resolution

of prevailing regulatory issues of

the telecom sector in Pakistan. CEO

International, e&, Mikhail Gerchuk

commended the tremendous efforts of

the Government of Pakistan including

Ministry of Information Technology

and Telecommunication and Ministry

of Privatization.

network outages.

President and Group

CEO, PTCL & Ufone,

Hatem Bamatraf briefed

the government officials

and dignitaries regarding

the Rs. 1.75 billion flood

relief package.

Pertinently, the total revenue is actually

down in Norwegian currency rates at

NOK 1.32 billion which is a decrease

of NOK 105 million compared to NOK

1.42 billion in the same period last year

when the PKR was trading well below

180 against the US Dollar. Total service

revenue decreased from NOK 1.187

billion (Rs. 24.9 billion) to NOK 1.095

billion (Rs. 22.97 billion).


TRADE CHRONICLE


TRADE CHRONICLE

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