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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
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CONTENTS
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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).
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