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www.tradechronicle.com Vol. 62 Issue Nos. 05 & 06 <strong>May</strong>-<strong>June</strong> <strong>2015</strong> Rs. 200/-<br />
<strong>Trade</strong> <strong>Chronicle</strong><br />
PAKISTAN'S LEADING MONTHLY MAGAZINE OF COMMERCE, INDUSTRY & PUBLIC AFFAIRS<br />
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<br />
<br />
<br />
FDI incentives should be revitalized<br />
GIDC may affect Industry<br />
China Pakistan Economic Corridor will usher new era of prosperity<br />
A review of Federal Budget <strong>2015</strong>-16<br />
38th FPCCI Export Trophy<br />
PM distributes award to top businessmen<br />
Country’s Largest oil refinery unveiled<br />
Nawaz says: Byco refinery would make self sufficient<br />
in crude oil refining<br />
POGEE <strong>2015</strong> concludes successfully<br />
Sindh Province: solution providers for energy crisis in Pakistan,<br />
says Syed Murad Ali Shah, Sindh Minister for Energy<br />
Aamer Khanzada said, Pakistan gets $573m FDI in Energy Sector<br />
Sindh Chief Minister inaugurates the Livestock, Dairy, Fisheries,<br />
Poultry and Agriculture Exhibition (LDFA-<strong>2015</strong>)<br />
Shura Hamdard discusses the<br />
coming National Budget <strong>2015</strong>-16<br />
Hamdard Naunehal Assembly Held<br />
Opening of Stoll/Nazer Demo Centre<br />
and Nazer Training Centre<br />
18 Years of Businessmen Group’s Public Service<br />
Siraj Teli criticises GIDC<br />
Federal Budget looks positive for Cement Industry<br />
by Abdul Rab Siddiqi<br />
<br />
<br />
<br />
<br />
<br />
<br />
EDITORIAL<br />
COMMENTS<br />
ARTICLES & FEATURES<br />
REGULAR FEATURES<br />
Leather Industry<br />
Port & Shipping News<br />
People & Events<br />
Cement Industry<br />
Telecommunication News<br />
Oil & Gas Industries<br />
<br />
<br />
<br />
<br />
Automobile News<br />
Fertilizer & Petrochemical<br />
Industries<br />
Banking & Insurance News<br />
Aviation & Hotel News
TRADE CHRONICLE<br />
We begin with the name of Allah the Magnificient<br />
FDI incentives should be revitalized<br />
From<br />
Editor's<br />
Desk<br />
ABDUL RAB SIDDIQI<br />
Pakistan’s President Mamnoon Hussain while speaking at a<br />
dinner arranged in honor of the participants of Pakistan-China<br />
Business Forum <strong>2015</strong> earlier this year, had stated that as the<br />
present government was keen to provide a level playing field to<br />
all international and local businesses, Pakistan offered<br />
tremendous opportunities for foreign direct investment on the<br />
back of skilled human resource, relatively low wages and<br />
worthwhile business incentives – which are important factors to<br />
attract investment. He said the Government ensures the<br />
protection of investment, profit repatriation and equal treatment<br />
in matters of taxation.<br />
Similarly, Chairman, Board of Investment (BoI) Miftah Ismail told<br />
local media that Pakistan was fast becoming the best country<br />
for foreign investment, as the situation here has been changed<br />
and several countries want to invest capital due to the<br />
government’s effective policies.<br />
Contrary to this tall claims, data released by State Bank of<br />
Pakistan says that the net flow of Foreign Direct Investment<br />
(FDI) fell by 47 percent during the first 11 months – ( July –<br />
<strong>May</strong>) of current fiscal year <strong>2015</strong>, mainly due to shrinkage of<br />
investment in food sector, chemicals, oil and gas exploration,<br />
cement and in some other sectors. Pakistan has attracted FDI<br />
amounting $803 million in July-<strong>May</strong> of FY15 compared to<br />
$1.509 billion in corresponding period of FY14, depicting a<br />
decline of $706 million or 46.78 percent. During the period under<br />
review, the country received FDI inflows amounting to $2.146<br />
billion as against outflow of $1.342 billion.<br />
Hopefully, implementation of Pak China Economic Corridor,<br />
some relief in Federal Budget <strong>2015</strong> – 16 for cement/construction<br />
industry and exemption of Tax/duty etc on setting up the industry<br />
in KPK and Balochistan Provinces, the flow of direct investment<br />
will improve in years to come. However, to ensure it, the Govt.<br />
should overcome energy crisis, availability of water and bring<br />
stability in law and order at the earliest.<br />
Economists say that the current trend is not surprising, as since<br />
the beginning of this fiscal year FDI is on decline. During the<br />
last fiscal year, privatisation proceeds and auction of 3G<br />
technology supported the FDI inflows, while this year government<br />
was unable to execute its privatization programme as envisaged.<br />
The government, for the last two years, has been expressing hopes<br />
of huge foreign investment in the country, particularly from<br />
China. However, the data indicates that so far it has failed to<br />
mobilize foreign investors.<br />
Analysts reportedly say that the country lacks policy to attract<br />
foreign investors, who are reluctant for variety of reasons.<br />
<strong>Trade</strong> <strong>Chronicle</strong> - <strong>May</strong> - <strong>June</strong> <strong>2015</strong> - Page # 04
TRADE CHRONICLE<br />
There is dire need of exchange<br />
of delegations between<br />
Pakistan trading partners in<br />
order to improve bilateral trade<br />
relations and attract<br />
investment.<br />
Swiss food giant Nestle which<br />
recently announced to invest<br />
more than $37 million this<br />
year to improve production<br />
capacity has rightly pointed<br />
out that consistent<br />
implementation of prudent<br />
economic policies by the<br />
government remains crucial to<br />
unlocking the country’s full<br />
potential.<br />
Economic experts were of the<br />
view that low foreign direct<br />
investment inflow is an<br />
alarming situation. It is one of<br />
the many but most important<br />
indicators of what the world<br />
feels about us and our<br />
government policies. Apart<br />
from political turmoil and<br />
social unrest, there are many<br />
controllable factors which<br />
affect FDI. These include<br />
rationale monetary and fiscal<br />
policies, government’s<br />
assurance for repatriation of<br />
profits, the government’s other<br />
economic policies that attract<br />
FDI.<br />
The Overseas Investors<br />
Chamber of Commerce and<br />
Industry (OICCI) had rightly<br />
pointed out that the budget<br />
<strong>2015</strong>-16, has ambitious targets<br />
and incentives for certain<br />
sectors of the economy,<br />
looking for generating growth.<br />
However, the budget does not<br />
contain sufficient incentives to<br />
boost Foreign Direct<br />
Investment (FDI), and large<br />
investments in the country. It<br />
includes only marginal tax<br />
broadening measures and some<br />
proposals are likely to impede<br />
capital formation which is<br />
essential for investment to<br />
drive growth. The Chamber has<br />
urged the government to focus<br />
on attracting foreign direct<br />
investment with supportive<br />
taxation policies. To attract<br />
new FDI, upfront levy of<br />
withholding income and sales<br />
tax at import stage on plant and<br />
machinery should be exempted<br />
for new foreign investment,<br />
the OICCI suggested.<br />
We hope that govt. in view of<br />
the OICCI suggestions, will<br />
improve policies to facilitate<br />
flow of FDI.<br />
EDITORIAL<br />
COMMENTS<br />
GIDC may affect<br />
Industry<br />
Following National Assembly,<br />
the Senate has also passed a bill<br />
to impose and enable<br />
government to collect the Gas<br />
Infrastructure Development<br />
Cess (GIDC) from commercial /<br />
industrial consumers to finance<br />
proposed Iran - Pakistan gas<br />
pipeline and Turkmenistan -<br />
Afghanistan - Pakistan India<br />
Pipeline Project.<br />
The passage of bill will enable<br />
the government to have an<br />
access to about Rs100 billion<br />
lying in its account under the<br />
head of the GIDC. The<br />
government had set a target of<br />
Rs145bn GIDC collection for<br />
the current financial year.<br />
The GIDC was first introduced<br />
through the GIDC Act, 2011 but<br />
was declared illegal and<br />
unconstitutional by the<br />
Peshawar High Court and the<br />
Supreme Court.<br />
However, the federal<br />
government recently passed<br />
the GIDC Act, <strong>2015</strong> and included<br />
Section 8 in it for recovery of<br />
arrears for the period for which<br />
the GIDC levy was declared<br />
illegal.<br />
It is said that the bill was tabled<br />
in Parliament to get nod of<br />
legislators, in order to make it<br />
a law of land and subsequently<br />
meet conditionalities of IMF<br />
and indirectly to meet shortfall<br />
in revenue collection.<br />
All major natural gas<br />
consumers have raised voices<br />
against GIDC. The Federation of<br />
Pakistan Chamber of Commerce<br />
and Industry, Karachi Chamber<br />
of Commerce and Industry, All<br />
Pakistan Textile Mills<br />
Associations, Korangi<br />
Association of <strong>Trade</strong> and<br />
Industry, five zero rated export<br />
sectors representing seventeen<br />
associations, have requested<br />
govt. to withdraw retrospective<br />
imposition of GIDC. They were<br />
of the view that it would<br />
increase the cost of doing<br />
business tremendously. It<br />
would make export sector<br />
unviable in the global market,<br />
as gas tariff in Pakistan even<br />
without GIDC is the highest.<br />
The government should think<br />
about their worries as country<br />
export has already in hang in<br />
balance around $25 billion for<br />
the last couple of years and<br />
unrest in exporters will further<br />
hit exports. The government<br />
should support the exporters<br />
instead of pushing them to the<br />
wall.<br />
Opposition and some of the<br />
treasury benches claimed the<br />
proposed legislation: the Gas<br />
Infrastructure Development<br />
Cess Bill, <strong>2015</strong>, was in gross<br />
violation of the Constitution’s<br />
five Articles, including Articles<br />
158, 161, 162 and 172, and<br />
insisted that it should have been<br />
also placed before the Council<br />
of Common Interests (CCI).<br />
<strong>Trade</strong> <strong>Chronicle</strong> - <strong>May</strong> - <strong>June</strong> <strong>2015</strong> - Page # 05
TRADE CHRONICLE<br />
Some opposition senators<br />
asked the government to put on<br />
hold metro bus and orange train<br />
projects and utilise funds for<br />
development of gas<br />
infrastructure, fearing the<br />
funds collected under the<br />
process cess would be diverted<br />
for the favourite projects of the<br />
rulers.<br />
The government should have<br />
taken on board all stakeholders<br />
before getting passed the bill<br />
from Parliament. CNG Stations<br />
and the Industrial units have<br />
already moved petitions in<br />
Peshawar High Court against<br />
the recovery of arrears on<br />
account of GIDC through<br />
enforcing law for the period for<br />
which Superior court had<br />
declared levy as illegal.<br />
The Govt. has to make efforts<br />
for win win situation for all the<br />
stakeholders instead of going<br />
through ligitation.<br />
China Pakistan<br />
Economic Corridor<br />
will usher new era of<br />
prosperity<br />
It is heartening to note that<br />
Mian Nawaz Sharif’s<br />
government and all political<br />
parties have reached on a<br />
consensus on the<br />
implementation of China-<br />
Pakistan Economic Corridor<br />
(CPEC). The reservations being<br />
expressed by certain political<br />
parties till recently were<br />
removed by the government<br />
and the project, which has been<br />
termed a ‘game-changer’ for<br />
Pakistan, is now set to sail<br />
smoothly. China, the co-sponsor<br />
of the project, will have a sigh<br />
of relief as the project involving<br />
US $46 billion initially secured<br />
political ownership from all the<br />
political parties of Pakistan. A<br />
remarkable achievement and<br />
credit goes to all stakeholders.<br />
This consensus was necessary<br />
when India had raised objections<br />
to the China – Pakistan<br />
Economic Corridor. Both<br />
Chinese and Pakistan<br />
Governments have denied the<br />
Indian claim that the CPEC is a<br />
project against India. Although<br />
officially these projects have<br />
been approved, it is obligatory<br />
for our government to ensure<br />
that these projects in no way fall<br />
victim to bureaucratic delays or<br />
Indian hindrance in their<br />
materialization. By the grace of<br />
Almighty Allah, if utmost and<br />
sincere efforts are made to<br />
implement these projects, no<br />
internal or external force can<br />
stop Pakistan from becoming the<br />
second biggest economy in Asia.<br />
It is a good sign that even<br />
Pakistan Army has also strongly<br />
supported the project. In an<br />
encouraging note Chief of Army<br />
Staff Gen Raheel Sharif said that<br />
China Pakistan Economic<br />
Corridor (CPEC) with Gwadar port<br />
as its catalyst would be built and<br />
developed as one of the most<br />
strategic deep-sea ports in the<br />
region at any cost whatsoever.<br />
Since all the major political<br />
parties were represented<br />
through their leadership in all<br />
Parties Conferance hopefully<br />
there would be no hue and cry in<br />
future from any political parties<br />
about change of routes.<br />
It is a good sign that government<br />
is constituting a working group<br />
consisting of representatives<br />
from all the provinces to make<br />
recommendations regarding the<br />
selection of industrial parks and<br />
other development works along<br />
the corridor route.<br />
It is a matter of great<br />
satisfaction that Sindh Police<br />
have set up Foreign Security<br />
Cell to ensure security of people<br />
to be engaged for Pak China<br />
Economic Corridor Projects.<br />
Hope the other provices will<br />
follow the footstep.<br />
If the $46 billion China-<br />
Pakistan Economic Corridor,<br />
linking the Gwadar Port in<br />
Balochistan with Kashgar in the<br />
north-western Chinese province<br />
of Xinjiang is indeed completed<br />
within the next three years as<br />
is the plan, the route would<br />
quite dramatically change the<br />
geo-strategic realities for the<br />
region, bringing electricity and<br />
gas into Pakistan, offering it<br />
potentially huge trade benefits<br />
and allowing China easier<br />
access to Middle Eastern and<br />
European markets.<br />
Some of the key projects<br />
proposed to be undertaken<br />
under the CPEC program as<br />
announced by government in<br />
Federal Budget are as follows:<br />
* 2 x 660 MW Coal-Based Power<br />
Projects (IPP) at Port Qasim;<br />
* Power Evacuation from Mitiari<br />
to National Grid (IPP);<br />
* 3.5 MT/A Coal Mining and<br />
2x330 MW Power Plants based<br />
on Thar Block-II SECMC;<br />
* Solar Power Park at<br />
Bahawalpur;<br />
* 2793 MW (Three) Hydro Power<br />
Projects;<br />
* Multan-Sukkur section<br />
(387Km) of Karachi-Lahore<br />
Motorway;<br />
* Karakoram Highway (Phase-II)<br />
Raikot to Islamabad;<br />
* Fiber Optic;<br />
* Rehabilitation & Up-gradation<br />
of Karachi-Lahore-Peshawar<br />
(ML-1) Railway Track;<br />
* Gawadar Package;<br />
* East Bay Expressway at<br />
Gawadar (18.98 Km);<br />
* Jhimpir Wind-Power 200 MW;<br />
* 2 x 660 MW Coal-Based Power<br />
Projects at Sahiwal;<br />
* Jetty + Infrastructure at<br />
Gaddani as IPP (preferably) or<br />
Public Sector.<br />
<strong>Trade</strong> <strong>Chronicle</strong> - <strong>May</strong> - <strong>June</strong> <strong>2015</strong> - Page # 06
TRADE CHRONICLE<br />
A review of Federal Budget <strong>2015</strong> – 16<br />
Ishaq Dar proposes incentives for real estate investment, agriculture /<br />
manufacturing sectors<br />
A target of 5.5% set for GDP growth<br />
Rs. 700 billion allocated for PSDP<br />
With a consolidated outlay of<br />
Rs.4.451tn ( +3.5% YoY), Finance<br />
Minister Ishaq Dar has presented the<br />
Federal Budget <strong>2015</strong>-16 (July - <strong>June</strong> )<br />
in Parliment on <strong>June</strong> 05, <strong>2015</strong>.<br />
According to leading brokerage house,<br />
overall, the budget represents a fine<br />
balance between the government’s<br />
intent of lifting economic<br />
growth to medium-term<br />
target and the need for further<br />
fiscal consolidtation to<br />
strengthen the macro stability<br />
gained from past two years<br />
of reforms under the IMF<br />
program. The federal budget<br />
also got mixed response from<br />
local businessmen and<br />
associations.<br />
The Finance Minister<br />
proposes incentives to real<br />
estate investment, agriculture/<br />
manufacturing sectors as well as<br />
business community with enhanced<br />
rates of withholding taxes on non-filers<br />
of returns.<br />
The Finance Minister in his two-hourlong<br />
speech mostly focused on<br />
government’s performance and<br />
promised to increase investment to<br />
GDP ratio to 16.5 percent, reduce<br />
debt to GDP ratio within the limit of<br />
the Fiscal Responsibility Act in the<br />
medium. He proposes increase in<br />
Benazir Income Support Programme<br />
(BISP) to Rs 102 billion.<br />
Dar said the government was facing<br />
fiscal constraints and thus announced<br />
a 7.5 percent ad hoc relief allowance<br />
on running basic pay to all federal<br />
government employees and merger<br />
of Ad-hoc increases of 2011 and<br />
2012 in the pay scales.<br />
The Finance Minister announced a<br />
federal outlay of Rs 4,451 billion for<br />
Federal Finance Minister Ishaq Dar presenting Federal<br />
Budget <strong>2015</strong> - 16 in Parliament. Prime Minister Muhammad<br />
Nawaz Sharif also attended budget session in Parliament<br />
House Islamabad on <strong>June</strong> 5, <strong>2015</strong>.<br />
the next fiscal year with gross revenue<br />
estimated at Rs 3,103 billion. Fiscal<br />
deficit for the next fiscal year is<br />
projected at 4.3 percent (Rs 1328<br />
billion) after excluding Rs 297 billion<br />
provincial surplus. The share of<br />
provincial governments out of these<br />
taxes will be Rs.1849 billion and net<br />
resources left with the federal<br />
government will be Rs 2463 billion.<br />
The current expenditure is estimated<br />
at Rs.3128 billion for <strong>2015</strong>-16 with<br />
defense allocation of Rs780 billion,<br />
reflecting an increase of 11 percent<br />
against Rs.700 billion for the current<br />
fiscal year. Public Sector<br />
Development Programme projected<br />
at Rs 700 billion against a revised<br />
<strong>Trade</strong> <strong>Chronicle</strong> - <strong>May</strong> - <strong>June</strong> <strong>2015</strong> - Page # 07<br />
estimate of Rs.542 billion for 2014-<br />
15, showing an increase of nearly 29<br />
percent.<br />
Dar announced that the government<br />
plan is to raise GDP to gradually rise<br />
to 7 percent by 2017-18, contain the<br />
inflation to single digit, raise<br />
investment to GDP ratio to<br />
20 percent at the end of<br />
medium term, reduce fiscal<br />
deficit to 3.5 percent and<br />
increase tax to GDP ratio<br />
to 13 percent as well as to<br />
maintain foreign exchange<br />
reserves to $20 billion. The<br />
GDP growth for <strong>2015</strong>-16 is<br />
targeted at 5.5 percent on<br />
the assumption of a 3.9<br />
percent growth by<br />
agriculture sector, 6.4<br />
percent by industry and 5.7<br />
percent by services sector.<br />
Cumulative development spending is<br />
targeted at Rs.1513 billion with<br />
federal PSDP share of Rs.700, he<br />
added.<br />
The Finance Minister added that the<br />
government has decided to increase<br />
rate of Capital Gains Tax (CGT) from<br />
12.5 percent and 10 percent to 15<br />
percent and 12.5 percent,<br />
respectively, and decided to tax the<br />
securities held for a period of more<br />
than 2 years and less than 4 years,<br />
though at a reduced rate of 7.5<br />
percent.<br />
Dar further stated that the rate of tax<br />
in the case of non-filers was
TRADE CHRONICLE<br />
increased for contractors by 3<br />
percent, suppliers by 2 percent and<br />
commission agents by 3 percent. The<br />
government also proposed that<br />
adjustable advance income tax at the<br />
rate of 0.6 percent of the amount of<br />
transaction may be collected on all<br />
banking instruments and other modes<br />
of transfer of funds through banks for<br />
those who do not file income tax<br />
returns. The income of banks from<br />
all sources is proposed to be subjected<br />
to 35 percent income tax.<br />
Tax on earning taxable income from<br />
Rs 400,000 to Rs 500,000 has been<br />
reduced to 2 percent and for nonsalaried<br />
individual taxpayers and<br />
Association of Persons earning<br />
taxable income from Rs 400,000 to<br />
Rs 500,000 are chargeable to 7<br />
percent.<br />
The peak customs duty slab was<br />
proposed to further reduce from 25<br />
percent to 20 percent and federal<br />
excise duty on cigarettes was<br />
increased from 58 percent to 63<br />
percent. The government also decided<br />
to give special incentive packages to<br />
the Construction, Agriculture,<br />
Manufacturing and Employment<br />
Generation Sectors, he said, adding<br />
that certain items are only exempted<br />
from Sales Tax and Customs Duty<br />
on import if they are not locally<br />
manufactured. However, import of<br />
Solar Panels and certain related<br />
components was exempted from this<br />
‘local manufacturing’ condition until<br />
30th <strong>June</strong> <strong>2015</strong>.<br />
He said that the energy sector would<br />
continue to remain a priority with an<br />
allocation of Rs 248 billion for the<br />
next fiscal year to add 10600 MW<br />
to the system to end load-shedding.<br />
Water sector would get Rs 31 billion<br />
in the PSDP and Roads and<br />
Highways Rs 182 billion. He said the<br />
HEC would get Rs. 51.5 billion and<br />
Railways Rs 78 billion. Finance<br />
Minister also promised that sincere<br />
efforts would be made to increase<br />
allocation for education to 4 percent<br />
by 2017-18.<br />
Dar said that mark-up rate on export<br />
finance would be further reduced to<br />
4.5 percent from July 1, <strong>2015</strong> to<br />
promote exports, and long term<br />
financing facility for 3-10 years would<br />
be further brought down to 6 percent.”<br />
He said that more measures in this<br />
regard would be announced in the<br />
trade policy by the Commerce<br />
Ministry.<br />
The Finance Minister also stated that<br />
fiscal incentives would be provided<br />
to entice private investment through<br />
promoting public private partnerships,<br />
FDI and by creating special economic<br />
zones to boost economic growth.<br />
Finance Minister said under the<br />
Textiles Policy 2014-19 a financial<br />
package of Rs.64.15 billion has been<br />
approved in order to double textiles<br />
exports and create 3 million additional<br />
jobs by the year 2019 and a benefit<br />
of drawback of local taxes & levies<br />
scheme would remain available for<br />
the textile exporter in the next fiscal<br />
year.<br />
No one will be allowed to<br />
increase prices; price of ghee and<br />
cooking oil to remain<br />
unchanged; wheat subsidy<br />
for Gilgit-Baltistan not<br />
abolished; duty imposed on<br />
import of cement to protect<br />
local industry; super tax to<br />
be imposed on 200 people<br />
and companies to generate<br />
remaining Rs20-22 bn for<br />
TDPs; country needs<br />
Charter of Economy.<br />
Federal Minister for Finance<br />
Senator Muhammad Ishaq<br />
Dar said the Federal Budget<br />
<strong>2015</strong>-2016 was poor-friendly and<br />
the government would not allow<br />
anyone to increase the prices by<br />
using the name of budget.<br />
Finance Minister, Senator Mohammad Ishaq Dar<br />
addressing post budget Press conference in<br />
Islamabad on <strong>June</strong> 6, <strong>2015</strong>.<br />
Addressing the post-budget Press<br />
conference, the minister said he didn’t<br />
agree to the perception that the budget<br />
<strong>Trade</strong> <strong>Chronicle</strong> - <strong>May</strong> - <strong>June</strong> <strong>2015</strong> - Page # 08<br />
Ishaq Dar Post - Budget Briefing<br />
<strong>2015</strong>-2016 had increased the burden<br />
on the poor.<br />
Packaged yogurt and cheese<br />
have been brought into the tax<br />
net, he said and added that<br />
there was no tax imposed on<br />
milk.<br />
On mobile phone, he said the<br />
regulatory duty was abolished<br />
to bring down the tax burden on<br />
two tiers but tax on expensive<br />
phones was increased from<br />
Rs700 to Rs1,000, jumping up<br />
by Rs300 on phone set in the<br />
price range of Rs70,000. On the<br />
internet, he said tax was rationalised<br />
as it was imposed on use of Evo.
TRADE CHRONICLE<br />
Budget Revision for<br />
Fiscal Year <strong>2015</strong> - 16<br />
Federal Finance Minister Ishaq<br />
Dar in his winding up speech on<br />
general discussion on budget <strong>2015</strong>-<br />
16 and feedback from Senate &<br />
Industry Group has announced a<br />
significant relief in taxes for<br />
agriculture sector, beverage<br />
industry, pesticides, Poultry<br />
Industry as well as an incentive<br />
package for industry to be<br />
established for manufacturing of<br />
mobile phones.<br />
He announced a reduction in GST<br />
from 17 percent to 7 percent (nonadjustable)<br />
as well as 5 percent cut<br />
in ST on oil seeds and removal of<br />
customs duty on import of oil seed.<br />
The minister also announced an<br />
increase in PIU (Per Indent Unit)<br />
for taking loan up to Rs 4000 and<br />
establishment of a Rs 20 billion<br />
fund with equal contribution by<br />
federal government and provincial<br />
governments to subsidize<br />
phosphate and potash fertilizers<br />
for increasing productivity of land.<br />
The Finance Minister also<br />
announced withdrawal of 5 per<br />
cent sale tax on poultry feed<br />
supplies locally but imposition of a<br />
5 percent sales tax on import of<br />
such feed.<br />
To facilitate beverage<br />
manufacturers, the government<br />
has cut federal excise duty on<br />
beverages to 10.5 per cent from<br />
12 per cent. The government has<br />
announced a tax incentive package<br />
for cellular phone industry for<br />
manufacturing of mobile phones.<br />
Under the package, income tax<br />
exemption would be available for<br />
a period of five years, a 90 percent<br />
deprecation allowance for plants<br />
and machinery during the first year,<br />
customs duty and sales tax<br />
exemption on the import of plants,<br />
assembly line machinery and<br />
equipment.<br />
The government has accepted the<br />
demand of the mutual fund industry<br />
that the income of Mutual Funds<br />
would not be subjected to the<br />
Workers Welfare Fund (WWF).<br />
The government has also decided<br />
to allow export of perishable items<br />
from Balochistan to Afghanistan in<br />
Pak rupee instead of dollars.<br />
According to the government, Hajj<br />
operators will continue to enjoy<br />
certain exemptions of the Income<br />
Tax Ordinance in <strong>2015</strong>. The<br />
Finance Minister also announced<br />
an increase in withholding tax on<br />
advertisements of print and<br />
electronic media for non-filers to<br />
12 percent and 15 percent for<br />
corporations and individuals,<br />
respectively, and a decrease from<br />
10 to one percent for filers.<br />
On the pattern of KPK, industries<br />
to be established in Balochistan<br />
from <strong>2015</strong>-2018 would be<br />
exempted from taxes including<br />
turnover tax. The income tax<br />
exemption to Halal meat units has<br />
been extended up to <strong>June</strong> 30, 2017.<br />
A 0.6 percent withholding tax on<br />
all banking instruments of nonfilers<br />
would not be applicable up<br />
to a transaction of Rs 50,000. Dar<br />
also stated that a 7.5 percent<br />
increase in government<br />
employees’ salary would be<br />
applicable after the merger of<br />
previously allowed two ad-hoc<br />
increases.<br />
Dar said that as many as 92 budget<br />
proposals have been received from<br />
Senate, of which 20 have been<br />
fully accepted, 21 partially while<br />
15 in principle but the<br />
implementation of 36 was not<br />
immediately possible.<br />
(Courtesy: “A <strong>Chronicle</strong> report<br />
and local media.”)<br />
<strong>Trade</strong> <strong>Chronicle</strong> - <strong>May</strong> - <strong>June</strong> <strong>2015</strong> - Page # 09
TRADE CHRONICLE<br />
Prime Minister Nawaz Sharif has<br />
distributed 38th FPCCI Trophy to top<br />
businessmen of country at a function<br />
organized by apex trade body -<br />
Federation of Pakistan Chambers of<br />
Commerce & Industry recently.<br />
38th FPCCI Export Trophy<br />
PM distributes award to top businessmen<br />
While addressing the members of<br />
Federation of Pakistan Chambers of<br />
Commerce & Industry (FPCCI) the<br />
Prime Minister said the Government<br />
would consider the proposal to waive<br />
off duties on import of new plants and<br />
machinery. He said the duties can be<br />
recovered when the plant becomes<br />
operational.<br />
The Prime Minister said work is about<br />
to begin on Karachi-Hyderabad<br />
Motorway, which would later be<br />
extended to Sukkur, Multan, Lahore<br />
and Peshawar.<br />
He said it is the effort of the present<br />
government to connect Pakistan with<br />
Central Asian States. He said<br />
construction of Gwadar-Quetta-<br />
Chaman and Kandhar route would<br />
open the entire Balochistan to<br />
development.<br />
Prime Minister Muhammad Nawaz Sharif distributing Export Awards to the<br />
winners at 38th FPCCI Exports Awards Distribution ceremony in Karachi on<br />
12-6-<strong>2015</strong>.<br />
Sindh Governor Dr Ishrat-ul-Ebad<br />
Khan, Federal Commerce Minister<br />
Engr Khurram Dastagir Khan,<br />
Federal Minister for Finance and<br />
Economic Affairs Senator<br />
Muhammad Ishaq Dar, Minister of<br />
State for Petroleum and Natural<br />
Resources Jam Kamal and Minister<br />
of State and Chairman Board of<br />
Investment Dr Miftah Ismail,<br />
Federation of Pakistan Chambers of<br />
Commerce and Industry (FPCCI)<br />
President Mian Muhammad Adrees,<br />
<strong>Trade</strong> Development Authority of<br />
Pakistan (TDAP) Chief Executive<br />
Officer S M Muneer, United<br />
Business Group (UBG) Chairman<br />
Iftikhar Ali Malik, Senior Vice<br />
President FPCCI Abdul Rahim<br />
Janoo, FPCCI vice presidents,<br />
former vice president, In-Charge<br />
WTO Cell at FPCCI Engr. M.A.<br />
Jabbar and a large number of business<br />
leaders were present.<br />
The Prime Minister said massive<br />
investment of 46 billion dollars would<br />
be made by China under China-<br />
Pakistan Economic Corridor. He said<br />
two power plants of 330 MW each<br />
are to be established at Thar which<br />
would use Thar coal.<br />
He said the ultimate objective of the<br />
Government is to eliminate load-shedding<br />
and bring down prices of electricity.<br />
Nawaz Sharif said the Government<br />
is also addressing issues of security<br />
in Karachi, Balochistan and overall<br />
in the country.<br />
Dr. Navaid ul Zafar, Managing Director, Hamdard Laboratories (Waqf) Pakistan<br />
receiving FPCCI Export Award 2014 on best export of Rooh Afza Syrup from<br />
Prime Minister of Pakistan, Mian Mohammed Nawaz Sharif in 38th FPCCI<br />
Export Awards Ceremony, held at a local hotel of Karachi.<br />
<strong>Trade</strong> <strong>Chronicle</strong> - <strong>May</strong> - <strong>June</strong> <strong>2015</strong> - Page # 11
TRADE CHRONICLE<br />
Country’s largest oil refinery unveiled<br />
Nawaz says: Byco refinery would make self sufficient in crude oil refining<br />
Prime Minister Nawaz Sharif has<br />
inaugurated country’s largest Byco oil<br />
refinery complex with a crude oil<br />
refining capacity of 120,000 barrels<br />
per day at Lasbella in Balochistan<br />
recently. Hopefully it will meet<br />
around 39 per cent of country’s<br />
energy requirements and minimize<br />
down reliance on imports.<br />
The refinery built by the Byco Group<br />
has attracted in an investment of US<br />
750 million and will produce about 1.6<br />
million tons of Fuel oil, 2.4 million tons<br />
of diesel and 1.1 million tons of LPG<br />
annually.<br />
The Prime Minister said the refinery<br />
is an appreciable addition to the oil<br />
and gas sector, and will go a long<br />
way in achieving sustainable<br />
productivity and increased<br />
profitability.<br />
He said currently, Pakistan requires<br />
22 million tons oil, but the country is<br />
still short of capacity to refine crude<br />
oil. He said it would take time to<br />
achieve complete self-sufficiency.<br />
He noted the role of Byco Group in<br />
oil refining and said the setting up of<br />
the second refinery would help<br />
generate employment opportunities<br />
and help the country achieve selfsufficiency<br />
in crude oil refining.<br />
Prime Minister Nawaz Sharif said it<br />
is his government’s vision to make<br />
Gwadar a free port and assured that<br />
necessary legislation would be done<br />
soon to accord it the status.<br />
He said the Port would be connected<br />
through road, rail links to Peshawar<br />
Prime Minister Muhammad Nawaz Sharif unveiling the plaque of Byco Oil<br />
Refinery Complex II at Lasbella Baluchistan on <strong>June</strong> 12, <strong>2015</strong>.<br />
and then onwards to Central Asian<br />
Republics. He said a beautiful road<br />
was being constructed from Gwadar<br />
to Chaman, near Quetta, while<br />
another option was to link it with<br />
Wakhan corridor in Afghanistan, from<br />
where it can be connected to the<br />
Central Asian Republics.<br />
Prime Minister Sharif asked Finance<br />
Minister Ishaq Dar to consider giving<br />
more concessions to new industries<br />
in taxation to woo more foreign<br />
investment.<br />
Chief Executive of Byco Industries<br />
Amir Abbasi said the project,<br />
completed in six years, enjoys a<br />
substantial position in the value<br />
addition chain of hydrocarbon from<br />
the well-head to the consumer.<br />
He said Byco has so far invested<br />
US$750 million into country’s<br />
infrastructural and industrial<br />
development.<br />
Arif Masood Naqvi, CEO of Abraaj<br />
Capital Limited said the Middle<br />
East’s premier private equity fund<br />
would like to make more<br />
investments in Pakistan in various<br />
areas.<br />
With new refinery, Pakistan has joined<br />
the club of countries with Single Point<br />
Mooring (SPM) facilities in the deep<br />
sea to transport crude oil through a<br />
pipeline to refineries set up along the<br />
coast.<br />
Byco Terminals Pakistan Limited<br />
(BTPL) has set up its terminals in<br />
Keemari and Mahmoodkot and has<br />
acquired land at Shikarpur and<br />
Machike for terminal installation.<br />
The SPM has been set up in the North<br />
Arabian Sea at a distance of<br />
approximately 14 kilometers from the<br />
Byco’s Mouza Kund Site located at<br />
Hub, and is 10 km inside the sea at<br />
2.5 metres deep.<br />
<strong>Trade</strong> <strong>Chronicle</strong> - <strong>May</strong> - <strong>June</strong> <strong>2015</strong> - Page # 12
TRADE CHRONICLE<br />
Syed Murad Ali Shah, Minister for<br />
Finance and Energy, Government of<br />
Sindh has congratulated Pegasus<br />
Consultancy (Pvt) Ltd; for holding<br />
POGEE, the 13 th International<br />
Exhibition for the Energy Industry at<br />
Karachi Expo Centre, in Karachi<br />
from 23 – 25 April, <strong>2015</strong>, in a befitting<br />
manner.<br />
He said that events like POGEE<br />
provide a chance to the industry<br />
professionals and experts to gather<br />
at a unique avenue that guarantees<br />
attainment of latest information<br />
available through latest technology<br />
display and business networking<br />
opportunities.<br />
More than 170 companies from<br />
twenty seven countries such as<br />
Australia, Austria, Bahrain, Belgium,<br />
Canada, China, Denmark, Egypt,<br />
France, Germany, Hong Kong, India,<br />
Italy, Japan, Korea, Malaysia,<br />
Netherland, Poland, Russia,<br />
Singapore, South Korea, Spain,<br />
Switzerland, Thailand, Turkey, UAE,<br />
UK, and USA have displayed their<br />
innovative engineering products.<br />
A big number of Pakistani companies<br />
had also participated. The beautifully<br />
decorated stall of Sui Southern Gas<br />
Company (SSGC) has attracted a<br />
large number of trade visitors. They<br />
also got best stall award as well.<br />
POGEE <strong>2015</strong> concludes successfully<br />
Sindh Province: solution providers for energy crisis in Pakistan,<br />
says Syed Murad Ali Shah, Sindh Minister for Energy<br />
Shoaib Warsi reviews SSGC working at POGEE<br />
Aamer Khanzada said, Pakistan gets $573m FDI in Energy Sector<br />
A <strong>Chronicle</strong> report<br />
Syed Murad Ali Shah<br />
Sindh Minister for Finance & Energy<br />
valuable insights and industry trends<br />
to the business professionals.<br />
While formally inaugurating the<br />
exhibition, Sindh Minister said, Sindh<br />
Province by the grace of Almighty<br />
Allah, has been fully endowed with<br />
natural resources such as Coal, Gas<br />
and Wind Corridor (seven largest in<br />
the world) to provide “energy<br />
solution” for the country and added,<br />
“Sindh Province has 99 percent coal<br />
reserves, supplying 70 percent and 50<br />
percent gas and oil respectively.”<br />
He expressed the hope that if these<br />
huge resources such as deposit of<br />
coal and wind corridor are exploited,<br />
can help to overcome energy crisis<br />
in the country.<br />
He applauded the efforts of Prime<br />
Minister Mian Mohammad Nawaz<br />
Sharif who alongwith former<br />
President Mr. Asif Ali Zardari<br />
inaugurated the work on the Sindh<br />
Engro Coal Mining (SECMC) project,<br />
a joint venture between government<br />
of Sindh and Engro Corporation<br />
earlier this year. This marks the<br />
beginning of coal extraction from<br />
Thar Coal block II, he remarked. The<br />
investment for other block of Thar has<br />
also been materialized following<br />
signing of financial close between<br />
Chinese banks and local financial<br />
institutions.<br />
An International Conference under<br />
the theme “Integrated Solutions to<br />
Pakistan’s Energy Needs” was also<br />
held on the sidelines of fair to provide<br />
A View of stall at Pogee <strong>2015</strong>.<br />
<strong>Trade</strong> <strong>Chronicle</strong> - <strong>May</strong> - <strong>June</strong> <strong>2015</strong> - Page # 13
TRADE CHRONICLE<br />
He requested Govt. to take on board<br />
Sindh government in the power policy<br />
and the other projects being planned<br />
for Sindh Province. He was optimistic<br />
that working together will resolve<br />
energy problems. He suggested wind<br />
power projects are short solution for<br />
energy requirements while coal<br />
power plants as for long terms.<br />
Mr. Shoaib Warsi,<br />
Chief Operating Officer and<br />
Dy. Managing Director of<br />
Sui Southern Gas Company (SSGC)<br />
Mr. Shoaib Warsi, Chief Operating<br />
Officer and Dy. Managing Director<br />
of Sui Southern Gas Company<br />
(SSGC) in his brief speech at the<br />
POGEE, also appreciated role of<br />
Pegasus Consultancy (Pvt) Ltd., for<br />
organizing POGEE, and brining world<br />
class energy equipment suppliers<br />
under one roof.<br />
He said SSGC is supplying 1.2 bcf<br />
gas to its 2.6 million<br />
customers in Sindh and<br />
Baluchistan Provinces<br />
from 31 gas fields. He<br />
said domestic<br />
customers are their<br />
priority customers as<br />
per policy and due to<br />
shortfall in gas supply,<br />
they have launched gas<br />
curtailment for CNG<br />
and other industries in<br />
the Provinces.<br />
Mr. Aamer Khanzada,<br />
Managing Director,<br />
Pegasus Consultancy (Pvt.) Ltd<br />
Mr. Aamer Khanzada, Managing<br />
Director, Pegasus Consultancy<br />
(Pvt.) Ltd in his address of welcome<br />
has extended thanks to all the local<br />
and international exhibitors and<br />
trade delegates for their presence<br />
in the 13th International Exhibition<br />
for the Energy Industry — POGEE<br />
<strong>2015</strong>.<br />
He said government has signed<br />
number of energy projects with<br />
Chinese government and firms that<br />
will bring $34 billion investment in<br />
10400 mw power projects and will<br />
Air Mix Synthetic natural gas plants<br />
in 22 small villages, where gas<br />
pipeline cannot be laid due to<br />
economic viability. Four plants are<br />
already working. He appreciated the<br />
Govt. for facilitating import of LNG<br />
ensure solution to energy crisis and<br />
provide employments.<br />
He said Pakistan’s energy<br />
requirement is increasing every<br />
year with the growing population<br />
and fast-paced industrial<br />
developments. To meet the rising<br />
demand of the energy, the<br />
Government is currently focused in<br />
the development of hydropower and<br />
coal based power plants, tapping of<br />
renewable energy sources and<br />
sustainable Oil & Gas supply to the<br />
country.<br />
In his special message, he said,<br />
“attractive investment policies of<br />
the Government and business<br />
friendly environment have brought<br />
foreign direct investment of USD<br />
573 millions in the Energy sector<br />
last year. The sector has registered<br />
an import of USD 2.1 billion<br />
machinery during last year to<br />
maximize the power generation in<br />
the country”.<br />
through Engro Terminal at Port<br />
Qasim. The shipment came on 28th<br />
March, earlier this year. He said<br />
another terminal would come on<br />
stream by 16th December later this<br />
year.<br />
The company is<br />
planning to install LPG<br />
SSGC's Corporate booth at Pakistan's Premier Energy Exhibition POGEE remained the centre<br />
of attraction for the visitors.<br />
<strong>Trade</strong> <strong>Chronicle</strong> - <strong>May</strong> - <strong>June</strong> <strong>2015</strong> - Page # 14
TRADE CHRONICLE<br />
He said that SSGC was updating its<br />
transmission and distribution systems<br />
to provide uninterrupted gas with<br />
required gas pressure to its<br />
customers.<br />
Mr. Abdul Sami Khan, Chairman,<br />
CNG Dealer Association and<br />
Chairman, Pakistan Petroleum Dealer<br />
Association highlighted problems<br />
faced by CNG industry in the country.<br />
He requested for regular supply of<br />
gas to CNG stations in Sindh province.<br />
The Vice President FPCCI<br />
Muhammad Ikram Rajput also<br />
applauded the efforts of Pegasus<br />
Consultancy (Pvt) Ltd; for bringing<br />
world class energy equipment<br />
suppliers in the country for the mutual<br />
co-operation of the local companies.<br />
A View of stall at Pogee <strong>2015</strong>.<br />
The Ambassador of Belgium, Peter<br />
Claes commented on the occasion<br />
that events like POGEE are much<br />
helpful in providing solutions to the<br />
energy issues. He said that his<br />
country is willing to extend<br />
technological assistance to Pakistan<br />
in resolving its energy crisis.<br />
Mr. Aasim A. Siddiqui, Chairman<br />
Pegasus Consultancy (Pvt.) Ltd is his<br />
special message said, POGEE is<br />
considered as the Regional Gateway<br />
for Energy Industry and has always<br />
played a vital role in the development<br />
of energy sector of Pakistan”.<br />
"Foreign exhibitors displaying their products at Pakistan oil, gas & energy<br />
exhibition, POGEE-<strong>2015</strong>, held at Expo Centre, Karachi.<br />
14TH INTERNATIONAL<br />
EXHIBITION FOR<br />
THE ENERGY INDUSTRY<br />
The next POGEE will be held<br />
in Lahore Expo Centre<br />
from 19-21 st <strong>May</strong> in Lahore.<br />
Uzair Ahmed Khan, on behalf of SSGC’s Corporate Communication Department,<br />
receiving the ‘Best Corporate Booth’ award from the representative of Pegasus at<br />
Pakistan Oil and Gas Energy Exhibition (POGEE), held from April 23-25, <strong>2015</strong>.<br />
<strong>Trade</strong> <strong>Chronicle</strong> - <strong>May</strong> - <strong>June</strong> <strong>2015</strong> - Page # 15
TRADE CHRONICLE<br />
Sindh Chief Minister<br />
inaugurates the<br />
Livestock, Dairy,<br />
Fisheries, Poultry and<br />
Agriculture Exhibition<br />
(LDFA-<strong>2015</strong>)<br />
Sindh Chief Minister Syed Qaim Ali<br />
Shah has said that the provincial<br />
government is committed to promoting<br />
agriculture, livestock, dairy and other<br />
sectors and will provide incentives<br />
and facilities to investors.<br />
He said this while inaugurating the<br />
Livestock, Dairy, Fisheries, Poultry<br />
and Agriculture Exhibition (LDFA-<br />
<strong>2015</strong>) at the Expo Centre Karachi<br />
recently. The exhibition was held to<br />
promote business and investment<br />
opportunities in the agriculture sector<br />
of Sindh and bring the government<br />
and investors on a single platform.<br />
Shah, while visiting the stalls put up<br />
at the show, said the fair would help<br />
the government to identify the sectors<br />
for increasing productivity. “The<br />
exhibition will help our industries in<br />
capitalising on the potential of<br />
livestock and dairy as millions of<br />
people and hundreds of industries<br />
depend on these sectors.”<br />
Chief Minister Sindh Syed Qaim Ali Shah inaugurating a Livestock Dairy,<br />
Fisheries, Poultry and Agriculture (LDFA) Exhibition at Expo Centre recently.<br />
He added the Sindh government had<br />
been striving to support these sectors<br />
so that they could be modernised and<br />
could capitalise on the immense<br />
potential available in the province.<br />
This will help them to not only meet<br />
local demand but also export various<br />
products.<br />
Sindh Minister for Livestock and<br />
Fisheries Jam Khan Shoro said the<br />
LDFA-<strong>2015</strong> would bring a visible<br />
impact on Sindh’s economy and had<br />
set the path for the development and<br />
exploration of new markets.<br />
“It is heartening that a large number<br />
of foreign and local companies from<br />
the agriculture sector are participating<br />
in the exhibition and sharing their<br />
experiences in modernising the<br />
products,” he said.<br />
Sindh Board of Investment Chairman<br />
Dr Asif Brohi said the livestock and<br />
dairy sectors were the backbone of<br />
the country’s agrarian economy.<br />
“Therefore, the provincial<br />
government wants to bring in new<br />
investment in the dairy sector not only<br />
for food security but also to improve<br />
value addition and the value chain.”<br />
Around 50 local and five international<br />
companies have displayed their<br />
products and services at the fair.<br />
A collection of short stories titled Kuchh<br />
aur by Dr Huma Mir was launched at the<br />
Arts Council Karachi recently. The<br />
launching was addressed by writer Anwar<br />
Maqsood; former interior minister retired<br />
Lt-Gen Moinuddin Haider; actor Talat<br />
Husain; scholar Dr Alia Imam; Journalist<br />
Nazeer Laghari. Earlier, Ahmed Shah<br />
welcomed the guests. Dr Huma Mir<br />
conducted the programme. Others who<br />
were present on the occasion to speak on<br />
the salient features of the book were Prof<br />
Sahar Ansari (who presided over the<br />
launch), Dr Aamir Liaquat (chief guest),<br />
Abdul Haseeb Khan, Kamal Ahmed Rizvi<br />
and Sardar Yasin Malik.<br />
<strong>Trade</strong> <strong>Chronicle</strong> - <strong>May</strong> - <strong>June</strong> <strong>2015</strong> - Page # 16
TRADE CHRONICLE<br />
Speakers at the meeting of Shura<br />
Hamdard Karachi Chapter urged the<br />
government to try its level best to<br />
make the coming national budget<br />
<strong>2015</strong>-16 people friendly as the masses<br />
are already under the burden of high<br />
prices of daily use commodities. The<br />
meeting was held on <strong>May</strong> 14, <strong>2015</strong><br />
on the theme: “National Budget <strong>2015</strong>-<br />
16 and public expectation”, presided<br />
over by Justice (Rtd) Haziqul Khairi<br />
at a local hall.<br />
Speaking on the occasion, Dr. Shahid<br />
Hassan Siddiqui, an economist said<br />
that Pakistan was legged behind in<br />
collecting taxes than seven other<br />
Asian countries. There was a<br />
powerful group in Pakistan which<br />
didn’t allow to tax agricultural income<br />
and documentation of economy in the<br />
country.<br />
Zafar Iqbal, President, Association of<br />
Small and Medium Size Enterprises<br />
(SAMEA) while giving the budget<br />
recommendations said that small and<br />
medium size enterprises are the<br />
engine and backbone of country’s<br />
economy, having 40 per cent share in<br />
GDP and consisting of small and<br />
medium size industrial and trading<br />
units, involving 80 per cent labour<br />
force of the country and progress of<br />
this sector was tantamount to the<br />
progress of the country.<br />
Mrs. Sadia Rashid, President,<br />
Hamdard Foundation Pakistan said<br />
that national census should be<br />
conducted in order to make it clear<br />
how many population and resources<br />
country have and what can be done<br />
to meet the requirement of the people.<br />
Commodore (Rtd) Sadeed Anwar<br />
Malik said that nature had bestowed<br />
upon Pakistan with good opportunities<br />
for the production of Shrimps in<br />
Balochistan and other places too. We<br />
should improve the production of<br />
Mrs. Sadia Rashid, President Hamdard Foundation Pakistan addressing<br />
on“National Budget <strong>2015</strong>-16 and public expectation”, presiding over by Justice<br />
(Rtd) Haziqul Khairi at a local hall. Dr.Shahid Hasan Siddiqi is also present on<br />
this occasion.<br />
shrimps which could give us good<br />
enough amount of foreign exchange<br />
as there was great demand of this<br />
species throughout the world.<br />
Haq Nawaz Akhtar, former<br />
Chairman, Pakistan Steel Mills said<br />
that it should be made obligatory for<br />
banks that they must put their shares<br />
Shura Hamdard discusses the<br />
coming National Budget <strong>2015</strong>-16<br />
in micro finance and the money of<br />
Benazir Income Support Programme<br />
be attached to micro finance in order<br />
to provide respectful support to the<br />
poor. Dr. Abubakar Sheikh, Ms.<br />
Shamim Kazmi, Prof. Mohammed<br />
Rafi, Khalid Ikramullah Khan, Col<br />
(Rtd) Mukhtar Ahmed Butt and<br />
Anwar Aziz Jakartawalla also spoke.<br />
A renowned Social Worker & TV Artist Mrs. Jehan Ara Hai cutting the ribbon of<br />
inauguration of 24th Annual Eid Card Competition at Bait al Hikmah<br />
Auditorium, Madinat al Hikmah organized by Hamdard Public School &<br />
Hamdard Village School. Mrs. Sadia Rashid, President, Hamdard Foundation<br />
Paistan, Fatema Munir Ahmed, Vice President Madinat al Hikmah , Prof. Hakim<br />
Abdul Hakim Abdul Hannan, Vice Chancellor Hamdard University, Dr. Khalid<br />
Nasim, Administrator Hamdard Public School, Ms. Saba Khalid, Headmistress<br />
& others are present on this occasion. While judges are selecting the cards for<br />
1st, 2nd & 3rd position.<br />
<strong>Trade</strong> <strong>Chronicle</strong> - <strong>May</strong> - <strong>June</strong> <strong>2015</strong> - Page # 17
TRADE CHRONICLE<br />
Mehmood Arshad, Chief Guest, Chairman, Standing Committee for Islamic Banking and Executive Vice President, Pak<br />
Qatar Takaful addressing on “Hard Working is essential to achieve greatness” at Hamdard Naunehal Assembly at a local<br />
hotel. Mrs. Sadia Rashid, President, Hamdard Foundation Pakistan, Ms. Fatema Muneer Ahmed and Mr. Furrukh Imdad<br />
are also present on the occasion.<br />
Hamdard Naunehal<br />
Assembly Held<br />
A function, comprised recitation from<br />
Holy Quran, naat, speeches, tableau<br />
and dua-i-Said was held <strong>May</strong> 19,<br />
<strong>2015</strong> on the theme “Hard Working is<br />
essential to achieve greatness” at a<br />
local hotel.<br />
world were born in poor or middle<br />
class families but they reached to the<br />
highest pedestal of their societies due<br />
to their sincerity to their purpose and<br />
hard work of day and night for<br />
example William Henry Bill Gates,<br />
founder of Microsoft company, who<br />
born in a middle class family in<br />
Washington, USA, but today he was<br />
one of the richest men of the world.<br />
Speaking on the occasion, Mehmood<br />
Arshad Chief Guest, Chairman,<br />
Standing Committee for Islamic<br />
Banking and Executive Vice<br />
President, Pak Qatar Takaful said:<br />
‘Trust in God, self confidence and<br />
hard work are the keys of success in<br />
life as Allah says in Quran: “How<br />
much a man tries and puts its efforts<br />
in achieving some thing he would get<br />
according to his efforts” and Islam<br />
ordains to take care of deen (religion)<br />
together with dunya (world).<br />
Mrs. Sadia Rashid, President,<br />
Hamdard Foundation Pakistan while<br />
addressing the gathering of children<br />
said that Islam had given great<br />
importance to hard work and labour<br />
as the life of our Holy Prophet<br />
(PBUH) was filled with action and<br />
hard working. There was a common<br />
value of hard working in all our great<br />
leaders, including Hakim Mohammed<br />
Said and mostly great men of the<br />
Prof. Dr. Hakim Abdul Hannan, Vice Chancellor, Hamdard University, Prof. Dr.<br />
Javaid A. Khan, Department of Medicine, Agha Khan University, Dr. Sara<br />
Salman, World Health Organization (W.H.O). Prof. Dr. Mohammad Javed, Dean,<br />
Faculty of Health & Medical Sciences, H.U. and Prof. Dr. Muhammad Furqan,<br />
Principal, Hamdard College of Medicine & Dentistry addressing at a seminar<br />
organized by the Department of Community Health Sciences, Hamdard College<br />
of Medicine & Dentistry, Hamdard University on the occasion of World No-<br />
Tobacco Day at Bait al Hikmah Auditorium, H.U.<br />
Mrs. Sadia Rashid, Chairperson, Hamdard Laboratories (Waqf ) Pakistan<br />
receiving Consumers Choice Award on Rooh Afza from Chairman Senate<br />
Mian Raza Rabbani at 10 Consumers Choice Award 2014 at a local hotel.<br />
Kaukab Iqbal, Chairman, Consumers Association of Pakistan and others are<br />
present on this occasion.<br />
<strong>Trade</strong> <strong>Chronicle</strong> - <strong>May</strong> - <strong>June</strong> <strong>2015</strong> - Page # 18
TRADE CHRONICLE<br />
Opening of Stoll/Nazer Demo Centre<br />
and Nazer Training Centre<br />
Holding true to its commitment to<br />
serving the Pakistani textile<br />
industry, Nazer & Co. has recently<br />
established two facilities: a flat<br />
knitting demonstration center in<br />
collaboration with H. Stoll GmbH<br />
and a training center.<br />
Through these mediums, Nazer &<br />
Co. aims to introduce the latest<br />
technological developments in<br />
Knitting, Textile Processing and<br />
Finishing to the Pakistani Textile<br />
manufacturers and processors and<br />
by doing so, help them achieve a<br />
competitive edge in an ever<br />
increasingly competitive market.<br />
The opening ceremony of these<br />
centers was held earlier this year<br />
and was well attended by many of<br />
Nazer & Co’s customers and<br />
principals.<br />
Opening of Stoll/Nazer Demo Centre (Mr. Luqman Ali Mooraj, Mr. Rizwan Fasih<br />
of RKM Knitwear, Mr. Abbas Mooraj and Mr. Thomas Hoffmann Area Sales<br />
Manager of Stoll.)<br />
Mr. Thomas Hoffmann from H.<br />
Stoll GmbH had inaugurated the<br />
Stoll Nazer Demonstration Centre<br />
while Mr. Manfred Schulte-<br />
Austum of Brückner inaugurated<br />
the Nazer Training Centre.<br />
The Nazer Stoll Demonstration<br />
Center includes three of Stoll’s<br />
latest multigauge machine; two<br />
CMS 502 HP in 3,5.2 gauge and<br />
7.2 gauge and one CMS 530HP<br />
machine in 6.2 gauge.<br />
View of training centre.<br />
The demonstration centre was<br />
established to provide training to<br />
the flat-knit produces in machine<br />
operation and flat knitting design<br />
(on Stoll’s M 1 plus software),<br />
as well as to help customers<br />
develop new innovative knitted<br />
products.<br />
The Nazer Training Centre,<br />
established with the support of<br />
Nazer & Co’s principals is a forum<br />
where seminars and training<br />
sessions will take place, introducing<br />
our customers to the latest<br />
developments in textile technology.<br />
It is through the provision of<br />
these facilities that Nazer &<br />
Co. reaffirms its commitment<br />
of support to the Pakistani<br />
Textile Industries as it has done<br />
so since its establishment in<br />
1952.<br />
<strong>Trade</strong> <strong>Chronicle</strong> - <strong>May</strong> - <strong>June</strong> <strong>2015</strong> - Page # 19
TRADE CHRONICLE<br />
At the training centre<br />
Visitors at the opening of the training centre.<br />
Opening of the Nazer Training Centre by Mr. Manfred<br />
Schulte Austum of Brueckner and Mr. Abrar Ali Mooraj of<br />
Nazer & Co.<br />
Mr. Thomas Hoffmann addressing to the guests at the opening<br />
ceremony of Stoll/Nazer Demo Centre.<br />
Guests at the opening ceremony of Stoll/Nazer Demo Centre<br />
Visitors at the opening ceremony of Stoll/Nazer Demo Centre<br />
View of the stoll machines at the stoll / Nazer Demo Centre.<br />
<strong>Trade</strong> <strong>Chronicle</strong> - <strong>May</strong> - <strong>June</strong> <strong>2015</strong> - Page # 20
TRADE CHRONICLE<br />
Port t & Shipping News<br />
German delegation<br />
visits KPT<br />
A high-level German<br />
parliamentarians delegation visited<br />
the Karachi Port Trust recently, for<br />
a briefing to gain awareness about<br />
the avenues offered by the premier<br />
port of Pakistan for investments<br />
and joint ventures, a statement said.<br />
The delegation was led by Niels<br />
Annen with other members Carey<br />
Lay, Tabea Rößner, Michael Donth,<br />
Thorsten Frei, Prof Dr Egon Jüttner,<br />
Ingrid Brenda Behrmann<br />
(conference interpreter), Monika<br />
Hein (German Foreign Office) was<br />
briefed about the management,<br />
administrative areas, functions and<br />
present / future projects of KPT.<br />
PNSC<br />
ponders ferry services<br />
Pakistan National Shipping Corporation<br />
(PNSC) held a meeting at its head office<br />
to explore the options for establishing<br />
ferry services. Proposals included a fast<br />
ferry cargo service from Pakistan to<br />
UAE, cargo cum passenger service<br />
from Karachi to Gwadar, and a special<br />
ferry for pilgrims between Karachi and<br />
Iran/Iraq.<br />
Ports and Shipping Minister Kamran<br />
Michael, Ports and Shipping<br />
Secretary Khalid Pervez, Ports and<br />
Shipping Director General Abdul<br />
Malik Ghouri, PNSC Chairman Arif<br />
Elahi, SP&PL Executive Director<br />
Capt Muhammad Sarfaraz, and<br />
private entrepreneurs, including<br />
National Management Consultants<br />
(Pvt) Ltd Chairman Dr Junaid Ahmad,<br />
Al Qaem Pilgrims, Saleem Akbar Ali,<br />
and Shoaib Shipping CEO Jawaid<br />
Iqbal attended the meeting.<br />
Chairman KPT and DG Transport Department of China are exchanging MOU<br />
folders after signing.<br />
KPT signs MoU with China<br />
A six member’s delegation of the<br />
Guangdong Province, China, led by<br />
Mr Liu Zhigeng, Vice Governor,<br />
Guangdong Province of China, visited<br />
Karachi Port Trust recently, for<br />
signing Memorandum of<br />
Understanding (MOU) for<br />
strengthening of port and shipping<br />
connectivity and for establishing<br />
cooperation between Guangdong<br />
Provincial Transportation Department<br />
and Karachi Port Trust. It was signed<br />
by Chairman KPT Vice Admiral<br />
Shafqat Jawed and Director General,<br />
Department of Transport Guangdong<br />
Province, People’s Republic of China,<br />
Mr Zeng Zhaogeng. The MOU<br />
envisages promoting cooperation in<br />
port and shipping logistics,<br />
strengthening communications and<br />
establishing closer ties between the<br />
two countries. The ceremony was<br />
well attended by Minister for Ports<br />
and Shipping Senator Kamran<br />
Michael, Chairman KPT Vice<br />
Admiral (R) Shafqat Jawed and other<br />
top officials of the Ministry of Ports<br />
and Shipping and KPT apart from the<br />
six member delegation of Guangdong<br />
Province, China, that called on<br />
Karachi Port Trust Head Office on<br />
28th <strong>May</strong>, <strong>2015</strong>.<br />
Photograph of vessel KMTC Dubai is taken on the occasion of its arrival at<br />
Karachi Port on maiden voyage. The vessel has length overall of 265 meters and<br />
is capable of carrying 5,500 TEU containers at a time is called by their agents<br />
in Pakistan – The United Marine Agency. Chairman KPT Vice Admiral Shafqat<br />
Jawed HI (M) and COMKAR Vice Admiral S. Arifullah Hussaini HI (M) are both<br />
the Chief Guests on the occasion which was attended by top officials of KPT,<br />
UMA and PICT.<br />
<strong>Trade</strong> <strong>Chronicle</strong> - <strong>May</strong> - <strong>June</strong> <strong>2015</strong> - Page # 21
TRADE CHRONICLE<br />
Karachi Port registers a<br />
record container<br />
handling<br />
Karachi Port witnessed a record<br />
handling of containers during the<br />
month ending <strong>May</strong> <strong>2015</strong> and it<br />
reflects the favourable policies<br />
practiced by Karachi Port Trust<br />
under the leadership of Chairman<br />
KPT Vice Admiral (R) Shafqat<br />
Jawed. The port has registered<br />
handling of 160,649 TEUs (Twenty<br />
Equivalent Unit) of cumulative<br />
imports and exports containers at<br />
its two terminals – the Karachi<br />
International Container Terminal<br />
(KICT) and Pakistan International<br />
Container Terminal (PICT) during<br />
the month of <strong>May</strong> surpasses the<br />
previous handling of 156,254 TEUs<br />
that it handled in the month of<br />
January <strong>2015</strong>.<br />
The breakup shows that KICT<br />
handled 45,486 TEUs of import<br />
containers and 44,592 TEUs of<br />
exports containers during the month<br />
ending <strong>May</strong> whereas the PICT<br />
handled 38,213 TEUs of import<br />
containers and 30,920 TEUs of<br />
export containers respectively from<br />
31 and 36 vessels arrived at the two<br />
terminals. Handling of containers<br />
more than their existing capacities<br />
reflects the efficient handling<br />
operations of both the private<br />
terminals.<br />
A third terminal is to commence<br />
operations soon at the deep water<br />
container port also promises to<br />
attract domestic, in-transit and<br />
transhipment traffic of containers<br />
which will further boost up the<br />
container handling efficiency of<br />
Karachi Port which is surely the<br />
premier and main port of Pakistan<br />
and provides all kind of facilities that<br />
modern trade requires.<br />
M V Zi Jingson of China Overseas Shipping Company Leaves the Gwadar Port<br />
for Jebel Ali, Dubai on 11 <strong>May</strong>, <strong>2015</strong> after loading reefer containers.<br />
First export ship leaves<br />
Gwadar<br />
The Gwadar Port, which started its<br />
operations about eight years ago, for<br />
the first time on 11 <strong>May</strong>, <strong>2015</strong><br />
handled commercial containerised<br />
cargo for export of seafood. M V<br />
Zi Jingson, a bullebrealc vessel of<br />
the China Overseas Shipping Co<br />
(Cosco) took loading and later sailed.<br />
The export shipment will be<br />
unloaded at Jebel Ali, Dubai, from<br />
where a larger ship will carry these<br />
reefer containers to Far-East with<br />
its expected destination to Malaysia<br />
and China.<br />
Federal Minister for Ports and<br />
Shipping Kamran Michael, speaking<br />
at a ceremony organised at the<br />
Gwadar port to see off the ship, said<br />
that soon Gwadar will soon be<br />
connected with its hinterland<br />
through motorway M-8 and<br />
National Highway N-85, thereby<br />
providing connectivity to upcountry<br />
and beyond to Afghanistan and<br />
Central Asian states and western<br />
China.<br />
IFC signed a memorandum with Engro Elengy Terminal for 20 percent equity in<br />
the project. The agreement was signed by members from IFC team which included<br />
Mouayed Makhlof - Regional Director IFC, Nadeem Siddiqui - Country Head of<br />
Pakistan IFC, Adil Marghub - Senior Manager, Azhar Hussain - Senior Investment<br />
Officer. Also present at the occasion were Ali Ansari - President Engro<br />
Corporation; Naz Khan, CFO Engro Corporation; Sheikh Imran Ul Haque -<br />
CEO Engro Elengy Terminal Limited amongst others.<br />
<strong>Trade</strong> <strong>Chronicle</strong> - <strong>May</strong> - <strong>June</strong> <strong>2015</strong> - Page # 22
TRADE CHRONICLE<br />
People & Events<br />
Muttahida’s Khawaja<br />
Izhar appointed<br />
opposition leader in PA<br />
Muttahida Qaumi Movement<br />
legislator Khawaja Izhar-ul-Hassan<br />
was appointed leader of the<br />
opposition in the Sindh Assembly<br />
recently.<br />
“On request of 44 members of the<br />
provincial assembly of Sindh, the<br />
speaker, in accordance of the<br />
provisions of sub-rule (3) of Rule<br />
25 of Rules of Procedure of the<br />
Provincial Assembly of Sindh, has<br />
been pleased to declare Khawaja<br />
Izhar-ul-Hassan as leader of<br />
opposition with effect from April 29,<br />
<strong>2015</strong>,” said the official notification<br />
issued by the Assembly Secretary<br />
G.M. Umar Farooq.<br />
The new opposition leader is a longtime<br />
MQM worker. His association<br />
with the MQM began in 1988 when<br />
he joined the All Pakistan Mohajir<br />
Students Organisation — the<br />
student wing of the MQM — in St<br />
Patrick’s College. He completed his<br />
MBA degree from a private institute<br />
in the metropolis and went to<br />
Malaysia in 1996 for job. The<br />
MQM gave him a party ticket for<br />
the 2008 general election from PS-<br />
99, a provincial assembly<br />
constituency comprising areas of<br />
North and New Karachi, and also<br />
retained him in the 2013 general<br />
election.<br />
Rajwana new<br />
Governor of Punjab<br />
Malik Rafique Rajwana was<br />
appointed the Governor of Punjab.<br />
The position of Punjab Governor<br />
had been lying vacant since the<br />
resignation of Chaudhry<br />
Mohammad Sarwar in January this<br />
year. Rajwana, who hails from<br />
Subhani new<br />
Engro president<br />
The Board of Directors of Engro<br />
Corporation Limited announced the<br />
appointment of Khalid Siraj Subhani<br />
as the new President and CEO of<br />
Engro Corp. Subhani takes over the<br />
company from the outgoing<br />
President and CEO Ali Ansari who<br />
served Engro for a term of three<br />
years and was responsible for<br />
effecting successful turnaround in<br />
the company’s flagship businesses,<br />
said a statement.<br />
Subhani is a seasoned industry<br />
veteran and has been with Engro<br />
for over 32 years, having started his<br />
career as an Operations Engineer<br />
with the then Exxon Chemical<br />
Pakistan Limited in 1983. He has<br />
seen the transition and growth of<br />
Engro in different roles over the<br />
years and has been a major part of<br />
Engro’s success.<br />
Multan, became a member of<br />
Senate in 1998. He became senator<br />
for the second time in 2012.<br />
Rajwana began his career as a<br />
judicial officer. He later served as<br />
an additional district and sessions<br />
judge.<br />
Rajwana was elected president<br />
of Lahore High Court Multan<br />
Bar Association in 1996.<br />
Rajwana has been a member of<br />
the Foreign Affairs, Law Justice<br />
and Human Rights, Government<br />
Assurances, Committee on Rules<br />
of Procedure and Privileges,<br />
Senate House and Devolution<br />
Process committees of the<br />
Senate.<br />
Talib elected MAP<br />
President unopposed<br />
Talib Syed Karim, Rector &<br />
Executive Director of Institute of<br />
Business Management (IoBM) was<br />
elected President, Marketing<br />
Association of Pakistan (MAP),<br />
following the Annual General Meeting<br />
of the Association held at a local hotel<br />
recently. Other office bearers elected<br />
were Syed Imran Ahmed (Vice<br />
President), Ali Hasan Naqvi<br />
(Honorary Secretary) and Sohail Aziz<br />
(Honorary Treasurer).<br />
<strong>Trade</strong> <strong>Chronicle</strong> - <strong>May</strong> - <strong>June</strong> <strong>2015</strong> - Page # 23
TRADE CHRONICLE<br />
BMA Capital promotes<br />
Mr. Mirza Kamran Baig<br />
as Head of Treasury<br />
Operations<br />
BMA Capital Management Limited,<br />
Pakistan’s premier financial services<br />
group, has promoted Mr. Mirza<br />
Kamran Baig, as Senior Vice<br />
President and Head of company’s<br />
Treasury Operations business. As<br />
Head of Treasury he will have<br />
oversight of both Fixed Income and<br />
Foreign Exchange Sales businesses<br />
of BMA Capital.<br />
Mr. Baig is an accomplished treasury<br />
services leader with over 18 years of<br />
industry experience. He was<br />
appointed in BMA Capital as Senior<br />
Dealer Money Market in October<br />
2011 and was deputed as Head of<br />
Fixed Income Sales in July 2012<br />
where he continued to develop the<br />
fixed income sales processes with his<br />
steady leadership.<br />
In this additional role Mr. Baig will<br />
be responsible for ensuring that<br />
services provided by both Fixed<br />
Income and Foreign Exchange teams<br />
continue to keep pace with the<br />
growing needs of large corporate<br />
organizations.<br />
Bilal Soofi elected WWF<br />
president<br />
The Board of Directors of the World<br />
Wide Fund for Nature-Pakistan has<br />
elected Ahmer Bilal Soofi, a<br />
renowned Supreme Court Advocate<br />
and an international law expert, as<br />
the new president. He was preceded<br />
by Khalid Mahmood, CEO of Getz<br />
Pharma (Pvt) Limited, who was the<br />
president of the organisation from<br />
<strong>June</strong> 2011 to April <strong>2015</strong>, disclosed a<br />
WWF-P's spokesperson recently.<br />
Over 140,000 Pakistanis to perform Haj this year<br />
The Haj Policy <strong>2015</strong> was announced<br />
by Religious Affairs Minister Sardar<br />
Muhammad Yousaf who said<br />
143,368 Pakistanis would perform<br />
Haj this year.<br />
Haj applications were received by<br />
10 designated<br />
banks from<br />
April 27 to<br />
<strong>May</strong> 8 and<br />
balloting of the<br />
applications<br />
took place on<br />
<strong>May</strong> 14. The<br />
applications of<br />
those who<br />
h a v e<br />
performed Haj<br />
in the past five years will not be<br />
considered.<br />
Under the policy, residents of<br />
Punjab and Khyber Pakhtunkhwa<br />
will each pay Rs264,971 and those<br />
belonging to Sindh and Balochistan<br />
Rs255,971. The policy was<br />
expected to be announced by April<br />
14 but got delayed because the<br />
prime minister could not sign the<br />
summary earlier.<br />
For the first time an option of<br />
“sacrifice” has been offered to the<br />
pilgrims; those who will prefer the<br />
government to sacrifice goats on<br />
their behalf will have to submit<br />
Rs14,210 separately, whereas those<br />
who will wish to offer the sacrifice<br />
themselves will not have to pay this<br />
amount. Addressing a Press<br />
Conference,<br />
the Minister<br />
said that half<br />
the pilgrims<br />
w o u l d<br />
perform Haj<br />
under the<br />
government<br />
scheme and<br />
the remaining<br />
through<br />
private<br />
operators.<br />
He said the pilgrims were required<br />
to carry machine-readable<br />
passports, computerised national<br />
identity cards and medical<br />
certificates during their visit to<br />
Saudi Arabia.<br />
Speaking about the arrangements<br />
in the kingdom, he said the<br />
government would provide food to<br />
the pilgrims and a contingent of 450<br />
medical personnel would be sent to<br />
assist them.<br />
Abdul Rahim Janoo, Senior Vice President of FPCCI is presenting crest to H.M.B<br />
Herath Consul General of Sri Lanka. Ikram Rajput, Waseem Vohra, Vice Presidents<br />
of FPCCI are prominent in the picture.<br />
<strong>Trade</strong> <strong>Chronicle</strong> - <strong>May</strong> - <strong>June</strong> <strong>2015</strong> - Page # 24
TRADE CHRONICLE<br />
Corruption can only be eradicated with competent human resource and<br />
effective processes: M. Zubair<br />
Pakistan’s socioeconomic potential<br />
can be unlocked by eradicating deeprooted<br />
corruption with skilled human<br />
resource, effective processes and<br />
strict compliance. Corruption does not<br />
only retard the pace of development<br />
but also hinder government’s efforts<br />
to ensure provision of social services<br />
and poverty alleviation. The present<br />
regime is making an all-out effort for<br />
sustained socioeconomic<br />
development with healthy foreign<br />
investment to subsequently achieve<br />
the vision of a strong, progressive and<br />
prosperous Pakistan.<br />
These views were expressed by<br />
Muhammad Zubair, Minister of State<br />
and Chairman Privatization<br />
Commission of Pakistan during<br />
Pakistan’s first-ever Internal Audit<br />
Summit - PIAS <strong>2015</strong>, organized by<br />
TerraBiz at a local hotel in Karachi.<br />
He was delivering his keynote entitled<br />
‘Vigilant Leadership – Challenges to<br />
Governance in Government’.<br />
The day-long conference entitled<br />
‘Governance, Risk and Compliance’<br />
is endorsed by the International<br />
Association of Financial<br />
Management, whereas ICMA<br />
Pakistan and ISACA (Karachi<br />
Pakistan's leading conference producer TerraBiz organized the first-ever<br />
Pakistan Internal Audit Summit <strong>2015</strong>. Picture shows: Farid Ahmed Khan, CEO<br />
ABL Asset Management; Yacoob Suttar, President ICAP and MD/CEO Asia<br />
Petroleum; Muhammad Zubair, Minister of State and Chairman Privatization<br />
Commission of Pakistan; Hanif Jakhura, CEO, Central Depository Company of<br />
Pakistan and Hamza Hashmi, CEO, TerraBiz.<br />
Chapter) are the knowledge partners.<br />
The conference attracted over 250<br />
professionals from internal audit,<br />
governance, risk and compliance<br />
disciplines besides participation from<br />
different audit firms.<br />
Yacoob Suttar, President ICAP and<br />
MD & CEO Asia Petroleum, during<br />
his presentation, highlighted the<br />
uniqueness of internal audit function<br />
and quoted inspiring examples based<br />
on his three decades of experience.<br />
He also presented the kind of aptitude<br />
and skillset required for internal<br />
auditing professionals to flourish in the<br />
future.<br />
Tariq Isaksson, Vice President IT<br />
Audit, Etisalat Group, UAE, during a<br />
session on ‘Impact of Information<br />
Technology on audit’, highlighted the<br />
ever growing complexities in the IT<br />
environment and presented the way<br />
IT auditors and assurance<br />
professionals can provide continuous<br />
value to their respective senior<br />
management.<br />
Group photo taken after the completion of Sandspit Beach cleaning activity jointly organized by SSGC and WWF Pakistan.<br />
Shahbaz Islam, Head of Corporate Communications SSGC and Asad Shahbaz, Corporate Relations Manager of WWF seen<br />
in the picture with their team members and the participant students .<br />
<strong>Trade</strong> <strong>Chronicle</strong> - <strong>May</strong> - <strong>June</strong> <strong>2015</strong> - Page # 25
TRADE CHRONICLE<br />
MAP held its 49th annual general meeting<br />
Khalilullah to replace<br />
Tasnim as FO<br />
spokesperson<br />
Qazi M. Khalilullah, an additional<br />
secretary, has been appointed as<br />
the spokesperson for the Ministry<br />
of Foreign Affairs, who will replace<br />
Tasnim Aslam.<br />
Foreign Office sources told media<br />
that Qazi M. Khalilullah, who is<br />
currently looking after the Middle<br />
East desk at the Foreign Office<br />
will be the new spokesperson of<br />
the Ministry. He is replacing<br />
Tasnim Aslam, who has been<br />
serving as Foreign Office<br />
spokesperson since December<br />
2013.<br />
Qazi M. Khalilullah joined the<br />
Foreign Service of Pakistan in<br />
1985. He has served at different<br />
embassies. He was posted at the<br />
Pakistan Embassy at Moscow<br />
(Russia) from 1988-1993, the<br />
Pakistan Embassy at Ashgabat<br />
(Turkmenistan) from 1993-1996,<br />
Pakistan Embassy at Kyiv<br />
(Ukraine) from 1999-2002, and<br />
Pakistan Embassy at Geneva<br />
(UN) from 2002-2005.<br />
Khalil was promoted to the rank<br />
of Ambassador of Pakistan in 2008,<br />
and has also served as<br />
Ambassador to Myanmar.<br />
Management Association of Pakistan<br />
(MAP) held their 49th Annual<br />
General Meeting on 27th<br />
April <strong>2015</strong> in Karachi.<br />
The following members<br />
were declared elected<br />
unopposed as members<br />
of the Executive<br />
Committee for the<br />
period <strong>2015</strong>-2018.<br />
Ms. Saadia Naveed,<br />
Syed Masood Hashmi ,<br />
Mr. Asif Ikram, Mr. Sarmad Ali, Mr.<br />
Amir Jamil Abbasi, Mr. Sarfaraz<br />
Ahmed Rehman, Mr. Talib Syed<br />
Karim, Mr. Babar Bashir Nawaz,<br />
Syed Salahuddin Haider and Mr.<br />
Humayun Bashir.<br />
Subsequently, the newly-elected<br />
Executive Committee convened its<br />
Muhammad Naeem has been<br />
appointed as Chairman Pakistan<br />
Atomic Energy Commission<br />
(PAEC) for a period of three years.<br />
He was previously working in the<br />
capacity of Member Fuel Cycle in<br />
PAEC. Naeem brings to his key<br />
assignments, rich academic<br />
accomplishments, a wealth of<br />
professional experience and an<br />
unwavering commitment.<br />
Muhammad Naeem succeeded Dr<br />
Ansar Parvez who remained<br />
chairman of PAEC for six years.<br />
Muhammad Naeem joined PAEC<br />
Syed Masood Hashmi<br />
meeting on the same day and<br />
unanimously elected the following<br />
Office bearers of<br />
MAP for the year<br />
<strong>2015</strong>:<br />
Syed Masood Hashmi,<br />
President; Mr. Asif Ikram,<br />
Vice President; Mr. Amir<br />
J. Abbasi, Honorary<br />
Secretary; Mr. Sarmad Ali,<br />
Honorary Treasurer.<br />
The newly elected<br />
Executive Committee and the Office<br />
bearers renewed their resolve to<br />
reinvigorate the MAP’s vision of<br />
leading the change process towards<br />
best management practices by<br />
actively pursuing MAP activities for<br />
their membership and to emphasize<br />
upon a better coverage of MAP<br />
activities all over Pakistan.<br />
Muhammad Naeem appointed PAEC chief<br />
on November 18, 1972 and served<br />
in various responsible positions. In<br />
recognition of his meritorious<br />
services, he was decorated with<br />
Sitara-e-Imtiaz and Hilal-e-Imtiaz.<br />
He contributed significantly in<br />
country's nuclear fuel cycle<br />
projects. Muhammad Naeem is the<br />
eighth chairman of PAEC since its<br />
inception. Dr Nazir Ahmad, Dr I H<br />
Usmani, Munir Ahmed Khan, Dr<br />
Ishfaq Ahmad, Parvez Butt, Anwar<br />
Ali and Dr Ansar Parvez have<br />
served the Commission in the same<br />
capacity, earlier.<br />
<strong>Trade</strong> <strong>Chronicle</strong> - <strong>May</strong> - <strong>June</strong> <strong>2015</strong> - Page # 26
TRADE CHRONICLE<br />
Pakistan’s first real estate fund launched at KSE<br />
Auditor general<br />
takes oath<br />
Chief Justice Nasir-ul-Mulk has<br />
administered the oath of office to<br />
Rana Asad Ameen as Auditor<br />
General of Pakistan at a simple but<br />
dignified ceremony recently.<br />
Sherry Rehman elected<br />
senator unopposed<br />
Pakistan People’s Party vice president<br />
Sherry Rehman was elected senator<br />
from Sindh unopposed recently. She<br />
will serve as senator till 2018.<br />
She was born on December 21, 1960<br />
in Karachi. She was educated at the<br />
Smith College and later at the<br />
University of Sussex where she<br />
studied arts, history and political<br />
science.<br />
She served as an MNA from 2002 to<br />
2007 and the central information<br />
secretary to PPP.<br />
Arif Habib Dolmen REIT<br />
Management Limited launched<br />
Pakistan’s first Real Estate<br />
Investment Trust (REIT), Dolmen<br />
City REIT at the Karachi Stock<br />
Exchange recently.<br />
Chief Guest Syed Murad Ali Shah,<br />
Advisor to Chief Minister for<br />
Finance, said, “The launch of<br />
Dolmen City REIT is a matter of<br />
great pride for all of us, as this is<br />
not just Pakistan’s first Real Estate<br />
Investment Trust scheme but also<br />
of all the Sub-continent.”<br />
REIT is modelled after mutual<br />
funds and provides investors with<br />
regular income streams,<br />
diversification and long-term capital<br />
appreciation.<br />
“I expect enthusiastic participation<br />
from investors during the Book<br />
Building, which is on <strong>June</strong> 8 and 9,<br />
<strong>2015</strong>, and also from the general<br />
public who can participate in the<br />
IPO on <strong>June</strong> 12,” Murad said.<br />
Dolmen City REIT is a closedended,<br />
Shariah compliant rental<br />
REIT which offers investors the<br />
opportunity to become unit holders<br />
of two components of the Dolmen<br />
City project, Dolmen Mall Clifton<br />
and The Harbour Front.<br />
The properties will generate rental<br />
income that will be distributed by<br />
the REIT Scheme among unit<br />
holders in the shape of dividends.<br />
Any possible appreciation in the<br />
value of the property will be an<br />
added benefit.<br />
Arif Habib Dolmen REIT<br />
Management Limited is a joint<br />
venture between the Arif Habib<br />
Group and the Dolmen Group.<br />
Arif Habib Group Chairman Arif<br />
Habib, Dolmen Group Chairman<br />
Nadeem Riaz, KSE Chairman<br />
Muneer Kamal, KSE Managing<br />
Director Nadeem Naqvi, Arif<br />
Habib Dolmen REIT Management<br />
Limited Chairman Nasim Beg,<br />
Arif Habib Dolmen REIT<br />
Management Limited CEO<br />
Muhammad Ejaz, and Arif Habib<br />
Limited CEO Shahid Habib<br />
attended the event.<br />
<strong>Trade</strong> <strong>Chronicle</strong> - <strong>May</strong> - <strong>June</strong> <strong>2015</strong> - Page # 27
TRADE CHRONICLE<br />
SSGC signs MoUs with five<br />
non-profit organizations<br />
Khalid Rahman MD SSGC has said<br />
sustainability is a driving force in<br />
making a marked difference in the<br />
lives of the marginalized communities.<br />
He was speaking after a MoU signing<br />
ceremony for SSGC’s CSR initiatives<br />
(2014-15) held at the Head Office<br />
auditorium recently.<br />
The MD SSGC inked the MoUs with<br />
respective representatives of five<br />
leading organisations in education and<br />
health sector including IBA Karachi,<br />
Mehran University of Engineering<br />
and Technology (MUET) Jamshoro,<br />
Quaid-e-Awam University of Science<br />
and Technology (QUEST)<br />
Nawabshah, Marie Adelaide Leprosy<br />
Centres in Gwadar and Mirpurkas<br />
and Al-Hijrah Schools, Ziarat.<br />
Mr. Khalid Rahman<br />
MD of SSGC<br />
The MoU signing ceremony marked<br />
implementation phase of the<br />
company’s CSR initiatives in the areas<br />
of education and health. In the case<br />
of IBA Karachi, MUET, QUEST and<br />
Al-Hijrah Schools, SSGC will provide<br />
scholarships for students in different<br />
disciplines for the period of four years<br />
while the Company’s monetary<br />
support to the two branches of<br />
MALC will help the disease control<br />
centre in running its operations more<br />
effectively.<br />
Exchange of MoU documents was<br />
followed by a cheque distribution<br />
ceremony during which the MD,<br />
SSGC distributed cheques to thirteen<br />
other CSR collaborators with SSGC.<br />
Earlier, Shahbaz Islam, Head of<br />
Corporate Communications, SSGC<br />
gave a comprehensive presentation to<br />
the audience about the CSR initiatives<br />
in the Company. Salman A Siddiqui,<br />
DGM (Corporate Communications)<br />
presented a vote of thanks.<br />
<strong>Trade</strong> <strong>Chronicle</strong> - <strong>May</strong> - <strong>June</strong> <strong>2015</strong> - Page # 28
TRADE CHRONICLE<br />
18 Years of Businessmen Group’s Public Service<br />
Siraj Teli criticises GIDC<br />
Chairman Businessmen Group<br />
(BMG) and Former President of the<br />
Karachi Chamber of Commerce and<br />
Industry (KCCI), Siraj Kassam Teli,<br />
has strongly criticised the passage of<br />
Gas Infrastructure Development Cess<br />
(GIDC) Bill <strong>2015</strong> by the Senate.<br />
He was speaking at a dinner<br />
reception organised by the Karachi<br />
Chamber of Commerce and Industry<br />
(KCCI) and the Businessmen Group<br />
(BMG) to mark 18 years of Public<br />
Service of Businessmen Group from<br />
KCCI’s platform.<br />
Vice Chairmen BMG, Zubair<br />
Motiwala, Haroon Farooki, Anjum<br />
Nisar, President KCCI Iftikhar<br />
Ahmed Vohra, Senior Vice President<br />
KCCI, Muhammad Ibrahim<br />
Kasumbi, Vice President KCCI Agha<br />
Shahab Ahmed Khan, Former<br />
Presidents KCCI AQ Khalil, M.<br />
Haroon Bari, Khalid Firoz, Majyd<br />
Aziz, Muhammad Saeed Shafiq, Mian<br />
Abrar Ahmed, Abdullah Zaki and<br />
KCCI Managing Committee were<br />
also present on the occasion.<br />
Highlighting the journey of<br />
Businessmen Group since 1998, Siraj<br />
Teli stated that due to clear policy of<br />
Public Service and implementation of<br />
transparent policies, KCCI has<br />
succeeded in restoring the<br />
confidence of the entire business<br />
community and today’s immense<br />
participation of thousands of<br />
supporters to celebrate 18 years of<br />
BMG’s success is a testimony of our<br />
commitment and truthfulness<br />
towards resolving the issues being<br />
faced by the business community of<br />
Karachi.<br />
Vice Chairmen BMG Zubair Motiwala, Haroon Farooki, Anjum Nisar, President<br />
KCCI Iftikhar Ahmed Vohra, Senior Vice President KCCI, Muhammad Ibrahim<br />
Kasumbi, Vice President KCCI Agha Shahab Ahmed Khan and Former President<br />
KCCI AQ Khalil presenting KCCI Model to Chairman BMG Siraj Kassam Teli<br />
at a dinner reception hosted at PAF Convention Center to mark the 18 years of<br />
BMG’s Public Relations<br />
Speaking on the occasion, Zubair<br />
Motiwala said that implementation of<br />
GIDC Bill <strong>2015</strong> will raise gas prices<br />
by 35 percent, which will create<br />
serious problems for many industrial<br />
units, enhance unemployment and<br />
make Pakistani products<br />
uncompetitive in the international<br />
markets.<br />
On the occasion, Vice Chairman<br />
BMG Haroon Farooki, while<br />
appreciating the initiatives taken by<br />
BMG Chairman, opined that thanks<br />
to BMG’s clear and transparent<br />
policies, they have succeeded in<br />
getting rid of all back doors and other<br />
malpractices at KCCI prior to BMG’s<br />
arrival.<br />
Vice Chairman BMG, Anjum Nisar,<br />
while expressing deep concerns over<br />
passing of GIDC Bill <strong>2015</strong>, urged the<br />
government that instead of taking such<br />
negative steps, the government should<br />
focus on improving the overall<br />
infrastructure of city and ensure<br />
uninterrupted gas, water and<br />
electricity supply to industries at<br />
competitive rates so that they could<br />
efficiently compete in the<br />
international markets. He also<br />
stressed the need to give due share<br />
to Karachi according to its<br />
contribution to the national exchequer.<br />
Earlier, President KCCI Iftikhar<br />
Ahmed Vohra, in his welcome<br />
remarks, said that 18 years of BMG<br />
success at KCCI and the unopposed<br />
victories during the past 8 years<br />
clearly depict the trust and confidence<br />
of the entire business community of<br />
Karachi over the transparent policies<br />
of Businessmen Group under the<br />
leadership of Siraj Teli. “All BMGians<br />
at KCCI have been dedicatedly<br />
discharging their services under the<br />
slogan of “Public Service” and the<br />
office bearers are strictly directed to<br />
listen to and resolve the genuine issues<br />
of any businessman or industrialist<br />
who climbs KCCI’s stairs for<br />
assistance”, he added.<br />
<strong>Trade</strong> <strong>Chronicle</strong> - <strong>May</strong> - <strong>June</strong> <strong>2015</strong> - Page # 29
TRADE CHRONICLE<br />
Leather Industry<br />
Concern Over Decline in Leather Export<br />
Chairman, PTA, Mr. Muhammad<br />
Musaddiq has expressed concern<br />
over downward trend in export of<br />
Leather and Leather Products from<br />
Pakistan in spite of facility of GSP<br />
plus status to Pakistan. He in a<br />
statement said despite many hurdles<br />
in exploring the export as per<br />
aspiration of the Prime Minister of<br />
Pakistan, the Leather Industry with<br />
dedication and hard work<br />
successfully organized first Pakistan<br />
Mega Leather Show in Lahore<br />
International Expo Centre during 6-<br />
8 th March, <strong>2015</strong> alongwith other<br />
leather related associations and allied<br />
services to accentuate the image of<br />
Pakistan world-wide.<br />
He stated that neighboring countries<br />
like China, India and Bangladesh<br />
have registered considerable increase<br />
‘PTA members filing<br />
100pc tax returns’<br />
Pakistan Tanners Association<br />
(PTA) members are filing 100<br />
percent income tax returns,<br />
Association Chairman Muhammad<br />
Musaddiq said in a statement<br />
recently.<br />
He said the Pakistan Tanners<br />
Association members have<br />
national tax numbers (NTN)<br />
certificates and are filing 100<br />
percent of their obligations by<br />
paying one percent income tax on<br />
export proceeds through banks,<br />
besides paying other taxes such as<br />
sales tax, advance tax, income tax<br />
at the import stage, customs duties,<br />
excise duties etc, on a regular basis.<br />
in its export of Leather & Leather<br />
Products as 4%, 18% and 32%<br />
respectively while the export of<br />
Leather & Leather Products from<br />
Pakistan is still stagnant @ US$ 1<br />
billion since last several years and<br />
drastically is decreasing during the<br />
period of current financial year July-<br />
February 2014-15 by 1.63% as<br />
“The leather industry (tanners)<br />
mostly depends on imported<br />
machines, imported chemicals and<br />
spare parts to produce best quality<br />
value-added leather as per the<br />
foreign customers’ demands,”<br />
Musaddiq said.<br />
The Pakistan Tanners Association<br />
chairman said the members had<br />
already paid more income tax than<br />
their liability, as million of rupees on<br />
account of income tax refund claims<br />
after adjusting their annual tax<br />
liability are still lying with the Income<br />
Tax Department.<br />
The export of tanned leather /<br />
finished leather for the period of<br />
July-<strong>June</strong> (2013/14) was $551 million<br />
of the total export proceeds of<br />
leather sector, he added.<br />
compared to the same period of last<br />
year which is alarming.<br />
He urged the Government to take<br />
stock of the situation causing decline<br />
in export of the value-added leather<br />
industry and increasing cost of doing<br />
business as well as lesser<br />
compatibility against competitors.<br />
He highlighted following major hurdles<br />
of the dwindling Leather Industry<br />
which need preferential attention for<br />
its revival. Due to regional devaluation<br />
of currency, cost of doing business,<br />
high cost of energy in Pakistan, to<br />
allow Zero Rating Sales Tax Status to<br />
Leather Industry while all regional<br />
countries keep zero rating of taxes on<br />
exports whereas there are multiple tax<br />
regimes in Pakistan and export industry<br />
is dying with slow poisoning.<br />
PTA hails federal<br />
budget<br />
Pakistan Tanners<br />
Association (PTA)<br />
has announced that<br />
with the continued<br />
support of Mr.<br />
S.M. Muneer,<br />
Chief Executive, <strong>Trade</strong><br />
Development Authority (TDAP)<br />
as well as cooperation and support<br />
of all the three leather related<br />
Associations i.e. PLGMEA,<br />
PFMA and PGMEA, the<br />
Government has granted<br />
exemption of Sales Tax on local<br />
supply of raw hides and skins in<br />
the Federal Budget <strong>2015</strong>-16, which<br />
was announced on 5th <strong>June</strong>, <strong>2015</strong><br />
under Financial Bill <strong>2015</strong>.<br />
<strong>Trade</strong> <strong>Chronicle</strong> - <strong>May</strong> - <strong>June</strong> <strong>2015</strong> - Page # 30
TRADE CHRONICLE<br />
Cement Industries<br />
Federal Budget looks positive for Cement Industry<br />
by Abdul Rab Siddiqi<br />
Pakistan federal budget has some<br />
direct and indirect incentives for<br />
cement industry for next fiscal year<br />
<strong>2015</strong>-16 (July – <strong>June</strong>), which will<br />
increase demands for cement in<br />
country. Finance Minister Ishaq Dar<br />
has proposed enhancement of duty on<br />
import of cement, rationalization of tax<br />
structure for construction industry/<br />
housing development, significant rise<br />
of 27 percent in PSDP allocation, 5-<br />
year tax holiday for establishing new<br />
manufacturing facility in Northern<br />
Province and reduction in corporate<br />
tax by 1 percent which are positive<br />
steps for industry. But on negative note,<br />
the government proposes increase in<br />
duty on import of coal.<br />
A view of cement Plant.<br />
Duty on import of cement:<br />
While talking about the cement<br />
industry, the finance minister stressed<br />
the importance of protecting the local<br />
industry, adding that duty imposed on<br />
cement is only on imports. He labeled<br />
the duty on cement imports as<br />
"preemptive action" to promote the<br />
local industry and avoid cement<br />
dumping.<br />
The Portland cement attracts 1 percent<br />
customs duty whereas other cements<br />
are subject to 20 percent customs duty.<br />
Surge in import of Portland cement is<br />
hurting local industry. To protect local<br />
industry, it is proposed that customs<br />
duty on Portland cement (PCT code<br />
2523.2900) be increased from 1<br />
percent to 20 percent. According to<br />
industry sources, this will help<br />
companies to amplify their sales<br />
locally. Iranian cement imports will be<br />
discouraged by the measure.<br />
PSDP:<br />
Total Public Sector Development<br />
Expenditures amplified by 27 percent<br />
as compared to previous year budget<br />
estimates. Total federal PSDP outlay<br />
estimates in current budget grew by<br />
33% to PKR700bn and provisional<br />
share increase to PKR814bn<br />
(depicting a rise of 25%). Massive<br />
allocation in line with China Pakistan<br />
Economic Corridor (CPEC) and many<br />
mega projects announced by federal<br />
government which include highways,<br />
power generation, infrastructure<br />
development, and dams. The increase<br />
in PSDP will have a positive impact<br />
on cement sector as the demand of<br />
cement will increase.<br />
Incentives to construction<br />
industry:<br />
The government proposed suspension<br />
of minimum tax on builders, supply of<br />
bricks and crushed stone will be<br />
exempted from sales tax for three<br />
years. The government also<br />
announced reduction in import duty of<br />
construction machinery to 10 percent.<br />
The pro-housing sector measures such<br />
as housing credit and increased<br />
deduction allowed on house loan<br />
mark-up etc. All these measures will<br />
bring down construction cost and the<br />
construction activities will boom as a<br />
result of reduction.<br />
Duty on Coal:<br />
According to finance bill, Coal attracts<br />
1 percent customs duty. Since all other<br />
fuels attract higher duty rates, it is<br />
proposed that customs duty on Coal<br />
(PCT code 2701.1200 and 2701.1900)<br />
be increased from 1 percent to 5<br />
percent. The industry will comfortably<br />
pass on (PKR2.0/bag -PKR3.5/bag)<br />
to the end consumers.<br />
<strong>Trade</strong> <strong>Chronicle</strong> - <strong>May</strong> - <strong>June</strong> <strong>2015</strong> - Page # 31
TRADE CHRONICLE<br />
Cement Companies<br />
Financal Reports<br />
LUCKY CEMENT: The company<br />
announced 9MFY15 consolidated<br />
earnings at Rs10.3bn (eps Rs31.8),<br />
up 20pc YoY. The results beat<br />
market consensus estimates. On a<br />
standalone basis, Lucky reported<br />
9MFY15 eps of Rs28.8, up 14pc<br />
YoY.<br />
Supported by 4pc volumetric<br />
growth in cement sales and 1pc<br />
growth in net retention price, the<br />
topline of the company grew 5pc to<br />
Rs33.1bn versus Rs31.4bn in<br />
9MFY14. On a quarterly basis, net<br />
earnings improved by 14pc YoY to<br />
Rs9.3bn. On a consolidated basis,<br />
Lucky’s net earnings grew by 20pc<br />
YoY in 9MFY15. The growth<br />
emanated from its subsidiary ICI<br />
Pakistan and joint venture<br />
operations of cement grinding mill<br />
in Iraq.<br />
Local volumes grew 7pc to 3.1m<br />
tonnes in 9MFY15 compared to 3m<br />
tonnes in the same period last year.<br />
However, export sales during the<br />
same period declined by 0.5pc to<br />
1.85m tonnes from 1.86m tonnes a<br />
year ago.<br />
DG KHAN CEMENT: DGKC<br />
announced 9MFY15 consolidated<br />
earnings of Rs5.6bn (eps Rs12.8),<br />
up 42.5pc YoY. The results were<br />
above market consensus estimates.<br />
On a standalone basis, DGKC<br />
recorded revenue of Rs18.9bn (eps<br />
Rs12.3) in 9MFY15, as against<br />
Rs19.6bn (eps Rs9) last year, down<br />
3pc YoY.<br />
Total cement dispatches declined by<br />
5pc due to lower exports. However,<br />
local dispatches were higher on the<br />
back of robust growth in private<br />
Bestway acquires<br />
Lafarge cement plant<br />
Bestway Cement Limited, a<br />
subsidiary of Bestway Group,<br />
has taken over Lafarge Cement<br />
plant located near Kallar Kahar,<br />
Chakwal in Punjab.<br />
To mark the acquisition, a<br />
ceremony was held at the plant<br />
recently, which was attended by<br />
Sir Anwar Pervez, the owner of<br />
Bestway Group and Amr Ali<br />
Reda, the CEO of Lafarge<br />
Pakistan, among others.<br />
The announced assumption of<br />
management control of Lafarge<br />
Pakistan Cement Limited by<br />
Bestway is followed by the<br />
latter’s successful bid for 75.86<br />
per cent of Lafarge Pakistan’s<br />
sector demand and commencement<br />
of mega construction projects<br />
across the country.<br />
In 9MFY15, financial charges<br />
witnessed a decline of 56pc,<br />
resulting in a 24pc YoY increase in<br />
profit before tax to Rs6.5bn. On a<br />
quarterly basis, net earnings in<br />
3QFY15 increased by 55pc YoY to<br />
Rs2bn, primarily due to Rs17 per<br />
bag decline in cost of goods,<br />
resulting in 600bps increase in gross<br />
margins to 36pc.<br />
MAPLE LEAF CEMENT:<br />
MLCF announced 9MFY15<br />
earnings at Rs2.3bn (eps Rs4.4)<br />
down 3pc YoY, in line with market<br />
shares for an enterprise value of<br />
$329 million in July 2014.<br />
Bestway Cement also acquired<br />
another 12.07pc shares of the<br />
company through the public<br />
offer process taking its<br />
shareholding in Lafarge Pakistan<br />
to 87.93pc.<br />
The acquisition of Lafarge<br />
Pakistan’s 2.5 million tonnes per<br />
annum cement plant by the<br />
Bestway Cement will make it a<br />
major cement manufacturer in<br />
Pakistan with a total capacity of<br />
more than 8 million tonnes per<br />
annum, representing 18pc of the<br />
total cement manufacturing<br />
capacity in the country. Zameer<br />
Choudrey, Bestway Group’s<br />
Chief Executive, expressed his<br />
commitment to invest $30 million<br />
in the acquired company.<br />
consensus estimates. However,<br />
pre-tax profit increased by 29pc.<br />
Key takeaways highlighted by<br />
analyst Nabeel Khursheed at<br />
Topline included: in 9MFY15,<br />
MLCF recorded revenue of Rs15bn<br />
as against Rs13.7bn last year which<br />
was up 9pc, led by 9pc increase in<br />
volumetric sales to 2.1m tonnes<br />
compared to 1.9m tonnes in<br />
9MFY15.<br />
However, average net retention<br />
prices remained flat at Rs363 per<br />
bag. Financial charges on the other<br />
hand witnessed a decline of 22pc<br />
in 9MFY15. To highlight, MLCF has<br />
considerably reduced its debt by<br />
Rs6.1bn in the last two years.<br />
<strong>Trade</strong> <strong>Chronicle</strong> - <strong>May</strong> - <strong>June</strong> <strong>2015</strong> - Page # 32
TRADE CHRONICLE<br />
Telecommunication News<br />
Mobilink signs Huawei to install Pakistan’s First<br />
100Gbps Optical Network<br />
Mobilink appoints<br />
new CTO<br />
Mobilink has appointed Khalid<br />
Shahzad as Chief Technology Officer<br />
in place of Gabriele Sgarglia, a<br />
statement said recently.<br />
Shahzad is an experienced telecom<br />
professional and had served<br />
Motorola, Millicom International<br />
Cellular, Western Wireless<br />
International, PTML, Celtel<br />
International, Telenor Pakistan and<br />
CTO for DTAC, Telenor’s Operation<br />
in Thailand. Khalid Shehzad will take<br />
over from July 1 this year, the<br />
statement said.<br />
Telenor celebrates 10th<br />
anniversary<br />
Telenor is celebrating 10 years of<br />
successful operations in Pakistan<br />
and the anniversary is being<br />
celebrated as ’10 Years of<br />
Empowering Pakistan’ in line with<br />
the company’s vision.<br />
Michael Foley, Chief Executive<br />
Officer, Telenor Pakistan said, “We<br />
strongly believe that our business<br />
is linked with positive socioeconomic<br />
impact, we have been at<br />
the forefront of disseminating<br />
benefits of Information and<br />
Communication Technology in the<br />
form of GSM advancement,<br />
financial inclusion and bringing<br />
internet for all in Pakistan,”.<br />
Jeffery Hedberg, CEO Mobilink, Aragon Meng, CEO Huawei Pakistan and Ali<br />
Shi, President Huawei Middle East along with their teams at the contract signing<br />
for the deployment of Pakistan’s first 100 Gigabytes per secound Optical Transport<br />
Network.<br />
Mobilink has awarded a contract to<br />
China-based telecoms equipment<br />
manufacturer Huawei to upgrade its<br />
existing network to 100 Gigabytes per<br />
second (Gbps) Optical Transport<br />
Network (OTN), a first of its kind in<br />
Pakistan. The 100Gbps OTN will be<br />
deployed across a long haul fiber<br />
network on a nationwide basis which<br />
shall facilitate Mobilink in fulfilling the<br />
ever growing data and speed<br />
requirements of subscribers and<br />
guarantee the introduction of<br />
differentiated services in a bid to<br />
remain Pakistan’s number one Telco.<br />
The decision by Mobilink to upgrade<br />
its nationwide optical network will<br />
ensure an improved experience for<br />
its subscribers through the availability<br />
of greater bandwidth, efficiency and<br />
reliability. With the rapid development<br />
of mobile broadband services,<br />
Mobilink believes the time is right to<br />
build a technically advanced network<br />
that covers a full range of services<br />
and provides ultra-bandwidth and<br />
efficient use of network resources.<br />
“Customer satisfaction is Mobilink’s<br />
first priority on all fronts of our business.<br />
In view of the changing customer<br />
requirements and the exponential<br />
growth of data traffic on our network<br />
we have chosen Huawei to install<br />
Pakistan’s most advanced optical<br />
network for Mobilink.” said Jeffrey<br />
Hedberg, President & CEO Mobilink.<br />
CEO of Huawei Pakistan, Aragon<br />
Meng said, ‘’Once the 100 Gbps<br />
OTN is deployed, services like supersized<br />
cloud storage and Ultra High<br />
Definition (UHD) videos will be<br />
available to Mobilink users across the<br />
country, while corporate clients will<br />
be able to access huge amounts of<br />
bandwidth to satisfy their growing<br />
enterprise data and analytics<br />
requirements.”<br />
<strong>Trade</strong> <strong>Chronicle</strong> - <strong>May</strong> - <strong>June</strong> <strong>2015</strong> - Page # 33
TRADE CHRONICLE<br />
PTCL announces 15pc<br />
cash dividend<br />
Pakistan Telecommunication<br />
Company Limited (PTCL) has<br />
announced final cash dividend of 15%<br />
amounting to Rs 1.50 per share, which<br />
is a reflection of the strong results<br />
achieved during the year ended 31st<br />
December 2014. The dividend is in<br />
addition to the interim cash dividend<br />
of 10% amounting to Rs 1.00 per<br />
Ordinary Share, earlier declared and<br />
already paid to the shareholders.<br />
Walid Irshaid, President and CEO<br />
PTCL, members of PTCL Board of<br />
Directors along with senior<br />
management of PTCL Group also<br />
attended the Annual General Meeting.<br />
Azmat Ali Ranjha, Chairman PTCL<br />
Board of Directors while thanking the<br />
shareholders said, “The last year’s<br />
performance is a testament to PTCL<br />
management’s resolve and<br />
unwavering focus of its employees to<br />
further enhance the company’s<br />
profitability. Based on the current solid<br />
foundation, we are committed to<br />
maximize the shareholders’ value by<br />
bringing innovation in our products and<br />
services.” Commenting on PTCL’s<br />
role as the national carrier, He said,<br />
“Being the carrier of choice in highspeed<br />
broadband regime, last year<br />
proved to be another successful year<br />
for the company as it continued to grow<br />
its subscriber base and product<br />
portfolio, uplifting the nation through<br />
leading the digitization revolution. He<br />
said that PTCL is not only expanding<br />
geographically, but also in terms of<br />
products, services and quality of<br />
experience. Being the only integrated<br />
ICT service provider, PTCL is striving<br />
to maintain its competitive edge in the<br />
corporate segment. PTCL plans to<br />
stride beyond the traditional<br />
connectivity provider by offering 21st<br />
century ICT services.<br />
Picture shows Sajid Mehmood - Chief Regulatory Officer, Zong alongwith PTA<br />
representatives and Zong Regulatory Team at training session arranged for<br />
PTA on Quality of Service.<br />
Zong conducts<br />
interactive training for<br />
PTA on QoS KPI<br />
through OSS Monitoring<br />
Zong, Pakistan’s most advanced and<br />
only 3G & 4G network, recently<br />
held a training session with the<br />
theme “Growing Together Through<br />
Knowledge Sharing” at Zong<br />
Complex.<br />
The objective of this session was to<br />
create awareness about Quality of<br />
Service (QoS) based Key<br />
Performance Indicators (KPI)<br />
testing as per license conditions, as<br />
well as to suggest a replacement to<br />
extensive drive tests throughout the<br />
Pakistan’s total teledensity, including<br />
Fixed Local Line (FLL), Wireless<br />
Local Loop (WLL), and cellular<br />
decreased to 76.65 percent from<br />
79.89 percent in the year 2013-14,<br />
said a statement recently.<br />
FLL and WLL subscriber density in<br />
Pakistan, at the end of February <strong>2015</strong>,<br />
stood at 1.73 percent and 1.69<br />
percent, respectively. Cellular density<br />
reached 73.2 percent in February<br />
<strong>2015</strong>, after touching its peak of 76.5<br />
percent in <strong>June</strong> 2014, according to<br />
PTA’s indicators. The decline was<br />
primarily due to government’s<br />
Teledensity falls by 3.24pc<br />
whole year for Pakistan<br />
Telecommunication Authority (PTA).<br />
With reference to the event, Sajid<br />
Mahmood Chief Regulatory Officer<br />
(CRO) Zong noted that “The<br />
importance of achieving a certain<br />
degree of regulatory harmonization<br />
must be acknowledged for the<br />
progression of Pakistan’s telecom<br />
industry.” He further expressed how<br />
Zong will continue to take the lead in<br />
conducting such initiatives. “Zong<br />
shall endeavor to engage in and<br />
conduct further such educational<br />
activities, and hopes that our<br />
Regulator’s participation in today’s<br />
session will be mirrored in all such<br />
future sessions, enabling both the<br />
industry and PTA to benefit from<br />
such learnings.”<br />
initiative on biometric verification of<br />
Subscriber Identity Module (SIMs) so<br />
that illegal or unregistered SIMs could<br />
be blocked. It is estimated this will<br />
fall further to 70 percent, since the<br />
SIM verification deadline expired on<br />
April 12, <strong>2015</strong>, said Tahir Saeed,<br />
analyst at Topline Research.<br />
Broadband subscribers including 3G,<br />
4G and Long Term Evolution, surged<br />
273 percent to 12.5 million during the<br />
last 12 months. Excluding next<br />
generation technology subscribers;<br />
however, the base grew just by three<br />
percent to 3.5 million during the<br />
aforementioned period.<br />
<strong>Trade</strong> <strong>Chronicle</strong> - <strong>May</strong> - <strong>June</strong> <strong>2015</strong> - Page # 34
TRADE CHRONICLE<br />
Oil & Gas Industries<br />
PPL earns Rs. 7.808<br />
billion in 1Q <strong>2015</strong><br />
Pakistan Petroleum Limited (PPL)<br />
has announced a net profit of Rs7.808<br />
billion, translating in the earnings per<br />
share (EPS) of Rs3.96 for the quarter<br />
ended March 31, <strong>2015</strong>, says a<br />
company statement, recently.<br />
The company had posted a profit of<br />
Rs10.576 billion and EPS of Rs5.36<br />
in the same quarter last year.<br />
The sales revenue for the quarter<br />
under review stood at Rs23.039 billion<br />
as against Rs30.764 billion in the<br />
corresponding quarter last year, it<br />
said.<br />
Shahbaz Ashraf at Arif Habib<br />
Limited said the decline in profitability<br />
was due to higher field expenditures<br />
and lower oil prices, resulting in net<br />
revenues to decrease by 15.4 percent.<br />
In addition, the effective taxation for<br />
the quarter stood at 26 percent as<br />
compared to 37 percent in the<br />
previous quarter.<br />
“During the quarter, the company<br />
posted net sales of Rs22.704 billion,<br />
a decline of 15.4 percent attributable<br />
to 31 percent lower oil prices, despite<br />
oil production recording an uptick of<br />
one percent, whereas gas production<br />
remained flat.”<br />
“Field expenditures increased to<br />
Rs11.007 billion, a rise of 26.1<br />
percent. The field expenditures were<br />
higher than the market expectations,<br />
which aided the company to book<br />
earnings lower-than-expectation<br />
earnings.”<br />
For the nine-month period ended<br />
March 31, <strong>2015</strong>, PPL posted a net<br />
profit of Rs30.454 billion as against<br />
the profit of Rs37.193 billion in the<br />
same period last year.<br />
OGDCL earns Rs20.2bn<br />
in Jan-March<br />
The Oil and Gas Development<br />
Company Ltd (OGDCL) recorded an<br />
after-tax profit of<br />
Rs20.2 billion<br />
during Jan-March,<br />
a quarter-onquarter<br />
rise of 3.4<br />
per cent from<br />
Rs19.5bn (eps<br />
Rs4.54).<br />
This took its July-<br />
March after-tax<br />
profit to Rs68bn (eps 15.81)<br />
compared to Rs90bn (eps Rs21.14)<br />
a year earlier.<br />
“The nominal increase on a QoQ<br />
basis is due to lower exploration<br />
expense, higher than expected other<br />
income and lower taxation,” said<br />
analyst Shahbaz Ashraf at Arif Habib<br />
Limited.<br />
The company also declared third<br />
interim cash dividend of Rs1.75 per<br />
share, taking nine-month cash<br />
dividend to Rs6.25 per share.<br />
During Jan-March,<br />
the company posted<br />
net sales of<br />
Rs44,049m, a<br />
decline of 22pc<br />
QoQ attributable to<br />
31pc lower oil prices<br />
despite both oil and<br />
gas production<br />
exhibiting an uptick<br />
of 1pc and 2pc,<br />
respectively. Effective taxation was<br />
recorded at 29pc in 3Q compared to<br />
41pc recorded in 2Q.<br />
SNGPL gets Rs 17.7<br />
billion financing<br />
Sui Northern Gas Pipelines Limited<br />
(SNGPL) has entered into loan<br />
agreement worth Rs 17.70 billion<br />
with a consortium of banks led by<br />
Bank Alfalah Limited.<br />
Subject loan has been arranged for<br />
financing of infrastructure<br />
development for smooth<br />
transmission of RLNG and<br />
indigenous supply to its intended<br />
consumers. In the first phase,<br />
pipeline of 42" dia x 110 KM will<br />
be laid from SAWAN to Qadirpur.<br />
After this augmentation, SNGPL's<br />
network downstream Sawan would<br />
be able to pick up additional 400<br />
MMCFD LNG supply and 160<br />
MMCFD anticipated / existing<br />
indigenous gas supplies. The project<br />
is expected to complete by the end<br />
of this year.<br />
<strong>Trade</strong> <strong>Chronicle</strong> - <strong>May</strong> - <strong>June</strong> <strong>2015</strong> - Page # 35
TRADE CHRONICLE<br />
Automobile News<br />
Federal Minister Ishaq Dar<br />
inaugurates Yamaha plant<br />
New mixing plant for<br />
GTR<br />
Lt-Gen Ali Kuli Khan Khattak (retd),<br />
Chairman General Tyre & Rubber<br />
Company performed the ground<br />
breaking ceremony at GTR premises<br />
for a highly sophisticated new mixing<br />
plant scheduled to go on line in August<br />
2016, in Karachi.<br />
The investment of around 10 million<br />
US dollar on fully automated mixing<br />
plant will help GTR to increase its<br />
production capacity by 50% to 3.5<br />
million tyres annually as compared to<br />
2.3 million tyres it currently produces.<br />
The new mixing facility will further<br />
enhance the quality of its products as<br />
well as will help the company to<br />
produce more sizes that are currently<br />
getting popular in the market. It will<br />
also generate fresh jobs opportunities<br />
and contribute towards saving more<br />
foreign exchange for the country and<br />
also earn foreign exchange through<br />
exports.<br />
Finance Minister Ishaq Dar visits assembly line of Yamaha Motors Pakistan at<br />
Port Qasim.<br />
Federal Finance Minister Ishaq Dar<br />
has inaugurated motorcycle<br />
production facility, set up by<br />
Japanese motorcycle maker<br />
“Yamaha” at an estimated cost of<br />
Rs5.3 billion at the Port Qasim near<br />
Karachi.<br />
President Yamaha Motor Co Ltd<br />
Hiroyuki Yanagi, addressing the<br />
plant’s inaugural ceremony, said the<br />
company will manufacture 40,000<br />
units this year to meet the growing<br />
demand of the country’s motorcycles<br />
market of 1.65 million units/year. The<br />
motorcycle production is expected to<br />
exceed three million units by 2020,<br />
he added.<br />
Speaking at the occasion, Finance<br />
Minister Ishaq Dar said Japanese<br />
has a major stake in Pakistan’s<br />
automobile industry. “We invite<br />
more and more companies to come<br />
to Pakistan,” he said. “Many<br />
companies are looking to re-locate<br />
their plants to South Asia and we<br />
invite them to come to Pakistan as<br />
the environment in the country is<br />
more business-friendly.”<br />
Pak Suzuki Q1<br />
profit up 113pc<br />
The Pak Suzuki Motor Company<br />
(PSMC) has reported net profit of<br />
Rs946 million [earning per share<br />
(EPS) Rs11.50] during the first<br />
quarter of <strong>2015</strong>, compared to Rs443<br />
million [EPS Rs5.4] the same period<br />
last fiscal, showing a surge of 113<br />
percent.<br />
The significant increase in earnings<br />
is primarily due to higher volume<br />
sales, up 55 percent year on year and<br />
four percent increase in gross margin.<br />
Revenue of the company posted a<br />
growth of 43 percent YoY to<br />
Rs19.6bn, while the gross profit<br />
surged by 125percent to Rs2.2bn in<br />
1Q<strong>2015</strong>.<br />
The taxi scheme boosted volumetric<br />
sales — mainly Bolan and Ravi. A<br />
total of 30,950 units were sold at a<br />
discount to the government of Punjab.<br />
“Similarly, gross margins improved 11<br />
percent due to reduction in steel price<br />
and 18 percent devaluation of<br />
Japanese Yen against Pak rupee,”<br />
said Farhan Mehmood, Head of<br />
Research at Sherman Securities.<br />
Sources said the company plans to<br />
bring a new model under 1,000cc<br />
category by the beginning of 2016 and<br />
will gradually phase out the production<br />
of Cultus. However, the company’s<br />
spokesman Shafiq Ahmed Shaikh,<br />
said phasing out of Cultus is not on<br />
the cards.<br />
<strong>Trade</strong> <strong>Chronicle</strong> - <strong>May</strong> - <strong>June</strong> <strong>2015</strong> - Page # 36
TRADE CHRONICLE<br />
Fertilizer & Petrochemical Industries<br />
Pakistani national<br />
appointed IFA Director<br />
The International Fertilizer<br />
Association (IFA) has recognised<br />
Pakistan’s leading fertiliser<br />
company and has elected second<br />
consecutive Pakistani national as<br />
a Director of the prestigious and<br />
globally famous “International<br />
Association for the Global Fertilizer<br />
Industry” (IFA), says a statement<br />
said issued recently.<br />
This honour has gone to the<br />
incumbent Chief Executive and<br />
Managing Director of the Fauji<br />
Fertilizer Company (FFC) Lt Gen<br />
Shafqaat Ahmed (Retd), it said.<br />
The Lt General has the honour of<br />
serving at top positions in Pakistan<br />
Army.<br />
A spokesperson of the FFC, termed<br />
the development a matter of pride<br />
for the nation and said that IFA have<br />
selected a second consecutive<br />
director on its board from FFC,<br />
Pakistan, the statement said. “IFA<br />
has over 525 members in 85<br />
countries and now has<br />
representation on the board of<br />
directors from Pakistan,” he said.<br />
The decision to take Lt Gen Ahmed<br />
(Retd) on board of directors was<br />
made at the latest board meeting<br />
held in Istanbul, Turkey on <strong>May</strong> 27,<br />
<strong>2015</strong>, it added.<br />
Engro earns net profit of<br />
Rs. 4.238bn<br />
Engro Corporation announced a net<br />
profit of Rs4.238 billion, translating<br />
into the earnings per share (EPS) of<br />
Rs6.94 for the quarter ended March<br />
31, <strong>2015</strong> as compared to the net profit<br />
of Rs2.29 billion and EPS of Rs4.02<br />
in the same quarter last year.<br />
The sales revenue of the company<br />
stood at Rs41.372 billion for the<br />
quarter as against Rs38.354 billion in<br />
the corresponding period last year.<br />
Tahir Abbas at Arif Habib Limited<br />
said corporation’s fertiliser business<br />
continued its momentum as Engro<br />
Fertilizer recorded 113 percent jump<br />
in earnings to Rs3.059 billion during<br />
the period, mainly due to 57 percent<br />
jump in other income and 11 percent<br />
decline in the financial charges.<br />
Food business remained the major<br />
outperformer during the quarter as<br />
Engro Foods posted 462 percent<br />
growth in revenue to Rs1.069 billion<br />
during the quarter on account of<br />
improved margins. Chemical business<br />
remained under pressure as Engro<br />
Polymer (EPCL) posted loss-aftertax<br />
of Rs107 million due to plant<br />
shutdown. However, PVC margins<br />
increased by 3.8 percent due to sharp<br />
decline in ethylene price.<br />
Fauji Fertilizer declares<br />
cash dividend<br />
Fauji Fertilizer Company (FFC) has<br />
declared an interim cash dividend of<br />
Rs3.94 per share for the quarter<br />
ended March 31, <strong>2015</strong>. Fauji Fertilizer<br />
announced a net profit of Rs5.907<br />
billion, translating into the earnings per<br />
share (EPS) of Rs4.64 for the quarter<br />
ended March 31, <strong>2015</strong> as compared<br />
to the net profit of Rs4.557 billion and<br />
EPS of Rs3.58 in the same quarter<br />
last year. The sales revenue of the<br />
company stood at Rs20.408 billion for<br />
the quarter as against Rs17.573 billion<br />
in the corresponding period last year.<br />
Engro Fertilizer’s<br />
profits surge<br />
Engro Fertilizer has announced a net<br />
profit of Rs3.058 billion, translating in<br />
the earnings per share (EPS) of<br />
Rs2.30 for the quarter ended March<br />
31, <strong>2015</strong>. The company had posted a<br />
profit of Rs1.437 billion and EPS of<br />
Rs1.12 in the same quarter last year.<br />
The sales revenue for the quarter<br />
under review stood at Rs17.673 billion<br />
as against Rs14.895 billion in the<br />
corresponding quarter last year. Tahir<br />
Abbas at Arif Habib Limited said the<br />
company’s sales grew 19 percent,<br />
mainly due to four percent jump in<br />
urea prices, which offset the impact<br />
of one percent decline in the urea<br />
offtake. Gross margins remained flat<br />
at 38 percent, highlighting the<br />
company did not receive concessionary<br />
gas flow at $0.7/mmbtu.<br />
FFBL posts profits of<br />
Rs98.122 million<br />
Fauji Fertilizer Bin Qasim (FFBL) has<br />
announced a net profit of Rs98.122<br />
million, translating into the earnings<br />
per share (EPS) of 11 paisas for the<br />
quarter ended March 31, <strong>2015</strong>. The<br />
company had posted a net profit of<br />
Rs186.315 million and EPS of 20<br />
paisas for the quarter ended March<br />
31, 2014. The company posted sales<br />
revenue of Rs5.798 billion for the<br />
quarter as against Rs6.040 billion in<br />
the corresponding period last year.<br />
<strong>Trade</strong> <strong>Chronicle</strong> - <strong>May</strong> - <strong>June</strong> <strong>2015</strong> - Page # 37
TRADE CHRONICLE<br />
Banking & Insurance News<br />
NBP posts Rs8.5bn preprovision<br />
profit in Q1<br />
The Board of Directors of National<br />
Bank of Pakistan (NBP) has<br />
approved the financial statements of<br />
the bank for the three months period<br />
ended March 31, <strong>2015</strong>.<br />
The bank in first quarter of <strong>2015</strong><br />
recorded pre-provision profit of Rs<br />
8.5 billion, an increase of 57 percent<br />
from comparative period last year.<br />
Pre-tax profit amounted to Rs 5 billion<br />
which is higher by 14 percent from<br />
the corresponding period last year.<br />
After tax profit stood at Rs 3.3 billion<br />
as compared to Rs 3.1 billion for the<br />
same period last year showing an<br />
increase of 4.2 percent. Despite<br />
reduction in interest rates, net interest<br />
income increased from Rs 8.6 billion<br />
in first quarter of 2014 to Rs 10.5<br />
billion in <strong>2015</strong> reflecting an increase<br />
of 21 percent due to increase in<br />
balance sheet size. Non-interest<br />
income is Rs 8.4 billion, higher by Rs<br />
4.3 billion or 29 percent.<br />
Compared to March 2014, deposits<br />
have increased by around 12 percent,<br />
while advances marginally increased<br />
by 0.4 percent. From December<br />
2014, advances have declined by 2.9<br />
percent mainly due to seasonal<br />
adjustments. The bank is focusing on<br />
reducing the non-performing loans<br />
through restructuring. The bank is<br />
strongly capitalized with capital and<br />
reserves of Rs 166.8 billion, which<br />
translates into break- up value per<br />
share of Rs.78/- per share.<br />
Core Banking Application (CBA)<br />
rollout in 1,100 plus remaining<br />
NBP branches is under<br />
implementation in <strong>2015</strong> to utilize<br />
maximum benefit of automation<br />
and facilitating NBP customers<br />
with enhanced services. This year<br />
we have converted 180 additional<br />
branches on CBA taking total<br />
branches on the new platform at<br />
453. The bank plans to add 1,000<br />
ATMs to its network by <strong>2015</strong>, out<br />
of which 250 ATM project is under<br />
implementation and remaining 750<br />
ATMs are planned to be installed<br />
by the end of <strong>2015</strong>.<br />
Group Chief Mr. Khalid<br />
bin Shaheen of NBP’s<br />
visits NPC, Islamabad.<br />
National bank of Pakistan is<br />
supportive of the endeavors that shall<br />
be undertaken for the welfare and<br />
professional advancement of<br />
Pakistani journalists and will keep up<br />
with this commitment in future as well.<br />
These sentiments were expressed by<br />
the Group Chief of National Bank of<br />
Pakistan Mr. Khalid bin Shaheen<br />
during his recent visit to National<br />
Press Club, Islamabad. On this<br />
occasion, National Bank of Pakistan<br />
also presented the National Press<br />
Club with 10 computers and a printer<br />
for their computer lab. The delegation<br />
of NBP was led by group chief,<br />
Khalid bin Shaheen who was also<br />
accompanied by divisional head<br />
Nabeel Saeed, vice president Syed<br />
President National Press Club, Shehryar Khan while presenting a shield of<br />
appreciation to Group Chief Natinal Bank of Pakistan during his recent visit to<br />
the Press Club. Club Secretary Tariq Mehmood was also present on the occasion.<br />
Ibn-e-Hasan, manager media &<br />
corporate communications Abbas<br />
Jatoi and Mehtab Siddiqui.<br />
Speaking on the occasion, group chief<br />
of NBP Khalid bin Shaheen said, “We<br />
applaud the endeavors undertaken by<br />
National Press Club to ensure the<br />
welfare and professional well-being of<br />
journalists. National Bank of Pakistan<br />
will continue to cooperate with<br />
National Press Club for their initiatives<br />
as it has been in the past and will<br />
continue to do so in future as well.”<br />
<strong>Trade</strong> <strong>Chronicle</strong> - <strong>May</strong> - <strong>June</strong> <strong>2015</strong> - Page # 38
TRADE CHRONICLE<br />
HBL profit surges 63<br />
percent to record high<br />
HBL has announced its first quarter<br />
<strong>2015</strong> results and has delivered a<br />
record post-tax profit of Rs 10 billion,<br />
representing a growth of 63 percent<br />
over the same period last year.<br />
Consequently, earnings per share for<br />
the quarter increased to Rs 6.73 as<br />
against Rs 4.12 for the first quarter<br />
of 2014. Along with the results, the<br />
Board declared a quarterly dividend<br />
of Rs 3.50 per share.<br />
This record performance was driven<br />
by strong revenue growth of more<br />
than Rs 7 billion. Net Interest Income<br />
increased significantly by 33 percent<br />
to over Rs 19 billion, as the Bank<br />
grew its average balance sheet by 17<br />
percent. The Bank also built on its<br />
success in growing current accounts,<br />
which increased on average by a<br />
phenomenal 23 percent year on year<br />
and rose to almost 35 percent of total<br />
deposits. Nonmark-up income<br />
increased sharply by 44 percent to Rs<br />
7.8 billion for the quarter, with<br />
continued excellent performance<br />
from Bancassurance and investment<br />
banking, and realization of capital<br />
gains from sale of securities.<br />
HBL continued to invest in technology,<br />
distribution and people, with over 100<br />
new ATMs and 2,500 new POS<br />
HBL, MCR sign MoU<br />
on consumer transaction<br />
technologies<br />
Habib Bank Limited (HBL) recently<br />
joined hands with MCR Private<br />
Limited, more commonly known for<br />
its renowned food franchises, Pizza<br />
Hut, Burger King & TGIF, to<br />
provide customised and convenient<br />
banking solutions to MCR clients<br />
for food delivery & order<br />
placements.<br />
MCR has taken a step into the<br />
bank's POS acquiring business by<br />
placing 57 HBL POS terminals at<br />
various outlets across Pakistan.<br />
HBL's MPOS model will be<br />
included among the food delivery<br />
payment options as well, bringing<br />
quality and convenience to<br />
customers' doorsteps. Internet<br />
terminals added to the network.<br />
Despite this, administrative expense<br />
growth for the quarter was contained<br />
at 7.4 percent YoY. With HBL's<br />
investments delivering strong<br />
business growth, the cost/income ratio<br />
reduced to 39.4 percent compared to<br />
49.7 percent in Q1 2014.<br />
During the quarter, the Government<br />
sold its entire remaining shareholding<br />
in the Bank in a landmark transaction,<br />
led by the Privatization Commission.<br />
Payment Gateways have also been<br />
deployed for both brands.<br />
MCR CEO & Chairman Aqeel<br />
Hassan voiced their goal of<br />
maintaining MCR's benchmarks of<br />
food production at international<br />
standards. He also emphasised on<br />
his aim to ensure that MCR brand<br />
names are technologically abreast<br />
with contemporary international<br />
banking practices.<br />
Nauman Dar, President & CEO<br />
HBL, underlined the fact that these<br />
solutions would principally benefit<br />
the consumer, and therefore further<br />
develop the brands of MCR. Both<br />
HBL and MCR were confident that<br />
together they could accomplish a<br />
much needed technological<br />
enhancement of the company to<br />
meet international banking<br />
standards.<br />
The issue was oversubscribed by<br />
1.6 times and is a reflection of the<br />
value seen by investors in this<br />
institution. The transaction size<br />
was over $1 billion and is the largest<br />
ever equity offering, not just in<br />
Pakistan, but in Asian Frontier<br />
Markets. More than 75 percent of<br />
the proceeds came from foreign<br />
investors covering all significant<br />
investment locations and including<br />
major International Financial<br />
Institutions.<br />
<strong>Trade</strong> <strong>Chronicle</strong> - <strong>May</strong> - <strong>June</strong> <strong>2015</strong> - Page # 39
TRADE CHRONICLE<br />
Tahir Hassan Qureshi<br />
appointed CEO of ABL<br />
The Board of Directors of Allied<br />
Bank Limited has appointed Tahir<br />
Hassan Qureshi as the new Chief<br />
Executive Officer effective <strong>June</strong><br />
17, <strong>2015</strong>, subject to approval of the<br />
State Bank of Pakistan.<br />
Qureshi, who is currently the Chief,<br />
Finance Group and Chief Financial<br />
Officer (CFO), joined the Bank in<br />
April 2008 and has played a leading<br />
role in its expansion. He is also the<br />
fellow member of the Institute of<br />
Chartered Accountant of Pakistan<br />
and has diversified experience of<br />
more than 26 years where he has<br />
held senior management position in<br />
Finance, Taxation and Corporate<br />
Affairs.<br />
He started his banking career from<br />
the Bank of Punjab (BOP), where<br />
he was part of the team in getting<br />
the ‘scheduled commercial bank’<br />
license from the State Bank of<br />
Pakistan and in transforming the<br />
Bank to carry its activity across<br />
Pakistan as a ‘commercial bank’.<br />
Qureshi was also associated with<br />
Habib Bank Limited and during his<br />
tenure as senior team member and<br />
Head of Finance, played an<br />
important role in rehabilitation of<br />
the Bank to offer for sale under the<br />
Government privatization process.<br />
He is a member of the Institute of<br />
Chartered Accountants of<br />
Pakistan on Banking Committee<br />
and Pakistan Banking<br />
Association’s sub-committee on<br />
Accounting and Taxation. Apart<br />
from various seminars and<br />
conferences he has also<br />
represented Allied Bank Limited<br />
on World Economic Forum New<br />
Champions annual sessions.<br />
MCB Bank posts Q1 profit of Rs7.9bln<br />
The MCB Bank Limited posted the<br />
highest-ever quarterly profit-aftertax<br />
of Rs7.9 billion in the first<br />
quarter of <strong>2015</strong>, a bank statement<br />
said recently.<br />
The bank also earned<br />
record profit-beforetax<br />
of Rs11.9 billion<br />
during the period under<br />
review, it said.<br />
The board of directors,<br />
which met under the<br />
chairmanship of Mian<br />
Mohammad Mansha declared first<br />
interim cash dividend of Rs4 per<br />
share for the period ended March<br />
31, <strong>2015</strong>.<br />
The bank profit-before-tax show<br />
exceptional growth of 42 percent as<br />
compared to the corresponding<br />
period last year, mainly contributed<br />
by 91 percent increase in nonmarkup<br />
income and 20 percent<br />
increase in net markup income, it<br />
said.<br />
On gross markup income side, the<br />
bank recorded an increase of Rs2.7<br />
Meezan Bank Limited has recorded<br />
19 percent growth in its profit for the<br />
quarter ended on 31st March <strong>2015</strong>.<br />
Profit after tax increased to<br />
Rs 1.313 billion from Rs<br />
1.106 billion. The Earnings<br />
per share of the Bank for the<br />
first quarter of <strong>2015</strong> was Rs<br />
1.31 per share (March 31<br />
2014: Rs 1.10 per share).<br />
Deposits of the Bank increased to Rs<br />
391 billion as at March 31, <strong>2015</strong> from<br />
Rs 380 billion as at December 31,<br />
2014.<br />
billion with major contributions from<br />
investments, amounting to Rs1.8<br />
billion with growth of 16 percent<br />
and from advances, amounting to<br />
Rs932 million, presenting a growth<br />
of 14 percent. This was made<br />
possible with the<br />
prudent placements<br />
and timely shift in<br />
concentration levels of<br />
investments.<br />
The interest expense<br />
registered an increase<br />
of Rs704 million over<br />
the corresponding period last year,<br />
mainly due to higher Repo<br />
borrowings. On the non-markup<br />
income side, the MCB Bank<br />
registered a significant growth 864<br />
percent due to gains on the sale of<br />
securities, fee income (23 percent),<br />
dividend income (29 percent), and<br />
other income (28 percent).<br />
The administrative expense base,<br />
excluding pension fund reversal<br />
recorded an increase of 11 percent,<br />
which consummates with increased<br />
operational and infrastructural<br />
outreach.<br />
Meezan Bank's profit up by 19 percent<br />
The Board of Directors of<br />
Meezan Bank Limited in its<br />
meeting held on April 21, <strong>2015</strong><br />
approved the financial<br />
statements of the Bank<br />
for the quarter ended<br />
March 31, <strong>2015</strong>. The<br />
meeting was presided by<br />
HE Sheikh Ebrahim Bin<br />
Khalifa Al-Khalifa,<br />
Chairman of the Board, and the<br />
Vice Chairman of the Board Mr<br />
Riyadh SAA Edrees also attended<br />
the meeting.<br />
<strong>Trade</strong> <strong>Chronicle</strong> - <strong>May</strong> - <strong>June</strong> <strong>2015</strong> - Page # 40
TRADE CHRONICLE<br />
UBL announces<br />
1Q<strong>2015</strong> earnings of<br />
Rs7.5bn<br />
UBL Launches NRP Banking<br />
for Overseas Pakistanis<br />
United Bank Limited (UBL)<br />
announced 1Q<strong>2015</strong> earnings of Rs<br />
7.5 billion (EPS Rs 6.2), up by 15<br />
percent QoQ and 37 percent YoY<br />
led by growth in core earnings. The<br />
bank also announced cash dividend<br />
of Rs 3 per share. The results<br />
were above market consensus<br />
estimates, said analysts at Topline<br />
Research.<br />
This “impressive” earnings growth<br />
is likely to be attributed to the<br />
higher core income witnessed by<br />
the bank during the period under<br />
review, they said. Net Interest<br />
Income (NII) of UBL improved by<br />
2 percent QoQ to Rs 13.5 billion in<br />
1Q<strong>2015</strong>. Income from high yielding<br />
Pakistan Investment Bond (PIBs)<br />
and improving deposit mix resulted<br />
in higher NII despite falling interest<br />
rates. Moreover, normal deposit<br />
growth must also have contributed<br />
to this. Interest earned on assets<br />
rose by 2 percent QoQ to Rs 23.6<br />
billion, whereas interest expense<br />
increased by 3 percent QoQ to Rs<br />
10.1 billion.<br />
On YoY basis, net profit grew by<br />
37 percent driven by higher NII.<br />
NII of UBL surged by 32 percent<br />
YoY in 1Q<strong>2015</strong>. Non-Interest<br />
Income of UBL also increased by<br />
25 percent to Rs 6.8 billion. This<br />
drove bottom line of the bank by<br />
37 percent. On the expenses side,<br />
provisioning and non-interest<br />
expense increased by 163 percent<br />
and 11 percent to Rs805mn and<br />
Rs8.3 billion in 1Q<strong>2015</strong>. However,<br />
sharp growth in core earnings and<br />
higher non-interest income<br />
dwarfed increase in expenses.<br />
Ms. Maliha Anwer Khan, Head Wealth Management & NRP, UBL (first left)<br />
presenting salient feature of "NRP Banking" in Karachi recently. Picture shows<br />
Mr. Wajahat Husain, President & CEO, UBL (second from right) has attended the<br />
event as well. Also seen in picture are Mr. Abrar Mir, Group Executive, Banking<br />
Products, UBL (second left) and Mr. Aameer Karachiwalla, COO-UBL (first right).<br />
Mr. Wajahat Husain, President &<br />
CEO, United Bank Ltd along with Mr.<br />
Abrar Mir, Group Executive, Banking<br />
Products, UBL, Mr. Aameer<br />
Karachiwalla, COO-UBL and Ms.<br />
Maliha Anwer Khan, Head Wealth<br />
Management & NRP, UBL have<br />
launched bank’s new innovative<br />
product – NRP Banking for nonresident<br />
Pakistanis in Karachi recently.<br />
Mr. Wajahat Husain, President &<br />
CEO, UBL and and Ms. Maliha<br />
Anwer Khan, Head Wealth<br />
Management have presented salient<br />
feature of products, which are<br />
specially designed for Pakistani<br />
leaving aboard to avail all banking<br />
facility i.e. Deposit accounts,<br />
Signature (Priority) Banking, Car &<br />
Home Loans, Credit Cards, Mutual<br />
Funds, Internet and Mobile Banking<br />
and Access to Stock and Real Estate<br />
Markets etc.<br />
UBL is presently handling inward<br />
remittance more than 85 % from Gulf<br />
countries.<br />
“UBL‘s global network has given us<br />
the unique opportunity to offer,<br />
products and services that intrinsically<br />
suit the financial needs of Non-<br />
Resident Pakistanis”, Mr. Husain said<br />
at the event. “With the launch of UBL<br />
NRP Banking Services, we are not<br />
only bringing a positive stimulus to the<br />
country’s economy but also doing our<br />
part in bringing Pakistan closer to our<br />
fellow countrymen residing<br />
overseas”.<br />
UBL has an extensive branch<br />
network internationally covering the<br />
UAE, the GCC countries, Tanzania,<br />
China, Switzerland, UK and the<br />
USA where UBL has been serving<br />
the local communities as well as<br />
catering to the specific needs of the<br />
Non-Resident Pakistanis. As per<br />
recent statistics, more than 8 million<br />
Pakistanis are living aboard with<br />
Middle East, Europe and America<br />
being the major remittance<br />
originating regions which has made<br />
Pakistan the 7th large remittance<br />
market in the world.<br />
<strong>Trade</strong> <strong>Chronicle</strong> - <strong>May</strong> - <strong>June</strong> <strong>2015</strong> - Page # 41
TRADE CHRONICLE<br />
JCR – VIS Reaffirms IFS<br />
Rating of EFU General<br />
Insurance Limited<br />
JCR – VIS Credit Rating Company<br />
Limited has reaffirmed the Insurer<br />
Financial Strength Rating of EFU<br />
General Insurance Limited (EFU) at<br />
‘AA+’ (Double A Plus):<br />
Outlook on the assigned<br />
rating is ‘Stable’. The<br />
previous rating action<br />
was announced on<br />
November 25, 2014.<br />
EFU is the largest<br />
general insurance<br />
company in Pakistan.<br />
The company has more than 80 years<br />
of experience in the general insurance<br />
industry and enjoys largest market<br />
share, geographical diversification<br />
and strong franchise. The rating<br />
incorporates reinsurance<br />
arrangements in place, liquidity<br />
profile and improved underwriting<br />
performance of the company.<br />
Moreover, Profile and stability in<br />
senior management team is also<br />
considered positively in the rating<br />
assessment.<br />
The company has depicted steady<br />
growth in business volumes over the<br />
years though growth was lower than<br />
industry in 2014. Business mix largely<br />
comprises fire and property related<br />
risks while the proportion of other<br />
business lines has been restricted over<br />
time. Following the receipt of<br />
necessary regulatory approvals, the<br />
company has initiated takaful<br />
operation in <strong>May</strong> <strong>2015</strong>.<br />
Underwriting performance has<br />
improved on the back of notable<br />
improvement in claims incidence. The<br />
company incurred large marine<br />
claims in 2014; however, impact of<br />
the same was absorbed on the back<br />
of adequate reinsurance<br />
arrangements. Average risk profile of<br />
reinsurers on the company’s panel is<br />
in the A category with Swiss Re and<br />
Scor Re enjoying lead share in major<br />
business segments. Underwriting<br />
profit depicted improvement in 2014<br />
while investment income continues to<br />
augment the bottom line of the<br />
company, with net<br />
operating ratio also<br />
improving during the<br />
year.<br />
The company holds a<br />
large portfolio of<br />
marketable securities in<br />
addition to strategic<br />
interest in EFU Life<br />
Assurance Limited, which is one of<br />
the leading life insurance company in<br />
the private sector. A major portion of<br />
the portfolio is invested in listed<br />
equities in view of which, the<br />
company’s exposure to price risk is<br />
sizeable. Other than equities, the<br />
portfolio comprises a mix of sovereign<br />
instruments, TDRs, real estate<br />
properties and mutual funds.<br />
Exposure to interest rate risk<br />
increased during 2014 as the company<br />
built exposure in long term fixed rate<br />
bonds, both directly and by way of<br />
mutual funds. The investment<br />
portfolio carried sizeable unrealized<br />
gains at year-end; equity market<br />
related unrealized gains may have<br />
eroded to an extent in 1Q15 while<br />
valuation of fixed income portfolio is<br />
expected to have increased with<br />
benchmark rate having been reduced<br />
to 7% in <strong>May</strong> <strong>2015</strong>. Downside risk<br />
to earnings has been stemmed to an<br />
extent by locking in the higher return<br />
on these bonds. Liquidity profile is<br />
considered sound as the company has<br />
built sizeable liquid reserves over time,<br />
the quantum of which has improved<br />
in relation to reported liabilities in view<br />
of improved valuation of marketable<br />
securities.<br />
EFU Life, KASB<br />
Modaraba sign takaful<br />
distribution deal<br />
EFU Life Assurance Ltd and<br />
KASB Modaraba have entered<br />
into a distribution alliance for EFU<br />
Life's Window Family Takaful<br />
Products under its dedicated<br />
brand "Hemayah". KASB<br />
Modaraba is one of the leading<br />
Islamic financial institutions,<br />
working under Modaraba/<br />
Musharaka model to offer<br />
financing solutions. EFU Life is<br />
a leading life insurance company<br />
in Pakistan and is the first<br />
Window Family Takaful Operator<br />
licensed by SECP.<br />
The agreement was signed by<br />
Taher G. Sachak, CEO & MD<br />
EFU Life and Rashid K. Siddiqui,<br />
Chief Executive Officer, KASB<br />
Modaraba. Speaking on the<br />
occasion, Taher G. Sachak, CEO<br />
and MD EFU Life said "KASB<br />
Modaraba is a leading Modaraba<br />
with a strong customer base and<br />
we are proud to launch Takaful<br />
Distribution partnership with<br />
them. The commencement of this<br />
new venture gives us an<br />
opportunity to offer Islamic<br />
solutions to KASB Modaraba<br />
customers for their long term<br />
financial planning needs." CEO<br />
KASB Modaraba, Rashid K.<br />
Siddiqui said "it is an honour for<br />
KASB Modaraba to be the first<br />
Modaraba in the industry to enter<br />
this strategic business alliance<br />
with EFU Life. KASB Modaraba<br />
is playing an active role in<br />
promoting Shariah Compliant<br />
Products to fulfil the financial<br />
needs of people purely on Islamic<br />
principles, under Kasb-e-Halal<br />
brand."<br />
<strong>Trade</strong> <strong>Chronicle</strong> - <strong>May</strong> - <strong>June</strong> <strong>2015</strong> - Page # 42
TRADE CHRONICLE<br />
Soneri Bank posts<br />
Rs613.28m PAT<br />
Soneri Bank Limited posted a profit<br />
before tax of Rs 949.73 million and<br />
profit after tax of Rs 613.28 million<br />
for the first quarter ended 31st March<br />
<strong>2015</strong>. The Board in its 143rd meeting<br />
held on April 17 <strong>2015</strong>, approved the<br />
Bank’s first quarterly un-audited<br />
financial statements. On this<br />
occasion, the Chairman, Alauddin<br />
Feerasta appreciated the Bank’s<br />
continued positive performance<br />
during the quarter and expressed<br />
satisfaction on the record profit<br />
posted.<br />
During the period, the Bank’s net<br />
revenue rose by 28.31 percent to Rs<br />
2.61 billion, from last year’s figure of<br />
Rs 2.03 billion. Bank’s net assets<br />
amounted to Rs 17.26 billion as on<br />
31st March <strong>2015</strong>, being 1.33 percent<br />
higher than 2014 base of Rs 17.04<br />
billion. Deposits are almost at 2014<br />
year end position standing at Rs<br />
162.73 billion and net advances are<br />
down by 6.48 percent to Rs 99.20<br />
billion due to seasonal factors.<br />
SLIC signs agreement<br />
with Samba Bank<br />
State Life Insurance Corporation of<br />
Pakistan (SLIC) and Samba Bank<br />
Limited (subsidiary of Samba<br />
Financial Group, Saudi Arabia) have<br />
signed a bancassurance distribution<br />
agency agreement. Under this<br />
agreement, SLIC's insurance<br />
products will be offered by Samba<br />
Bank Limited to the existing and<br />
potential customers through its<br />
growing distribution channels.<br />
The agreement was signed by Gian<br />
Chand Kewalramani, General<br />
Manager Bancassurance, SLIC,<br />
Talal Javed, Group Head of<br />
Consumer Banking, Samba Bank<br />
Limited and Mohammad Naseem<br />
Rawther, CEO, GBA Services<br />
(Pvt.) Limited. This alliance<br />
between SLIC and Samba Bank<br />
Limited will provide the growing<br />
customer base of Samba Bank<br />
Limited with financial solutions<br />
offering protection and ensuring their<br />
financial security.<br />
Nargis Ghaloo, Chairperson, shared<br />
the vision of SLIC, "As the only<br />
national player in the bancassurance<br />
market, State Life Insurance<br />
Corporation feels that it has an<br />
obligation to reach out to all potential<br />
customers through every available<br />
distribution channel. With the benefit<br />
of Samba Bank's distribution<br />
network, SLIC believes this<br />
partnership will help us leverage our<br />
capabilities for providing value<br />
added services."<br />
Shahid Sattar, President and CEO<br />
of Samba Bank said, “We are<br />
pleased to be entering into an<br />
agreement with State Life<br />
Insurance Corporation, the leading<br />
insurer of Pakistan, and look<br />
forward to provide additional value<br />
to our customers through SLIC's<br />
insurance products."<br />
Strong performance by Adamjee Insurance in Q1-<strong>2015</strong><br />
Adamjee Insurance Company<br />
Limited (AICL) continued its streak<br />
of business growth during the 1st<br />
quarter of <strong>2015</strong> with underwriting<br />
profit increasing to Rs. 257 million as<br />
compared to Rs. 35 million in the<br />
corresponding quarter of 2014.<br />
AICI has posted net premium of Rs.<br />
1.821 million in the first quarter of<br />
<strong>2015</strong> which represents an increase of<br />
19% as compared to the same period<br />
last year. The growth in underwriting<br />
and operational profits indicates<br />
results of management’s strategy of<br />
building good quality client portfolio,<br />
capitalizing every opportunity to add<br />
value for its customers, and better<br />
utilization of its existing resources.<br />
Net claims ratio has seen an<br />
improvement front 62% to 58% in the<br />
first quarter of <strong>2015</strong>. Motor Line of<br />
business has generated the largest<br />
share of underwriting profit for the<br />
company in the first quarter of <strong>2015</strong>.<br />
Motor business represents 34% in the<br />
overall business portfolio which is<br />
followed by Fire & Property Damage<br />
at 26%. Marine at 9% and<br />
Miscellaneous (including Health) at<br />
31%.<br />
The Company’s net profit after tax<br />
has also increased by 17% from<br />
Rs. 628 million in QI of 2014 to<br />
Rs. 737 million in QI of <strong>2015</strong>.<br />
Adamjee Insurance has<br />
witnessed a growth in its Total<br />
Assets and Equity with Total<br />
Assets increasing from Rs. 28.8<br />
billion to Rs. 29.3 billion and<br />
Equity increasing from Rs 14.1<br />
billion to Rs. 14.9 billion in QI of<br />
<strong>2015</strong>. Adamjee Insurance’s strong<br />
financial standing and impeccable<br />
customer service makes it the<br />
customers preferred choice of<br />
insurance company.<br />
<strong>Trade</strong> <strong>Chronicle</strong> - <strong>May</strong> - <strong>June</strong> <strong>2015</strong> - Page # 43
TRADE CHRONICLE<br />
Aviation & Hotel News<br />
Etihad and PIA sign new<br />
codeshare agreement<br />
PIA losses before tax fall<br />
by 34.4 percent<br />
Due to positive management,<br />
reduction in fuel prices and better<br />
economic conditions, Pakistan<br />
International Airlines (PIA) loss<br />
before tax reduced by<br />
34.4 percent in 2014 as<br />
compared to the<br />
previous year. In<br />
addition, the airline's seat<br />
factor increased to 72<br />
percent and the better<br />
yields resulted in an<br />
almost eight percent<br />
increase in passenger<br />
revenue.<br />
In addition, strict control<br />
and better economic environment<br />
helped to keep costs down and<br />
expenses decreased by almost 10.6<br />
percent. The airline, however,<br />
reported a loss before tax of Rs 29.3<br />
billion in 2014 in comparison to a loss<br />
of Rs 44.7 billion in 2013.<br />
Chairman PIA, Nasser Jaffer stated<br />
this at the 58th Annual General Meeting<br />
of PIA held on <strong>May</strong> 29, <strong>2015</strong> in Karachi<br />
and was attended by PIA shareholders,<br />
members of the PIA Board of<br />
Directors and senior management. He<br />
informed the AGM about the various<br />
milestones that the airline had crossed<br />
during the past year.<br />
Nasser Jaffer,<br />
Chairman PIA<br />
He said that PIA was now on its way<br />
to revival and had achieved many<br />
significant goals. The revival<br />
measures included fleet<br />
modernization, route rationalization<br />
and cost-cutting.<br />
The Chairman said that nine PIA<br />
aircraft had been<br />
retired during the period<br />
which decreased the<br />
average age of the fleet<br />
to 14 years. He said<br />
that the airline was now<br />
following a strict<br />
financial regimen and<br />
maintaining stringent<br />
control over spending.<br />
Schedule integrity and<br />
departure punctuality<br />
are key drivers of<br />
customer satisfaction and are being<br />
improved.<br />
The Chairman said the airline was<br />
currently in the process of acquiring<br />
more fuel efficient aircraft. In <strong>2015</strong>,<br />
PIA planned to add 10 narrow-bodied<br />
A-320 aircraft to its fleet as well as 5<br />
ATR -72 planes. Of these, three A-<br />
320s and two ATR-72s had already<br />
been delivered while the remaining<br />
aircraft would be inducted during this<br />
year. As a result, the PIA Chairman<br />
said, the airline had succeeded in<br />
maintaining and increasing its market<br />
share in both the domestic and<br />
international segments.<br />
Etihad Airways and Pakistan<br />
International Airlines (PIA) have<br />
signed a codeshare agreement<br />
which will provide travelers with<br />
enhanced connections between the<br />
United Arab Emirates, Pakistan,<br />
and beyond.<br />
Etihad Airways will place its EY<br />
code on PIA flights between<br />
Islamabad, Karachi, Lahore,<br />
Peshawar and Abu Dhabi. In<br />
return, PIA’s PK code will be<br />
placed on Etihad Airways’ flights<br />
between Abu Dhabi and<br />
Islamabad, Karachi, and Lahore<br />
and PK code will also be added to<br />
Etihad Airways’ flights from Abu<br />
Dhabi to many of the global<br />
destinations operated by Etihad<br />
Airways.<br />
Flights can be booked from 30 <strong>June</strong><br />
<strong>2015</strong> via travel agents or through<br />
the airlines’ sales offices and<br />
contact centers. The first travel<br />
date will be 27 July <strong>2015</strong>. This will<br />
facilitate travelers with a choice of<br />
more than 70 destinations.<br />
Kevin Knight, Etihad Airways’<br />
Chief Strategy and Planning<br />
Officer, said: “Our unique partner<br />
strategy has been highly successful<br />
and we are pleased to add Pakistan<br />
International Airlines to our growing<br />
list of successful code share<br />
partners. Khurram Mushtaq,<br />
Director Marketing of PIA, said:<br />
“This is indeed a great opportunity<br />
for PIA to join hands with Etihad<br />
Airways, connecting Pakistan to<br />
UAE and around the globe.<br />
<strong>Trade</strong> <strong>Chronicle</strong> - <strong>May</strong> - <strong>June</strong> <strong>2015</strong> - Page # 45
TRADE CHRONICLE<br />
Emirates honours local<br />
agents<br />
Emirates presented its top ten cargo agents<br />
with special achievement awards recently.<br />
The criteria for the award included the<br />
revenue generated by the agents and<br />
overall performance of the agents in the<br />
market. Khalid Bardan, Emirates Vice<br />
President for Pakistan, attended the<br />
ceremony and distributed awards among<br />
the participants. “I am grateful for the<br />
continued support of all our cargo agents<br />
and would like to thank them for their<br />
contribution and for delivering such a<br />
consistently high-quality performance,”<br />
said Bardan. “Emirates SkyCargo<br />
operations in Pakistan continue to register<br />
a strong performance with load factors<br />
increasing over time, indicating Pakistan’s<br />
strong potential for continued growth in<br />
cargo and we look forward to an even<br />
better performance in <strong>2015</strong>,” he added. In<br />
November 2013, Emirates SkyCargo<br />
added Sialkot to its route network in<br />
Pakistan, with four flights weekly from the<br />
city known as the industrial hub of Pakistan.<br />
Rehan Faiz appointed<br />
GM of PC Karachi<br />
Hashoo Group Hospitality Division<br />
has announced the appointment of<br />
Rehan Faiz Pirzada as General<br />
Manager of Pearl Continental Hotel<br />
Karachi. Pirzada is associated with<br />
the Hashoo Group of Hotels since<br />
1996. A master hotelier, prior to his<br />
appointment as General Manager in<br />
PC Karachi, he was Hotel Manager<br />
in PC Karachi and General Manager<br />
Zaver PC Gwadar where he<br />
reopened the hotel, which is now fully<br />
operational.<br />
TAAP is committed to promote aviation & tourism<br />
industry: Rahim Janoo<br />
Acting President FPCCI, A. Rahim Janoo presenting memento to Chairman TAAP<br />
Hanif Rinch. Yahya Polani, Tafseer-ul-Islam, Haji Yousuf are also seen in the picture.<br />
“FPCCI recognize the efforts and<br />
services of Travel Agents’<br />
Association of Pakistan (TAAP) to<br />
promote travel, tourism and aviation<br />
industry of Pakistan. TAAP is not<br />
only promoting the soft image of<br />
Pakistan abroad while exploring new<br />
opportunities of reciprocal tourism<br />
between Pakistan and friendly<br />
countries but it is also projecting<br />
peace and harmony while facilitating<br />
the industry, its members and airlines<br />
to connect Pakistan with countries<br />
MCB Bank Limited (MCB)<br />
collaborates with Emirates Airline to<br />
provide up to 8 percent discount on<br />
round trip tickets booked through MCB<br />
credit card. As per the MoU, Emirates<br />
Airline has agreed to offer 5 percent<br />
discount for Emirates Business Class<br />
and 8 percent discount on Emirates<br />
around the globe.” This was stated<br />
by Abdul Rahim Janoo, Acting<br />
President, Federation of Pakistan<br />
Chambers of Commerce & Industry<br />
(FPCCI) in a meeting with TAAP<br />
delegation led by its Chairman<br />
Muhammad Hanif Rinch.<br />
Chairman TAAP Muhammad Hanif<br />
Rinch highlighted the imperative<br />
role of FPCCI in the promotion of<br />
trade and industry and all segments<br />
of the economy.<br />
MCB signs MoU with Emirates Airline<br />
Economy class travel. This discount<br />
is valid till September 15, <strong>2015</strong>. The<br />
MoU was jointly signed by Nadeem<br />
Afzal – Business Head South -RBG,<br />
MCB Bank Limited and Ashfaq Shah<br />
- Corporate Sales Manager, Emirates<br />
Airline, Pakistan in the presence of<br />
senior officials from both organisations.<br />
(left to right)Jordi Porcel, General Manager Spain, Etihad Airways; James<br />
Hogan, President and Chief Executive Officer, Etihad Airways; Her Excellency<br />
Dr Hissa Abdulla Ahmed Al-Otaiba, UAE Ambassador to the Kingdom of Spain;<br />
and Haitham Al Subaihi, Vice President UAE Sales, Etihad Airways; at the<br />
airline’s media conference in Madrid on 21 April <strong>2015</strong>.<br />
<strong>Trade</strong> <strong>Chronicle</strong> - <strong>May</strong> - <strong>June</strong> <strong>2015</strong> - Page # 46