TC May-June 2016

www.tradechronicle.com Vol. 63 Issue Nos. 05 & 06 May-June 2016 Rs. 200/- 

Trade Chronicle 

PAKISTAN'S LEADING MONTHLY MAGAZINE OF COMMERCE, INDUSTRY & PUBLIC AFFAIRS 

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Federal Budget 2016-17 

 

 

CONTENTS 

Pakistan Emerging Markets Index benefits 

Hajj Monitoring Committee 

Major Revenue and Measures - Budget 2016-17 

Highlights of Pakistan Economic Survey 2015-16 

 

 

 

 

 

 

 

 

 

 

 

 

 

EDITORIAL 

COMMENTS 

ARTICLES & FEATURES 

Special Report on Fans Industry 

Pakistan fan industry needs incentives to boost export 

A Chronicle Report 

Profile of leading fans manufactures 

Special Report on POGEE-2016 

Punjab Minister inaugurates POGEE-2016 exhibition in Lahore 

A decade of excellence in the energy industry 

Federal minister for P&NR, Shahid Khaqan Asbbasi, 

visits POGEE-2016 

POGEE exhibitors receive overwhelming response 

Special Report on Port & Shipping 

PNSC plans to add more oil tankers 

Earns after tax profit of Rs 1,364 million in 9MFY2016 

REGULAR FEATURES 

Cement Industry 

People & Events 

Telecommunication News 

Banking & Insurance News 

Automobile News 

Fertilizer & Petrochemical Industries 

Aviation & Hotel News 

Trade Chronicle - March - April 2016 - Page # 03

TRADE CHRONICLE 

We begin with the name of Allah, the Magnificient 

Federal Budget 2016 - 17 

From 

Editor's 

Desk 

Minister for Finance, Senator Muhammed Ishaq Dar presented Federal Budget 

2016-17 (July- June) in the National Assembly on June 03, 2016. After 3 

years of fiscal consolidation, PML-N led government in its 4th and 2nd last 

budget has shifted focus towards revival of declining agriculture sector, failing 

exports (Textile, Leather and various other Industrial sectors), and growth 

oriented policies. The budget has set ambitious target which includes raising 

GDP growth to 7.0pc by FY2018-19; containing inflation to single digit; raising 

investment to GDP ratio to 21pc; bringing down fiscal deficit to 3.5% of 

GDP; increasing tax to GDP ratio to 13.9% and pushing foreign exchange 

reserves to US$30bn. These targets can be achieved, provided government 

maintains consistency in its economic policies, overcome energy crises and 

bring visible improvement in law and order. 

From the vantage of Pakistan Stock Exchange (PSX), the developments in 

the Federal Budget were largely anticipated. A first glance at the budget 

suggests that the proposals floated in the budget favor the agriculture and 

export oriented sectors wherein experts expect Fertilizer and Textile sectors 

to remain the prime beneficiaries. With regards to the taxation measures, the 

budget either proposed i) continuation of previous regimes or ii) increase in 

differential of taxation between filers and non-filers. 

As usual budget gets mixed reaction. The gainers have welcomed the budget 

while losers termed it negative for the growth. The public who will ultimately 

feel the brunt of hike in end product prices are worried, that how they would 

meet growing kitchen expenses. 

ABDUL RAB SIDDIQI 

The textile industry, leather industry and others have welcomed the budget, 

while rice exporters, pharmaceutical industry, dairy industry, insurance industry, 

crop production association, cement industry, independent power producers, 

sea food exporters, LPG distributors, local chemical industry, Karachi Stock 

Exchange and others recorded their apprehensions through various appeals 

in local media. 

The textile sector has emerged as a major beneficiary of the federal budget 

with grant of zero rated status and 50bps reduction in Export Refinance Rate, 

duty free import of various textile machinery & raw material and refunds by 

August 31, 2016 (popular textile exporters demand). Hopefully, the grant of 

zero rated and start of refund will improve the sector’s liquidity and enhance 

exports. 

Similarly, agriculture and fertilizer industry are too addressee of federal budget. 

The government has proposed Rs36bn subsidy to bring down price of Urea 

to Rs1,400/bag from Rs1,700/bag. Rs10bn subsidy to reduce price of DAP 

from Rs2,800/bag to Rs2,500/bag. Rs27bn subsidy to reduce tube-wells 

electricity prices down to Rs5.35/kwh from Rs8.85/kwh. Abolishment of 7% 

Sales Tax on sale of Pesticides. Reduction in interest rates for agricultural 

Trade Chronicle - May - June 2016 - Page # 04


loans as well. The government has 

also decided to reduce general sales 

tax on imported and locallymanufactured 

tractors from 10 

percent to 5 percent while customs 

duty on agricultural machinery, 

including harvesters, planters and laser 

land levellers, has been abolished. 

These measures, experts believe will 

arrest decline trend in agriculture 

production and as well clear high urea 

inventory in country. The farmers have 

rightly pointed out that government 

should also fix the minimum support 

price for all the major crops. The urea 

industry also announced reduction in 

urea prices, which is commendable 

decision as it would lead to increase in 

fertilizer off-take. We hope 

government would also accede to 

demand of urea manufactures to allow 

export of surplus urea. 

On reacting the budget, the various 

overseas and local businessmen 

representing trade bodies have 

brought in notice to government some 

healthy suggestions, which we think 

if incorporated in budget or through 

other amendments, would take the 

country to more prosperity. They 

consider the budget targets, especially 

the GDP growth of 5.7 percent for 

next year, are challenging and would 

depend considerably on the robust 

growth in the agriculture and export 

sectors. They urged upon for taking 

bold measures to attract large foreign 

direct investment in the 

manufacturing and job creating 

ventures by offering attractive 

additional incentives. They also 

expressed concern over the lack of 

initiatives to broaden the tax net and 

to simplify tax administration for 

existing taxpayers. 

They requested immediate issuance 

of notification for zero-rating of five 

export sectors so that exporters could 

make shipments as per 

announcements in the federal budget. 

The extension in the super tax net will 

further burden the industrial and 

business community, they pointed out. 

However, they appreciated 

government decision to extend tax 

incentives, under Section 65d on new 

plants till June, 2019 and the 

continued reduction of corporate tax 

rate by 1 percent in line with plans to 

bring rates down to 30 percent by 

FY18. 

EDITORIAL 

COMMENTS 

Pakistan Emerging 

Markets Index benefits 

MSCI Inc, a leading provider of global 

equity indexes on 14th June, 2016, 

announced that the MSCI Pakistan 

Index will be reclassified to Emerging 

Markets status, coinciding with the 

May, 2017 Semi-Annual Index 

Review while it delays including 

China, shares in the MSCI Emerging 

Markets Index. Pakistan was part of 

the MSCI EM Index between 1994 

and 2008. However, the temporary 

closure of the Pakistan Stock 

Exchange in 2008 led MSCI to 

remove it from the index and classify 

it as a “standalone country index”. 

MSCI made Pakistan a part of the 

Frontier Markets Index in May, 2009 

and it has remained as such since 

then. 

Pakistan stock exchange termed it a 

big achievement and it was possible 

due to improvement in the country’s 

economy on account of sufficient 

foreign exchange reserve, currency 

stability, reduction in inflation, lower 

interest rate and over and above the 

political stability. However, the credit 

also goes to Mr. Muneer Kamal, 

Chairman, Pakistan Stock Exchange 

(PSX) Mr. Nadeem Naqvi, Managing 

Director, PSX and Deputy MD 

Haroon Askari for their untiring 

efforts in holding road show abroad 

to convince funds manager for 

change of perception about country’s 

economy. 

The federal government and investors 

seem to be jumping with joy at the 

decision. With this announcement, the 

Pakistan stock market extended a 

huge rally in the week ended on 17th 

June. The KSE-100 index amassed 

massive gains of 1,836 points (4.97 

per cent)—the highest weekly gains 

witnessed in three years, since July 

2013. The index closed the week at 

its all-time high of 38,777 points. 

According to market analyst, positive 

momentum is likely to continue amid 

MSCI up gradation of Pakistan to 

MSCI Emerging market index, the 9 

scrip’s that will form part of MSCI 

Emerging Market index will continue 

to remain in the limelight. Most of the 

investors are aware about nine or ten 

scripts but retail investor lacks it, and 

for level playing field, the government 

or the concerned authority should 

advertise it publicly. 

Meanwhile, Pakistan’s Prime 

Minister Mian Muhammad Nawaz 

Sharif, through an advertisement 

congratulated nation on getting 

status of emerging market status 

after eight years of review. The 

government claims the benefit of 

inclusion emerging market to – 

growth in stock market, foreign 

direct investment, investment in oil 

& gas, fertilizers and banking stocks 

etc. Similarly, Finance Minister 

Ishaq Dar has rushed to classify 

Pakistan’s re-entry into the index as 

‘historic’. He suggests the change 

could bring in a new portfolio of 

around $475 million into the stock 

market. 



The investor community has also 

responded with optimism. However, 

a leading local paper in its editorial 

rightly raised eyebrows that we 

must look at what becoming an 

emerging market status actually 

means. “The declaration is limited 

to the regulation and stability of a 

country’s stock market. It means 

nothing about the larger macroeconomic 

performance of a 

country’s economy”. 

“The new Emerging Markets status 

is not a goal that has been achieved, 

but an opportunity not to repeat the 

mistakes of the past. This can be 

witnessed by the fact that China is 

not considered an emerging market 

economy despite almost a decade 

of growth in excess of seven 

percent a year. Why has it not been 

accorded emerging market status? 

The problem is not its economy, but 

how it regulates its stock market. 

China still imposes stricter laws for 

the inflow and outflow of foreign 

capital and limits how much its stock 

markets can fall in a single day”. 

Hajj Monitoring 

Committee 

Ministry of Religious Affairs and 

Interfaith Harmony has constituted 

a Hajj Advisory Committee with the 

mandate to manage Hajj operation 

2016 in Pakistan and Saudi Arabia 

and to suggest improving welfare 

services to Pilgrims. The advisory 

committee would also oversee the 

workings of building hiring committee 

in Saudi Arabia. This is good decision 

ever taken by the government for 

welfare of Hajji after alleged Hajj 

scandal in the country and mishap in 

Mina last year. In some cases the 

condition of buildings are not 

satisfactory and they are far away 

from Haram in Macca and Masjide- 

Nabvi in Madina respectively. 

The govt. should also enlarge its scope 

of welfare for the Pilgrims going 

through private sector. The private 

Hajj Operators charge very 

expensive packages but reportedly 

provide less facility. The Haji in view 

of the religious faith does not 

complain or criticize Hajj Operators 

during the Hajj days and remain tight 

their lip about lack of facility. It should 

also be taken care of. 

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Major Revenue and Relief Measures - Budget 2016-17 

Federal Minister for Finance Senator 

Mohammad Ishaq Dar presented 

Federal Budget 2016-17 in Parliament 

on 3rd June. Given below are brief of 

major revenue and relief measures as 

proposed in the budget. 

Tariff slabs reduced from existing 5 

to 4 by merging 2% slab and 5% slab 

in new 3% slab. Corporate tax rate 

has been reduced to 31% for Tax Year 

2017. In sales tax turnover threshold 

for cottage industry has been 

increased to 10 million. Introduction 

of optional regime for Tier-1 Retailers 

according to which sales tax at fixed 

rate of 2% of their total turnover 

without any input tax adjustments is 

proposed. 

Exemption of sales tax on pesticides 

and 5% sales tax on fertilizers. 

Exemption to machinery and 

equipment for the development of 

grain handling and storage facilities to 

include silos as well. Relief in customs 

duty for Cool Chain Machinery. 

Income Tax, Customs and Sales Tax 

exemptions under Gwadar Port 

Concession Agreement for operation 

and development of Gwadar Port and 

Gwadar Free Zone. 

Zero-rating of five export oriented 

sectors. Specified items for these 

sectors and the purchase of energy i.e. 

electricity, gas, furnace oil and coal by 

the five export-oriented, have been 

subjected to zero-rate of sales tax. 

Various tax credits including tax credits 

under section 65B, 65D and 65E and 

enhancement of tax credit for 

employment generation are proposed 

to be increased. Period for these 

credits are also proposed to be 

extended. Deductable allowance for 

Federal Minister for Finance Senator Mohammad Ishaq Dar addressing post 

budget press conference in Islamabad on June 4, 2016. 

education and tax credit for health 

insurance is also proposed to be 

introduced. 

Concessions of CD for Dairy, 

Livestock & Poultry Sectors from 5% 

to 2%. 

Concessions of CD for Fish Farming, 

fish feed pellet (floating type) 

machines from 5% to 2%, fish / shrimp 

feed 10% & 20% to 0%. Exemption 

of sales tax on import of Laptops and 

PCs. Exclusion of Second hand and 

Worn Clothing from further tax levy. 

Revenue Measures 

Super tax was levied for the tax year 

2015 to meet revenue needs for 

certain unforeseen expenditure by the 

government. Since the circumstances 

still persist, it is being extended for tax 

year 2016. 

A final tax is being imposed on builders 

and land developers on the basis of 

per unit area. 

It is proposed to extend the holding 

period for taxation of capital gain on 

sale of immovable property from two 

years to five years to be charged at 

uniform rate of tax of 10%. 

For persons registered with provincial 

sales tax authorities , it is proposed that 

an advance tax at 3% of turnover of 

non-filer service providers be collected 

by provincial ST authorities along with 

their sales tax returns. 

It is proposed to withdraw zero-rating 

on milk and fat filled milk. Zero-rating 

on preparations for infant use proposed 

to be retained. 

In order to maintain neutrality it is 

proposed that minimum tax may be 

charged on companies declaring gross 

loss. 

It is proposed that minimum tax @ 1% 

of turnover may be made payable by 

Individuals and AOPs having turnover 

exceeding ten million rupees. It is 

proposed to withdraw zero-rating on 

stationery items and their inputs. 

Continuing with the policy of 

differential taxation for filer and nonfiler, 

various sections are included with 

higher withholding tax rates for those 

not filing income tax returns. 

Enhancement of rates of Federal 

Excise Duty on cigarettes. The rates 

of FED on cigarettes are proposed to 

be increased on a bi-annual basis. 

Enhancement of Federal Excise Duty 

on Aerated Waters to 11.5% of retail 

price. 

It is proposed to replace the current 



regime with fixed rate basis and to 

charge FED on cement on fixed rate 

basis @ Rs. 1/ kg. It is proposed to 

replace this Federal Excise Duty on 

sugar with levy of sales tax at reduced 

sales tax rate of 8%. Inclusion of 

mineral/bottled water in the Third 

Schedule to the Sales Tax Act, 1990, 

so that the tax is charged on the basis 

of retail price. 

Enhancement of fixed rate basis on 

steel sector, ship breakers and steel 

melters. Increase in the rate of 

sales tax on import of Mobile 

Phones. 

Comparative Budgetary Position 2015-16 and 2016-17 

Classification Budget 2015-16 Revised 2015-16 Budget 2016-17 

RESOURCES ( A + B + C ) 4,168,338 4,276,705 4,441,965 

A Internal Resources 3,366,827 3,406,416 3,572,354 

- Net Revenue Receipts 2,463,351 2,480,671 2,779,695 

- Net Capital Receipts 606,303 588,939 453,638 

- Estimated Provincial Surplus 297,173 336,806 339,022 

B External Resources 751,511 859,689 819,610 

C Privatization Proceeds 50,000 13,600 50,000 

Expenditure (A+B) 4,451,277 4,478,535 4,894,879 

A Current Expenditure on Revenue Acct. 3,482,239 3,599,858 3,843,986 

- Current Exp. on Revenue Account 3,482,239 3,599,858 3,843,986 

B Total Development Expenditure 969,038 878,677 1,050,893 

- Federal PSDP 700,000 661,297 800,000 

- Dev. Expenditure outside PDSP 164,400 127,559 156,584 

- Dev. Loans & Grants to Provinces 104,639 89,820 94,309 

Bank Borrowing 282,940 198,832 452,915 



Highlights of Pakistan Economic Survey 2015-16 

Growth and Investment 

The outgoing year witnessed slow 

global recovery as the world economy 

started picking up at slow pace and 

the global outlook also indicates some 

signs of weak demand. 

In South Asia economic performance 

of Pakistan is improving quantitatively 

and qualitatively as growth is inclusive 

and sustainable and is the highest 

achievement since 2008-09. 

Major achievements of the outgoing 

fiscal year includes: picking up 

economic growth, price stability, 

improvement in tax collection, 

reduction in fiscal deficit, worker 

remittances touch new height, and 

foreign exchange reserves remained 

high. 

The GDP growth accelerates to 4.71 

percent in 2015-16 against the growth 

of 4.04 percent in the last year. The 

growth momentum is broad based, as 

commodity producing and services 

sectors have supported economic 

growth. 

The agriculture sector accounts for 

19.82 percent of GDP and 42.3 

percent of employment with strong 

backward and forward linkages. It 

has four sub-sectors including: crops, 

livestock, fisheries and forestry. 

Agriculture sector recorded a 

negative growth of -0.19 percent 

against the growth of 2.53 percent last 

year. The decline in growth was due 

to drop in the production of cotton, 

rice, maize and other minor crops due 

to extreme weather. 

Important crops account for 23.55 

percent of agricultural value addition. 

This sub-sector has recorded a 

negative growth of -7.18 percent 

compared to a growth of -0.52 percent 

last year. The important crops 

includes all major crops like wheat, 

Federal Minister for Finance 

Senator Mohammad Ishaq Dar 

maize, rice, sugarcane and cotton 

which registered growth at 1.58 

percent, -0.35 percent, -2.74 percent, 

4.22 percent and -27.83 percent 

respectively. 

Other crops have share of 11.36 

percent to value addition in overall 

agriculture sector. This subsector has 

witnessed growth of -0.31 percent 

against the growth of 3.09 percent last 

year. 

Cotton Ginning has witnessed growth 

of -21.26 percent against the growth 

of 7.24 percent in the previous year. 

Livestock contributes 58.55 percent 

of agriculture value addition. 

Livestock consist of cattle, buffalos, 

sheep, goat, camel, horses, asses, 

mules and poultry and their products. 

It has registered a growth of 3.63 

percent against 3.99 percent last year. 

Growth of the forestry sub-sector is 

witnessed at 8.84 percent as 

compared to the growth of -10.43 

percent last year. 

Fisheries sub-sector has 2.17 percent 

contribution in agriculture and 

registered a growth of 3.25 percent 

compared to the growth of 5.75 


The industrial sector contributes 

21.02 percent in GDP; it is also a 

major source of tax revenues for 

the government and also 

contributes significantly in the 

provision of job opportunities to the 

labour force. 

Government planned and 

implemented comprehensive policy 

measures on fast track to revive 

the economy. As a result industrial 

sector started revival and recorded 

remarkable growth at 6.80 percent 

as compared to 4.81 percent last 

year. 

The manufacturing is the most 

important sub-sector of the industrial 

sector containing 64.71 percent share 

in the overall industrial sector. Growth 

of manufacturing is registered at 5.00 

percent compared to 3.90 percent 

last year. 

Manufacturing has three components; 

Large-Scale Manufacturing (LSM) 

with the share of 80.11 2 percent, 

Small Scale Manufacturing with the 

share of 13.12 percent and 

Slaughtering having share of 6.77 

percent. 



Small scale manufacturing witnessed 

growth at 8.21 percent against the 

growth of 8.22 percent last year and 

slaughtering growth is recorded at 

3.63 percent as compared to 3.35 


LSM has registered an improved 

growth of 4.61 percent as compared 

to 3.29 percent last year. 

The share of construction in industrial 

sector is 12.29 percent and is one of 

the potential components of industries. 

The construction sector has registered 

a growth of 13.10 percent against the 

growth of 6.24 percent of last year. 

Mining and quarrying sub-sector 

contains 14.19 percent share of the 

industrial sector. This subsector 

witnessed a growth of 6.80 percent 

as compared to 4.81 percent last year. 

Electricity generation & distribution 

and Gas Distribution is the most 

essential component of industrial 

sector. This sub-sector has registered 

growth at 12.18 percent as compared 

to 11.98 percent last year. 

The share of the services sector in 

GDP has reached to 59.16 percent in 

FY 2016. Services sector contains six 

sub-sectors including: Transport, 

Storage and Communication; 

Wholesale and Retail Trade; Finance 

and Insurance; Housing Services 

(Ownership of Dwellings); General 

Government Services (Public 

Administration and Defense); and 

Other Private Services (Social 

Services). 

The Services sector has witnessed a 

growth of 5.71 percent as compared 

to 4.31 percent last year. The growth 

performance in services sector is 

broad based, all components 

contributed positively, Finance and 

Insurance at 7.84 percent, General 

Government Services at 11.13 

percent, Housing Services at 3.99 

percent, Other Private Services at 

6.64 percent, Transport, Storage and 

Communication at 4.06 percent and 

Wholesale and Retail Trade at 4.57 

percent. 

Three main drivers of economic 

growth are consumption and 

investment. Pakistani society like 

other developing countries is a 

consumption oriented society, having 

high marginal propensity to 

consume. 

The private consumption expenditure 

in nominal terms reached to 80.1 

percent of GDP, whereas public 

consumption expenditures are 11.8 

percent of GDP. 

Per capita income in dollar terms 

recorded a growth of 2.9 percent in 

FY 2016 as compared to 9.2 percent 

last year. The per capita income in 

dollar terms has reached to 1560.7. 

Total investment recorded the growth 

of 5.78 percent in FY 2016. 

Investment to GDP ratio has reached 

to 15.21 percent in FY 2016. Fix 

investment is registered at 13.61 

percent of GDP. Private investment 

witnessed at 9.79 percent of GDP. 

Public investment recorded an 

impressive growth rate at 10.63 

percent and as percentage of GDP it 

has increased from 3.72 percent to 

3.82 percent in FY 2016. 

Total investment which was recorded 

at Rs.4256 billion in FY 2015 increased 

to Rs.4502 billion for FY 2016. 

During July-6th May FY 2016 credit 

to private sector flows increased to 

Rs.311.7 billion against the expansion 

of Rs.171.2 billion in comparable 

period last year. 

National savings are 14.6 percent of 

GDP in FY 2016 compared to 14.5 

percent in FY 2015. Domestic savings 

is witnessed at 8.3 percent of GDP 

in FY 2016 as compared to 8.4 

percent of GDP last year. 

Present government has launched 

comprehensive plan for investment 

friendly environment and to attract 

foreign investors in the country. 

Expansionary Monetary Policy 

alongwith infrastructure 3 

development drive of the government 

are positive signals for restoring the 

investor’s confidence. 

Pakistan’s policy trends have been 

consistent, with liberalization, deregulation, 

privatization, and 

facilitation being its foremost 

cornerstones. BOI under the Prime 

Minister’s office making efforts to 

provide friendly environment to 

investors. 

During July-April FY 2016 net foreign 

direct investment crossed US$ 1 

billion with growth of 5.4 percent. 

The major inflow of FDI is from US, 

Hong Kong, UK, Switzerland and 

UAE. Oil & gas exploration, financial 

business, power, communications and 

Chemicals remained major sectors 

for foreign investors. 

The government is also aiming to 

explore new markets to export its 

manpower as well as incentives for 

the remittances to further enhance its 

growth. During July-April 2014-15 

remittances stood at $16,034.4 million 

compared to $15,235 million during 

the corresponding period last year. 

Pakistan remained focused and 

committed to implement CPEC 

which is a mega project of US$46 

billion, it will provide major support 

for development of infrastructure in 

coming years. 



Pakistan fan industry has shown 

steady progress since the inception 

of Pakistan in 1947. It is mainly 

clustered in four major cities namely, 

Gujrat, Gujranwala, Lahore and 

Karachi. Few units are 

manufacturing complete electric fan 

on modernize scale whereas other on 

cottage basis. It caters the country's 

requirements for all kinds of electic 

fan and also earns valuable export 

revenue from Africa, Middle East 

and Asia despite tough competition 

with exporting countries such as 

China, India, Malaysia, Thailand, 

Taiwan and Vietnam. 

Electric fan industry has sought 

customs duty exemption on import of 

electrical silicon steel sheet (cold 

rolled) to take export beyond $50 

million. The use of recycled/scraped 

steel sheet is bringing adverse affect 

on quality and durability of the 

products. 

Similarly, fan exporters need to 

acquire UL certification of safety 

standards, if they want to penetrate 

in the North American markets. 

However, the certification process 

costs nearly a million Rupees per 

product, and therefore, only a couple 

of large firms in Pakistan are reported 

to have this certification. 

The Pakistan fan industry produces 

a variety of fans which include, 

Ceiling Fan, Bracket Fan, Exhaust 

Fan, Pedestal Fan, Tilting Box Louvre 

Fan, Circomatic Fan, Louvre 

Pedestal / Table Fan, Louvre Bracket 

Fan, Ventilation Fan etc. 

There are now over five hundred fan 

factories in Gujarat, Gujranwala, 

A review of Fan Industry 

Pakistan fan industry needs incentives to boost export 


Lahore and a few other cities. Most 

of the Fan Industries are in Gujarat 

and fall in light engineering category. 

Exports of Fan 

Pakistan mainly exports consumer 

fans which fall under HS Code 

8414.5900: The export of industrial 

fan is negligible. 

Pakistan Fan Manufacturers and 

Exporters have exported 144,000 

Nos. of electric fans during the month 

April, 2016 and earned export 

revenue of US $4.15 million, 

compared to 118,000 electric fans at 

to US $ 3.39 million in March, 2016. 

This translates a growth of 22.03 

percent and 22.52 percent in terms 

of numbers and value in dollar 

respectively on MoM basis. 

According to Federal Bureau of 

Statistics, if compared with April, 2015 

data of 108,000 Nos. of fans at US 

$2.30 million, it shows an increase of 

33.33 percent and 80.38 percent in 

terms of numbers and value in dollar 

Trade Chronicle - May - June 2016 - Page # 11 

respectively over April, 2015 on YoY 

basis. 

However, on a negative note, Pakistan 

fan manufacturers and exporters 

earned US $21.735 million by 

exporting 943,000 electric fans during 

July – April, 2016 compared to 

1196,000 electric fans at US $ 24.37 

million for in corresponding period last 

year. Thus, it depicts a fall of 21.15 

percent and 10.84 percent 

respectively. 

However, on a very positive note, 

average export price of electric fan 

recorded a handsome growth despite 

fall of electric fan export in 10 months 

of 2015 – 16. Average export price 

during the period July – April 2015 – 

16 stood at US $23.04 per unit 

compared to US $20.38 in 

corresponding period last year. 

The problem of quality control is 

most challenging in case of electric 

fans: despite a huge vendor base 

around the fan production clusters 

in Gujrat and Gujranwala, nearly half 

of the fan manufacturers are 

dissatisfied with quality and 

availability of inputs. 

A major issue is the nonstandardization 

of these parts, which 

does not allow them to export a 

consistent quality product. Therefore, 

to produce high quality fans, large 

firms rely on imported raw materials 

like electrical steel sheets, copper 

enameled wire, ball bearing, PVC, etc. 

Since price of these imported 

components is determined by global 

demand and supply, firms that use 

these components have to put up with 

price fluctuations.


Production of Fans 

Pakistan produced 1.932 million 

numbers of electric fans during the 

period July – June, 2014 – 15 

compared to 1.931 million numbers 

of electric fans in corresponding 

financial year 2013 – 14 (July – June). 

This translates minor growth of 0.03 

percent on YoY basis. 

Similarly, Pakistan produced 1.11 

million electric fans during the first 

nine months of current financial year, 

July – Mar., 2016 compared to 1.326 

million numbers of electric fans, in 

corresponding period last year. This 

translates a fall of 16.30 percenton 

YoY basis. 

In March, 2016 alone, country 

produced 100,331 electric fans against 

196,776 in March, 2015, which too 

shows a fall of 49.01 percent on 

MoM basis. 

According to State Bank of Pakistan 

report, there are about 700 specialized 

vendors in fan clusters in Gujrat and 

Gujranwala to produce different 

components including castings, fan 

guards, stands, rods, enameled 

copper wire, fan bodies, bush gears, 

shafts, etc. but level of vertical 

integration is quite low, as production 

processes are technically divisible. 

Therefore, every vendor produces 

only one or two of the components 

required by fan assemblers. 

Federal budget 2016-17 and 

affect on Fan industry. 

Gujrat Chamber of Commerce and 

Industry President Mian Muhammad 

Ijaz told media that the pre-budget 

recommendations for the progress of 

fan industry had been ignored in the 

federal budget 2016-17. 

Despite repeated appeals by 

manufacturers of electric fans to 

abolish the 27.5 per cent regulatory 

and customs duty on the import of 

electrical steel sheet, the federal 

government has increased the levy 

further by 1pc, putting the figure now 

at 28.5pc. 

He said electrical steel sheet was one 

of the major raw materials 

necessarily required for producing 

energy-efficient fans. “The 

regulatory duty, 17pc sales tax, 5pc 

income tax, 2pc surcharge and other 

levies have put the over-all cost of 

the import around 55pc.” 

He said the federal government had 

failed to give any incentive to the 

export-oriented fans industry. 

GTCCI former president Haji 

Muhammad Ilyas, a pioneer in the 

export of electric fans, said since the 

imposition of heavy duty on the import 

of electrical steel sheet, only three to 

four manufacturing units were directly 

importing the raw material as the 

government through an order had 

relaxed the duty only to those who 

could directly import it. 

But rest of the manufacturers who 

also used to export fans had to rely 

on the commercial importer that 

further enhanced the market rate of 

the sheet whereas the small-scale 

manufacturers were compelled to use 

locally-made sheet after recycling the 

scrap which is considered a 

substandard material because of more 

energy consumption, he said. 

Fan industry set up in Pakistan: 

According to a study of Trade 

Development Authority (TDAP), 

Gujrat, and Gujranwala, are two key 

players in the production of fans 

which is almost 98%. Some of the 

production is also done in Lahore and 

Karachi. This industry primarily 

belongs to small and medium 

enterprisers (SMEs). This industry 

employs up to 30,000 workers. 

However, the down side is that the 

production is mostly seasonal and 

confined to 1st six months of the year. 

Fan industry is producing around 

90,000 indirect employment 

opportunities. Thus its contribution to 

total manufacturing employment is up 

to 1.54%. 

Pakistan’s exports are mainly 

concentrated in low-income markets, 

such as Africa, Bangladesh and some 

Middle East countries. The average 

export price of Fans made in Gujrat 

and Gujranwala is around $23-25, 

which is much lower than some of 

the more sophisticated fans which sell 

for around US$400-500. The retail 

price of Pakistani fans in its export 

markets on the other hand varies 

between US$35-40. 

The industry also requires testing and 

certifications. Certifications are 

normally required for export markets, 

whereas, general performance and 

safety testing are conducted 

regardless. 

Production Capacity: 

On average, 8 to 10 million fans 

are produced per annum with an 

estimated value of Rs. 20 billion. 

Category-wise, production of 

around 63% goes to ceiling fans, 

30% to Pedestal fans, and 

remaining 7% to bracket fans. 

About 7-8 companies are large 

scale manufacturing units which 

have composite integrated system 

i.e. from motor winding to high 

pressure dies casting. These units 

have induced higher level of 

investment on adoption of modern 

technology and automated 

process. 



Given below are profile of leading fan manufacturers and exporters 

which are taken from their website 

Mefco Industries (Mefco 

Fan) 

Mefco Industry (Mefco Fans) was 

established by Mr. Gul Nawaz in 

1987. It started manufacturing fans 

at small scale but with the passage 

of time at “Mefco Fans” the 

production reached at the level where 

they are not only supplying all kinds 

of Electrical Fans of highest quality 

at affordable prices all over Pakistan 

but also in International Markets i.e, 

(Dubai, Saudi Arabia, Sudan & South 

Africa) according to the Market 

demand. 

Noor Fan 

Noor Engineering Company was 

formed in 1970 by the Chief 

Executive Muhammad Shafique as a 

small manufacturing unit of electric 

fans. The company under his 

dynamic leadership, grew rapidly and 

Noor Fans became major recognized 

brand for fans in the Pakistani 

market. 

Golden Star Fans 

Golden Star Fans is the shinning 

name in the fan industry. Based in 

legendary city of Gujrat Pakistan, 

Golden Star Fans has become the 

world’s renowned manufacturer and 

international exporter of fan 

products. 

The owner and managing director, 

Mr. Zulfiqar started his career as a 

lathe machine (Kharad) expert, after 

gaining vast working experience of 

25 years in different fan 

manufacturing factories, finally in 

1977, he founded the Golden Star fan 

industry. 

G.F.C. Fans 

G.F.C began in 1954 as a small 

manufacturing unit for electric fans. 

In 1978, the company grew rapidly 

and today it is one of the leading fan 

manufacturer and exporter company 

of Pakistan. 

G.F.C, under the leadership of Mr. 

Mohammad Ilyas, has also been a 

pioneer in the export of electric fans 

from Pakistan. Starting with its first 

commercial export in 1993, G.F.C is 

now exporting its products to the tune 

of US$ 12 million annually to more 

than 30 countries in the World, 

including countries in Asia, Middle 

East, Africa & Europe. 

Adnan Industries: 

Wahid Fan 

It was established in 1997 as 

modest manufacturing unit in 

Gujrat to manufacture fans under 

the Wahid Fans brand name. 

True to the Company's progressive 

philosophy, the Founder president 

Mian Ihsan Ullah, Managing 

Director Muhammad Adnan and 

Director Yaser Ihsan are always 

on the look-out for the world's 

latest technologies to adopt and 

assimilate in the production of 

Wahid Fan. 

Their Exports of Wahid Fans the 

brand name of Adnan Industries is 

much popular in all over the world 

which bounded them to export their 

products to different countries. 

Such as Kingdom of Saudi Arabia, 

Dubai, Sudan, Bangladesh, 

Afghanistan, Kuwait, Yemen etc. 

Super Indus 

Electrical Industries 

Started with manufacturing of 

electric motors in 1970, after the 4 

decades of continuous progress and 

development, Super Indus Electrical 

Industries has become Indus Group 

of Industries, one of top 

manufacturers of home appliances, 

producing a wide range of products 

from electric fans to washing & 

dryer machines, room air coolers, 

gas appliances and plastic furniture, 

all known for their quality, durability 

and beauty throughout Pakistan as 

well as abroad like Bangladesh, 

Turkey, Sudan, South Africa and 

U.A.E. 



Wahid Industries 

Wahid Industries is a private medium 

sized fan manufacturing company in 

Pakistan. The company started its 

journey in 1945 before the 

independence of Pakistan and within 

no time, marked its presence in the 

industry by establishing a brand name 

known as “Pak Fans”. The history 

of Pak brand is as vibrant and brilliant 

as the products themselves. The 

company traces its origins back to 

1936 when Mr. Abdul Wahid, the 

founder and the president of the 

Company started its operations as the 

manufacturer of light engineering and 

utility products. 

Digital Fans 

Awan Electrical Industries, is one of the 

manufacturers of all kinds of electrical 

fans under the brand name "Digital 

Fans". Since its inception in 1988 Digital 

Fans has grown with excellence. 

Starco Fans 

The Starco Fans are the key products 

of U.I Industries that is proficiently 

engaged in manufacturing and 

delivering a wide range of reliable, 

durable and unique quality products, 

consumable in commercial, industrial, 

and residential buildings. In 1987, they 

took an initiative step to appear on the 

horizon of fan manufacturing industry. 

They export their products to regions 

in Middle East, Africa and Asia. 

Yunas fan 

Yunas Metal Works (Pvt) Ltd. 

Gujrat, is renowned name among 

the fan manufacturers for the last 

six decades and is serving its 

esteemed clients by supplying 

quality products under popular 

brand name "Yunas". 

Rado Fan 

The team (management and the 

workers) of Rado Fan Company have 

a vision to manufacture and export 

all sorts of electric fans, world over 

in near future.Their vision is to 

enlarge their market from the present 

day Middle-East to whole of Africa, 

Europe, America including South 

America, Central America and 

Caribbean. They believe that within 

next decade, they can achieve an 

export target of US Dollars 10 Million. 

Parwaz Engineering 

company 

Parwaz Engineering company was 

established in Pakistan by a group of 

progressive and experienced engineers 

in their respective field. Since their 

establishment with over 35 years of 

manufacturing have successfully gained 

worldwide recognition for their 

innovative designs. 

Rafiq Engineering 

(Pvt.) Ltd. 

Rafiq Engineering (Pvt.) Ltd. 

established in 1957, is recognized as 

the industry leader in Pakistan 

through it's brand Royal Fans. It 

manufactures fans, washing 

machines and room coolers using 

state of the art technology to provide 

their valued customers with reliable, 

energy efficient and high 

performance products. 

Al Ahmad Fan 

Al Ahmad Fans is famous in 

manufacturing export quality, cost 

effective and energy saving electric 

fans and home appliances. They are 

providing quality products in Pakistan 

as well as abroad. Al Ahmad Fans is 

a well-established Exporter and 

Supplier of wide array of Electric 

Fans and Electric Washing Machine. 

Ark Fan 

ARK Electrical Industries was 

established in 1980. In the beginning 

when the fan industry was not 

working in large scale, Mr. 

Muhammad Latif Bajwa (CEO) and 

Mr. Muhammad Sharif Bajwa 

(Director) with their management 

started to make the armatures of 

Electric Motors, Electric Fans, 

Washing Machines and Dryer 

Machines. In 1987 after successful 

experiment of 7 years the company 

decided to plunge in the field of 

manufacturing of Electric Fans. 

Shaheen Fan 

Haroon Amjad Electrical Industries 

was setup in 1979. Its brand namely 

Shaheen Fans began to grow due to 

its quality, which makes the Shaheen 

Fans one of the leading manufacturer 

and exporter of fans in Pakistan 

today. They export fan to Yemen, 

UAE., Sudan, Bangladesh, 

Afghanistan, and all other Gulf 

Countries. 



“Pakistan is passing through a very 

grave energy crisis situation and to 

overcome this, government of 

Pakistan and 

government of 

Punjab are 

endeavoring 

very hard, so 

that, Pakistan 

w o u l d 

overcome this 

energy crisis 

in the near 

future”, this 

was stated by 

chief guest, 

Ch Sher Ali 

K h a n , 

Minister for 

Mines & 

Minerals, 

w h i l e 

addressing the 

opening 

ceremony of 14th 

International 

Exhibition for Oil Gas & Energy 

Industry, POGEE-2016 at Expo 

Centre, Lahore. 

“Government of Pakistan has given 

lots of initiative to the private sector 

to come forward and enhance 

investment along with the projects 

being put up by the federal and 

provisional governments, so that the 

energy crises and energy shortfall of 

5 to 6 thousand megawatt is 

overcome by next year or maximum 

by 2018, we are able to put up first 

100 megawatt of solar energy in 

Bahawalpur in Qaid e Azam solar 

park, also setting wind power projects 

in Sindh ”, he said. 

"The exhibition is the right place of 

the foreign investment in the country", 

he further added. 

Punjab Minister inaugurates POGEE-2016 exhibition in Lahore 

A decade of excellence in the energy industry 

The minister further highlighted 

various power & energy projects 

initiated by the current government 

Mr. Sher Ali Khan, Minister for Mines & Minerals, Govt. of Punjab cutting the ribbon 

to inaugurate 14th POGEE Pakistan - 2016, at Expo Center, Lahore. Also seen in the 

Photograph Mr. Shah Jahan Mirza MD, Private Power & Infrastructure Board (PPIB), 

Mr. Amjad Ali Awan, CEO, AEDB Federal Ministry of Water & Power, Mr. Aamer 

Khanzada, MD, Pegasus Consultancy. The Three Days event, Pakistan Oil, Gas & 

Energy Exhibition, is being held at Expo Centre, Lahore. 

on which work is being done in a very 

fast track manners. Later on, the 

minister officially inaugurated the 

three day POGEE-2016, exhibition. 

Mr. Shah Jahan Mirza, Managing 

Director, Private Power & 

Infrastructure Board (PPIB), 

Government of Pakistan, 

Congratulated organizer in bringing 

together all the stakeholders of the 

power and energy sectors to interact 

with each other and to see where 

power sector is moving. He 

appreciated the POGEE’s third 

consecutive success in Lahore. 

Trade Chronicle - May - June 2016 - Page # 15 

Mr. Amjad Ali Awan, Chief Executive 

Officer, Alternative Energy 

Development Board (AEDB), 

Ministry of Water & Power, 

Government of Pakistan, highlighted 

that the energy crises is multidimensional, 

we need not to focus just 

on energy but we need to focus on 

oil and gas sector as well." 

Managing 

Director 

Pegasus 

Consultancy 

Mr. Aamer 

Khanzada, in 

his welcome 

remarks said 

that Pegasus 

Consultancy is 

the pioneer and 

leading event 

organizer in 

Pakistan. 

The exhibition 

has gathered 

more than 300 

local and 

international 

companies from around 35 

countries, with a majority from, 

China, Germany, Italy, Russia, 

Canada, Denmark, Austria, Egypt, 

France, Hong Kong, Bahrain, 

Switzerland, Poland, Bangladesh, 

Japan, Pakistan, Scotland, Singapore, 

South Africa, U.A.E., U.K, U.S.A, 

Australia, Iran, South Korea, Japan, 

Belgium, Malaysia, Spain, Poland, 

Taiwan, Thailand, Sweden, 

Netherlands, Saudi Arabia, and 

Turkey. 

Pegasus is one of the leading event 

organizing companies of Pakistan 

and it is an honor for them to 

consecutively hold 13 successful 

editions of POGEE. Now the 14th 

edition of POGEE exhibition has 

been organized third time in Lahore 

and has gained a good number of 

visitors.


" Gas supply is being continued 24 

hours to all the industry, closed power 

plants have already been started 

functioning & 

loadsheding is on 

its lower and 

minimum 

degree", this was 

stated by the 

federal minister 

for petroleum& 

n a t u r a l 

resources, Mr. 

Shahid Khaqan 

Asbbasi while 

visiting the 

closing day of 

three days, 

Pakistan oil gas 

& energy 

exhibition, 

POGEE-2016 at 

expo centre , Lahore. 

"I am amazed to see such a huge 

foreign participation from 35 

countries", he said. 

Mr. Khaqan Abbasi also attended a 

Federal minister for P&NR, Shahid Khaqan Asbbasi, 

visits POGEE-2016 

conference with the theme, 

“Designing a sustainable energy 

mix”, he appreciated the exclusive 

Federal Minister for Petroleum & Natural Resources, Shahid Khaqan Abbasi 

visiting a stall during the 14th POGEE Pakistan - 2016 at the Expo Centre 

Lahore. 

sessions on energy sector reform : 

prospect & challenges and on coal 

& indigenous renewable resources". 

“ The exhibitors have negotiated deals 

worth millions of dollars during the 

three-days, while scores of inquiries 

were received by the companies as 

the Oil, Gas & Energy exhibition, 

POGEE-2016, concluded at the Expo 

Centre, Lahore, 

on a very 

successful note. 

During the three 

day of the 

exhibition, a large 

number of 

b u s i n e s s 

professionals, 

diplomats, foreign 

and commercial 

attaches and 

delegates, 

government 

officials, visitors 

and industry 

leaders including 

visitors from 

cities like Faisalabad, Sialkot, 

Gujranwala, Rawalpindi Islamabad, 

Peshawar, Hyderabad, Ghotki, 

Muzzafargarh, Shakohpura, Multan, 

Lahore and Karachi have visited the 

exhibition and witnessed the 

technologies & product at display. 

SSGC has been conferred with the coveted award of 'Best Corporate Booth' at Pakistan Oil and Gas Energy Exhibition, 

commonly know as POGEE. 14th edition of country's premier energy sector event is being convened in Lahore from May 19 

to to 21, 2016. Booth was aesthetically created as a prototype of the 42" dia, 352-km RLNG Project. Syed imran Ahmed, 

Chief Manager, Corporate Communications, SSGC receiving the Award from Aamer Khanzada, Managing Director, Pegasus 

Consultancy. 



POGEE exhibitors receive overwhelming response 

Foreign exhibitors have offered many 

solutions for the energy problems in 

Pakistan at the 14th Pakistan Oil, Gas 

and Energy Exhibition 2016 at Expo 

Centre, Lahore. Many trade visitors 

have shown their interest to acquire 

ready solution for alternate energy 

system mostly solar panels for 

commercial, industrial as well as 

domestic consumers. The exhibitors 

from other countries were of the 

opinion that they are having good 

business at the POGEE-Pakistan- 

2016. 

Victor Kostenko, manager sale of a 

Russian company, global insulator 

group stated," We are participating in 

Pakistan for the first time and we are 

having a good response from the 

exhibition,". "It's always pleasant to 

start in a new environment with 

potential", he further added. 

"POGEE-2016 is a great venture and 

a platform for all the exhibitors 

showcasing, related services and 

technology providers as well as for 

the end users", remarked Manager 

engineering MubashirSaeed of 

Solutions Engineering (pvt).Ltd a local 

exhibitor. 

On 2nd day of the exhibition, a large 

number of business professionals, 

diplomats, foreign and commercial 

attaches and delegates, government 

officials, visitors and industry leaders 

including visitors from cities like 

Faisalabad, Sialkot, Gujranwala, 

Rawalpindi Islamabad, Peshawar, 

Hyderabad, Ghotki, Muzzafargarh, 

Shakohpura, Multan, Lahore and 

Karachi have visited the exhibition 

and witnessed the technologies & 

product at display. In addition, 

POGEE-2016 organised a highly 

focused Conference program that 

Mr. Sher Ali Khan, Minister for Mines & Minerals, Govt. of Punjab, visiting a 

foreign stall during the opening day of 14th POGEE Pakistan - 2016 at the 

Expo Centre Lahore. 

A foreign participant briefing local visitors at the 14th, International Oil, Gas 

& Energy Exhibition being held at expo center, Lahore. 

was aimed to bringing in South Asia’s 

Energy Industry into the limelight. 

The 12th International Conference 

was held on 21st May, 2016 at Lahore 

Expo Centre. It was based on the 

theme “Designing a sustainable 

energy mix”. It was consist of two 

exclusive sessions on," energy sector 

reform : prospect & challenges and 

on coal & indigenous renewable 

resources. 

Eminent speakers participated from 

both local and international 

organizations & associations, like, 

Sergi Transformer Protector, France, 

Schneider Electric, UAE, Oil and Gas 

Regulatory Authority (OGRA), 

Pakistan Council of Renewable 

Energy Technologies (PCRET) , 

Khyber Pakhtunkhwa Oil & Gas 

Company Ltd, Centre for Coal 

Technology, Punjab University, 

Energy Research Center, Comsats 

institute of information technologyand 

National Institute of Science & 

Technology, NUST. 



LCCI 9th Achievement 

Award ceremony held 

The President of Pakistan Mamnoon 

Hussain has said that Pakistan has 

become a profitable land to do 

business because of government’s 

well-tailored and well-consulted 

policies. Mamnoon Hussain was 

speaking at the 9th Achievement 

Award recently. Federal Ministers, 

top government officials, LCCI 

President Sheikh Muhammad Arshad, 

Senior Vice President Almas Hyder, 

Vice President Nasir Saeed, former 

office-bearers, Executive Committee 

Members and renowned 

businessmen were present on the 

occasion. 

He said that our Government is 

taking long-term, mid-term and short 

term measures to bring the economy 

back on the rail. The continuous 

support and co-operation extended by 

the business community have 

significantly improved the health of 

official revenues that gives me an 

immense satisfaction. 

While highlighting the contribution of 

the Industrialists, Mamnoon Hussain 

pointed out that Pakistan’s 

entrepreneurs ensured the economic 

viability of the state that inherited 

negligible industrial base at the time 

of independence. He said that the 

accelerated growth has been 

achieved with the cooperation of 

business community. The government 

is availing the assistance of private 

sector under public-private ventures. 

He said that impact of these everimproving 

economic indicators would 

soon reach the masses that would 

ultimately help decrease the gap 

between haves and have-nots. 

While appreciating the LCCI 

initiative, he said that businessmen are 

writing new success stories with their 

Chief Executive Officer of Haier Pakistan and Ruba Pakistan Pvt Ltd Javed 

Afridi has been awarded "Businessman of the Year" gold medal at the Lahore 

Chamber of Commerce and Industry’s 9th Achievement Award Ceremony. 

sheer commitment and dedication 

despite all odds. He showed the 

optimism that entire business 

community will work hard to cope 

with new challenges. In his address, 

the LCCI president Sheikh 

Muhammad Arshad said that the 

business community has a remarkable 

capacity to succeed. This is partly due 

to their individual initiatives and efforts 

and partly due to the fact that it is a 

country which is blessed in many 

respects. 

He said that our country is blessed 

with a uniquely rich natural resource 

base. We have some of the finest and 

most precious minerals and metals in 

the world. We have one of the largest 

coal reserves estimated at over 175 

billion tons. It is believed this can 

generate 100,000 MW electricity for 

at least for one hundred years. This 

is an impressive context for visioning 

the future of a prosperous Pakistan. 

But it demands that we act smartly 

and responsibly in exploiting our 

natural resource endowment for 

securing high long term growth and 

improve standards of living in the 

country. It is only possible when we 

fully understand our challenges and 

can muster the will to remove hurdles 

impeding our journey to prosperity in 

a timely manner.” The LCCI 

President said that Pakistan is passing 

through testing times. We are faced 

with many challenges, both nationally 

and internationally. However, it is 

comforting that the government is 

taking all steps to tackle these 

challenges. 

Earlier, President of Pakistan 

Mamnoon Hussain gave away 

awards. Hamza Munir Bhatti 

received Son of Lahore Award, Mian 

Nadeem Nisar, Dr. Sohail, Javed 

Afridi, Tanvir Ahmad, Daniyal Jawed 

Qureshi, Muhammad Irfan Butt, 

Dawar Rashid, Shabbir Bhatti, Qudrat 

Ullah, Mian Javed Ali and Hannan 

Asif received President Businessman 

of the Year Gold Medal, Rifat-un- 

Nisa and Nabila Intisar received 

Woman Entrepreneur Achievement 

Award 2016 and Salman Basit, 

Khawaja Shahid Rashid, Amjad 

Hussain, Mian Abid, Yasir Anwar, 

Salman Hanif Jewellers and Shahid 

Nazir received Achievement Awards. 

LCCI President Sheikh Muhammad 

Arshad, Senior Vice President Almas 

Hyder, Nasir Saeed, former 

presidents Ijaz A. Mumtaz, Eng. 

Sohail Lashari, Irfan Qaiser Sheikh 

and Shahzad Ali Malik given 

appreciation awards. 



The national flag carrier of country - 

Pakistan National Shipping 

Corporation (PNSC) plans to buy 

more Oil tanker vessels in its fleet in 

view of the steady growth in Liquid 

Cargo freight market. However, the 

Dry Bulk Market is weak; hence, the 

Corporation strives to keep vessels 

deployed at best available rates. 

PNSC is also exploring new 

opportunities like Oil Storage facilities, 

both shore and floating, and will soon 

venture into Ferry Service by the end 

of current financial year subject to 

approval from Government of 

Pakistan. 

PNSC over the years gradually 

increased its cargo carrying capacity 

(DWT) with induction of modern 

ships. Presently, PNSC manages a 

fleet of 09 ships, real estate and a 

repair workshop. In its fleet is a mix 

of double hull Aframax 

tankers, Panmax bulk 

carriers, Supramax, 

Handymax and Handysize 

bulk carriers, all of modern 

vintage, having a total 

carrying capacity of over 681 

thousand tonnes of 

deadweight, highest since its 

inception in 1979. 

It transports all types of 

cargoes on several 

geographical routes covering 

almost entire world. Its Handymax 

and Handysize dry bulk carriers carry 

iron and steel products, fertilizers, 

minerals, forest products, ores, 

Ports & Shipping News 

PNSC plans to add more oil tankers 

Earns after tax profit of Rs 1,364 million in 9MFY2016 


bauxite, alumina, cement and other 

construction materials while 

Panamax dry bulk carriers carry coal 

Mr. Arif Elahi 

Chairman / CEO 

and iron ore for energy and steel 

production as well as grain for feedstocks. 

Financial Statement 9MFY 2016 

The PNSC Group has achieved after 

tax profit of Rs 1,364 million during 

nine months period ended March 31, 

2016 against Rs 1,051 million in the 

same period last year. Earnings Per 

Share for the Group increased to Rs 

10.33 from Rs 7.96 in the 

corresponding last period. Despite the 

pressure and major financial crunch 

faced by global shipping industry due 

to drastic reduction in Bulk freight 

rates internationally, evident by the 

significant reduction in BDI index at 

a lowest of 290 points, PNSC 

achieved better results by focusing on 

more profitable ventures besides 

retaining its repute as one of the major 

contributors to sea borne trade in 

Pakistan. 

However, adjacent to the best 

possible combination of foreign 

charter and its own fleet, PNSC 

made a substantial growth in revenue 

of 49% and 16.2% in the area of slot 

charter and own vessel oil business 

respectively, thereby 

offsetting losses incurred on 

Dry Bulk segment and 

maintaining its turnover at 

competitive level. Though 

reduction in revenue by 16% 

the corresponding direct 

operating expenses reduced 

by 28% to Rs 6,700 million 

from Rs 9,298 million, 

thereby resulting an 

improvement in Gross Profit 

to Rs 2,917 million as 

against Rs 2,126 million for 

the same period last year. 

PNSC also took the initiative by 

swapping its expensive loans and 



prepayment of Rs. 700 million in order 

to reduce high Mark-up, the loans 

were acquired in 2010 & 2014 at three 

months Kibor plus spread of 2.2% 

and 1.6% respectively, and achieved 

a milestone with significant reduction 

in spreads to the level of 0.4% and 

0.5% respectively, that will result in 

substantial reduction in Finance Costs 

over the remaining period of loan. 

It may be mentioned here that PNSC 

vision is “to be a prominent player and 

key stakeholder in global shipping by 

maintaining diversified and efficient 

marine assets.”The mission of the 

corporation is “to provide reliable & 

efficient shipping services to overseas 

and Pakistan’s sea borne trade, 

maintaining relationship of integrity 

and trust with our customers, partners, 

employees, safeguarding interests of 

its stakeholders and contributing 

towards betterment of national 

economy, society and the 

environment.” 

Tankers Services 

PNSC has transported approx 80 

million tonnes of crude since 1998 

when it started tanker operations. At 

present PNSC operates 4 modern 

KICT Welcomes First 

Call of New MSC Middle 

East Loop 1 Service 

MSC Lana Voy-JA618R made its 

inaugural call at Karachi International 

Container Terminal (KICT), marking 

the launch of a new Middle East Loop 

1 (MEL 1) Service. To mark the 

event, KICT held a maiden voyage 

ceremony, attended by Mr Keith Lau, 

Chief Executive Officer of KICT 

along with senior representatives of 

MSC Agency Pakistan (Pvt) Ltd, 

importers and exporters using this 

MEL 1 service and KICT staff. “We 

are excited to have this new service 

double hull aframax tankers of 

107000 DWT capacity. 

Bulk Carriers 

PNSC acquired its first bulk carrier 

namely "KAGHAN" in 2006. Since 

then PNSC has been able to add 

further 6 modern bulk carriers of 

different type and sizes to cater for 

all kinds of large and small bulk trades. 

These include a 2009 handy size, one 

calling at KICT and are pleased to 

note MSC’s direct service to the 

Middle East from Karachi” said Keith 

Lau.Operated by Mediterranean 

Shipping Company, this new service 

handy max, one supramax and 

another panamax of 2003 vintage. 

With an average age under 09 years 

PNSC is well placed to cater for any 

world wide trade. Today its bulk 

carriers are operating from all 

continents carrying iron ore, coal, 

grains, other bulk minerals, timber, 

fertilizers and other finished products. 

NVOCC 

PNSC operates world wide NVOCC 

operation through slot charter 

arrangements with major container 

carriers. Any and all ports of the 

world are served. 

Agency 

PNSC offers exclusive agency 

services with its decade of 

experience as an owner operator. 

PNSC manages an efficient and 

client oriented agency 

department. 

With more than hundreds of calls 

in the port of Karachi and Bin 

Qasim, PNSC offer first class 

agency services to any principal. 

Cost effective services for cargo 

operations, repairs, ship chandling, 

stores etc. 

follows a rotation of Karachi-Jabel 

Ali-Sharjah-Sohar-Karachi, 

additionally serving all upper Gulf 

destinations via Jabel Ali. The weekly 

service calls at KICT every Monday. 



Karachi port handled 

41m tonnes of cargo in 

July-April 

The Karachi port handled more than 

41 million tonnes of cargo during the 

first 10 months (July to April) of this 

fiscal year, reflecting a year-on-year 

rise of 14 per cent, official figures 

said. 

The increase came mainly on the 

back of improved tonnage of imports 

which grew 21pc to 32.9m tonnes 

from 27.1m tonnes a year earlier. 

In contrast, handling of exports fell 

7pc to 8.1m during July-April FY16 

from 8.8m tonnes recorded in the 

same period of the last fiscal year. 

However, the trend may vary when 

it is calculated in terms of value. 

The handling of dry general cargo 

PQA’s annual revenue 

increases to over Rs12bn: 

chairman 

Chairman Port Qasim Authority 

(PQA), Agha Jan Akhtar said that 

despite inheriting a number of 

problems, PQA’s annual revenue 

increased to more than Rs 12 

billion. 

He stated this while addressing a 

meeting with the members of the 

Federation of Pakistan Chambers of 

Commerce and Industry (FPCCI) 

organized by the Federation’s 

Standing Committee on Ports and 

Shipping at the Federation House 

recently. 

He said gas shortage had come down 

in the country as a LNG terminal with 

a capacity of 400 MMCFD was 

grew 17pc to 21.2m tonnes from 

18.1m tonnes handled in the same 

period of the preceding year. The 

handling of dry bulk cargo also rose 

8pc to 7m tonnes compared to 6.5m 

tonnes. The tonnage of liquid bulk 

cargo increased 13pc to 12.7m tonnes 

from 11.3m tonnes. 

However, there was phenomenal rise 

in handling of containerized cargoes 

as both imports and exports 

registered a remarkable growth. 

operating at Port Qasim and gas 

shortage would end in near future with 

the establishment of two more LNG 

terminals at the port. 

Agha said PQA is working more 

vigorously for the development of 

industrial area under the Authority as 

1250 acres of land allotted in the past 

for the Pakistan Textile City would 

be given back to the Authority. He 

Containers loaded with the export 

cargo rose 14.5pc from nearly 

686,000 twenty-foot equivalent 

units (TEUs) a year ago to 785,000 

TEUs. Containerised imports rose 

12pc to 820,000 TEUs from 732,000 

TEUs. 

The Karachi port managed to handle 

higher number of all categories of 

ships, except container vessels which 

fell 7pc to 612 ships during the 10- 

month period under review from 665 

a year ago. 

The handling of general cargo ships 

surged 50pc to 310 vessels from 207 

reported in the same period of the last 

fiscal year. The arrival of oil tankers 

at the Karachi port increased from 

405 to 456 vessels. 

The overall growth in the handling of 

all the categories of vessels rose 9pc 

to 1,554 ships from 1,429 in the same 

period of the preceding year. 

said earlier only five cargo trains 

were operating on monthly basis from 

Port Qasim but now three cargo trains 

were operational daily. Apart from 

LNG terminals, 1320MW electricity 

would be generating from Port Qasim 

within a year, he said. 

Earlier, welcoming the PQA 

chairman, Senior Vice President 

FPCCI Sheikh Khalid Tawab said the 

modernization of ports was inevitable 

in changing regional situation. 

Tawab suggested that waterway 

project be integrated with Port 

Qasim for speedy inland 

transportation. 

Vice President FPCCI Hanif Gohar 

offered to build a desalination plant 

at Port Qasim to overcome water 

shortage being faced by the port’s 

industrial zone. 



Cement Industry 

Budget proposals to dampen cement industry’s growth 

Federal budget 2016-17 has 

increased the Federal excise duty on 

cement from 5 percent on retail price 

to Rs. 1000 per ton. This will 

negatively affect the economy as the 

slowdown in construction activities 

due to increased cement prices will 

reduce the consumption of cement. 

This will further increase illegal cross 

border imports of Iranian cement 

through under invoicing and 

smuggling that will dampen the local 

industry’s growth and will reduce the 

contribution to national exchequer. 

Cement industry despatched 35.523 

million tons of cement during July 

2015 to May 2016 period which is 

10.55 percent higher than the 

corresponding period of last fiscal 

year. The growth in cement 

consumption has been led solely by 

domestic consumption. Statistics 

shows that the overall domestic 

despatches in north based mills 

increased by 16.64 percent to 24.667 

million tons and in south based mills 

by 23.7 percent to 5.37 million tons. 

In total, the domestic demand 

increased by 17.84 percent during the 

eleven months of current fiscal year. 

Quantitatively, total domestic 

despatches were 30.03 Million Tons 

from July 15 to May 16 compared to 

25.49 Million Tons during same period 

of last fiscal year while exports 

dropped by 17.41 percent to 5.48 

Million Tons during the first eleven 

months of current fiscal against 6.64 

Million Tons during same period of 

last fiscal year. 

Cement despatches to domestic 

markets during the month of May 16 

increased by 

22.78 percent to 

3.06 Million Tons 

compared with 

2.49 Million Tons 

during same 

month last year. 

Exports during 

May 16 were 

558,000 Tons 

against 560,000 

Tons during May, 

15. Total 

despatches during 

May, 16 were 

3.622 Million Tons compared to 3.056 

Million Tons during same month last 

year showing increase of 18.52 

percent. Zone wise figures show that 

the domestic despatches by mills 

located in North were 2.5 million tons 

compared with despatches of 2.04 

million tons during same month last 

fiscal depicting a growth of 22.31 

percent. In South the domestic 

despatches were 563,942 tons 

compared with despatches of 451,521 

tons in May 2015 depicting a growth 

of 24.9 percent. 

A spokesman of All Pakistan Cement 

Manufacturers Association 

(APCMA) said that increase in FED 

on cement is against the industry’s 

demand as we were seeking some 

reduction in taxes to further enhance 

domestic dispatches. 

The proposed change in FED will 

increase the illegal trade in the form 

of smuggling of cement into the 

country. Federal excise duty on 

cement has been increased from 5 

percent on retail price (i.e. Rs. 425 

per ton) to Rs. 1000 per ton in the 

federal budget 2016-17. ‘The impact 

of this increase calculates to Rs. 34 

per bag’, the spokesman added. 

He appealed to the government to 

review its decision as this will not only 

affect the consumers but also the 

industry as we fear that due to high 

cement prices, the consumption will 

come down. 

Constantly falling exports are adding 

to the industry woes. Apart from the 

exports to India which increased by 

33.36 percent from the low base 

reached last year, exports to 

Afghanistan and other destinations 

declined by 10.34 and 32.39 percent 

respectively in the first eleven months 

of this fiscal. 

The exports to other destinations 

declined by whopping 32.39 percent 

due to economic slowdown in 

countries where Pakistan has been 

exporting. The government should 

provide incentives to the industry to 

take back the Afghan market and 

earn precious foreign exchange, the 

Spokesman added. 



People & Events 

Hussain Dawood receives Lifetime Achievement Award 

Jawwad Cheema to 

lead Shell Business 

in Pakistan 

Jawwad Cheema has been 

appointed as the Chief Executive 

Officer/Managing Director of 

Shell Pakistan Limited with effect 

from August 01, 2016. He 

replaces Omar Sheikh who is 

moving on to another senior 

leadership role within the Shell 

Group. 

Jawwad is currently the Vice 

President for Shell Business 

Operations in the Global Real 

Estate function with Royal Dutch 

Shell. He joined Shell in 1997 and 

has held several senior leadership 

roles in Downstream Operations, 

in Pakistan and internationally 

within the Group, with extensive 

experience in Retail. 

Shell is one of the oldest 

multinationals in Pakistan and has 

been present in the South Asian 

region for over a century. It is the 

largest international oil company 

in Pakistan with a network of 

almost 800 fuel stations across the 

country. It is also the largest 

Lubricants Marketing Company 

and the second largest jet-fuel 

supplier. 

President MAP Talib S Karim presenting ‘Lifetime Achievement Award’ 2016 to 

Hussain Dawood, Group Chairman of Dawood Hercules Corporation, Engro 

Corporation and HubCo at a ceremony. 

Marketing Association of Pakistan 

has conferred the Lifetime 

Achievement Award 2016 to 

industrialist and ardent philanthropist, 

Mr. Hussain Dawood for his 

remarkable contributions in a broad 

range of sectors. The award was 

presented by Talib S. Karim, 

President, Marketing Association of 

Pakistan, and S. Masood Hashmi 

(Managing Director, Orient McCann 

Erickson) at their flagship event 

MARCON. 

Hussain Dawood, Group Chairman, 

Dawood Hercules Corporation, Engro 

Corporation and HubCo, while 

accepting the award said “It is a 

distinct honour to receive the MAP 

Life Time Achievement Award, and 

this year I am grateful to be its 

recipient.” 

Talib S. Karim, President, Marketing 

Association of Pakistan, said 

“Marketing Association of Pakistan 

is one of the oldest and one of the 

most prominent associations of 

Pakistan. It has been honouring 

individuals who have excelled in the 

field of Marketing and Management 

every year since 1987. 

Muhammad Azfar Ahsan, Chairman, 

MARCON’16 & Founding CEO, 

Nutshell Forum, said “Mr. Hussain 

Dawood chairs an array of profit and 

not-for-profit ventures namely 

Dawood Hercules Corporation Ltd. 

the group’s flagship holding arm with 

investments in foods and energy, 

Engro Corporation Ltd.; Hub Power 

Company Ltd., the largest 

Independent Power Producer in 

Pakistan; Karachi Education 

Initiative, which funds the graduate 

management school Karachi School 

of Business & Leadership, and The 

Dawood Foundation, with its legacy 

of establishing various education and 

health institutions across the country. 

Razak Bengali nominated 

chairman PGBC 

Razak H.M. Bengali has been 

nominated as Chairman, Pakistan- 

Germany Business Council of the 

Federation of Pakistan Chambers 

of Commerce and Industry 

(FPCCI) for the year, 2016, by the 

President of FPCCI, Abdul Rauf 

Alam. He has been assigned the 

task of promoting bilateral trades 

between Pakistan and Germany. 

Razak Bengali has a rich 

experience of trades and 

commerce with Germans. 



Zia Shahid elected CPNE 

president 

Zia Shahid and Shaheen Qureshi have 

been elected as President and Senior 

Vice President of Council of Pakistan 

Newspaper Editors (CPNE), 

respectively, during its annual election 

held recently. 

The process of electing 44 members 

standing committee has also been done 

before the annual election. 

According to detail, Zia Shahid and 

Shaheen Qureshi have been elected as 

President, senior vice President of 

CPNE and Ijaz-ul-Haq as secretary 

general. 

Others who were elected include 

Rehmat Ali Razi, Vice President 

Punjab; Amir Mehmood, Vice 

President Sindh; Anwar Sajjadi, Vice 

President Balochistan; Haroon Shah, 

Vice President KP; Mehtab Khan, Vice 

President Rawalpindi and Islamabad; 

Ghulam Nabi, Secretary Finance and 

Tahir Farooq, Information Secretary. 

Dr Ishrat made fellow in 

US centre 

The Woo-drow Wilson International 

Centre for Scholars has appointed Dr 

Ishrat Husain its public policy fellow 

for 2016-17. 

The Washington-based institution 

announced that Mr Husain would spend 

nine months in residence at the Wilson 

Centre and work on a project on the 

governance situation and institutional 

capacity in Pakistan and how this has 

affected the country’s economy. Mr 

Husain was dean and director of the 

IBA in Karachi between 2008 and 

2016. He is currently professor emeritus 

at the IBA and chairman at the Centre 

for Excellence in Islamic Finance. 

Syed Masood Hashmi reelected 

as MAP President 

Management Association of Pakistan in 

its 540th Executive Committee meeting, 

elected unopposed, Syed Masood 

Hashmi as the President for another one 

year period. He was earlier elected 

unopposed as the President following 

the 49th Annual General Meeting of 

the MAP in the 531st Executive 

Committee of MAP on 27th April 

2015. 

Other Office bearers of MAP viz. 

Asif Ikram (Vice President), Amir 

Jamil Abbasi (Honorary Secretary) 

and Sarmad AN (Honorary 

Treasurer) were also elected 

unopposed. 

Akbar Durrani made 

Balochistan Secretary 

Finance 

The Government of Balochistan 

notified, recently that Secretary Home 

and Tribal Affairs, Capt Akbar 

Hussain Durrani (retd) has been 

transferred and posted as Secretary 

Finance with immediate effect while 

Commissioner Kalat division, 

Muhammad Akbar Harifal has been 

transferred and posted as Secretary 

Home and Tribal Affairs with 

immediate effect. Noor-ul-Haque 

Baloch waiting for posting has been 

posted as Secretary Culture and 

Tourism with immediate effect. 

In anticipation of heat wave that is expected to hit Karachi in near future, 

SSGC joined hands with Alamgir Welfare Trust for setting up 'Heat Stroke Relief 

Camps' at 15 Locations of the mega town. These camps will offer awareness to 

the pedestrians through brochures and prevention to those who suffer from heat 

stroke. Comps are stuffed with beds for the patients, cold drinking water, juices, 

ORS, pedestal fans and towels with an exclusivity of an insulated room for the 

effected people. The first camp kicked off today, adjacent to the head office of 

Alamgir Welfare Trust. 



PSX Budget proposals 

KATI chief for exempting 

machineries, raw 

materials from taxes 

President, Korangi Association of 

Trade & Industry (KATI), Zahid 

Saeed, has urged that government to 

exempt the machinery and raw 

materials for industrial purpose, which 

are not available locally, from taxes 

and duties. 

He recommends the government to 

also exempt the existing industry form 

taxes and duties on the required 

equipments for introducing new 

technologies. 

Pakistan Stock Exchange (PSX) 

held a pre-budget media briefing 

with his board members Arif Habib, 

Yasin Lakhani, Abid Ali Habib, Abdul 

Qadir Memon, Ahmed Chinoy and 

Haroon Askari. 

In a presentation, Arif proposed to 

the government to withdraw in FY17 

budget tax on the issuance of bonus 

shares, Capital Value Tax (CVT), 

rationalize Capital Gains Tax (CGT) 

up to 10 percent depending on a 

three-tier holding period, extend the 

one-year 20 percent income tax 

rebate on new listings at PSX to five 

years, restore tax incentives on Real 

Estate Investment Trusts (REITs) 

partly withdrawn in FY16 budget 

and end the doubling of sales tax on 

brokerage services. “The revenue 

impact of our proposals is (next to) 

zero: mere Rs 2.91 billion. Which 

constitutes only 0.4 percent of total 

taxes the PSX contributes,” said 

chairman Arif Habib Group. 

He was of the opinion that promoting 

the process of industrialization is a 

must to curb unemployment in the 

country. 

Zahid said that it was reported that 

the government as promised will 

exempt new industries from income 

tax for a certain period. “This is a 

good sign, and we hope that problems 

of existing industries would be 

addressed accordingly,” he added. 

President of KATI also called for 

expansion of tax collection, adding 

that it is not wise to burden the 

existing taxpayers. Better strategy is 

to promote financial activities and 

facilitate industry, it would not just 

create employment opportunities but 

would be effective to increase tax to 

GDP ratio, he opined. 

Delegates from the Royal College of Defense Studies, UK, visited the Pakistan 

Stock Exchange on May 27, 2016. The Managing Director, Mr. Nadeem Naqvi, 

Welcomed the guest including Mr. John Tucknott, British Deputy High 

Commissioner, Karachi, and gave detailed presentation on Pakistan Economy 

& Capital Market. Also present were Mr. Tawfiq Asghar Hussain, Mr. Yasin 

Lakhani, Mr. Abid Ali Habib and Mr. Ahmed Chinoy, PSX Board Members. The 

delegation comprised of: 

Maj Gen (Retd.) Simon Leslie PORTER, UK, Mr. John Tucknott, British Deputy 

High Commissioner, Karachi, Ms. Teona AKUBARDIA, Georgia, Brigadier Henry 

Angus WATSON, UK, Colonel Talab KH A.F. ALFLEEJ, Kuwait, Lt. Col. Namig 

Latif Oglu HAMIDLI, Azerbaijan, Captain Ayhan Turket KOCPINAR, Turkey, 

Colonel Marcel Johan Bernard Marie LAMBRICHS, Netherlands, Colonel Vuka 

Sean MAHLASELA, South Africa, Colonel M'Hamed MAHOUAR, Morocco, 

Group Captain Timothy John O'BRIEN, UK, GP. Capt. Adam Mark SANSOM, 

UK, Captain Luis Andres SILBERBERG SCHOVELIN, Chile, Colonel Oleksandr 

TIULENIEV, Ukraine, Colonel Zoran TOMASEVIC, Serbia, Colonel Giuseppe 

TORTORELLI, Italy, Captain Robert Charles VITALI, UK, Mr. David Hugh 

MEYER, UK, Ms. Kerry BENSTEAD, UK. 



Iqbal Ghori, Anis 

elected President, VP of 

ICMA Pakistan 

The Council of Institute of Cost and 

Management Accountants of 

Pakistan in its 341st meeting 

elected Muhammed Iqbal Ghori as 

the President of Institute. Ghori 

elected on the Council for the 

period of 2015-17 and prior to this 

he was serving in the capacity of 

Vice President and also chairing 

Examination and Research & 

Publications Committees of the 

Institute. 

Mr. Ghori has over 25 years of 

experience of serving in the public 

and private sector. Professionally, 

he is Director Strategic Planning 

and CFO Sadaqat Limited. He is 

Chairman SAFA Committee on 

Governmental and Public Sector 

Enterprises Accounting. He is 

renowned writer and presenter. He 

is renowned writer and presenter. 

Subsequently, Anis-ur-Rehman was 

elected as Vice President of the 

Institute. Since being elected on the 

Council for the tenure of 2015 -17, 

Anis has been holding chairmanship 

of CPD and Internal Audit 

Committees. Anis is Additional 

Director Finance at Pakistan Civil 

Aviation Authority. 

Usama Qureshi appointed 

chairman of FPCCI body 

Abdul Rauf Alam President FPCCI 

has appointed Usama Qureshi as the 

Chairman of FPCCI's Standing 

Committee on Energy for the year 

2016. Usama Qureshi is a young 

enthusiastic entrepreneur with over 

12 years of working experience in two 

large energy sector organisations like 

K-Electric & Pakistan State Oil. He 

is also serving as Chairman of 

Pakistan Bahrain Business Council of 

FPCCI. 

Afzal Chamadia made 

VC FPCCI body 

Abdul Rauf Alam, President 

Federation Pakistan Chamber of 

Commerce (FPCCI) has appointed 

Afzal Chamadia as Vice Chairman 

of FPCCI’s Standing Committee on 

“Consumer Products” for the year 

2016. Chamadia has a vast 

experience in consumer sector. 

Farooq Afzal nominated 

as Chairman PRBC, 

FPCCI 

President of the FPCCI Abdul Rauf 

Alam has nominated Muhammad 

Farooq Afzal Chief Executive of ITN 

Group as Chairman of Pakistan- 

Russia Business Council (PRBC) of 

Federation of Pakistan Chambers of 

Commerce and Industry (FPCCI) for 


After nomination as Chairman, 

Farooq Afzal said that consumer 

goods market in Russia consists of 

2.7 trillion dollar and if a proper 

strategy is adopted than Pakistan can 

surge its consumer goods export to 

Russia up to one billion dollars within 

a year. 

IBA appoints new chair 

The elite Institute of Business 

Administration (IBA) has notified 

Dr Faiza Mushtaq as head of the 

department of Social Sciences and 

Liberal Arts. 

IBA is one of the country’s leading 

business schools that has been 

making a strong push to enter into 

the Social Sciences as well. 

Dr Mushtaq earned her PhD from 

Northwestern University, 

Chicago, in 2010, one of the 

world’s leading sociology 

departments. She joined IBA in 

2014, and rose quickly to become 

programme director after one year, 

and department head in her 

second year. The term is for three 

years. 

She replaces Dr Framji Minvala, 

who served as the first chair of 

the new department. 

IBA has grown rapidly in the 

years when Dr Ishrat Husain 

served as its dean, with new 

campuses outside Karachi and 

expanded course offerings. Dr 

Faiza’s appointment is a signal 

that the university intends to take 

its growth into new areas 

seriously. 



The 21st Century Business and 

Economics Club has published a 

revised and expanded version of the 

book A fountain of knowledge on the 

life and work of the founder of the 

Karachi Literature Festival and 

managing director of Oxford 

University Press, Ameena Saiyid. 

The book was launched at a local 

hotel recently. 

Number of leading speakers 

expressed their views on Ms Saiyid’s 

personal and professional 

achievements and paid tribute to her. 

They termed her as a role model. 

A fountain of knowledge launched 

Shayma was barely five or six years 

old, Ms Saiyid used to take her by 

public transport to dance and singing 

however, mentioned that sometimes 

it became difficult to distinguish 

whether it was a biography or an 

autobiography. 

Ameena Saiyid thanked the 

organisers for the launch. She said 

the book was written 10 years back 

by Adil Ahmed and now her daughter 

Shayma had updated it. 

Thanking all the speakers for the 

tributes they showered on her, Mrs 

Saiyid, in return, thanked Lt-Gen 

(Retd) Haider for having helped her 

set up the OUP head office in 

Korangi. 

Former governor of the State Bank 

of Pakistan Dr Ishrat Hussain, Amin 

Hashwani, Hum TV’s Sultana 

Siddiqui, Sirajuddin Aziz and Retired 

Gen Moinuddin Haider have greatly 

admired the personlity of Ameena 

Saiyid who work hard to get this 

posision. 

Ms Saiyid’s daughter Shayma Saiyid 

gave a very touching account of her 

mother. She said in the 1970s when 

their family lived in Lahore and 

Ameena Saiyid 

classes (the latter were conducted by 

Chhote Ghulam Ali). She said not only 

that, she would take her anywhere 

she would go. She said it’s because 

of her mother that she had a passion 

for dance and music. 

Sirajuddin Aziz said the book was 

filled with a sense of modesty. He, 

She thanked Salahuddin Haider and 

Rashid Siddiqui for their role in 

updating and publishing the work and 

her daughter for having done all the 

spadework in the update. Farrukh 

Mazhar presented the vote of thanks. 

It may be mentioned here that Mrs 

Saiyid was presented with an OBE 

(Order of the British Empire) by the 

UK Government in 2005, and later 

the highest literary award of the 

Government of France. 

JS Global Capital Limited - 

Pakistan's premier and one of 

the largest Brokerage & 

Investment Banking firms has 

successfully concluded the 

Pakistan Investment 

Conference (PIC) 2016 in 

London. A group photo of 

delegates of the Pakistan 

Investment Conference with 

Mr Muhammad Zubair, MOS/ 

Chairman Privatization 

Commission of Pakistan, and 

Syed Ibne Abbas, Pakistan 

High Commissioner to the UK 

at Pakistan High Commission 

London on 24-5-2016. 



Telecommunication News 

Telenor granted 4G 

licence for $395m 

Zong superior MBB devices now available on 

cheezmall.com 

Pakistan has awarded a $395 million 

4G licence to Norwegian telecom 

giant Telenor, as it seeks to capitalise 

on a booming domestic mobile market 

some two years since broadband 

internet arrived in the country, says 

media report. 

In 2014, Pakistan auctioned its first 

4G broadband licence to China`s Zong 

for $210 million, along with 3G licences 

to Zong, the UAE`s Warid, and Pakist 

an`s domestic Mobilink. The total 

raised in the auction was $1.2bn. 

In the first quarter of 2015 smartphone 

shipments to the country soared by 

123pc, according to the Pakistan 

Telecommunication Authority`s 

annual report, one of the fastest growth 

rates in the developing world. 

Since then broadband use has 

exploded, with the number of users 

growing to around 29 million from a 

mere 1.9 million -a higher percentage 

than India, Nepal and Bangladesh. 

Pakistan`s state-run Telecom 

Authority (PTA) had auctioned the 

license to local and international 

telecom companies, with Telenor 

winning the bid. `The licence for 850 

MHz band will be awarded on base 

price of $395 Million in accordance 

with the schedule,` an internal 

statement from PTA said. 

`The licence will be awarded to Telenor 

within 30 days of payment,` it added. 

Telenor Pakistan is 100 percent owned 

by Norway`s Telenor Group, one of 

the largest mobile operators in the world. 

In this picture Mr. Niaz A. Malik, Deputy CEO Zong and Mr. Aurangzeb Khan, 

CEO cheezmall.comalong with their teams after signing an agreement through 

which Zong's high-speed MBB devices will be available on cheezmall.com. 

Zong, Pakistan’s only 4G operator, 

has moved a step further to offer its 

Mobile Broadband (MBB) devices on 

cheezmall.com, one of Pakistan’s top 

websites for online sale and purchase. 

This development is a result of an 

agreement recently signed between 

the two organizations. Customers can 

place orders for the MBB devices on 

the website and can pay Cash On 

Delivery (COD), this is a great 

initiative especially for those 

customers who are hesitant to make 

online transactions. The payment for 

the device shall be made on receipt 

via courier. 

Niaz A. Malik, Deputy Chief 

Executive OfficerZong, “The 

collaboration with Cheezmall.com 

would ensure easy availability of our 

high-powered MBB devices at 

affordable rates. Zong is the only 4G 

services provider in Pakistan and our 

unmatched 4G portfolio will definitely 

help give new meaning to high speed 

user experience. Cheezmall.com is a 

prolific online entity and on account 

of its excellent repute and massive 

outreach, Zong’s subscribers across 

the country can have our unparalleled 

MBB devices by simply placing online 

orders from their homes, workplaces 

or anywhere,” he said. 

Aurangzeb Khan, CEO 

cheezmall.com said, “A significant 

number of people cannot visit markets 

due to their busy schedules. For such 

people, the availability of the fastest 

internet devices at our website is a 

blessing. Hundreds of thousands of 

people shop at our website every 

month. The addition of Zong’s MBB 

devices would be a much valuable 

addition in our partners and portfolio. 

The best thing about this is that the 

customers have to pay only after the 

consignments are delivered to them,” 

he added. 

On an average, over 500,000 internet 

users visit cheezmall.com and over 

two million people are presently doing 

business with this website. Zong 

customers can activate the MBB 

devices purchased online from the 

nearest Customer Services Centre or 

franchise. 



Telenor Pakistan 

announces Irfan Wahab 

Khan as new CEO 

Telenor Group has recently appointed 

Irfan Wahab Khan as Chief 

Executive Officer of Telenor 

Pakistan. The current CEO of Telenor 

Pakistan, Michael Foley,will join 

Telenor Bulgaria on the same position 

and continue as Chairman of the 

Board of Directors of Tameer 

Microfinance Bank in Pakistan. Both 

Foley and Khan will be members of 

the Group Executive Management 

team. The new appointments will be 

effective from 1st August 2016. Mr. 

Irfan Khan comes from the position 

of Deputy CEO and Chief Marketing 

Officer (CMO) of Telenor Pakistan. 

He has been with Telenor for 12 

years and was the first employee in 

Telenor Pakistan when he started as 

Executive Vice President and Head 

of Corporate Affairs Division in 2004. 

Putting its next-generation IoT product 'Telenor Companion' watch to test for 

the social good, Telenor Pakistan collaborates with Picture Autism, a nonprofit 

working to create awareness about Autism in Pakistan. The pilot phase comprises 

distribution of Companion watches among autistic children and to test its efficacy 

in addressing the needs of autistic children and their families. The picture shows 

Muhammad Aslam Hayat, Chief Corporate Affairs & Strategy Officer, Telenor 

Pakistan, along with the Corporate Responsibility team, donating Telenor 

companion devices to Saba Iqbal, CEO Picture Autism. 

Telenor Pakistan employee briefs Anusha Rehman, Minister of State for IT and 

Telecom on digital products and applications at Telenor Digital Fest in 

Islamabad. Also present (third from R) are Irfan Wahab Khan, Deputy CEO 

Telenor Pakistan |Dr. Ismail Shah, Chairman Pakistan Communication Authority 

and Abdul Mobeen, Director Regulatory Telenor Pakistan. 

Ufone appoints Younas 

Iqbal Sheikh as CCO 

Ufone, Pakistan’s premier telecom 

provider, has appointed Mr. Younas 

Iqbal Sheikh as their new Chief 

Commercial Officer (CCO). He will 

now be leading the Marketing and Sales 

Departments and bear responsibilities 

to drive business growth and maintain 

Ufone’s supremacy in the market. 

Sheikh brings with him vast experience 

in the telecom industry, spanning twenty 

years and a proven track record of 

successful. Sheikh has had the flare to 

perform in crucial markets, with 

expertise in key role areas of Sales & 

Distribution, Customer Services, 

Operations and Marketing. 

His previous stints include leadership 

roles at Warid Telecom (Pvt.) Ltd as 

CCO, Ufone as Head of Sales and 

General Manager Sales, Mobilink as 

Director Distribution, Worldcall as 

COO and Wi-Tribe as Executive 

Director Sales & Marketing. Sheikh 

was also associated with Siemens and 

InstaPhone earlier in his career. 

“I’m very excited to take on this new 

role at Ufone,” said Mr. Sheikh. “Ufone 

has a great team to work with and a 

strong customer brand.” 

Rainer Rathgeber, CEO, Ufone said – 

“It is a pleasure to welcome someone 

of Sheikh’s caliber back to the Ufone 

team. His familiarity with the sector and 

Ufone will strengthen the Ufone team 

in its continuous effort to focus on 

customer needs.” 



Banking & Insurance News 

NBP Records 23% 

growth in Profit 

The Board of Directors of National 

Bank of Pakistan, in their meeting 

held on April 28, 2016 at the Bank’s 

Head Office Karachi, approved the 

financial statements of the bank for 

the quarter ended March 31, 2016. 

The bank, for the three month period 

ended March 31, 2016 recorded a 

pre-tax profit of Rs. 6.2 billion 23% 

higher than Rs. 5.0 billion for the 

corresponding period of 2015. 

Similarly, the after-tax profit also 

remained 23% higher at Rs. 4.0 billion 

compared to Rs. 3.3 billion for the 

quarter ended March 31, 2015. This 

translates into Earnings per share of 

Rs 1.90 for March 2016 as against 

Rs.1.54 for quarter ended March 31, 

2015. Pre- tax and after tax return 

on equity stand at 22.6% and 14.8% 

respectively; whereas pre-tax and 

after tax return on assets are at 1.5% 

and 1% respectively. 

Despite a general reduction in the 

discount rate during the year, the net 

interest income increased from Rs. 

10.6 billion in Q1-2015 to Rs. 12.0 

billion in Q1-2016 reflecting an 

increase of 14%. The provision 

charge against the NPL was 

significantly lower at Rs. 1.06 billion 

compared to Rs. 3.05 billion in Q1- 

2015. 

Non mark-up / interest income 

decreased by 23% to Rs. 6.5 billion 

compared Rs. 8.5 billion for the Q1, 

2015. The drop is mainly attributed 

to the lower gains generated from sale 

of securities. As compared to Rs. 

1,136 billion as of March 2015, the 

Bank’s deposits increased by 12% to 

Rs. 1,274 billion as of March 31, 2016. 

The Bank’s branch network consists 

of 1403 domestic branches, including 

82 branches dedicated for Islamic 

banking. 

ATM network has now increased to 

1,150+ machines, with 6 ATM centres. 

With deployment of Core Banking 

Application, the bank’s has now become 

more capable of launching technologybased 

products like online / mobile 

banking, cash management, cards etc. 

NBP establishes 110 

branches of Islamic 

banking 

The National Bank of Pakistan 

(NBP) is working to promote Islamic 

banking and within a short span of 

18-months had set up 110 Sharia 

compliant bank branches in the 

country. This was stated by Saima 

Rahim, NBP Regional Head of 

Islamic Banking while speaking to 

newsmen at an Iftar hosted by NBP. 

Provincial Minister for Excise and 

Taxation, Mian Jamshed Kakakhel 

was chief on the occasion which was 

also attended by the President NBP, 

Iqbal Arshraf. Saima Rahim also said, 

NBP is expanding Islamic Banking 

branches across the country and 

Islamic banking is also being extended 

to the Federally Administered Tribal 

Area (FATA). 

Soneri Bank announces 

first quarter results 

Soneri Bank Limited posted a profit 

before tax of Rs 822.31 million and 

profit after tax of Rs. 539.21 million 

for the first quarter ended 31 March 

2016. The Board in its 149th meeting 

held recently, approved the Bank’s 

first quarterly un-audited financial 

statements. Deposits grew by 5.61 

percent during the period closing at 

Rs.195.62 billion (December 2015: 

Rs.185.22 billion). Net Advances 

are almost at 2015 year end position 

standing at Rs.112.76 billion 

(December 2015: Rs.112.00 billion). 

The Bank’s Net assets (including 

surplus) amounts to Rs.17.60 billion 

as at 31 March 2016. The Bank 

continues to follow a prudent policy 

of making provisions against 

infected loan portfolio in line with 

regulatory requirements Soneri 

Bank has a unique market position 

in trade-finance and transactions 

banking services and boasts a loyal 

and satisfied client-base in all its 266 

branches all over the country. 

The Bank is committed to meet the 

increasing expectations of its 

customers and continue to provide 

them par-excellence services, for 

which the bank has been investing 

prudently in information technology, 

human resources, marketing and 

infrastructure. 



Silkbank declares Rs 515 

million operating profit 

Silkbank Limited in its Board meeting 

held recently declared operating profit 

of Rs 515 million for the quarter 

ended March 31, 2016. The bank's 

profit before tax of Rs 311 million for 

the quarter registered a significant 

increase of 313 percent compared to 

the same period last year. The bank's 

total assets base grew notably by 6 

billion over this period highlighting the 

operational strength of the bank. 

Deposits for the period have increased 

by Rs 4.2 billion taking the total 

deposit base to Rs 85.34 billion - 

reflecting depositors' growing 

confidence in the bank. Net mark-up 

income of the bank grew significantly 

by 46 percent over the same period 

last year, highlighting the bank's 

operational efficiency. 

Moreover, the bank was also able to 

curtail its non-mark-up expenses 

which dropped by 11 percent. 

Silkbank which is now complaint on 

the Capital Adequacy Ratio (CAR) 

and the Minimum Capital 

Requirement (MCR) of the State 

Bank of Pakistan is well poised to 

register strong growth and earnings 

in 2016. 

Meezan Bank gets Best 

Islamic Bank award 

Global Finance Magazine has 

announced Meezan Bank, Pakistan's 

first and largest Islamic Bank as 

"Best Islamic Bank in Pakistan" in 

official Press Release of their ninth 

annual awards for the "World's Best 

Islamic Financial Institutions." 

Meezan Bank has been a regular 

recipient of Global Finance awards 

since 2008 for its contribution to the 

growth of Islamic financial system 

in the country, commitment to quality 

and consistent support to the needs 

of its clients. The bank has been 

recognised for upholding both the 

spirit and the letter of Shariah law, 

retaining reliable and socially 

responsible Islamic finance 

operations. 

Global Finance, founded in 1987, is 

one of the most prestigious finance 

publications working with corporate 

leaders, bankers and investors to 

chart the course of global business 

and finance. 

Meezan Bank 

announces results for 

First Quarter 2016 

The Board of Directors of Meezan 

Bank in its meeting, held at Karachi 

on April 26, 2016 approved the 

unconsolidated financial statements 

of the Bank and consolidated 

financial statements for the quarter 

ended March 31, 2016. 

Profit after tax increased to Rs. 

1,337 million from Rs. 1,313 million 

earned in corresponding quarter last 

year despite the lower discount rate 

in the current quarter. The Earnings 

Per Share (EPS) increased to Rs. 

1.33 from Rs. 1.31. The Bank’s 

other income registered an increase 

of 15% with fee, commission and 

brokerage income contributing 47% 

of total other income. 

The Bank’s deposits increased by 

20% to Rs. 469 billion while its 

financing portfolio grew by 37% 

compared to corresponding period 

last year to Rs. 201 billion. Quality 

of assets is very good withan NPL 

ratio of 3% and a comfortable NPL 

coverage ratio of 117% (December 

31, 2015: 116%). This is the second 

best in the banking industry – both 

conventional and Islamic. 

National Bank of Pakistan (NBP) and 

Industrial & Commercial Bank of China 

(ICBC), Pakistan signed MoU on bilateral 

cooperation in Karachi, Pakistan on the 

celebrations of ICBC’s completion of five 

years in Pakistan. The MoU was signed 

by Syed Ahmed Iqbal Ashraf, President 

NBP and Mr. Li Xiao Xin, Deputy CEO, 

ICBC. Mr Masood Karim Shaikh, Group 

Chief – International Banking Group 

(NBP) & Mr. Shaikh Tariq Abdullah, 

Divisional Head – Financial Institutions 

(NBP) were also present. 



UBL crowned ‘Best 

Bank’ at Pakistan 

Banking Awards 

United Bank Limited (UBL) has been 

declared Pakistan’s Best Bank 2016 

at the first Pakistan Banking Awards 

held in Karachi. This award 

recognizes a bank that has 

demonstrated the most significant 

contribution to national development 

and the most effective management 

of its resources including its 

employees, clients, franchise, 

community and financials. The 

Awards were held under the auspices 

of the Institute of Bankers Pakistan 

(IBP), DAWN and A.F. Ferguson 

and Co. 

Ashraf Mahmood Wathra, Governor 

of the State Bank of Pakistan (SBP), 

was the Chief Guest on the occasion. 

The awards were adjudged by a 5- 

member jury of experts comprising 

Syed Salim Raza, former SBP 

Governor and 

former CEO 

Pakistan Business 

Council, Fuad Azim 

Hashimi, CEO 

Pakistan Institute of 

Corporate 

Governance, Nargis 

G h a l o o , 

Chairperson State 

Life Insurance 

Corporation, Azhar 

Hamid, former 

Banking Mohtasib, 

former member 

Board of Directors 

of SBP and former Country Head of 

Standard Chartered Pakistan and 

Shehzad Naqvi, former Country 

Head of ABN AMRO and Citibank 

in Pakistan and Singapore. 

Wajahat Husain, President & CEO 

UBL, commenting on the occasion 

said: 

“I am proud and honoured that UBL 

has been declared the Best Bank at 

the country’s first Banking Awards. 

UBL has been a leading financial 

institution for the last 57 years. During 

this period, the Bank has come to be 

acknowledged as a progressive and 

innovative bank. These two identities 

of the Bank have seen it contribute 

greatly towards financial inclusion 

and economic development of 

Pakistan. UBL’s primary pursuit is to 

provide superior financial products 

and services to our valued customers; 

this stems from our corporate belief 

‘Where You Come First’.” 

Tameer Bank wins two 

prestigious awards at the 

Pakistan Banking 

Awards 2016 

Tameer Microfinance Bank bagged 

the ‘Best Microfinance Bank’ and the 

‘Bank the Unbanked’ awards at the 

country’s first ever Pakistan Banking 

Awards 2016, held at the Mohatta 

Palace, Karachi. These awards were 

given to banks that performed well 

and contributed significantly towards 

social impact and financial inclusion 

in Pakistan. 

The first award category, ‘Bank the 

Unbanked’ recognizes Tameer Bank 

for the work it has done on financial 

inclusion in Pakistan. As the first 

microfinance bank and the financial 

powerhouse behind Easypaisa, 

Tameer Bank has brought financial 

services to millions of Pakistanis, 

with over 75,000 touch points and 

more than 21 million active 

customers. This award is 

particularly significant as it reflects 

Tameer’s penetration in rural and 

low-income urban segments of the 

society, particularly women. Tameer 

Bank, through its microfinance 

leadership and branchless banking 

services, is committed to 

accelerating socio-economic 

development. 

Tameer Bank grabbed its second 

award ‘Best Microfinance Bank’ for 

its exceptional performance in 

expanding outreach through 

penetration, efficiency and 

innovations along with both strong 

bottom line and social impact. 

Tameer Bank announces 

Ali Riaz Chaudhry as its 

new President and CEO 

Tameer Microfinance Bank 

announced that Ali Riaz Chaudhry has 

assumed the role of bank’s new 

President and Chief Executive 

Officer effective 16th May 2016. Ali 

was appointed to take charge after 

Telenor Group completed its 100% 

acquisition of Tameer Bank last 

month. 



PSO profits up 42pc in 

July-March 

The Pakistan State Oil (PSO), the 

largest oil marketer in the country, has 

announced a 42 percent increase in 

its net profit to Rs4.59 billion for the 

first nine months of the current fiscal 

year as the state-run company 

witnessed a decline in cost of sales. 

The company’s net profit amounted 

to Rs3.24 billion in the same period a 

year earlier, said a filing to the 

Pakistan Stock Exchange. It posted 

earnings per share of Rs16.91 for 

July-March 2015/16 as compared to 

Rs11.93 in the same period last year. 

During the first nine months of the 

current fiscal year, the company’s 

gross revenue fell 21 percent to 

Rs650.74 billion. The company 

reported that its cost of sales fell 29 

percent to Rs475.08 billion. Operating 

cost and financial cost also remained 

low that helped increase the 

profit margins. 

During the quarter ending 

March 31, the company 

reported a loss of Rs520 

million as falling oil prices bit 

its inventory. Other income 

of the company also declined 

37 percent to Rs1.6 billion 

during the period. 

During the period under 

review, the PSO continued to 

hold its market position in the industry 

despite stiff market conditions with 

an overall market share of 55 percent, 

a statement said. 

“A growth of 2.4 percent was 

witnessed in total liquid fuels sales 

volume over the same period last 

year, which was primarily driven by 

growth in sales volume of white oil 

and black oil by 3.9 percent and 0.9 

percent respectively,” the company’s 

added. 

Major increase was witnessed in 

motor gasoline sales, which increased 

13.5 percent amid lower local 

petroleum prices and increased motor 

vehicle population. 

PSO black oil sales volume 

increased 0.9 percent despite 5.3 

percent decrease in industry 

volumes, owing to increased 

availability of natural gas /regasified 

liquefied natural gas to 

power producers. 

Asia Insurance receives 

Gold Metal & FPCCI 

achievement award 

Asia Insurance Company Limited has 

been awarded gold medal for its 

"Excellence Insurance Services" by 

the Federation of Pakistan Chambers 

of Commerce and Industry (FPCCI) 

during the 04th Achievement Awards 

ceremony. Mr. Zain ul Haq Qureshi 

Executive Director Asia Insurance 

has received Gold Medal & Award 

from President of Pakistan Mamnoon 

hussain & Abdul Rauf Alam - 

President FPCCI. 

Pakistan’s top financial solutions company Intelligenes joins forces with UAE’s 

Monami Group to cofound Monami Tech, a partner of Australian stock exchange 

listed fintech company Novatti. The new venture aims to bring foreign investment 

and advanced turnkey fintech solutions to Pakistani financial services market. 

The picture shows (L-R): Umer Nawab, COO Intelligenes and Monami Tech 

(Pakistan), Najam us Saqib, CEO Intelligenes and Monami Tech (Pakistan), 

and Ammar Afif, CEO Monami Group. 



HBL declares Rs 9 billion 

profit after tax 

HBL has declared a consolidated pretax 

profit of Rs 13.9 billion for the 

first quarter of 2016 with profit after 

tax of Rs 9.0 billion. Consequently, 

earnings per share for the quarter 

were Rs 6.15 along with which the 

bank declared a dividend of Rs 3.50 

per share (35pc). HBL grew its 

average balance sheet by 15 percent 

over the first quarter of 2015, with 

average current deposits growing by 

Rs 81 billion. 

The domestic CASA ratio now stands 

at 89 percent and the cost of domestic 

deposits reduced to 2.8 percent for 

Q1 2016. This somewhat alleviated 

the continued downward pressure on 

margins, and enabled HBL to 

increase net interest income by 6 

percent to Rs 20.2 billion for the 

quarter ended March 31, 2016. 

Non mark-up income, excluding 

capital gains, increased by 12 percent 

over the first quarter of 2015, as fees 

and commissions rose by 25 percent 

to Rs 4.3 billion for Q1 2016. This 

growth was driven mainly by 

increased income from Home 

Remittances and a doubling of fees 

related to both credit and debit card 

activity. Other fee drivers such as 

Bancassurance, trade and general 

banking fees continued to make 

significant contributions. 

Administrative expenses were 

reduced by 6 percent over the 

previous quarter, but increased 

compared to Q1 2015, mainly due to 

the sponsorship of the Pakistan Super 

League and increase in the branch 

network. During the current quarter 

HBL further expanded the reach of 

its ATM network to nearly 2,000 

ATMs and now has almost 14,000 

POS terminals to increase card 

acceptance and provide customers 

with further convenience. Provisions 

reduced by 36 percent over Q1 2015, 

despite conservative provisioning by 

the bank and the coverage ratio 

remains robust at 88.5 percent. 

HBL has recently achieved 

another landmark by becoming the 

first Pakistani bank to receive a 

license for opening a branch in 

Urumqi in Western China. The 

bank expects that the branch will 

be operational by the end of the 

year and will further cement links 

with China. 

With ample liquidity and a sound 

Capital Adequacy Ratio of 17 

percent, HBL is well positioned to 

leverage growth opportunities related 

to the China Pakistan Economic 

Corridor. The bank remains focused 

on maintaining its demonstrated track 

record of growing low cost deposits 

while prudently managing its costs and 

credit quality. 

Askari Bank celebrates 

launch of branch in China 

Askari Bank held a corporate dinner 

at Marriot Hotel, Islamabad, to 

celebrate the launch of Askari Bank's 

representative office in Beijing, China. 

Ambassador Charge d'affairs, 

People's Republic of China, Zhou 

Lijian was chief guest at the occasion, 

which was also attended by CPEC 

Project Director Major General Zahir 

Shah (Retd), country representatives 

of Chinese organisations and Askari 

Bank President Syed M. Husaini. 

Speaking on the occasion, Husaini 

said, "For more than two decades, 

Askari Bank has been actively 

facilitating Chinese companies 

operating in Pakistan. Keeping the 

recent China-Pakistan Economic 

Corridor (CPEC) in sight, Askari 

Bank has geared all its resources to 

ensure that we play a significant role 

in supporting this great initiative. As 

such, we have secured permission 

from the Government of China to 

open a representative office in 

Beijing. This office will help facilitate 

foreign trade business and develop 

close liaison with our correspondent 

banks in China. 

The office is supervised by Chinesespeaking 

staff belonging to Pakistan 

and China. We are also expanding our 

China desk, upgrading our Gwadar 

branch and enhancing our Chinese 

speaking resources across Pakistan 

to better facilitate our Chinese 

clients." 



Q1 results: MCB Bank 

posts Rs 6.021 billion 

profit after tax 

The Board of Directors of MCB 

Bank Limited, met under the 

Chairmanship of Mian Mohammad 

Mansha, on April 19, 2016 to review 

the performance of the bank and 

approve the financial statements for 

the three month period ended March 

31, 2016. MCB Bank reported Profit 

Before Tax (PBT) of Rs 9.078 billion 

and Profit After Tax (PAT) of Rs 

6.021 billion. 

Net mark-up income of the bank was 

reported at Rs 11.468 billion, down 

by 4 percent over corresponding 

period last year. On the gross markup 

income side, the bank reported a 

decrease of Rs 2.7 billion which was 

mainly on account of decreased 

yields on advances and investments 

in-line with the interest rate 

movement. However, advances and 

investments grew by Rs 9.7 billion 

and Rs 39.5 billion on average 

respectively, when compared with the 

first quarter of last year. On the 

interest bearing liabilities side, the 

consistent tapering of high cost 

deposits along with the decrease in 

minimum deposit rate resulted in a 

significant drop in cost of funds. 

On the non-markup income front, the 

Bank reported a base of Rs 2.969 

billion with contributions from fee, 

commission and dividend income. The 

administrative expense base 

(excluding pension fund reversal) 

recorded a nominal increase of 6 

percent over corresponding period 

last year. On the provision front, 

MCB Bank Limited continued with 

its recovery trajectory and posted a 

reversal in provision of Rs 446 million 

in the first quarter of 2016. 

Total asset base of the bank was 

reported at Rs 1,060.3 billion 

presenting a growth of 4.3 percent 

over December 2015. Analysis of the 

asset mix highlights that net 

investments have increased by Rs 57 

billion (+10 percent) over December 

31, 2015. Coverage ratio of the Bank 

was reported at 86.91 percent with 

infection ratio of 6.29 percent. On the 

liabilities side, deposit base of the 

Bank recorded an increase of Rs 25 

billion (4 percent) over December 

2015. MCB Bank Limited continued 

to enjoy the highest CASA mix in the 

banking industry of 94 percent with 

current deposits increasing by 7 

percent and savings deposits by 3 

percent over December 2015. 

Return on Assets and Return on 

Equity were reported at 2.32 percent 

and 21.19 percent respectively, 

whereas book value per share stood 

at Rs 102.79. The Board of Directors 

declared 1st interim cash dividend of 

Rs 4.0 per share for the period ended 

March 31, 2016. 

January-March 2015-16: 

bank Alfalah posts Rs 

2.467 billion profit after 

tax 

Bank Alfalah's financial results for 

the first quarter of 2016 remained 

positive, with the bank registering 

profit before taxation of Rs 3.794 

billion - a growth of 25 percent, as 

against the corresponding period last 

year. The bank's profit after tax was 

recorded at Rs 2.467 billion during 

Jan-March 2015-16, a 24 percent 

increase as compared to the prior 

corresponding period. 

Despite interest rates being at their 

lowest, net mark-up income of the 

bank was reported at Rs 7.095 billion, 

improving by 4 percent over the 

corresponding period last year, while 

the overall net revenue earned by the 

bank amounted to Rs 9.216 billion, a 

11 percent increase over the 

corresponding period last year. 

Expense management controls were 

further strengthened during the period 

with growth in administrative 

expenses curtailed at 3 percent. 

Resultantly the bank managed to 

further improve it's cost to income 

ratio which now stands at 57percent. 

Earnings per share improved to Rs 

1.55 at the end of the first quarter 

2016 from Rs 1.25 reported in March 

last year. 

The bank's lending activity remains 

healthy with gross ADR reported at 

55 percent in March 2016. The bank's 

non-performing loans (NPLs) 

coverage stands at 81 percent. The 

overall net provision against advances 

and investments improved by 66 

percent against the corresponding 

quarter last year, on account of higher 

recoveries and lower gross 

provisioning. "Bank Alfalah continues 

to grow consistently and deliver 

sound financial performance despite 

a challenging external environment. 

We are optimistic that we will 

continue to maximise shareholder 

value while creating innovative 

solutions to help our customers 

succeed," said Atif Bajwa, President 

& CEO, Bank Alfalah. 



State Life Insurance Corporation of 

Pakistan in the year 2015, has paid 

total amount of Rs.13.762 billion 

against all claims, thus providing 

financial protection and savings to 

millions of valued policyholders and 

their families nationwide, this was 

stated by Chairperson State Life, 

Nargis Ghaloo, in an inaugural speech 

on the occasion of the Convention 


Executive Directors Jamil Anwar, 

Irfan Anwer Baloch and Izqar Khan, 

along with G.M. Marketing Azhar 

Hussain, Senior Corporate Executives 

and delegates from all over Pakistan 

attended the Convention. 

Nargis Ghaloo said that ‘State Life’ 

is the leading insurer in the country 

and is extending the benefits of life 

insurance to all sections of society, 

especially to the more affluent 

segments of the society spread in 

towns & villages throughout 

Pakistan. 

She said that State Life in the year 

2015 secured 1st Year premium 

SLIC achieved record income of Rs66.804bn in 2015: 

Nargis Ghaloo 

including renewal, which has 

increased from Rs. 59.627 billion to 

Rs. 66.804 billion; showing an 

Nargis Ghaloo 

increase of 12 percent. State Life has 

procured new premium of $3.798 

million in Gulf Region covering 

Kuwait, UAE and Saudi Arabia in the 

year 2015. The marketing force of 

State Life has extended financial 

protection to 675,463 families 

nationwide during the year 2015. The 

total number of in-force policies till 

the end of 2015 are 5.236 million. 

She said that in 2012, State Life 

launched Bancassurance, an 

alternative and cost effective channel 

of distribution. The Corporation’s 

current banking partners include 

United Bank Ltd (UBL), First 

Women Bank Ltd (FWBL), National 

Bank of Pakistan (NBP), NIB, 

Samba Bank, Summit Bank and 

Silkbank. Efforts are being made to 

expand this network of distribution. 

Chairperson also highlighted the 

performance of State Life’s Group 

& Pension Division; it has so far 

secured new premium of Rs. 7.096 

billion from 1,131 groups in the year 

2015. Besides this, State Life also 

offers customized pension products 

according to the needs of the client. 

The clients not only include local 

institutions, but foreign embassies as 

well. State Life currently is preparing 

to launch Window Takaful 

operations. 

Professor Dr Atta-ur-Rahman FRS,NI,HI,SI,TI and UNESCO Science Laureate addressing on the "Science Teaching in 

Urdu’, under the presiding over of Justice ® Haziqul Khairi at a local hall. Mrs Sadia Rashid, President, Shura Hamdard 

Pakistan is also present on this occasion. 



Mr. Gulzar Firoz, Chairman, Pakistan 

Tanners Association (PTA) said in a 

statement that government decision 

making five Sectors including 

Leather Zero Rated I.e. Exemption 

from Sales Tax Payment was a 

positive step, which will help increase 

export. 

He said that this positive decision 

should be implemented in true spirit 

and exemption should be applied on 

all purchases on Raw Materials 

including Chemicals, Packing 

Materials etc. He said that Refunds 

should also be given on Local Taxes 

and levies I.e. DLTL. 

However, he was not happy with the 

announcement that Refunds would 

be given to exporters in the month of 

August whereas earlier the Finance 

Minister had committed to pay them 

in July. 

PTA welcomes government decision of zero-rated 

regime of 5-sectors including Leather Sector 

He also said that why only Refunds 

be given to only those RPOs which 

are issued till 30-April. Why should 

other exporters whose Refunds are 

pending since 2-years suffer and 

RPOs not issued. It is the fault of the 

department not exporters. He 

appealed to the Finance Minister to 

review the decision. 

He appealed to the Finance Minister 

to reconsider their request to abolish 

Import Duty of 3% on Raw Hides 

& Skins because Leather Industry 

is in crisis and it is important to 

reduce their cost to compete the 

regional country. 

He also pointed out that PTA had 

submitted in the list of proposals that 

Finished Leather may also be 

considered value added product to 

qualify for 4% incentive on enhanced 

export under SRO 415(I)/2015 as 

already allowed for allied sectors 

which was not entertained in the 

Budget 2016-17. 

A MoU signs for 

Footwear/Leather cluster 

in Punjab 

A memorandum of understanding 

(MoU) was signed for forming a 

footwear/leather cluster in Punjab on 

the first day of the Pakistan Footwear 

Manufacturers Association’s 

(PFMA) three day awareness 

seminar and training at the Lahore 

International Expo Centre recently. 

The three-day event has been 

organised in collaboration with the 

United Nations Industrial 

Development Organisation (UNIDO) 

through Small and Medium Enterprise 

Development Authority (SMEDA) 

and in partnership with Punjab Board 

of Investment and Trade (PBIT), 

Italian Agency for Development 

Cooperation and the Italian Embassy 

Islamabad. 

The purpose of the seminar is 

promotion of investment in Leather, 

Footwear and Accessories sectors. 

P F M A 

President 

W a s i m 

Zakaria said 

the core idea 

behind this 

seminar was 

to focus on the 

creation of a 

footwear 

cluster in Pakistan offering a platform 

for establishment of new factories in 

the leather sector, adding more value 

to the leather export business and 

boosting economic output.” 

PBIT CEO Amena Cheema said, 

“Since Punjab was now completely 

ripe for investment, I would like to 

reiterate the point made by Chief 

Minister Punjab that ‘investors are our 

masters’. In that context, PBIT 

stands fully equipped to provide all 

possible facilitation and support to 

those wishing to invest in our 

province.” 

To formalise the commitment to build 

a footwear/leather cluster, a 

memorandum of understanding was 

signed among PBIT, InterConnect 

and Faisalabad Industrial Estate 

Development and Management 

Company (FIEDMC). 

Presentations on the manufacturing, 

marketing and technical aspects of 

footwear and leather business. 

During the second and third day of 

the seminar/workshop, Italian experts 

would introduce the formulation of a 

sustainable marketing strategy to 

facilitate Pakistani leather goods to 

penetrate into the global market, 

especially Europe. 



Automobile News 

Pak Suzuki's profits up 

0.16 percent 

Pak Suzuki Motor Co Ltd (PSMC) 

has announced 0.16 percent 

increase in its first quarter net profit 

with minor increase in its sales. 

In its financial results statement 

sent to the Pakistan Stock 

Exchange (PSX), PSMC reported 

a net profit of Rs947.64 million for 

the quarter ended March 31, 2016, 

up from Rs946.10 last year. 

The company posted earnings per 

share (EPS) of Rs11.51 as 

compared to Rs11.50 in the same 

period of the last year. 

Total sales of the company during 

the period were reported at 

Rs19.99 billion, up from Rs19.64 

billion in the last year. 

The cost of sales was posted at 

Rs17.78 billion from Rs17.46 billion 

in the same quarter of the last 

year. 

Gross profits of PSMC remained 

at Rs2.20 billion, up from the last 

year's Rs2.17 billion. 

Millat Tractors profit 

down 41 percent 

Millat Tractors Limited (MTL), 

the only tractor producing listed 

company of the country, has 

reported a 41 percent fall in its 

nine months net profit, as its sales 

decreased. In its consolidated 

condensed interim profit and loss 

Honda Atlas claims 

milestone of selling 

275,000 cars 

The Honda Atlas Cars Company 

claims to have achieved a milestone 

in selling 275,000 cars and to celebrate 

its success the company has launched 

a lucky draw for its staff and buyers. 

The draw, which took place at the 

Honda Atlas Cars Factory recently, 

started with an opening address by 

Marketing General Manager 

Nadeem Azam who briefed the media 

about the achievements and thanked 

car buyers for their trust in Honda 

brand. 

statement issued to the Pakistan 

Stock Exchange (PSX), the 

company reported a net profit of 

Rs1.06 billion for the nine months 

ended March 31, down from 

Rs1.82 billion earned last year. 

EPS came in at Rs23.99, lower than 

last year’s EPS of Rs41.09. The 

company said its revenue for the 

year fell to Rs11.97 billion, down 

28 percent as compared to Rs16.69 

In his address, President and Chief 

Executive Officer Toichil Shiyama 

said the company intended to continue 

the trend and create an image in the 

Pakistani market. 

The draw winners were selected by 

the company’s executive committee 

members. 

Those for seven return tickets to the 

United Arab Emirates were drawn by 

Human Resource and Administration 

Vice President Maqsoodur Rehmani; 

for five business class return tickets 

to Bangkok by Production Vice 

President Kenichi Matsuo and grand 

prizes of Honda City and Civic by 

Chief Executive Officer Shiyama. 

billion. Operating cost also fell 

to Rs9.77 billion as compared to 

Rs13.44 billion last year. Gross 

profit of the company has been 

recorded at Rs2.20 billion against 

Rs13.44 billion in the same 

period of FY15. During the 

quarter, MTL earned a net profit 

of Rs544.83 million as compared 

to Rs648.19 million in the same 

period of the last year. 



Fertilizer & Petrochemical Industries 

FFC records net 

earnings of Rs 2.73 

billion for first quarter 

Fauji Fertiliser Company (FFC) has 

announced results for the first 

quarter amid highly challenging 

business environments. In spite of 

adverse market conditions FFC 

recorded net earnings of Rs 2.73 

billion for the first quarter ended 

March 31, 2016. 

According to an announcement of 

the company, urea industry 

remained under severe stress 

during the period. This is mainly 

ascribed to poor farm economics 

and unprecedented rise in cost of 

production, while declining 

international urea prices and nonimplementation 

of 'Kissan 

Package' by the government 

caused market uncertainty. Thus, 

the urea market witnessed 

substantial decline to around 50 

percent in sales, while inventory 

accumulated to 1.2 million tonnes 

with combined share of FFC/FFBL 

at 35 percent of the total inventory. 

Urea production by the company, 

however, remained par excellence, 

with second highest urea output 

ever of 614 thousand tonnes, which 

speaks of the operational efficiency 

of the engineers and the 

management. It is a testimony to 

the visionary approach of the 

management and the Board, who 

decided to diversify investments in 

other fields in the past. The 

Company stated earning per share 

of Rs 2.14, while declaring the 

divided per share as Rs 1.85, 

company added. 

FFC vows to pass on benefits of feed-gas 

price rollback to farmers 

Fauji Fertilizer Company Limited, one 

of the largest fertilizer manufacturers 

in Pakistan, has vowed to pass on the 

benefits of roll back 

in fertilizer feed gas 

price by the 

government to the 

farmers in the 

shortest possible 

time with 

m a x i m u m 

efficiency. 

According to an 

announcement of 

the company to ensure that the 

benefits of this welcome gesture of 

government reach the farmer 

community, CE&MD FFC, Lt Gen 

Shafqaat Ahmed (retd) visited the 

FFC Field force in distant areas of 

North and Central zones constituting 

of Punjab, KP and Azad Kashmir. 

He stressed that FFC field force 

must rise to the challenge at this 

trying time of agro-economy in 

Pakistan. 

FFBL invests Rs 13.59 

million in Noon Pakistan 

Fauji Fertilizer Bin Qasim Limited 

(FFBL) said to have invested over 

Rs 13.59 million in Noon Pakistan 

Limited (NPL). The army-run 

fertilizer firm made the investment 

to acquire NPL's 456,422 

unsubscribed shares each at Rs 

29.77. FFBL already holds over 

55.25 million ordinary and 14.34 

million non-voting ordinary shares of 

the target company. 

“Farmer, Govt and fertilizer producers 

stand as partners to improve agro 

economics of Pakistan. FFC will 

continue to take 

pride in living to its 

history of serving 

the Nation,” Gen. 

Shafqaat stated 

while addressing 

the FFC Field force. 

He further 

emphasized that 

FFC field force 

must ensure that 

they push maximum benefits to the 

farmers not only in the form of cost 

benefit but also make maximum use 

of their Farm advisory & research 

services to facilitate the farmer 

community, so that farmer economics 

reap and feel the accumulated effects 

of positivity in Kharif Crops. The MD 

FFC also requested the FFC Dealer 

network to align themselves in this 

noble cause initiated by the 

government. 

On March 8, the FFBL shareholders 

had cleared an investment of up to 

Rs 2.55 billion to be made in NPL. 

Of the approved amount, the 

company has so far invested Rs 2.18 

billion in Noon Pakistan. The material 

information made Fauji Fertilizer the 

fourth most-traded scrip recently at 

Pakistan Stock Exchange. Over 

10.38 million listed shares of the issue 

changed hands, each rising by 4.43 

percent to Rs 53.97 from Rs 51.90. 

Arhum Ghous of JS Research said 

FFBL rallied on the back of the 

company's announcement to have 

invested in Noon Pakistan. 



Aviation & Hotel News 

Azam Saigol made PIA 

chairman 

The government has appointed a 

noted industrialist and a member 

of the board of directors of 

Pakistan International Airlines, 

Muhammad Azam Saigol, as 

chairman of the national flag 

carrier. 

The position had been lying 

vacant since the previous 

chairman, Nasser Jaffer, resigned 

amid the controversy resulting 

from the countrywide strike by the 

airlines’ employees over the 

government’s reported 

privatisation plans. 

The Oxford educated Mr Saigol 

is a well known industrialist of the 

country, and has a vast experience 

in handling big industrial concerns 

and corporations. 

He has remained on PIA’s board 

of directors since 2013. 

Mr Saigol is currently the chief 

executive of Kohinoor Industries 

and Kohinoor Power Company. 

He is also serving on the boards 

of Pak Elektron and Saritow 

Spinning Mills Ltd. 

Shaheen Air to expand 

operations to Oslo, 

Bangkok, Milan & 

Shanghai 

Shaheen Air International (SAI) is 

going to expand its wing to Oslo, 

Bangkok, Milan & Shanghai by the 

end of 2017. Talking to media Zohaib 

Hassan Brand Manager SAI said 

Shaheen Air, which was presently 

operating to 15 international and 

seven domestic destinations with a 

fleet of 25 aircraft, was still being 

recognised as domestic carrier in the 

country, despite being operational for 

last 25 years. 

In order to remove the said 

perception, the SAI was now 

focusing on branding to get its due 

recognition particularly in the country, 

Shaheen Air 

receives awards 

Shaheen Air International has 

received ‘Best Domestic Carrier’ & 

‘CEO of the Year’ Awards for the 

first time at the 11th Consumer 

Choice Award. The event was 

organized by the Consumer 

Association of Pakistan. 

he said. Moreover, he said SAI, which 

was planning to expand its wing to 

Oslo, Bangkok, Milan & Shanghai by 

the end of 2017, would add 10 more 

aircraft in its fleet by next year. "SAI 

is expanding its horizon in both 

domestic and international level with 

the aim to reinvest in Pakistan," 

Zohaib quoted as saying. "For the 

purpose, SAI is doing Corporate 

Social Responsibility (CSR) activities 

across the country. We have provided 

foods and other stuff during famine 

at Thar besides planning to facilitate 

under-privileged areas for education 

across the country". Replying to a 

question, he said SAI had witnessed 

200 percent growth during last five 

years and airline was striving to be 

the 'Pakistani's Best Carrier' in next 

five years. Furthermore, he said SAI 

was presently operating 48 flights daily 

and its annual passengers' traffic was 

roaming around 3.5 million. 

The award marked the recognition of 

those organizations that have made 

extraordinary contributions in their 

respective fields. 

Commenting on the occasion, SAI’s 

spokesperson said, “We are delighted 

to receive this award. As a corporate 

entity, we believe that it is our 

responsibility to provide best services 

to our consumers.” 



Oman Air introduces 

new deal this summer 

Turkish Air organises B2B contact programme 

Oman Air, the National Airline of 

Oman is now offering an amazing 

deal this summer - buy two tickets 

but pay for one. 

The booking has already commenced 

from June 02, and will last till June 

16. Travel is valid from June 02 to 

July 05, 2016. Once the tickets have 

been purchased, travel should be 

completed by July 05, 2016. This 

offer is valid on selected fares and 

destinations only and is extended 

from Business Class to Economy 

Class. 

Ken Marshall, Country Manager 

Oman Air Pakistan, said, “We believe 

in customer satisfaction above all. It 

is very important for us to keep our 

customers happy and provide them 

to travel to a dream destination to 

enjoy the holidays. Oman Air pursues 

an effective and engaging customer 

satisfaction strategy, and such offers 

are part of it.” 

He further said, “We aim at making 

travel easy and affordable for 

everyone hence this offer is extended 

to Business Class travel as well as 

Economy Class travel. 

Moreover we also have online 

booking services to facilitate our 

customer further. Customers can 

book their tickets online as per their 

preference.” 

The first ticket includes full fare 

amount coupled with airport taxes 

and government taxes. For the 

second ticket, only airport and 

government taxes are to be paid. 

Please note any change of 

reservation should be done on both 

tickets together. 

Turkish Airline has launched a 

programme to boost people-topeople 

contact between Pakistan 

and Turkey by organising a B2B 

workshop for 

travel agents of 

the two 

countries, a 

statement said 

recently. 

Representatives 

from 23 Turkish 

agencies and a 

large number of 

TAAP (Travel 

Agents Association of Pakistan) 

members attended the event. 

The event was organised in 

collaboration with TÜRSAB 

(Association of Turkish Travel 

Agencies) and TAAP (Travel 

Agents Association of 

Pakistan),who also signed a 

memorandum of understanding 

(MoU) at the closing ceremony to 

increase the trade potential between 

the two countries. 

PIA adds five new 

destinations 

Pakistan International Airlines (PIA) 

has entered into code-sharing 

agreement with the Etihad Airways 

of the United Arab Emirates. 

An official of the national flag 

carriers said recently that PIA adds 

five new destinations, four in 

Australia and one in Europe, as part 

of its code sharing arrangement with 

Etihad Airways. 

He said that these stations include 

Fatih Atacan Temel, general 

manager of the Turkish Airlines, 

said that around 80 percent of the 

passengers flying from Turkish 

Airline use 

Turkey as a 

transit and not 

a destination. 

Therefore, they 

are striving to 

escalate 

passengers' 

load for Turkey. 

Along with 

Istanbul, 

numerous other cities of Turkey can 

be an attraction for tourists. 

Sharing his views at the closing 

ceremony Consul General of Turkey 

Murat Onart said that Turkish 

consulate has issued 12,000 visas 

last year, which is 20 per cent higher 

than the preceding years and in near 

future Turkish government is 

considering of introducing 'Drop 

Box' visa facility for Pakistani 

tourists. 

Sydney, Perth, Melbourne, Brisbane 

and Zurich. 

Airlines sign such code sharing 

agreements for those destinations 

where they do not operate allowing 

passengers to travel on their tickets. 

An year ago, in June 2015, PIA had 

signed code sharing agreement with 

Etihad Airways for several 

destinations in Europe, North 

America, Eastern Africa and Middle 

East including Rome, Madrid, Athens, 

Amsterdam, Frankfurt, Washington, 

Chicago, Dallas, Los Angeles, San 

Francisco, Nairobi and Amman.

TC May-June 2016

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