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www.tradechronicle.com Vol. 63 Issue Nos. 05 & 06 <strong>May</strong>-<strong>June</strong> <strong>2016</strong> Rs. 200/-<br />
Trade Chronicle<br />
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Federal Budget <strong>2016</strong>-17<br />
<br />
<br />
CONTENTS<br />
Pakistan Emerging Markets Index benefits<br />
Hajj Monitoring Committee<br />
Major Revenue and Measures - Budget <strong>2016</strong>-17<br />
Highlights of Pakistan Economic Survey 2015-16<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
EDITORIAL<br />
COMMENTS<br />
ARTICLES & FEATURES<br />
Special Report on Fans Industry<br />
Pakistan fan industry needs incentives to boost export<br />
A Chronicle Report<br />
Profile of leading fans manufactures<br />
Special Report on POGEE-<strong>2016</strong><br />
Punjab Minister inaugurates POGEE-<strong>2016</strong> exhibition in Lahore<br />
A decade of excellence in the energy industry<br />
Federal minister for P&NR, Shahid Khaqan Asbbasi,<br />
visits POGEE-<strong>2016</strong><br />
POGEE exhibitors receive overwhelming response<br />
Special Report on Port & Shipping<br />
PNSC plans to add more oil tankers<br />
Earns after tax profit of Rs 1,364 million in 9MFY<strong>2016</strong><br />
REGULAR FEATURES<br />
Cement Industry<br />
People & Events<br />
Telecommunication News<br />
Banking & Insurance News<br />
Automobile News<br />
Fertilizer & Petrochemical Industries<br />
Aviation & Hotel News<br />
Trade Chronicle - March - April <strong>2016</strong> - Page # 03
TRADE CHRONICLE<br />
We begin with the name of Allah, the Magnificient<br />
Federal Budget <strong>2016</strong> - 17<br />
From<br />
Editor's<br />
Desk<br />
Minister for Finance, Senator Muhammed Ishaq Dar presented Federal Budget<br />
<strong>2016</strong>-17 (July- <strong>June</strong>) in the National Assembly on <strong>June</strong> 03, <strong>2016</strong>. After 3<br />
years of fiscal consolidation, PML-N led government in its 4th and 2nd last<br />
budget has shifted focus towards revival of declining agriculture sector, failing<br />
exports (Textile, Leather and various other Industrial sectors), and growth<br />
oriented policies. The budget has set ambitious target which includes raising<br />
GDP growth to 7.0pc by FY2018-19; containing inflation to single digit; raising<br />
investment to GDP ratio to 21pc; bringing down fiscal deficit to 3.5% of<br />
GDP; increasing tax to GDP ratio to 13.9% and pushing foreign exchange<br />
reserves to US$30bn. These targets can be achieved, provided government<br />
maintains consistency in its economic policies, overcome energy crises and<br />
bring visible improvement in law and order.<br />
From the vantage of Pakistan Stock Exchange (PSX), the developments in<br />
the Federal Budget were largely anticipated. A first glance at the budget<br />
suggests that the proposals floated in the budget favor the agriculture and<br />
export oriented sectors wherein experts expect Fertilizer and Textile sectors<br />
to remain the prime beneficiaries. With regards to the taxation measures, the<br />
budget either proposed i) continuation of previous regimes or ii) increase in<br />
differential of taxation between filers and non-filers.<br />
As usual budget gets mixed reaction. The gainers have welcomed the budget<br />
while losers termed it negative for the growth. The public who will ultimately<br />
feel the brunt of hike in end product prices are worried, that how they would<br />
meet growing kitchen expenses.<br />
ABDUL RAB SIDDIQI<br />
The textile industry, leather industry and others have welcomed the budget,<br />
while rice exporters, pharmaceutical industry, dairy industry, insurance industry,<br />
crop production association, cement industry, independent power producers,<br />
sea food exporters, LPG distributors, local chemical industry, Karachi Stock<br />
Exchange and others recorded their apprehensions through various appeals<br />
in local media.<br />
The textile sector has emerged as a major beneficiary of the federal budget<br />
with grant of zero rated status and 50bps reduction in Export Refinance Rate,<br />
duty free import of various textile machinery & raw material and refunds by<br />
August 31, <strong>2016</strong> (popular textile exporters demand). Hopefully, the grant of<br />
zero rated and start of refund will improve the sector’s liquidity and enhance<br />
exports.<br />
Similarly, agriculture and fertilizer industry are too addressee of federal budget.<br />
The government has proposed Rs36bn subsidy to bring down price of Urea<br />
to Rs1,400/bag from Rs1,700/bag. Rs10bn subsidy to reduce price of DAP<br />
from Rs2,800/bag to Rs2,500/bag. Rs27bn subsidy to reduce tube-wells<br />
electricity prices down to Rs5.35/kwh from Rs8.85/kwh. Abolishment of 7%<br />
Sales Tax on sale of Pesticides. Reduction in interest rates for agricultural<br />
Trade Chronicle - <strong>May</strong> - <strong>June</strong> <strong>2016</strong> - Page # 04
TRADE CHRONICLE<br />
loans as well. The government has<br />
also decided to reduce general sales<br />
tax on imported and locallymanufactured<br />
tractors from 10<br />
percent to 5 percent while customs<br />
duty on agricultural machinery,<br />
including harvesters, planters and laser<br />
land levellers, has been abolished.<br />
These measures, experts believe will<br />
arrest decline trend in agriculture<br />
production and as well clear high urea<br />
inventory in country. The farmers have<br />
rightly pointed out that government<br />
should also fix the minimum support<br />
price for all the major crops. The urea<br />
industry also announced reduction in<br />
urea prices, which is commendable<br />
decision as it would lead to increase in<br />
fertilizer off-take. We hope<br />
government would also accede to<br />
demand of urea manufactures to allow<br />
export of surplus urea.<br />
On reacting the budget, the various<br />
overseas and local businessmen<br />
representing trade bodies have<br />
brought in notice to government some<br />
healthy suggestions, which we think<br />
if incorporated in budget or through<br />
other amendments, would take the<br />
country to more prosperity. They<br />
consider the budget targets, especially<br />
the GDP growth of 5.7 percent for<br />
next year, are challenging and would<br />
depend considerably on the robust<br />
growth in the agriculture and export<br />
sectors. They urged upon for taking<br />
bold measures to attract large foreign<br />
direct investment in the<br />
manufacturing and job creating<br />
ventures by offering attractive<br />
additional incentives. They also<br />
expressed concern over the lack of<br />
initiatives to broaden the tax net and<br />
to simplify tax administration for<br />
existing taxpayers.<br />
They requested immediate issuance<br />
of notification for zero-rating of five<br />
export sectors so that exporters could<br />
make shipments as per<br />
announcements in the federal budget.<br />
The extension in the super tax net will<br />
further burden the industrial and<br />
business community, they pointed out.<br />
However, they appreciated<br />
government decision to extend tax<br />
incentives, under Section 65d on new<br />
plants till <strong>June</strong>, 2019 and the<br />
continued reduction of corporate tax<br />
rate by 1 percent in line with plans to<br />
bring rates down to 30 percent by<br />
FY18.<br />
EDITORIAL<br />
COMMENTS<br />
Pakistan Emerging<br />
Markets Index benefits<br />
MSCI Inc, a leading provider of global<br />
equity indexes on 14th <strong>June</strong>, <strong>2016</strong>,<br />
announced that the MSCI Pakistan<br />
Index will be reclassified to Emerging<br />
Markets status, coinciding with the<br />
<strong>May</strong>, 2017 Semi-Annual Index<br />
Review while it delays including<br />
China, shares in the MSCI Emerging<br />
Markets Index. Pakistan was part of<br />
the MSCI EM Index between 1994<br />
and 2008. However, the temporary<br />
closure of the Pakistan Stock<br />
Exchange in 2008 led MSCI to<br />
remove it from the index and classify<br />
it as a “standalone country index”.<br />
MSCI made Pakistan a part of the<br />
Frontier Markets Index in <strong>May</strong>, 2009<br />
and it has remained as such since<br />
then.<br />
Pakistan stock exchange termed it a<br />
big achievement and it was possible<br />
due to improvement in the country’s<br />
economy on account of sufficient<br />
foreign exchange reserve, currency<br />
stability, reduction in inflation, lower<br />
interest rate and over and above the<br />
political stability. However, the credit<br />
also goes to Mr. Muneer Kamal,<br />
Chairman, Pakistan Stock Exchange<br />
(PSX) Mr. Nadeem Naqvi, Managing<br />
Director, PSX and Deputy MD<br />
Haroon Askari for their untiring<br />
efforts in holding road show abroad<br />
to convince funds manager for<br />
change of perception about country’s<br />
economy.<br />
The federal government and investors<br />
seem to be jumping with joy at the<br />
decision. With this announcement, the<br />
Pakistan stock market extended a<br />
huge rally in the week ended on 17th<br />
<strong>June</strong>. The KSE-100 index amassed<br />
massive gains of 1,836 points (4.97<br />
per cent)—the highest weekly gains<br />
witnessed in three years, since July<br />
2013. The index closed the week at<br />
its all-time high of 38,777 points.<br />
According to market analyst, positive<br />
momentum is likely to continue amid<br />
MSCI up gradation of Pakistan to<br />
MSCI Emerging market index, the 9<br />
scrip’s that will form part of MSCI<br />
Emerging Market index will continue<br />
to remain in the limelight. Most of the<br />
investors are aware about nine or ten<br />
scripts but retail investor lacks it, and<br />
for level playing field, the government<br />
or the concerned authority should<br />
advertise it publicly.<br />
Meanwhile, Pakistan’s Prime<br />
Minister Mian Muhammad Nawaz<br />
Sharif, through an advertisement<br />
congratulated nation on getting<br />
status of emerging market status<br />
after eight years of review. The<br />
government claims the benefit of<br />
inclusion emerging market to –<br />
growth in stock market, foreign<br />
direct investment, investment in oil<br />
& gas, fertilizers and banking stocks<br />
etc. Similarly, Finance Minister<br />
Ishaq Dar has rushed to classify<br />
Pakistan’s re-entry into the index as<br />
‘historic’. He suggests the change<br />
could bring in a new portfolio of<br />
around $475 million into the stock<br />
market.<br />
Trade Chronicle - <strong>May</strong> - <strong>June</strong> <strong>2016</strong> - Page # 05
TRADE CHRONICLE<br />
The investor community has also<br />
responded with optimism. However,<br />
a leading local paper in its editorial<br />
rightly raised eyebrows that we<br />
must look at what becoming an<br />
emerging market status actually<br />
means. “The declaration is limited<br />
to the regulation and stability of a<br />
country’s stock market. It means<br />
nothing about the larger macroeconomic<br />
performance of a<br />
country’s economy”.<br />
“The new Emerging Markets status<br />
is not a goal that has been achieved,<br />
but an opportunity not to repeat the<br />
mistakes of the past. This can be<br />
witnessed by the fact that China is<br />
not considered an emerging market<br />
economy despite almost a decade<br />
of growth in excess of seven<br />
percent a year. Why has it not been<br />
accorded emerging market status?<br />
The problem is not its economy, but<br />
how it regulates its stock market.<br />
China still imposes stricter laws for<br />
the inflow and outflow of foreign<br />
capital and limits how much its stock<br />
markets can fall in a single day”.<br />
Hajj Monitoring<br />
Committee<br />
Ministry of Religious Affairs and<br />
Interfaith Harmony has constituted<br />
a Hajj Advisory Committee with the<br />
mandate to manage Hajj operation<br />
<strong>2016</strong> in Pakistan and Saudi Arabia<br />
and to suggest improving welfare<br />
services to Pilgrims. The advisory<br />
committee would also oversee the<br />
workings of building hiring committee<br />
in Saudi Arabia. This is good decision<br />
ever taken by the government for<br />
welfare of Hajji after alleged Hajj<br />
scandal in the country and mishap in<br />
Mina last year. In some cases the<br />
condition of buildings are not<br />
satisfactory and they are far away<br />
from Haram in Macca and Masjide-<br />
Nabvi in Madina respectively.<br />
The govt. should also enlarge its scope<br />
of welfare for the Pilgrims going<br />
through private sector. The private<br />
Hajj Operators charge very<br />
expensive packages but reportedly<br />
provide less facility. The Haji in view<br />
of the religious faith does not<br />
complain or criticize Hajj Operators<br />
during the Hajj days and remain tight<br />
their lip about lack of facility. It should<br />
also be taken care of.<br />
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Trade Chronicle - <strong>May</strong> - <strong>June</strong> <strong>2016</strong> - Page # 06
TRADE CHRONICLE<br />
Major Revenue and Relief Measures - Budget <strong>2016</strong>-17<br />
Federal Minister for Finance Senator<br />
Mohammad Ishaq Dar presented<br />
Federal Budget <strong>2016</strong>-17 in Parliament<br />
on 3rd <strong>June</strong>. Given below are brief of<br />
major revenue and relief measures as<br />
proposed in the budget.<br />
Tariff slabs reduced from existing 5<br />
to 4 by merging 2% slab and 5% slab<br />
in new 3% slab. Corporate tax rate<br />
has been reduced to 31% for Tax Year<br />
2017. In sales tax turnover threshold<br />
for cottage industry has been<br />
increased to 10 million. Introduction<br />
of optional regime for Tier-1 Retailers<br />
according to which sales tax at fixed<br />
rate of 2% of their total turnover<br />
without any input tax adjustments is<br />
proposed.<br />
Exemption of sales tax on pesticides<br />
and 5% sales tax on fertilizers.<br />
Exemption to machinery and<br />
equipment for the development of<br />
grain handling and storage facilities to<br />
include silos as well. Relief in customs<br />
duty for Cool Chain Machinery.<br />
Income Tax, Customs and Sales Tax<br />
exemptions under Gwadar Port<br />
Concession Agreement for operation<br />
and development of Gwadar Port and<br />
Gwadar Free Zone.<br />
Zero-rating of five export oriented<br />
sectors. Specified items for these<br />
sectors and the purchase of energy i.e.<br />
electricity, gas, furnace oil and coal by<br />
the five export-oriented, have been<br />
subjected to zero-rate of sales tax.<br />
Various tax credits including tax credits<br />
under section 65B, 65D and 65E and<br />
enhancement of tax credit for<br />
employment generation are proposed<br />
to be increased. Period for these<br />
credits are also proposed to be<br />
extended. Deductable allowance for<br />
Federal Minister for Finance Senator Mohammad Ishaq Dar addressing post<br />
budget press conference in Islamabad on <strong>June</strong> 4, <strong>2016</strong>.<br />
education and tax credit for health<br />
insurance is also proposed to be<br />
introduced.<br />
Concessions of CD for Dairy,<br />
Livestock & Poultry Sectors from 5%<br />
to 2%.<br />
Concessions of CD for Fish Farming,<br />
fish feed pellet (floating type)<br />
machines from 5% to 2%, fish / shrimp<br />
feed 10% & 20% to 0%. Exemption<br />
of sales tax on import of Laptops and<br />
PCs. Exclusion of Second hand and<br />
Worn Clothing from further tax levy.<br />
Revenue Measures<br />
Super tax was levied for the tax year<br />
2015 to meet revenue needs for<br />
certain unforeseen expenditure by the<br />
government. Since the circumstances<br />
still persist, it is being extended for tax<br />
year <strong>2016</strong>.<br />
A final tax is being imposed on builders<br />
and land developers on the basis of<br />
per unit area.<br />
It is proposed to extend the holding<br />
period for taxation of capital gain on<br />
sale of immovable property from two<br />
years to five years to be charged at<br />
uniform rate of tax of 10%.<br />
For persons registered with provincial<br />
sales tax authorities , it is proposed that<br />
an advance tax at 3% of turnover of<br />
non-filer service providers be collected<br />
by provincial ST authorities along with<br />
their sales tax returns.<br />
It is proposed to withdraw zero-rating<br />
on milk and fat filled milk. Zero-rating<br />
on preparations for infant use proposed<br />
to be retained.<br />
In order to maintain neutrality it is<br />
proposed that minimum tax may be<br />
charged on companies declaring gross<br />
loss.<br />
It is proposed that minimum tax @ 1%<br />
of turnover may be made payable by<br />
Individuals and AOPs having turnover<br />
exceeding ten million rupees. It is<br />
proposed to withdraw zero-rating on<br />
stationery items and their inputs.<br />
Continuing with the policy of<br />
differential taxation for filer and nonfiler,<br />
various sections are included with<br />
higher withholding tax rates for those<br />
not filing income tax returns.<br />
Enhancement of rates of Federal<br />
Excise Duty on cigarettes. The rates<br />
of FED on cigarettes are proposed to<br />
be increased on a bi-annual basis.<br />
Enhancement of Federal Excise Duty<br />
on Aerated Waters to 11.5% of retail<br />
price.<br />
It is proposed to replace the current<br />
Trade Chronicle - <strong>May</strong> - <strong>June</strong> <strong>2016</strong> - Page # 07
TRADE CHRONICLE<br />
regime with fixed rate basis and to<br />
charge FED on cement on fixed rate<br />
basis @ Rs. 1/ kg. It is proposed to<br />
replace this Federal Excise Duty on<br />
sugar with levy of sales tax at reduced<br />
sales tax rate of 8%. Inclusion of<br />
mineral/bottled water in the Third<br />
Schedule to the Sales Tax Act, 1990,<br />
so that the tax is charged on the basis<br />
of retail price.<br />
Enhancement of fixed rate basis on<br />
steel sector, ship breakers and steel<br />
melters. Increase in the rate of<br />
sales tax on import of Mobile<br />
Phones.<br />
Comparative Budgetary Position 2015-16 and <strong>2016</strong>-17<br />
Classification Budget 2015-16 Revised 2015-16 Budget <strong>2016</strong>-17<br />
RESOURCES ( A + B + C ) 4,168,338 4,276,705 4,441,965<br />
A Internal Resources 3,366,827 3,406,416 3,572,354<br />
- Net Revenue Receipts 2,463,351 2,480,671 2,779,695<br />
- Net Capital Receipts 606,303 588,939 453,638<br />
- Estimated Provincial Surplus 297,173 336,806 339,022<br />
B External Resources 751,511 859,689 819,610<br />
C Privatization Proceeds 50,000 13,600 50,000<br />
Expenditure (A+B) 4,451,277 4,478,535 4,894,879<br />
A Current Expenditure on Revenue Acct. 3,482,239 3,599,858 3,843,986<br />
- Current Exp. on Revenue Account 3,482,239 3,599,858 3,843,986<br />
B Total Development Expenditure 969,038 878,677 1,050,893<br />
- Federal PSDP 700,000 661,297 800,000<br />
- Dev. Expenditure outside PDSP 164,400 127,559 156,584<br />
- Dev. Loans & Grants to Provinces 104,639 89,820 94,309<br />
Bank Borrowing 282,940 198,832 452,915<br />
Trade Chronicle - <strong>May</strong> - <strong>June</strong> <strong>2016</strong> - Page # 08
TRADE CHRONICLE<br />
Highlights of Pakistan Economic Survey 2015-16<br />
Growth and Investment<br />
The outgoing year witnessed slow<br />
global recovery as the world economy<br />
started picking up at slow pace and<br />
the global outlook also indicates some<br />
signs of weak demand.<br />
In South Asia economic performance<br />
of Pakistan is improving quantitatively<br />
and qualitatively as growth is inclusive<br />
and sustainable and is the highest<br />
achievement since 2008-09.<br />
Major achievements of the outgoing<br />
fiscal year includes: picking up<br />
economic growth, price stability,<br />
improvement in tax collection,<br />
reduction in fiscal deficit, worker<br />
remittances touch new height, and<br />
foreign exchange reserves remained<br />
high.<br />
The GDP growth accelerates to 4.71<br />
percent in 2015-16 against the growth<br />
of 4.04 percent in the last year. The<br />
growth momentum is broad based, as<br />
commodity producing and services<br />
sectors have supported economic<br />
growth.<br />
The agriculture sector accounts for<br />
19.82 percent of GDP and 42.3<br />
percent of employment with strong<br />
backward and forward linkages. It<br />
has four sub-sectors including: crops,<br />
livestock, fisheries and forestry.<br />
Agriculture sector recorded a<br />
negative growth of -0.19 percent<br />
against the growth of 2.53 percent last<br />
year. The decline in growth was due<br />
to drop in the production of cotton,<br />
rice, maize and other minor crops due<br />
to extreme weather.<br />
Important crops account for 23.55<br />
percent of agricultural value addition.<br />
This sub-sector has recorded a<br />
negative growth of -7.18 percent<br />
compared to a growth of -0.52 percent<br />
last year. The important crops<br />
includes all major crops like wheat,<br />
Federal Minister for Finance<br />
Senator Mohammad Ishaq Dar<br />
maize, rice, sugarcane and cotton<br />
which registered growth at 1.58<br />
percent, -0.35 percent, -2.74 percent,<br />
4.22 percent and -27.83 percent<br />
respectively.<br />
Other crops have share of 11.36<br />
percent to value addition in overall<br />
agriculture sector. This subsector has<br />
witnessed growth of -0.31 percent<br />
against the growth of 3.09 percent last<br />
year.<br />
Cotton Ginning has witnessed growth<br />
of -21.26 percent against the growth<br />
of 7.24 percent in the previous year.<br />
Livestock contributes 58.55 percent<br />
of agriculture value addition.<br />
Livestock consist of cattle, buffalos,<br />
sheep, goat, camel, horses, asses,<br />
mules and poultry and their products.<br />
It has registered a growth of 3.63<br />
percent against 3.99 percent last year.<br />
Growth of the forestry sub-sector is<br />
witnessed at 8.84 percent as<br />
compared to the growth of -10.43<br />
percent last year.<br />
Fisheries sub-sector has 2.17 percent<br />
contribution in agriculture and<br />
registered a growth of 3.25 percent<br />
compared to the growth of 5.75<br />
percent last year.<br />
The industrial sector contributes<br />
21.02 percent in GDP; it is also a<br />
major source of tax revenues for<br />
the government and also<br />
contributes significantly in the<br />
provision of job opportunities to the<br />
labour force.<br />
Government planned and<br />
implemented comprehensive policy<br />
measures on fast track to revive<br />
the economy. As a result industrial<br />
sector started revival and recorded<br />
remarkable growth at 6.80 percent<br />
as compared to 4.81 percent last<br />
year.<br />
The manufacturing is the most<br />
important sub-sector of the industrial<br />
sector containing 64.71 percent share<br />
in the overall industrial sector. Growth<br />
of manufacturing is registered at 5.00<br />
percent compared to 3.90 percent<br />
last year.<br />
Manufacturing has three components;<br />
Large-Scale Manufacturing (LSM)<br />
with the share of 80.11 2 percent,<br />
Small Scale Manufacturing with the<br />
share of 13.12 percent and<br />
Slaughtering having share of 6.77<br />
percent.<br />
Trade Chronicle - <strong>May</strong> - <strong>June</strong> <strong>2016</strong> - Page # 09
TRADE CHRONICLE<br />
Small scale manufacturing witnessed<br />
growth at 8.21 percent against the<br />
growth of 8.22 percent last year and<br />
slaughtering growth is recorded at<br />
3.63 percent as compared to 3.35<br />
percent last year.<br />
LSM has registered an improved<br />
growth of 4.61 percent as compared<br />
to 3.29 percent last year.<br />
The share of construction in industrial<br />
sector is 12.29 percent and is one of<br />
the potential components of industries.<br />
The construction sector has registered<br />
a growth of 13.10 percent against the<br />
growth of 6.24 percent of last year.<br />
Mining and quarrying sub-sector<br />
contains 14.19 percent share of the<br />
industrial sector. This subsector<br />
witnessed a growth of 6.80 percent<br />
as compared to 4.81 percent last year.<br />
Electricity generation & distribution<br />
and Gas Distribution is the most<br />
essential component of industrial<br />
sector. This sub-sector has registered<br />
growth at 12.18 percent as compared<br />
to 11.98 percent last year.<br />
The share of the services sector in<br />
GDP has reached to 59.16 percent in<br />
FY <strong>2016</strong>. Services sector contains six<br />
sub-sectors including: Transport,<br />
Storage and Communication;<br />
Wholesale and Retail Trade; Finance<br />
and Insurance; Housing Services<br />
(Ownership of Dwellings); General<br />
Government Services (Public<br />
Administration and Defense); and<br />
Other Private Services (Social<br />
Services).<br />
The Services sector has witnessed a<br />
growth of 5.71 percent as compared<br />
to 4.31 percent last year. The growth<br />
performance in services sector is<br />
broad based, all components<br />
contributed positively, Finance and<br />
Insurance at 7.84 percent, General<br />
Government Services at 11.13<br />
percent, Housing Services at 3.99<br />
percent, Other Private Services at<br />
6.64 percent, Transport, Storage and<br />
Communication at 4.06 percent and<br />
Wholesale and Retail Trade at 4.57<br />
percent.<br />
Three main drivers of economic<br />
growth are consumption and<br />
investment. Pakistani society like<br />
other developing countries is a<br />
consumption oriented society, having<br />
high marginal propensity to<br />
consume.<br />
The private consumption expenditure<br />
in nominal terms reached to 80.1<br />
percent of GDP, whereas public<br />
consumption expenditures are 11.8<br />
percent of GDP.<br />
Per capita income in dollar terms<br />
recorded a growth of 2.9 percent in<br />
FY <strong>2016</strong> as compared to 9.2 percent<br />
last year. The per capita income in<br />
dollar terms has reached to 1560.7.<br />
Total investment recorded the growth<br />
of 5.78 percent in FY <strong>2016</strong>.<br />
Investment to GDP ratio has reached<br />
to 15.21 percent in FY <strong>2016</strong>. Fix<br />
investment is registered at 13.61<br />
percent of GDP. Private investment<br />
witnessed at 9.79 percent of GDP.<br />
Public investment recorded an<br />
impressive growth rate at 10.63<br />
percent and as percentage of GDP it<br />
has increased from 3.72 percent to<br />
3.82 percent in FY <strong>2016</strong>.<br />
Total investment which was recorded<br />
at Rs.4256 billion in FY 2015 increased<br />
to Rs.4502 billion for FY <strong>2016</strong>.<br />
During July-6th <strong>May</strong> FY <strong>2016</strong> credit<br />
to private sector flows increased to<br />
Rs.311.7 billion against the expansion<br />
of Rs.171.2 billion in comparable<br />
period last year.<br />
National savings are 14.6 percent of<br />
GDP in FY <strong>2016</strong> compared to 14.5<br />
percent in FY 2015. Domestic savings<br />
is witnessed at 8.3 percent of GDP<br />
in FY <strong>2016</strong> as compared to 8.4<br />
percent of GDP last year.<br />
Present government has launched<br />
comprehensive plan for investment<br />
friendly environment and to attract<br />
foreign investors in the country.<br />
Expansionary Monetary Policy<br />
alongwith infrastructure 3<br />
development drive of the government<br />
are positive signals for restoring the<br />
investor’s confidence.<br />
Pakistan’s policy trends have been<br />
consistent, with liberalization, deregulation,<br />
privatization, and<br />
facilitation being its foremost<br />
cornerstones. BOI under the Prime<br />
Minister’s office making efforts to<br />
provide friendly environment to<br />
investors.<br />
During July-April FY <strong>2016</strong> net foreign<br />
direct investment crossed US$ 1<br />
billion with growth of 5.4 percent.<br />
The major inflow of FDI is from US,<br />
Hong Kong, UK, Switzerland and<br />
UAE. Oil & gas exploration, financial<br />
business, power, communications and<br />
Chemicals remained major sectors<br />
for foreign investors.<br />
The government is also aiming to<br />
explore new markets to export its<br />
manpower as well as incentives for<br />
the remittances to further enhance its<br />
growth. During July-April 2014-15<br />
remittances stood at $16,034.4 million<br />
compared to $15,235 million during<br />
the corresponding period last year.<br />
Pakistan remained focused and<br />
committed to implement CPEC<br />
which is a mega project of US$46<br />
billion, it will provide major support<br />
for development of infrastructure in<br />
coming years.<br />
Trade Chronicle - <strong>May</strong> - <strong>June</strong> <strong>2016</strong> - Page # 10
TRADE CHRONICLE<br />
Pakistan fan industry has shown<br />
steady progress since the inception<br />
of Pakistan in 1947. It is mainly<br />
clustered in four major cities namely,<br />
Gujrat, Gujranwala, Lahore and<br />
Karachi. Few units are<br />
manufacturing complete electric fan<br />
on modernize scale whereas other on<br />
cottage basis. It caters the country's<br />
requirements for all kinds of electic<br />
fan and also earns valuable export<br />
revenue from Africa, Middle East<br />
and Asia despite tough competition<br />
with exporting countries such as<br />
China, India, Malaysia, Thailand,<br />
Taiwan and Vietnam.<br />
Electric fan industry has sought<br />
customs duty exemption on import of<br />
electrical silicon steel sheet (cold<br />
rolled) to take export beyond $50<br />
million. The use of recycled/scraped<br />
steel sheet is bringing adverse affect<br />
on quality and durability of the<br />
products.<br />
Similarly, fan exporters need to<br />
acquire UL certification of safety<br />
standards, if they want to penetrate<br />
in the North American markets.<br />
However, the certification process<br />
costs nearly a million Rupees per<br />
product, and therefore, only a couple<br />
of large firms in Pakistan are reported<br />
to have this certification.<br />
The Pakistan fan industry produces<br />
a variety of fans which include,<br />
Ceiling Fan, Bracket Fan, Exhaust<br />
Fan, Pedestal Fan, Tilting Box Louvre<br />
Fan, Circomatic Fan, Louvre<br />
Pedestal / Table Fan, Louvre Bracket<br />
Fan, Ventilation Fan etc.<br />
There are now over five hundred fan<br />
factories in Gujarat, Gujranwala,<br />
A review of Fan Industry<br />
Pakistan fan industry needs incentives to boost export<br />
A Chronicle Report<br />
Lahore and a few other cities. Most<br />
of the Fan Industries are in Gujarat<br />
and fall in light engineering category.<br />
Exports of Fan<br />
Pakistan mainly exports consumer<br />
fans which fall under HS Code<br />
8414.5900: The export of industrial<br />
fan is negligible.<br />
Pakistan Fan Manufacturers and<br />
Exporters have exported 144,000<br />
Nos. of electric fans during the month<br />
April, <strong>2016</strong> and earned export<br />
revenue of US $4.15 million,<br />
compared to 118,000 electric fans at<br />
to US $ 3.39 million in March, <strong>2016</strong>.<br />
This translates a growth of 22.03<br />
percent and 22.52 percent in terms<br />
of numbers and value in dollar<br />
respectively on MoM basis.<br />
According to Federal Bureau of<br />
Statistics, if compared with April, 2015<br />
data of 108,000 Nos. of fans at US<br />
$2.30 million, it shows an increase of<br />
33.33 percent and 80.38 percent in<br />
terms of numbers and value in dollar<br />
Trade Chronicle - <strong>May</strong> - <strong>June</strong> <strong>2016</strong> - Page # 11<br />
respectively over April, 2015 on YoY<br />
basis.<br />
However, on a negative note, Pakistan<br />
fan manufacturers and exporters<br />
earned US $21.735 million by<br />
exporting 943,000 electric fans during<br />
July – April, <strong>2016</strong> compared to<br />
1196,000 electric fans at US $ 24.37<br />
million for in corresponding period last<br />
year. Thus, it depicts a fall of 21.15<br />
percent and 10.84 percent<br />
respectively.<br />
However, on a very positive note,<br />
average export price of electric fan<br />
recorded a handsome growth despite<br />
fall of electric fan export in 10 months<br />
of 2015 – 16. Average export price<br />
during the period July – April 2015 –<br />
16 stood at US $23.04 per unit<br />
compared to US $20.38 in<br />
corresponding period last year.<br />
The problem of quality control is<br />
most challenging in case of electric<br />
fans: despite a huge vendor base<br />
around the fan production clusters<br />
in Gujrat and Gujranwala, nearly half<br />
of the fan manufacturers are<br />
dissatisfied with quality and<br />
availability of inputs.<br />
A major issue is the nonstandardization<br />
of these parts, which<br />
does not allow them to export a<br />
consistent quality product. Therefore,<br />
to produce high quality fans, large<br />
firms rely on imported raw materials<br />
like electrical steel sheets, copper<br />
enameled wire, ball bearing, PVC, etc.<br />
Since price of these imported<br />
components is determined by global<br />
demand and supply, firms that use<br />
these components have to put up with<br />
price fluctuations.
TRADE CHRONICLE<br />
Production of Fans<br />
Pakistan produced 1.932 million<br />
numbers of electric fans during the<br />
period July – <strong>June</strong>, 2014 – 15<br />
compared to 1.931 million numbers<br />
of electric fans in corresponding<br />
financial year 2013 – 14 (July – <strong>June</strong>).<br />
This translates minor growth of 0.03<br />
percent on YoY basis.<br />
Similarly, Pakistan produced 1.11<br />
million electric fans during the first<br />
nine months of current financial year,<br />
July – Mar., <strong>2016</strong> compared to 1.326<br />
million numbers of electric fans, in<br />
corresponding period last year. This<br />
translates a fall of 16.30 percenton<br />
YoY basis.<br />
In March, <strong>2016</strong> alone, country<br />
produced 100,331 electric fans against<br />
196,776 in March, 2015, which too<br />
shows a fall of 49.01 percent on<br />
MoM basis.<br />
According to State Bank of Pakistan<br />
report, there are about 700 specialized<br />
vendors in fan clusters in Gujrat and<br />
Gujranwala to produce different<br />
components including castings, fan<br />
guards, stands, rods, enameled<br />
copper wire, fan bodies, bush gears,<br />
shafts, etc. but level of vertical<br />
integration is quite low, as production<br />
processes are technically divisible.<br />
Therefore, every vendor produces<br />
only one or two of the components<br />
required by fan assemblers.<br />
Federal budget <strong>2016</strong>-17 and<br />
affect on Fan industry.<br />
Gujrat Chamber of Commerce and<br />
Industry President Mian Muhammad<br />
Ijaz told media that the pre-budget<br />
recommendations for the progress of<br />
fan industry had been ignored in the<br />
federal budget <strong>2016</strong>-17.<br />
Despite repeated appeals by<br />
manufacturers of electric fans to<br />
abolish the 27.5 per cent regulatory<br />
and customs duty on the import of<br />
electrical steel sheet, the federal<br />
government has increased the levy<br />
further by 1pc, putting the figure now<br />
at 28.5pc.<br />
He said electrical steel sheet was one<br />
of the major raw materials<br />
necessarily required for producing<br />
energy-efficient fans. “The<br />
regulatory duty, 17pc sales tax, 5pc<br />
income tax, 2pc surcharge and other<br />
levies have put the over-all cost of<br />
the import around 55pc.”<br />
He said the federal government had<br />
failed to give any incentive to the<br />
export-oriented fans industry.<br />
G<strong>TC</strong>CI former president Haji<br />
Muhammad Ilyas, a pioneer in the<br />
export of electric fans, said since the<br />
imposition of heavy duty on the import<br />
of electrical steel sheet, only three to<br />
four manufacturing units were directly<br />
importing the raw material as the<br />
government through an order had<br />
relaxed the duty only to those who<br />
could directly import it.<br />
But rest of the manufacturers who<br />
also used to export fans had to rely<br />
on the commercial importer that<br />
further enhanced the market rate of<br />
the sheet whereas the small-scale<br />
manufacturers were compelled to use<br />
locally-made sheet after recycling the<br />
scrap which is considered a<br />
substandard material because of more<br />
energy consumption, he said.<br />
Fan industry set up in Pakistan:<br />
According to a study of Trade<br />
Development Authority (TDAP),<br />
Gujrat, and Gujranwala, are two key<br />
players in the production of fans<br />
which is almost 98%. Some of the<br />
production is also done in Lahore and<br />
Karachi. This industry primarily<br />
belongs to small and medium<br />
enterprisers (SMEs). This industry<br />
employs up to 30,000 workers.<br />
However, the down side is that the<br />
production is mostly seasonal and<br />
confined to 1st six months of the year.<br />
Fan industry is producing around<br />
90,000 indirect employment<br />
opportunities. Thus its contribution to<br />
total manufacturing employment is up<br />
to 1.54%.<br />
Pakistan’s exports are mainly<br />
concentrated in low-income markets,<br />
such as Africa, Bangladesh and some<br />
Middle East countries. The average<br />
export price of Fans made in Gujrat<br />
and Gujranwala is around $23-25,<br />
which is much lower than some of<br />
the more sophisticated fans which sell<br />
for around US$400-500. The retail<br />
price of Pakistani fans in its export<br />
markets on the other hand varies<br />
between US$35-40.<br />
The industry also requires testing and<br />
certifications. Certifications are<br />
normally required for export markets,<br />
whereas, general performance and<br />
safety testing are conducted<br />
regardless.<br />
Production Capacity:<br />
On average, 8 to 10 million fans<br />
are produced per annum with an<br />
estimated value of Rs. 20 billion.<br />
Category-wise, production of<br />
around 63% goes to ceiling fans,<br />
30% to Pedestal fans, and<br />
remaining 7% to bracket fans.<br />
About 7-8 companies are large<br />
scale manufacturing units which<br />
have composite integrated system<br />
i.e. from motor winding to high<br />
pressure dies casting. These units<br />
have induced higher level of<br />
investment on adoption of modern<br />
technology and automated<br />
process.<br />
Trade Chronicle - <strong>May</strong> - <strong>June</strong> <strong>2016</strong> - Page # 12
TRADE CHRONICLE<br />
Given below are profile of leading fan manufacturers and exporters<br />
which are taken from their website<br />
Mefco Industries (Mefco<br />
Fan)<br />
Mefco Industry (Mefco Fans) was<br />
established by Mr. Gul Nawaz in<br />
1987. It started manufacturing fans<br />
at small scale but with the passage<br />
of time at “Mefco Fans” the<br />
production reached at the level where<br />
they are not only supplying all kinds<br />
of Electrical Fans of highest quality<br />
at affordable prices all over Pakistan<br />
but also in International Markets i.e,<br />
(Dubai, Saudi Arabia, Sudan & South<br />
Africa) according to the Market<br />
demand.<br />
Noor Fan<br />
Noor Engineering Company was<br />
formed in 1970 by the Chief<br />
Executive Muhammad Shafique as a<br />
small manufacturing unit of electric<br />
fans. The company under his<br />
dynamic leadership, grew rapidly and<br />
Noor Fans became major recognized<br />
brand for fans in the Pakistani<br />
market.<br />
Golden Star Fans<br />
Golden Star Fans is the shinning<br />
name in the fan industry. Based in<br />
legendary city of Gujrat Pakistan,<br />
Golden Star Fans has become the<br />
world’s renowned manufacturer and<br />
international exporter of fan<br />
products.<br />
The owner and managing director,<br />
Mr. Zulfiqar started his career as a<br />
lathe machine (Kharad) expert, after<br />
gaining vast working experience of<br />
25 years in different fan<br />
manufacturing factories, finally in<br />
1977, he founded the Golden Star fan<br />
industry.<br />
G.F.C. Fans<br />
G.F.C began in 1954 as a small<br />
manufacturing unit for electric fans.<br />
In 1978, the company grew rapidly<br />
and today it is one of the leading fan<br />
manufacturer and exporter company<br />
of Pakistan.<br />
G.F.C, under the leadership of Mr.<br />
Mohammad Ilyas, has also been a<br />
pioneer in the export of electric fans<br />
from Pakistan. Starting with its first<br />
commercial export in 1993, G.F.C is<br />
now exporting its products to the tune<br />
of US$ 12 million annually to more<br />
than 30 countries in the World,<br />
including countries in Asia, Middle<br />
East, Africa & Europe.<br />
Adnan Industries:<br />
Wahid Fan<br />
It was established in 1997 as<br />
modest manufacturing unit in<br />
Gujrat to manufacture fans under<br />
the Wahid Fans brand name.<br />
True to the Company's progressive<br />
philosophy, the Founder president<br />
Mian Ihsan Ullah, Managing<br />
Director Muhammad Adnan and<br />
Director Yaser Ihsan are always<br />
on the look-out for the world's<br />
latest technologies to adopt and<br />
assimilate in the production of<br />
Wahid Fan.<br />
Their Exports of Wahid Fans the<br />
brand name of Adnan Industries is<br />
much popular in all over the world<br />
which bounded them to export their<br />
products to different countries.<br />
Such as Kingdom of Saudi Arabia,<br />
Dubai, Sudan, Bangladesh,<br />
Afghanistan, Kuwait, Yemen etc.<br />
Super Indus<br />
Electrical Industries<br />
Started with manufacturing of<br />
electric motors in 1970, after the 4<br />
decades of continuous progress and<br />
development, Super Indus Electrical<br />
Industries has become Indus Group<br />
of Industries, one of top<br />
manufacturers of home appliances,<br />
producing a wide range of products<br />
from electric fans to washing &<br />
dryer machines, room air coolers,<br />
gas appliances and plastic furniture,<br />
all known for their quality, durability<br />
and beauty throughout Pakistan as<br />
well as abroad like Bangladesh,<br />
Turkey, Sudan, South Africa and<br />
U.A.E.<br />
Trade Chronicle - <strong>May</strong> - <strong>June</strong> <strong>2016</strong> - Page # 13
TRADE CHRONICLE<br />
Wahid Industries<br />
Wahid Industries is a private medium<br />
sized fan manufacturing company in<br />
Pakistan. The company started its<br />
journey in 1945 before the<br />
independence of Pakistan and within<br />
no time, marked its presence in the<br />
industry by establishing a brand name<br />
known as “Pak Fans”. The history<br />
of Pak brand is as vibrant and brilliant<br />
as the products themselves. The<br />
company traces its origins back to<br />
1936 when Mr. Abdul Wahid, the<br />
founder and the president of the<br />
Company started its operations as the<br />
manufacturer of light engineering and<br />
utility products.<br />
Digital Fans<br />
Awan Electrical Industries, is one of the<br />
manufacturers of all kinds of electrical<br />
fans under the brand name "Digital<br />
Fans". Since its inception in 1988 Digital<br />
Fans has grown with excellence.<br />
Starco Fans<br />
The Starco Fans are the key products<br />
of U.I Industries that is proficiently<br />
engaged in manufacturing and<br />
delivering a wide range of reliable,<br />
durable and unique quality products,<br />
consumable in commercial, industrial,<br />
and residential buildings. In 1987, they<br />
took an initiative step to appear on the<br />
horizon of fan manufacturing industry.<br />
They export their products to regions<br />
in Middle East, Africa and Asia.<br />
Yunas fan<br />
Yunas Metal Works (Pvt) Ltd.<br />
Gujrat, is renowned name among<br />
the fan manufacturers for the last<br />
six decades and is serving its<br />
esteemed clients by supplying<br />
quality products under popular<br />
brand name "Yunas".<br />
Rado Fan<br />
The team (management and the<br />
workers) of Rado Fan Company have<br />
a vision to manufacture and export<br />
all sorts of electric fans, world over<br />
in near future.Their vision is to<br />
enlarge their market from the present<br />
day Middle-East to whole of Africa,<br />
Europe, America including South<br />
America, Central America and<br />
Caribbean. They believe that within<br />
next decade, they can achieve an<br />
export target of US Dollars 10 Million.<br />
Parwaz Engineering<br />
company<br />
Parwaz Engineering company was<br />
established in Pakistan by a group of<br />
progressive and experienced engineers<br />
in their respective field. Since their<br />
establishment with over 35 years of<br />
manufacturing have successfully gained<br />
worldwide recognition for their<br />
innovative designs.<br />
Rafiq Engineering<br />
(Pvt.) Ltd.<br />
Rafiq Engineering (Pvt.) Ltd.<br />
established in 1957, is recognized as<br />
the industry leader in Pakistan<br />
through it's brand Royal Fans. It<br />
manufactures fans, washing<br />
machines and room coolers using<br />
state of the art technology to provide<br />
their valued customers with reliable,<br />
energy efficient and high<br />
performance products.<br />
Al Ahmad Fan<br />
Al Ahmad Fans is famous in<br />
manufacturing export quality, cost<br />
effective and energy saving electric<br />
fans and home appliances. They are<br />
providing quality products in Pakistan<br />
as well as abroad. Al Ahmad Fans is<br />
a well-established Exporter and<br />
Supplier of wide array of Electric<br />
Fans and Electric Washing Machine.<br />
Ark Fan<br />
ARK Electrical Industries was<br />
established in 1980. In the beginning<br />
when the fan industry was not<br />
working in large scale, Mr.<br />
Muhammad Latif Bajwa (CEO) and<br />
Mr. Muhammad Sharif Bajwa<br />
(Director) with their management<br />
started to make the armatures of<br />
Electric Motors, Electric Fans,<br />
Washing Machines and Dryer<br />
Machines. In 1987 after successful<br />
experiment of 7 years the company<br />
decided to plunge in the field of<br />
manufacturing of Electric Fans.<br />
Shaheen Fan<br />
Haroon Amjad Electrical Industries<br />
was setup in 1979. Its brand namely<br />
Shaheen Fans began to grow due to<br />
its quality, which makes the Shaheen<br />
Fans one of the leading manufacturer<br />
and exporter of fans in Pakistan<br />
today. They export fan to Yemen,<br />
UAE., Sudan, Bangladesh,<br />
Afghanistan, and all other Gulf<br />
Countries.<br />
Trade Chronicle - <strong>May</strong> - <strong>June</strong> <strong>2016</strong> - Page # 14
TRADE CHRONICLE<br />
“Pakistan is passing through a very<br />
grave energy crisis situation and to<br />
overcome this, government of<br />
Pakistan and<br />
government of<br />
Punjab are<br />
endeavoring<br />
very hard, so<br />
that, Pakistan<br />
w o u l d<br />
overcome this<br />
energy crisis<br />
in the near<br />
future”, this<br />
was stated by<br />
chief guest,<br />
Ch Sher Ali<br />
K h a n ,<br />
Minister for<br />
Mines &<br />
Minerals,<br />
w h i l e<br />
addressing the<br />
opening<br />
ceremony of 14th<br />
International<br />
Exhibition for Oil Gas & Energy<br />
Industry, POGEE-<strong>2016</strong> at Expo<br />
Centre, Lahore.<br />
“Government of Pakistan has given<br />
lots of initiative to the private sector<br />
to come forward and enhance<br />
investment along with the projects<br />
being put up by the federal and<br />
provisional governments, so that the<br />
energy crises and energy shortfall of<br />
5 to 6 thousand megawatt is<br />
overcome by next year or maximum<br />
by 2018, we are able to put up first<br />
100 megawatt of solar energy in<br />
Bahawalpur in Qaid e Azam solar<br />
park, also setting wind power projects<br />
in Sindh ”, he said.<br />
"The exhibition is the right place of<br />
the foreign investment in the country",<br />
he further added.<br />
Punjab Minister inaugurates POGEE-<strong>2016</strong> exhibition in Lahore<br />
A decade of excellence in the energy industry<br />
The minister further highlighted<br />
various power & energy projects<br />
initiated by the current government<br />
Mr. Sher Ali Khan, Minister for Mines & Minerals, Govt. of Punjab cutting the ribbon<br />
to inaugurate 14th POGEE Pakistan - <strong>2016</strong>, at Expo Center, Lahore. Also seen in the<br />
Photograph Mr. Shah Jahan Mirza MD, Private Power & Infrastructure Board (PPIB),<br />
Mr. Amjad Ali Awan, CEO, AEDB Federal Ministry of Water & Power, Mr. Aamer<br />
Khanzada, MD, Pegasus Consultancy. The Three Days event, Pakistan Oil, Gas &<br />
Energy Exhibition, is being held at Expo Centre, Lahore.<br />
on which work is being done in a very<br />
fast track manners. Later on, the<br />
minister officially inaugurated the<br />
three day POGEE-<strong>2016</strong>, exhibition.<br />
Mr. Shah Jahan Mirza, Managing<br />
Director, Private Power &<br />
Infrastructure Board (PPIB),<br />
Government of Pakistan,<br />
Congratulated organizer in bringing<br />
together all the stakeholders of the<br />
power and energy sectors to interact<br />
with each other and to see where<br />
power sector is moving. He<br />
appreciated the POGEE’s third<br />
consecutive success in Lahore.<br />
Trade Chronicle - <strong>May</strong> - <strong>June</strong> <strong>2016</strong> - Page # 15<br />
Mr. Amjad Ali Awan, Chief Executive<br />
Officer, Alternative Energy<br />
Development Board (AEDB),<br />
Ministry of Water & Power,<br />
Government of Pakistan, highlighted<br />
that the energy crises is multidimensional,<br />
we need not to focus just<br />
on energy but we need to focus on<br />
oil and gas sector as well."<br />
Managing<br />
Director<br />
Pegasus<br />
Consultancy<br />
Mr. Aamer<br />
Khanzada, in<br />
his welcome<br />
remarks said<br />
that Pegasus<br />
Consultancy is<br />
the pioneer and<br />
leading event<br />
organizer in<br />
Pakistan.<br />
The exhibition<br />
has gathered<br />
more than 300<br />
local and<br />
international<br />
companies from around 35<br />
countries, with a majority from,<br />
China, Germany, Italy, Russia,<br />
Canada, Denmark, Austria, Egypt,<br />
France, Hong Kong, Bahrain,<br />
Switzerland, Poland, Bangladesh,<br />
Japan, Pakistan, Scotland, Singapore,<br />
South Africa, U.A.E., U.K, U.S.A,<br />
Australia, Iran, South Korea, Japan,<br />
Belgium, Malaysia, Spain, Poland,<br />
Taiwan, Thailand, Sweden,<br />
Netherlands, Saudi Arabia, and<br />
Turkey.<br />
Pegasus is one of the leading event<br />
organizing companies of Pakistan<br />
and it is an honor for them to<br />
consecutively hold 13 successful<br />
editions of POGEE. Now the 14th<br />
edition of POGEE exhibition has<br />
been organized third time in Lahore<br />
and has gained a good number of<br />
visitors.
TRADE CHRONICLE<br />
" Gas supply is being continued 24<br />
hours to all the industry, closed power<br />
plants have already been started<br />
functioning &<br />
loadsheding is on<br />
its lower and<br />
minimum<br />
degree", this was<br />
stated by the<br />
federal minister<br />
for petroleum&<br />
n a t u r a l<br />
resources, Mr.<br />
Shahid Khaqan<br />
Asbbasi while<br />
visiting the<br />
closing day of<br />
three days,<br />
Pakistan oil gas<br />
& energy<br />
exhibition,<br />
POGEE-<strong>2016</strong> at<br />
expo centre , Lahore.<br />
"I am amazed to see such a huge<br />
foreign participation from 35<br />
countries", he said.<br />
Mr. Khaqan Abbasi also attended a<br />
Federal minister for P&NR, Shahid Khaqan Asbbasi,<br />
visits POGEE-<strong>2016</strong><br />
conference with the theme,<br />
“Designing a sustainable energy<br />
mix”, he appreciated the exclusive<br />
Federal Minister for Petroleum & Natural Resources, Shahid Khaqan Abbasi<br />
visiting a stall during the 14th POGEE Pakistan - <strong>2016</strong> at the Expo Centre<br />
Lahore.<br />
sessions on energy sector reform :<br />
prospect & challenges and on coal<br />
& indigenous renewable resources".<br />
“ The exhibitors have negotiated deals<br />
worth millions of dollars during the<br />
three-days, while scores of inquiries<br />
were received by the companies as<br />
the Oil, Gas & Energy exhibition,<br />
POGEE-<strong>2016</strong>, concluded at the Expo<br />
Centre, Lahore,<br />
on a very<br />
successful note.<br />
During the three<br />
day of the<br />
exhibition, a large<br />
number of<br />
b u s i n e s s<br />
professionals,<br />
diplomats, foreign<br />
and commercial<br />
attaches and<br />
delegates,<br />
government<br />
officials, visitors<br />
and industry<br />
leaders including<br />
visitors from<br />
cities like Faisalabad, Sialkot,<br />
Gujranwala, Rawalpindi Islamabad,<br />
Peshawar, Hyderabad, Ghotki,<br />
Muzzafargarh, Shakohpura, Multan,<br />
Lahore and Karachi have visited the<br />
exhibition and witnessed the<br />
technologies & product at display.<br />
SSGC has been conferred with the coveted award of 'Best Corporate Booth' at Pakistan Oil and Gas Energy Exhibition,<br />
commonly know as POGEE. 14th edition of country's premier energy sector event is being convened in Lahore from <strong>May</strong> 19<br />
to to 21, <strong>2016</strong>. Booth was aesthetically created as a prototype of the 42" dia, 352-km RLNG Project. Syed imran Ahmed,<br />
Chief Manager, Corporate Communications, SSGC receiving the Award from Aamer Khanzada, Managing Director, Pegasus<br />
Consultancy.<br />
Trade Chronicle - <strong>May</strong> - <strong>June</strong> <strong>2016</strong> - Page # 16
TRADE CHRONICLE<br />
POGEE exhibitors receive overwhelming response<br />
Foreign exhibitors have offered many<br />
solutions for the energy problems in<br />
Pakistan at the 14th Pakistan Oil, Gas<br />
and Energy Exhibition <strong>2016</strong> at Expo<br />
Centre, Lahore. Many trade visitors<br />
have shown their interest to acquire<br />
ready solution for alternate energy<br />
system mostly solar panels for<br />
commercial, industrial as well as<br />
domestic consumers. The exhibitors<br />
from other countries were of the<br />
opinion that they are having good<br />
business at the POGEE-Pakistan-<br />
<strong>2016</strong>.<br />
Victor Kostenko, manager sale of a<br />
Russian company, global insulator<br />
group stated," We are participating in<br />
Pakistan for the first time and we are<br />
having a good response from the<br />
exhibition,". "It's always pleasant to<br />
start in a new environment with<br />
potential", he further added.<br />
"POGEE-<strong>2016</strong> is a great venture and<br />
a platform for all the exhibitors<br />
showcasing, related services and<br />
technology providers as well as for<br />
the end users", remarked Manager<br />
engineering MubashirSaeed of<br />
Solutions Engineering (pvt).Ltd a local<br />
exhibitor.<br />
On 2nd day of the exhibition, a large<br />
number of business professionals,<br />
diplomats, foreign and commercial<br />
attaches and delegates, government<br />
officials, visitors and industry leaders<br />
including visitors from cities like<br />
Faisalabad, Sialkot, Gujranwala,<br />
Rawalpindi Islamabad, Peshawar,<br />
Hyderabad, Ghotki, Muzzafargarh,<br />
Shakohpura, Multan, Lahore and<br />
Karachi have visited the exhibition<br />
and witnessed the technologies &<br />
product at display. In addition,<br />
POGEE-<strong>2016</strong> organised a highly<br />
focused Conference program that<br />
Mr. Sher Ali Khan, Minister for Mines & Minerals, Govt. of Punjab, visiting a<br />
foreign stall during the opening day of 14th POGEE Pakistan - <strong>2016</strong> at the<br />
Expo Centre Lahore.<br />
A foreign participant briefing local visitors at the 14th, International Oil, Gas<br />
& Energy Exhibition being held at expo center, Lahore.<br />
was aimed to bringing in South Asia’s<br />
Energy Industry into the limelight.<br />
The 12th International Conference<br />
was held on 21st <strong>May</strong>, <strong>2016</strong> at Lahore<br />
Expo Centre. It was based on the<br />
theme “Designing a sustainable<br />
energy mix”. It was consist of two<br />
exclusive sessions on," energy sector<br />
reform : prospect & challenges and<br />
on coal & indigenous renewable<br />
resources.<br />
Eminent speakers participated from<br />
both local and international<br />
organizations & associations, like,<br />
Sergi Transformer Protector, France,<br />
Schneider Electric, UAE, Oil and Gas<br />
Regulatory Authority (OGRA),<br />
Pakistan Council of Renewable<br />
Energy Technologies (PCRET) ,<br />
Khyber Pakhtunkhwa Oil & Gas<br />
Company Ltd, Centre for Coal<br />
Technology, Punjab University,<br />
Energy Research Center, Comsats<br />
institute of information technologyand<br />
National Institute of Science &<br />
Technology, NUST.<br />
Trade Chronicle - <strong>May</strong> - <strong>June</strong> <strong>2016</strong> - Page # 17
TRADE CHRONICLE<br />
LCCI 9th Achievement<br />
Award ceremony held<br />
The President of Pakistan Mamnoon<br />
Hussain has said that Pakistan has<br />
become a profitable land to do<br />
business because of government’s<br />
well-tailored and well-consulted<br />
policies. Mamnoon Hussain was<br />
speaking at the 9th Achievement<br />
Award recently. Federal Ministers,<br />
top government officials, LCCI<br />
President Sheikh Muhammad Arshad,<br />
Senior Vice President Almas Hyder,<br />
Vice President Nasir Saeed, former<br />
office-bearers, Executive Committee<br />
Members and renowned<br />
businessmen were present on the<br />
occasion.<br />
He said that our Government is<br />
taking long-term, mid-term and short<br />
term measures to bring the economy<br />
back on the rail. The continuous<br />
support and co-operation extended by<br />
the business community have<br />
significantly improved the health of<br />
official revenues that gives me an<br />
immense satisfaction.<br />
While highlighting the contribution of<br />
the Industrialists, Mamnoon Hussain<br />
pointed out that Pakistan’s<br />
entrepreneurs ensured the economic<br />
viability of the state that inherited<br />
negligible industrial base at the time<br />
of independence. He said that the<br />
accelerated growth has been<br />
achieved with the cooperation of<br />
business community. The government<br />
is availing the assistance of private<br />
sector under public-private ventures.<br />
He said that impact of these everimproving<br />
economic indicators would<br />
soon reach the masses that would<br />
ultimately help decrease the gap<br />
between haves and have-nots.<br />
While appreciating the LCCI<br />
initiative, he said that businessmen are<br />
writing new success stories with their<br />
Chief Executive Officer of Haier Pakistan and Ruba Pakistan Pvt Ltd Javed<br />
Afridi has been awarded "Businessman of the Year" gold medal at the Lahore<br />
Chamber of Commerce and Industry’s 9th Achievement Award Ceremony.<br />
sheer commitment and dedication<br />
despite all odds. He showed the<br />
optimism that entire business<br />
community will work hard to cope<br />
with new challenges. In his address,<br />
the LCCI president Sheikh<br />
Muhammad Arshad said that the<br />
business community has a remarkable<br />
capacity to succeed. This is partly due<br />
to their individual initiatives and efforts<br />
and partly due to the fact that it is a<br />
country which is blessed in many<br />
respects.<br />
He said that our country is blessed<br />
with a uniquely rich natural resource<br />
base. We have some of the finest and<br />
most precious minerals and metals in<br />
the world. We have one of the largest<br />
coal reserves estimated at over 175<br />
billion tons. It is believed this can<br />
generate 100,000 MW electricity for<br />
at least for one hundred years. This<br />
is an impressive context for visioning<br />
the future of a prosperous Pakistan.<br />
But it demands that we act smartly<br />
and responsibly in exploiting our<br />
natural resource endowment for<br />
securing high long term growth and<br />
improve standards of living in the<br />
country. It is only possible when we<br />
fully understand our challenges and<br />
can muster the will to remove hurdles<br />
impeding our journey to prosperity in<br />
a timely manner.” The LCCI<br />
President said that Pakistan is passing<br />
through testing times. We are faced<br />
with many challenges, both nationally<br />
and internationally. However, it is<br />
comforting that the government is<br />
taking all steps to tackle these<br />
challenges.<br />
Earlier, President of Pakistan<br />
Mamnoon Hussain gave away<br />
awards. Hamza Munir Bhatti<br />
received Son of Lahore Award, Mian<br />
Nadeem Nisar, Dr. Sohail, Javed<br />
Afridi, Tanvir Ahmad, Daniyal Jawed<br />
Qureshi, Muhammad Irfan Butt,<br />
Dawar Rashid, Shabbir Bhatti, Qudrat<br />
Ullah, Mian Javed Ali and Hannan<br />
Asif received President Businessman<br />
of the Year Gold Medal, Rifat-un-<br />
Nisa and Nabila Intisar received<br />
Woman Entrepreneur Achievement<br />
Award <strong>2016</strong> and Salman Basit,<br />
Khawaja Shahid Rashid, Amjad<br />
Hussain, Mian Abid, Yasir Anwar,<br />
Salman Hanif Jewellers and Shahid<br />
Nazir received Achievement Awards.<br />
LCCI President Sheikh Muhammad<br />
Arshad, Senior Vice President Almas<br />
Hyder, Nasir Saeed, former<br />
presidents Ijaz A. Mumtaz, Eng.<br />
Sohail Lashari, Irfan Qaiser Sheikh<br />
and Shahzad Ali Malik given<br />
appreciation awards.<br />
Trade Chronicle - <strong>May</strong> - <strong>June</strong> <strong>2016</strong> - Page # 18
TRADE CHRONICLE<br />
The national flag carrier of country -<br />
Pakistan National Shipping<br />
Corporation (PNSC) plans to buy<br />
more Oil tanker vessels in its fleet in<br />
view of the steady growth in Liquid<br />
Cargo freight market. However, the<br />
Dry Bulk Market is weak; hence, the<br />
Corporation strives to keep vessels<br />
deployed at best available rates.<br />
PNSC is also exploring new<br />
opportunities like Oil Storage facilities,<br />
both shore and floating, and will soon<br />
venture into Ferry Service by the end<br />
of current financial year subject to<br />
approval from Government of<br />
Pakistan.<br />
PNSC over the years gradually<br />
increased its cargo carrying capacity<br />
(DWT) with induction of modern<br />
ships. Presently, PNSC manages a<br />
fleet of 09 ships, real estate and a<br />
repair workshop. In its fleet is a mix<br />
of double hull Aframax<br />
tankers, Panmax bulk<br />
carriers, Supramax,<br />
Handymax and Handysize<br />
bulk carriers, all of modern<br />
vintage, having a total<br />
carrying capacity of over 681<br />
thousand tonnes of<br />
deadweight, highest since its<br />
inception in 1979.<br />
It transports all types of<br />
cargoes on several<br />
geographical routes covering<br />
almost entire world. Its Handymax<br />
and Handysize dry bulk carriers carry<br />
iron and steel products, fertilizers,<br />
minerals, forest products, ores,<br />
Ports & Shipping News<br />
PNSC plans to add more oil tankers<br />
Earns after tax profit of Rs 1,364 million in 9MFY<strong>2016</strong><br />
A Chronicle Report<br />
bauxite, alumina, cement and other<br />
construction materials while<br />
Panamax dry bulk carriers carry coal<br />
Mr. Arif Elahi<br />
Chairman / CEO<br />
and iron ore for energy and steel<br />
production as well as grain for feedstocks.<br />
Financial Statement 9MFY <strong>2016</strong><br />
The PNSC Group has achieved after<br />
tax profit of Rs 1,364 million during<br />
nine months period ended March 31,<br />
<strong>2016</strong> against Rs 1,051 million in the<br />
same period last year. Earnings Per<br />
Share for the Group increased to Rs<br />
10.33 from Rs 7.96 in the<br />
corresponding last period. Despite the<br />
pressure and major financial crunch<br />
faced by global shipping industry due<br />
to drastic reduction in Bulk freight<br />
rates internationally, evident by the<br />
significant reduction in BDI index at<br />
a lowest of 290 points, PNSC<br />
achieved better results by focusing on<br />
more profitable ventures besides<br />
retaining its repute as one of the major<br />
contributors to sea borne trade in<br />
Pakistan.<br />
However, adjacent to the best<br />
possible combination of foreign<br />
charter and its own fleet, PNSC<br />
made a substantial growth in revenue<br />
of 49% and 16.2% in the area of slot<br />
charter and own vessel oil business<br />
respectively, thereby<br />
offsetting losses incurred on<br />
Dry Bulk segment and<br />
maintaining its turnover at<br />
competitive level. Though<br />
reduction in revenue by 16%<br />
the corresponding direct<br />
operating expenses reduced<br />
by 28% to Rs 6,700 million<br />
from Rs 9,298 million,<br />
thereby resulting an<br />
improvement in Gross Profit<br />
to Rs 2,917 million as<br />
against Rs 2,126 million for<br />
the same period last year.<br />
PNSC also took the initiative by<br />
swapping its expensive loans and<br />
Trade Chronicle - <strong>May</strong> - <strong>June</strong> <strong>2016</strong> - Page # 19
TRADE CHRONICLE<br />
prepayment of Rs. 700 million in order<br />
to reduce high Mark-up, the loans<br />
were acquired in 2010 & 2014 at three<br />
months Kibor plus spread of 2.2%<br />
and 1.6% respectively, and achieved<br />
a milestone with significant reduction<br />
in spreads to the level of 0.4% and<br />
0.5% respectively, that will result in<br />
substantial reduction in Finance Costs<br />
over the remaining period of loan.<br />
It may be mentioned here that PNSC<br />
vision is “to be a prominent player and<br />
key stakeholder in global shipping by<br />
maintaining diversified and efficient<br />
marine assets.”The mission of the<br />
corporation is “to provide reliable &<br />
efficient shipping services to overseas<br />
and Pakistan’s sea borne trade,<br />
maintaining relationship of integrity<br />
and trust with our customers, partners,<br />
employees, safeguarding interests of<br />
its stakeholders and contributing<br />
towards betterment of national<br />
economy, society and the<br />
environment.”<br />
Tankers Services<br />
PNSC has transported approx 80<br />
million tonnes of crude since 1998<br />
when it started tanker operations. At<br />
present PNSC operates 4 modern<br />
KICT Welcomes First<br />
Call of New MSC Middle<br />
East Loop 1 Service<br />
MSC Lana Voy-JA618R made its<br />
inaugural call at Karachi International<br />
Container Terminal (KICT), marking<br />
the launch of a new Middle East Loop<br />
1 (MEL 1) Service. To mark the<br />
event, KICT held a maiden voyage<br />
ceremony, attended by Mr Keith Lau,<br />
Chief Executive Officer of KICT<br />
along with senior representatives of<br />
MSC Agency Pakistan (Pvt) Ltd,<br />
importers and exporters using this<br />
MEL 1 service and KICT staff. “We<br />
are excited to have this new service<br />
double hull aframax tankers of<br />
107000 DWT capacity.<br />
Bulk Carriers<br />
PNSC acquired its first bulk carrier<br />
namely "KAGHAN" in 2006. Since<br />
then PNSC has been able to add<br />
further 6 modern bulk carriers of<br />
different type and sizes to cater for<br />
all kinds of large and small bulk trades.<br />
These include a 2009 handy size, one<br />
calling at KICT and are pleased to<br />
note MSC’s direct service to the<br />
Middle East from Karachi” said Keith<br />
Lau.Operated by Mediterranean<br />
Shipping Company, this new service<br />
handy max, one supramax and<br />
another panamax of 2003 vintage.<br />
With an average age under 09 years<br />
PNSC is well placed to cater for any<br />
world wide trade. Today its bulk<br />
carriers are operating from all<br />
continents carrying iron ore, coal,<br />
grains, other bulk minerals, timber,<br />
fertilizers and other finished products.<br />
NVOCC<br />
PNSC operates world wide NVOCC<br />
operation through slot charter<br />
arrangements with major container<br />
carriers. Any and all ports of the<br />
world are served.<br />
Agency<br />
PNSC offers exclusive agency<br />
services with its decade of<br />
experience as an owner operator.<br />
PNSC manages an efficient and<br />
client oriented agency<br />
department.<br />
With more than hundreds of calls<br />
in the port of Karachi and Bin<br />
Qasim, PNSC offer first class<br />
agency services to any principal.<br />
Cost effective services for cargo<br />
operations, repairs, ship chandling,<br />
stores etc.<br />
follows a rotation of Karachi-Jabel<br />
Ali-Sharjah-Sohar-Karachi,<br />
additionally serving all upper Gulf<br />
destinations via Jabel Ali. The weekly<br />
service calls at KICT every Monday.<br />
Trade Chronicle - <strong>May</strong> - <strong>June</strong> <strong>2016</strong> - Page # 20
TRADE CHRONICLE<br />
Karachi port handled<br />
41m tonnes of cargo in<br />
July-April<br />
The Karachi port handled more than<br />
41 million tonnes of cargo during the<br />
first 10 months (July to April) of this<br />
fiscal year, reflecting a year-on-year<br />
rise of 14 per cent, official figures<br />
said.<br />
The increase came mainly on the<br />
back of improved tonnage of imports<br />
which grew 21pc to 32.9m tonnes<br />
from 27.1m tonnes a year earlier.<br />
In contrast, handling of exports fell<br />
7pc to 8.1m during July-April FY16<br />
from 8.8m tonnes recorded in the<br />
same period of the last fiscal year.<br />
However, the trend may vary when<br />
it is calculated in terms of value.<br />
The handling of dry general cargo<br />
PQA’s annual revenue<br />
increases to over Rs12bn:<br />
chairman<br />
Chairman Port Qasim Authority<br />
(PQA), Agha Jan Akhtar said that<br />
despite inheriting a number of<br />
problems, PQA’s annual revenue<br />
increased to more than Rs 12<br />
billion.<br />
He stated this while addressing a<br />
meeting with the members of the<br />
Federation of Pakistan Chambers of<br />
Commerce and Industry (FPCCI)<br />
organized by the Federation’s<br />
Standing Committee on Ports and<br />
Shipping at the Federation House<br />
recently.<br />
He said gas shortage had come down<br />
in the country as a LNG terminal with<br />
a capacity of 400 MMCFD was<br />
grew 17pc to 21.2m tonnes from<br />
18.1m tonnes handled in the same<br />
period of the preceding year. The<br />
handling of dry bulk cargo also rose<br />
8pc to 7m tonnes compared to 6.5m<br />
tonnes. The tonnage of liquid bulk<br />
cargo increased 13pc to 12.7m tonnes<br />
from 11.3m tonnes.<br />
However, there was phenomenal rise<br />
in handling of containerized cargoes<br />
as both imports and exports<br />
registered a remarkable growth.<br />
operating at Port Qasim and gas<br />
shortage would end in near future with<br />
the establishment of two more LNG<br />
terminals at the port.<br />
Agha said PQA is working more<br />
vigorously for the development of<br />
industrial area under the Authority as<br />
1250 acres of land allotted in the past<br />
for the Pakistan Textile City would<br />
be given back to the Authority. He<br />
Containers loaded with the export<br />
cargo rose 14.5pc from nearly<br />
686,000 twenty-foot equivalent<br />
units (TEUs) a year ago to 785,000<br />
TEUs. Containerised imports rose<br />
12pc to 820,000 TEUs from 732,000<br />
TEUs.<br />
The Karachi port managed to handle<br />
higher number of all categories of<br />
ships, except container vessels which<br />
fell 7pc to 612 ships during the 10-<br />
month period under review from 665<br />
a year ago.<br />
The handling of general cargo ships<br />
surged 50pc to 310 vessels from 207<br />
reported in the same period of the last<br />
fiscal year. The arrival of oil tankers<br />
at the Karachi port increased from<br />
405 to 456 vessels.<br />
The overall growth in the handling of<br />
all the categories of vessels rose 9pc<br />
to 1,554 ships from 1,429 in the same<br />
period of the preceding year.<br />
said earlier only five cargo trains<br />
were operating on monthly basis from<br />
Port Qasim but now three cargo trains<br />
were operational daily. Apart from<br />
LNG terminals, 1320MW electricity<br />
would be generating from Port Qasim<br />
within a year, he said.<br />
Earlier, welcoming the PQA<br />
chairman, Senior Vice President<br />
FPCCI Sheikh Khalid Tawab said the<br />
modernization of ports was inevitable<br />
in changing regional situation.<br />
Tawab suggested that waterway<br />
project be integrated with Port<br />
Qasim for speedy inland<br />
transportation.<br />
Vice President FPCCI Hanif Gohar<br />
offered to build a desalination plant<br />
at Port Qasim to overcome water<br />
shortage being faced by the port’s<br />
industrial zone.<br />
Trade Chronicle - <strong>May</strong> - <strong>June</strong> <strong>2016</strong> - Page # 21
TRADE CHRONICLE<br />
Cement Industry<br />
Budget proposals to dampen cement industry’s growth<br />
Federal budget <strong>2016</strong>-17 has<br />
increased the Federal excise duty on<br />
cement from 5 percent on retail price<br />
to Rs. 1000 per ton. This will<br />
negatively affect the economy as the<br />
slowdown in construction activities<br />
due to increased cement prices will<br />
reduce the consumption of cement.<br />
This will further increase illegal cross<br />
border imports of Iranian cement<br />
through under invoicing and<br />
smuggling that will dampen the local<br />
industry’s growth and will reduce the<br />
contribution to national exchequer.<br />
Cement industry despatched 35.523<br />
million tons of cement during July<br />
2015 to <strong>May</strong> <strong>2016</strong> period which is<br />
10.55 percent higher than the<br />
corresponding period of last fiscal<br />
year. The growth in cement<br />
consumption has been led solely by<br />
domestic consumption. Statistics<br />
shows that the overall domestic<br />
despatches in north based mills<br />
increased by 16.64 percent to 24.667<br />
million tons and in south based mills<br />
by 23.7 percent to 5.37 million tons.<br />
In total, the domestic demand<br />
increased by 17.84 percent during the<br />
eleven months of current fiscal year.<br />
Quantitatively, total domestic<br />
despatches were 30.03 Million Tons<br />
from July 15 to <strong>May</strong> 16 compared to<br />
25.49 Million Tons during same period<br />
of last fiscal year while exports<br />
dropped by 17.41 percent to 5.48<br />
Million Tons during the first eleven<br />
months of current fiscal against 6.64<br />
Million Tons during same period of<br />
last fiscal year.<br />
Cement despatches to domestic<br />
markets during the month of <strong>May</strong> 16<br />
increased by<br />
22.78 percent to<br />
3.06 Million Tons<br />
compared with<br />
2.49 Million Tons<br />
during same<br />
month last year.<br />
Exports during<br />
<strong>May</strong> 16 were<br />
558,000 Tons<br />
against 560,000<br />
Tons during <strong>May</strong>,<br />
15. Total<br />
despatches during<br />
<strong>May</strong>, 16 were<br />
3.622 Million Tons compared to 3.056<br />
Million Tons during same month last<br />
year showing increase of 18.52<br />
percent. Zone wise figures show that<br />
the domestic despatches by mills<br />
located in North were 2.5 million tons<br />
compared with despatches of 2.04<br />
million tons during same month last<br />
fiscal depicting a growth of 22.31<br />
percent. In South the domestic<br />
despatches were 563,942 tons<br />
compared with despatches of 451,521<br />
tons in <strong>May</strong> 2015 depicting a growth<br />
of 24.9 percent.<br />
A spokesman of All Pakistan Cement<br />
Manufacturers Association<br />
(APCMA) said that increase in FED<br />
on cement is against the industry’s<br />
demand as we were seeking some<br />
reduction in taxes to further enhance<br />
domestic dispatches.<br />
The proposed change in FED will<br />
increase the illegal trade in the form<br />
of smuggling of cement into the<br />
country. Federal excise duty on<br />
cement has been increased from 5<br />
percent on retail price (i.e. Rs. 425<br />
per ton) to Rs. 1000 per ton in the<br />
federal budget <strong>2016</strong>-17. ‘The impact<br />
of this increase calculates to Rs. 34<br />
per bag’, the spokesman added.<br />
He appealed to the government to<br />
review its decision as this will not only<br />
affect the consumers but also the<br />
industry as we fear that due to high<br />
cement prices, the consumption will<br />
come down.<br />
Constantly falling exports are adding<br />
to the industry woes. Apart from the<br />
exports to India which increased by<br />
33.36 percent from the low base<br />
reached last year, exports to<br />
Afghanistan and other destinations<br />
declined by 10.34 and 32.39 percent<br />
respectively in the first eleven months<br />
of this fiscal.<br />
The exports to other destinations<br />
declined by whopping 32.39 percent<br />
due to economic slowdown in<br />
countries where Pakistan has been<br />
exporting. The government should<br />
provide incentives to the industry to<br />
take back the Afghan market and<br />
earn precious foreign exchange, the<br />
Spokesman added.<br />
Trade Chronicle - <strong>May</strong> - <strong>June</strong> <strong>2016</strong> - Page # 22
TRADE CHRONICLE<br />
People & Events<br />
Hussain Dawood receives Lifetime Achievement Award<br />
Jawwad Cheema to<br />
lead Shell Business<br />
in Pakistan<br />
Jawwad Cheema has been<br />
appointed as the Chief Executive<br />
Officer/Managing Director of<br />
Shell Pakistan Limited with effect<br />
from August 01, <strong>2016</strong>. He<br />
replaces Omar Sheikh who is<br />
moving on to another senior<br />
leadership role within the Shell<br />
Group.<br />
Jawwad is currently the Vice<br />
President for Shell Business<br />
Operations in the Global Real<br />
Estate function with Royal Dutch<br />
Shell. He joined Shell in 1997 and<br />
has held several senior leadership<br />
roles in Downstream Operations,<br />
in Pakistan and internationally<br />
within the Group, with extensive<br />
experience in Retail.<br />
Shell is one of the oldest<br />
multinationals in Pakistan and has<br />
been present in the South Asian<br />
region for over a century. It is the<br />
largest international oil company<br />
in Pakistan with a network of<br />
almost 800 fuel stations across the<br />
country. It is also the largest<br />
Lubricants Marketing Company<br />
and the second largest jet-fuel<br />
supplier.<br />
President MAP Talib S Karim presenting ‘Lifetime Achievement Award’ <strong>2016</strong> to<br />
Hussain Dawood, Group Chairman of Dawood Hercules Corporation, Engro<br />
Corporation and HubCo at a ceremony.<br />
Marketing Association of Pakistan<br />
has conferred the Lifetime<br />
Achievement Award <strong>2016</strong> to<br />
industrialist and ardent philanthropist,<br />
Mr. Hussain Dawood for his<br />
remarkable contributions in a broad<br />
range of sectors. The award was<br />
presented by Talib S. Karim,<br />
President, Marketing Association of<br />
Pakistan, and S. Masood Hashmi<br />
(Managing Director, Orient McCann<br />
Erickson) at their flagship event<br />
MARCON.<br />
Hussain Dawood, Group Chairman,<br />
Dawood Hercules Corporation, Engro<br />
Corporation and HubCo, while<br />
accepting the award said “It is a<br />
distinct honour to receive the MAP<br />
Life Time Achievement Award, and<br />
this year I am grateful to be its<br />
recipient.”<br />
Talib S. Karim, President, Marketing<br />
Association of Pakistan, said<br />
“Marketing Association of Pakistan<br />
is one of the oldest and one of the<br />
most prominent associations of<br />
Pakistan. It has been honouring<br />
individuals who have excelled in the<br />
field of Marketing and Management<br />
every year since 1987.<br />
Muhammad Azfar Ahsan, Chairman,<br />
MARCON’16 & Founding CEO,<br />
Nutshell Forum, said “Mr. Hussain<br />
Dawood chairs an array of profit and<br />
not-for-profit ventures namely<br />
Dawood Hercules Corporation Ltd.<br />
the group’s flagship holding arm with<br />
investments in foods and energy,<br />
Engro Corporation Ltd.; Hub Power<br />
Company Ltd., the largest<br />
Independent Power Producer in<br />
Pakistan; Karachi Education<br />
Initiative, which funds the graduate<br />
management school Karachi School<br />
of Business & Leadership, and The<br />
Dawood Foundation, with its legacy<br />
of establishing various education and<br />
health institutions across the country.<br />
Razak Bengali nominated<br />
chairman PGBC<br />
Razak H.M. Bengali has been<br />
nominated as Chairman, Pakistan-<br />
Germany Business Council of the<br />
Federation of Pakistan Chambers<br />
of Commerce and Industry<br />
(FPCCI) for the year, <strong>2016</strong>, by the<br />
President of FPCCI, Abdul Rauf<br />
Alam. He has been assigned the<br />
task of promoting bilateral trades<br />
between Pakistan and Germany.<br />
Razak Bengali has a rich<br />
experience of trades and<br />
commerce with Germans.<br />
Trade Chronicle - <strong>May</strong> - <strong>June</strong> <strong>2016</strong> - Page # 23
TRADE CHRONICLE<br />
Zia Shahid elected CPNE<br />
president<br />
Zia Shahid and Shaheen Qureshi have<br />
been elected as President and Senior<br />
Vice President of Council of Pakistan<br />
Newspaper Editors (CPNE),<br />
respectively, during its annual election<br />
held recently.<br />
The process of electing 44 members<br />
standing committee has also been done<br />
before the annual election.<br />
According to detail, Zia Shahid and<br />
Shaheen Qureshi have been elected as<br />
President, senior vice President of<br />
CPNE and Ijaz-ul-Haq as secretary<br />
general.<br />
Others who were elected include<br />
Rehmat Ali Razi, Vice President<br />
Punjab; Amir Mehmood, Vice<br />
President Sindh; Anwar Sajjadi, Vice<br />
President Balochistan; Haroon Shah,<br />
Vice President KP; Mehtab Khan, Vice<br />
President Rawalpindi and Islamabad;<br />
Ghulam Nabi, Secretary Finance and<br />
Tahir Farooq, Information Secretary.<br />
Dr Ishrat made fellow in<br />
US centre<br />
The Woo-drow Wilson International<br />
Centre for Scholars has appointed Dr<br />
Ishrat Husain its public policy fellow<br />
for <strong>2016</strong>-17.<br />
The Washington-based institution<br />
announced that Mr Husain would spend<br />
nine months in residence at the Wilson<br />
Centre and work on a project on the<br />
governance situation and institutional<br />
capacity in Pakistan and how this has<br />
affected the country’s economy. Mr<br />
Husain was dean and director of the<br />
IBA in Karachi between 2008 and<br />
<strong>2016</strong>. He is currently professor emeritus<br />
at the IBA and chairman at the Centre<br />
for Excellence in Islamic Finance.<br />
Syed Masood Hashmi reelected<br />
as MAP President<br />
Management Association of Pakistan in<br />
its 540th Executive Committee meeting,<br />
elected unopposed, Syed Masood<br />
Hashmi as the President for another one<br />
year period. He was earlier elected<br />
unopposed as the President following<br />
the 49th Annual General Meeting of<br />
the MAP in the 531st Executive<br />
Committee of MAP on 27th April<br />
2015.<br />
Other Office bearers of MAP viz.<br />
Asif Ikram (Vice President), Amir<br />
Jamil Abbasi (Honorary Secretary)<br />
and Sarmad AN (Honorary<br />
Treasurer) were also elected<br />
unopposed.<br />
Akbar Durrani made<br />
Balochistan Secretary<br />
Finance<br />
The Government of Balochistan<br />
notified, recently that Secretary Home<br />
and Tribal Affairs, Capt Akbar<br />
Hussain Durrani (retd) has been<br />
transferred and posted as Secretary<br />
Finance with immediate effect while<br />
Commissioner Kalat division,<br />
Muhammad Akbar Harifal has been<br />
transferred and posted as Secretary<br />
Home and Tribal Affairs with<br />
immediate effect. Noor-ul-Haque<br />
Baloch waiting for posting has been<br />
posted as Secretary Culture and<br />
Tourism with immediate effect.<br />
In anticipation of heat wave that is expected to hit Karachi in near future,<br />
SSGC joined hands with Alamgir Welfare Trust for setting up 'Heat Stroke Relief<br />
Camps' at 15 Locations of the mega town. These camps will offer awareness to<br />
the pedestrians through brochures and prevention to those who suffer from heat<br />
stroke. Comps are stuffed with beds for the patients, cold drinking water, juices,<br />
ORS, pedestal fans and towels with an exclusivity of an insulated room for the<br />
effected people. The first camp kicked off today, adjacent to the head office of<br />
Alamgir Welfare Trust.<br />
Trade Chronicle - <strong>May</strong> - <strong>June</strong> <strong>2016</strong> - Page # 24
TRADE CHRONICLE<br />
PSX Budget proposals<br />
KATI chief for exempting<br />
machineries, raw<br />
materials from taxes<br />
President, Korangi Association of<br />
Trade & Industry (KATI), Zahid<br />
Saeed, has urged that government to<br />
exempt the machinery and raw<br />
materials for industrial purpose, which<br />
are not available locally, from taxes<br />
and duties.<br />
He recommends the government to<br />
also exempt the existing industry form<br />
taxes and duties on the required<br />
equipments for introducing new<br />
technologies.<br />
Pakistan Stock Exchange (PSX)<br />
held a pre-budget media briefing<br />
with his board members Arif Habib,<br />
Yasin Lakhani, Abid Ali Habib, Abdul<br />
Qadir Memon, Ahmed Chinoy and<br />
Haroon Askari.<br />
In a presentation, Arif proposed to<br />
the government to withdraw in FY17<br />
budget tax on the issuance of bonus<br />
shares, Capital Value Tax (CVT),<br />
rationalize Capital Gains Tax (CGT)<br />
up to 10 percent depending on a<br />
three-tier holding period, extend the<br />
one-year 20 percent income tax<br />
rebate on new listings at PSX to five<br />
years, restore tax incentives on Real<br />
Estate Investment Trusts (REITs)<br />
partly withdrawn in FY16 budget<br />
and end the doubling of sales tax on<br />
brokerage services. “The revenue<br />
impact of our proposals is (next to)<br />
zero: mere Rs 2.91 billion. Which<br />
constitutes only 0.4 percent of total<br />
taxes the PSX contributes,” said<br />
chairman Arif Habib Group.<br />
He was of the opinion that promoting<br />
the process of industrialization is a<br />
must to curb unemployment in the<br />
country.<br />
Zahid said that it was reported that<br />
the government as promised will<br />
exempt new industries from income<br />
tax for a certain period. “This is a<br />
good sign, and we hope that problems<br />
of existing industries would be<br />
addressed accordingly,” he added.<br />
President of KATI also called for<br />
expansion of tax collection, adding<br />
that it is not wise to burden the<br />
existing taxpayers. Better strategy is<br />
to promote financial activities and<br />
facilitate industry, it would not just<br />
create employment opportunities but<br />
would be effective to increase tax to<br />
GDP ratio, he opined.<br />
Delegates from the Royal College of Defense Studies, UK, visited the Pakistan<br />
Stock Exchange on <strong>May</strong> 27, <strong>2016</strong>. The Managing Director, Mr. Nadeem Naqvi,<br />
Welcomed the guest including Mr. John Tucknott, British Deputy High<br />
Commissioner, Karachi, and gave detailed presentation on Pakistan Economy<br />
& Capital Market. Also present were Mr. Tawfiq Asghar Hussain, Mr. Yasin<br />
Lakhani, Mr. Abid Ali Habib and Mr. Ahmed Chinoy, PSX Board Members. The<br />
delegation comprised of:<br />
Maj Gen (Retd.) Simon Leslie PORTER, UK, Mr. John Tucknott, British Deputy<br />
High Commissioner, Karachi, Ms. Teona AKUBARDIA, Georgia, Brigadier Henry<br />
Angus WATSON, UK, Colonel Talab KH A.F. ALFLEEJ, Kuwait, Lt. Col. Namig<br />
Latif Oglu HAMIDLI, Azerbaijan, Captain Ayhan Turket KOCPINAR, Turkey,<br />
Colonel Marcel Johan Bernard Marie LAMBRICHS, Netherlands, Colonel Vuka<br />
Sean MAHLASELA, South Africa, Colonel M'Hamed MAHOUAR, Morocco,<br />
Group Captain Timothy John O'BRIEN, UK, GP. Capt. Adam Mark SANSOM,<br />
UK, Captain Luis Andres SILBERBERG SCHOVELIN, Chile, Colonel Oleksandr<br />
TIULENIEV, Ukraine, Colonel Zoran TOMASEVIC, Serbia, Colonel Giuseppe<br />
TORTORELLI, Italy, Captain Robert Charles VITALI, UK, Mr. David Hugh<br />
MEYER, UK, Ms. Kerry BENSTEAD, UK.<br />
Trade Chronicle - <strong>May</strong> - <strong>June</strong> <strong>2016</strong> - Page # 25
TRADE CHRONICLE<br />
Iqbal Ghori, Anis<br />
elected President, VP of<br />
ICMA Pakistan<br />
The Council of Institute of Cost and<br />
Management Accountants of<br />
Pakistan in its 341st meeting<br />
elected Muhammed Iqbal Ghori as<br />
the President of Institute. Ghori<br />
elected on the Council for the<br />
period of 2015-17 and prior to this<br />
he was serving in the capacity of<br />
Vice President and also chairing<br />
Examination and Research &<br />
Publications Committees of the<br />
Institute.<br />
Mr. Ghori has over 25 years of<br />
experience of serving in the public<br />
and private sector. Professionally,<br />
he is Director Strategic Planning<br />
and CFO Sadaqat Limited. He is<br />
Chairman SAFA Committee on<br />
Governmental and Public Sector<br />
Enterprises Accounting. He is<br />
renowned writer and presenter. He<br />
is renowned writer and presenter.<br />
Subsequently, Anis-ur-Rehman was<br />
elected as Vice President of the<br />
Institute. Since being elected on the<br />
Council for the tenure of 2015 -17,<br />
Anis has been holding chairmanship<br />
of CPD and Internal Audit<br />
Committees. Anis is Additional<br />
Director Finance at Pakistan Civil<br />
Aviation Authority.<br />
Usama Qureshi appointed<br />
chairman of FPCCI body<br />
Abdul Rauf Alam President FPCCI<br />
has appointed Usama Qureshi as the<br />
Chairman of FPCCI's Standing<br />
Committee on Energy for the year<br />
<strong>2016</strong>. Usama Qureshi is a young<br />
enthusiastic entrepreneur with over<br />
12 years of working experience in two<br />
large energy sector organisations like<br />
K-Electric & Pakistan State Oil. He<br />
is also serving as Chairman of<br />
Pakistan Bahrain Business Council of<br />
FPCCI.<br />
Afzal Chamadia made<br />
VC FPCCI body<br />
Abdul Rauf Alam, President<br />
Federation Pakistan Chamber of<br />
Commerce (FPCCI) has appointed<br />
Afzal Chamadia as Vice Chairman<br />
of FPCCI’s Standing Committee on<br />
“Consumer Products” for the year<br />
<strong>2016</strong>. Chamadia has a vast<br />
experience in consumer sector.<br />
Farooq Afzal nominated<br />
as Chairman PRBC,<br />
FPCCI<br />
President of the FPCCI Abdul Rauf<br />
Alam has nominated Muhammad<br />
Farooq Afzal Chief Executive of ITN<br />
Group as Chairman of Pakistan-<br />
Russia Business Council (PRBC) of<br />
Federation of Pakistan Chambers of<br />
Commerce and Industry (FPCCI) for<br />
<strong>2016</strong>.<br />
After nomination as Chairman,<br />
Farooq Afzal said that consumer<br />
goods market in Russia consists of<br />
2.7 trillion dollar and if a proper<br />
strategy is adopted than Pakistan can<br />
surge its consumer goods export to<br />
Russia up to one billion dollars within<br />
a year.<br />
IBA appoints new chair<br />
The elite Institute of Business<br />
Administration (IBA) has notified<br />
Dr Faiza Mushtaq as head of the<br />
department of Social Sciences and<br />
Liberal Arts.<br />
IBA is one of the country’s leading<br />
business schools that has been<br />
making a strong push to enter into<br />
the Social Sciences as well.<br />
Dr Mushtaq earned her PhD from<br />
Northwestern University,<br />
Chicago, in 2010, one of the<br />
world’s leading sociology<br />
departments. She joined IBA in<br />
2014, and rose quickly to become<br />
programme director after one year,<br />
and department head in her<br />
second year. The term is for three<br />
years.<br />
She replaces Dr Framji Minvala,<br />
who served as the first chair of<br />
the new department.<br />
IBA has grown rapidly in the<br />
years when Dr Ishrat Husain<br />
served as its dean, with new<br />
campuses outside Karachi and<br />
expanded course offerings. Dr<br />
Faiza’s appointment is a signal<br />
that the university intends to take<br />
its growth into new areas<br />
seriously.<br />
Trade Chronicle - <strong>May</strong> - <strong>June</strong> <strong>2016</strong> - Page # 27
TRADE CHRONICLE<br />
The 21st Century Business and<br />
Economics Club has published a<br />
revised and expanded version of the<br />
book A fountain of knowledge on the<br />
life and work of the founder of the<br />
Karachi Literature Festival and<br />
managing director of Oxford<br />
University Press, Ameena Saiyid.<br />
The book was launched at a local<br />
hotel recently.<br />
Number of leading speakers<br />
expressed their views on Ms Saiyid’s<br />
personal and professional<br />
achievements and paid tribute to her.<br />
They termed her as a role model.<br />
A fountain of knowledge launched<br />
Shayma was barely five or six years<br />
old, Ms Saiyid used to take her by<br />
public transport to dance and singing<br />
however, mentioned that sometimes<br />
it became difficult to distinguish<br />
whether it was a biography or an<br />
autobiography.<br />
Ameena Saiyid thanked the<br />
organisers for the launch. She said<br />
the book was written 10 years back<br />
by Adil Ahmed and now her daughter<br />
Shayma had updated it.<br />
Thanking all the speakers for the<br />
tributes they showered on her, Mrs<br />
Saiyid, in return, thanked Lt-Gen<br />
(Retd) Haider for having helped her<br />
set up the OUP head office in<br />
Korangi.<br />
Former governor of the State Bank<br />
of Pakistan Dr Ishrat Hussain, Amin<br />
Hashwani, Hum TV’s Sultana<br />
Siddiqui, Sirajuddin Aziz and Retired<br />
Gen Moinuddin Haider have greatly<br />
admired the personlity of Ameena<br />
Saiyid who work hard to get this<br />
posision.<br />
Ms Saiyid’s daughter Shayma Saiyid<br />
gave a very touching account of her<br />
mother. She said in the 1970s when<br />
their family lived in Lahore and<br />
Ameena Saiyid<br />
classes (the latter were conducted by<br />
Chhote Ghulam Ali). She said not only<br />
that, she would take her anywhere<br />
she would go. She said it’s because<br />
of her mother that she had a passion<br />
for dance and music.<br />
Sirajuddin Aziz said the book was<br />
filled with a sense of modesty. He,<br />
She thanked Salahuddin Haider and<br />
Rashid Siddiqui for their role in<br />
updating and publishing the work and<br />
her daughter for having done all the<br />
spadework in the update. Farrukh<br />
Mazhar presented the vote of thanks.<br />
It may be mentioned here that Mrs<br />
Saiyid was presented with an OBE<br />
(Order of the British Empire) by the<br />
UK Government in 2005, and later<br />
the highest literary award of the<br />
Government of France.<br />
JS Global Capital Limited -<br />
Pakistan's premier and one of<br />
the largest Brokerage &<br />
Investment Banking firms has<br />
successfully concluded the<br />
Pakistan Investment<br />
Conference (PIC) <strong>2016</strong> in<br />
London. A group photo of<br />
delegates of the Pakistan<br />
Investment Conference with<br />
Mr Muhammad Zubair, MOS/<br />
Chairman Privatization<br />
Commission of Pakistan, and<br />
Syed Ibne Abbas, Pakistan<br />
High Commissioner to the UK<br />
at Pakistan High Commission<br />
London on 24-5-<strong>2016</strong>.<br />
Trade Chronicle - <strong>May</strong> - <strong>June</strong> <strong>2016</strong> - Page # 28
TRADE CHRONICLE<br />
Telecommunication News<br />
Telenor granted 4G<br />
licence for $395m<br />
Zong superior MBB devices now available on<br />
cheezmall.com<br />
Pakistan has awarded a $395 million<br />
4G licence to Norwegian telecom<br />
giant Telenor, as it seeks to capitalise<br />
on a booming domestic mobile market<br />
some two years since broadband<br />
internet arrived in the country, says<br />
media report.<br />
In 2014, Pakistan auctioned its first<br />
4G broadband licence to China`s Zong<br />
for $210 million, along with 3G licences<br />
to Zong, the UAE`s Warid, and Pakist<br />
an`s domestic Mobilink. The total<br />
raised in the auction was $1.2bn.<br />
In the first quarter of 2015 smartphone<br />
shipments to the country soared by<br />
123pc, according to the Pakistan<br />
Telecommunication Authority`s<br />
annual report, one of the fastest growth<br />
rates in the developing world.<br />
Since then broadband use has<br />
exploded, with the number of users<br />
growing to around 29 million from a<br />
mere 1.9 million -a higher percentage<br />
than India, Nepal and Bangladesh.<br />
Pakistan`s state-run Telecom<br />
Authority (PTA) had auctioned the<br />
license to local and international<br />
telecom companies, with Telenor<br />
winning the bid. `The licence for 850<br />
MHz band will be awarded on base<br />
price of $395 Million in accordance<br />
with the schedule,` an internal<br />
statement from PTA said.<br />
`The licence will be awarded to Telenor<br />
within 30 days of payment,` it added.<br />
Telenor Pakistan is 100 percent owned<br />
by Norway`s Telenor Group, one of<br />
the largest mobile operators in the world.<br />
In this picture Mr. Niaz A. Malik, Deputy CEO Zong and Mr. Aurangzeb Khan,<br />
CEO cheezmall.comalong with their teams after signing an agreement through<br />
which Zong's high-speed MBB devices will be available on cheezmall.com.<br />
Zong, Pakistan’s only 4G operator,<br />
has moved a step further to offer its<br />
Mobile Broadband (MBB) devices on<br />
cheezmall.com, one of Pakistan’s top<br />
websites for online sale and purchase.<br />
This development is a result of an<br />
agreement recently signed between<br />
the two organizations. Customers can<br />
place orders for the MBB devices on<br />
the website and can pay Cash On<br />
Delivery (COD), this is a great<br />
initiative especially for those<br />
customers who are hesitant to make<br />
online transactions. The payment for<br />
the device shall be made on receipt<br />
via courier.<br />
Niaz A. Malik, Deputy Chief<br />
Executive OfficerZong, “The<br />
collaboration with Cheezmall.com<br />
would ensure easy availability of our<br />
high-powered MBB devices at<br />
affordable rates. Zong is the only 4G<br />
services provider in Pakistan and our<br />
unmatched 4G portfolio will definitely<br />
help give new meaning to high speed<br />
user experience. Cheezmall.com is a<br />
prolific online entity and on account<br />
of its excellent repute and massive<br />
outreach, Zong’s subscribers across<br />
the country can have our unparalleled<br />
MBB devices by simply placing online<br />
orders from their homes, workplaces<br />
or anywhere,” he said.<br />
Aurangzeb Khan, CEO<br />
cheezmall.com said, “A significant<br />
number of people cannot visit markets<br />
due to their busy schedules. For such<br />
people, the availability of the fastest<br />
internet devices at our website is a<br />
blessing. Hundreds of thousands of<br />
people shop at our website every<br />
month. The addition of Zong’s MBB<br />
devices would be a much valuable<br />
addition in our partners and portfolio.<br />
The best thing about this is that the<br />
customers have to pay only after the<br />
consignments are delivered to them,”<br />
he added.<br />
On an average, over 500,000 internet<br />
users visit cheezmall.com and over<br />
two million people are presently doing<br />
business with this website. Zong<br />
customers can activate the MBB<br />
devices purchased online from the<br />
nearest Customer Services Centre or<br />
franchise.<br />
Trade Chronicle - <strong>May</strong> - <strong>June</strong> <strong>2016</strong> - Page # 29
TRADE CHRONICLE<br />
Telenor Pakistan<br />
announces Irfan Wahab<br />
Khan as new CEO<br />
Telenor Group has recently appointed<br />
Irfan Wahab Khan as Chief<br />
Executive Officer of Telenor<br />
Pakistan. The current CEO of Telenor<br />
Pakistan, Michael Foley,will join<br />
Telenor Bulgaria on the same position<br />
and continue as Chairman of the<br />
Board of Directors of Tameer<br />
Microfinance Bank in Pakistan. Both<br />
Foley and Khan will be members of<br />
the Group Executive Management<br />
team. The new appointments will be<br />
effective from 1st August <strong>2016</strong>. Mr.<br />
Irfan Khan comes from the position<br />
of Deputy CEO and Chief Marketing<br />
Officer (CMO) of Telenor Pakistan.<br />
He has been with Telenor for 12<br />
years and was the first employee in<br />
Telenor Pakistan when he started as<br />
Executive Vice President and Head<br />
of Corporate Affairs Division in 2004.<br />
Putting its next-generation IoT product 'Telenor Companion' watch to test for<br />
the social good, Telenor Pakistan collaborates with Picture Autism, a nonprofit<br />
working to create awareness about Autism in Pakistan. The pilot phase comprises<br />
distribution of Companion watches among autistic children and to test its efficacy<br />
in addressing the needs of autistic children and their families. The picture shows<br />
Muhammad Aslam Hayat, Chief Corporate Affairs & Strategy Officer, Telenor<br />
Pakistan, along with the Corporate Responsibility team, donating Telenor<br />
companion devices to Saba Iqbal, CEO Picture Autism.<br />
Telenor Pakistan employee briefs Anusha Rehman, Minister of State for IT and<br />
Telecom on digital products and applications at Telenor Digital Fest in<br />
Islamabad. Also present (third from R) are Irfan Wahab Khan, Deputy CEO<br />
Telenor Pakistan |Dr. Ismail Shah, Chairman Pakistan Communication Authority<br />
and Abdul Mobeen, Director Regulatory Telenor Pakistan.<br />
Ufone appoints Younas<br />
Iqbal Sheikh as CCO<br />
Ufone, Pakistan’s premier telecom<br />
provider, has appointed Mr. Younas<br />
Iqbal Sheikh as their new Chief<br />
Commercial Officer (CCO). He will<br />
now be leading the Marketing and Sales<br />
Departments and bear responsibilities<br />
to drive business growth and maintain<br />
Ufone’s supremacy in the market.<br />
Sheikh brings with him vast experience<br />
in the telecom industry, spanning twenty<br />
years and a proven track record of<br />
successful. Sheikh has had the flare to<br />
perform in crucial markets, with<br />
expertise in key role areas of Sales &<br />
Distribution, Customer Services,<br />
Operations and Marketing.<br />
His previous stints include leadership<br />
roles at Warid Telecom (Pvt.) Ltd as<br />
CCO, Ufone as Head of Sales and<br />
General Manager Sales, Mobilink as<br />
Director Distribution, Worldcall as<br />
COO and Wi-Tribe as Executive<br />
Director Sales & Marketing. Sheikh<br />
was also associated with Siemens and<br />
InstaPhone earlier in his career.<br />
“I’m very excited to take on this new<br />
role at Ufone,” said Mr. Sheikh. “Ufone<br />
has a great team to work with and a<br />
strong customer brand.”<br />
Rainer Rathgeber, CEO, Ufone said –<br />
“It is a pleasure to welcome someone<br />
of Sheikh’s caliber back to the Ufone<br />
team. His familiarity with the sector and<br />
Ufone will strengthen the Ufone team<br />
in its continuous effort to focus on<br />
customer needs.”<br />
Trade Chronicle - <strong>May</strong> - <strong>June</strong> <strong>2016</strong> - Page # 30
TRADE CHRONICLE<br />
Banking & Insurance News<br />
NBP Records 23%<br />
growth in Profit<br />
The Board of Directors of National<br />
Bank of Pakistan, in their meeting<br />
held on April 28, <strong>2016</strong> at the Bank’s<br />
Head Office Karachi, approved the<br />
financial statements of the bank for<br />
the quarter ended March 31, <strong>2016</strong>.<br />
The bank, for the three month period<br />
ended March 31, <strong>2016</strong> recorded a<br />
pre-tax profit of Rs. 6.2 billion 23%<br />
higher than Rs. 5.0 billion for the<br />
corresponding period of 2015.<br />
Similarly, the after-tax profit also<br />
remained 23% higher at Rs. 4.0 billion<br />
compared to Rs. 3.3 billion for the<br />
quarter ended March 31, 2015. This<br />
translates into Earnings per share of<br />
Rs 1.90 for March <strong>2016</strong> as against<br />
Rs.1.54 for quarter ended March 31,<br />
2015. Pre- tax and after tax return<br />
on equity stand at 22.6% and 14.8%<br />
respectively; whereas pre-tax and<br />
after tax return on assets are at 1.5%<br />
and 1% respectively.<br />
Despite a general reduction in the<br />
discount rate during the year, the net<br />
interest income increased from Rs.<br />
10.6 billion in Q1-2015 to Rs. 12.0<br />
billion in Q1-<strong>2016</strong> reflecting an<br />
increase of 14%. The provision<br />
charge against the NPL was<br />
significantly lower at Rs. 1.06 billion<br />
compared to Rs. 3.05 billion in Q1-<br />
2015.<br />
Non mark-up / interest income<br />
decreased by 23% to Rs. 6.5 billion<br />
compared Rs. 8.5 billion for the Q1,<br />
2015. The drop is mainly attributed<br />
to the lower gains generated from sale<br />
of securities. As compared to Rs.<br />
1,136 billion as of March 2015, the<br />
Bank’s deposits increased by 12% to<br />
Rs. 1,274 billion as of March 31, <strong>2016</strong>.<br />
The Bank’s branch network consists<br />
of 1403 domestic branches, including<br />
82 branches dedicated for Islamic<br />
banking.<br />
ATM network has now increased to<br />
1,150+ machines, with 6 ATM centres.<br />
With deployment of Core Banking<br />
Application, the bank’s has now become<br />
more capable of launching technologybased<br />
products like online / mobile<br />
banking, cash management, cards etc.<br />
NBP establishes 110<br />
branches of Islamic<br />
banking<br />
The National Bank of Pakistan<br />
(NBP) is working to promote Islamic<br />
banking and within a short span of<br />
18-months had set up 110 Sharia<br />
compliant bank branches in the<br />
country. This was stated by Saima<br />
Rahim, NBP Regional Head of<br />
Islamic Banking while speaking to<br />
newsmen at an Iftar hosted by NBP.<br />
Provincial Minister for Excise and<br />
Taxation, Mian Jamshed Kakakhel<br />
was chief on the occasion which was<br />
also attended by the President NBP,<br />
Iqbal Arshraf. Saima Rahim also said,<br />
NBP is expanding Islamic Banking<br />
branches across the country and<br />
Islamic banking is also being extended<br />
to the Federally Administered Tribal<br />
Area (FATA).<br />
Soneri Bank announces<br />
first quarter results<br />
Soneri Bank Limited posted a profit<br />
before tax of Rs 822.31 million and<br />
profit after tax of Rs. 539.21 million<br />
for the first quarter ended 31 March<br />
<strong>2016</strong>. The Board in its 149th meeting<br />
held recently, approved the Bank’s<br />
first quarterly un-audited financial<br />
statements. Deposits grew by 5.61<br />
percent during the period closing at<br />
Rs.195.62 billion (December 2015:<br />
Rs.185.22 billion). Net Advances<br />
are almost at 2015 year end position<br />
standing at Rs.112.76 billion<br />
(December 2015: Rs.112.00 billion).<br />
The Bank’s Net assets (including<br />
surplus) amounts to Rs.17.60 billion<br />
as at 31 March <strong>2016</strong>. The Bank<br />
continues to follow a prudent policy<br />
of making provisions against<br />
infected loan portfolio in line with<br />
regulatory requirements Soneri<br />
Bank has a unique market position<br />
in trade-finance and transactions<br />
banking services and boasts a loyal<br />
and satisfied client-base in all its 266<br />
branches all over the country.<br />
The Bank is committed to meet the<br />
increasing expectations of its<br />
customers and continue to provide<br />
them par-excellence services, for<br />
which the bank has been investing<br />
prudently in information technology,<br />
human resources, marketing and<br />
infrastructure.<br />
Trade Chronicle - <strong>May</strong> - <strong>June</strong> <strong>2016</strong> - Page # 31
TRADE CHRONICLE<br />
Silkbank declares Rs 515<br />
million operating profit<br />
Silkbank Limited in its Board meeting<br />
held recently declared operating profit<br />
of Rs 515 million for the quarter<br />
ended March 31, <strong>2016</strong>. The bank's<br />
profit before tax of Rs 311 million for<br />
the quarter registered a significant<br />
increase of 313 percent compared to<br />
the same period last year. The bank's<br />
total assets base grew notably by 6<br />
billion over this period highlighting the<br />
operational strength of the bank.<br />
Deposits for the period have increased<br />
by Rs 4.2 billion taking the total<br />
deposit base to Rs 85.34 billion -<br />
reflecting depositors' growing<br />
confidence in the bank. Net mark-up<br />
income of the bank grew significantly<br />
by 46 percent over the same period<br />
last year, highlighting the bank's<br />
operational efficiency.<br />
Moreover, the bank was also able to<br />
curtail its non-mark-up expenses<br />
which dropped by 11 percent.<br />
Silkbank which is now complaint on<br />
the Capital Adequacy Ratio (CAR)<br />
and the Minimum Capital<br />
Requirement (MCR) of the State<br />
Bank of Pakistan is well poised to<br />
register strong growth and earnings<br />
in <strong>2016</strong>.<br />
Meezan Bank gets Best<br />
Islamic Bank award<br />
Global Finance Magazine has<br />
announced Meezan Bank, Pakistan's<br />
first and largest Islamic Bank as<br />
"Best Islamic Bank in Pakistan" in<br />
official Press Release of their ninth<br />
annual awards for the "World's Best<br />
Islamic Financial Institutions."<br />
Meezan Bank has been a regular<br />
recipient of Global Finance awards<br />
since 2008 for its contribution to the<br />
growth of Islamic financial system<br />
in the country, commitment to quality<br />
and consistent support to the needs<br />
of its clients. The bank has been<br />
recognised for upholding both the<br />
spirit and the letter of Shariah law,<br />
retaining reliable and socially<br />
responsible Islamic finance<br />
operations.<br />
Global Finance, founded in 1987, is<br />
one of the most prestigious finance<br />
publications working with corporate<br />
leaders, bankers and investors to<br />
chart the course of global business<br />
and finance.<br />
Meezan Bank<br />
announces results for<br />
First Quarter <strong>2016</strong><br />
The Board of Directors of Meezan<br />
Bank in its meeting, held at Karachi<br />
on April 26, <strong>2016</strong> approved the<br />
unconsolidated financial statements<br />
of the Bank and consolidated<br />
financial statements for the quarter<br />
ended March 31, <strong>2016</strong>.<br />
Profit after tax increased to Rs.<br />
1,337 million from Rs. 1,313 million<br />
earned in corresponding quarter last<br />
year despite the lower discount rate<br />
in the current quarter. The Earnings<br />
Per Share (EPS) increased to Rs.<br />
1.33 from Rs. 1.31. The Bank’s<br />
other income registered an increase<br />
of 15% with fee, commission and<br />
brokerage income contributing 47%<br />
of total other income.<br />
The Bank’s deposits increased by<br />
20% to Rs. 469 billion while its<br />
financing portfolio grew by 37%<br />
compared to corresponding period<br />
last year to Rs. 201 billion. Quality<br />
of assets is very good withan NPL<br />
ratio of 3% and a comfortable NPL<br />
coverage ratio of 117% (December<br />
31, 2015: 116%). This is the second<br />
best in the banking industry – both<br />
conventional and Islamic.<br />
National Bank of Pakistan (NBP) and<br />
Industrial & Commercial Bank of China<br />
(ICBC), Pakistan signed MoU on bilateral<br />
cooperation in Karachi, Pakistan on the<br />
celebrations of ICBC’s completion of five<br />
years in Pakistan. The MoU was signed<br />
by Syed Ahmed Iqbal Ashraf, President<br />
NBP and Mr. Li Xiao Xin, Deputy CEO,<br />
ICBC. Mr Masood Karim Shaikh, Group<br />
Chief – International Banking Group<br />
(NBP) & Mr. Shaikh Tariq Abdullah,<br />
Divisional Head – Financial Institutions<br />
(NBP) were also present.<br />
Trade Chronicle - <strong>May</strong> - <strong>June</strong> <strong>2016</strong> - Page # 32
TRADE CHRONICLE<br />
UBL crowned ‘Best<br />
Bank’ at Pakistan<br />
Banking Awards<br />
United Bank Limited (UBL) has been<br />
declared Pakistan’s Best Bank <strong>2016</strong><br />
at the first Pakistan Banking Awards<br />
held in Karachi. This award<br />
recognizes a bank that has<br />
demonstrated the most significant<br />
contribution to national development<br />
and the most effective management<br />
of its resources including its<br />
employees, clients, franchise,<br />
community and financials. The<br />
Awards were held under the auspices<br />
of the Institute of Bankers Pakistan<br />
(IBP), DAWN and A.F. Ferguson<br />
and Co.<br />
Ashraf Mahmood Wathra, Governor<br />
of the State Bank of Pakistan (SBP),<br />
was the Chief Guest on the occasion.<br />
The awards were adjudged by a 5-<br />
member jury of experts comprising<br />
Syed Salim Raza, former SBP<br />
Governor and<br />
former CEO<br />
Pakistan Business<br />
Council, Fuad Azim<br />
Hashimi, CEO<br />
Pakistan Institute of<br />
Corporate<br />
Governance, Nargis<br />
G h a l o o ,<br />
Chairperson State<br />
Life Insurance<br />
Corporation, Azhar<br />
Hamid, former<br />
Banking Mohtasib,<br />
former member<br />
Board of Directors<br />
of SBP and former Country Head of<br />
Standard Chartered Pakistan and<br />
Shehzad Naqvi, former Country<br />
Head of ABN AMRO and Citibank<br />
in Pakistan and Singapore.<br />
Wajahat Husain, President & CEO<br />
UBL, commenting on the occasion<br />
said:<br />
“I am proud and honoured that UBL<br />
has been declared the Best Bank at<br />
the country’s first Banking Awards.<br />
UBL has been a leading financial<br />
institution for the last 57 years. During<br />
this period, the Bank has come to be<br />
acknowledged as a progressive and<br />
innovative bank. These two identities<br />
of the Bank have seen it contribute<br />
greatly towards financial inclusion<br />
and economic development of<br />
Pakistan. UBL’s primary pursuit is to<br />
provide superior financial products<br />
and services to our valued customers;<br />
this stems from our corporate belief<br />
‘Where You Come First’.”<br />
Tameer Bank wins two<br />
prestigious awards at the<br />
Pakistan Banking<br />
Awards <strong>2016</strong><br />
Tameer Microfinance Bank bagged<br />
the ‘Best Microfinance Bank’ and the<br />
‘Bank the Unbanked’ awards at the<br />
country’s first ever Pakistan Banking<br />
Awards <strong>2016</strong>, held at the Mohatta<br />
Palace, Karachi. These awards were<br />
given to banks that performed well<br />
and contributed significantly towards<br />
social impact and financial inclusion<br />
in Pakistan.<br />
The first award category, ‘Bank the<br />
Unbanked’ recognizes Tameer Bank<br />
for the work it has done on financial<br />
inclusion in Pakistan. As the first<br />
microfinance bank and the financial<br />
powerhouse behind Easypaisa,<br />
Tameer Bank has brought financial<br />
services to millions of Pakistanis,<br />
with over 75,000 touch points and<br />
more than 21 million active<br />
customers. This award is<br />
particularly significant as it reflects<br />
Tameer’s penetration in rural and<br />
low-income urban segments of the<br />
society, particularly women. Tameer<br />
Bank, through its microfinance<br />
leadership and branchless banking<br />
services, is committed to<br />
accelerating socio-economic<br />
development.<br />
Tameer Bank grabbed its second<br />
award ‘Best Microfinance Bank’ for<br />
its exceptional performance in<br />
expanding outreach through<br />
penetration, efficiency and<br />
innovations along with both strong<br />
bottom line and social impact.<br />
Tameer Bank announces<br />
Ali Riaz Chaudhry as its<br />
new President and CEO<br />
Tameer Microfinance Bank<br />
announced that Ali Riaz Chaudhry has<br />
assumed the role of bank’s new<br />
President and Chief Executive<br />
Officer effective 16th <strong>May</strong> <strong>2016</strong>. Ali<br />
was appointed to take charge after<br />
Telenor Group completed its 100%<br />
acquisition of Tameer Bank last<br />
month.<br />
Trade Chronicle - <strong>May</strong> - <strong>June</strong> <strong>2016</strong> - Page # 33
TRADE CHRONICLE<br />
PSO profits up 42pc in<br />
July-March<br />
The Pakistan State Oil (PSO), the<br />
largest oil marketer in the country, has<br />
announced a 42 percent increase in<br />
its net profit to Rs4.59 billion for the<br />
first nine months of the current fiscal<br />
year as the state-run company<br />
witnessed a decline in cost of sales.<br />
The company’s net profit amounted<br />
to Rs3.24 billion in the same period a<br />
year earlier, said a filing to the<br />
Pakistan Stock Exchange. It posted<br />
earnings per share of Rs16.91 for<br />
July-March 2015/16 as compared to<br />
Rs11.93 in the same period last year.<br />
During the first nine months of the<br />
current fiscal year, the company’s<br />
gross revenue fell 21 percent to<br />
Rs650.74 billion. The company<br />
reported that its cost of sales fell 29<br />
percent to Rs475.08 billion. Operating<br />
cost and financial cost also remained<br />
low that helped increase the<br />
profit margins.<br />
During the quarter ending<br />
March 31, the company<br />
reported a loss of Rs520<br />
million as falling oil prices bit<br />
its inventory. Other income<br />
of the company also declined<br />
37 percent to Rs1.6 billion<br />
during the period.<br />
During the period under<br />
review, the PSO continued to<br />
hold its market position in the industry<br />
despite stiff market conditions with<br />
an overall market share of 55 percent,<br />
a statement said.<br />
“A growth of 2.4 percent was<br />
witnessed in total liquid fuels sales<br />
volume over the same period last<br />
year, which was primarily driven by<br />
growth in sales volume of white oil<br />
and black oil by 3.9 percent and 0.9<br />
percent respectively,” the company’s<br />
added.<br />
Major increase was witnessed in<br />
motor gasoline sales, which increased<br />
13.5 percent amid lower local<br />
petroleum prices and increased motor<br />
vehicle population.<br />
PSO black oil sales volume<br />
increased 0.9 percent despite 5.3<br />
percent decrease in industry<br />
volumes, owing to increased<br />
availability of natural gas /regasified<br />
liquefied natural gas to<br />
power producers.<br />
Asia Insurance receives<br />
Gold Metal & FPCCI<br />
achievement award<br />
Asia Insurance Company Limited has<br />
been awarded gold medal for its<br />
"Excellence Insurance Services" by<br />
the Federation of Pakistan Chambers<br />
of Commerce and Industry (FPCCI)<br />
during the 04th Achievement Awards<br />
ceremony. Mr. Zain ul Haq Qureshi<br />
Executive Director Asia Insurance<br />
has received Gold Medal & Award<br />
from President of Pakistan Mamnoon<br />
hussain & Abdul Rauf Alam -<br />
President FPCCI.<br />
Pakistan’s top financial solutions company Intelligenes joins forces with UAE’s<br />
Monami Group to cofound Monami Tech, a partner of Australian stock exchange<br />
listed fintech company Novatti. The new venture aims to bring foreign investment<br />
and advanced turnkey fintech solutions to Pakistani financial services market.<br />
The picture shows (L-R): Umer Nawab, COO Intelligenes and Monami Tech<br />
(Pakistan), Najam us Saqib, CEO Intelligenes and Monami Tech (Pakistan),<br />
and Ammar Afif, CEO Monami Group.<br />
Trade Chronicle - <strong>May</strong> - <strong>June</strong> <strong>2016</strong> - Page # 34
TRADE CHRONICLE<br />
HBL declares Rs 9 billion<br />
profit after tax<br />
HBL has declared a consolidated pretax<br />
profit of Rs 13.9 billion for the<br />
first quarter of <strong>2016</strong> with profit after<br />
tax of Rs 9.0 billion. Consequently,<br />
earnings per share for the quarter<br />
were Rs 6.15 along with which the<br />
bank declared a dividend of Rs 3.50<br />
per share (35pc). HBL grew its<br />
average balance sheet by 15 percent<br />
over the first quarter of 2015, with<br />
average current deposits growing by<br />
Rs 81 billion.<br />
The domestic CASA ratio now stands<br />
at 89 percent and the cost of domestic<br />
deposits reduced to 2.8 percent for<br />
Q1 <strong>2016</strong>. This somewhat alleviated<br />
the continued downward pressure on<br />
margins, and enabled HBL to<br />
increase net interest income by 6<br />
percent to Rs 20.2 billion for the<br />
quarter ended March 31, <strong>2016</strong>.<br />
Non mark-up income, excluding<br />
capital gains, increased by 12 percent<br />
over the first quarter of 2015, as fees<br />
and commissions rose by 25 percent<br />
to Rs 4.3 billion for Q1 <strong>2016</strong>. This<br />
growth was driven mainly by<br />
increased income from Home<br />
Remittances and a doubling of fees<br />
related to both credit and debit card<br />
activity. Other fee drivers such as<br />
Bancassurance, trade and general<br />
banking fees continued to make<br />
significant contributions.<br />
Administrative expenses were<br />
reduced by 6 percent over the<br />
previous quarter, but increased<br />
compared to Q1 2015, mainly due to<br />
the sponsorship of the Pakistan Super<br />
League and increase in the branch<br />
network. During the current quarter<br />
HBL further expanded the reach of<br />
its ATM network to nearly 2,000<br />
ATMs and now has almost 14,000<br />
POS terminals to increase card<br />
acceptance and provide customers<br />
with further convenience. Provisions<br />
reduced by 36 percent over Q1 2015,<br />
despite conservative provisioning by<br />
the bank and the coverage ratio<br />
remains robust at 88.5 percent.<br />
HBL has recently achieved<br />
another landmark by becoming the<br />
first Pakistani bank to receive a<br />
license for opening a branch in<br />
Urumqi in Western China. The<br />
bank expects that the branch will<br />
be operational by the end of the<br />
year and will further cement links<br />
with China.<br />
With ample liquidity and a sound<br />
Capital Adequacy Ratio of 17<br />
percent, HBL is well positioned to<br />
leverage growth opportunities related<br />
to the China Pakistan Economic<br />
Corridor. The bank remains focused<br />
on maintaining its demonstrated track<br />
record of growing low cost deposits<br />
while prudently managing its costs and<br />
credit quality.<br />
Askari Bank celebrates<br />
launch of branch in China<br />
Askari Bank held a corporate dinner<br />
at Marriot Hotel, Islamabad, to<br />
celebrate the launch of Askari Bank's<br />
representative office in Beijing, China.<br />
Ambassador Charge d'affairs,<br />
People's Republic of China, Zhou<br />
Lijian was chief guest at the occasion,<br />
which was also attended by CPEC<br />
Project Director Major General Zahir<br />
Shah (Retd), country representatives<br />
of Chinese organisations and Askari<br />
Bank President Syed M. Husaini.<br />
Speaking on the occasion, Husaini<br />
said, "For more than two decades,<br />
Askari Bank has been actively<br />
facilitating Chinese companies<br />
operating in Pakistan. Keeping the<br />
recent China-Pakistan Economic<br />
Corridor (CPEC) in sight, Askari<br />
Bank has geared all its resources to<br />
ensure that we play a significant role<br />
in supporting this great initiative. As<br />
such, we have secured permission<br />
from the Government of China to<br />
open a representative office in<br />
Beijing. This office will help facilitate<br />
foreign trade business and develop<br />
close liaison with our correspondent<br />
banks in China.<br />
The office is supervised by Chinesespeaking<br />
staff belonging to Pakistan<br />
and China. We are also expanding our<br />
China desk, upgrading our Gwadar<br />
branch and enhancing our Chinese<br />
speaking resources across Pakistan<br />
to better facilitate our Chinese<br />
clients."<br />
Trade Chronicle - <strong>May</strong> - <strong>June</strong> <strong>2016</strong> - Page # 35
TRADE CHRONICLE<br />
Q1 results: MCB Bank<br />
posts Rs 6.021 billion<br />
profit after tax<br />
The Board of Directors of MCB<br />
Bank Limited, met under the<br />
Chairmanship of Mian Mohammad<br />
Mansha, on April 19, <strong>2016</strong> to review<br />
the performance of the bank and<br />
approve the financial statements for<br />
the three month period ended March<br />
31, <strong>2016</strong>. MCB Bank reported Profit<br />
Before Tax (PBT) of Rs 9.078 billion<br />
and Profit After Tax (PAT) of Rs<br />
6.021 billion.<br />
Net mark-up income of the bank was<br />
reported at Rs 11.468 billion, down<br />
by 4 percent over corresponding<br />
period last year. On the gross markup<br />
income side, the bank reported a<br />
decrease of Rs 2.7 billion which was<br />
mainly on account of decreased<br />
yields on advances and investments<br />
in-line with the interest rate<br />
movement. However, advances and<br />
investments grew by Rs 9.7 billion<br />
and Rs 39.5 billion on average<br />
respectively, when compared with the<br />
first quarter of last year. On the<br />
interest bearing liabilities side, the<br />
consistent tapering of high cost<br />
deposits along with the decrease in<br />
minimum deposit rate resulted in a<br />
significant drop in cost of funds.<br />
On the non-markup income front, the<br />
Bank reported a base of Rs 2.969<br />
billion with contributions from fee,<br />
commission and dividend income. The<br />
administrative expense base<br />
(excluding pension fund reversal)<br />
recorded a nominal increase of 6<br />
percent over corresponding period<br />
last year. On the provision front,<br />
MCB Bank Limited continued with<br />
its recovery trajectory and posted a<br />
reversal in provision of Rs 446 million<br />
in the first quarter of <strong>2016</strong>.<br />
Total asset base of the bank was<br />
reported at Rs 1,060.3 billion<br />
presenting a growth of 4.3 percent<br />
over December 2015. Analysis of the<br />
asset mix highlights that net<br />
investments have increased by Rs 57<br />
billion (+10 percent) over December<br />
31, 2015. Coverage ratio of the Bank<br />
was reported at 86.91 percent with<br />
infection ratio of 6.29 percent. On the<br />
liabilities side, deposit base of the<br />
Bank recorded an increase of Rs 25<br />
billion (4 percent) over December<br />
2015. MCB Bank Limited continued<br />
to enjoy the highest CASA mix in the<br />
banking industry of 94 percent with<br />
current deposits increasing by 7<br />
percent and savings deposits by 3<br />
percent over December 2015.<br />
Return on Assets and Return on<br />
Equity were reported at 2.32 percent<br />
and 21.19 percent respectively,<br />
whereas book value per share stood<br />
at Rs 102.79. The Board of Directors<br />
declared 1st interim cash dividend of<br />
Rs 4.0 per share for the period ended<br />
March 31, <strong>2016</strong>.<br />
January-March 2015-16:<br />
bank Alfalah posts Rs<br />
2.467 billion profit after<br />
tax<br />
Bank Alfalah's financial results for<br />
the first quarter of <strong>2016</strong> remained<br />
positive, with the bank registering<br />
profit before taxation of Rs 3.794<br />
billion - a growth of 25 percent, as<br />
against the corresponding period last<br />
year. The bank's profit after tax was<br />
recorded at Rs 2.467 billion during<br />
Jan-March 2015-16, a 24 percent<br />
increase as compared to the prior<br />
corresponding period.<br />
Despite interest rates being at their<br />
lowest, net mark-up income of the<br />
bank was reported at Rs 7.095 billion,<br />
improving by 4 percent over the<br />
corresponding period last year, while<br />
the overall net revenue earned by the<br />
bank amounted to Rs 9.216 billion, a<br />
11 percent increase over the<br />
corresponding period last year.<br />
Expense management controls were<br />
further strengthened during the period<br />
with growth in administrative<br />
expenses curtailed at 3 percent.<br />
Resultantly the bank managed to<br />
further improve it's cost to income<br />
ratio which now stands at 57percent.<br />
Earnings per share improved to Rs<br />
1.55 at the end of the first quarter<br />
<strong>2016</strong> from Rs 1.25 reported in March<br />
last year.<br />
The bank's lending activity remains<br />
healthy with gross ADR reported at<br />
55 percent in March <strong>2016</strong>. The bank's<br />
non-performing loans (NPLs)<br />
coverage stands at 81 percent. The<br />
overall net provision against advances<br />
and investments improved by 66<br />
percent against the corresponding<br />
quarter last year, on account of higher<br />
recoveries and lower gross<br />
provisioning. "Bank Alfalah continues<br />
to grow consistently and deliver<br />
sound financial performance despite<br />
a challenging external environment.<br />
We are optimistic that we will<br />
continue to maximise shareholder<br />
value while creating innovative<br />
solutions to help our customers<br />
succeed," said Atif Bajwa, President<br />
& CEO, Bank Alfalah.<br />
Trade Chronicle - <strong>May</strong> - <strong>June</strong> <strong>2016</strong> - Page # 36
TRADE CHRONICLE<br />
State Life Insurance Corporation of<br />
Pakistan in the year 2015, has paid<br />
total amount of Rs.13.762 billion<br />
against all claims, thus providing<br />
financial protection and savings to<br />
millions of valued policyholders and<br />
their families nationwide, this was<br />
stated by Chairperson State Life,<br />
Nargis Ghaloo, in an inaugural speech<br />
on the occasion of the Convention<br />
<strong>2016</strong>.<br />
Executive Directors Jamil Anwar,<br />
Irfan Anwer Baloch and Izqar Khan,<br />
along with G.M. Marketing Azhar<br />
Hussain, Senior Corporate Executives<br />
and delegates from all over Pakistan<br />
attended the Convention.<br />
Nargis Ghaloo said that ‘State Life’<br />
is the leading insurer in the country<br />
and is extending the benefits of life<br />
insurance to all sections of society,<br />
especially to the more affluent<br />
segments of the society spread in<br />
towns & villages throughout<br />
Pakistan.<br />
She said that State Life in the year<br />
2015 secured 1st Year premium<br />
SLIC achieved record income of Rs66.804bn in 2015:<br />
Nargis Ghaloo<br />
including renewal, which has<br />
increased from Rs. 59.627 billion to<br />
Rs. 66.804 billion; showing an<br />
Nargis Ghaloo<br />
increase of 12 percent. State Life has<br />
procured new premium of $3.798<br />
million in Gulf Region covering<br />
Kuwait, UAE and Saudi Arabia in the<br />
year 2015. The marketing force of<br />
State Life has extended financial<br />
protection to 675,463 families<br />
nationwide during the year 2015. The<br />
total number of in-force policies till<br />
the end of 2015 are 5.236 million.<br />
She said that in 2012, State Life<br />
launched Bancassurance, an<br />
alternative and cost effective channel<br />
of distribution. The Corporation’s<br />
current banking partners include<br />
United Bank Ltd (UBL), First<br />
Women Bank Ltd (FWBL), National<br />
Bank of Pakistan (NBP), NIB,<br />
Samba Bank, Summit Bank and<br />
Silkbank. Efforts are being made to<br />
expand this network of distribution.<br />
Chairperson also highlighted the<br />
performance of State Life’s Group<br />
& Pension Division; it has so far<br />
secured new premium of Rs. 7.096<br />
billion from 1,131 groups in the year<br />
2015. Besides this, State Life also<br />
offers customized pension products<br />
according to the needs of the client.<br />
The clients not only include local<br />
institutions, but foreign embassies as<br />
well. State Life currently is preparing<br />
to launch Window Takaful<br />
operations.<br />
Professor Dr Atta-ur-Rahman FRS,NI,HI,SI,TI and UNESCO Science Laureate addressing on the "Science Teaching in<br />
Urdu’, under the presiding over of Justice ® Haziqul Khairi at a local hall. Mrs Sadia Rashid, President, Shura Hamdard<br />
Pakistan is also present on this occasion.<br />
Trade Chronicle - <strong>May</strong> - <strong>June</strong> <strong>2016</strong> - Page # 37
TRADE CHRONICLE<br />
Mr. Gulzar Firoz, Chairman, Pakistan<br />
Tanners Association (PTA) said in a<br />
statement that government decision<br />
making five Sectors including<br />
Leather Zero Rated I.e. Exemption<br />
from Sales Tax Payment was a<br />
positive step, which will help increase<br />
export.<br />
He said that this positive decision<br />
should be implemented in true spirit<br />
and exemption should be applied on<br />
all purchases on Raw Materials<br />
including Chemicals, Packing<br />
Materials etc. He said that Refunds<br />
should also be given on Local Taxes<br />
and levies I.e. DLTL.<br />
However, he was not happy with the<br />
announcement that Refunds would<br />
be given to exporters in the month of<br />
August whereas earlier the Finance<br />
Minister had committed to pay them<br />
in July.<br />
PTA welcomes government decision of zero-rated<br />
regime of 5-sectors including Leather Sector<br />
He also said that why only Refunds<br />
be given to only those RPOs which<br />
are issued till 30-April. Why should<br />
other exporters whose Refunds are<br />
pending since 2-years suffer and<br />
RPOs not issued. It is the fault of the<br />
department not exporters. He<br />
appealed to the Finance Minister to<br />
review the decision.<br />
He appealed to the Finance Minister<br />
to reconsider their request to abolish<br />
Import Duty of 3% on Raw Hides<br />
& Skins because Leather Industry<br />
is in crisis and it is important to<br />
reduce their cost to compete the<br />
regional country.<br />
He also pointed out that PTA had<br />
submitted in the list of proposals that<br />
Finished Leather may also be<br />
considered value added product to<br />
qualify for 4% incentive on enhanced<br />
export under SRO 415(I)/2015 as<br />
already allowed for allied sectors<br />
which was not entertained in the<br />
Budget <strong>2016</strong>-17.<br />
A MoU signs for<br />
Footwear/Leather cluster<br />
in Punjab<br />
A memorandum of understanding<br />
(MoU) was signed for forming a<br />
footwear/leather cluster in Punjab on<br />
the first day of the Pakistan Footwear<br />
Manufacturers Association’s<br />
(PFMA) three day awareness<br />
seminar and training at the Lahore<br />
International Expo Centre recently.<br />
The three-day event has been<br />
organised in collaboration with the<br />
United Nations Industrial<br />
Development Organisation (UNIDO)<br />
through Small and Medium Enterprise<br />
Development Authority (SMEDA)<br />
and in partnership with Punjab Board<br />
of Investment and Trade (PBIT),<br />
Italian Agency for Development<br />
Cooperation and the Italian Embassy<br />
Islamabad.<br />
The purpose of the seminar is<br />
promotion of investment in Leather,<br />
Footwear and Accessories sectors.<br />
P F M A<br />
President<br />
W a s i m<br />
Zakaria said<br />
the core idea<br />
behind this<br />
seminar was<br />
to focus on the<br />
creation of a<br />
footwear<br />
cluster in Pakistan offering a platform<br />
for establishment of new factories in<br />
the leather sector, adding more value<br />
to the leather export business and<br />
boosting economic output.”<br />
PBIT CEO Amena Cheema said,<br />
“Since Punjab was now completely<br />
ripe for investment, I would like to<br />
reiterate the point made by Chief<br />
Minister Punjab that ‘investors are our<br />
masters’. In that context, PBIT<br />
stands fully equipped to provide all<br />
possible facilitation and support to<br />
those wishing to invest in our<br />
province.”<br />
To formalise the commitment to build<br />
a footwear/leather cluster, a<br />
memorandum of understanding was<br />
signed among PBIT, InterConnect<br />
and Faisalabad Industrial Estate<br />
Development and Management<br />
Company (FIEDMC).<br />
Presentations on the manufacturing,<br />
marketing and technical aspects of<br />
footwear and leather business.<br />
During the second and third day of<br />
the seminar/workshop, Italian experts<br />
would introduce the formulation of a<br />
sustainable marketing strategy to<br />
facilitate Pakistani leather goods to<br />
penetrate into the global market,<br />
especially Europe.<br />
Trade Chronicle - <strong>May</strong> - <strong>June</strong> <strong>2016</strong> - Page # 38
TRADE CHRONICLE<br />
Automobile News<br />
Pak Suzuki's profits up<br />
0.16 percent<br />
Pak Suzuki Motor Co Ltd (PSMC)<br />
has announced 0.16 percent<br />
increase in its first quarter net profit<br />
with minor increase in its sales.<br />
In its financial results statement<br />
sent to the Pakistan Stock<br />
Exchange (PSX), PSMC reported<br />
a net profit of Rs947.64 million for<br />
the quarter ended March 31, <strong>2016</strong>,<br />
up from Rs946.10 last year.<br />
The company posted earnings per<br />
share (EPS) of Rs11.51 as<br />
compared to Rs11.50 in the same<br />
period of the last year.<br />
Total sales of the company during<br />
the period were reported at<br />
Rs19.99 billion, up from Rs19.64<br />
billion in the last year.<br />
The cost of sales was posted at<br />
Rs17.78 billion from Rs17.46 billion<br />
in the same quarter of the last<br />
year.<br />
Gross profits of PSMC remained<br />
at Rs2.20 billion, up from the last<br />
year's Rs2.17 billion.<br />
Millat Tractors profit<br />
down 41 percent<br />
Millat Tractors Limited (MTL),<br />
the only tractor producing listed<br />
company of the country, has<br />
reported a 41 percent fall in its<br />
nine months net profit, as its sales<br />
decreased. In its consolidated<br />
condensed interim profit and loss<br />
Honda Atlas claims<br />
milestone of selling<br />
275,000 cars<br />
The Honda Atlas Cars Company<br />
claims to have achieved a milestone<br />
in selling 275,000 cars and to celebrate<br />
its success the company has launched<br />
a lucky draw for its staff and buyers.<br />
The draw, which took place at the<br />
Honda Atlas Cars Factory recently,<br />
started with an opening address by<br />
Marketing General Manager<br />
Nadeem Azam who briefed the media<br />
about the achievements and thanked<br />
car buyers for their trust in Honda<br />
brand.<br />
statement issued to the Pakistan<br />
Stock Exchange (PSX), the<br />
company reported a net profit of<br />
Rs1.06 billion for the nine months<br />
ended March 31, down from<br />
Rs1.82 billion earned last year.<br />
EPS came in at Rs23.99, lower than<br />
last year’s EPS of Rs41.09. The<br />
company said its revenue for the<br />
year fell to Rs11.97 billion, down<br />
28 percent as compared to Rs16.69<br />
In his address, President and Chief<br />
Executive Officer Toichil Shiyama<br />
said the company intended to continue<br />
the trend and create an image in the<br />
Pakistani market.<br />
The draw winners were selected by<br />
the company’s executive committee<br />
members.<br />
Those for seven return tickets to the<br />
United Arab Emirates were drawn by<br />
Human Resource and Administration<br />
Vice President Maqsoodur Rehmani;<br />
for five business class return tickets<br />
to Bangkok by Production Vice<br />
President Kenichi Matsuo and grand<br />
prizes of Honda City and Civic by<br />
Chief Executive Officer Shiyama.<br />
billion. Operating cost also fell<br />
to Rs9.77 billion as compared to<br />
Rs13.44 billion last year. Gross<br />
profit of the company has been<br />
recorded at Rs2.20 billion against<br />
Rs13.44 billion in the same<br />
period of FY15. During the<br />
quarter, MTL earned a net profit<br />
of Rs544.83 million as compared<br />
to Rs648.19 million in the same<br />
period of the last year.<br />
Trade Chronicle - <strong>May</strong> - <strong>June</strong> <strong>2016</strong> - Page # 39
TRADE CHRONICLE<br />
Fertilizer & Petrochemical Industries<br />
FFC records net<br />
earnings of Rs 2.73<br />
billion for first quarter<br />
Fauji Fertiliser Company (FFC) has<br />
announced results for the first<br />
quarter amid highly challenging<br />
business environments. In spite of<br />
adverse market conditions FFC<br />
recorded net earnings of Rs 2.73<br />
billion for the first quarter ended<br />
March 31, <strong>2016</strong>.<br />
According to an announcement of<br />
the company, urea industry<br />
remained under severe stress<br />
during the period. This is mainly<br />
ascribed to poor farm economics<br />
and unprecedented rise in cost of<br />
production, while declining<br />
international urea prices and nonimplementation<br />
of 'Kissan<br />
Package' by the government<br />
caused market uncertainty. Thus,<br />
the urea market witnessed<br />
substantial decline to around 50<br />
percent in sales, while inventory<br />
accumulated to 1.2 million tonnes<br />
with combined share of FFC/FFBL<br />
at 35 percent of the total inventory.<br />
Urea production by the company,<br />
however, remained par excellence,<br />
with second highest urea output<br />
ever of 614 thousand tonnes, which<br />
speaks of the operational efficiency<br />
of the engineers and the<br />
management. It is a testimony to<br />
the visionary approach of the<br />
management and the Board, who<br />
decided to diversify investments in<br />
other fields in the past. The<br />
Company stated earning per share<br />
of Rs 2.14, while declaring the<br />
divided per share as Rs 1.85,<br />
company added.<br />
FFC vows to pass on benefits of feed-gas<br />
price rollback to farmers<br />
Fauji Fertilizer Company Limited, one<br />
of the largest fertilizer manufacturers<br />
in Pakistan, has vowed to pass on the<br />
benefits of roll back<br />
in fertilizer feed gas<br />
price by the<br />
government to the<br />
farmers in the<br />
shortest possible<br />
time with<br />
m a x i m u m<br />
efficiency.<br />
According to an<br />
announcement of<br />
the company to ensure that the<br />
benefits of this welcome gesture of<br />
government reach the farmer<br />
community, CE&MD FFC, Lt Gen<br />
Shafqaat Ahmed (retd) visited the<br />
FFC Field force in distant areas of<br />
North and Central zones constituting<br />
of Punjab, KP and Azad Kashmir.<br />
He stressed that FFC field force<br />
must rise to the challenge at this<br />
trying time of agro-economy in<br />
Pakistan.<br />
FFBL invests Rs 13.59<br />
million in Noon Pakistan<br />
Fauji Fertilizer Bin Qasim Limited<br />
(FFBL) said to have invested over<br />
Rs 13.59 million in Noon Pakistan<br />
Limited (NPL). The army-run<br />
fertilizer firm made the investment<br />
to acquire NPL's 456,422<br />
unsubscribed shares each at Rs<br />
29.77. FFBL already holds over<br />
55.25 million ordinary and 14.34<br />
million non-voting ordinary shares of<br />
the target company.<br />
“Farmer, Govt and fertilizer producers<br />
stand as partners to improve agro<br />
economics of Pakistan. FFC will<br />
continue to take<br />
pride in living to its<br />
history of serving<br />
the Nation,” Gen.<br />
Shafqaat stated<br />
while addressing<br />
the FFC Field force.<br />
He further<br />
emphasized that<br />
FFC field force<br />
must ensure that<br />
they push maximum benefits to the<br />
farmers not only in the form of cost<br />
benefit but also make maximum use<br />
of their Farm advisory & research<br />
services to facilitate the farmer<br />
community, so that farmer economics<br />
reap and feel the accumulated effects<br />
of positivity in Kharif Crops. The MD<br />
FFC also requested the FFC Dealer<br />
network to align themselves in this<br />
noble cause initiated by the<br />
government.<br />
On March 8, the FFBL shareholders<br />
had cleared an investment of up to<br />
Rs 2.55 billion to be made in NPL.<br />
Of the approved amount, the<br />
company has so far invested Rs 2.18<br />
billion in Noon Pakistan. The material<br />
information made Fauji Fertilizer the<br />
fourth most-traded scrip recently at<br />
Pakistan Stock Exchange. Over<br />
10.38 million listed shares of the issue<br />
changed hands, each rising by 4.43<br />
percent to Rs 53.97 from Rs 51.90.<br />
Arhum Ghous of JS Research said<br />
FFBL rallied on the back of the<br />
company's announcement to have<br />
invested in Noon Pakistan.<br />
Trade Chronicle - <strong>May</strong> - <strong>June</strong> <strong>2016</strong> - Page # 40
TRADE CHRONICLE<br />
Aviation & Hotel News<br />
Azam Saigol made PIA<br />
chairman<br />
The government has appointed a<br />
noted industrialist and a member<br />
of the board of directors of<br />
Pakistan International Airlines,<br />
Muhammad Azam Saigol, as<br />
chairman of the national flag<br />
carrier.<br />
The position had been lying<br />
vacant since the previous<br />
chairman, Nasser Jaffer, resigned<br />
amid the controversy resulting<br />
from the countrywide strike by the<br />
airlines’ employees over the<br />
government’s reported<br />
privatisation plans.<br />
The Oxford educated Mr Saigol<br />
is a well known industrialist of the<br />
country, and has a vast experience<br />
in handling big industrial concerns<br />
and corporations.<br />
He has remained on PIA’s board<br />
of directors since 2013.<br />
Mr Saigol is currently the chief<br />
executive of Kohinoor Industries<br />
and Kohinoor Power Company.<br />
He is also serving on the boards<br />
of Pak Elektron and Saritow<br />
Spinning Mills Ltd.<br />
Shaheen Air to expand<br />
operations to Oslo,<br />
Bangkok, Milan &<br />
Shanghai<br />
Shaheen Air International (SAI) is<br />
going to expand its wing to Oslo,<br />
Bangkok, Milan & Shanghai by the<br />
end of 2017. Talking to media Zohaib<br />
Hassan Brand Manager SAI said<br />
Shaheen Air, which was presently<br />
operating to 15 international and<br />
seven domestic destinations with a<br />
fleet of 25 aircraft, was still being<br />
recognised as domestic carrier in the<br />
country, despite being operational for<br />
last 25 years.<br />
In order to remove the said<br />
perception, the SAI was now<br />
focusing on branding to get its due<br />
recognition particularly in the country,<br />
Shaheen Air<br />
receives awards<br />
Shaheen Air International has<br />
received ‘Best Domestic Carrier’ &<br />
‘CEO of the Year’ Awards for the<br />
first time at the 11th Consumer<br />
Choice Award. The event was<br />
organized by the Consumer<br />
Association of Pakistan.<br />
he said. Moreover, he said SAI, which<br />
was planning to expand its wing to<br />
Oslo, Bangkok, Milan & Shanghai by<br />
the end of 2017, would add 10 more<br />
aircraft in its fleet by next year. "SAI<br />
is expanding its horizon in both<br />
domestic and international level with<br />
the aim to reinvest in Pakistan,"<br />
Zohaib quoted as saying. "For the<br />
purpose, SAI is doing Corporate<br />
Social Responsibility (CSR) activities<br />
across the country. We have provided<br />
foods and other stuff during famine<br />
at Thar besides planning to facilitate<br />
under-privileged areas for education<br />
across the country". Replying to a<br />
question, he said SAI had witnessed<br />
200 percent growth during last five<br />
years and airline was striving to be<br />
the 'Pakistani's Best Carrier' in next<br />
five years. Furthermore, he said SAI<br />
was presently operating 48 flights daily<br />
and its annual passengers' traffic was<br />
roaming around 3.5 million.<br />
The award marked the recognition of<br />
those organizations that have made<br />
extraordinary contributions in their<br />
respective fields.<br />
Commenting on the occasion, SAI’s<br />
spokesperson said, “We are delighted<br />
to receive this award. As a corporate<br />
entity, we believe that it is our<br />
responsibility to provide best services<br />
to our consumers.”<br />
Trade Chronicle - <strong>May</strong> - <strong>June</strong> <strong>2016</strong> - Page # 41
TRADE CHRONICLE<br />
Oman Air introduces<br />
new deal this summer<br />
Turkish Air organises B2B contact programme<br />
Oman Air, the National Airline of<br />
Oman is now offering an amazing<br />
deal this summer - buy two tickets<br />
but pay for one.<br />
The booking has already commenced<br />
from <strong>June</strong> 02, and will last till <strong>June</strong><br />
16. Travel is valid from <strong>June</strong> 02 to<br />
July 05, <strong>2016</strong>. Once the tickets have<br />
been purchased, travel should be<br />
completed by July 05, <strong>2016</strong>. This<br />
offer is valid on selected fares and<br />
destinations only and is extended<br />
from Business Class to Economy<br />
Class.<br />
Ken Marshall, Country Manager<br />
Oman Air Pakistan, said, “We believe<br />
in customer satisfaction above all. It<br />
is very important for us to keep our<br />
customers happy and provide them<br />
to travel to a dream destination to<br />
enjoy the holidays. Oman Air pursues<br />
an effective and engaging customer<br />
satisfaction strategy, and such offers<br />
are part of it.”<br />
He further said, “We aim at making<br />
travel easy and affordable for<br />
everyone hence this offer is extended<br />
to Business Class travel as well as<br />
Economy Class travel.<br />
Moreover we also have online<br />
booking services to facilitate our<br />
customer further. Customers can<br />
book their tickets online as per their<br />
preference.”<br />
The first ticket includes full fare<br />
amount coupled with airport taxes<br />
and government taxes. For the<br />
second ticket, only airport and<br />
government taxes are to be paid.<br />
Please note any change of<br />
reservation should be done on both<br />
tickets together.<br />
Turkish Airline has launched a<br />
programme to boost people-topeople<br />
contact between Pakistan<br />
and Turkey by organising a B2B<br />
workshop for<br />
travel agents of<br />
the two<br />
countries, a<br />
statement said<br />
recently.<br />
Representatives<br />
from 23 Turkish<br />
agencies and a<br />
large number of<br />
TAAP (Travel<br />
Agents Association of Pakistan)<br />
members attended the event.<br />
The event was organised in<br />
collaboration with TÜRSAB<br />
(Association of Turkish Travel<br />
Agencies) and TAAP (Travel<br />
Agents Association of<br />
Pakistan),who also signed a<br />
memorandum of understanding<br />
(MoU) at the closing ceremony to<br />
increase the trade potential between<br />
the two countries.<br />
PIA adds five new<br />
destinations<br />
Pakistan International Airlines (PIA)<br />
has entered into code-sharing<br />
agreement with the Etihad Airways<br />
of the United Arab Emirates.<br />
An official of the national flag<br />
carriers said recently that PIA adds<br />
five new destinations, four in<br />
Australia and one in Europe, as part<br />
of its code sharing arrangement with<br />
Etihad Airways.<br />
He said that these stations include<br />
Fatih Atacan Temel, general<br />
manager of the Turkish Airlines,<br />
said that around 80 percent of the<br />
passengers flying from Turkish<br />
Airline use<br />
Turkey as a<br />
transit and not<br />
a destination.<br />
Therefore, they<br />
are striving to<br />
escalate<br />
passengers'<br />
load for Turkey.<br />
Along with<br />
Istanbul,<br />
numerous other cities of Turkey can<br />
be an attraction for tourists.<br />
Sharing his views at the closing<br />
ceremony Consul General of Turkey<br />
Murat Onart said that Turkish<br />
consulate has issued 12,000 visas<br />
last year, which is 20 per cent higher<br />
than the preceding years and in near<br />
future Turkish government is<br />
considering of introducing 'Drop<br />
Box' visa facility for Pakistani<br />
tourists.<br />
Sydney, Perth, Melbourne, Brisbane<br />
and Zurich.<br />
Airlines sign such code sharing<br />
agreements for those destinations<br />
where they do not operate allowing<br />
passengers to travel on their tickets.<br />
An year ago, in <strong>June</strong> 2015, PIA had<br />
signed code sharing agreement with<br />
Etihad Airways for several<br />
destinations in Europe, North<br />
America, Eastern Africa and Middle<br />
East including Rome, Madrid, Athens,<br />
Amsterdam, Frankfurt, Washington,<br />
Chicago, Dallas, Los Angeles, San<br />
Francisco, Nairobi and Amman.<br />
Trade Chronicle - <strong>May</strong> - <strong>June</strong> <strong>2016</strong> - Page # 42