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www.tradechronicle.com TRADE CHRONICLE Vol 68 -Issue Nos. 5 & 6 - May - Jun. 2021 Rs. 250/-
ESTABLISHED IN MARCH 1953
68 th - YEAR OF PUBLICATION
TRADE CHRONICLE
PAKISTAN OLDEST MONTHLY MAGAZINE OF COMMERCE, TRADE, INDUSTRY & PUBLIC AFFAIRS
Our prime objective is
to revive our economy
and steer Pakistan onto
the path of becoming a
stronger economy
Federal Budget 2021-22
has mixed incentives for
industries
Finance Minister
Shaukat Fayyaz Ahmed Tarin, presenting
Federal Budget 2020-21, in Parliament on June 11.
Provinces Budget
Finance Minister
Hashim Jawan Bakht
presenting Punjab budget
Chief Minister
Syed Murad Ali Shah
presenting Sindh budget
Finance Minister
Taimur Saleem Khan Jhagra
presenting KPK budget
Finance Minister
Zahoor Ahmed Buledi
presenting Balochistan budget
• Tariq Glass Industries continues
• General Tyre evolves to reiterate
to expand its production capacity
its market leadership through
in Pakistan TRADE CHRONICLE - May - Jun - 2021 - Page # technological advancements
MG
TRADE CHRONICLE
TRADE CHRONICLE
TRADE CHRONICLE - May - Jun - 2021 - Page #
TRADE CHRONICLE
www.tradechronicle.com Vol. 68 Issue Nos. 5 & 6 May - Jun 2021 Rs. 250/-
TRADE CHRONICLE
PAKISTAN OLDEST MONTHLY MAGAZINE OF COMMERCE, TRADE, INDUSTRY & PUBLIC AFFAIRS
Circulation Audited by
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CONTENTS
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editorial
• Bird’s eye view on the Federal Budget 2021-22
• The Paper & Paperboard industry urges rationalization of import tariff
article & feature
• A joint statement issued on the successful visit of PM Imran Khan to KSA
• Pakistan and China celebrate 70 years of friendship
By Mustafa H Sayed
• Federal Budget 2021-22 has mixed incentives for industries
A Chronicle Report
• Balochistan presents Rs584.1bn budget
• Punjab government presents Rs2.65 trillion budget for 2021-22
• The Sindh government presents Rs1.48trn budget for the province
• KPK unveiled a Rs1.118 trillion budget for the fiscal year 2021-22
• A Pragmatic view of Pakistan’s budget 2021-22
By Dr. Muhammad Nawaz Iqbal
• Salient feature of Pakistan Economic Survey FY21
• Tariq Glass Industries continues to expand its production capacity in Pakistan
A Chronicle Report
• RCET policy helps in boosting textile export in Pakistan
By Saddam Hussein
leather industry
• leather exports from Pakistan continue to decline in 9MFY21
• Bangladesh leather industry sees significant growth despite the negative impact
of Covid 19
• Indian leather exports continue to contract in outgoing fiscal year FY21
• Federal Budget FY22 offers cheap raw materials for the footwear industry in
Pakistan
ports & Shipping
• Tariq Haleem hails the appointment of Mahmood Moulvi as Special Assistant to
PM for Maritime Affairs
• Shipping agents seek amendments to trans-shipment rules
• ‘PQA’s reserve fund crosses $700mln’
• New shipping service commences regular calling at Hutchison Ports Pakistan
• Anomalies in clearance process: APCAA suggests amendments in budget measures:
chairman
• ZODIAC Terminal Operating System delivers upgrades to Aden Container Terminal
regular features
• Automobile News, Banking & Insurance News, Cement Industry,
• People Events, Telecommunication News, Travel World, Steel & Allied Industry
TRADE CHRONICLE - Mar - Apr - 2021 - Page # 5
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We begin with the name of Allah the Magnificient
Bird’s eye view on the Federal Budget 2021-22
The Finance Minister, Mr Shaukat Tarin, presented the third budget on behalf of
the government of Pakistan Tehreeke Insaf (PTI) or Pakistan Justice Movement
for Fiscal Year July 1, 2021, to June 30, 2022, amidst the usual uproar by the
opposition parties against budget speech at the Parliament in Islamabad on June
11. The total outlay is set at Pakistani Rupees 8.5 trillion and the growth target
at 4.8% of Gross Domestic Product (GDP). It may not be easy to encompass the
whole budget in a short note, nor we claim to be top economic experts, except
to write on some fundamental matters on the budget, which had already been
debated in media.
FROM THE
EDITOR’S
DESK
Also, renowned experts have challenged a high income envisaged in the budget
to be unrealistic and unachievable, with shortfalls expected in meeting the set
budgetary targets. They may result in a series of deficits in many fields, prompting
a series of undesirable amendments in the budget disagreed by the business
community in general.
For example, the budget shows ‘Tax Revenue (by Federal Bureau of Revenue or
FBR) of Pak Rs 5,829 billion’ whereas, until May 29, 2021, the FBR had collected
Rs 4,143 billion in 11 months. That means the FBR may end up collecting around
Rs4,500 billion this year. How can the FBR collect a wholesome 30 per cent more
next year? If the FBR collects 15 per cent more next year, it will come to Rs5,000
billion or so. That would leave a gap of Rs800 billion – a serious question raised
by economic experts. If the set target could not be achieved, it would either open
the door for levy of new taxes, cut in subsidies and lesser funds for development
projects and soft borrowing of huge loans from friendly countries, etc., we believe.
However, contrary to the above remarks, this budget’s concrete recommendations
this year 2021-22 align with next year’s growth projections. The government rolled
out necessary relief measures for several sectors, observed research houses in
their initial impressions and termed fiscal measures positive for the industries.
ABDUL RAB SIDDIQI
One eye-catching relief proposal in the Finance Bill 2021-22 was a series of
incentives for the auto industry - reducing FED and GST for locally assembled
ICE/regular cars (up to 850cc). Later, the finance minister announced that the
incentives would cover passenger cars up to 1,000cc engine displacement.
First, however, a robust mechanism is required to check and balance car prices
because manufacturers jack up prices in the disguise of dollar vs rupee parity.
On a negative note, some industries published appeals in the local media, pointing
to ignorance of some related budget recommendations they believed went
against their ambitions. The oil refineries, dairy sector, larger steel producers,
tea importers, cement manufacturers and a few more sectors, institutions and
industries were unhappy with the finance bill suggestions. Many demanded
removing anomalies and aggressive tax measures and withdrawal of incentives
given to remote areas. They also demanded the withdrawal of concessions for
setting up industry in Federally Administered Tribal Areas (FATA) and Provincially
Administered Tribal Areas (PATA).
Meanwhile, addressing a post-budget press conference, the Federation of
Pakistan Chambers of Commerce & Industry (FPCCI) and several other chambers
have vehemently rejected section 203A that authorizes a tax officer to arrest a
taxpayer. “This will increase harassment, bribery and blackmail,” the chambers,
constituting the organized economic lifeline of Pakistan, remarked. In addition,
TRADE CHRONICLE - May - Jun - 2021 - Page # 6
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the clause of mandatory invoice
in the imported containers and
the banning of smuggled goods
in shops – also becomes the
bone of contention between
the government and people in
business.
Later, some adjustments were
made in finance bills after the
widespread criticism in public/
industrialists. The Federal Finance
Minister Shaukat Tarin fine-tuned
the budget and clarified that there
would be no tax on internet usage
and SMS. However, 75 paise
would be collected in tax for every
mobile phone call exceeding five
minutes. In addition, he said, the
tax on milk had been removed, and
17 per cent tax on gold and silver
was being reduced to one per cent
and three per cent, respectively.
However, he added that the 17 per
cent tax would remain in place for
the value addition of the metals.
Likewise, Tarin said, the tax on
poultry products and cattle feed
The Paper & Paperboard industry
urges rationalization of import tariff
Pakistan has the highest tax
on paper globally and one of
the lowest literacy rates. The
Pakistan Association of Printing
& Graphic Industry (PAPGAI) and
the All Pakistan Paper Merchants
Association (APPMA) have
urged the government to reduce
customs duty and rationalize
the import tariffs on paper and
paperboard. A cursory look at
import and production data of PBS
reveals that paper & paperboard
& manufacturing consumption
is increasing in Pakistan,
besides a significant amount of
foreign exchange spent on its
import. Therefore, we think the
sector needs the government’s
exceptional attention to make its
trade cheaper and increase its
local production.
The import of paper & paperboard
saw a growth of 9.18 % in dollar
value and 8.66% in quantity
during the first eleven months of
was being reduced from 17 per
cent to 10 per cent, and the tax on
textile products for retailers had
been decreased from 12 per cent
to 10 per cent. He further clarified
that no tax was imposed on wheat
and wheat byproducts. These
revisions in tax proposals would
bring down the rising inflation, we
believe.
He further announced that taxes
initially imposed on IT and
e-commerce platforms had been
withdrawn, a widely welcomed
decision. He added that the income
tax, which was increased to 35
per cent under the construction
package, had been reduced to 20
per cent.
Tarin said Pakistan was facing
major structural issues in the
power sector. The government had
to pay Rs900 billion on account of
capacity payments for electricity
that was not being utilized. To
overcome this, the donor agency
the outgoing financial
year 22021. However,
in Pak rupees, the
imports account for
a growth of 11.47% due to the
depreciation of rupees against the
dollar during this period of July
–May 2021. Pakistan imported
438,655 tonnes of paper and
paperboard at USD 400 million
against 403,697 tonnes at $ 364
million in FY21.
The growth was also observed in
the local production of paper and
paperboard as it reached 616,467
tonnes, a nominal gain of 1.92
% YoY basis but commentable,
we consider. A valid suggestion
from stakeholders to reduce
customs duty on paper produce
in Pakistan to 10% and that paper
not produced in Pakistan should
have 5% duty. Due to the unlimited
continuation of abnormal tariffs,
printed materials including books,
catalogues, packing materials,
literary materials etc. are imported
at 3% customs duty; whereas, the
paper and paperboard (H.S code
had asked to raise the power
tariff. But the prime minister had
been committed that there would
be no increase in the electric
rates. He assured that the circular
debt would begin to decrease
in the coming year as measures
were taken to reduce losses and
increase the recoveries of bills – a
sigh of relief for the stakeholders.
We hope that, as a viable solution
to achieve the high income
suggested in the budget and to meet
expenditures without progresshalting
deficits, the government
would speed up the Privatization
programme to complete the set
targets, including PKR 252 billion.
The other challenges would be
to meet power sector circular
debt, high inflation, makeup job
losses in the aftermath of Covid,
balance commodity operations,
and successful negotiation
with the IMF. Last but not least,
procurement of Vaccines for every
Pakistani.
4802 & 4810) imported by the
printing and packaging industry is
charged with 27 % customs duty
as well as anti-dumping duty.
The continuation of an unbalanced
tariff and the fact that other
regional countries have managed
to establish equally well-organized
printing units has led to increasing
imports of books -- including Urdu
books prescribed in Pakistan’s
schools and colleges -- from
Malaysia, Singapore, Indonesia,
and China, which were once
printed locally.
International printing industries
derive benefits of $ 900 billion
markets, essentially consumed by
Singapore, Malaysia, China and
UAE; even though our printing
industry is far cheaper but heavy
customs duty, additional customs
duty and anomalous taxes are the
major factors that confined and
kept us behind without effective
entry into the $900 billion export
market – a well-presented plea, we
think.
TRADE CHRONICLE - May - Jun - 2021 - Page # 7
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A joint statement issued on the
successful visit of PM Imran Khan to KSA
The following is the joint statement
issued on the visit of the Prime Minister
of Pakistan Imran Khan to the Kingdom
of Saudi Arabia (KSA):
On the kind invitation, extended by
His Royal Highness, Crown Prince,
Deputy Prime Minister and Minister
of Defence, the Prime Minister of the
Islamic Republic of Pakistan, His
Excellency Mr. Imran Khan paid an
official visit to the Kingdom of Saudi
Arabia on 7-9 May 2021, corresponding
to 25-27 Ramadan 1442/AH. His
Royal Highness, the Crown Prince,
warmly welcomed the Prime Minister of
Pakistan.
The two leaders reaffirmed the
historical and fraternal ties between
the Kingdom of Saudi Arabia and the
Islamic Republic of Pakistan, reviewed
all facets of bilateral cooperation
and discussed regional and
international issues of mutual
interest. The two sides discussed
ways to strengthen relations of
the two brotherly countries in all
fields, and agreed to intensify
contacts and cooperation
between government officials
and the private sector in the
two countries with the aim of
promoting bilateral relations to
the benefit of both countries.
His Excellency Prime Minister
Imran Khan praised the leadership
role of the Custodian of the Two Holy
Mosques King Salman bin Abdulaziz
Al Saud in promoting Islamic unity,
and the positive role of the Kingdom in
resolving the issues facing the Islamic
world, as well as its endeavours for
regional and international peace and
security.
The Prime Minister recalled his visits
to the Kingdom in 2018 and 2019, as
well as the historic visit of His Royal
Highness, the Crown Prince, Deputy
Prime Minister, Minister of Defence
to Pakistan in February 2019, during
which the two leaders jointly announced
the launch of the Saudi-Pakistan
Supreme Coordination Council, to
further enhance bilateral cooperation
based on mutual trust, benefits and
common interests of the two countries.
The Crown Prince assured the Prime
Minister of the Kingdom’s continued
s u p p o r t
to Prime
Minister’s
vision to
transform Pakistan into a modern
developed and welfare state.
The two sides discussed ways to
strengthen and enhance economic and
trade relations by exploring areas of
investment and opportunities available
in light of the Kingdom’s 2030 vision
and Pakistan’s development priorities
emanating from a shift from geo-politics
to geo-economics. The discussions also
focused on increasing cooperation in
other fields, including energy, science,
technology, agriculture and culture.
Both sides expressed satisfaction at
existing cooperation in bilateral military
and security relations, and agreed
to further augment collaboration and
cooperation to achieve mutually agreed
goals.
The two leaders also discussed
issues pertaining to the Islamic
world. They stressed the need for
concerted efforts by the Muslim
countries to confront extremism and
violence, reject sectarianism, and
strive to achieve international peace
and security. They also stressed the
importance of continuing joint efforts
to combat terrorism, in all its forms and
manifestations. They reaffirmed that
terrorism cannot and should not be
associated with any religion, nationality,
civilization, or ethnic group.
In the constructive spirit of discussions,
the two sides reaffirmed their full
support for all the legitimate rights
of the Palestinian people, especially,
their right to self-determination and
establishment of their independent
state with pre-1967 borders and East
Jerusalem as its capital, in accordance
with the Arab Peace Initiative and
relevant UN resolutions. They also
expressed their support for political
solutions in Syria and Libya, as well as
the efforts of the United Nations and its
envoys in this regard.
The two sides also stressed the
importance of supporting efforts to
reach a comprehensive political solution
to the conflict in Yemen based on the
Gulf Initiative and its implementation
mechanism, the outcomes of the
comprehensive national dialogue,
and the relevant Security Council
resolutions, including Resolution
(2216). They condemned the attacks of
terrorist groups and militias, including
Houthi militias, by ballistic missiles and
drones on the territory of the Kingdom of
Saudi Arabia against vital installations
and civilian objects. They expressed
serious concern at the threats posed
to the security of oil exports and the
stability of energy supplies, which
was vital for the progress and
development of the region and
its peoples. The Prime Minister
praised the role of Kingdom of
Saudi Arabia for the resolution
of crisis in Yemen which aims
at achieving peace and security
in Yemen which will result in
prosperity and development of
the region and its people.
Discussing the situation in
Afghanistan, the Crown Prince
acknowledged Pakistan’s
facilitative role in the Afghan
peace process. The two sides,
underlining that an inclusive, broadbased
and comprehensive political
settlement is the only way forward,
urged the Afghan parties to realize
the historic opportunity for achieving a
political settlement in Afghanistan. The
two leaders agreed to continue mutual
consultations on the Afghan peace
process.
Pakistan and Saudi Arabia agreed
to continue supporting each other at
multilateral fora. They agreed to further
deepen coordination and cooperation
to safeguard mutual interests and
uphold the principles of fairness and
justice. The two sides also stressed
the importance of the commitment
by all States to the United Nations
Charter, the principles and decisions
of international legitimacy, as well as
adherence to the principles of good
neighbourly relations, respect for the
Contuined on page # 16
TRADE CHRONICLE - May - Jun - 2021 - Page # 9
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Pakistan and China celebrate
70 years of friendship
By Mustafa H Sayed
Pakistan and China will today – May
21 – celebrate 70 years of what has
been a model bilateral relationship.
The Pakistan-China relationship has
been re-enforced by a consistent policy
of Pakistan towards China, regardless
of who is in power, supporting China
on its key international issues and
core interests such as Taiwan, Tibet,
Xinjiang, Hong Kong and South China
Sea.
Similarly, China has been Pakistan’s
voice in the Security Council, supporting
Pakistan’s position on Indian Occupied
Kashmir, as well as on Pakistan’s fight
against terrorism, core interests in
Afghanistan, and more recently in the
fight against the Covid-19 pandemic.
By making CPEC the flagship project
of the BRI, China gave a vote of
confidence in Pakistan’s economy
by investing a mammoth $62 billion.
While there is much to celebrate in
the ‘all-weather friendship’ between
the two countries, it is also an
opportune moment to pause and
reflect on how this relationship can
be optimized, and how the next
decades should (or could) look like
for Pakistan.
Since the start of CPEC in 2013,
Pakistan has received investments
in roads, energy, the Gwadar Port
– as well as grants in the socioeconomic
sphere that involve clean
water, vocational training institutes and
hospitals. Moving forward, Pakistan
should use CPEC as an opportunity
to: i) undertake ‘targeted’ poverty
alleviation using China’s experience
and expertise; ii) make the CPEC’s
Rashakai and Allama Iqbal SEZs in
Khyber Pakhtunkhwa and Faisalabad,
respectively, a resounding success by
courting top Chinese manufacturers
looking to relocate their industry to
consider both; and iii) negotiate and
prepare for better market access to
China whose economy is now 18.34
percent of Global Gross Domestic
Product.
Pakistan’s youth bulge is ballooning,
with 65 percent of our approximately
220 million population under the age
of 35. As per some estimates, the
Covid-19 pandemic has brought 87
million into poverty. ‘Targeted’
Poverty Alleviation, popularly
known in China as Jin Zhun Fu
Pin, identifies poverty-stricken
villages, conceives appropriate
projects mostly related to housing
and infrastructure, and proceeds with
efficient implementation of the same.
The strategy also involves identifying,
more specifically, what are called
“poverty households”, which are
essentially poor households without
any special policies or subsidies being
catered to them. Pakistan’s Ehsaas
Programme should engage and work
with China’s State Council Leading
Group Office of Poverty Alleviation
and Development to create a five-year
plan for Pakistan’s ‘Targeted’ Poverty
Alleviation Strategy.
The Rashakai SEZ has received 1,998
applications for industrial plots, while
companies such as Century Steel of
China are in the process of relocating to
Rashakai; the company had requested
the State Bank of Pakistan to provide
approval for import of machinery from
its parent company in China, which was
later given. The issue of exemption of
custom duty for import machinery has
still not been finalized, which would
be a crucial incentive for investors. As
of now, this policy will be applied on a
case-to-case basis, not as a uniform
policy for all investors wishing to invest
in these SEZs.
When China created SEZs, some
of them took off, and some of them
did not. For example, in 1979-80, the
SEZ established in Xiamen’s Fujian
province was more successful than
that established in 1985 in Hainan. It
is important for Pakistan to understand
that the governance of SEZs is a
nuanced exercise, and cannot be done
by a government official or a locally
recruited management professional;
the entity or individual that governs the
SEZ must have prior experience in SEZ
governance.
While the Board of Investment and
its affiliated agencies have given
incentives for foreign investors, we
still do not have an actual one-window
where investors can receive a one-stop
shop solution. We also must understand
that Pakistan is one of many countries
competing for investment from top
Chinese companies that are looking
to relocate manufacturing bases to
countries with lower costs of production.
Apart from being an ‘all weather friend’
of China, what commercial competitive
advantages do we offer that, for
example, Bangladesh or Cambodia
cannot match? We must make sure
that these SEZs, like any lucrative land,
do not become trading/speculative
grounds of prime real estate, which
may make money for local companies,
but would make the concept of an SEZ
futile.
After the signing of the China-Pakistan
Free Trade Agreement II, Pakistani
exporters have more access to the
$2 trillion Chinese market. Nearly 40
percent of the CPFA II products that
China imports have seen lowering of
tariff barriers, 401 Pakistani products
for which there is a market in China
can now be exported to China.
In total, 724 Pakistani products
have zero import duties in China.
However, Pakistan’s export volume
to China in 2020’s fiscal year was all
of $1.87 billion. China has lowered its
tariff barriers for 603 out of the 1,436
products listed in Priority Products II of
the CPFTA II, which are lower than that
extended to the likes of Japan, South
Korea, US, Australia and Germany for
the same products.
The government’s pivot to ‘economic
diplomacy’ should begin with China,
which is the world’s biggest market and
,fortunately for Pakistan, a neighbor
and close partner. The opportunity
that China presents to Pakistan has
to be addressed through a collective
and coordinated effort and action of
business groups like the Pakistan
Business Council, relevant government
agencies such as the Ministry of
Commerce and CPEC Authority, and
think-tanks. This is a good opportunity
to prove wrong the idea that: ‘Pakistan
never misses an opportunity to miss an
opportunity’.
The writer is the executive director of
the Pakistan-China Institute.
TRADE CHRONICLE - May - Jun - 2021 - Page # 10
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Federal Budget 2021-22 has mixed
incentives for industries
A Chronicle Report
The Finance Minister, Mr. Shaukat
Tarin, presented the Federal Budget
FY 2021-22 in the Parliament on
June 11. According to his speech,
the government proposed a Rs 8.495
trillion spending-led outlay for the fiscal
year 2021-22 designed to achieve six
to seven percent GDP growth in the
next two to three years and 4.8 percent
for FY2021-22 by facilitating auto,
telecom, agriculture as well small and
medium enterprises for job creation.
The Finance Minister, in his budget
speech, came down hard on the
economic policies of the previous
governments and stated that Prime
Minister Imran Khan helped the country
avert a default and put it back on the
economic growth of 3.4 percent in the
outgoing (current) fiscal year.
The number of reaseach
houses expressed
their initial impression
on the budget with
healthy remarks. They
unanimously termed
the projected growthoriented
as significantly
increasing subsidies and
incentives for big business,
manufacturing, corporate
market and agriculture
sectors and proposing
about 24 per cent hike in
revenues, including Rs506bn worth of
additional measures.
Some salient features of the budget
are as follows:
▪ National PSDP outlay set at PKR
2,102Bn (Federal; PKR 900Bn,
Provincial; 1,202Bn), up by 36% YoY.
▪ The government expects large scale
manufacturing to grow by 6.0% in FY
2021-22.
▪ The government has set a debt
repayment target of PKR 3,060Bn for
FY 2021-22.
▪ The government has set NFC
distribution target of PKR 3,411Bn for
FY 2021-22, up PKR
707Bn / 25% YoY.
at PKR 5.8Trn for FY 2021-
22 compared to
PKR 4.7Trn in FY21.
▪ Subsidies target of PKR 530Bn for FY
2021-22.
▪ The government is eyeing total
revenue collection of PKR 7,909Bn for
FY 2021-22 of
which PKR 5,829Bn pertains to tax
revenue while the remainder (PKR
2,080Bn) relates to non-tax revenue.
▪ The government has allocated PKR
260Bn for Ehsaas programme.
▪ No change in tax rates for salaried
class individuals.
▪ Government to provide interest-free
loans of up to PKR 500,000 to the less
privileged.
▪ Turnover tax ceiling for small business
raised from PKR 3Mn to PKR 10Mn.
▪ Capital Gain Tax on disposal of
securities is reduced to 12.5%.
▪ 10% increase in pension for retired
employees.
▪ The minimum wage increased to PKR
20k per month.
▪ USD 1.1Bn allocated for vaccination
drive, 100Mn vaccination target by Jun-
22.
▪ 12 types of WHT’s abolished including
PSX, Margin financing, banking
transactions, air travel.
Sector-wise Proposals
Capital Markets (Positive):
12.5%
▪ 12 types of WHT’s abolished including
PSX, Margin financing, banking
transactions, air travel.
Cement (Positive)
▪ PKR 2Mn loans allocated for low cost
housing schemes applicable to people
below age 30.
▪ New Pakistan Housing Authority has
been made. Low income people will get
PKR 300,000
subsidy with a low mark-up on loan.
Until now applications of PKR 100Bn
worth has been
received by the banks.
▪ PSDP has been increased from PKR
630Bn to PKR 900Bn.
▪ Relating to the constructions of dams
and water preservation,
PKR 91Bn have been
allocated out of which PKR
57Bn, PKR 23Bn, PKR
6Bn and PKR 5Bn are
assigned for Dasu hydro
power project, Daimer
Bhasha dam, Mohmand
dam and Neelum Jhelum,
respectively.
Steel (Positive):
▪ Steel and alloy custom duty removed.
I.T Telecommunication sector (Neutral
to Positive):
▪ Telecom sector to be given the status
of an industry.
▪ FED on telecommunication to be
reduced from 17% to 16%.
▪ Special Technology zones will
be introduced and import of plant,
machinery and raw material in those
zones are proposed to be exempted by
sales tax.
▪ WHT of mobile phones decreased
from 12.5% to 10%.
▪ Turnover tax abolished for SEZ’s and
10-year tax holiday for STEZ’s (special
technology economic zone)
▪ FBR tax collection target has been set
▪ CGT on PSX reduced from 15% to
▪ To promote IT sector, it is proposed
TRADE CHRONICLE - May - Jun - 2021 - Page # 11
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that the export of services may be zerorated.
Pharmaceuticals (Positive):
▪ Custom duty on 350 APIs abolished.
Chemical (Positive):
▪ The rate of sales tax on potassium
chlorate is proposed to be increased
from Rs. 80 per kg
to Rs. 90 per kg in addition to 17%
standard sales tax rate.
▪ Reduction if CD/ACD on raw materials
for paint industry.
Banks (Positive)
▪ Govt has proposed removal of WHT
on Banking Transactions.
Real Estate (Positive):
▪ Reduction of block taxation on
capital gains on disposal of immovable
properties if gain
exceeds Rs. 20Mn.
Automobile (Neutral):
▪ Small cars up to engine capacity of
850cc to be exempt from value added
tax besides reduction in sales tax rate
from 17% to 12.5%.
▪ Exemption from VAT on import of
electric vehicles, CKD kits for small car,
2-3 wheelers,
HCVs and all these vehicles in CBU
conditions.
▪ PKR 0.2Mn subsidy announced for
tractors.
▪ Income from ‘On’ money on vehicles
will be taxed.
Power (Neutral to Positive):
▪ Power sector subsidy allocated at
PKR 118Bn.
▪ Measures to control Circular Debt
to be implemented in the next two
years, which include controlling line
losses, increasing renewable energy
and restructuring of private power debt
among others.
Agriculture and Fertilizer (Positive):
▪ The government has set aside PKR
12Bn for food security.
▪ The government will provide up to PKR
200,000 interest-free loan to farmers to
purchase tractor and machinery.
▪ Exemption from tax on import of
agricultural equipment.
Refinery (Positive):
▪ Zero-rating is proposed to be
withdrawn from Petroleum Crude Oil,
parts/components of
zero-rated plant and machinery, import
of plant and machinery by petroleum
and gas sector and supply, repair and
maintenance of ships.
▪ Exemption from tax on income of
deep conversion new refineries and
BMR projects of existing refineries for
10 years.
Consumer/Food (Neutral to Positive)
▪ Reduction of duties on raw material/
inputs of the footwear industry.
▪ Reduction/exemption of CD & ACD on
inputs for the poultry industry.
▪ Dairy industry tax reduced.
▪ Sales tax on sugar is proposed.
▪ Reduction/exemption of CD/ACD on
inputs for the electronic manufacturing
industry
(Courtesy- BMA Capital)
Balochistan presents
Rs584.1bn budget
The Balochistan government has
proposed an Rs584.1 billion budget for
the next fiscal year that carries a hefty
development stimulus of Rs237.2bn
and resource shortfall of Rs84.6bn amid
rare violent protest by the opposition.
Presenting the budget, Finance
Minister Zahoor Ahmed Buledi said
the government was presenting a
`balanced budget` that focused on the
development of the province in spite
of serious financial difficulties. He said
the next year`s spending plan aimed at
inclusive growth and development of
backward areas.
Balochistan is expecting federal
transfers of Rs355.9bn, provincial own
tax and nontax receipts of Rs103.2bn,
cash carryover of Rs15.5bn and foreign
project the assistance of Rs17.3bn to
finance its total current and development
expenditure of Rs584.1bn. Thus,
the province is facing a resource
shortfall of Rs84.6bn for its Annual
Development Programme, which it
will have to fill either through savings
on the current revenue expenditure
size or by slashing its development
spending like the outgoing year. The
provincial government had allocated
Rs156.5bn for development during
the ongoing financial year, which has
been revised downwards to Rs104.6bn
due to resource shortfall of Rs87.6bn
indicated in the budget.
The budget boosts health expenditure
at Rs38.5bn against current year`s
estimates of Rs31.4bn. The education
expenditure has been increased
marginally to Rs71.9bn from Rs70.3bn
while the allocation for social protection
has been doubled to Rs10.7bn. A
sum of Rs3.6bn has been set aside
for combating the Covid-19 pandemic
in the province. The finance minister
announced that 5,854 government jobs
would be created, health insurance
cards scheme would be launched
to provide free healthcare of up to
Rs1 million a year to 1.9m families,
100 middle schools would be built,
a food security revolving fund would
be launched and emergency centres
would be established on highways.
He also announced several initiatives
for the fishermen, youth, minorities,
women, destitute people and students.
The minister also announced a 10pc
increase in pay and pension of the
provincial government employees in
line with the federal government`s
decision.
TRADE CHRONICLE - May - Jun - 2021 - Page # 12
TRADE CHRONICLE
Punjab government presents Rs2.65
trillion budget for 2021-22
Punjab Finance Minister Hashim Jawan
Bakht presented the budget for the
fiscal year 2021-22 with an estimated
outlay of Rs 2,653 billion which is 18
percent more than the current fiscal
year’s budget and
The government expected to get Rs
5,829 billion from the federal Divisible
Pool and is expected to get Rs 1,684
billion from the National Finance
Commission Award, which is 18
percent more than the current fiscal
year’s allocation.
In his speech, Hashim said a target
of Rs 405 billion had been set for
provincial tax collection, which is 28
percent more than the current fiscal
year. The current expenditure estimates
in the budget is around Rs 1,428 billion.
The government has increased the
development budget by 66 percent,
which shows that it is committed to
bringing economic prosperity to the
province. He said the government
allocated Rs 189 billion for the South
Punjab, which is 34 percent of the total
The Sindh government presents
Rs1.48trn budget for the province
The Sindh government on June 15
presented Rs1.477 trillion budget for
the financial year 2021-22 with an
estimated deficit of Rs25.738 billion.
However, the Sindh government didn’t
introduce any new tax in the budget,
whereas it proposed 20 percent
increase in the salaries of government
employees and 10 percent rise in
pensions. The provincial government
also proposed the minimum wage
at Rs.25,000 against the existing
Rs17,500, in the new fiscal year.
annual development
budget of Punjab.
The government has
allocated Rs 12 billion
for the development of the industrial
sector and more than Rs 28 billion for
Lahore, considering its importance as a
business hub, he added.
He also said that the health and
education sector is the priority of the
government as it has allocated Rs
370 billion for the health sector. The
government has allocated Rs 96 billion
for development budget of the health
sector, which is 182 % more than the
current fiscal year, and it is initiating
universal health insurance program
with the allocation of Rs 82 billion.
Under this program, 100% population
of Punjab will get free and quality
health services. It is expected that
government will issue health cards to
110 million people of the province.
Moreover, the minister said, the
government has allocated Rs 442
billion for the education sector, which
is Rs 51 billion more than the current
year, and more than Rs 54 billion has
been earmarked for the development
budget while Rs 388 billion has been
allocated for
the current
expenditure.
More than
Rs 6 for the
up-gradation
of schools
and Rs 23
billion for the
schools run
by Punjab
Education
Foundation
and Punjab
Terming it a ‘citizens
budget,’ Sindh Chief
Minister Syed Murad Ali
Shah announced that the
total budget outlay for Financial Year
2021-22 is estimated at Rs1.477 trillion
against a budget estimate Rs1.241
trillion for the current FY, showing an
overall increase of 19 percent.
The current expenditure of the province
has been projected at Rs.1.14 trillion,
which includes a current revenue
expenditure of Rs.1.089 trillion and
current capital expenditure of Rs.59.49
billion in the budget. “This is 78% of
the total expenditure of the province
Education Initiative Management
Authority billion has been reserved.
The government has allocated Rs 15
billion for higher education which is
285% more than the current fiscal year.
In order to ensure food security and
increase agricultural productivity, the
minister added, the government has
made a whopping increase of over
300% in the agriculture development
projects. It allocated more than Rs31
billion for the agriculture transformation
and Rs 100 billion for Agriculture
Transmission Plan. Moreover, Rs
55 billion has been set aside for the
irrigation sector.
For livestock and dairy development
projects, Rs5 billion have been
allocated, and for the improvement
of watercourses, Rs5 billion have
been earmarked. For environmental
protection, an allocation of Rs4 billion
has been made, out of which Rs2.5
billion will go to the Prime Minister’s
flagship 10 billion tree tsunami project.
The government has earmarked Rs 380
billion for the construction, repair and
expansion of roads in the province. In
order to provide relief to the taxpayers
and revival of business, the government
has proposed tax concessions of Rs
50 billion. There will be no change
in the rate of stamp duty, and it will
remain 1% only. The ratio of sales
tax on services will remain 5%. The
government has proposed a reduction
of the tax ratio on call centres from 19
% to 16 %. The government has also
proposed a 10% increase in salaries
and pension of provincial employees
besides increasing the minimum wage
of workers from Rs17,500 to Rs20,000.
(Courtesy – Business recorder)
and shows an increase of 14%
overestimates of Rs.1 trillion for last
year,” Shah said.
The development expenditure of
the province in the budget has been
proposed at Rs.329.032 billion, which
include Rs.222.5 billion for Provincial
ADP and Rs.30.0 billion for Districts
ADP, foreign project the assistance of
Rs.71.16 billion and Rs.5.4 billion from
Federal PSDP Grant for schemes being
executed by the Government of Sindh.,
The Chief Minister said that a 20%
increase had been proposed for the
government employees and a 10% rise
TRADE CHRONICLE - May - Jun - 2021 - Page # 13
TRADE CHRONICLE
in pensions of the retired government
workers had been proposed. He said
the minimum salary of the laborers
would be increased from Rs17,500 to
Rs25,000.
Chief Minister said that health
remains a priority sector, and for the
next financial year, an allocation of
Rs.172 billion is proposed as against
a budget of Rs.132.88 billion in 2020-
21.
The budget for education in the next
budget has been proposed Rs.277.5
billion against Rs.244.5 billion in the
current fiscal.
Murad Shah announced that
budget estimates for the current
revenue expenditure of the Energy
Department are estimated at 23.26
billion, which includes Rs.21 billion for
clearance of outstanding liabilities of
electricity dues of various government
departments pertaining to DISCOs
KPK unveiled a Rs1.118 trillion budget
for the fiscal year 2021-22
The Khyber Pakhtunkhwa
Government’s Minister for Finance
Taimur Saleem Jhagra presented a
Rs1.118 trillion budget for the fiscal
year 2021-22 (21 per cent higher than
current year`s Rs923bn) with a record
development outlay of Rs371 billion to
mitigate the impact of Covid-19 and
boost economic development.
Revenue estimates showed that the
province would receive Rs559bn from
the federal divisible pool, Rs74.5bn
net hydel profit on hydroelectricity
produced in the province and Rs75bn
own revenue. The Centre would
provide Rs187.7bn in lieu of federal
grants for merged districts with a
transfer of Rs34.6bn from the divisible
such as KE, Hesco and Sepco.
He said that to exploit Thar coal
potential, Sindh had requested the
Federal Government to consider
progressing on Kati Bandar Project and
laying a railway line from Islamkot to
Mirpurkhas for coal logistics. The two
approaches are essential as industrial
expansion in Thar is challenged by
extreme weather conditions and water
Rs89.2bn.
pool at Rs34.6bn.
Foreign assistance for
development projects
has been pitched at
Expenditure estimates showed that
salaries of government employees and
pensions would cost the province a
whopping Rs466bn.
The development outlay of Rs371bn
has proposed a provincial component
of Rs150bn and Rs24bn for merged
districts. District ADP for settled parts
of the province has been pitched at
Rs15bn and that for merged districts at
Rs2.4bn.
The donor-funded projects have been
pitched at Rs89bn.
He said the government had set the
minimum
wage at
Rs21,000
a month for
labourers,
w h i l e
Rs10bn each
has been
allocated
for wheat
subsidy and
provision of
food basket
for poor.
availability.
The Chief Minister said that Rs.78
billion is earmarked for local councils in
Sindh during the current financial year.
For the next financial year allocation of
Rs.82 billion has been proposed.
He stated that the Government
of Sindh provided Rs.4.02 billion
as a relief grant and distributed
compensation to the victims of
monsoon during CFY. For 2021-22,
an allocation of Rs.500 million has
been kept for various relief measures.
Shah stated and desired to work in
close coordination with the Federal
Government in the immense interest
of the people of Pakistan to overcome
these issues. “We expect that the
Federal Government would also
support us in all our endeavours and
help to come up with viable solutions
to the issues being faced by Sindh,” he
stated. (Courtesy – BR)
For economic recovery, Rs10bn will
be provided to small and medium
enterprises, women, minorities, youth
and businesses hit by the pandemic.
The finance minister also announced
a 10pc pay raise in salary of all
government employees and said those
employees who did not draw special
allowances would get a pay raise of
37pc.
He said the province would also
spend Rs10.4bn on reducing regional
disparities and Rs2.6bn on providing
stipends to 20,000 prayer leaders in
the province.
Mr Jhagra said that in order to boost
economic activities in the province, the
government had reduced taxes. He
said f armers had been given exemption
from landholding tax during the next
year, while registration fee for vehicles
has been reduced to a nominal rate of
Re1. He also announced tax exemption
for all professionals.
The finance minister said the
government would spend Rs2.8bn on
extension of Rescue 1122 services to
other parts of the province.
He said the tourism department
development budget had been
increased to Rs12bn from Rs2bn
and that of science and technology to
Rs2bn from Rs1.1bn. (Excerpt – Dawn)
TRADE CHRONICLE - May - Jun - 2021 - Page # 14
TRADE CHRONICLE
A Pragmatic view of Pakistan’s
budget 2021-22
By Dr. Muhammad Nawaz Iqbal
Pakistan’s Budget 2021-22 is
quite different from the past one of
incumbent government. This difference
is in a positive outlook. The current
government of Pakistan under Prime
Minister Imran Khan has introduced
its third financial plan for the Fiscal
Year 2021-22. This financial plan has
a worth of Rs8.49 trillion, an expansion
of Rs700 billion in the course of the last
financial plan, and a GDP development
rate focus of 4.8 percent. The 2021-
22 spending plan is significant as the
nation has introduced positive financial
markers throughout the most recent a
half year of the FY21.
The Regulatory obligation on the import
of cocoa glue, margarine, and powder
will be decreased. The government
has brought up in the Economic
Survey that unfamiliar interest in
Pakistan has declined because of
worldwide conditions brought about
by the Covid-19. The Economic
Survey shows unfamiliar speculation
figures for the initial nine months of
the current financial year, esteemed
at about ً 1.4 billion in the July-March
period, up from the past monetary year.
The nation’s overall imports in these
months remained at 42.3 billion, up
13.5 percent from $37.3 billion dollars
in a similar period last monetary year.
During the period under review, the
nation’s fares expanded by 6.5 percent,
yet the sharp ascent in imports cleared
out the advantages of the increment in
sends out. It very well might be reviewed
that Pakistan had set an absolute
import focus of 42 billion this year,
yet in ten months, the nation’s
imports surpassed this objective,
prompting a broadening
import/export imbalance. The
development force got noticeable
by the center of the current monetary
year. Huge scope producing, income
assortment, trades, mechanical power
utilization and private area credit off
take began to show solid development.
Horticulture, the biggest work area in
Pakistan, and development, the biggest
business metropolitan area, are both
seeing solid development. The budget
2021-22 hopes to gather PKR 5.83
trillion in charges. This is 24% more
than the assessed PKR 4.69 trillion that
Pakistan desires to gather in the active
financial. As indicated by the Finance
Minister, with the economy developing
by 4.8 percent and with expansion being
around 8%, then, at that point there
will be a characteristic development
of around 13% or PKR 550 billion in
charge incomes. The monetary review
for the current monetary year likewise
specifies Pakistan’s developing import/
export imbalance.
The overview gives unfamiliar
exchange information to the initial ten
months of this monetary year, July-
April, which shows that the nation’s
import/export imbalance has expanded
by over 21% in those ten months. The
government has provisioned for a gross
outer receipt of PKR 2.75 trillion.
This incorporates credits of PKR 2.7
trillion and awards of PKR 0.32 trillion
and undertaking advances and awards
outside PSDP of PKR 0.23 trillion. Out
of this gross sum, PKR 1.5 trillion will
go in reimbursing unfamiliar advances
and PKR 0.74 trillion in reimbursing
unfamiliar credits, leaving net unfamiliar
receipts of PKR 1.25 trillion. Out of the
complete outer advances being taken,
about PKR 800 billion (about US $5
billion) will be taken from business
banks.
Cotton is the country’s fundamental
material fare significant crude material.
As per the Economic Survey, the region
under cotton development has likewise
declined in the monetary year under
audit.
In the last monetary year, cotton was
developed in a space of 2517 thousand
hectares. Nonetheless, in the current
monetary year, the region under cotton
has diminished by about 17.5 percent
and the region under development
stayed at 2079 thousand hectares. The
rationale of expenses and the choice
not to expand power rates could help
keep away from burglary from electrical
cables and the non-installment of
assessments – however it is very
hard to perceive how merchants, who
structure a monstrously incredible hall,
will be burdened effectively.
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TRADE CHRONICLE - May - Jun - 2021 - Page # 15
TRADE CHRONICLE
Salient feature of Pakistan
Economic Survey FY21
Key Highlights
Provisional GDP growth rate clocks
in at 3.94% for FY21. GDP growth for
FY20 was revised down to -0.47% from
-0.38% earlier.
GDP at current market prices stood at
PKR 47.7trn for FY21 (14.8% YoY).
Key growth sectors: Services 4.43%,
Industrial 3.57% and Agriculture 2.77%.
Growth of important crops: wheat
(8.1%), rice (13.6%), and maize
(7.38%).
Sugarcane recorded the secondhighest
ever production at 22%.
Other crops such as livestock and
forestry grew 1.41%, 3.1% and 1.4%,
respectively.
Cotton witnessed negative growth of
22.8% resulting in 15.6% decline in
cotton ginning.
Industrial sector’s growth was primarily
driven by unprecedented growth of
9.29% in LSM.
Service’s sector growth was mainly on
the back of wholesale and retail trade
Contuined from page # 9
unity and sovereignty of states, noninterference
in their internal affairs, and
the endeavour to resolve disputes by
peaceful means.
His Royal Highness, the Crown Prince,
welcomed the recent understanding
reached between the military authorities
of Pakistan and India regarding
ceasefire at the Line of Control (LoC),
which is based on a 2003 understanding
between Pakistan and India. The two
sides emphasized the importance of
dialogue between Pakistan and India to
resolve the outstanding issues between
the two countries, especially Jammu
and Kashmir dispute, to ensure peace
and stability in the region.
The Prime Minister congratulated the
government of the Kingdom of Saudi
Arabia for successfully organizing and
holding the G20 summit meetings and
the positive decisions that resulted
from it in economic, developmental,
environmental, health, energy and
segment
(8.37%) and
finance and
insurance
s e c t o r
(7.84%).
Pakistan’s
total public
debt stood
at PKR 38trn
as at end of
Mar’21. The
domestic debt
amounted to
PKR 25.6trn
(up 13.8%
YoY) while the
foreign public debt was PKR 12.5trn.
Average National Consumer Price
Index (CPI) clocked in at 8.83% (as per
11MFY21 PBS data).
Pakistan’s fiscal deficit arrived at PKR
1.65trn in 9MFY21 (3.6% of GDP)
compared to PKR 1.69trn in 9MFY20
(3.8% of GDP).
Remittances have clocked in at USD
26.7bn as per 11MFY21 SBP data, up
29% YoY.
Foreign Direct Investment (FDI) clocked
in at USD 1,553mn during 10MFY21,
down 32% YoY.
other fields.
The Prime Minister appreciated the
efforts of the Kingdom and its leadership
in serving the Two Holy Mosques,
their pilgrims, Umrah performers and
visitors, especially in organizing the
Hajj season for the past year 1441 AH,
despite the challenges posed by the
Corona pandemic.
In order to further strengthen and
diversify bilateral relations, the
following agreements and Memoranda
of Understanding were signed;
Agreement on Establishment of Saudi-
Pakistan Supreme Coordination
Council (SPSCC);
MoU in Combating Illicit Traffic in
Narcotics, Drugs, Psychotropic
Substances and Presursor Chemicals;
Framework MoU between SFD
and Islamic Republic of Pakistan
Pakistan recorded a Current Account
surplus of USD 773mn in 10MFY21
against a deficit of USD 4,657mn
recorded in the SPLY. During 10MFY21
total imports recorded an increase
of 8% YoY to USD 48,625mn while
exports have clocked in at USD 25,889
mn posting a jump of 6% YoY.
Trade deficit recorded a deficit of USD
22,736mn compared with a deficit of
USD 20,599mn in 10MFY21, marking a
jump of 11%.
The per capita income for FY21 in PKR
terms stood at PKR 246,414 (+14.6%
YoY) while in USD terms it was USD
1,543 (+13.4% YoY).
for financing projects in Energy,
Hydropower Generation, Infrastructure,
Transport & Communication and Water
Resource Development;
Cooperation Agreement in the Field of
Combating Crimes; and Agreement on
Transfer of Convicted Prisoners.
The Prime Minister expressed gratitude
and offered his best wishes to His
Majesty King Salman bin Abdulaziz
Al Saud, Custodian of the Two Holy
Mosques, His Royal Highness Crown
Prince Muhammad bin Salman bin
Abdulaziz Al Saud, Deputy Prime
Minister and Minister of Defence, and
the brotherly people of the Kingdom of
Saudi Arabia. His Royal Highness the
Crown Prince warmly reciprocated with
best wishes for health and wellbeing
of the Prime Minister, and prayers
for the progress and prosperity of the
brotherly people of the Islamic Republic
of Pakistan.
TRADE CHRONICLE - May - Jun - 2021 - Page # 16
TRADE CHRONICLE
Tariq Glass Industries continues to expand
its production capacity in Pakistan
A Chronicle Report
Tariq Glass Industries Limited is
a premier glass manufacturing
organisation of international standards
and repute. It produces tableware, float
glass and container-ware products
under brand names Toyo Nasic,
Omroc, Nova and Tariq Float Glass.
In container-ware, we supply mostly to
the beverage industry such as Coca
Cola, Pepsi along with other domestic
manufacturers.
With the largest state of the art
production facility, Tariq Glass
Industries Ltd. produces its tableware
products on single and double gob
press machines as well as H-28 (press
& blow) and stretch machines.
Onsite mould workshop, all weather
warehousing, international standard
packaging, advanced laboratory and
Tecno 5 decorating machines are just a
few examples of the facilities that Tariq
Glass Industries offers to its valued
customers.
Quality and reliability are the
cornerstones of Tariq Glass Industries
Ltd. The company offers innovative,
value-added products, tailored to
the customer’s needs and
satisfaction for household
as well as industrial
requirements.
Expansion program:-
The Company’s has
expanded its float glass
production capacity by adding
an additional 500 tons per day
furnace in 2021. This increase
in production
will bring Tariq
Glass Industries
Limited’s total
float glass
capacity to 1,050 tons per day.
Further Expanion plans in 2021 /
2022 will see the company increase
its production of tableware as well,
thereby, enabling the company to
better cater to the growing demand
for glass both domestically as well as
internationally.
Financial Performance for 9MFY21
The Company has performed beyond
expectations in the second and third
quarters of the financial year by
delivering revenue growth, despite the
challenging environment, maintaining
profitability and ensuring business
continuity.
The top-line revenues of the Company
registered a robust growth of 23.61%,
which is recorded as Rs. 14,059 million
for a cumulative period of nine months
as compared to Rs. 11,374 million of
the corresponding period of the last
year.
The EPS for the period under report
also reflected a sturdy improvement
and stood at Rs. 14.82 as compared to
EPS of Rs. 6.28 of the same period of
the last year.
The Company’s production facilities of
Tableware and Float Glass, were fully
operational during the nine months
ended on March 31, 2021.
Future Outlook
The Company acknowledges the boom
in the construction industry, which has
created demands in the concerned
sectors. This was possible due to
conducive policies of the government.
In support of the construction sector
and to boost employment and economic
output, the Government has announced
a construction stimulus package by
fixing the tax rate for the construction
industry, a subsidy worth PKR30 billion
(US$191.5 million). The predicted
growth in this sector is expected to
increase by 3% in real terms in 2021,
recovering from a decline of 6.2% in
2019.
The Company has expressed hope
that with the induction of the added
production from the Float Glass Plant
Unit II, a wide variety of float glass
products will be available not only in
the shape of the clear and coloured
float glass (i.e., green, blue, bronze),
mirror and reflective coated float glass
but also, the float glass of varied
thicknesses in the range
of 2 mm to 12 mm will be
maintained in stocks for sales.
Tariq Glass is poised to
not only meet the growing
domestic demand but also
the international requirements
for glass, which would earn
valued foreign exchange by
exporting tableware and float
glass products.
TRADE CHRONICLE - May - Jun - 2021 - Page # 17
TRADE CHRONICLE
RCET policy helps in boosting
textile export in Pakistan
By Saddam Hussein
Pakistan has untapped export potential
in the textile sector. The role and
impact of the textile sector can very
well be gauged from its contribution to
the national economy. It comprises 8.5
percent of the country’s GDP, employs
40 percent of the labour force and
contributes 60 percent to the export
sector. Directly and indirectly, the textile
sector impacts the lives of 25 million
people out of a 220 million population.
To actualize this great inherent potential,
considerable investment in machinery,
enhanced skill set and product
development are critical. Success in
these avenues is not possible in the
absence of supporting policies from
the government, particularly in the
backdrop of tough competition in the
sector in the region.
The Pakistan Institute of Development
Economics (PIDE), in its latest study,
has highlighted the policy consistency
and other critical issues concerning the
textile sector of the country. The report
argues that the PTI government’s policy
of regionally competitive energy tariff
(RCET) has boosted textile exports
and brought economic stability. It says
abandoning the policy in favour of a
new support regime will have serious
repercussions for the industry. The
government of Pakistan introduced the
RCET policy in 2018. From October
2018 onwards, under this policy, the
government provided re-gassified
liquieied natural gas (RLNG) at $6.5/
mmbtu, and since January 2019,
electricity tariffs were 7.5 cents/kWh.
However, the electricity tariffs were
raised to 9 cents/kWh in September
2020.
A policy is a tool to achieve a certain
objective and an effective way to
eliminate uncertainty by upholding a
clear pathway. A predictable and stable
policy enables all agents to have a
level playing field and act accordingly.
Unfortunately, there is a lack of policy
predictability and consistency in
Pakistan. This is a significant growth
constraint. For instance, a few large
textile mills are taking the risk of
expansion and installing additional
units in the backdrop of favourable
policy for textiles. Yet, most of the textile
industry is reluctant to decide what kind
of machinery to import and how much
expansion to plan. All of them are
unsure about the time frame of
the current policy, which could
change anytime. A miscalculation
could inflict considerable losses on
the mills.
The textile sector is in dire need of a
long-run comprehensive investment
plan to emerge as a key driver of
economic growth. Investment on such a
scale can have positive spillover effects
in the sector and in allied industries.
As of now, the industry’s productivity
has increased a bit, and investment
is happening. Now, to avail the full
potential of the textile sector and retain
and enhance the existing customer
base, consistent implementation of the
RCET policy is needed.
Instead, some quarters are arguing
that the RCET will make the sector
regionally uncompetitive. Others are
suggesting a moratorium on gas
supplies. With these whimsical policy
signals, we would not be able to
develop investors’ confidence to reap
the full potential benefits of the sector
will remain a distant dream.
Assuming that competitive energy
prices alone would solve all the
problems is naive. Take the example
of electricity. Power supply from the
grid follows a lot of fluctuations and
breakdowns. These fluctuations in
the supply have heavy costs for a unit
depending upon which sub-sector it
is operating in. For instance, a oneminute
breakdown in spinning stops
work for 20 to 25 minutes and causes a
10 to 15 percent production loss in the
case of weaving.
Likewise, ensuring the desired pressure
of the gas at the unit’s inlet cannot
be guaranteed by just competitive
energy tariffs. Additionally, the latest
machinery is computerised and comes
with sensitive electronic gadgets.
Power shutdowns and fluctuations can
sometimes cause damage to these
gadgets and stop working. These
gadgets are not locally made, so these
must be imported. This takes at least a
few days, if not more, further adding to
the costs.
Furthermore, availability of the raw
material, i.e., cotton, is increasingly
becoming a significant challenge.
Its production is on the low side and
its quality is poor. Cotton is a Kharif
crop (monsoon crop/ autumn crop). In
Pakistan, there are three other major
Kharif crops besides cotton. These
include maize, rice, and sugarcane.
Over the last two decades, the area
under sugar cane and rice cultivation
has increased by almost 19 percent.
Whereas the cultivation area of
maize has increased by 40 percent.
The cultivation area of cotton has
decreased by 18 percent. Besides,
the cotton crop is more prone to pest
attacks and plant diseases. If farmers
use pesticides, it adds to the cost,
and for the small farmer, integrated
pesticide management is expensive.
Thus, farmers are shifting from cotton
to crops which are more profitable for
them.
Additionally, contamination in handpicked
cotton in Pakistan is a persistent
issue concerning the quality and value
of cotton. Pakistani cotton is one of
the most contaminated in the region.
Untrained cotton pickers from field
and low-ginned quality standards add
to cotton fetching lower value in the
market. Pakistani ginned bales contain
8-10 percent trash, while in the world,
it averages around 2-3 percent. Poor
quality cotton in terms of its physical
properties raises the processing costs
and reduces the output and quality of
the final products. To increase cotton
production, we need to supply farmers
high-yield seeds that raise profitability.
The provision of such high-yield
seeds is only possible after necessary
research and innovation regarding the
seed quality. Research should also be
done on the type of seeds resistant to
pests/insects and plant diseases. All
these concerns put a question mark
on the performance of government
agriculture research bodies.
The state machinery has apparently
misunderstood policy-related
dynamics. Most of the policies can
rightly be described as arbitrary,
unpredictable, non-consistent and
non-conclusive. There is a sheer lack
of long-term comprehensive planning.
Consistency and long-term planning is
the way forward.
TRADE CHRONICLE - May - Jun - 2021 - Page # 18
TRADE CHRONICLE
Leather Industry
leather exports from Pakistan
continue to decline in 9MFY21
Pakistan leather industry export
proceeds during the first nine months
of July – March 2021 reduced by 2.54
per cent to US$ 640.02 million against
US$ 656.71 million, earned in the nine
months of last fiscal year July –March
20, says data released by the Federal
Bureau of Statistics (FBS).
The breakdown of export shows that
tanners have earned US$113.32 million
on the export of 8.125 million sqm of
finished leather between the periods of
July – March 2021 as compared to US$
151.33 million on the export of 13.895
million sqm in similar nine months
in a year-ago period. The export
figure translates that tanned
leather exports fell by 41.53 per
cent in terms of quantity and 25.12 per
cent in terms of dollars respectively
during this export period.
Similarly, the footwear exports recorded
a fall of 5.15 per cent in terms of value
between July and March 2020-21.
During this period, footwear export
reached US$98.98 million by exporting
13.290 million pairs as against US$
104.35 million for 11.560 million pairs
shipped in the same nine months of
the previous fiscal year. However, the
quantity rose by 14.97 per cent during
this exporting period.
On positive development,
the export of leather
manufacturing, including
the export of garments and
leather gloves, increased
to US$ 427.72 million from
US$ 401.02 million during
this period. This export
represents a rise of 6.66
per cent on a YoY basis.
Indian leather exports
continue to contract in
outgoing fiscal year FY21
According to the Indian’s Council for
Leather Exports (CLE), the export
revenue on account of leather and
leather products for the period April
2020 – March 2021 stood at the
US $ 3.681 billion as against the
performance of US $ 5.070 billion in
April 2019 – March 2020, recording a
significant decline of 27.39%. However,
in rupee terms, the export received
revenue of INR 272.099 billion during
this period against INR 359.503 billion
in the corresponding period last year.
Thus, registering a decline of 24.31%
only.
The finished leather exports fell in value
by 27.84% to $378.23 million from US$
524.15 million, leather footwear by
28.64 % to the US $1485.55 million
Bangladesh leather industry sees significant growth
despite the negative impact of Covid 19
Bangladesh leather industry sees
significant growth despite the negative
impact of Covid 19 on the country’s
export. During the first ten months of
the financial year 2020-21 (July – April
2021), the leather sector has earned
export revenue of US $760.92 million
as compared to US$ 700.93 million
earned in the same months of the
previous year. It translates a singledigit
growth of 8.56 per cent on a YoY
basis, says the Bangladesh Export
Promotion Bureau (EPB).
The break down shows that Bangladesh
bagged US$ 96.10 million on exports
of finished leather in the first ten
months of the current financial year
compared to US$ 90.47 million in July
– April 2020. It shows a growth of 6.22
per cent.
The exports of leather products
have also expanded to US$ 203.10
million from the US $ 197.30 million
of the same ten months of last year. It
translates to an incline of 2.94 per cent
on a YoY basis.
The leather footwear exports saw
double-digit growth of 11.76 per cent
to the US $ 461.72 million from US$
413.15 million during this export period.
The Bangladesh Export Promotion
Bureau (EPB) had set the export target
for the leather industry at US $920
million for the financial the year 2020-
21 (July – June) compared to the US
$797.6 million earned in the previous
fiscal year.
from US$ 2081.64 million, and leather
garments by 31.12 % to $ 295.56
million from US$ 429.11 million during
this period.
The leather goods export also
decreased by 29.56%, US$ 944.31
from US$ 1340.56 million during this
export period. But on a positive note,
Saddlery and Harness export rose to
US$ 186.18 million from US$ 151.44
million, reflecting a growth of 22.94%.
Out of total exports, the footwear
(Leather Footwear, Footwear
Components & Non-Leather Footwear)
holds a significant share of 50.99% in
the total export of leather and leather
products with an export value of US
$ 1877.30 million. This is followed by
Leather Goods & Accessories with a
share of 25.65%, Finished Leather
10.27%, Leather Garments 8.03% and
Saddlery & Harness 5.06%.
TRADE CHRONICLE - May - Jun - 2021 - Page # 19
TRADE CHRONICLE
Federal Budget FY22 offers cheap raw materials for the
footwear industry in Pakistan
Finance Minister Shaukat Tarin,
presented Federal budget in Parliament
on June 11. A Rs 8.495 trillion spendingled
outlay for the fiscal year 2021-
22 designed to achieve six to seven
percent GDP growth in the next two to
three years 4.8 percent for FY2021-22
by facilitating auto, telecom, agriculture
as well small and medium enterprises
for job creation amid roaring protest
from the opposition.
Last year, the minister said that this
government initiated a comprehensive
customs tariff reforms exercise, and
more than 1600 tariff lines constituting
thousands of raw materials were
exempted from customs duty. In the
forthcoming budget, the same trend
jacks up to make them completely
duty-free. These items include the raw
material used in chemicals, leathers,
textile, rubble and fertilizers.
In addition, the rate of customs duty
on around 200 tariff lines consisting of
raw materials and intermediate goods
is being proposed to be reduced from
20%, 16% and 11% and 3% to 11%,
3% and 0%. These items include
Bleaching, Rubber and raw material
for particular domestic use. Hopefully,
these reductions would bring down the
manufacturing cost of footwear.
Earlier, Pakistan Footwear Association
has suggested its recommendations
regarding the Income & Sales Tax in
the forthcoming 2021-2022 Financial
Budget.
Besides Income Tax & Sales Tax, the
25-point recommendations include
suggestions to reduce various duties
& tariffs. And to implement policies
that benefit the footwear sector In the
country to promote and pursue the
“Made In Pakistan” policy aggressively.
The recommendations proposed
by Mr Muhammad Imran Malik
ChairmanPakistan Footwear
Association with regards to Income Tax
include:
• The surplus Income Tax amount paid
this year should be carried forward next
year and adjusted against the Income
Tax due next year.
• Exempt from minimum Income Tax
• The percentage of Depreciation
Allowance for the Plant, Machinery and
Equipment to be reinstated stored at
50%, and for the buildings, it should be
restored to 25%.
• And the tax credit for investment to
be restored to 10%
• Instead of the Business, the Income
should be made as to the base.
• Exemption of Income-tax on
dividends, for the companies in the
Green Field Industries & in the Special
Industrial Zones.
• Gradual adjustment of the Corporate
Income Tax from 29% to up to 25%
• Abolishment of Advance Income Tax
• Tax charged on the Shareholder’s
dividend to be reduced from 15% to
10%.
• Request to extend the term for
Business losses from 5-years to
unlimited.
Similarly, for the sales tax.
• Sales tax on Retailers
to be reduced up to 8%
• Additional tax should
be a part of the Output
Tax
• Sales tax on Small
Retailers & Wholesalers
tax should be brought
from 17% to 10%.
• Sales Tax Refund to
be adjusted against the
Mr. Muhammad Imran Malik
Sales Tax.
• Viable solutions should be
implemented at STA for the due Income
Tax.
• Permit Zero ratings on Sales Tax
against the IOU Manufacturing Bonds
utilized against the purchase of locally
manufactured material.
• Form C’s submission date to be
strictly implemented from the end-ofthe-month
to the 10th of the following
month.
• Unregistered dealers to be brought in
the tax net.
• Business with a history of full
compliance with FBR should be
exempted to pay 14% instead of 17%
on all materials.
• To evaluate prices, the ITP valuation
ruling should be made on a half-yearly
basis.
• Water Treatment & Waste Treatment
for all industries to be exempted from
tax.
• To promote Made in Pakistan
policy, duties to be waived off on all
lab equipment used for in the shoe
manufacturing industry.
• DORD to be abolished on all raw
material used for the shoe industry &
should be brought on the lowest slab of
the customs duty.
• And a humble request to the
Government of Punjab to allocate land
to establish the Pakistan Footwear
Associate Institute at the Quade-e-
Azam Business Park.
A Chronicle report
TRADE CHRONICLE - May - Jun - 2021 - Page # 20
TRADE CHRONICLE
Cement Industry
Federal budget 2021/22 positives for
cement industry in Pakistan
Pakistan Finance Minister Shaukat
Tarin presented the PKR8.48 trillion
federal budget for 2021-22 in the
National Assembly last week. The
government had set the GDP growth
target at 4.8 per cent against the
expected 3.9 per cent for the outgoing
fiscal. In addition, Islamabad allocated
a considerable fund for Public Sector
Development Programme (PSDP).
These indirect invectives are
conducive for the cement industry
in Pakistan; research
experts believe and
unanimously termed
the budget, neutral to
positive for the cement industry.
The government allocated PSDP at
PKR 2,135bn (highest ever; federal
PSDP at PKR 900bn against PKR
650bn last year with PKR 1,235bn set
aside for provinces) should encourage
development in the country and hence,
propel cement demand, analysts
remarked.
Additionally, the National Highway
Authority allocated PKR 114bn vs PKR
Budget impacts on cement
Maple Leaf awards a contract
to DESCON again
Maple Leaf Cement awarded
Construction Contract to Descon
Engineering Limited [DESCON].
DESCON has a long-standing
relationship with Maple Leaf Cement,
having successfully contributed
towards the construction of Maple
Leaf’s Line 3 in 2019. Maple Leaf
has now awarded the contract for the
construction of its upcoming Line 4
to DESCON, to be launched in 2022.
The scope of the work includes civil
works of 7,000 metric tons cement
clinker per day plant at existing Maple
Leaf Cement Factory in Iskanderabad,
District Mianwali.
Being a market leader, Descon has
executed major industrial projects
across the region and as a
leading cement contractor, it has
successfully delivered and worked
on numerous cement plants in Pakistan
with a total capacity of 80,900 TDP.
DESCON’s work and its
long service history in
Pakistan is a testament
to its belief in Partners in
Progress. It is because
of for this very reason
that Maple Leaf has
once again chosen
DESCON to develop its
new project.
Taimur Saeed, President
Sales & Marketing
welcomed the news,
“We have always upheld
our tradition of delivering
118bn in FY21 (actual expenditure
in 10MFY21 set at PKR 79bn as
per Planning Commission suggests
augmented allocation by 44 per cent
this year). Furthermore, a subsidy of
PKR 30bn has been earmarked for
the Naya Pakistan Housing Authority
alongside PKR 3bn for the Naya
Pakistan mark-up subsidy, which
should trigger construction demand.
Moreover, PKR 57bn, 23bn, 06bn and
14bn has been set aside for Dasu,
Diamir-Bhasha, Mohmand and Neelum
Jhelum dam, and work on their colonies
should materially pick up cement
demands.
The All Pakistan Cement
Manufacturers Association (APCMA)
is yet to comments on the merits of
fiscal measures. However, they had
appealed to the government to abolish
the FED and reduce other duties and
taxes to provide an opportunity for
the manufacturers to control their cost
of production and further, optimize/
expand their pant that will help generate
more employment and revenues for
the government. Similarly, the AHCML
Research raised the question that
corporate income tax, fuel, and duty
on Coal should have been slashed to
support the cement industry.
A Chronicle report
excellence on projects executed by
DESCON. Having worked on majority
of Pakistani cement plants and several
plants internationally. We are grateful
to Maple Leaf Cement for continuing to
show their faith in our capabilities.”
TRADE CHRONICLE - May - Jun - 2021 - Page # 21
TRADE CHRONICLE
The Federal Bureau of Statistics (FBS)
of Pakistan has released cement export
and production data for the July 2020-
May2021 (eleven months) and July
2020-April 2021 ( ten months) periods.
Both segments of cement post rising
trends in export and local production.
Export values and volumes increased
during this period, but an average
export price remained weaker,
reflecting a poor price market for
cement and clinker. Meanwhile, local
output increased driven by high local
demands, enabled by the central
bank continued incentive directly and
indirectly.
AHL Research reports that exports
were climbing up during this period due
to a stunning jump in North exports to
Afghanistan and visible South exports
to Bangladesh and Sri Lanka.
Export
Pakistan registers higher export and production
in eleven and ten months FY21
Pakistan’s cement industry in
11MFY20-21 earned US$253.584m of
Bestway Cement to set up Greenfield
cement plant in Punjab/Pakistan
Bestway Cement Limited has informed
Pakistan Stock Exchange (PSX) on
May 27 that because of the increasing
demand for cement in the country,
the Company has decided to set up a
Greenfield cement plant with a capacity
of 7,200tpd of clinker near Paikhel,
District Mianwali, in Punjab Province.
Company Seceerraty, Sehar Husain,
in material information to PSX added
that plant would have a 9 MW Waste
Heat Recovery Plant. To that end,
the Company has entered into an
agreement with Sinoma International
Engineering Co., Limited, PR China for
EPC.
In addition, all necessary regulatory
approvals and financial arrangements
export revenue by dispatching 7.442Mt
of cement and clinker overseas,
compared to US$242.505m from
6.570Mt of exports in the year-ago
period. The export figures represent
a noticeable growth of 4.57 per cent
in dollar terms and rising double-digit
growth of 13.27 per cent in terms of
volumes during this period on a YoY
basis, as reported by FBS.
In local currency terms, the export
value increased by seven per cent to
PKR40. 722bn (US$253.584m) from
PKR38.053.96bn during this 11MFY20-
21. Nevertheless, the cost per tonne
fell from US$36.91/t in 11MFY19-20 to
US$34.07/t during the July 2020-May
2021 period.
While, in May 2021 alone, revenues
surged to US$28.527m on the export
of 818,471t from US$15.012m on the
export of 377,016 cement and clinker
exports in April 2021, apparently due
to the vanishing of the negative impact
of COVID-19 in the world supply
chain. The export trend represents a
have been secured.
However, no time
frame of completion
was disclosed.
Bestway is the second-largest cement
producer with six state-of-the-art
production lines at four locations:
Hattar, Farooqia, Chakwal and Kallar
Kahar. Its total production capacity
of 10.7Mta. It had remained the
single largest exporter of cement to
Afghanistan and India (Presently,
export to India is suspended)
Operating Highlights
The Company recorded a gross
turnover of Rs. 63.2bn in the nine
months ended March 31 2021, 30 per
cent higher compared with Rs. 48.8
bn during the same period last year.
Net turnover for the period increased
by 46 per cent,
from Rs. 28.7
bn to Rs. 41.9
bn. This was
driven by higher
sales volume,
a decrease in
FED and better
selling prices.
substantial rise of 90.03 per cent and
117.09 per cent in terms of value and
quantity, respectively, on MoM.
Similarly, in the comparison period
of May 2020, when exports stood at
US$19.302m on the shipments of
611,284t of commodities, exports grew
by 47.79 per cent in value and 33.89
per cent in quantity, YoY.
Production in 10MFY21
The overall output of Large Scale
Manufacturing Industries Index (LSMI)
increased by 12.84 per cent for July-
April 2020-21 compared to July- April
2019-20 in Pakistan, including the local
cement production, FBS estimated.
During this cumulative ten-month period
of July 2020-April2021, Pakistan’s
cement production increased by 25.36
per cent, YoY to 41.845Mt compared
to 33.379Mt a year earlier. The upward
trend in cement production was also
observed in April 2021 alone, when
production rose by 27.44 per cent to
4.2261Mt versus 3.316Mt in the same
month last year.
New export markets for
Pakistani cement
Once its biggest market, Afghanistan
is no longer a budding space for
Pakistani cement exports—given its
increasing reliance on India, Iran and
Central Asian countries—however,
Pakistani cement manufacturers could
be looking at Uzbekistan which has
suddenly become more accessible to
Pakistani exporters with the signing of
Transport Internationaux Routier (TIR).
Pakistani exports can go straight to
Torkham through the Afghanistan
border on road.
As a surplus producer of cement, it is
important for export markets to remain
open for the industry, especially as it
embarks on a fourth expansion cycle in
recent history.
Over the next few years, the industry
may touch a 100 million tons, adding
18 million tons of capacity within the
next two years.
It’s confidence in domestic demand is
unwavering, it seems.
( Excerpt BR )
TRADE CHRONICLE - May - Jun - 2021 - Page # 22
TRADE CHRONICLE
Lucky cement and Sinoma sign
agreement for renovation of WHRP
A Chronicle report
An agreement on a renovation project
of a waste heat recovery power plant
was signed between China Sinoma
Energy Conservation Limited (Sinoma
EC) and Lucky Cement last weekend.
The generating capacity of the two
power stations - Lines CD and 01
(former AB) of the Pezu Plant in Darra
Pezu, Khyber Pakhtunkhwa - utilising
waste heat is expected to increase by
about 4MW after the transformation.
The agreement
came after a
contract entered
between the
two sides on
a 7500t/d
supporting
power station
project with
waste heat of
cement in late
March this year,
according to
China Economic
Net (CEN) recently.
Sinoma EC, a patent-holding
company specialised in energy-saving
and emission-reduction, started
cooperation with Lucky Cement in
2008. Since then, it has undertaken
several projects, including the Pezu
Lines AB and CD waste heat recovery
power plant with a generating capacity
of 10 MW respectively, the 15 MW
Karachi Line EFG power plant with
waste heat, Karachi Line H waste heat
boiler extension, etc.
Waste thermal energy is one of the
largest sources of inexpensive and
Cherat Cement Co gets approval to set up
a greenfield cement plant in KPK
Cherat Cement Co.
Ltd (CHCC) informed
the Pakistan Stock
Exchange Limited
(PSX) that the Board
of Directors of the
Company, in its meeting held on June
24, 2021, has approved a greenfield
cement plant installation at D.I. Khan,
Khyber Pakhtunkhwa Province in
Pakistan.
clean energy available.
Waste heat power
generation, or Waste
Heat to Power (WHP), is
the process of recovering
waste heat and using it to generate
power with no combustion and no
emissions. In cement plants, heat
generated through rotary kiln preheater
(PH) and AQC exhaust hot gases
are used to generate steam in steam
generator (Boiler) which is further used
to generate electricity/power through
steam turbo generator (STG).
Recovery of waste heat helps reduce
energy costs
for industrial
processes. By
using the waste
heat to generate
emission-free
electricity,
industrial users
can put wasted
energy back
into the process
that created it,
route the power
somewhere
else in the facility, or sell it to the grid
to support clean energy production,
distribution and use. Moreover, such
practices are in conformity with the
initiative to build a green CPEC (China
Pakistan Economic Corridor).
Due to the upgraded epidemic control
protocols, Lucky Group appointed
Muzamil, head of the Pezu Waste Heat
Power Plant to complete the signing
ceremony in a simplistic way with
Chinese counterparts Wang Jianfeng,
Vice Director of Marketing Department
of Sinoma EC International Engineering
Branch, and Marketing Manager Liu
Geng.
According to
Azam Faruque,
Chief Executive of
the Company, the
plant will have an installed production
capacity of 11,000tpd of clinker. The
project’s total cost is estimated to
be approximately PKR 34 bn, with
completion of the project expected in 3
years.
In addition, the Board has approved the
acquisition of certain assets, including
immovable property and mining leases
in D.1. Knan from a company for a price
Bangladesh next fiscal
budget offers incentives for
the cement industry
Bangladesh National Budget for 2021-
2022 (July –June) presented by A H M
Mustafa Kamal, Minister of Finance,
in Parliament on 03 June. During his
speech, the minister had acknowledged
that cement, iron and iron products are
the critical components of infrastructural
development. Therefore, if tax incentive
is provided to these industries engaged
in producing these items, development
of physical infrastructure will be easy
and cost-effective. Therefore, in this
context, he proposes reducing the
tax rate on the import of raw material
related to cement production from 3
per cent to 2 per cent. Likewise, he
also offers to reduce the tax deduction
rate at source on supply of cement, iron
and iron products from 3 per cent to 2
per cent. He expressed hope that these
measures will help these industries
flourish and enable them to make a
positive contribution to the country’s
infrastructural development.
In addition, the finance minister cut
corporate tax rates by 2.5 percentage
points to 30 per cent for the listed
companies and 32.5 per cent for the
non-listed ones. As expected, the
mega projects, whose completion are
expected to raise Bangladesh’s GDP
by as much as 4 per cent, got about
48 per cent more allocation in the
upcoming fiscal year, as part of the
government’s push to ensure their
timely implementation. Seven of the
eight mega projects -- Padma bridge,
Dhaka mass rapid transit line-6 (Metro
Rail), Chattogram-Cox’s Bazar rail
link, Rooppur nuclear power plant,
Matarbari 1,200MW coal-fired power
plant and the Payra deep seaport -- will
get Bangladeshi Taka 370 bn in fiscal
2021-22, in contrast to Tk 254 bn this
fiscal year.
of PKR 1.3 bn.
An Analyst of Foundation Research
in welcoming note stated that CHCC
currently has an installed capacity of
4.5Mta at Lakrai, Nowshera. After the
commencement of the announced
capacity, the total capacity will be
increased to 8.0Mta. It is to remind
here that CHCC cement dispatches
increased by 12.9 per cent YoY in
9MFY21, and plant capacity utilization
remained at 88 per cent in 9MFY21
compared to 78 per cent in 9MFY20.
TRADE CHRONICLE - May - Jun - 2021 - Page # 23
TRADE CHRONICLE
A remarkable growth in cement
dispatches recorded in Pakistan
All Pakistan Cement Manufacturers
Association (APCMA) has documented
remarkable growth in domestic and
exports dispatching of cement for May
2021 alone and 11MFY21, last week. It
registered an increase of 49.86 per cent
in May 2021, when total cement/clinker
dispatches were 3.947Mt against
2.634Mt against the same month
of last fiscal year. Whereas, during
11MFY 21, total cement dispatches
stood at 52.222Mt, reflecting 20.91 per
cent higher than 43.189Mt of cement
dispatched during the eleven months
of last fiscal year.
May breakup
The breakdown showed domestic
cement dispatches during May 2021
increased to 3.201Mt from 2.271Mt
in May 2020, depicting a healthy
increase of 40.95 per cent. Exports
also massively increased by 105.56
per cent, from 363,174t in May 2020 to
746,550t in May 2021.
In May 2021, the North based cement
mills dispatched 2.713Mt of cement
in local markets, showing an increase
of 35.55 per cent over 2.001Mt
dispatches in May 2020. Exports from
Flying Cement Company slates
expansion to complete in 3QFY22
Flying Cement Company Ltd. (FLYING)
announced that its plant expansion due
to come online in 3QFY22, located in
Mangowal, District Khushab, in Punjab
province of Pakistan. It has an existing
clinker production capacity of 4,000tpd
(Line-I) while FLYING is currently
undertaking an expansion in Clinker
production capacity - Line-II – by an
incremental 7,700tpd; the Company
is thus expanding its total clinker
production capacity to 11,700tpd.
Out of the total projected cost (i.e.,
PKR 10.2bn) for the expansion,
the Company has already incurred
PKR7bn.
Management plans to achieve
utilization of 35% in FY22 (incorporating
total capacity of new plant which will
be available in 2HFY22). It is also
expecting to target an 8 per cent market
share post-expansion in 3QFY22.
North based mills that, due
to covid-19 issues was just
7,520t in May 2020 showed
a healthy increase to 203,625
tons in May 2021.
South-based mills dispatched 487,311t
cement in domestic markets during
May 2021, registering a robust increase
of 81.15 per cent compared to the
dispatches of 269,003t in May 2020.
Exports from the South also increased
by 52.66 per cent to 542,925t in May
2021 from 355,654t during the same
month last year.
Collective dispatches 11MFY21
During this period, total cement
dispatches (domestic and exports)
were 52.222Mt, which are 20.91 per
cent higher than 43.189Mt of cement
dispatched during 11MFY20. Out of
this total, local dispatches increased
by 20.26 per cent to 43.451Mt from
36.13Mt, while exports increased
from 7.059Mt to 8.771Mt, showing a
growth of 24.25 per cent during under
reference period.
During 11MFY 21, North-based mills
dispatched locally 36.722Mt, which
was 18.67 per cent higher than the
dispatches during the last budgetary
period of 30.943Mt. Exports from North
were 2.365Mt, showing an increase of
Meanwhile,
F l y i n g
C e m e n t
Company has
informed Pakistan Stock
Exchange (PSX) Thursday
that the Company has
completed installing a
new captive power plant
of 12 MW at its site in
Distt. Khushab and its trial
operations are expected
to be started next month,
hopefully.
This captive power
plant will eliminate the
dependency on WAPDA and enable
the Company to be self-reliant in power
consumption whilst also resulting in
significant cost saving on account
of power in the future. The power
plant will be based on coal being the
economical source of fuel.
Earlier, the Company had installed
a 7.5MW WHR, which was
commissioned in Feb’21. Line-1 has
22.89 per cent over exports of 1.924Mt
during the same fiscal year.
Local despatchers from South-based
mills were 6.729Mt during this period,
29.73 per cent higher than 5.187Mt
dispatched during the corresponding
period of last fiscal year. The exports
from the South recorded 6.406Mt,
registering an increase of 24.76 per
cent over exports of 5.135Mt during the
same period the previous year.
APCMA budget submissions
The federal budget for 2021-22 is
expected on June 11. The APCMA
takes this opportunity and highlights
problems/suggestion on the radar of
the government. A representative of
APCMA said that the cement industry
is subject to a FED of Rs. 1500 per
ton and GST of 17 per cent of the
maximum retail price, and these taxes
calculate to around Rs. 170 per bag. He
appealed to the government to abolish
the FED and reduce other duties and
taxes to provide an opportunity to the
manufacturers to control their cost
of production and further optimize/
expand their pant that will help generate
more employment and revenues for the
government.
a capacity of 4,000tpd with a 17MW
energy requirement, while Line 2,
with a capacity of 7,700tpd of clinker,
has a 32MW energy requirement.
Thus, the total energy requirement of
FLYNG hovers at 49MW. As against
this requirement, FLYING has a total
energy source of 58.5MW, including
Load connection from WAPDA (25MW),
WHR System (7.5M), Furnace Oil
Engines (14MW), and Captive Power
Plant (12MW).
TRADE CHRONICLE - May - Jun - 2021 - Page # 24
TRADE CHRONICLE
People & Events
Zulfiqar Younus appointed
Member FBR
Federal Board of Revenue (FBR)
has appointed Zulfiqar Younus, as
Member FBR, (on promotion to BS-21).
According to FBR notification issued
recently, he has assumed the charge
of the post.
Coca-Cola appoints Aisha Sarwari
as director public affairs
The Coca-
Cola Export
Corporation,
Pakistan has
appointed Aisha
Sarwari as the
new Director,
Public Affairs,
Communications
a n d
Sustainability,
for Pakistan and Afghanistan region.
She joins at a time when the Company
identifies Pakistan as the largest
market in the region, and also a time
of global restructuring to instil a flat and
integrated system that gains enterprise
efficiencies amidst the Covid-19
pandemic.
Aisha brings over 18 years of leadership
experience in communications, public
relations and sustainability across
several industry sectors and the
Government. Her early career was
in the US with international news
organisations including CNN and
National Public Radio. Her consulting
and programme work spans the Bill
and Melinda Gates Foundation, USIP,
and the World Bank. She has also
KPT chief visits Ferry Terminal Shed
Chairman KPT Nadir Mumtaz Warraich
alongwith General Manager (CW/E) paid
a visit to Ferry Terminal Shed to evaluate
FBR also notified that Muhammad
Waqas Hanif, a BS-19 officer of Inland
Revenue Service (IRS) has been
appointed as Director (OPS) to Special
Assistant to Prime Minister on Finance
and Revenue/ Minister of State. He
has relinquished the charge of the post
Additional Commissioner-IR, Corporate
Tax Office, Islamabad.
Waqas Ahmed, a BS-18 officer of IRS
appointed as Secretary (OPS) (HRM-
IR-III), FBR, Islamabad.
FBR also notified that Muhammad
Nayyar Shafiq, a PCS/BS-20 officer
has been appointed as Collector,
Collectorate of Customs (Adjudication),
Faisalabad
previously worked with
Adam Smith International,
USAID, the Punjab Board
of Investment, and most
recently Jazz.
“Aisha’s wide experience and expertise
fulfil the prerequisites for this important
leadership role, especially amidst the
pandemic, and it will prove to be an
asset for the company, while exploring
new modes of Coca-Cola brand’s
story-telling. We are looking forward
to her strengthening relations with our
stakeholders and supporting business
sustainability,” stated Fahad Ashraf, VP
and General Manager for Pakistan &
Afghanistan region at The Coca-Cola
Export Corporation.
In addition to two published books,
Aisha has been an opinion-former in
Pakistan and abroad for several years,
raising awareness about the need to
advance women economically. Her
opinion pieces have been featured
in The Guardian, BBC World and
NPR. In Pakistan, she has been a
regular contributor to The Express
Tribune and Dawn.com. She is a
Dean’s Scholar from San Jose State
University, California, in media and
communication, and is currently based
out of Islamabad.
progress. According to
KPT, the development
work was taking place
at the port for the fulfillment of future
requirements of the global shipping
sector.
Imran Ahad made HBFC MD
Imran Ahad has
been appointed as
Managing Director
& Chief Executive
Officer of House
Building Finance
Company Limited
(HBFC).
Imran is a seasoned banker with
vast experience of working in senior
leadership roles in many countries
across the Middle East as well as in
Pakistan. He has been associated with
some of the leading international banks
throughout the span of his career
including BCCI, Standard Chartered
Bank and NIB Bank where he held
various senior level positions. He has
recently moved back to Pakistan from
the UAE to take up this assignment.
Commenting on his new role as
managing director HBFC, Imran said,
“With a strong commitment to the
country; HBFC’s deep knowledge of the
housing sector uniquely positions us
to take advantage of the opportunities
that exist in the market.”
Shamshad elected as
first woman chairperson of
PSX board
For the first
time in the 73
years history
of Pakistan
S t o c k
Exchange
(PSX), a
w o m a n
chairperson
has been
elected on the board of directors on the
bourse. The decesion was taken in the
first meeting of the newly-elected PSX
Board held recently when the former
Governor of State Bank of Pakistan
(SBP) Dr Shamshad Akhtar has been
unanimously elected as the PSX Board
Chairperson.
Dr. Shamshad Akhtar needs no
introduction as she is a veteran of the
financial markets of Pakistan and has
also held the honourable position of
Governor, State Bank of Pakistan, in
the past.
TRADE CHRONICLE - May - Jun - 2021 - Page # 25
TRADE CHRONICLE
Indus Motor pays homage to Late Ali Habib pledging
support to Shaukat Khanum Cancer Hospital
As a tribute to the late Ali Suleman
Habib, Founding Chairman of Indus
Motor Company (IMC), the Company
has pledged support to the Shaukat
Khanum Memorial Cancer Hospital
& Research Centre
(SKMCH), through
a Rupees 60 Million
donation towards
the hospital’s under
construction facility at
Karachi.
Indus Motor’s Vice
Chairman, Shinji
Yanagi and Chief Executive, Ali Asghar
Jamali presented the cheque to Prime
Minister, Imran Khan, at Islamabad.
Sharing his thoughts on the occasion,
Mr. Jamali said: “IMC’s association
with the Shaukat Khanum Cancer
Hospital stretches back over two
Imran Yaqoob Minhas made
new Karachi police chief
Sindh government appointed Imran
Yaqoob Minhas as Karachi Police
Chief, who replaced the outgoing
Ghulam Nabi Memon.
According to details, AIG Karachi
Tariq Malik to take charge as
new Nadra chairman
New Nadra Chairman Tariq Malik will
take charge of his new responsibilities
soon. Tariq Malik is currently working
as adviser to the UN Secretary
General in New York. He has asked
the UN Secretary General to relieve
him from his responsibilities after his
appointment as Nadra chairman.
Tariq Malik is son of eminent scholar and
educationist Prof Fateh Muhammad
Malik. The Government of Pakistan had
advertised the post of Nadra chairman
to which 109 candidates applied. Tariq
decades. Cancer treatment in Pakistan
is very expensive and beyond reach
of the common man. This is where the
SKMCH steps in and provides the much
needed support to the less privileged
of our country and I congratulate its
management for a commendable job.
This pledge pays homage to our late
Chairman, Ali Habib san and the legacy
he’s left behind. It not only serves as
sadqae jaaria but also an aide-memoire
of his compassion and kindness that he
possessed.’
Ghulam Nabi Memon has been
transferred as the Additional
Inspector General (AIG) Special
Branch. Previously, Imran Yaqoob
Minhas was posted as AIG Special
Branch.
The new police chief had served as
Karachi’s IG Traffic, and AIGP Special
Branch.
Ghulam Nabi Memon has served as the
city police chief for nearly 10 months
after he was appointed to the post
on July 15 last year when the Sindh
government made a major reshuffle in
the provincial police department after
the passage of the new police order.
Malik was selected after tough
competition among the short-listed
candidates. He has also served
as Nadra chairman previously. He
is currently serving as chief technical
adviser in the UN.
The SKMCH at Karachi is the third and
most modern cancer facility being built
on 20 acres of land at DHA City where
over 75 percent cancer patients will
receive free cancer care. Construction
is expected to be completed over a
period of three years at an estimated
cost of Rs.13 billion with state-of-theart
diagnostic, radiation and treatment
facilities under one
roof, catering to
patients in Karachi,
Sindh and Baluchistan.
According to a WHO
report, in 2020 there
were over 178,000
new cancer cases and
177,000 plus cancer
deaths documented in Pakistan. Over
the next five years, the number of
prevalent cases has been estimated to
reach an alarming 329,524 cases, the
most common cancers in both sexes
related to breast, oral cavity, lung,
digestive tractand leukaemia.
FINCA appoints CEO
The board
of directors
of FINCA
Microfinance
Bank Limited
has appointed
Jahanzeb Khan
as the new chief
executive officer
(CEO) of the
bank, a statement said recently. An
experienced business leader, Khan will
assume responsibilities as the bank
CEO on June 14, 2021, it added.
“With Jahanzeb’s extensive and global
experience in fintech, we are delighted
to welcome him to the FINCA family
and believe that his rich diversity and
history of work lends itself to FINCA’s
vision for the future, said Zar Wardak
| vice president and division director of
FINCA Impact Finance.
We strongly believe that Jahanzeb is
the right leader for FINCA Pakistan and
we wish him all the best in his new role.”
Prior to Telenor Microfinance Bank,
Khan had been successfully associated
with one of the largest financial services
institutions (JPMorgan Chase & Co.),
Blue Chip Management Consulting firm
(Deloitte Consulting) and the Fintech
startup - First USA Bank (acquired by
JPMorgan), it added.
TRADE CHRONICLE - May - Jun - 2021 - Page # 26
TRADE CHRONICLE
KATI praises the appointment of Mahmood Maulvi as
Special Assistant for Maritime Affairs
Patron-in-Chief of Korangi Association
of Trade and Industry (KATI) SM Muneer
and President Saleem-uz-Zaman
praises the appointment of Senior Vice
President of Pakistan Tehreek-e-Insaf
(PTI) the Karachi Division, Mehmood
Moulvi as
Special Assistant
to Prime Minister
Imran Khan on
Maritime Affairs.
Welcoming the
move, they said
that Mehmood
Moulvi is
a beloved
personality of
the industrial
and business Mr. SM Muneer
community of
the country. Mahmood Maulvi is highly
regarded in business, political and
social circles for his ability and wisdom.
Engro Polymer plans to setup
Circular Plastics Institute
Engro Polymer and Chemicals Limited
(EPCL) plans to establish a Circular
Plastics Institute (CPI), a not-for-profit
thinktank, to promote research and
development in Pakistan’s circular
plastics economy. Pakistan faces the
pervasive problem of plastic pollution
as the country generated 3.9 million
tons of plastic waste in 2020, and it has
the highest percentage of mismanaged
plastic in South Asia.
In line with Engro’s central idea of
solving the most pressing issues of our
time, the CPI is aimed to be a pioneer
establishment in Pakistan that will
streamline efforts towards the circular
economy through knowledge exchange
and collaboration across Government,
businesses, and civil society sectors.
By rethinking its plastic problem,
Pakistan can benefit from effective
resource management to support job
creation and innovation in the economy,
while also conserving the environment
through lower plastic waste. Globally,
countries like Sweden and Germany
are reaping the benefits of promoting
a circular economy by making it a key
part of government policy.
According to Jahangir Piracha, CEO of
EPCL, “While the demand for plastics is
growing every year, the main problem
Earlier, Mahmood Maulvi had been
performing his duties as an advisor to
the Ministry of Coastal Affairs in a very
cheerful and skillful manner. During this
time he played a key role in resolving
employee issues.
Mehmood
Moulvi has vast
experience in
maritime affairs.
They hoped
that Mahmood
Maulvi, now in
a very important
position, would
play his full role
in identifying
and resolving all
Mr. Saleem-uz-Zaman issues related
to the business
community, port and shipping and
coastal affairs across the country.
is its responsible collection
and disposal. Customization of
global best practices, coupled
with local knowledge, is needed
to reach our sustainable development
goals. Once established, the Circular
Plastics Institute will take us a step
closer towards our vision of enabling
a zero-waste future. This platform
will also aim to increase economic
activity in Pakistan by instilling circular
economy principles, eliminating waste
and safeguarding natural resources.”
The CPI will be designed by
Maleeha Habib, a student of Harvard
University’s Extension School. “Engro’s
establishment and support of CPI
will open critical areas of opportunity
for Pakistan including collaboration
with international organizations,
conservation of natural ecosystems,
reduction of environmental impact,
improvement of health and well-being
for its citizens
and economic
development
through innovation”
said Will O’Brien,
Capstone Advisor,
Global Development
P r a c t i c e ,
Sustainability,
Harvard University
Division of
Continuing
Education.
Saleem Khan made director
press information Sindh
Muhammad Saleem Khan, Senior
Director of Information Department,
has been posted as Director Press
Information, Information Department
Sindh.
In this regard, a notification has
been issued by Services, General
Administration and Coordination
Department on Monday.
Muhammad Saleem Khan possesses
more than 31 years experience in the
field of media management and public
relations.
He has worked as Press Secretary
to Governor Sindh, Public Relations
Officer to Governor Sindh, Public
Relations Officer to Chief Minister
Sindh and various provincial ministers
and advisors.
Acknowledging the need of CPI
for Pakistan Fahd Khawaja, Chief
Commercial Officer of EPCL said “It
is important to provide a platform to
all stakeholders including students,
government officials, policy makers
and public at large to educate them
about the concept of circularity/circular
economy and recycling.”
A virtual signing ceremony of this
initiative was organized in the presence
of Jahangir Piracha (CEO of EPCL),
Will O’Brien (Capstone Advisor), Judith
Rodriguez (Capstone Instructor, Global
Development Practice, Division of
Continuing Education), Fahd Khawaja
(Chief Commercial Officer of EPCL),
Maleeha Habib (graduate student of
Global Development Practice, Harvard
University’s Extension School) and the
Management team of EPCL and Engro
Foundation.
TRADE CHRONICLE - May - Jun - 2021 - Page # 27
TRADE CHRONICLE
Vaccination Center in KATI
CCI Pakistan announces
USD 50 million investment
for 7thProduction Plant
Government of Sindh Spokesman,
Advisor to CM Barrister Murtaza Wahab
inaugurating COVID-19 vaccination
center in KATI, Parton-in-Chief SM
Muneer, President Saleem-uz-Zaman,
Zubair Chayya, Irfan Salam, Gulzar
Feroz, Johar Qandhari, Shaikh Umer
Rehan & Zaki Ahmed Sharif are
also present.
SBCA official to be deployed at KCCI: DG
Chairman Businessmen Group (BMG)
& Former President Karachi Chamber
of Commerce & Industry (KCCI) Zubair
Motiwala and President KCCI Shariq
Vohra presenting crest to Director
General Sindh Building Control
Authority (SBCA) Shamsuddin Soomro
during his visit to KCCI.
Law and order in Korangi will be maintained
A delegation of Coca-Cola Beverages
Pakistan Limited (CCI Pakistan), GM
Ahmet Kursad Ertin met with the Prime
Minister of Pakistan and announced
an investment of USD 50 million for a
Greenfield project the company plans
to set up in Haripur district, Khyber
Pakhtunkhwa (KP).
This will be CCI’s 7th the production
facility in the country. Construction of
this new state-of-the art plant site is
scheduled for completion by the first
quarter of 2022. It will mainly cater
to the beverage needs of northern
Pakistan.
During the meeting, Mr. Ahmet Kursad
Ertin presented the company as a
leading member of Pakistan-Turkey
Business Council and one of the
largest private Turkish investors in
Pakistan, which is paving the way for
other Turkish investors.
KATI President Saleem-uz-Zaman
presenting shield to SSP Korangi
Shahjahan Khan, Zubair Chhaya,
Danish Khan, Deputy Commissioner
Korangi Arfan Salam, SSP Traffic
Dutch ambassador visits
FCEPL’s dairy plant
The Ambassador of Kingdom of
Netherlands to Pakistan, Mr. Wouter
Plomp, visited FrieslandCampina
Engro Pakistan Limited’s state of the
art manufacturing facility in Sahiwal
this week for a guided tour of the dairy
plant and farms.
During the tour, Mr. Plomp was given
a thorough briefing on the operations,
Latif Siddiqui, Zaki Ahmed Sharif,
Nighat Awan, Syed Johar Qandahari,
Masood Naqi, Sheikh Fazale-Jalil and
SM Yahya were also present on the
occasion.
from milk procurement, milk collection,
and quality checks to supply chain
and production. A tree plantation
was also carried out along the dairy
plant as the Dutch Ambassador’s
contribution to the Billion Tree Tsunami
Project. FrieslandCampina Engro
Pakistan Limited is a Pakistani dairy
company which is a subsidiary of
Royal FrieslandCampina, a Dutch
multinational dairy cooperative.
Bringing 150 years of experience to the
dairy landscape of Pakistan, FCEPL is
committed to transforming the health
According to the delegation, the
proposed project will not only bring
major investment to the region but also
create direct and indirect employment
opportunities and revenue generation
for the Government as well as for third
party suppliers, vendors & distributors.
and wellbeing of Pakistanis by ensuring
the supply of safe and quality milk
while also enhancing the livelihood of
farmers. Headquartered in Karachi,
the Company operates two processing
plants in Sukkur and Sahiwal.
TRADE CHRONICLE - May - Jun - 2021 - Page # 28
TRADE CHRONICLE
Automobile News
General Tyre evolves to reiterate its market leadership
through technological advancements
Reflecting a fresh outlook, General
Tyre and Rubber Company (GTR) one
of the country’s premier suppliers of
tyres, is rebranding itself to resonate
more effectively with a younger
demographic which forms bulk of
the company’s customer base. The
organization will now carry a revamped
logo to assert itself as a name which
has been synonymous with road safety
and ride performance for more than 50
years. The new logo is a vibrant and
distinct take to rejuvenate the image in
the minds of its target audience.
GTR is one of Pakistan’s largest
manufacturer of tyres which provides a
complete range of tyres in all segments
across Pakistan. The company
was founded in 1963 and has since
upheld a strong presence within the
industry for being a leader through
innovation in product development and
passenger safety. GTR tyres undergo
rigorous testing both locally as well as
internationally in Europe and Japan.
May 2021: Industry sales falter
on extended Eid holidays
In May 2021, Auto industry sales fell
9% mom to c.15,700 units, on account
of lower production (down c.10% mom)
amid reduced working hours at the
tail-end of Ramadan and unusually
long Eid holidays (to tame the rise in
Covid-19 cases), in our view. Despite
the reduced work hours, the industry
was able to contain the decline, as
the resolution of supply-chain issues
enabled a ramp up of production
following the holidays. PSMC added
most units to total industry sales.
Among INDU models, Hilux volumes
cushioned the overall decline in sales
(up 22% mom), while the remaining
models fell by an average 15% mom.
We expect an uptick in both production
and sales in June, due to the easing
of lockdown restrictions and robust
demand. HCAR sold c.2,000 units in
May, with combined sales of Civic and
City of c.1,600 units, down 23% mom.
We believe that the decline was due
to the phasing out of old City, prior to
The company also makes sure that
90% of its raw materials are imported
from high quality and verified sources.
GTR the new logo is a personification
of the company’s dynamic vision to be
the leader in tyre technology through
quality improvement, competitive
prices, customers’ satisfaction and
the launch of the 6th generation
model (potentially in July). BR-V
sales rose a sharp 80% mom to
c.400 units.
PSMC’s Cultus sales rose a sharp
c.40% to c.1,800 units, due to
improvements in the supply-chain,
in our view. Despite the c.20% mom
decline, Alto sales remained above the
3,000 units’ level for the fifth sequential
month. We expect PSMC sales to
continue the present momentum in the
remainder of CY21, where the impact
of new competition is likely to remain
moderate, in our view. We highlight that
the positive Budget measures such as
the reduction in FED on the Economy
segment will boost volumes further.
Tractor industry recorded sales of
c.4,200 units, down 6% mom. AGTL
sales remained flattish mom, while that
of MTL declined a modest 9% mom to
c.2,900 units. We expect tractor sales
to resume the uptrend in the coming
months as farmer income continues to
expand, ahead of the Rabi harvesting
season. MTL sales may also benefit
meeting social obligations.
Speaking on the development, Hussain
Kuli Khan, CEO/M.D, General Tyre and
Rubber Company of Pakistan, stated;
“The visual cues like logos and taglines
speak volumes about what it stands for
and how it envisions to deliver the core
offerings to customers. Our rebranding
efforts focuses on distributing a
message that the company is staying
connected with its customer base in a
sustainable manner. Our products are
rigorously tested and designed with
Pakistani roads in mind to ensure user
satisfaction to the highest levels. The
revamped logo and identity signify this
approach with a fresh outlook towards
future prospects.”
General Tyre has and still supplies all
the leading automotive companies in
the country with their tyres. In 2021, a
milestone of manufacturing more than
40 million units since establishment
was achieved by the company. The
organization has also been recognized
by Forbes as Asia’s best under a billion
companies.
from an increase in exports. May
witnessed a drop in sales following
reduced working hours. The lowerfor-longer
interest rates and influx of
new models in the sector, will maintain
the robust demand for cars, in our
view. The removal of FED (2.5%) and
reduction in GST to 12.5% (vs. 17%)
for cars up to 850cc will spur additional
demand for the Economy segment, in
our view. PSMC being the only listed
economy segment OEM, is likely to
witness a strong positive reaction in its
stock price, in our view. We have an
Overweight stance on both the Auto
and Tractor OEMs, with Buy rating
on all the scrips under coverage. We
prefer PSMC (TP of PKR450/sh), INDU
(TP of PKR1,458/sh), and MTL (TP of
PKR1,460/sh), as our top picks.
TRADE CHRONICLE - May - Jun - 2021 - Page # 29
TRADE CHRONICLE
NBP, MTL sign MoU
A Memorandum of Understanding
(MoU) has been signed virtually
between National Bank of Pakistan
(NBP) and Millat Tractors Ltd (MTL)
for collaboration between the two
organizations for the development and
promotion of farm mechanization on a
nationwide basis.
The objectives of this MoU are
to increase the disbursement of
institutional credit for tractors and
farm implements to eligible farmers in
Pakistan through mutual efforts of both
Parties and to improve the financial
literacy of farmers and entrepreneurs
to encourage them to avail credit facility
from NBP.
IMC gives the Fortuner a
fresh look
Indus Motor Company (IMC), launched
the much awaited Toyota Fortuner
model lineup which has been given a
fresh look. Toyota Dealers across the
country are now booking orders from
customers with an upfront payment of
Rs 3 million, for a diesel or gasoline
engine available in three new variants
i.e. Fortuner Sigma 4 (4X4 1GD Hi
Diesel), Fortuner V (4X4 2TR Hi Petrol)
and Fortuner G (4X2 2TR Std Petrol).
The ex-factory RSP range between
Rs.7.99 million and Rs 9.65 million.
The Company’s Chief Executive,
Mr Ali Asghar Jamali, observed,
“The Fortuner is in a league of its
own. The SUV undeniably, is great
value for money, offering unmatched
Uber appoints new Country Head for
Pakistan, GM for MENA and Pakistan
Uber, the global
ride-hailing
platform that
seamlessly
connects drivers
with riders, has
announced the
appointment of
Shahid Khan
as the new
Panther Tyres, Al-Ghazi
sign pact
Panther Tyres has entered into a
contract with Al-Ghazi Tractors Ltd for
regular supply of tractor tyres which will
Millat Tractors Limited is Pakistan
leading Tractor Company, established
in 1964. They are engaged in the
manufacturing and marketing of the
world-renowned Massey Ferguson
(MF) tractors and a range of allied
agricultural and industrial implements.
They offer ten models of tractors in
the range of 50 hp to 100 hp, diesel
generating sets of capacities 12.5
kVA to 150 kVA and 3, 3.5 and 4 ton
forklift trucks. Presently MTL is holding
approx. 70% share of the local tractor
market in the country. NBP and MTL
will cooperate to identify and carry out
joint marketing activities to support
tractor purchases by farmers. Such
activities may include joint sales calls to
prospective customers and trade show/
performance and power which is why
customers have been vying its arrival.
The newly added features are sure to
please the discerning taste and needs
of our premium customers and new
buyers.”
Adding further, he said, “Under the
Government’s ‘Roshan Apni Car’
scheme, non-resident Pakistanis will
soon be able to purchase vehicles
for their families from the Company
Country Head for Uber
in Pakistan. He has
replaced Saad Naveed
Pall, who has been
promoted to the position of General
Manager across the Middle East, North
Africa, and Pakistan (MENAP) region.
Shahid Khan has been previously
affiliated with the company as the
Head of Operations in Pakistan. With
this promotion, Shahid will be heading
Uber in the country, and will be looking
have a positive impact
on the annualrevenue
andconsequently
increase the bottom
line of the company,
said PSX filing
recently.
seminar support and participation.
NBP is Pakistan’s largest publicsector
commercial bank, providing a
diverse range of products and services
to the agriculture sector. The Bank
is taking initiatives for increasing
market penetration and growth in the
priority sectors of the economy by
developing and strengthening value
chains between producers, processors,
exporters and financial institutions.
under the scheme. IMC is supportive
of this initiative and will facilitate such
customers with preferential vehicle
delivery times.”
All 3 variants have a new Prestigious
Exterior look, a more Premium Feeling
Interior, and for the Diesel variant, a
Performance Refinement. Notable
spec features in the flagship model
include new generation 1GD engine
with power, torque and fuel-efficiency
improvements, addition of Variable
Flow Control in the steering which
improves steering feel based on vehicle
speed, improved drive modes, Electrochromic
rear-view mirror and Balance
Shaft addition in the engine which
significantly improves the NVH of diesel
variant. To further augment the traction
control system, Limited Slip Differential
functionality has also been included.
after the overall Uber operations,
rider recovery, driver engagement,
community partnerships, with a strong
focus on innovation and advanced
technologies to bring enhanced user
experience on the app.
Shahid Khan holds a Master’s degree
from INSEAD and brings more than 18
years of experience across different
functions from various corporations,
including Maersk Line, K-Electric and
Careem.
TRADE CHRONICLE - May - Jun - 2021 - Page # 30
TRADE CHRONICLE
Ports, Shipping & railway
Tariq Haleem hails the appointment of Mahmood Moulvi
as Special Assistant to PM for Maritime Affairs
President Pakistan Stevedores’
Conference (G) Ltd, Tariq Haleem,
has hailed Mr Mahmood Moulvi as
Special Assistant to the Prime Minister
of Pakistan Imran Khan, for Ministry of
Maritime Affairs, Govt of Pakistan.
Special Assistant to the PM.
He expressed hope that Mahmood
Moulvi would trigger off speedy
improvement and progress of all Ports
of Pakistan.
Tariq Haleem expressed his heartiest
congratulations on Mahmood induction
into the cabinet, a notification for which
appointment was issued last Tuesday.
While congratulating Special Assistant,
the President Pakistan Stevedores’
Conference said that Mahmood Moulvi
has vast experience handling the dayto-day
business of shipping in all its
varied aspects. In addition, he has close
contacts with all the relevant persons in
the port and maritime sector, and we
are sure that he will be a role model
Shipping agents seek amendments
to trans-shipment rules
In its Budget 2021-22 proposals shared
shared with media, the Pakistan Ship’s
Agents Association (PSSA) urged the
government to facilitate re-export of
shipments by amending trans-shipment
rules as it was shifting businesses
from local ports to other facilities in the
region.
The PSSA asked
the government
to amend Rule
510A of SRO
03(I)/2021, Jan
4, 2021, related
to the “transshipment
of
imported cargo
from gateway
port to a foreign
port”. Under the
rules, only Full Con tainer Load (FCL)
or sealed cargo containers are allowed
for “International trans-shipment (IT)”
via seaports in Pakistan.
While ship agents have asked the
government to allow trans-shipment
of Less than Container Load (LCL)
cargoes too, which are forwarded
to the country of origin in the form of
Mahmood also announced it on
Twitter, thanking PM Khan and Federal
Maritime Affairs Minister Ali Zaidi for
“honouring” him with the position.
Tariq Haleem said, “We are sure that he
will always take a proactive approach in
the removal of all impediments causing
slow/negligible growth of Pakistan
merchant ships fleet, solving longpending
port-related projects – issues
and implementing the best facilities,
which are imperative for competing
with the regional ports”.
“grouped shipment” as
an international business
practice. Allowing LCL
cargo will enhance business
opportunities and revenue generation
for the sector, the association added.
The PSSA has asked for five
amendments in the Customs Act 1969,
including enhancing the limit of ocean
losses on bulk oil cargo to 0.50 per cent
of the manifested
quantity. The
other demand was
an amendment
in clause 24 (i)
of section 156
asking that the
“shipowner”
should be defined
as “shipowner not
as a local agent”.
The association
said that
amendments were needed in Section
55(1)(e) and 55(2) of the Customs Act
as under the current rules a shipping
agent is held liable for claims brought
by the owner of the goods even when
the agent has excluded his liability
under the Agency Agreement and in
situations where the agent was not
involved in default, negligence or willful
act.
Courtesy (DAWN)
Mahmood Moulvi
Tariq Haleem
We are confident that Prime Minister
Imran Khan’s vision of choosing a
person from the concerned sector
aware of ground realities will bear fruit.
Mahmood Moulvi “Hum main say hain”.
Tariq Haleem has assured Mahmood
Moulvi of the wholehearted support of
Pakistan Stevedores’ Conference (G)
Ltd (PSCGL) for the progress of ports
in Pakistan.
‘PQA’s reserve fund
crosses $700mln’
The Reserve fund of Port Qasim
Authority (PQA) has crossed $700
million (Rs110 billion mark) due to
strong financial performance of PQA
during the last three years, Minister
Maritime Affairs Ali Haider Zaidi said.
In his budget speech in the national
assembly, the minister added the
strong growth in PQA reserves is
possible due to hefty profit earned by
PQA in last three years and PQA will
make a record Rs19 billion net profit
this financial year which will be 23
percent higher than last financial year.
Interestingly, out of total PQA reserves
of Rs110 billion, Rs43 billion was added
during last three years compared
to Rs67 billion since PQA inception
in 1973. The minister said PQA has
paid Rs8 billion in taxes to federal
government during this financial year.
Zaidi said PQA has handled 57 million
tonnes this year which was 12 percent
higher than last year.
The minister added that he had not
allowed sale of a single acre during his
tenure and all PQA profits are based on
port commercial operations.
TRADE CHRONICLE - May - Jun - 2021 - Page # 31
TRADE CHRONICLE
Hutchison Ports Pakistan, the country’s
state-of-the-art deep-water port,
welcomes a new regular shipping
service brought by the consortium
comprising of Global Feeders, Sinokor,
Heung A, and Sea Lead. It strengthens
trade links through providing ease
of access to the booming markets of
South-East Asia, China, and Korea.
The service will provide much-needed
extra capacity for Pakistani exporters
through non-vessel operating common
carriers (NVOCCs) as well as mainline
operators. This service includes 5 ships
operating on a weekly basis.
All Pakistan Customs Agents
Association (APCAA) has suggested
amendments in the measures
proposed by the federal government
in the federal budget 2021-22 to avoid
anomalies in the customs clearance
process.
Talking to media, Arshad Jamal,
Chairman APCAA said that the
association had forwarded its proposals
to the Federal Board of Revenue (FBR),
suggesting several amendments in the
measures recommended in the federal
budget 2021-22 to avoid glitches in the
customs clearance process after its
implementation.
He said that the pasting of the invoice
and packing the list is a must on the
containers/LCL shipments for the
immediate release of consignments
before the filing of goods declarations
and no shipping agents or air cargo
agents accept any consignment without
the goods declarations, internationally.
However, in Pakistan, the shipping
agents bypass this condition and
Commenting
on this latest
development,
Raymond
Chan, General Manager & Head of
Business Unit of Hutchison Ports
Pakistan delightedly remarked:
“Pakistan’s economic growth in future
substantially counts on international
trades, especially exports. Hutchison
Ports Pakistan are always at the
forefront of introducing groundbreaking
service offerings that create seamless
trade links for Pakistan. CSC/SIS-II
is another cornerstone we reached
to bring vast arsenal of Pakistan’s
tradable commodities to the world”.
New shipping service commences
regular calling at Hutchison Ports Pakistan
Hutchison Ports Pakistan has been
Anomalies in clearance process: APCAA suggests
amendments in budget measures: chairman
Aden Ports Development Company
(APDC), has made the switch on
ZODIAC Terminal Operation System
(TOS) at their Aden Container Terminal
in Aden, Yemen, bringing the
cuttingedge technology into full-fledged
application at the terminal.
As one of ZODIAC’s first customers
transport the consignment against
international practices.
In the federal budget 2021-22, it is
proposed to impose heavy penalties on
the importers if the shipment invoice/
packing list was not found or pasted on
containers/packages or parcels.
He said that this condition would
not only increase examination and
create containers backlog at the
already congested ports but it would
also negate the concept of the single
window project, being propagated by
the government of Pakistan. Moreover,
he said that this condition should
be declared mandatory but without
penalties as the legal instrument
was goods declaration but not such
documents.
For the implementation of this condition
smoothly, the APCAA has suggested
that if the importer of the goods
mentioned the condition “pasting of
invoice/ packing list” on or inside the
containers or on LCL shipments in
ZODIAC Terminal Operating System delivers
upgrades to Aden Container Terminal
since 2012,
APDC has
c h o s e n
to stay
with ZODIAC software solutions in
upgrading their Zodiac 5.0 to Zodiac
7.1, which is one of the most advanced
and user friendly systems on the market
for ports and terminal management.
This means the enhancement of the
terminal’s operations will ensure a
smooth migration even during the
persistently uplifting trading connectivity
of Pakistan, by not just attracting and
handling at world-class productivity the
biggest container ships the country has
ever received, but also investing on
state-of-the-art technologies in cargo
handling and logistics. The organization
is constantly recognized by local and
international shipping community on
incredible agile performance as well as
customer-centric services.
the letter of credits, bank contracts,
performa invoice then no penalty may
be imposed on the importer of goods.
Furthermore, APCAA also
recommended that the shipping line
or shipping agent to ensure that the
invoice/ packing list was pasted on
containers or LCL shipments as per
international practices and mention
the invoice no, date, and amount on
the bill of lading and import manifest
and in case of no compliance, the
shipping lines or shipping agents would
be penalized with a maximum of Rs
25,000.
APCAA also proposed that all goods
declarants should be restricted to file
the true declarations along with the
copy of the bill of lading, transactional
invoice, and packing list, letter of credit,
bank contract, or any other banking
instrument, concessionary certificates
/NOC in terms of IPO and customs
tariff. And, if the goods declarants fail to
upload such documents, his profile may
be listed for the red channel and the
authorities may issue show cause and
impose the penalty of not more than Rs
25,000 against him, APCAA suggested.
COVID-19 pandemic, as ZODIAC
continues to provide to its customers
with complete support in accessing
global supply chains with high efficiency
and capacity.
TRADE CHRONICLE - May - Jun - 2021 - Page # 32
TRADE CHRONICLE
Telecommunication News
PTA renews cellular (NGMS) licenses
of three operators in AJK & GB
The cellular license renewal ceremony
for Azad Jammu & Kashmir and Gilgit
Baltistan was held recently at PTA
Headquarters, Islamabad. Three
Cellular Mobile Operators i.e. Telenor
Pakistan, PMCL (Jazz) and
PTML (Ufone) have deposited
payment (50% of the PTA
determined license fee)
amounting to PKR 3.19 Billion
against their license renewal
fee with PTA.
The event was attended
by Federal Secretary for IT
& Telecommunication, Dr.
Muhammad Sohail Rajput,
Chairman PTA, Major General
Amir Azim Bajwa (R); Member
Finance PTA, Muhammad
Naveed and Member
Compliance & Enforcement
PTA, Dr. Khawar Siddique
Khokhar; Executive Director,
Frequency Allocation Board (FAB);
Joint Secretary Gilgit Baltistan Council;
Deputy Secretary (Finance) and Deputy
Secretary (Welfare & Development)
AJ&K Council and senior officers of
PTA. CEOs of Telenor, Jazz and Ufone
PTCL signs MoU with GCU for providing
premium ICT services
Pakistan Telecommunications
Company Limited (PTCL), signs a
Memorandum of Understanding (MoU)
with Government College University
(GCU), during a ceremony organized
at GCU campus in Lahore. Under this
MoU, PTCL will offer students, alumni
and staff members with exclusive
discounted packages for premium
ICT services including seamless
telephone and internet services.
On the occasion, Nauman Durrani,
Executive Vice President (EVP)
Sales, PTCL, said, “We are glad to
partner with GCU and contribute to
the education sector by providing
students and staff members with
discounted packages to enjoy seamless
ICT service. With this collaboration
PTCL strives to provide cost-effective
connectivity solutions equipped with the
along with senior
representatives of
CMOs also attended
the event.
On the occasion, Chairman PTA lauded
the efforts of the cellular operators
for playing a crucial role in providing
connectivity across these regions. He
also appreciated the tireless efforts of
concerned officials of PTA, FAB and
MoIT for timely conclusion of the renewal
process. He further stated that AJ&K
and GB are the prime areas of tourism
in Pakistan and the license renewal will
latest ICT services
that will empower
students to focus
on their ideas and
execute them for a better future of
Pakistan. Through such partnerships,
pave the way for provision of 3G/4G
and Next Generation Mobile Services
to the consumers of these areas as
well to the tourists. Continuous efforts
are being made to bring state of the art
telecommunication services to far flung
areas enabling access to a multitude of
opportunities for businesses, education
and health.
On this occasion Secretary
IT & T, Dr. Muhammad Sohail
Rajput congratulated the
mobile operators on renewal of
licenses. He said that AJ&K and
GB have immense importance
in government policies, and
it is the government’s priority
to provide advanced telecom
services in these regions.
He said that there are vast
opportunities for public-private
collaboration in various sectors
including telecoms.
It is pertinent to mention that
due to license renewals,
this will not only contribute towards
uninterrupted provision of better
telecom services to the people of AJ&K
and GB but will also help in promotion
of competition and investment in the
telecom sector.
we endeavor to further strengthen
educational institutions across Pakistan
such as GCU that play a pivotal role in
grooming of the students for nationbuilding.”
On the occasion, Prof. Dr. Asghar Zaidi
(T.I), Vice Chancellor, Government
College University, Lahore, said “We
are delighted at this partnership with
PTCL that will enable our education
system to efficiently serve all
stakeholders with access to quality
ICT services. With advancement in
technology, better connectivity has
most certainly become a prerequisite
for academic excellence. Tapping
into PTCL’s vast infrastructure and
expertise, it will certainly support our
increasing demand for internet and
telecom services that would most
certainly benefit our students and
teachers in a multifaceted way.”
PTCL has always been at the forefront
to provide latest and innovative
solutions to cater to the ever-growing
demand for best-in-class internet
services in Pakistan.
TRADE CHRONICLE - May - Jun - 2021 - Page # 33
TRADE CHRONICLE
Jazz collaborates with USF to provide 4G services
in Jacobabad, Shikarpur & Kashmore
Jazz, Pakistan’s number one 4G
operator and the largest internet and
broadband service provider, has
collaborated with the Universal Service
Fund (USF) to provide 4G services in
Jacobabad, Shikarpur & Kashmore
districts of Sindh. The contract was
signed by Haaris Mahmood Chaudhary,
CEO – USF and Aamir Ibrahim, CEO
– Jazz. Syed Amin Ul Haque, Federal
Minister for Information Technology
and Telecommunication; Asad
Umar, Federal Minister for Planning,
Development, Reforms and Special
Initiatives; and Mian Muhammad
Somroo, Federal Minister for
Privatization graced the occasion
with their presence.
Aamir Ibrahim, CEO – Jazz, said,
“Jazz invested US$ 462 million
during the last two years mainly
to expand its 4G footprint in rural
and semi-urban areas and bridge
the digital divide as we collaborate
with the Government of Pakistan in
realizing the #DigitalPakistan vision.
Today, close to 60% of Pakistan’s
Zong offers amazing postpaid
roaming package for Singapore
After introducing unbeatable
international roaming offers for many
countries in the past, Pakistan’s
connectivity leader, Zong 4G, has now
come up with an amazing roaming
offer for Singapore. The offer will help
Pakistanis travelling to Singapore
for business or leisure keep in touch
seamlessly with their family and friends
back at home.
Strengthening its position as a key
communications solutions provider
for corporate and government
organizations, Zong 4G
has now joined hands
with Gul Ahmed Textile
Mills Pvt. Ltd., one of
Pakistan’s largest textile
mills, to become its
connectivity partner.
The partnership
between the companies
was formalized, after
population has access to Jazz’s 4G
network. Through this contract, Jazz in
collaboration with USF will equip over
a million unserved residents of the
three districts with high-speed mobile
broadband, creating socioeconomic
opportunities and uplifting lives.”
Addressing the ceremony, Syed Amin
Ul Haque said that the Ministry of IT
and Telecommunication has launched
nine projects worth over PKR 8.48
Billion in the last two years focusing
on improvement of network coverage
and provision of high-speed mobile
“The Singapore
Postpaid Roaming
Offer is in continuation
of our IR offers that
are designed to deliver the
best connectivity solution to
Pakistanis travelling abroad.
Helping them always stay
connected with their loved
ones in Pakistan, as they travel
internationally, is Zong 4G’s
top priority. We will continue
enhancing our roaming portfolio
through more innovative products and
Zong 4G joins hands with Gul Ahmed Textile
Mills as connectivity partner
the signing
of contract
between
the senior
management of Zong 4G and Zain
Bashir, Vice Chairman of Gul Ahmed
broadband services along with a
number of optical fiber cable projects
in Sindh. The completion of these
projects will provide facilities to 17.7
Million people in 19 districts of the
province. Currently, 1,900 km of optical
fiber cable is being laid which will serve
educational institutions, health centers
and businesses, allowing citizens to
access high-speed internet. While
addressing the ceremony, Asad Umar
and Muhammad Mian Soomro thanked
Syed Amin Ul Haque for launching
projects worth billions of rupees for the
province of Sindh.
Haaris Mahmood Chaudhary, CEO
– USF said, “Federal Minister of IT
and Telecommunication, Syed
Amin Ul Haque has given special
instructions to spread the benefits
of Information and Communication
Technologies (ICTs) to all corners
of Pakistan regardless of province,
region, language or political
affiliation. This project will benefit an
unserved population of 1.09 Million
in 271 unserved mauzas, there by
covering an unserved area of 3,996
sq. km. of the three districts. The
project will be completed within 12
months.”
services for our customers,” shared
Zong’s official spokesperson.
Textiles Mills in the presence of other
senior representatives.
Through the partnership, Gul Ahmed
Textile Mills will get access to Zong
4G’s state-of-the-art business
solutions, enabling
them to digitalize their
operations and deliver
a seamless connectivity
experience.
These products and
services from Zong are
designed to cater to the
ever-evolving needs of
corporate customers.
TRADE CHRONICLE - May - Jun - 2021 - Page # 34
TRADE CHRONICLE
Jazz has secured a PKR 50 billion
syndicated credit facility from a banking
consortium led by HBL. This 10-year
facility will be used to finance the
company’s ongoing 4G network rollouts
and technology upgradation.
This is the first of its kind facility
extended to the telecom sector in
terms of the amount and tenor. The
facility is fully subscribed by HBL, the
consortium’s investment agent and
mandated lead arranger. Other banks
who are also acting as the mandated
lead arrangers and advisors on this
deal include: United Bank Limited,
National Bank of Pakistan, MCB Bank,
Bank Alfalah, Allied Bank Limited,
Askari Bank Limited, Bank of Punjab,
Meezan Bank Limited and Faysal Bank
Limited
As the country’s leading digital services
provider, Jazz has over 69 million
subscribers
and more
than 28
million 4G
users nationwide. Over a period of two
years, the company has invested USD
462 million on 4G infrastructure. The
Pakistan Credit Rating Agency Limited
(PACRA) has also recently upgraded
Jazz secures telecom sector’s largest credit
facility to support 4G network rollout
Jazz’s long-term rating to ‘AA’ with a
stable outlook, depicting the company’s
strong financial depth in the industry.
“We continue to drive the digital
Pakistan agenda by improving digital
infrastructure, bridging the digital divide
and focusing on financial inclusion.
We are enabling societies by investing
State Bank of Pakistan and JazzCash join hands
to increase financial literacy among youth
National Institute of Banking and
Finance (NIBAF) – a subsidiary of the
State Bank of Pakistan (SBP), and
JazzCash, Pakistan’s leading FinTech
Company, have signed a Memorandum
of Understanding for increasing
financial literacy amongst youth of
Pakistan. The two parties aim to jointly
promote financial literacy through the
engaging and interactive game called
“PomPak – Learn to Earn” developed
under SBP’s project, National Financial
Literacy Program for Youth (NFLP-Y).
PomPak, utilizes a story-based
narrative by following the journey
of two families setting up a small
entrepreneurial venture. This helps to
keep the
players
engaged
w h i l e
effectively inculcating ethical behavior
and financial skills such as budgeting,
saving, and banking. PomPak is
available in both English and Urdu
for three age groups: children (9-12);
adolescents (13-17); and youth (18-
29). Anyone who completes the course
is awarded a certificate of financial
literacy jointly from NIBAF and NFLP-Y.
It can be played on a desktop computer
or can be downloaded from Google
Play and the App Store for other
devices.
JazzCash, under its partnership, is
going to provide SBP access to more
than 26 million Pakistanis by promoting
K-Electric and Easypaisa collaborate to offer
convenient digital bill payment options
K-Electric (KE), Karachi’s electricity
provider and Easypaisa, Pakistan’s
leading provider of digital financial
services have partnered together to
extend a convenient and hassle-free
bill payment solution for the power
utility’s customers.
The partnership with Easypaisa offers
5% cashback (up to PKR 100) to new
Easypaisa customers on their first
KE bill
payment.
Through
this partnership, KE is encouraging
customers to use digital modes of
payments from the comfort of their
homes.
Furthermore, Easypaisa’s extensive
agent network of 170,000 +
registered agents spread across the
country will also facilitate customers,
especially those residing in the
in entrepreneurship, digital skills and
literacy. This facility is an integral step
towards ensuring that people are not
bound by the limitations of geography,
gender, or socioeconomic background,
in harnessing the power of the internet.
A transaction of this size is a testament
to the trust the financial community has
on Jazz’s strong financial profile and
its leadership position in the telecom
industry,” said Gabor Kocsis, Chief
Financial Officer, Jazz.
Muhammad Aurangzeb, President
& CEO - HBL commenting on the
occasion stated, “We are delighted
to have led this landmark transaction
in the Telecom sector. HBL has a
long-standing relationship with Jazz
spanning more than two decades.
For the Bank, such transactions serve
HBL’s strategic priority of supporting
the promotion of digitalization across
the country, while underscoring HBL’s
commitment to stand by the robust
and progressive telecom sector of
Pakistan.”
the PomPak application on its platform.
This will help the application reach
a wider audience, thus increasing
its usage and eventually promoting
financial literacy of the nation resulting
in a highly positive socio-economic
impact.
To know more about PomPak, please
visit: www.nflpy.pk/PomPak
outskirts of the city where access to
conventional banking facilities is limited.
TRADE CHRONICLE - May - Jun - 2021 - Page # 35
TRADE CHRONICLE
Wateen Telecom partners with Huawei to
upgrade its nationwide Data Transmission
Network to 10 TB capacity
Wateen Telecom, a leading ICT company
with a fiber infrastructure across 250
cities in Pakistan, has signed an
PSX signs NBP as market maker
for govt listed securities
National Bank of Pakistan (NBP) and
Pakistan Stock Exchange (PSX) have
signed an agreement to onboard NBP
as a ‘market maker’ for government
securities listed on PSX.
The signing ceremony was held at the
PSX trading hall in the presence of NBP
President Arif Usmani, PSX MD and
CEO Farrukh H Khan, NBP Treasury
and Capital Markets Group Chief
Muhammad Ismail Usuf, and senior
management of both organisations.
Proceedings started with the gong to
mark the beginning of the trading day.
PSX MD welcomed NBP as Market
Maker for debt securities on PSX.
“The development and growth of debt
capital market is an important strategic
objective of Pakistan Stock Exchange.
It is also a key aspect of the capital
market development plan as a large
and liquid debt capital market is critical
for the economic development of
Pakistan.”
It was for this reason that the SECP
and PSX recently introduced regulatory
agreement with
Huawei Pakistan
to modernize
its countrywide
data transmission
network. Wateen will be deploying a
state-of-the-art Optical Transmission
Network from Huawei to revolutionize
digital landscape
of the country. The
agreement was
signed in Lahore at
the Wateen Telecom
head office by Adil
Rashid, CEO Wateen
Telecom and Mark
Meng, CEO Huawei
Pakistan.
changes allowing banks to
become market makers.
He said that the inclusion of
NBP, one of the largest top-tier banks
in Pakistan, as market maker of debt
securities on PSX was a momentous
occasion for the on-going collaboration
between banks and the capital markets
to develop, deepen, and expand
Pakistan’s debt capital market.
NBP President and CEO Arif Usmani
said, “The market maker status is a
landmark moment for NBP and we are
grateful to PSX for this opportunity. It is
a pleasure to visit the Pakistan Stock
Exchange
for the gong
ceremony
w h i c h
signifies the
commitment
of NBP and
PSX to work
together for
deepening
of debt and
capital markets
in Pakistan
and improving financial intermediation.”
He said that NBP was committed
to playing a role in diversifying the
investor-base of debt securities by
tapping digital distribution channels to
promote investment and develop the
debt securities market in Pakistan.
The market maker initiative would
allow a much wider group of investors
to participate in the government debt
market. It would facilitate capital market
development by mobilising domestic
resources and channelling them
effectively.
Mobilink Microfinance
Bank, CARE International
in Pakistan sign MoU to
strengthen entrepreneurial
and financial ecosystem
Pakistan’s largest digital bank, Mobilink
Microfinance Bank (MMBL) has joined
forces with leading global humanitarian
and development non-governmental
organization, CARE International
in Pakistan (CIP), through a recent
Memorandum of Understanding (MoU),
to foster financial inclusion for small
and medium businesses, especially
those led by women to support their
sustainable development.
President and CEO MMBL, Ghazanfar
Azzam, and Adil Sheraz, Country
Director, CIP signed the MoU in
Islamabad, in presence of senior
officials from both organizations. The
partnership will facilitate financial
inclusion, and business development
skills and linkages for Pakistani
entrepreneurs especially women,
to positively strengthen Pakistan’s
economy, in line with the Government
of Pakistan’s national development
objectives and the National Financial
Inclusion Strategy (NFIS).
Mobile phones worth
$1.684bn imported: PBS
Pakistan
imported
m o b i l e
phones
worth $1.684
billion during
July-April (2020-21) compared to
$1.027 billion during July-April (2019-
20), showing growth of 63.98 percent,
according to the Pakistan Bureau of
Statistics (PBS) data.
The overall telecom imports into the
country during the period under review
increased by 43.76 percent by going
up from $1.337 billion in 2019-20 to
$1.923 billion during the current fiscal
year.
TRADE CHRONICLE - May - Jun - 2021 - Page # 36
TRADE CHRONICLE
Steel & Allied Industry
Steel industry in Pakistan
registered no growth in
1H-FY21
The State Bank of Pakistan while
taking the stock of performance of steel
industry in the first half of the ongoing
fiscal year has pointed out that the
steel sector was unable to register a
growth in H1-FY21, but its contraction
narrowed significantly as the year
progressed. Meanwhile, analysis of the
sector on a quarterly basis reveals that
the output of the sector grew by 6.0
percent in Q2-FY21 against a decline
of 6.8 percent in the same period last
year. However, this rebound in Q2-
FY21 was not enough to offset the
decline in the preceding quarter, which
resulted in a slight overall contraction
during the first half of the fiscal year.
Demand for billets, primarily used in the
construction industry, remained strong.
This led to a 39.1 percent expansion in
the output during H1-FY21 compared
to a contraction of 25.9 percent in same
period last year. On the other hand,
the demand for flat steel products
remained subdued owing to a drop
in the production of appliances in the
country. However, robust demand from
the automobile sector compensated for
some of the losses from the appliances
segment. The increase in demand
from the vehicle industry aided in
narrowing the contraction in the flat
steel production from 30.1 percent in
the preceding quarter to 22.4 percent
in Q2-FY21
ASTL: 3QFY21 Corporate
Briefing Session
The ASTL - Amreli Steels sold a total of
272,198 Tons of rebars during 9MFY21
(↑19% YoY). Wherein, the prime and
subprime rebars sold were 262,381 and
9,817 Tons, respectively. On the other
hand, the sales dispatch in 3QFY21
amounted to 89,290 tons (↓10% QoQ).
As a result, the company’s top line
clocked in at PKR 27.2Bn and 9.8Bn in
9MFY21/3QFY21, up 27/26% YoY.
ASTL managed to sell at an average
price of PKR 109,480/ton in 3QFY21
(↑14% QoQ), compared to average
price of PKR 95,960/ton in 2QFY21.
Government policies are
disabling steel sector
All major steel industry associations
have joined hands to warn the
government of disastrous policy
measures that will hurt the economy
and national interests in a big way. The
most pressing issue is to reverse the
decision of moving the steel industry
from FED to GST regime as it will give
a free hand to over 40 units located in
FATA to illegally sell tax exempt goods
in major markets across the country.
This will directly hit the tax paying and
quality compliant sector of the industry,
causing de-industrialization, closure
of mills, price distortions and most
importantly, an estimated revenue loss
of PKR 50 billion for the government.
Due to weak administrative controls,
many rent seekers have moved their
steel manufacturing facilities to the
FATA areas, taken advantage of the
tax incentives
and abused the
law by selling
tax-free goods
in settled areas
that undercuts
the tax paying
industry. Over
the past few
years, the steel
capacity in FATA
has risen to
approximately 1 million tons per annum
and represents about 16 percent of
the long steel output of the country.
Continuation of this practice will lead to
closure of many steel units, particularly
in Punjab, over the next year.
The government has also rejected
another proposal of the steel industry to
reduce turnover tax on its downstream
retailers to 0.25%. Currently, most
steel retailers are forced to work in an
undocumented environment due to the
huge incidence of turnover tax. There
is no reason for the retailers to join
the tax net as the turnover tax wipes
out their very small profit margins
on selling the steel commodity. By
rejecting the proposal, the government
does not want to create documentation
in the steel supply chain, improve
ease of doing business and facilitate
stakeholders towards compliance.
Furthermore, PSMA has also lodged
its complaints to the Ministry of
Commerce for not rationalizing the
industry’s tariffs as agreed upon. The
National Tariff Policy aims to reduce
import tariffs on imported raw material
that is not manufactured in Pakistan
and abstain from revenue-centric tariff
measures. However, the government
has not been able to walk the talk on
its own National Tariff Policy and has
kept tariffs on primary raw material
for revenue reasons, which makes
the domestic industry uncompetitive.
Currently, the industry’s raw material is
taxed at 7% - 10% on import.
In the backdrop, the industry is
struggling to keep pace with volatile
and changing raw material prices
and costs. Steel scrap, industry’s raw
material, has risen from USD 300 at
the beginning of the fiscal year to USD
535 currently, translating into a PKR
cost increase of 37,000. Further, duties
and taxes on
raw materials
account for
another PKR
5,500 per ton.
Electricity has
increased by
37% this fiscal
year, climbing
from PKR 13.5
to PKR 18.5 and
causing a cost
escalation of over PKR 4,000. As such,
cumulative cost increases are above
PKR 40,000 per ton, which is partly
absorbed by the industry and balance
has to be passed on by increasing
prices. Industry experts believe prices
must rise again as recent electricity and
raw material cost increases have not
been passed on and manufacturers are
working on razor thin margins.
Pakistan Association of Large Steel
Producers (PALSP) appeals to the
government to pay attention to the
proposals submitted in order to avert a
major crisis within the industry that will
jeopardize various national objectives
such as PM’s Naya Pakistan Housing
Scheme, PSDP Projects, CPEC
Projects and various other commercial
and residential projects that are the
cornerstone of a growing economy.
TRADE CHRONICLE - May - Jun - 2021 - Page # 37
TRADE CHRONICLE
Travel World
PIA to complete its business
plan in 3 months: CEO
Pakistan International Airline (PIA) is
going to complete its business plan in
three months. This was stated by CEO
PIA Air Marshal Arshad Malik during a
live session held on the airline’s official
Facebook page to answer queries of
customers and general public recently.
He said that the airline’s business plan
was being formulated by IATA on the
instructions of the government and it
would be completed in three months,
adding that PIA was going to induct
narrow body aircraft in its fleet and was
in the process to return the aircraft ATR
72 aircraft which were acquired many
years ago on expensive lease.
Answering queries about in-flight
entertainment, he said that PIA would
gradually replace its aircraft with
newer versions equipped with in-flight
World’s largest cargo plane
lands at JIAP
The world’s largest cargo plane
Antonov An-225 Mriya recently landed
at Jinnah International Airport (JIAP),
Karachi.
According to details, the flight ADB-
3859 arrived at the Karachi airport
at around 11:27am from Kabul. The
similar six engine cargo aircraft had first
landed at the JIAP on April 20, 2018.
The only outsized cargo jet, having a
wingspan of 88.4 meters, a height of
18.2 meters, and a take-off weight of
AirSial launches Islamabad
to Quetta service
Deputy Speaker National Assembly
Qasim Khan Suri has inaugurated
AirSial Airline services from Islamabad
to Quetta here at Islamabad Airport.
Speaking on the occasion, he remarked
that initiation of private domestic airline
service from Islamabad to Quetta would
connect Balochistan to other parts
of the country, said a press release.
He also stated that easy access to
Gwadar Port and China Pakistan
entertainment system.
He said that the UK
government still followed the
EU rules as were imposed
before Brexit, regular
correspondence with UK
authority was being held for
review; adding that PIA had
been certified by EASA and
safety certification was valid till
2023, however, the restrictions
were now based on audit of
airlines’ regulator that was
CAA- Pakistan but not PIA.
“PIA is making HR restructuring
and rationalization and now regular
promotions of all departments are
being conducted purely on merit.
He said that the flying academy had
been closed as PIA presently did not
have the financial support, equipment
and aircraft for the flying academy.
Moreover, he said that PIA was the
1,410,958 pounds,
was designed and
built in the 1980s
in the then Soviet
Union.
The largest aircraft
having registration
UR-82060 operated
several relief
flights, transporting
pandemic-related
humanitarian and
medical goods before
its 10 months break in
August 2020.
Economic Corridor (CPEC) related
projects would
capitalize the
opportunities
of growth and
investment in
province. He said
that the successful
operation of
domestic AirSial
Airline Services
for Six cities
especially for
Quetta would
bring ease and
comfortable
Mr. Arshad Malik
only airline operating in Pakistan
which operates on social economic
routes which other domestic airlines
do not operate and the airline was
still operating flights to domestic
destinations for national cause despite
being commercially unviable just to
provide easy access and connections
from such cities to rest of Pakistan and
the world.
traveling to people of Balochistan.
TRADE CHRONICLE - May - Jun - 2021 - Page # 38
TRADE CHRONICLE
Banking & Insurance
NBP declares Rs7.7bn PAT;
87pc up YoY
For the quarter ended March 31, 2021,
the National Bank declared a profit
before tax of Rs 12.6 bn; whereas profit
after tax closed at Rs 7.7 bn, 87 percent
up, YoY. The Bank’s earnings per share
increased from Rs 1.94 in Q1 ’20 to
Rs 3.62 in Q1 ’21. Net profit translates
into after-tax Return on Average Assets
and Return on Average Equity at 1.0
percent and 15.7 percent, up from 0.5
percent and 10.0 percent in Q1 ’20,
respectively.
Given the significant drop in
the policy rate as compared
to the same period last year,
gross mark-up/interest income
was Rs 48.5 bn being 33.2
percent lower, YoY. Likewise,
the interest/mark-up expense
also dropped by 52.0 percent
at Rs 26.9 bn. Consequently,
net interest/mark-up income of
the Bank stood at Rs 21.6 bn,
i.e. 30.3 percent higher, YoY.
Despite the subdued economic
activity during the year, nonmark-up/non-interest
earning
HBL invests Rs176 million
in Finja
Habib Bank Limited (HBL) has invested
Rs176 million ($1.15 million) in the
last tranche of Finja’s Rs1.56 billion
($10.15 million) Series A1 round, a
statement said. HBL becomes the first
bank in Pakistan to invest in a digital
fintech startup, it added.
Habib Bank joins an
impressive list of leading
global fintech funds that have
invested in Finja, including
BeeNext, Vostok Emerging
Finance, Quona Capital, and
ICU Ventures.
All investors from previous
rounds topped up their
investment in Finja’s
Series A1 round. For HBL,
an investment in Finja
serves two of the bank’s
strategic priorities, making
investments into digital
of the Bank closed 2.4 percent higher
at Rs 8.5 bn (Mar ‘20: Rs 8.3 bn).
Accordingly, total revenue of the Bank
was 21.0 percent up YoY at Rs 30.1 bn
(Mar ‘20: Rs 24.9 bn).
Administrative expenses remained
controlled and recorded a marginal
increase of 3.8 percent YoY to close
at Rs 14.3 bn. Cost-to-income ratio
of the Bank improved to 47.7 percent
from 55.5 percent in Q1 ’20. During
the year, NPLs of the Bank increased
by 6.6 percent to close at Rs 182.5
bn (Dec’20: Rs 171.3 bn). Proactively
financial inclusion and development
finance companies, especially ones
making an impact in agriculture and
SMEs, as these are the backbone of the
economy, and proactively reinventing
HBL to become a “technology company
with a banking licence”, it said.
Since the beginning of the Covid-19
pandemic in April last year, Finja has
scaled its digital lending portfolio by 550
percent, disbursing over 50,000 digital
moving from ‘incurred’ to ‘expected’
credit loss model, the Bank created
provision charge of Rs 3.11 bn to make
its balance sheet more resilient in the
prevailing circumstances.
On the balance sheet side, the Bank’s
capital discipline has improved its
Common Equity Tier 1 capital ratio to
16.50 percent (Dec’20:14.99 percent)
and Total Capital Adequacy Ratio to
21.91 percent (Dec’20:19.78 percent).
This capital position enables the Bank
to absorb shocks in the foreseeable
future and leverage emerging
opportunities to create value
for its shareholders.
The Bank’s liquidity and
net stable funding ratios
improved to 156 percent and
256 percent, respectively. Net
Assets at end March ’21 stood
at Rs 269.8 bn, translating into
break-up value per share at
Rs 126.8, which is 30 percent
up from Rs 97.2 at end 2018.
The Bank’s end of year total
assets closed at Rs 3,340.3 bn
i.e. 11.0 percent higher than
Rs 3,008.5 bn level of the year
end 2020.
loans to Micro, Small, and Medium
Enterprises (MSMEs).
Despite being the backbone of the
economy, small businesses in Pakistan
have traditionally not been able to
obtain credit to grow, the statement
said.
“We are elated to have HBL
participate in this funding round. Our
groundbreaking success in digitally
scoring undocumented small
businesses has resulted in a
64 percent month-on-month
portfolio growth for us since
the outbreak of the pandemic
earlier this year,” said Finja
CEO and Co-Founder Qasif
Shahid.
“Undoubtedly, HBL’s financial
clout, massive network, and
progressive leadership will
help us elevate the country’s
most important segment, the
SMEs.”
TRADE CHRONICLE - May - Jun - 2021 - Page # 39
TRADE CHRONICLE
Pakistan Kuwait Investment Company
(Private) Limited (PKIC) announces
that it is making an equity investment
of PKR 500 million in Planet N
(Private) Limited. This is the largest
equity investment by a local Financial
Institution in a Tech Investment
Platform in Pakistan. It was approved
by the Board of PKIC in December,
2020. This investment will not only
help Planet N expand its operations,
but it will also motivate
other investors to
explore opportunities
to develop and
strengthen tech
entrepreneurship
and disruption in the
country.
With total assets of
over PKR 107 billion
and equity of over
PKR 38 billion, PKIC is Pakistan’s
leading DFI engaged in investment and
development financing activities in the
country. PKIC was established as a
joint venture between the Governments
of Pakistan and Kuwait in 1979. It
is a “AAA” (Triple A) rated financial
institution.
Planet N has invested and nurtured tech
start-ups such as Tapmad TV, Dawaai.
pk, PublishEx, Tez Financial Services,
Datalift, PiePie, Kashat, JinglePay,
etc. spread across various jurisdictions
including
Pakistan,
U A E ,
Egypt,
Singapore and USA. It currently has
more than 30 companies in its portfolio
focusing on financial inclusion, fintech,
digital media, data science & AI. This
portfolio is expected to grow further
after the equity investment by PKIC.
Pakistan Kuwait Investment Company to make
PKR 500 million equity investment in Planet N!
Pak-Qatar Takaful Group gets ISO
27001 certification
Pak-Qatar Takaful, Pakistan’s Pioneer
and Largest Takaful Group has been
declared ISO/IEC 27001:2013 certified
from Risk Associates for its Information
Security Management System (ISMS)
after its performance met the standard
required for the certification
The event was attended by Muhammad
Nasir Ali Syed (CEO, Pak-Qatar
Speaking on the occasion of the signing
ceremony, MD PKIC Mr. Mubashar
Maqbool expressed his elation at this
investment by PKIC and stated that
PKIC has a firm desire to support
all priority sectors of the economy,
especially the growing technology
sector, by providing traditional as well
as innovative financing solutions to its
prospective customers. Mr. Maqbool
hoped that this landmark investment
should inspire other players, investors,
family business houses, and
investment companies to do the same
and would also encourage the young
entrepreneurs in the tech sector.
General Takaful), Mr. Azeem
I. Pirani (CEO, Pak-Qatar
Family Takaful), Mr. Kashif
Hassan (Director, Professional
Services – Risk Associates), Mr.
Noman Jehangir (Director, Certification
Services – Risk Associates) along with
senior officials from both organizations.
Speaking at the occasion Mr. Nasir Ali
Syed said, “It is indeed an honor for us
to be awarded with this certification.
Now, more than ever, information
security is critical in maintaining
CEO Planet N Mr. Nadeem Hussain said
he has always tried to encourage local
investors to aid young entrepreneurs
with innovative ideas. His initial
investment in tech companies has
seen exponential gains and he hopes
that having PKIC as an equity partner
will initiate a big disruption in the localinvestors-
horizon and their approach
towards tech-based investments.
Mr. Irfan Siddiqui, CEO and President
Meezan Bank Ltd, chief guest to the
occasion said that this is one of its
kind investment by a
local DFI into a Tech
disruption investment
company paving
the way for further
investment by other
financial institutions
that will help tech
start-ups in Pakistan.
Also, present on the
occasion were Mr.
Ariful Islam, Deputy
CEO Meezan Bank Ltd, Mr. Khurram
Hussain, MD Pak Libya Holding Co.
and senior management from PKIC,
Planet N, and Arif Habib Limited (AHL).
AHL acted as the Financial Advisor to
this landmark transaction.
Planet N was founded by Mr. Nadeem
Hussain in 2016; with a vision to invest
in growth oriented hi-tech companies.
Mr. Hussain is the founder and ex-
CEO of Telenor (previously Tameer)
Microfinance Bank.
continuity between IT and Business
departments. By achieving our ISO
27001 certification, Pak-Qatar Takaful
extends our commitment to our internal,
as well as, external customers, for
whom security is a top priority.”
Mr. Kashif stated, “Certification
and strict compliance with latest
security standards demonstrates the
commitment of Pak-Qatar Takaful
Group to keep the customers
information and data secure at the
optimum level. Achieving ISO/IEC
27001:2013 certification is a major
milestone for PQTG and is a critical
component of its comprehensive and
transparent leadership effort to protect
the businesses.”
TRADE CHRONICLE - May - Jun - 2021 - Page # 40
Pak-Qatar Takaful remains committed
to provide best in class services to its
participant base.
TRADE CHRONICLE
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BREAK BULK DRY BULK FORWARDING FSRU
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A Commitment to Quality
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