TC May-Jun 2022 Issue

TRADE CHRONICLE

TRADE CHRONICLE

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Vol. 69 Issue Nos. 5 & 6 May - Jun 2022 Mar - Apr Rs. 250/- - 2022

PAKISTAN OLDEST MONTHLY MAGAZINE OF COMMERCE, TRADE, INDUSTRY & PUBLIC AFFAIRS

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CONTENTS

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EDITORIAL

• The Federal Budget FY23 greatly impacts the public and corporate sectors

• PSX's performed negatively in FY22: But must keep future hopes alive!

• Implement Interest-Free Banking Soonest: Business Community

• Pakistan and Bangladesh's mutual trade relations head in a positive direction

ARTICLE & FEATURE

• Federal Budget 2023 approved with several amendments to Finance Bill 2022

• Punjab govt unveils budget - By Ali Raza & Mansoor Ahmad

• Khyber Pakhtunkhwa presents with an outlay of Rs. 1,332 billion budget

• Sindh Chief Minister Murad presents a deficit budget with a Rs 1.71tr outlay

• Balochistan presents a deficit budget with an outlay of Rs 613bn budget

• Budget 2022-23 and the IMF programme - By Waqar Masood Khan

• Loan history of Pakistan under IMF Programs - By Dr. Muhammad Nawaz Iqbal

• State of the manufacturing sector - By Mansoor Ahmad

CEMENT INDUSTRY

• Pakistan's cement industry posts mixed financial results in 9MF22

• Pakistan started cement export to the USA

• DG Khan Cement to install a solar power plant in Punjab

• High cost of manufacturing influences cement dispatches in May 2022

• Pakistan seeks a consult to draw feasibility on the cement industry

• Lucky Cement plans renewable energy project

• The Economic Survey reviews the cement industry

• Cement exports from Pakistan show a mixed trend

• Cement dispatches declined by 7.91 percent during fiscal year 2021~22

PORTS, SHIPPING & RAILWAY

• Mathar Niaz, new Secretary of Maritime Affairs

• Pakistan to stop marine pollution, revive marine fisheries and nurture the Ocean

• Fauji Oil Terminal to build 6 storage tanks at Port Qasim

• Hutchison Ports Pakistan to sponsor technical training for the underprivileged youth

• PIBTL plans to bring more efficiency to cargo handling operations

• Ahsan says Gwadar completely neglected in last four years

• Economic survey FY22 reviews maritime sector

• DP World and CDPQ announce US$5 bn investment in strategic assets in the UAE

LEATHER INDUSTRY

• PFMA calls for luxury items import ban to stay for five years

• TDAP to organize conference on Pak-China trade

• The exports of leather tanned grow remarkably in July-March 2022

• PTA budget's suggestion

• Pakistan leather industry exports grow in 10MFY22

• Bangladesh sets export target of $10-12bn for leather industry

• Indian leather exports post 32.35% growth in FY22

REGULAR FEATURES

• Automobile News, Banking & Insurance News, People Events,

• Telecommunication News, Travel World, Steel & Allied Industry

5

TRADE CHRONICLE

May - Jun - 2022

We begin with the name of Allah the Magnificient

The Federal Budget FY23 greatly impacts

the public and corporate sectors

Federal Minister of Finance and Revenue Miftah Ismail, while presenting a

Rs 9.502 trillion budget for FY23 with a 4.9 percent deficit, stated that the

real challenge for the government is to achieve growth without the current

account deficit. The coalition government's first budget in National Assembly

passed sans pandemonium as the lone opposition, Pakistan Tehreek-e-Insaf,

continued to boycott, and agitate, drawing massive crowds outside, parliament.

People were pinning hope that the Federal Budget would offer some relief

measures and big austerity drives amid rising back-breaking inflation from the

government during these critical times, but all their expectations went in vain.

On the contrary, the government levied additional taxes that brought the blood

path on the Pakistan Stock Exchange (PSX) and perturbed corporate sectors and

the public on foot.

From the

editor's

desk

The final node allows GoP to burden taxpayers in lower-income brackets alone,

meeting collection targets, bringing the country closer to successfully reviving

the stalled IMF program and taxing the rich less than the poor. The market

anticipated most of these amendments, so the new document carried little

surprise. Initially, the government had avoided taking unpopular tax measures

but dared skyrocket an increase in energy and fuel prices like petrol, gas, and

electricity despite fear of political backlash.

However, its original budget failed to get the nod from IMF, forcing the

government to roll back several relief measures, including the previous regime's

multi-billion subsidy that had offered cheaper services.

ABDUL RAB SIDDIQI

The proposed 10% super-tax imposition for specified sectors with earnings

above Rs300mn for the tax year 2022 (FY22), especially on 15 selected industries

affected here, including Airlines, Automobiles, Beverages, Cement, Chemicals,

Cigarette & Tobacco, Fertilizer, Iron and Steel, LNG terminal, Oil Marketing, Oil

Refining, Petroleum & Gas exploration and production, Pharmaceuticals, Sugar

and Textiles. This will result in a one-time impact of 14% on FY22 earnings,

though it will not impact the FY23 earnings of companies.

The biggest shock for the public was the approval of revision in the PDL limit

to PkR50/ltr (from PkR30/ltr), one of the major demands by IMF, allowing

the government to meet its collection target of PkR750bn under this head.

Lawmakers also approved a super tax (previously poverty alleviation tax) of 1%

to 4% on annual incomes between PkR150mn to PkR300mn.

Moreover, the 6% "additional super tax" imposition on large-scale industries was

also approved. This will take effective tax rates for corporates to 39% (for banks,

the effective tax rate will be 49%) during the tax year 2022, while the effective tax

rate will likely ease off to 33% (while for banks, the effective tax rate will settle ~

43% ) from the next year.

An estimated 9mn retail shops in Pakistan contribute little to total tax collection,

and the government wanted to bring 2.5m to 3.0m of these retailers into the tax

net through a fixed presumptive tax regime, depending on their level of energy

consumption. A good step, but they defiantly pass on the burden to end-users.

The trade and industry leaders criticized and expressed wonder over the

PDM government's anti-industry steps in various forms, including the least

6

TRADE CHRONICLE

consideration in broadening the

tax net and extracting more from

already heavily taxed entities.

They have sought an immediate

withdrawal of the plan to save the

industry and end-users from its

adverse impact.

FPCCI's Acting President Shabbir

Mansha categorically denounced

the imposition of a 10 % super tax

on large industries, which already

pay a hefty corporate tax of 29

% and generate millions of jobs

countrywide as well. "No country

in the world can charge 39 % tax

to corporations and keep the

economy afloat".

Additionally, he added that

new private-sector and foreign

investments dry up completely

in an uncompetitive market. He

also expressed shock that the

federal budget year 2022–23

Editorial Comments

PSX's performed negatively in FY22:

But must keep future hopes alive!

Pakistan Stock Exchange

(KSE-100 index) has

remained one of the past

best-performing markets in the

region.

However, Pak stocks performed

poorly during FY22 amid deep

uncertainty to close at 41,541

points, down by 12.28% / 5,815

points YoY, which took the USDbased

return to a negative 32.5%.

AHL Research remarked that this

was the worst performing year

after FY19 (-19% return).

Benchmark equity bourse

generated losses on the back

of various exogenous and

macroeconomic indicators

turning red, which changed "the

sentiment of the index."

To recall, the market had

previously posted a return of 38%

during FY21, the highest after

FY14. Narrating the chequered

was announced two weeks back

and mentioned no super tax on

industries. It is a highly abrupt,

unfortunate and anti-industry

measure.

We feared that the supper tax,

for one time, would raise prices

and affect future investments,

expansions and business ventures

in the industry.

It is not a matter of cost or profit

alone, as it would leave an adverse

impact on the existing automobile

industry and its allied ones amid

the job cuts of many people.

We urged that government should

bring into net other untaxed or

under-taxed segments of the

economy, such as agriculture.

It may not be possible for the

government to broaden the tax

history of PSX, the

analysis states that

pressure was exerted

on the bourse by

recurring waves of COVID-19,

pressure on the external account,

rising inflationary reading

exacerbated by commodity super

cycle, changes in the political

leadership of Pakistan, delay

in IMF approval of 6th and 7th

review, and transition from an

emerging market to the frontier

market.

Moreover, foreign exchange

reserves started depleting, with

Pak Rupee losing significant

ground against the USD and

touching an all-time low of 211/

USD in Jun '22.

Whereas State Bank of Pakistan

shifted in policy, resuming

stringent monetary tightening

this year (policy rate highest since

Jun '11 at 13.37% at present) in

place of the aggravated outlook

for Consumer Price Index.

On a negative note, we cite

high international oil prices as

May - Jun - 2022

net overnight, but it is disturbing

that it shies away from making

a move in that direction. It's not

enough to implement a negligible

fixed tax on retailers' incomes or

'rentals' from real estate holdings

of the rich.

The new measures will

significantly squeeze companies'

profits from the super tax, and

many will likely hold their future

investment plans and discourage

documentation.

We hope the government

will consider the industry's

suggestions and broaden the tax

net with new taxpayers.

Impose new duties on raw

materials and encourage

manufacturing that will create

jobs. Let enterprises run.

threatening future economic

growth.

Some measures in the finance bill

for FY23 will translate adversely

into CPI. This will augment

the CAD, build pressure on the

currency and keep inflation sticky.

Now investors are pinning hopes

that the successful completion of

talks with IMF will pave the way

for inflows from other multilateral

and bilateral partners as well as

friendly countries, which should

increase FX reserves and restrict

the drop in PKR/USD parity.

Meanwhile, Pakistan's exit from

FATF's grey list should also open

up new financing avenues at

attractive levels, such as issuing

international bonds, which

should help meet external

financing requirements for FY23.

These developments and no

upward movement in interest rate

would bring investors' confidence,

and PSX would move northward

in days to come: That's about

much of all that is hoped for.

7

TRADE CHRONICLE

Implement Interest-Free Banking

Soonest: Business Community

The State Bank of Pakistan

(SBP) and four private

banks were challenged in

the Supreme Court of Pakistan

based on the decision of the

Federal Shariat Court (FSC) that

declared the present interestbased

banking system be against

the Sharia and directed the

government to switch to an

interest-free economy. The banks

approaching the court drew

strong reactions from the public

and business community who

wanted the Riba free banking

that was also being operated

successfully in other Islamic and

non-Muslim countries.

FPCCI President Irfan Iqbal Sheikh

said the business community

supports transforming Pakistan's

economy and banking system into

a riba-free system. FSC has set

Pakistan and Bangladesh's mutual trade

relations head in a positive direction

Trade relations between

Islamabad and Dhaka

are likely to improve due

to positive developments on

the diplomatic level between

both countries. Pakistan's

Prime Minister Muhammad

Shehbaz Sharif congratulated his

Bangladeshi counterpart Sheikh

Hasina Wajid and the Bangladeshi

people on completing the Padma

Bridge.

Padma Multipurpose Bridge is a

two-level road-rail bridge across

the Padma River, Bangladesh's

main distributary of the Ganges

River. It connects Shariatpur and

Madaripur, linking the country's

southwest to the northern and

eastern regions. The bridge was

inaugurated on 25 June 2022 and

became a joyous moment for

Bangladesh.

A rising trend in bilateral trade

can be noticed from the statement

of the High Commissioner of

2027 as the deadline to

implement the interestfree

system. It requires

that government make

necessary regulatory changes to

facilitate and practice an interestfree

financial system.

FPCCI Chief also called upon

transforming

Pakistan's

economy and financial system

into an equitable, asset-based,

risk-sharing and interest-free

economy to avoid those ills and

risks of riba (usury, markup,

interest etc.) that are called "hellfire"

and it is forbidden to give

and take riba in Islam.

Irfan Iqbal Sheikh maintained

that Islamic banking was

enhancing its operations

successfully and prudentially

in Pakistan; the market share

of deposits and assets in the

entire banking industry was

19.4 percent and 18.6 percent,

Bangladesh to

Pakistan, Rahul

Alam Siddique,

who said bilateral

trade between Pakistan and

Bangladesh has been growing

rapidly. He said this milestone

would be celebrated at the

Bangladeshi High Commission

in Islamabad and Deputy High

Commission in Karachi. We hope

this development will bring a

healthy change in trade and

political relations.

Exchanging views at a meeting

during his visit to the Karachi

Chamber of Commerce and

Industry (KCCI), the envoy

said the current bilateral trade

volume has increased to around

$900 million and continues to

rise at a faster pace. "Pakistan's

exports to Bangladesh have

risen by 48 percent while exports

from Bangladesh to Pakistan

appreciated by 14 percent," he

said. He hoped that the rising

trend continues for bilateral

benefits in future, which would be

very encouraging for the business

May - Jun - 2022

respectively, during the year 2021.

Additionally, net financing by

Islamic banking institutions rose

by 38.1 percent in 2021, which is

very strong growth in financing by

any standard.

They wisely demanded that the

Ministry of Finance, Ministry

of Law, Banking Council and

other stakeholders join and work

towards making Pakistan a ribafree

country. He added that the

prohibition of riba (interest)

was absolute in all its forms and

manifestations, as per injunctions

of Islam and following Muslim's

Holy Quran and Sunnah.

President KCCI Muhammad

Idrees urged that all stakeholder

groups should be consulted. If

there are genuine concerns, these

should be resolved on a fast-track

basis to pave the way for the timely

implementation of the Islamic

Financial System in Pakistan.

communities of both countries.

General Secretary BMG AQ Khalil

appreciated the Bangladeshi

government's wise efforts

toward improving the trade and

investment ties with Pakistan.

He believed "Pakistan must

learn from the history and

experience of Bangladesh as

it has become a role model for

developing countries." He said

that bureaucratic hurdles were

one of Pakistan's most serious

issues. Hence, he added that we

must learn how Bangladesh dealt

with its bureaucracy and adopt

the same strategy.

Pakistan organized a single

country exhibition in Dhaka in

the early nineties, but no such

event has been held since then.

Pakistan can learn much from

Bangladesh about shipbuilding,

textile, footwear and many other

fields. We urged both nations to

immediately start the exchange

of trade delegations and tapping

of investment opportunities on a

reciprocal basis.

8

TRADE CHRONICLE

Federal Budget 2023 approved with

several amendments to Finance Bill 2022

The National Assembly has

approved the amendment to

Finance Bill 2022 that permits the

government to increase petroleum levy

up to Rs50 per litre. Parliamentarians

have also approved a 10% super tax on

13 high-earning sectors and different

slabs of taxes on a salaried person

making above Rs 600,000 per annum.

• Super tax on specified sectors: The

amended finance bill has proposed

imposition of a one time super tax of

10% for specified sectors with earnings

in excess of Rs300mn for tax year 2022

(FY22). The 15 specified sectors that

will be subject to a one time super tax

of 10% includes Airlines, Automobiles,

Beverages, Cement, Chemicals,

Cigarette & Tobacco, Fertilizer, Iron and

Steel, LNG terminal, Oil Marketing, Oil

Refining, Petroleum & gas exploration

and production, Pharmaceuticals,

Sugar and Textiles.

• Tax rates of 0%-4% under section

4C: The amended bill has proposed

slab wise tax rates for companies under

section 4C of income tax ordinance

and has now been renamed as ‘Super

tax’. Earnings exceeding Rs300mn will

be subject to 4% income tax whereas

earnings below Rs300mn will be taxed

as per the following table from tax year

2022 onwards.

• Capital Gain Tax on Securities:

Government had rationalized tax

rates on capital gains on securities

in budget where CGT rates were

reduced to zero where holding period

exceeded six years encouraging long

term investment. In the amended

finance bill, no change in rates have

been proposed however clarification

is inserted that the reduced rates will

apply only to securities acquired after

July 01, 2022. For securities acquired

on or before 30th June, 2022, rate of tax

shall be 12.5%. Furthermore, rate of tax

for companies in case of Debt will be

subject to 29% tax.

• Tax credit available on Section 63:

Tax credit available under Section

63 for Voluntary Pension scheme

was initially removed from Budget

document which is now been restored.

• Sales tax on APIs reduced to 1%:

The government has reduced sales

tax to 1% from existing 17% on the

import of active

pharmaceutical

ingredients (APIs).

This will be positive

for Pharmaceutical industry.

• Minimum Turnover Tax for OMC

reduced to 0.5% from 0.75%:

Minimum Turnover tax on OMCs has

been reduced from 0.75% to 0.50% for

OMCs which will be positive for the

sector.

• CVT on automobiles reduced to 1%

from 2%: The government has reduced

Capital Value Tax (CVT) from 2% to 1%

on automobiles in an amendment to

the Finance Bill 2022. They have also

changed taxable limit of Rs5mn value

of the car to all cars of 1,300cc and

above. This will be negative for sector.

• Tax Rates on Banking Sector: As per

understanding amended finance bill

has levied a one time super tax of 10%

for tax year 2023 (CY2022) for banking

sector. As per the bill, the corporate

tax rate on banks has been set at 39%

instead of the initially proposed 45%

taking total effective.

Earlier, on June 10, Finance Minister

Miftah Ismail presented an Rs9.502

trillion budget in Parliament for the

next fiscal year with an expected 4.9

percent deficit and stated that the

real challenge for the government is

to achieve growth without the current

account deficit. The government also

announced a 15 percent increase in

government employees’ salaries, and

ad-hoc relief is being merged into the

basic pay and decided to establish a

pension fund with an allocation of

Rs10 billion in the first year. However,

later some amendments were made to

meet the conditionality of from IMF.

He outlined the government’s

approach of giving incentives to the

poor instead of the rich and moving on

to inclusive and sustainable growth.

The growth strategy would be based

on an increase in IT and industrial

sector exports and agriculture,

productivity has to be increased, and

export competitiveness has to be an

improvement.

He said that under the austerity

measures, the government has decided

to impose a ban on the purchase of

vehicles, foreign trips unless necessary,

and purchase of furniture and a cut in

petrol by 40 percent.

May - Jun - 2022

The tax deficit would be reduced to 4.9

percent in the next fiscal year from 8.6

percent in the ongoing fiscal year. The

primary debt of 2.4 percent would be

converted into positive by 0.19 percent

in the next fiscal year. The trade deficit

would be reduced to $70 billion and

exports $35 billion. As a result of this

current account deficit, 4.1 percent

of the GDP would be reduced to 2.2

percent, and remittances are projected

at $33.2 billion for the next fiscal year.

The federal outlay for the next fiscal

year is projected at Rs9,502 billion

with debt servicing of Rs3,950 billion,

the PSDP Rs800 billion, whereas,

Rs1,523 billion have been earmarked

for defence, Rs550 billion for running

the civil government, Rs530 billion for

pension and Rs699 billion for targeted

subsidies while Rs1,241 billion have

been allocated for grants including

the BISP, Bait-ul-Mall and other

departments.

The BISP allocation has been increased

to Rs364 billion for the next fiscal year

and Rs12 billion for the USC to provide

subsidies on essential commodities

with Rs5 billion additional for Ramazan

Package.

The minister said that 90 million

households in the next fiscal year

would benefit from cash transfer

under the BISP Kifalat Programme,

for which Rs267 billion have been

allocated, Benazir Wazaif Programme

would be expanded to 10 million

children with the cost of Rs35 billion.

The government has allocated

Rs9 billion for the undergraduate

scholarship, Rs21.5 billion for the

Benazir Nishonama Programme, and

Rs6 billion for the deserving people in

the Baitul Mal.

The government has allocated a

subsidy of 570 billion for the power

sector and Rs70 billion for the gas

9

TRADE CHRONICLE

sector.

He said that for the

HEC, Rs65 billion have

been allocated besides

Rs44 billion have been

earmarked for the

development scheme.

The minister announced

that the student

would be provided 0.1

million laptops in easy

instalments, and Rs21

billion have been allocated

to increase livestock

production. Young men

and women will be offered

interest-free loans up to

Rs5,00,000. Pending Rs4.5

billion DLTL refunds

would be cleared this

month, as well as those of

the pharmaceutical sector

and sales tax refunds.

Work on a new investment

strategy is in the programme, and the

dispute resolution mechanism will be

reformed.

The government has earmarked Rs800

billion public sector development

programme (PSDP) for the next

fiscal year with priorities to utilize

maximum funds for the development

of Baluchistan and less-development

areas to bring them at par with other

areas; therefore, Rs136 billion has

been allocated in for special areas, AJK,

and Gilgit Baltistan. Rs395 billion for

infrastructure projects, Rs73 billion for

electricity production, transmission

and distribution, with Rs12 billion for

Mohmand dam’s early completion

The minister said that big water dam

projects worth Rs100 billion included

in the PSDP, Rs202 billion highways and

motorways, ports, Rs70 billion, and

power and water resources projects are

interlinked for which a total of Rs183

billion have been allocated, social

sector projects under SDGs and Rs40

billion for other social sector-related

schemes. Rs51 billion for the HEC,

Rs24 billion for health and Rs10 billion

for climate change.

Fixed tax on small retailers’ to be

collected along with electricity bills

between Rs3,000 to Rs10,000, and it

would be a final settlement, and the

FBR would not be allowed to ask any

questions in this regard and on account

of initial depreciation for industrial

units 100 per cent adjustment is

proposed in the first year, whereas,

all the taxes at import stage on raw

materials are being offered to be made

adjustable.

Solar panel imports and local supplies

are exempted from taxes. Tractors,

agriculture equipment, wheat canola

etc. rice seeds sale tax is being

withdrawn, and welfare hospitals are

exempted from sale tax on electricity

and local supply.

He said that the customs duty is being

abolished on agriculture machinery;

besides, custom duty and additional

customs duty and regulatory duty

on 400 tariff lines related to the

manufacturing sector are being

rationalized, and duty on 350 items

are being reduced as well as tariff

structure on the thread for the textile

sector has been rationalized, and 30

active pharmaceutical ingredients are

exempted from the customs duty.

All persons who have more than one

immovable property exceeding Rs25

million situated in Pakistan be deemed

to have received rent equal to five per

cent of the fair market value of the

immovable property and shall pay tax

at the rate of one per cent of the market

value of the property except one house

of each individual.

Capital gain on all classes of assets

is now proposed to be taxed at 15

per cent if the holding period of such

property is one year or less. The capital

gain payable on such assets will reduce

10

May - Jun - 2022

to zero after six years,

reducing tax liability by 2.5

per cent each subsequent

year.

Furthermore, the advance

tax rate on the purchase

and sale of property for

filers is proposed to be two

per cent from the current

one per cent.

Moreover, to discourage

the undocumented

economy, the advance

tax rate for buyers of

immovable property who

are non-filers is proposed

to be enhanced to five per

cent. All persons, inclusive

of companies and

associations of persons

earning an annual income

of Rs300 million or more,

are proposed to pay two

per cent tax. Advance tax on motor

vehicles exceeding 1600cc is proposed

to be increased.

The advance tax shall also be collected

at the rate of two per cent of the value

in cases of high-value hybrid and

electric vehicles.

Additionally, the tax rate for non-filers

shall be enhanced to 200 per cent from

the current 100 per cent.

The tax rate on banking companies is

proposed to be enhanced to 45 per cent

from the current 39 per cent, including

super tax. Advance withholding tax

at the rate of one per cent for filers

and two per cent for non-filers shall

be collected from persons remitting

money outside Pakistan through

credit, debit, and prepaid cards.

He said that the FBR revenue

collection for the ongoing fiscal year

would remain at Rs6,000 billion with a

Rs3,512 billion share of the provinces,

leaving net revenue of Rs3,803 billion

for the federal government.

He said that the federal government’s

non-tax collection would be Rs1,315

billion.

He said the government’s total

expenditure would be Rs9,118 billion,

including Rs550 billion PSDP and

Rs3,144 billion debt servicing, etc.

Courtesy - Chronicle, local reports, media

and research houses

TRADE CHRONICLE

Punjab govt unveils budget

By Ali Raza & Mansoor Ahmad

The Punjab government presented

its budget for the 2022-23 fiscal

year during an assembly session

at Aiwan Iqbal, Lahore. Deputy Speaker

Dost Mohammad Mazari chaired

it. Minister Sardar Awais Ahmad

Leghari presented an Rs3,226 billion

tax-free and subsidy-loaded budget

for the financial year 2022-23, with a

development outlay of Rs 683 billion.

The government employees got a

15-30 per cent rise in their salaries,

pensioners got a 15 per cent rise, and

fixed the minimum wage at Rs25,000

per month. The budget has been

increased by Rs 543 billion in line

with the expected increase in its share

from the federal divisible pool. The

development outlay has increased

by Rs 145 billion compared to last

year’s. The percentage that the Punjab

government gets from taxes collected

by the Federal Board of Revenue is

the main source that will finance the

budget.

No new taxes have been imposed,

though tax rates on large luxury houses

have been revised upwards. The stamp

duty rates have increased from 1 per

cent to 2 per cent. Besides reducing the

sales tax on a few services, the tax rate

has not been enhanced on any service.

The development budget of Rs683

billion is the highest development

exercise ever taken in the province.

South Punjab’s share in the

development budget is Rs240 billion,

which is 40pc of the total development

budget.

To facilitate the youth, an amount

of Rs1.5 billion has been reserved

to empower them with laptops. The

Punjab government has allocated

Rs437.87 billion for salaries, Rs312

billion for pensions, and Rs528 billion

for local governments.

The Punjab government also allocated

Rs200 billion for subsidy on wheat

flour. In addition, a sum of Rs142 billion

has been earmarked for providing

other edibles at subsidised

rates, subsidies on public

transport, and fertilisers

to farmers at concessional

rates.

May - Jun - 2022

allocated for the social sector, 24pc for

infrastructure, 6pc for the production

sector, 2pc for services and 28pc for

various other industries.

To improve the jail conditions, an

amount of Rs6 billion has been

allocated, and Rs3.06 billion would

be utilised to revitalise the safe city

project that was neglected during the

past four years.

Allocation for education has been

increased to Rs485 billion, which

is 10pc higher than last year’s, and

Rs56.70 billion of the amount would

come from development allocations.

For the health sector, the total

allocation is Rs470 billion, which is

26pc higher than last year’s.

The total agricultural allocation is

Rs53.19 billion. For irrigation, an

amount of Rs53.32 billion has been

allocated. The development budget

includes Rs80.77 billion for the

construction/ repair of roads and

bridges. The amount would ensure

rehabilitation of over 2000-km long

roads. The Ring Road projects in Sialkot

and Multan would also be initiated

with an allocation of Rs13.50 billion.

Khyber Pakhtunkhwa presents with

an outlay of Rs. 1,332 billion budget

Khyber Pakhtunkhwa Finance

Minister Taimur Saleem Jhagra

unveiled a Rs 1.33tr budget for

FY23. It includes a Rs 418 billion annual

development programme (ADP).

The provincial government will fund

the development projects with the help

of donors and the federal government

under the Public Sector Development

Programme. The development

outlay also includes a share for local

governments.

Khyber Pakhtunkhwa Chief Minister

Mahmood Khan has termed the

provincial budget for the financial year

2022-23 as a pro-poor and the largestever

budget in the history of Khyber

Pakhtunkhwa. He added that all the

A sum of Rs 15 billion has

been earmarked to give

subsidy on three months’

power bills of consumers

using up to 200 units per

month. About 40pc of the

development budget is

sectors had been

fully focused in

the budget, which

on implementation

would bring about a new era of

development in the province

and bring visible positive

change in the lives of the

masses.

The Chief Minister said that all

possible efforts had been made

to provide significant relief to

the common person in the budget,

adding that over 63000 employees

were being regularized in this budget,

including 58000 teachers, around 700

doctors and project employees of other

departments.

Besides, a total of 31% increase

has been made in the salaries of

government employees, including a

A sum of Rs23.83 billion has been

reserved for industries, out of which

Rs12.53 billion would be spent on

development projects, which include

enhancing the capacity of Tainjin

University and the construction of Mir

Chakar Khan Rind University.

15% Disparity Reduction Allowance

(DRA) given in the march this year.

Similarly, he stated that the tax rate

in Khyber Pakhtunkhwa, which was

reduced in the current budget, will

be maintained in the new fiscal year,

whereas more than Rs. 25 billion

would be spent on loans to small-scale

industrialists and youth.

11

TRADE CHRONICLE

Sindh Chief Minister Murad presents

a deficit budget with a Rs 1.71tr outlay

Sindh Chief Minister Syed Murad

Ali Shah — also the provincial

finance minister presented a

provincial budget for the next fiscal

year with a total outlay of Rs1.714

trillion. Experts called it a “pro-poor”

and “tax-free” deficit budget.

Compared to the Rs1.714tr expense,

the next year’s budget estimates total

revenues of Rs1.68tr, meaning a deficit

of around Rs34 billion.

As for revenues, the province will get

Rs1.055tr in federal transfers, whereas

Rs347.5bn is estimated to come from

tax, including Rs180bn provincial

sales tax on services. Other revenue

resources include non-tax receipts

(Rs27bn), current capital receipts

(Rs51.1bn), other transfers such as

foreign project assistance, federal and

foreign grants (Rs105.6bn), carryover

cash balance (Rs73bn) and net public

accounts of the province (Rs20bn).

In contrast, a large chunk of expenses,

around Rs1.2tr, will go towards current

revenue expenditure, which refers to

short-term costs used immediately or

within a year. Other heads are current

capital expenditure (Rs54.5bn) and

development (Rs459.7bn), which

includes Rs332.2bn provincial annual

development programme (ADP),

Rs91.5bn foreign project assistance

(FPA), Rs6bn other federal grants, and

Balochistan presents a deficit budget

with an outlay of Rs 613bn budget

The Balochistan Finance Minister

Sardar Abdul Rehman Khetran

presented a deficit budget

for the next fiscal year with a total

outlay of Rs612.79 billion. With the

provincial income estimated at

Rs540bn, the deficit would stand at

Rs72.8bn or around 12 per cent of the

outlay. The budget sets aside 5.7pc

and 3.7pc higher allocations for nondevelopment

and development heads,

respectively, compared to the original

estimates for the outgoing fiscal year.

In the budget for the outgoing year,

the provincial government indicated

a deficit of Rs84.7bn in its estimated

resources and expenditure, which

projects to curtail the originally

allocated provincial contribution to

the development plan from Rs172.5bn

Rs30bn district ADP.

SOCIAL PROTECTION:

In his budget speech, the

chief minister announced Rs26.85bn

for the social protection and economic

sustainability package.

PAY AND PENSION: He said the ad hoc

relief allowances for 2016, 2017, 2018,

2019 and 2021 at the rates admissible to

employees of the federal government

were being merged.

He also announced an ad hoc relief

allowance of 15pc of basic pay scales

to government servants from July 1,

and an increase of 5pc of net pension

would be paid to Sindh pensioners

from July 1, he said.

RELIEF IN SALES TAX: The tax rate on

commission charges received by food

delivery channels (such as Foodpanda

and Cheetay) from home chefs has

been reduced from 13pc to 8pc for two

years, i.e. until June 30, 2024.

EDUCATION: The chief minister

said the Sindh government kept the

education sector at its top priority by

allocating Rs326.8 billion to the sector,

forming around 19pc of the budget

to Rs91.8bn by the close of

the year on June 30.

Thus, it is safe to assume

that the failure to take in enough

resources to fill the projected

deficit, the province is likely to cut

its development stimulus by a huge

margin next year as well.

In his budget speech, Finance Minister

Khetran said the government had

released Rs92bn for development

projects to complete ongoing and new

schemes during the current fiscal year.

The new budget sets aside Rs26.62bn

non-development funds for the health

sector, while Rs12bn would be spent

on development. Besides, Rs1.5bn has

been allocated for the pension and

support fund, Rs6.6bn has been issued

for providing medicines in all hospitals

of the province, and 524 new posts

May - Jun - 2022

outlay. Of this, the non-development

budget has been raised to Rs292.6bn

for the next fiscal year from Rs268.4bn

during the ongoing year, whereas

Rs34.2bn has been earmarked as the

development budget for the school

education department.

HEALTH: The total outlay of the

health budget for the next fiscal year is

estimated at nearly Rs207bn, covering

primary, secondary and tertiary

healthcare level services.

LAW AND ORDER: The total allocation

for the home department, including

Sindh police and jails, has been

increased to Rs124.9bn from Rs120bn

this year.

IRRIGATION AND AGRICULTURE:

The budget for irrigation has

been increased from Rs21.23bn

to Rs24.09bn. Allocation for the

agriculture and irrigation department

in ADP is Rs36.2bn.

WATER AND SEWERAGE: The water

and sewerage sector has been allocated

Rs224.7bn.

SOLID WASTE MANAGEMENT: Under

this head, the provincial government

has increased its budget from Rs8bn

to Rs12bn for the next financial year

and intends to expand the operations

of the Sindh Solid Waste Management

Board to other districts, including

Hyderabad, Qasimabad, Kotri, Sukkur

City and Rohri.

would be created in the health sector.

He announced that the government

had decided to increase the salaries of

the government employees by 15pc on

their basic wages as of 2017, besides

increasing pension by 15pc.

As for education, 103 new primary

schools would be established while

60 high and middle schools would be

upgraded to higher secondary schools,

and 831 recent posts of teachers would

be created.

12

TRADE CHRONICLE

Budget 2022-23 and the IMF programme

By Waqar Masood Khan

There are any number of ways

in which a budget can be

characterized. Terms, such as,

pro-poor, investors’ friendly, growth

oriented or stabilisation are some

such characterisations. Given the

economic conditions, the only term

relevant for consideration is whether

the budget 2022-23 is consistent with

the International Monetary Fund

(IMF) requirements to complete the

7th Review and revive the stalled

program. After a very brief description

of the budget, we would examine its

consistency with Fund requirements.

Total revenues are projected at Rs 9

trillion with FBR taxes estimated at

7 trillion. The share of provinces is

estimated at Rs 4 trillion, leaving a net

revenue of Rs 5 trillion. Against this,

a total expenditure of Rs 9.5 trillion is

budgeted. This means the fiscal deficit

(federal) would be Rs 4.6 trillion or

6.9% of GDP, which would be funded

from external borrowings of Rs 1.7

trillion (37% of deficit), domestic

borrowings (TBs-PIBs) of Rs 2.8 trillion

(61% of deficit) and a meager flow of

privatization proceeds of less than Rs

100 billion (2% of deficit). The overall

deficit would be Rs 3.8 trillion with

provincial surplus pitched at Rs 800

billion or 5.7% of GDP. Besides, the

NEC has approved a growth target of

5% and inflation target of 11.5%.

It is also important to examine how the

Budget 21-22 has fared compared to

the Revised Estimates 2021-22. Briefly,

against an overall revenue target of Rs

8 trillion, the revised estimate is Rs 7.3

trillion, a shortfall of around Rs.700

billion. On the current expenditure

side, against a budget of Rs 7.5 trillion,

revised estimate is Rs 8.5 trillion, an

over-run of Rs 1 trillion. Development

expenditure was budgeted at Rs 900

billion while the revised estimates is Rs

550 billion, a saving of Rs 330 billion.

The excess in federal deficit thus

works out as Rs 1,350 billion, which

was budgeted at nearly Rs 4 trillion.

Thus the revised deficit is Rs 5,340

billion close to what was stated by

finance minister on taking his office.

This amounts nearly to 8% of GDP. We

need one more number, namely the

provincial surplus. This was budgeted

at Rs 575 billion and the revised

number is unchanged. As percentage

of GDP, provincial

surplus is 0.8%,

so the overall

fiscal deficit is 7.2%

We would like to make one comment

on the revised number. Mark-up on

debt has witnessed a less than Rs 100

billion increase in revised estimates

compared to the budget. This appears

out of line with the speed with which

interest rates have increased from

7.25% in September to 13.75% in May.

The effect of rate changes is missing

and hence the actual may be quite

higher.

We now turn to our main objective.

First, let’s look at the deficit target. In

the projections made by the IMF as

part of the 6th Review, the nominal

deficit was set at Rs 2,722 billion, which

is 4.5% of GDP, which is assumed at

about Rs 62 trillion. If we use the rebased

GDP of Rs 67 trillion this would

be 4%. On the face of it, the deficit

target appears significantly at variance

with what the IMF would have asked.

Second, on the revenue side there

are also significant deviations. On

FBR revenues, we see an increase

from 6 trillion to Rs 7 trillion which is

a 16.7% growth. This is only slightly

higher than the nominal GDP growth

of 16.5% (inflation 11.5% and growth

5%). Since the number includes fresh

tax measures also, there seems to no

buoyancy in the overall tax collection

and the new measures would hardly

suffice to raise the overall tax-to-GDP

ratio.

Third, the personal income tax (PIT)

reform has been a standing demand

from the IMF. Justifiably, many in the

government opposed it as it would

have more than doubled the tax

burden for higher income groups while

lowering the burden on low income

groups. What is astounding is to

witness a change in PIT fundamentally

opposed to the IMF demand. Number

of slabs have been reduced as per

Fund requirement but in every single

slab, tax burden for all taxpayers has

been lowered, with a total cost of Rs

47 billion close to 40% of what was

collected under PIT. Potentially, this

would be a big stickler.

Fourth, the government has again

raised the taxable limit to Rs 1.2

million. This was done in 2018 but

partially reversed by the succeeding

May - Jun - 2022

government to Rs 600,000. This would

not have much revenue loss but it

would create a major distortion by

significantly reducing the number of

taxpayers paying any meaningful tax.

As much as one-third of taxpayers file

NIL tax returns, after paying a token

tax of Rs 1000 or Rs 2000, a provision

specifically made to facilitate those

excluded not to become non-filers.

Fifth, the estimate of Rs 750 billion

in Petroleum Levy (PL) is quite

ambitious. Against Rs.600 billion

budgeted last year, government could

mobilize only Rs.135 billion. Apart

from IMF’s apprehensions on the

target, government would be taking

upon itself a humongous target to raise

petroleum prices through levy when

it has found it difficult to recover the

actual cost. Even today both petrol and

diesel are sold at Rs 26/liter and Rs 20/

liter, respectively, less than actual price

with virtually no GST and PL.

Sixth, the tax measure to bring idle

assets in the form of immovable

property is quite novel. In an ingenious

fashion the government has planned

to impose a tax based on the notion of

“deemed rental income” on fair market

value of the property and subjecting

it to 1% income tax. There are serious

issues with this proposal.

First, it runs into jurisdictional issues

of the competent authority for taxing

immovable property, which has

been declared a provincial subject

in the constitution. Second, the

measure amounts to reintroducing,

in a truncated fashion, the wealth tax,

without having the cover of law, as the

erstwhile wealth tax law was repealed

in 1999. Undoubtedly, the measure

would face serious legal challenges.

Evidently, the budget appears to be

falling short of the requirements

which the Fund would be insisting on.

People had presumed that Fund was

worried about petroleum subsidies

and beyond that there were no deal

breakers as much of it was signed

off by the outgoing government and

then reaffirmed in Doha. But the fact

that the staff level agreement was

not reached, the deal still remain

uncertain. Going back on budget

proposals after negotiations would

be embarrassing for the government

while the uncertainty about the future

of the program would continue to

bedevil the economy.

Courtesy - Business Recorder

13

TRADE CHRONICLE

Loan history of Pakistan

under IMF Programs

By Dr. Muhammad Nawaz Iqbal

Pakistan has been a member

of IMF program since 11 July

1950. Pakistan's public debt

is estimated to be around PKR 39.9

trillion as of June 2021, accounting

for 83.5 percent of the country's

GDP. Domestic debt totaled PKR 26.2

trillion, while external debt totaled

PKR 13.6 trillion (USD 86.4 billion).

Pakistan Loan History is one of the

leading worldwide actors in loan

organization, writing approximately

$27 billion in loans each year.

Pakistan's economy is a developing

market with great growth potential,

but it has struggled with insufficient

infrastructure and a lack of a stable

administration. The lack of good

education opportunities has also

been a major hindrance to economic

growth.

Pakistan's rapidly expanding

population, rising energy

demand, and reliance on

ageing power facilities are all

contributing to the country's

current economic troubles.

Pakistan's history of approaching

the IMF dates back to 1958, when

that time government led the

country to the IMF and signed a

Standby Agreement to acquire

SDR 25 million.

The funds were never taken out.

Pakistan being brought back to the IMF

on May 18, 1972. the then government

seemed to like the IMF a lot, for

they approached it so many times that

it became practically unstoppable.

Pakistan went to the IMF three times

during the period from 1972 to 1974

Contiuned from 15

our textile industry. But the political

influence of the sugar lobby has

prevailed with the result that Pakistan

must import cotton worth over $2

billion per year to feed its textile

industry. We can fulfill the entire sugar

needs of the country at half the cost (if

no sugar is produced) while our textile

exports register a hefty increase.

Our manufacturing policies have many

such anomalies. Governments grant

huge tax incentives for establishing

industries in underdeveloped regions

to create jobs. Besides income tax, the

and then again in 1977, and withdrew

around SDR 314 million against the

agreed-upon SDR 330 million.

Pakistan entered IMF programs eight

times between 1988 and 1997, under the

experienced and active governments

of the Pakistan Peoples Party (PPP)

and Pakistan Muslim League-Nawaz

(PML-N). Pakistan withdrew SDR 1.64

billion during this time. Five of these

eight schemes were implemented

during the PPP administration, while

three were implemented during the

PML-N administration.

Even during period of 1999 to 2008 the

then government did not hesitate in

reaching out to the IMF, and secured

SDR 1.33 billion in two attempts in

nine years, though on very low interest

rates.

The newly elected administration

went to the IMF in 2008 and received

the largest IMF rescue package in our

history, totaling SDR 4.94 billion.

According to the IMF, Pakistan was

required to execute changes such

as better tax administration, the

elimination of some tax exemptions,

and the establishment of an interest

rate corridor. Macroeconomic policies,

on the other hand, were excessively

expansionary, and fundamental

reforms to address the economy's

waiver from 15-17 percent sales tax

is so lucrative that many a time the

established industries in other regions

relocate their setup to the new area.

Those that fail to relocate, close down.

Thus, jobs are created in an area at the

expense of the other.

Tax incentives should be limited to

the industries that do not exist in

Pakistan. Instead of tax incentives,

the state should provide free of cost

land in industrial estates with a stateof-the-art

infrastructure and assured

availability of utilities.

14

May - Jun - 2022

structural difficulties were not

effectively addressed.

The government and the mission

agreed on a number of policy priorities,

including tighter fiscal policy, a less

accommodating monetary policy

posture, and structural reforms. The

administration at the time realised that

the economy was underperforming

and that an annual gross domestic

product (GDP) was required.

In 2013, the IMF programme was

continued by the newly elected

government, resulting in the second

largest loan of SDR 4.399 billion.

According to the IMF, this threeyear

programme (which ended

in September 2016) improved

macroeconomic resilience. In its

concluding statement, the IMF claims

that this programme enhanced growth,

lowered the fiscal deficit, and restored

foreign currency reserves.

Reforms to the structure were also

initiated. In the year 2019, The

payment is part of a $6 billion

(€5.34 billion) rescue package

that Pakistan received in May

2019 after lengthy negotiations.

The IMF will conduct frequent

inspections of the country's

economic strategy and growth

over the 39-month loan

programme, which is intended

to assist cover substantial budget

shortages.

According to reports in the media,

Pakistan and the International

Monetary Fund (IMF) have agreed

in principle to prolong the delayed

bailout programme for up to a year

and increase the loan size to $8 billion,

providing markets with much-needed

stability and breathing space for the

incoming government.

After sector-specific long-term policies

(five years and more) have been

announced, tinkering with the rules

goes on. This impacts the business

plans of investors who commit their

resources based on the original policy.

Ideally, there should be a single policy

for all sectors that provides for a levelplaying

field to all. Else, sector specific

policies should come for 10 years

with iron-clad guarantees against any

revisions.

Courtesy - ( The News )

TRADE CHRONICLE

State of the manufacturing sector

By Mansoor Ahmad

New employment opportunities

are mostly created by the

manufacturing sector. In

Pakistan, the sector is not growing.

This is the main reason for widespread

unemployment.

The daily wage workers and those

employed in small/ micro industries

enjoy almost no growth in their

careers. Workers in large and medium

industries alone have a chance to

move up in their careers from machine

helpers to operators; even go on

to become supervisors. They have

permanent jobs. They are rewarded as

and when they improve their skills and

become more productive. They work

for eight hours a day and are eligible

for overtime if they must work extra

hours. They are entitled to yearly and

casual leaves.

The manufacturing sector is a part of the

industrial sector that includes mining

and quarrying, manufacturing, power

and gas production and construction.

The share of manufacturing is the

largest among these four. A decade

ago, the share of the manufacturing

sector in our GDP was 14.51 percent, of

which LSM accounted for 12.2 percent

and small-scale manufacturing for

1.25 percent.

In 2018, the share of manufacturing

declined to 13.02 percent, of which

LSM share was 10.29 percent and smallscale

manufacturing was 1.52 percent.

By 2021, the share of manufacturing

had come down to 12.52 percent.

The share of LSM was 9.54 percent

and small-scale manufacturing 1.68

percent.

Our governments have been

manipulating the statistics. The

manufacturing sector is not in a good

shape. The growth that we show in any

period relates to the production that

was recorded during the corresponding

period the previous year. When

production of cars, for instance, was

completely stalled for some months

during the Covid-19 closures, growth

in the corresponding months next year

was 50-100 percent.

That does not mean that the car

sector is flourishing. The fact is that

production even in the ‘high-growth

months’ was lower than the production

recorded 14 years ago in

2007-08. We have not added

to the capacity in most of

the large-scale manufacturing

sector in the last three decades.

The cement sector is the only exception

where the capacity has increased sixfold.

Basic textile is another subsector

where new investment has been made.

But then more than 120 spinning mills

have been closed over the last decade

due to obsolescence of technology.

The automobile sector has also

enhanced its capacity through the

entry of new global brands. Still, we

are producing fewer cars than were

produced in 2007-08. The high-end

car production has started overtaking

the small car segment. The foreign

exchange consumed on high-end cars

is more than double that used on the

1000 cc or smaller engine cars.

When growth slows, growth in largescale

manufacturing goes down. It can

even record negative growth. When

growth picks up, the LSM growth picks

up, too. The see-saw movement has

been going on for the last 30 years with

almost the same capacity.

We often talk about the plight of the

SMEs. The SMEs are the suppliers

of components and services to the

LSM. They operate on low margins.

In times of growth, the existing SMEs

flourish as supplies to LSM increase.

When the chips are down in LSM the

SME supplies reduce and, in some

cases, the volume of orders is so low

that they operate in red. If the gloom

prolongs, even well-established SMEs

close down. Take, for instance, the fate

of dozens of vendors of tractors that

have closed shop as tractor production

dwindled.

The expansion in the mediumsized

apparel industries has been

impressive in the last two years. These

entrepreneurs mostly started with

low resources but with hard work and

15

May - Jun - 2022

dedication have gradually scaled up.

They are not served well by the banks.

The apparel manufacturers continue

to reinvest what they earn to build

capacity.

At the same time, they provide inhouse

training to their workers to make

up for shortage of skilled apparel staff.

The apparel exporters are the largest

providers of quality skilled jobs in

Pakistan. Unfortunately, the spinners

and weavers that have huge capital

have ignored the apparel sector for

long. They have now started investing

in this sector after seeing small apparel

exporters overtake them in textile

exports.

Currently, the top four exporters from

Pakistan belong to the apparel sector

(readymade garments and knitwear).

Ten years ago, none of them was among

the top 25 exporters. If the moneyed

basic textile tycoons shed their

lethargy, we may see robust growth in

apparel exports and job creation.

Among the large-scale manufacturing

sector, the cement units and sugar

mills are monopolised and protected

sectors. The number of cement units is

almost the same as in 1990 when all of

these were in the public sector. In the

last 32 years hardly an entrepreneur or

two have established new units.

The 24-25 units manage the prices

by manipulating production. They

have expanded the production

capacity manifold. The three leading

manufacturers have almost half of

the total capacity. Sugar mills are

mostly operated by political families

having representation in the national

and provincial assemblies. There is

a complete ban on establishing new

sugar mills, still many mills have

established new units hundreds of

miles away from their original setup

under the garb of balancing and

modernisation.

Only one such expansion was declared

illegal by the courts when the political

family was in power. Sugarcane, a

tropical crop, consumes a lot of water.

Even the World Bank has advised the

government to stop growing sugarcane

on a large scale. But its cultivation area

continues to grow and has encroached

on the cotton cultivation area.

The cotton crop needs much less

water and is the basic raw material for

Contiuned on 14

TRADE CHRONICLE

May - Jun - 2022

Saima Group & Agha Steel join hands to Launch Pakistan

First Eco Friendly Green Housing Structure Project

International Steels has

posted NPAT of PKR1.1bn

Agha Steel Industries Limited has

signed an agreement with Saima

Group for exclusively providing Green

Electric Arc Furnace Technology steel

rebars to its first of a kind Eco-Friendly

Green Housing Structure Project

“Saima Premium Residency”.

Addressing the occasion Mr Zeeshan

Zaki, Chairman Saima Group said

“We are very excited to launch Saima

Premium Residency as Pakistan’s

first Eco-Friendly Green Housing

Structure project that shall be built

exclusively with the finest and most

technologically advanced rebars

supplied by Agha Steel.

Steel bar prices raised

to Rs236,000 a tonne

According to media reports,

manufacturers further pushed up

steel bar prices to Rs236,000 per tonne

following an increase of Rs5,000, in

Pakistan. In the second week of June,

steel bar makers increased prices by

Rs7,000 per tonne.

According to the rates shared by various

manufacturers, Amreli Steel Limited

(ASL) increased the prices to Rs236,000

per tonne for sizes 9.5-10mm and

12mm and Rs234,000 per tonne for

sizes 16mm and above. The company

cited a continuous and unprecedented

increase in the cost of energy and the

highly volatile rupee-dollar parity.

According to the company, it can

no longer absorb the large price

fluctuations in manufacturing costs.

The same prices have been quoted by

Agha Steel Industries, which attributed

the hike to higher distribution costs

due to increasing diesel prices.

At the signing ceremony Mr Hussain

Agha, CEO Agha Steel, also expressed

his view and noted “We are delighted

to be entering into this agreement

with Saima Group for providing steel

to Pakistan’s First Eco- Friendly Green

Structure Project.

Agha Steel Industries led a Green Steel

Revolution through sustainability

of its energy mix by installing a 2.25

Megawatt solar power project and

signing a term Sheet with Engro Energy

for Renewable Energy.

Agha also stated, “Our State of the art

plant utilizes scrap-based Electric Arc

Furnace (EAF) technology. By

using recycled scrap for our

raw material, we reduce the

need for natural resources.

Our CO2 Scope 1 green-house

gas emissions and energy

consumption intensities are

approximately 7 times less than

the global steel making average,

making the Green Arc Furnace

Technology environmentally

friendly.”

The new rate of steel bars produced by

Faizal Steel is Rs235,000 per tonne for

10mm-12mm size, while the 16mm-

25mm size price is fixed at Rs233,000

per tonne.

Naveena Steel Mills has informed its

business partners about the fixing of

the new rate of steel bars at Rs232,000

per tonne for 16mm-32mm size and

Rs234,000 per tonne for 10-12mm size.

Platinum Steel Mills has announced

a new rate of Rs234,000 per tonne for

sizes 9.5-12mm and Rs232,000 per

tonne for sizes 16-25mm.

16

International Steels Ltd (ISL) has

posted NPAT of PKR1.1bn (EPS:

PKR2.60) in 3QFY22, down a sharp

c.30% qoq and c.50% yoy. The 3Q result

has come broadly in line with our

projected EPS of PKR2.70 higher-thanexpected

revenues have been offset by

lower margins. This takes 9MFY22 EPS

to PKR12.31, down c.22% yoy.

Key takeaways from 3QFY22 results:

Net revenue has clocked in at

PKR27.3bn, up 57% yoy, beating our

expectation of c.PKR20bn by some

distance, amid greater volumetric

offtake and higher CRC prices. The

surge in offtake is attributed to healthy

production volumes from the tractors

and white goods industries, in our

view.

ISL has posted gross margins of c.8.4%

in 3Q, down c.7ppt yoy, significantly

lower than our expectations of 13.5%.

This decline in margins emerged from

moderating inventory gains coupled

with lower than expected CRC-HRC

spreads, during the quarter, in our

view.

Distribution and Administration

expenses have come in at PKR346mn

(up c.35% yoy) and PKR75mn (down

c.43% yoy), respectively. Higher

distribution expenses can be explained

by greater transport costs both locally

and globally (sea freight and local

petrol prices), in our view. We await

availability of quarterly accounts for

further clarity on these items.

Finance cost of at PKR361mn has more

than doubled yoy, largely attributed to

rising borrowing costs (higher Kibor

rate) and exchange losses, in our view.

The effective tax rate clocked in at 18%

in 3Q.

ISL has posted a weak

result despite the

surge in sales, which

was overshadowed

by the sharp decline

in gross margins.

(Courtesy - Intermarket Securities Limited)

TRADE CHRONICLE

May - Jun - 2022

Pakistan's cement industry posts

mixed financial results in 9MF22

Some major cement industry players

in country have reported Pakistan

Stock Exchange (PSX) a mixed financial

result for the first nine months of the

current financial year (9MFY22) due

to increased fiancé and taxation costs.

In addition, Lucky Cement says that

the average per ton cost of sales of

the companies increased compared

to last year. This was mainly due to

a substantial increase in coal prices

and other input costs, which directly

resulted from the global commodity

supercycle followed by the continuing

conflict between Russia and Ukraine.

Industry performance 9MFY22 (July -

March 2022)

According to DG Khan Cement, in

volume terms, the total sales quantity

of the industry (Pakistan) witnessed

a decline of 2.5Mt (5.8 per cent) to

40.8Mt. The North zone registered

negative growth of 1.9Mt (5.9 per cent)

against the South Zone of 0.6Mt (5.4

per cent). Further analysis shows that

negative growth was caused by exports

that declined 2.5Mt (35 per cent) while

local dispatches almost remained the

same at 36.1Mt. Sales utilization of

industry fell to 79 per cent against 84

per cent for the corresponding period

last year. It was largely contributed

by local sales of 70 per cent against

exports sales utilization of 9 per cent.

Outlook

A research house, Topline Securities,

believes that political noise, economic

slowdown and rising cement bag costs

could further influence dispatches

going ahead. Hence, analysts expect

total cement dispatches

to clock in at 54Mt in FY22

(down 6 per cent YoY) and

51Mt in FY23 (down 5 per

cent YoY).

Financial performance in 9MFY22

Lucky Cement (LUCK) has posted an

unconsolidated NPAT of PKR11.30bn

in 9MFY22 compared to PKR11.68bn

earned in the same period last year,

recording a fall of 3 per cent. During

this period, sales jumped to PKR

58.89bn, up 25 per cent YoY, but raw

material costs rose to 39 per cent. The

fiancé’s cost increased by 10 per cent

during this accounting period.

But the good news is that the

expansion of 3.15Mt at Pezu (North) is

going smoothly. Half of the material for

civil, mechanical and electrical works

were delivered to the site. At the same

time, major plant and machinery are

expected at the plant by 1QFY23. Target

COD remains unchanged (Dec’22).

DG Khan Cement Co.

The Company has posted an

unconsolidated NPAT of PKR3.6bn in

9MFY22, up 27 per cent YoY. During

the nine months, net sales of the

Company stood at PKR43.29bn from

PKR32.74bn during this period, which

rose 32 per cent. The administrative

expenses surged to PKR552m from

PKR 467m incurred in the same period

last year. During this period, it incurred

a distribution cost of PKR1.5bn against

PKR1.4bn. An escalation of 10 per cent

and 65 per cent in fiancé and taxation,

respectively, made performance

challenging during this period.

On a happy note, the Company earned

US$50m on exports of clinker

during 9MFY22.

Fauji Cement Company

The Company posts NPAT

of PKR4.1bn for 9MFY22, up

56 per cent YoY. The sales

increased to PKR22.924bn

from PKR17.528bn, up 31 per

cent. The Company posted

good results despite having

higher fiancé and taxation factors.

Kohat Cement

Kohat Cement has posted an NPAT

of PKR4.6bn in 9MFY22, up 83 per

cent YoY. Its sales increased by 32.39

per cent to PKR 23.584bn from

PKR17.81bn during this period. It

incurred a distribution cost of PKR

85m against PKR 58m, whereas the

administrative expenses stood at PKR

257m compared to PKR 233m incurred

in the corresponding period last year.

Taxation jumped by 89 per cent for

nine months period.

The Company says that the greenfield

cement production Line in Khushab,

Punjab, is progressing as scheduled.

The land procurement process is at

its full pace, and negotiation with the

suppliers of plant & machinery is in

moving forward.

Cherat Cement

Cherat Cement (CHCC) has posted

an NPAT of PKR3.4bn in 9MFY22,

reflecting a growth of 55 per cent YoY.

It reports a higher taxation factor of

PKR1.271bn from PKR784bn, rising

62 per cent. The net sales ballooned to

PKR 22.581bn from PKR18.421bn, up

23 per cent during this period.

According to Company, work on BMR

for Cement Line 1 and installing a new

Crusher at the quarry face was affected

due to manufacturing disruptions

and international shipment delays.

Still, Company expects that it will be

completed by September 2022. In

Solar Panels Project, an 11.35 MW

solar power plant was commissioned

in March 2022, and the remaining 1.7

MW is expected to be operational in

the next two months. Land and mining

leases for the Line 4 Project have

been transferred in their name. Initial

groundwork is also underway on this

project. These initiatives will not only

enable the Company to improve its

operational efficiencies but will also

reduce costs.

Gharibwal Cement

Gharibwal Cement Limited incurred a

17

TRADE CHRONICLE

net profit of PKR 1.69bn compared to

PKR 1.17bn earned in the same period

last year. The company sales increased

to PKR11.45bn from PKR8.71bn in the

same previous year. The Company

incurred higher administrative

expenses to PKR 363m in 9MFY22

against PKR281m in the same period

last year.

Maple Leaf Cement

The Company recorded a consolidated

pre-tax profit of PKR5.79bn for the

reporting period against PKR3.65bn

earned in the corresponding period.

The consolidated tax component

amounted to PKR1.46bn for the

reporting period compared to

PKR805m in the corresponding period.

The Company, during the period,

recorded a net consolidated turnover

of PKR34.09bn against PKR26.035bn in

the corresponding period last year. The

Company’s top line increased by 31 per

cent, mainly due to improvement in

selling prices in the local market.

Pakistan started cement

export to the USA

Syedain Raza Zaidi, Chairman, Karachi

Port Trust (KPT), has announced

that bulk carrier Tomini Felicity has

loaded cement at KPT in 1.5t jumbo

bags destined for Houston, Texas

USA. He was speaking at an event to

mark the first-ever shipment to the

USA, attended by officials of DG Khan

Cement and other stakeholders in

Karachi recently.

Chairman KPT added that it is a great

achievement for Pakistani cement

manufacturers to obtain huge orders

in a very competitive environment and

hopefully would benefit Pakistan when

it needs foreign reserves.

The USA delegation recently visited

Karachi Port to review the shipment

facility earlier.

A DG Khan announcement says that

we are gathered in Karachi to celebrate

and announce that we have secured

an order from a Group in the USA to

supply 50,000t of cement every month

for the next twelve months totalling

600,000t. This figure could double if all

goes well.

May - Jun - 2022

The USA presently import cement

from Mexico, Canada, Vietnam, Turkey

and Turkey.

D.G. Khan Cement Company Limited

(DGKCC) is among largest the cement

manufacturers in Pakistan, with a

production capacity of 22,400 tons per

day (6.72Mta). DGKCC has four cement

plants, two located at Dera Ghazi Khan

and one at Khairpur Distt. Chakwal

and one at Hub Lasbela District

(Balochistan). All the plants are based

on the latest Dry Process Technology.

Meanwhile, Pakistan’s cement and

clinker exports in the first ten months

of FY21-22 (July 2021 to April 2022)

earned US$203.83m in revenue by

dispatching 5.312Mt of cement and

clinker overseas to US$225.05m from

6.624Mt of exports in the year-ago

period. Consequently, the sector saw

a fall of 9.43 per cent in dollar terms

and reported a double-digit decline

of 19.70 per cent in volume during

the export period. The negative trend

also noted exports valued in Pakistani

rupees, which eroded by 3.05 per cent

to PKR35.241bn during this period.

Pakistan has been exporting clinker

and cement to Bangladesh, Sri Lanka,

Afghanistan, Madagascar, South Africa,

Tanzania, India and now the USA.

The Company’s export volume

decreased by almost 63.36 per cent

to reach 89,225t from 243,493t in the

corresponding period. This decline is

mainly attributable to the Afghanistan

market due to the slow economic

activity post-American departure

from the country, low margins and

banking restrictions. Further, cement

dispatches to the rest of the world are

still not feasible due to high production

costs in Pakistan and increased

shipping rates. The Company has

started its capacity enhancement

project i.e. Line 4 (7000 tpd) at its

existing plant site. The construction

work is in progress at a satisfying pace,

and approximately fourteen shipments

of plant and machinery have arrived at

the construction site to date. The said

project is being financed with a mix

of concessionary debt and internally

generated cash. Management is

targeting to achieve COD in 2Q FY

2023.

A Chronicle report

DG Khan Cement to install a solar

power plant in Punjab

D.G. Khan Cement Company Limited

(DGKC) has informed Pakistan Stock

Exchange (PSX) that it has signed an

agreement and established a Letter of

credit with Reon Energy Limited for the

supply and installation of the On-Grid

Solar Power Plant of 6.952MW at its site

in Khairpur, Distt. Chakwal, Punjab.

The Solar Power Plant is to be financed

100% through the State Bank of Pakistan

Financing Scheme for Renewable

Energy. The project will be completed

in about six months and

replace electricity generated

from fossil fuels/bought from

the national grid. This will help

reduce carbon footprints that align

with our vision and approach to inch

up towards environmentally friendly

production processes.

18

TRADE CHRONICLE

High cost of manufacturing influences

cement dispatches in May 2022

Topline Securities has stated that

Pakistan’s cement sales were affected

in May 2022 mainly due to the Eid

holidays and economic slowdown.

The attrition in exports is on the back

of disruption in the global supply

chain resulting in higher sea freight

charges. The All Pakistan Cement

Manufacturers Association (APCMA)

remarked that the continuous

downfall of the rupee coupled with the

skyrocketing prices of coal, electricity

and petroleum products is badly

affecting the business momentum.

According to the data released by the

APCMA, total local/overseas cement

dispatches during May 2022 declined

by 15.85 per cent to 3.32Mt against

Pakistan seeks a consult to draw

feasibility on the cement industry

Pakistan’s government plans to conduct

research reports on the cement,

automobile and fertilizer sectors in

Pakistan. The feasibility report will

be conducted by Pakistan Industrial

Development Corporation (Pvt.)

Limited (PIDC) with the assistance

of private consultancy firms with

relevant experience and expertise in

conducting research studies especially

related to these sectors in Pakistan are

encouraged.

The research study would cover cost

analysis, challenges, sector review and

performance.

Lucky Cement plans

renewable energy project

Lucky Cement Ltd has informed the

Pakistan Stock Exchange (PSX) that the

Board of Directors of Lucky cement, in

its emergent meeting on 11 June 2022,

has authorised the management of

the company to undertake a feasibility

study for a renewable energy project at

its cement plant in Karachi, including

wind and solar power.

General Manager Finance and

Company Secretary of Lucky Cement,

Faisal Mahmood, in a bourse filing,

stated that the Lucky Cement was one

of the earliest cement companies to

install waste heat recovery (WHR) units

at both of its plant sites. Currently, the

share of WHR in the company's total

3.94Mt dispatched

during the same month

of last fiscal year. The

breakdown shows local

were 3.15Mt compared to 3.2Mt in

May 2021, showing a reduction of 1.6

per cent. However, export dispatches

suffered a massive decline of 76.97

per cent as the volumes reduced from

746,550t in May 2021 to 171,915t in

May 2022.

Cumulative dispatches

During the first eleven months of the

current fiscal year (July - May 2022),

total cement dispatches (domestic and

exports) were 47.62Mt, 8.8 per cent

lower than 52.22Mt dispatched during

the corresponding fiscal year. Further

analysis indicates that domestic

uptake reduced by 1.83 per cent to

Interested firms are

requested to submit their

Technical and Financial

Proposals for each work

separately by June 02, 2022.

Capacity/production

Separately, from July-March 2022,

Pakistan’s cement production slipped

by 2.86 per cent YoY to 36.543Mt

compared to 37.619Mt in the same

period a year ago. Last year’s report

of AHCML Research has estimated

that the total installed capacity of

cement in Pakistan is 69Mt, and ~18Mt

of capacity was in the pipeline. This

will take total production capacity

to 87Mt by FY24. Likewise, APCMA

power generation is 25 per

cent, which is environmentally

friendly and results in low-cost

energy.

Keeping up with its

commitment to promoting

renewable energy, the

company is already installing

a 34MW captive solar power

project with a 5.589MWh reflex

energy storage at its plant site

in Pezu, Lakki Marwat.

May - Jun - 2022

42.65Mt from 43.45Mt during July-

May 2021. In contrast, exports during

the same period declined by a massive

43.32 per cent to 4.97Mt from 8.77Mt

during July-May 2021.

APCMA is pining hope that in the

forthcoming federal budget on June

10, the government will relieve the

industry by reducing duties and taxes

and focusing on PSDP and CPEC

projects, which may help kick start the

industry’s revival in the next fiscal year.

data indicates that Pakistan has fifty

production lines of twenty-five plants

catering for the local requirement and

exporting surplus quantity. It includes

19 production lines in Punjab, 9 in

Sindh, 4 in Balochistan and 18 in KPK.

PIBT statement

The Punjab Board of Investment and

Trade (PBIT) has issued dozens of

No-Objection Certificates (NOCs) for

setting up cement factories keeping

in view its increasing demand in the

construction industry. The 16 factories

included four in the Mianwali district,

one in Pind Dadan Khan, two each in

Taxila and Dera Ghazi Khan and seven

in other parts of the province.

Subject to the Board's approval of the

feasibility of the renewable energy

project in Karachi, the company's

initiatives for investment in renewable

energy projects will play a key role in

cost-saving and reducing the country's

reliance on imported fuel.

19

TRADE CHRONICLE

The Economic Survey reviews

the cement industry

The Economic Survey was released on

June 09. It has reviewed the cement

industry's performance for July - to

March 22. The survey foresees growth

in the cement industry because of

Punjab’s major initiatives for issuing

NOC(s) to 25 cement companies

for grant of exploration licenses of

limestone for installation of cement

plants.

The cement industry of Pakistan has

remained under pressure since the

beginning of FY2022. This was largely

attributed to a revival in construction

Cement exports from

Pakistan show a mixed trend

Pakistan's cement exports continued

to report mixed trends in the export of

cement and clinker cumulative basis

for eleven months and in May alone

Cement dispatches declined by 7.91

percent during fiscal year 2021~22

All Pakistan Cement Manufacturers

Association (APCMA) released

twelve months of local and overseas

dispatch data today. During the fiscal

year July 21 – June 22, total cement

dispatches (domestic and exports)

were 52.89 million tons which are

7.91 percent lower than 57.43 million

tons dispatched during the last fiscal

year. The domestic uptake during July

21 – June 22 reduced by 1 percent to

47.63 million tons from 48.11 million

tons during July 20 -June 21, whereas

exports during the same period

declined by a massive 43.57 percent

to 5.25 million tons from 9.31 million

tons during July 20 – June 21.

Cement dispatches increased by 1.01

percent in June 2022. Total Cement

dispatches during June 2022 were 5.26

activities in the second half of 2020

as COVID-19 lockdowns were eased.

Since then, the demand for cement

has been said to be ‘sluggish’ due to

inflation and high commodity prices.

It also pinned its marked export fall on

political and economic instability in

Afghanistan.

The cement industry showed a decline

of 6.3 per cent in March FY2022 on a

YoY basis due to a massive reduction in

exports. Total cement dispatches stood

at 5.04Mt against 5.38Mt last year.

Domestic consumption grew by 4.02

per cent and reached 4.75Mt compared

to 4.56Mt in March FY2021. The largest

hit was observed by exports which

drastically decreased by 63.8 per cent

of FY 2022, according to the Pakistan

Bureau of Statistics. AKD Research

has attributed this mixed trend to

low export prices and increasing coal

prices, which have made exports

unattractive.

Pakistan's cement and clinker exports

in the first eleven months of FY21-

22 (July 2021 to May 2022) earned

US$211.19m in revenue by dispatching

5.465Mt cement and clinker overseas

compared to US$253.58m from

7.422Mt of exports in the year-ago

period. This leads to the sector seeing

a fall of 16.72 per cent in dollar terms

and 26.56 per cent in volume during

the export period. The negative trend

also noted exports valued in Pakistani

rupees, which eroded by 9.93 per cent

million tons against 5.21

Million Tons dispatched

during the same month of

last fiscal year.

According to the data released by the

All Pakistan Cement Manufacturers

Association (APCMA), local cement

dispatches by the industry during June

2022 were 4.97 million tons compared

to 4.66 million tons in June 2021,

an increase of 6.66 percent. Export

dispatches declined by 47.57 percent

as the volumes reduced from 542,622

tons in June 2021 to 284,471 tons in

June 2022.

In June 2022, North-based cement

mills dispatched 4.12 million tons of

cement in domestic markets, showing

an increase of 6.8 percent against 3.85

million tons dispatches in June 2021.

South-based mills despatched 856,863

tons of cement in local markets during

May - Jun - 2022

to 0.30Mt dispatches in March FY2022

as compared to 0.82Mt during the

same period last year. This was largely

attributed to rising international

freight rates, political and economic

instability in Afghanistan and a trade

ban with India.

The cement export declined in

quantity and value by 16.3 per cent

and 5.1 per cent, respectively, during

Jul-Mar FY0222. Increased production

costs, rising international freight rates,

and soaring coal prices are the main

reasons for the reduction in cement

exports. Moreover, Iranian cement

replaced Pakistani cement in the

Bangladeshi market, as the former is

economical due to its low energy cost.

to PKR36.68bn during this period.

But on a positive note, in May 2022

alone, export revenues increased 64.89

per cent, MoM, to US$7.360m on the

shipment of 151,133t, compared to

US$4.464m from 86,449t of exports in

April 2022. The quantity increased by

74.82 per cent during this period. On

the contrary, compared with May 2001

earnings of US$28.52m from 818,471t,

this represents a drop of 74.20 per cent

and 81.53 per cent YoY in value and

quantity, respectively.

Pakistan has been exporting clinker

and cement to Bangladesh, Sri Lanka,

Afghanistan, Madagascar, South Africa,

Tanzania, India and USA.

June 2022, which was 5.98 percent

higher than the dispatches of 808,490

tons during June 2021.

Exports from North-based mills

massively declined by 51.79 percent as

the quantities reduced from 201,540

tons in June 2021 to 97,163 tons in

June 2022. Exports from the South also

decreased by 45.08 percent to 187,308

tons in June 2022 from 341,082 tons

during the same month last year.

North-based Mills dispatched 39.44

million tons of cement domestically

during the fiscal year July 21 – June 22,

showing a reduction of 2.81 percent

than cement dispatches of 40.58

million tons from July 20 -June 21.

Exports from the North declined by

64.52 percent to 910,685 tons from

July 21 – June 22, compared with 2.56

million tons exported during the last

fiscal year.

20

TRADE CHRONICLE

May - Jun - 2022

Mathar Niaz, new Secretary

of Maritime Affairs

Balochistan's former

Chief Secretary

Mathar Niaz Rana

has been posted as

Secretary Maritime

Affairs Division, Govt

of Pakistan. According

to the official

notification, former Chief Secretary

Balochistan Mathar Niaz Rana, a BPS-

22-grade officer was given charge as

Secretary Maritime Affairs Division

with immediate effect.

Fauji Oil Terminal to build 6

storage tanks at Port Qasim

Fauji Oil Terminal and Distribution

Company (FOTCO) plans to invest in

developing six buffer storage tanks to

address ship traffic congestion at Port

Qasim and handle additional cargoes.

“We have already pitched this plan

to Oil and Gas Regulatory Authority

(OGRA) seeking finalisation of pricing

mechanism,” Adnan Samdani, General

Manager of FOTCO told local media.

“Once it is settled, FOTCO will be able

to finalise the volume of investment

required to build the buffer storage

tanks to handle the fuel ship carrying

50,000 tonnes of fuel in 24 hours.”

Once the proposed six tanks were in

place, the FOTCO would be able to

handle three more fuel ships of 150,000

tonnes.

“Commissioned in 1995 with a total

investment of $100 million, FOTCO is

the state-of-the-art and fully integrated

facility in the country to handle up to

12 million tonnes of fuel per annum.

It has already invested $33 million for

building storage of POL products up

to 108,000 tonnes,” he said. FTTL, a

subsidiary of FOTCO, had also invested

Rs70 million to install headers to do

away with the contamination.

Pakistan to stop marine pollution, revive

marine fisheries and nurture the Ocean

Ministry of

Maritime

Affairs,

Pakistan,

h a d

celebrated

W o r l d

Ocean Day

2022. It

includes

Mangroves

Plantation

Activity, Beach Cleaning Drive,

workshop and roadmap. Pakistan

is taking measures to stop marine

pollution, revive marine fisheries and

nurture the ocean.

Pakistan welcomes the World Bank and

other stakeholders’ role in sustainable

measures in making of Blue Economy

Development Roadmap in the country.

Federal Minister for Maritime Affairs,

Senator Faisal Ali Subzwari, stated

while attending the World Ocean Day.

Event organised by the Ministry of

Maritime Affairs as the Chief Guest in

Karachi. He emphasised more active

and efficient coordination for the

cause of ministry, partners and poor

fishery people associated with the blue

economy.

The Minister announced at the event

that “For the people of Gwadar, we

have promised some 2000 fisherman

to provide the motor boat engines for

Rs. 500m for effective fishing. We will

also provide them with a floating jetty

at Rs. 267m by the end of this year.”

While addressing, he stated that

the purpose of the event is to create

awareness in the people of Pakistan

about the potential

of our ocean as an

important asset

for sustainable

economic growth and to take collective

action to advance the sustainable

utilisation of our ocean.

Furthermore, he assured working

in close coordination with the

Government of Sindh to address the

issues related to fisheries and maritime

sector development.

Additional Secretary Maritime Affairs,

Mr Asad Rafi Chandna, also stressed

taking urgent and immediate actions

to reduce marine pollution, increase

seafood exports, and enhance coastal

tourism to flourish the blue economy

of Pakistan.

The Chairman Karachi Port Trust (KPT),

Mr Syedain Raza Zaidi, Chairman

Port Qasim Authority (PQA), Rear

Admiral (R) Syed Hasan Nasir Shah

HI(M), Chairman Pakistan National

Shipping Corporation (PNSC), Mr

Rizwan Ahmed, MD KoHFA, Principal

Officer Mercantile Marine Department

(MMD), Pakistan Marine Academy

(PMA), GM Ops KPT – Rear Admiral

Zubair Shafique, GM Tech KPT – Rear

Admiral Shahid, DG Port Qasim – R

Adm Javed Iqbal, GM Engineering KPT

– R Admiral Shahid, Country Director

World Bank, and eminent and wellinformed

participants also graced the

occasion with their presence.

After the end of the event, Minister

also attended the Q & A session

of the electronic and print media

journalists and aptly responded to all

the questions raised regarding the Blue

Economy, Marine Pollution and other

issues of Karachi.

The event was followed by

a technical consultative

workshop organised by

the WB. Joint Secretary

Maritime Affairs – Mr

Kamran Ansari presented

his views on blue economy

emerging trends and

coordinated on behalf of

the Ministry of Maritime

Affairs.

A Chronicle report

21

TRADE CHRONICLE

Hutchison Ports Pakistan to sponsor technical

training for the underprivileged youth

Hutchison Ports Pakistan, the country’s

deep-water container terminal, has

partnered with The Hunar Foundation

to support the underprivileged

young students in Pakistan. The

partnership is part of Hutchison

Ports Pakistan’s CSR programme

titled ‘Teach for Tomorrow’, which is

in line with Hutchison Ports’ Dock

School educational initiative and is

designed to provide financial support

and technical training to facilitate the

youth to build their future.

The young aspirant students will

be enrolled in different training

programs, including

Electrical Technology,

Mechanical Technology

(Machinist & Welding),

Heat, Ventilation,

Air Conditioning &

Refrigeration (HVACR)

and Mechatronics

(Robotics and Industrial

Automation). The

training program will

PIBTL plans to bring more efficiency

to cargo handling operations

Pakistan International Bulk Terminal

Limited (PIBT) has released

performance details for the period

ended March 31, 2022. Its revenue

stands at Rs 7.469 billion during nine

months of July - March 2022 whereas

gross profit at Rs 1.930 billion during

this period.

During the period, the Company has

handled 6,171,696 tons of cargo against

7,181,957 tons in the same period last

year, which is in line with the industry

demand for imported coal. The

Company's management focuses on

strategies to bring more efficiency to

cargo handling operations and provide

unparalleled services to its customers.

During the period, the Company

has posted a net loss after taxation

primarily due to the impact of currency

devaluation on USD-denominated

foreign loans.

Going Forward

Corresponding to the business

performance above, which is consistent

with the industry demand, the

last for a total

duration of

six months,

starting from

July till December 2022.

While commenting on this

development, Capt; Syed Rashid Jamil,

Head of Business Unit, Hutchison

Ports Pakistan, said, “Given the current

economic slump and the issues our

country has with low GDP growth

despite a large youth population,

developing competent workforces for

tomorrow can serve as a concrete and

long-term solution. Our partnership

with The Hunar Foundation is in line

with the same objective. Hutchison

Ports Pakistan intends to create a

sustainable change by helping young

Company is committed to

enhancing shareholders'

value while improving

the productivity of cargo

handling operations with an overall

vision to mitigate the environmental

and proficiency concerns at the

country's port infrastructure and

enhance our shareholders' value.

In the end, the Board of Directors of

the Company would like to reiterate

their commitment to operating

efficiently Pakistan's first state-of-theart

mechanized bulk cargo terminal

for the handling of Coal, Clinker &

Cement, compliant with international

standards of excellence, which will

curtail environment pollution and

modernize the port infrastructure of

the country.

The Company entered into a Build

Operate Transfer (BOT) contract

with Port Qasim Authority (PQA)

on November 06, 2010, for the

construction,

development,

operations and management of a coal

and clinker/ cement terminal at Port

Muhammad Bin Qasim for thirty years.

May - Jun - 2022

students’ education as a first step, as

well as improving their livelihoods

through providing work opportunities

at our terminal.”

“Any part of technical training that

might offer a young person the

means to earn a living for their

family is crucial,” Abbas Akberali,

Founding Board Member of The

Hunar Foundation, said during the

collaboration. “I am delighted that

Hutchison Ports Pakistan is partnering

with us to achieve our shared goal

of imparting life and other skills to

produce all-around, excellent human

beings for society”, he added.

Hutchison Ports Pakistan’s initiative

of supporting inclusive and

equitable education

of the students

and later providing

them internship

opportunities at

its terminal in

the Engineering

department is truly a

testament to its longterm

commitment to a

sustainable future.

Ahsan says Gwadar

completely neglected

in last four years

Federal Minister

for Planning

Ahsan Iqbal has

said that Gwadar,

the gateway of

China-Pakistan

E c o n o m i c

Corridor, has

been completely

neglected in the last four years.

He was talking to the media after his

meeting with the Vice-Chancellor

Government College University Lahore

Asghar Zaidi.

He said that due to negligence the

depth of the port was decreased from

18 meters to 11 meters and it is not

possible for a large ship to anchor

at the port. Only small ships were

anchored there. He termed it as a

criminal negligence against CPEC.

Earlier, during his meeting with the

Vice-Chancellor GCU, Ahsan Iqbal

has stressed the need for modernizing

teaching methodologies in the higher

education institutions.

22

TRADE CHRONICLE

Economic survey FY22

reviews maritime sector

Karachi Port Trust

During July-March FY2022, Karachi Port

Trust managed a total cargo container

volume of 39,713 million tonnes (Table

13.6). It recorded 1 percent increase

in total cargo and container handling

over the last year. While import cargo

container decreased by 2 percent and

export increased by 7 percent in the

period under review.

Port

Authority

Qasim

Port Qasim Authority

handled a total cargo

volume of 42.199

million tonnes in

first nine months

of FY2022. Out

of which 35.834

million tonnes were

imported and 6.365

million tonnes

were exported, as

illustrated in Figure1.

Gwadar

Authority

Port

Gwadar City

Development The

development of

Gwadar is a priority

for the Government

of Pakistan (GoP).

The

commercial,

political, socioeconomic,

and

regional connectivity

related benefits

that can be realized

once the port (and

the city) reaches its

full potential. Lying

at the mouth of the

Persian Gulf, Gwadar

is a strategic warm

water deep seaport

being developed

under CPEC.

In the win-win cooperation framework

between China and Pakistan, Gwadar

projects have achieved significant

progress. For a sustainable way

forward, the Federal Government and

Provincial Government of Balochistan

are making all-out efforts to realize the

planned CPEC projects in Gwadar at

the earliest. The master plan of Gwadar

city has been approved in the

FY2020. Also, the land use regulations

notified by GDA and the project for

implementation of the plan is in

progress. Work on NGIA is underway.

Eastbay Expressway project is

substantially completed and it will be

inaugurated in June 2022. Moreover,

Pak-China Vocational & Technical

Institute in Gwadar was inaugurated

in September 2021. Work on Pak-China

Friendship Hospital project at Gwadar

is underway and likely to achieve CoD

by November 2022. Also, projects

related to the provision of drinking

water such as "Necessary Facilities

of Fresh Water Treatment, Water

Supply and Distribution" & "1.2 MGD

Desalination Plant" are in construction

process. Measures are also underway to

expedite Gwadar 300 MW Coal Power

23

May - Jun - 2022

Plant, Construction of breakwater

and dredging of berthing areas and

channels.

Pakistan National Shipping

Corporation (PNSC)

Despite the prevailing unfavorable

macroeconomic condition of the

country, the PNSC Group has managed

to achieve (98 percent) increase in

profit after tax to Rs 2,446 million

as against Rs 1,235 million in the

corresponding period last year. Group

earnings per share

increased to Rs 18.52

million as against

Rs 9.35 million in

the comparable

period last year.

Cumulatively, the

Group achieved a

turnover of Rs 16,223

million (including Rs

6,295 million from

PNSC) as compared

to Rs 9,633 million

(including Rs 1,978

million from PNSC)

for the same period

last year. The major

increase was seen

in the Dry Cargo

segment (including

slot charter) which

was increased by Rs

3,036 million.

The revenue from

Liquid Cargo

segment increased

by Rs 3,543 million

mainly due to

increase of Rs 2,980

million from Foreign

flagged vessels. The

controlled strategies

implemented by

management caused

other expenses at

the group level to

fall by Rs 188 million

(52 percent). During

the nine months of

FY2022, the cost on

long-term financing decreased by Rs 46

million (11 percent). At present, PNSC

fleet comprises of 11 vessels of various

type/size (05 Bulk carriers, 04 Aframax

tankers and 02 LR-1 Clean Product

tankers) with a total deadweight

capacity (cargo carrying capacity) of

831,711 metric tons, i.e. highest ever

carrying capacity since inception of

PNSC.

TRADE CHRONICLE

DP World and CDPQ announce US$5 billion

investment in strategic assets in the UAE

DP World and CDPQ, a global

investment group, announced recently

an investment of US$5 billion (CA$6.3

billion) in three of DP World’s flagship

UAE assets.

CDPQ will invest US$2.5 billion in the

Jebel Ali Port, the Jebel Ali Free Zone and

the National Industries Park through a

new joint venture in which it will hold

a stake of approximately 22%, with the

remainder of the transaction being

financed by debt. Other long-term

investors will have the opportunity to

acquire an additional stake of up to

US$3 billion. The transaction implies a

total enterprise value of approximately

US$23 billion for the three assets.

· Jebel Ali

Port (JAP)

- A leading

international

gateway port and the second largest

outside of Asia, ideally located to serve

the East-West trade corridor through

its connectivity to 150 cities globally

via 180+ shipping lanes.

· Jebel Ali Free Zone (JAFZ) - The

largest free zone in the Middle East

and one of the largest in the world.

It is home to companies from 140

countries, including approximately

150 Fortune 500 enterprises.

· National Industries Park (NIP)

- A 21 sq. km area designated for

manufacturing and processing

companies.

May - Jun - 2022

Debt to EBITDA and this has been

achieved despite the challenges of

the pandemic and recent global

economic conditions. The significant

strengthening of our balance sheet, the

continued resilience of our business,

diversity in our portfolio and continued

focus on supply chain solutions will

support our target of achieving a strong

investment-grade rating for the Group.

Overall, we believe this transaction

provides a strong platform for the UAE

assets to meet their long-term growth

objectives, while the stronger balance

sheet supports the Group’s wider endto-end

supply chain solution strategy,

which will drive sustainable value for

all DP World stakeholders."

Emmanuel Jaclot, Executive Vice-

President and Head of Infrastructure

at CDPQ, said: "This investment in

The Jebel Ali Port, Free Zone and

National Industries Park together

comprise a best-in-class group of

infrastructure with a solid long-term

track record of growth. Combined,

they form a world-class integrated

ecosystem for the supply and logistics

chains of over 8,700 companies from

around the world, serving more than

3.5 billion people globally. The three

assets generated pro-forma 2021

revenue of US$1.9 billion.

The three assets will remain fully

consolidated businesses within

the DP World Group, and day-today

operations, customers, service

providers and employees will not be

affected.

Sultan Ahmed Bin Sulayem, Group

Chairman and CEO, DP World, said:

"We are delighted to announce the

broadening of our partnership with

CDPQ. The DP World and CDPQ

co-investments have been very

successful, thanks to our

complementary expertise

and long-term investment

horizon. We believe this new

partnership will enhance

our assets and allow us

to capture the significant

growth potential of the wider

region. The transaction also

achieves our objective of

reducing DP World’s net

leverage to below 4x Net

24

Jebel Ali is another great illustration

of the partnership between CDPQ

and DP World, which now spans four

continents and eighteen terminals.

Today, we are pleased to deepen our

long-standing relationship with a

world-class logistics and supply chain

operator by investing in this strategic

trade infrastructure, one that will play a

pivotal role in the evolution of the global

economy. DP World is well positioned

to provide innovative solutions to

their customers worldwide, and we

welcome this opportunity to invest in

a best-in-class group of infrastructure

that provides CDPQ with exposure to

new fast-growing markets and trade

routes in Africa and South Asia."

Tranche 1 (US$5 billion) of the

transaction is expected to close in

the second or third quarter of 2022,

and tranche 2 (up to US$3 billion) is

expected to close during the fourth

quarter of 2022.

TRADE CHRONICLE

May - Jun - 2022

PFMA calls for luxury items

import ban to stay for five years

Chairman

of Pakistan

Footwear

Manufacturers

Association

( P F M A )

Mr Zahid

Hussain, has

said that due

to sustained

growth, the

country’s shoe

export is on

the higher side, and this stability in

the sector is a welcome sign. This is

mainly possible due to the effective

and dynamic trade policy for which

the government lent commendable

support. He said this while addressing

a press briefing at a Lahore hotel

recently.

“The govt decision to impose a ban on

the import of luxury goods is a wise

and right decision. We call upon the

government to sustain this ban for at

least five years so that the industry

could grow and exports could be

increased,” he said, adding that this

measure will also lead to the creation

of 25,000 jobs for engineers, diplomas,

degree holders and skilled workers.

Mr Zahid Hussain said this would

lead to 100 per cent local shoe

manufacturing during the next five

TDAP to organize conference

on Pak-China trade

Pakistan will organize a conference

on the impact of China Pakistan Trade

Agreement (CPFTA) on bilateral trade

and investment in the Mineral Sector,

Leather Sector, Meat and Fishery

Sector, Engineering Sector, Textile and

other Value Added Sectors.

Trade Development Authority of

Pakistan (TDAP), in collaboration with

the China Study Centre, Institute of

Business Administration (IBA)

Karachi and Applied Economics

Centre (AERC), is organizing a

daylong conference on the China

Pakistan Free Trade Agreement

(CPFTA) in Karachi on June 30.

years. “We had set the shoe

export target of USD 1 billion

for the year 2027, but hopefully,

we shall achieve this target by

2026,” he said, adding the component

and shoes-making production had

increased to 20 per cent and crossed

the exports target of USD 180 million.

He said that the PFMA is part of

the government strategy for cluster

development, which will also augment

the shoe manufacturing sector in

Pakistan to become the number in

the region besides competing Brazil,

Vietnam and China.

He requested the government to grant

concession in the taxes, "extension

in Local Taxes and Levies Drawback

(DLTL) scheme so that the sector

could progress and play an effective

part in the income generation,” he

maintained.

The footwear industry faces some

challenges that need the key

policymakers’ attention for immediate

resolution. Some of the most

important ones are the resumption

of the Extension in Local Taxes and

Levies Drawback (DLTL) scheme

for three years at least. It will enable

the industry to position itself in the

international market and waiving off

ACD and RD on all the raw materials

for the footwear industry and put them

in the lowest slab of custom duty to

promote “Made in Pakistan Initiative.”

The conference will provide

a platform for academics and

practitioners to present their

research and ideas on the current

trends in the bilateral trade between

Pakistan and China in the context

of CPFTA. This conference aims to

explore and identify potential areas to

increase the exports from Pakistan to

China. The conference will attempt to

bridge the gap between the researchers

and trade associations and bring

them together to discuss potential

opportunities from CPFTA.

The conference's overall

theme is the impact of China

Pakistan Free Trade Agreement

(CPFTA) on bilateral trade and

investment.

The exports of leather

tanned grow remarkably

in July-March 2022

According to Economic Survey for

FY21, the trend of Pakistan’s export of

major items remains more or less the

same, concentrating on three things:

cotton manufactures, leather and rice.

These three categories account for 69.9

percent of total exports during July-

Mar FY2022.

During this period, the export of

leather tanned grew remarkably in

quantity and value by 49.6 percent and

36.3 percent, respectively. The leather

industry witnessed a steady recovery

because of prudent government

policies and significant relaxations

in lockdown at various export

destinations.

In the case of sports goods, gloves

exports increased in quantity and value

by 132.5 percent and 16.4 percent,

respectively, during July-Mar FY2022.

Gloves exports were recorded at US$

56.7 million. Another major sports

good, football, increased quantity and

value by 37.8 percent and 40.3 percent,

respectively.

The forecast for football exports is

remarkable as FIFA World Cup is

set to commence in Doha, Qatar, in

November 2022. Pakistan has been the

official makers of match-ball since the

1982 FIFA World Cup. The ball named

‘Al-Rihla’ has been manufactured in

Pakistan by Adidas.

The USA is the largest export market

for Pakistan’s products, with a 20

percent share in Pakistan’s total export

in 2020-21. Pakistan’s main exports to

the USA are articles of apparel & home

textiles (78percent), intermediate

textile (6 percent), leather apparel (3

percent), sugar candy, rice, spices etc.

(3 percent), surgical goods (2 percent),

plastics and rubber (2percent), and

furniture & sports goods (2percent).

25

TRADE CHRONICLE

PTA budget's suggestion

Pakistan finished leather exports

continue posting an average growth of

over 30%, and the overall leather sector

with allied commodities 15% for the

last four months on a cumulative basis

from January to April 2022. However,

this growth can take a reverse trend

due to deep apprehension about the

discontinuation of the power tariff

to five export-oriented sectors of the

country, including the leather sector of

Pakistan.

Since the next budget FY23 is scheduled

in June, the Chairman, Pakistan

Tanners Association (PTA) Amanullah

Aftab, has requested the government

resolve pending issues.

Pakistan leather industry

exports grow in 10MFY22

According to data compiled by the

Pakistan Bureau of Statistics (PBS) Govt,

Pakistan's leather industry exports saw

a double-digit growth between July

2021 and April 2022 due to a noticeable

increase in finished leather, garments,

and footwear export. The leather

industry export revenue has surged to

US$818.283 million during this period

compared to $705.583 in 10MFY21, up

15.97 percent YoY.

Bangladesh sets export target

of $10-12bn for leather industry

The Bangladesh leather industry

has recorded tremendous growth

in the export of leather, goods, and

footwear during the first eleven

months of the ongoing financial year

2022. In addition, the government

has tentatively fixed a $10-12-billion

export target for the country's leather

and leather goods by 2030.

According to Bangladesh Export

Promotion Bureau (EPB), the country

Indian leather exports post

32.35% growth in FY22

According to the Indian Council for

Leather Export (CLE), the export

of Leather and Leather Products,

including Non-Leather Footwear had

earned US$ 4.872 billion during the

financial year - from April 2021 to

March 2022 against the acquiring of

$3.681 billion in April-March 2020-21,

recording a growth of 32.35% on YoY

01. Finalization with early issuance

of SRO in supersession of SRO # 711,

which is already expired in June’2021

for DLTL with the inclusion of “finished

leather” @ 4% irrespectively, which

is pending at cabinet for the final

approval for issuance of SRO.

02. Immediate removal of an

anomaly for 5% withholding sales tax

on the purchase of raw hides & skins

whereas the “raw hides & skins” is

already included in recently approved

finance act, 2021 under clause # 46aa as

“agriculture produce item” resultantly

all taxes is now exempted.

03. Request for removal of 100%

cash margin imposition on import

of tanning industry under two H.S.

The breakdown shows that

Pakistan exported 13.242

million sqr. mtr tanned leather

at $172.742 million, compared

to 9.045 million sqr mtr at $129.536

million, thus recording a growth of

46.40 percent and 33.35 percent in

terms of quantity and value dollar,

respectively, over July – April 2021.

Similarly, Pakistan exported leather

manufacturing worth $515.449 million

during this export period; (1.501

million dozen leather garments at

$262.106 million, 8.919 million dozen

earned export revenue of

US$1.115 billion between July

2021 and May 2022, compared

to $846.08 million earned in the

same eleven months of the previous

fiscal year. It translates to a growth of

31.85 on a YoY basis. The export has

surpassed the target of $ 944.78 million

by 18. 08%.

The breakdown shows that Bangladesh

received $139.93 million on exports of

finished leather between July and May

2022 compared to $108.84 million in

the same period last year, which shows

basis.

The breakdown shows that during the

twelve months of 2021-22, finished

leather exports rose in value by 20.59%

to $456.10 million from $378.23

million in the same period last year.

Leather footwear, up 37.80% to $2.047

billion from $ 1.485 billion, and leather

garments by 15.84% to $342.38 million

from $295.56 million during these

twelve months corresponding to last

May - Jun - 2022

codes # 3204.1300 & 3402.1190, which

is imposed.

04. Request for removal of irrational

condition of heath certificate

(quarantine) on import of raw materials

for tanning industry (rawhides & skins,

wet blue & pickled leather of cow,

buffalo, sheep & goatskins) as imposed

recently in import policy-2022.

leather gloves at $237.482 million and

other leather manufacturing $15.860

million) compared to $468.678 million

in July – April 2021. It recorded an

expansion of 9.98 percent.

Pakistan footwear export comprises

15.667 million pairs of shoes at $130.092

million during these ten months (July –

April 2022) of the current financial year

compared to 14.032 million pairs at

$107.369 million July-April 2021. Thus,

export recorded a growth of 11.65

percent in quantity and 21.16 percent

in value on a YoY basis.

a growth of 28.56%.

The exports of leather

products have also

expanded to $302.66

million during these eleven

months from the $225.81 million of the

same months of last year. It translates

to a growth of 34.03% on a YoY basis.

On a more positive development, the

leather footwear exports grew 31.59%

to $672.98 million in July – May 2022

from $511.42 million in the previous

fiscal year.

year.

The leather goods export also increased

by 36.30% to $1.287 billion from

$944.31 million during

this export period.

Similarly, Saddlery

and Harness export

rose to $276.10 million

from $186.18 million,

reflecting a growth of

48.30%.

26

TRADE CHRONICLE

May Nov - Jun Dec - 2022 2021

Mohamed bin Zayed

becomes UAE President

The UAE’s longtime

de facto ruler

Sheikh Mohamed

bin Zayed Al Nahyan

was recently elected

as President of the

country, a day after

the death of former

leader Sheikh Khalifa.

The 61-year-old was unanimously

elected by the Federal Supreme

Council, WAM news agency said,

becoming the ruler of the oil-rich

country founded by his father in 1971.

Sheikh Mohamed, often known as

“MBZ”, met members of the Federal

Supreme Council, made up of rulers

of the UAE’s seven emirates, as the

country enters a period of mourning

for his half-brother Sheikh Khalifa.

Sheikh Mohamed’s ascension, which

was widely expected, formalises his

position as leader of the desert state

of 10 million after years of calling

the shots while Sheikh Khalifa was

sidelined by poor health.

Under his low-key direction, the

United Arab Emirates has put a man

into space, sent a probe to Mars and

opened its first nuclear reactor, while

using its oil-funded clout to develop a

more assertive foreign policy.

Ahad Cheema appointed

advisor to PM

President Arif Alvi recently appointed

Ahad Khan Cheema, a former

bureaucrat, as Advisor to Prime

Minister Shahbaz Sharif on the

establishment.

The official notification for Cheema's

appointment stated that his

designation will be equal to that of a

Federal Minister.

Ambassador

D o n a l d

Bloom has

assumed the

office at the

US Embassy

in Islamabad.

US Ambassador

assumes office

According

to a press

release issued by the US Embassy,

Ambassador Bloom would lead the

ongoing efforts by the US mission

in Pakistan to promote bilateral

relations and work with the incumbent

government for a stable, secure and

prosperous future of this country.

The ambassador has possessed huge

experience and expertise to achieve

the set goals. On the occasion,

Ambassador Bloom said that he is

happy to be in Pakistan and finds it

an opportunity to know this beautiful

country and its people. On the

occasion of the 75th anniversary of the

establishment of relations between the

United States and Pakistan, he said that

he would continue to work for further

strengthening the relations between

the two countries.

Dr Murtaza Syed made

SBP acting governor

Dr Murtaza Syed,

Deputy Governor

of the State Bank

of Pakistan (SBP),

has taken over as

acting Governor

of the central bank

after the federal

government

decided not to extend the tenure of Dr

Reza Baqir after completing his threeyear

tenure.

“As the term of Governor SBP Dr Reza

Baqir has come to an end, as per law

the senior most Deputy Governor takes

over until further orders. Therefore Dr

Murtaza Syed, an eminently qualified

economist with rich IMF experience,

will take over as Governor SBP,” said

Federal Minister for Finance and

Revenue Miftah Ismail on twitter.

27

Ghulam Nabi Memon

appointed Sindh IGP

The federal

government has

approved the

appointment

of Ghulam

Nabi Memon as

Inspector General

(IG) Sindh Police,

local channel reported.

According to details, the federal

government appointed Ghulam Nabi

Memon as IG Sindh on the provincial

government’s recommendation.

Nabi is currently serving as Additional

Inspector General (AIG) in Karachi.

He has also served as AIG in Special

Branch.

It is to be noted that Kamran Afzal was

appointed the IG Sindh a few days

back. However, the Sindh High Court

(SHC) had stopped him from working

after he failed to present Dua Zehra,

who had run away from her home to

Lahore.

Journalist Fahd Husain

appointed SAPM

Prime Minister

Shehbaz Sharif has

appointed journalist

and political

commentator

Fahd Husain as his

special assistant, it

emerged recently.

The notification for Husain’s

appointment said’ “The Prime

Minister, in terms of rule 4(6) of Rules

of Business, 1973, has been pleased to

appoint Syed Fahd Husain as special

assistant to the Prime Minister with

the status of federal minister, with

immediate effect.”

The notification, issued by the Prime

Minister’s Office, had no details about

the newly appointed aide’s portfolio.

Husain, a senior journalist, has been

writing for various newspapers,

including Dawn and The Express

Tribune. He is also the anchorperson

of TV programme ‘In Focus’.

TRADE CHRONICLE

IFC to invest $25m

in fashion retailer

The International Finance Corporation

(IFC) is investing in Pakistan’s top

fashion retailer to create jobs, promote

gender equality, and support the

country’s crucial textiles sector in the

wake of Covid-19 pandemic.

IFC will invest the equivalent of $25

million in Pakistani rupees for a

minority stake in Khaadi Corporation,

which has 57 retail outlets spread

across Pakistan and also boasts

presence in the UK and GCC countries.

The funding will help the company

First woman police

surgeon appointed

Senior medico-legal officer Dr

Summaiya Syed became the first

woman who has been appointed as the

police surgeon.

Former police surgeon Dr Qarar Ahmed

Abbasi said that after late Prof Farhat

Mirza, Dr Syed was the first female

police surgeon who had expertise in

forensic science.

He said that Dr

Syed had a vast

experience in

medico-legal

cases.

He said it was a long-standing demand

of MLOs that the post of police surgeon

should be given to relevant technical

expert.

Mian Akram Farid becomes

acting EFP president

Mian Akram Farid, Director EFP

Board will serve as acting president

of Employer’s Federation of Pakistan

from June 7 to June 13, 2022.

According to the statement, a threemember

employer’s delegation from

Pakistan led by Zaki

Ahmed Khan, VP

EFP, were attending

the Internal Labour

Conference being

held in Geneva

while Ismail Suttar,

EFP President, was

leaving for US on

June 7.

accelerate its growth by expanding

its retail footprint and online global

sales. It will also indirectly support the

retailer’s suppliers in Pakistan, many of

whom are smaller businesses.

“The textiles and retail industry is a

core part of Pakistan’s economy and a

major employer of women, especially

in the garment sector,” said Zeeshan

‘Sindh opens for investment’

Sindh Chief Minister Syed Murad

Ali Shah recently said the potential

projects for investment in the province

included a wide variety of sectors

including water and the environment,

education and technology, industrial

zones, eco-tourism, urban ecosystems

and food security, with an estimated

cost of $6 billion.

Speaking at the Sindh Investment

Conference (SIC) in Davos, where

he was the chief guest, Mr Shah

highlighted the strides Sindh has made

over the last few years in achieving

socioeconomic development in sectors

such as health and education as well as

infrastructure and communications.

Mr Shah emphasised the government’s

continuous efforts to develop the

Thar Coal Project, which would be a

mainstay of energy production not only

for Sindh but for the whole country.

National Foods to set up

fifth plant in Faisalabad

National Foods Ltd is setting up its

fifth plant in the M4 Industrial City

of Faisalabad, said a company official

recently.

Briefing a group of journalists at the

Port Qasim factory of the manufacturer

of convenience-based food products,

the official said the 30-acre Faisalabad

plant will be the company’s biggest

production facility upon its completion

by the end of 2022.

Currently, the company operates three

plants in Karachi’s Port Qasim, SITE

and Nooriabad industrial estates and

one plant in Gujranwala. He didn’t

28

May - Jun - 2022

Sheikh, IFC Country Manager for

Pakistan and Afghanistan.

Since 1956, IFC has invested over

$1.2 billion in Pakistan, helping to

support smaller businesses and

spur the development of renewable

energy, hydroelectric, and wind energy

projects.

He further highlighted Sindh’s rise in

the ease of doing business rankings

through dedicated efforts, which has

made investment protocols for both

domestic and foreign investors easier.

Mr Shah invited the audience to invest

in the multitude of opportunities being

offered in Sindh through an enabling

environment rooted in comprehensive

legal and institutional mechanisms

to ensure fair practices, transparency,

and attractive economic returns. The

SIC was organised on the occasion of

the World Economic Forum by Path

Finder and Martin Dow Group in

Davos, Switzerland.

share the size of the investment.

The company posted an

unconsolidated profit of Rs725 million

for January-March, up 39.3 per cent

from a year ago. Its quarterly sales grew

23.4pc to Rs8.4 billion.

Exports contributed 6.6pc to the

company’s gross sales in the first nine

months of 2021-22. Exports represent

the sales made to NF DMCC Dubai,

which is a wholly owned subsidiary

that National Foods set up in 2012 to

boost overseas business.

TRADE CHRONICLE

IFC appoints new country

manager for Afghanistan

& Pakistan

IFC has named Zeeshan

Sheikh as its new country

manager for Afghanistan

and Pakistan. Sheikh will

aim to mobilise private

sector investment across

key sectors, building on

IFC’s global expertise and influence as

a partner of choice for both public and

private sector stakeholders.

Sheikh, a British national, joined IFC

in 2010. He has worked extensively

on public-private partnerships and

innovative infrastructure investments

across the Middle East and North

Africa, often in frontier markets like

Pakistan, Afghanistan, Iraq and Jordan.

Careem partners with TDCP

Tourism Development Corporation

of Punjab (TDCP), the main wing of

Punjab Tourism department aimed

to promote tourism particularly in

Punjab and Pakistan in general, has

joined hands with Pakistan’s renowned

ride-hailing platform Careem. To

increase the magnitude of tourism,

this partnership is launching a new car

type specifically for guided tours called

“Safe and Secure Tourism (SST)” in

Lahore.

In this regard, TDCP and Careem

signed an agreement recently at the

head office of TDCP in Johar Town.

According to the agreement, TDCP will

train 10 Careem Captains to become

certified guides for visitors to the

historical and cultural city of Lahore.

Additionally, Careem will also become

the official partner of TDCP in mobility

to facilitate local and foreign tourists

visiting the country.

Talking on this occasion, Asadullah

Faiz, Managing Director TDCP, said

that, “Three routes have been finalized

for this service initially; the first

includes factual and instructive tours

of Lahore Museum, National history

museum, Lahore Fort, and Badshahi

Masjid. The second route would

facilitate the tourists to experience

the visits of landmarks of Mughal

Architecture like Wazir Khan Masjid,

Shahi Hamam, Shalimar Gardens

where they will get to see the craft

work and traditional skills. The third

route will take the tourists to Wahgah

Border.”

A delegation of Consumer Association

of Pakistan led by Chairman Kaukab

Iqbal called on Sharjeel Inam Memon,

Provincial Minister for Information

General Secretary Businessmen Group

AQ Khalil and Ex-Officio Karachi

Chamber of Commerce & Industry

Shariq Vohra presenting crest to

High Commissioner of Bangladesh

to Pakistan, Rahul Alam Siddique

during his visit to KCCI. Deputy

The United Nations Entity for Gender

Equality and the Empowerment of

Women (UN Women) and Nishat Mills

Limited (Apparel Division) signed

an agreement to strengthen their

cooperation and promote gender

Denim International Gases, a leading

manufacturer of International

Standard Industrial and Medical gases,

has signed a tender contract with

DOW University of Health Sciences

29

May - Jun - 2022

and Transport. Saleem Khan, Zalif

Haris and Manza Naeem were also

present on the occasion.

High Commissioner of Bangladesh

Mehboob Alam, Former Presidents

Majyd Aziz and Shamim Ahmed Firpo

along with KCCI Managing Committee

Members and others are also seen in

the picture.

equality in the workplace through

capacity building initiatives on

harassment and redressal mechanisms

and gender responsive policies and

procurement, among others.

(DUHS), DOW International Dental

College Hospital and Sindh Infectious

Diseases Hospital & Research Centre

in May 2022 for supply of Liquid and

Compressed Medical Gases.

TRADE CHRONICLE

Moin A. Malik becomes

CEO of TCS Logistics

TCS - Pakistan’s largest logistics

company, appoints Mr Moin A. Malik as

CEO of TCS Logistics Private Limited.

Malik has an illustrious career in the

logistics industry with which he has

been associated for over three decades.

Before joining TCS Logistics he was the

CEO of Agility Pakistan, a company he

led for over 20 years.

Malik’s first tenure at TCS started in

1984 and by the time he left in 1997 he

had held many senior management

positions. Malik is an active member of

ACAAP, PIFFA, and Founder Chairman

of FOAP (Fleet Operators Association

of Pakistan) and is an expert in modern

Areej Khan takes charge as Chief Human

Resource Officer at Telenor Pakistan

Telenor Pakistan

announced that

Areej Khan had been

appointed the chief

human resource

officer. Areej has

been associated with

Telenor Pakistan since the pre-launch

phase over 18 years ago.

Areej was heading the Digital Division

as Vice President in her most recent

role. During her tenure, she helped

Unilever Pakistan recycles plastic waste

Unilever Pakistan has collected and

recycled plastic waste equivalent to

half (50%) of the plastic used in its

operations annually. This has been

achieved in a period of two years, as

part of the ambition of becoming 100%

plastic neutral by 2025.

Amir Paracha, Chairman & CEO,

Unilever Pakistan said on the occasion,

“Protecting the world from the impact

of climate change needs all of us to

work collaboratively. Reducing the

plastic footprint is just one aspect of

this cause and one organization alone

cannot turn the tide. We must work

together to find innovative ways to

amplify the impact of positive climate

logistics and

transportation

networks. With

experience

in express

courier, freight

forwarding, 3PL

Logistics and

Distribution Services, Malik, has

frequently liaised with international

bodies and the Government to resolve

issues related to the logistics industry.

As CEO of TCS Logistics Private Limited,

he will be leading and transforming

Warehousing & Distribution (W&D),

Fleet, Overland and involved in

further development of new business

opportunities in areas such as TIR

(Transports Internationaux Routers),

International Freight Forwarding.

shape Telenor

Pakistan’s digital

strategy while

the company

emphasised growth through industryleading

initiatives, including launching

the biggest esports platform,

GameBird.

In her new role at Telenor Pakistan,

Areej will drive the people policy and

organisational culture, with Employer

Branding, Rewards and Talent

Acquisition falling under her domain.

She will formally assume charge from

August 1 2022.

for everyone.”

actions to create a

greener, cleaner, and

more prosperous world

The announcement was made as part

of celebrations of World Environment

Day 2022, where Unilever Pakistan

announced the results of a recent

partnership, titled ‘Dastan-e-Plastic’

with ISP Environmental Solutions

for the collection of plastic waste in

Lahore. The effort is part of a pilot

project, collecting plastic waste from

5,440 households in Lahore. The

project is expected to become selfsustaining

by the end of 2022, and

provides sustainable employment

for 22 scavengers and 21 informal

recyclers (kabaris).

On the day, Unilever Pakistan also

signed an MoU with Sharmeen

Polymers to use recycled plastic in

the packaging material developed

for Unilever products.

30

May - Jun - 2022

Reon Energy and Artistic

Milliners Announces 8.5 MW

Solar Power Project

Artistic Milliners, and Reon Energy

has announced an 8.5 MW captive

solar power project. The project is set

to be installed across Artistic Milliner’s

7 units located in Korangi, Landhi

and Port Qasim industrial areas in

Karachi. The 8.5 MW solar PV project

is expected to produce approximately

13.5 GWh (Gigawatt hours) annually.

The output energy will be used on-site

resulting in substantial savings for the

company in cost of energy and will

also cut around 8,279 tonnes of CO2

equivalent emissions annually.

Speaking of the project, Omer Ahmed,

Chief Executive Officer, Artistic

Milliners stated “Artistic Milliners has

been a forerunner in the global textile

industry and has spearheaded denim

innovation and sustainability across all

its processes. The 8.5 MW Solar power

project is an additional step towards

our commitment to a sustainable

future.” “The 8.5 MW solar power

project while increasing productivity

in the textile value chain can go a long

way in in accelerating growth in the

industry, increasing its contribution

to the national GDP and supporting

the livelihoods of several people,” said

Mujtaba Khan, Chief Executive Officer,

Reon Energy.

FrieslandCampina Engro Pakistan

Limited (FCEPL), HBL, and Sindh

Enterprise Development Fund

(SEDF) collaborate to provide easily

accessible, subsidized financing

to dairy farmers in Pakistan with a

long-term commitment of five years.

The agreement was signed by Ali

Khan, Managing Director, FCEPL,

Muhammad Aurangzeb, President

& CEO – HBL, and Mehboob Ul

Haq, Managing Director, SEDF. Senior

members from both organizations

were also present at the occasion.

TRADE CHRONICLE

May - Jun - 2022

‘Telecom sector needs

to upgrade’

IT Minister Amin-ul-Haque has said

the telecom sector needed to upgrade

its infrastructure to improve quality

of services in the country. “Telecom

companies should now play their role

for gradation in urban areas as they

are being provided providing 90-95

percent subsidy for provision of mobile

services and broadband in un-served

and under-served areas,” Haque said.

Talking to a delegation of Telenor

Group, Haque said for the process

of digitalisation, it’s essential to

address public grievances and expand

networking while the ministry was

working to remove obstacles and

enhance cooperation with the telecom

sector, he added.

July-May mobile phone imports

soar 4.62pc to $1.946bn

Pakistan imported mobile phones

worth $ 1.946 billion during the first 11

months (July-May) 2021-22 compared

to $ 1.860 billion during the same

period of last year, registering a growth

of 4.62 percent, despite the increase in

local manufacturing, according to the

Pakistan Bureau of Statistics (PBS).

The overall telecom imports into

the country during the period under

review (July-May) 2021-22 increased

by 11.15 percent going up from $ 2.337

billion in July-May 2020-21 to $2.597

billion during the same period of last

period.

On a month-on-month basis, imports

of mobile phones into Pakistan

decreased by 35.54 percent during May

2022 and remained $ 137.213 million

when compared to $ 212.881 million

imported in April 2022, the PBS data

He affirmed that the

ministry would put

efforts to reduce

taxes on the sector

and other issues

related to State

Bank of Pakistan

(SBP) and the right

of way (RoW) policy.

“Digital world

needs innovation in

all fields including

e-commerce, daily

routine, without it,

no one can compete with the rapidly

growing needs of the market.”

Speaking on the occasion, Telenor’s

head of Asia and executive vice

president Jørgen C. Arentz Rostrup

extended their supports to the

country’s digital journey, saying new

revealed.

The local manufacturing plants

have manufactured/assembled

9.72 million phone handsets during

the first four months (January-April)

of 2022 compared to 0.86 million

imported commercially, the Pakistan

Telecommunication Authority (PTA)

said.

The local manufacturing plants have

manufactured/assembled 2.56 million

mobile phone handsets in April 2022

against 0.25 million commercially

imported. The manufactured/

assembled mobile phone handsets

by local manufacturing plants during

the calendar year 2021 stood at 24.66

million compared to 13.05 million in

2020, i.e. 88 percent increase.

The commercial imports of mobile

phone handsets stood at 10.26 million

in 2021 compared to 24.51 million in

2020, revealed the official data of the

Pakistan’s No.1 Voice and Data Network Ufone 4G

introduces Industry’s ‘Sab Se Bari Offer’

technologies were imperative to bridge

the digital and connectivity divide.

Telenor Pakistan CEO Irfan Wahab

was of the view that connectivity is

the backbone of advancing society,

and stressed for steps to improve the

quality of services in the sector.

PTA.

The locally manufactured/assembled

9.72 million mobile phone handsets

included 5.69 million 2G and 4.03

million smartphones.

Further, as per the PTA data, 53 percent

of mobile devices are smartphones

and 47 percent are 2G on the Pakistan

network. However, despite the

increase in the local production of

mobile phones, mobile phones were

worth $ 1.946 billion during the first

eleven months (July-May) of 2021-22

compared to $ 1.860 billion during the

same period of last year.

Pakistan’s No.1 Voice and Data

Network, Ufone 4G has introduced the

industry’s biggest and most affordable

hybrid bundle, ‘Sab Se Bari Offer’ to

provide its customers with the best

user experience possible. Ufone 4G’s

hybrid bundle offers greater usability,

control, and enablement to its users

so that they stay connected for longer

through the company’s superior voice

and data while they engage in activities

related to work, education, or leisure.

31

TRADE CHRONICLE

Telenor Pakistan helps

businesses scale new heights

Telenor Pakistan

partnered with

Daewoo Adda,

Pakistan's fastest

growing trucking

platform and a

Daewoo Group's

affiliated company -

to provide them with

a tailor-made enterprise resource

planning (ERP) solution to manage

and automate a wide range of business

Reiterating their commitment to

accelerate digital inclusion in the

country, Jazz and UNDP Pakistan

organized a ‘Girls in ICT’ event

highlighting the importance of digital

skills for

women and

promoting

D i g i t a l

G e n d e r

Inclusion

through

enhanced

access to ICTs (Information and

Communications Technology).

According to the GSM Association

(GSMA) there exists a significant

digital gender gap in Pakistan where

approximately 38% of women

are less likely than men to own a

smartphone and 49% do not use

mobile internet. Furthermore, there

are drastic differences in levels of

processes.

Jazz and UNDP commit to accelerate

digital inclusion amongst women

Over one million Nokia feature

phones produced in Pakistan

HMD Global, the home of Nokia

phones, has achieved the milestone

of producing over one million locally

assembled mobile phones in Pakistan

in just 6 months after setting up

the assembly unit in the country.

The company partnered with

Techno Pak Electronics (Private)

Limited last year in setting up the

assembly plant of Nokia phones

in Pakistan which has invested

an amount of $2 million in its

factory & related channels in

2021 which generated over 500

skilled jobs so far. Arif Shafique,

The signing ceremony was also

attended by Ghulam Hasnain Nasir

– VP B2B Telenor, Kamran Tariq -

Country General Manager Daewoo

Adda and Wali Mohammad – Head of

Enterprises Solution Telenor.

ICT access between

different population

groups, particularly the

rural and marginalised

women and girls.

Considering this prevailing scenario,

the event included a panel discussion

on ‘How to

enhance

D i g i t a l

Literacy

amongst

school-going

girls?’ with

chief guest

SAPM on Youth Affairs Shaza Fatima

Khawaja, Additional Secretary of

Ministry of IT & Telecommunications

Ayesha Moriani, Director

Communications and Sustainability

at Jazz, Fatima Akhtar, and Founder of

AGAHI and Lecturer at NUST Puruesh

Chaudhary, in participation. Ideas were

exchanged on multi-level solutions

towards ensuring safe and meaningful

access to digital technology and ICTs

for girls.

Country Manager Pakistan HMD

Global, the home of Nokia phones,

said, “Nokia Phones continue to be

a favourite product among different

ages of mobile phone users in Pakistan

for the past many years.

May - Jun - 2022

Askari Bank signs MoU

with Easypaisa

Askari Bank Limited has signed a

Memorandum of Understanding with

Easypaisa with an aim to expand its

digital banking offerings.

Askari bank has always been at the

forefront of providing state of the art

digital solutions to its customers. Our

strategic alliance with Easypaisa is yet

another step forward in this direction.

This partnership will enable us to

provide OTP based cash in & Cash out

services, Biometric services for proof of

life for pension accounts and dormant

account activation.

In-return Askari bank will offer

employee banking solution and

retailer payment collections through

branch banking OTC services, which

will be another major revenue stream

for the bank.

The MOU was signed by Atif Riaz

Bokhari, President & CEO, Askari Bank

and M Mudassar Aqil, President & CEO,

Telenor Microfinance Bank / Easypaisa

in the presence of other senior officials

from both organisations.

The demand for our handsets has been

evident in the local market with the

production of over one million units in

a very short span of time.”

The plant capacity is to produce over

half a million mobile phones per month

and our aim is to assemble the

complete range of Nokia phones

from Pakistan.

HMD Global has made a

significant contribution to the

economy through the transfer

of technology to the local level,

tax revenues to the national kitty,

saving of foreign exchange and

most importantly creating of

more local jobs.

32

TRADE CHRONICLE

May - Jun - 2022

Pakistan Banks’ profitability impacts

15-20% due to propose increased taxation

The government has introduced major

changes in Federal Budget FY23 for the

banking sector, which will significantly

impact the industry’s bottom line.

These changes include 1) an increase

in the corporate tax rate for banks,

2) an additional 2% tax on poverty

alleviation, and 3) an increase in the tax

rate on interest income on government

securities.

As per the Finance Bill, the corporate

tax rate has been increased from 35%

to 45% from the tax year 2023 and

onwards (CY2022 and forward), and

the super tax of 4% has been abolished.

Hence, the tax rate has increased

by 6%, from 39% to 45%, which will

impact earnings from 2022 onwards.

An additional 2% poverty alleviation

tax has been imposed on the banking

sector (banks with earnings of

Rs300mn and above) from the Tax

year 2022 onwards (CY2021 onwards)

as per 7CA of the Seventh Schedule of

Income Tax ordinance. Furthermore,

the tax rate on the interest income

from government securities with banks

NBP signs MoU with PTA

Pakistan

Telecommunication

Authority (PTA) and National Bank of

Pakistan have signed a Memorandum

of Understanding (MoU) for provision

of consumer financing facilities to

PTA employees. The MoU is aimed

as mutually beneficial for both

the organisation and it will further

strengthen NBP’s partnership with

PTA. NBP is capitalizing on its large

corporate relationships by offering

specialized priority services and

awareness sessions for the employees

of large corporates like PTA to meet

their personal banking/financing

needs and banking to employees’

workplace for facilitation and better

customer service.

Faisal Ahmed (SEVP & Group Head

– Consumer Assets Group, NBP) and

Muhammad Abdur Rub Khan (Director

– Payroll & Cash, PTA) along with other

senior executives of NBP and PTA were

having an ADR

of 50% or more

is increased from

35% to 45%.

For banks with ADR of 40-50%, the

rate has risen to 49% from 37.5%; for

banks with ADR of less than 40%, it is

increased to 55%. The Finance Bill also

clarifies that this tax will apply on total

income attributable to real investment

in government securities and not on

additional income.

Implementing the said tax rate

increase on a certain ADR threshold

will apply retrospectively from CY2021

onwards (Tax Year 2022 and forth). It

will likely lead to a higher effective tax

rate of around 53% in 2022 and will

settle down to ~48% in 2023.

Since the SBP amendment Act 2021,

the government has to rely mostly

on commercial bank borrowing to

finance its fiscal needs, resulting in

a rise in secondary market yields on

government securities. We believe

that to limit banks from taking undue

advantage of the given situation;

the government has imposed higher

taxation on banks, especially on the

interest income from government

also present to grace the occasion.

Both organisations will also pave the

way for bringing banking to employees’

workplace for facilitation and better

customer service. The arrangement

will further support access to banking

finance for PTA employees.

NBP is presently offering a wide range

of consumer financing products that

inter alia include “Personal Loans”,

“Financing against Gold”, “House

Loans” and “Auto Loans”. The bank

holds lion’s share in the category of

personal loans and is a prominent

player in the industry for provision of

low-cost housing.

securities.

The above-announced measures will

impact the sector’s profitability by

around 20% for 2022 and 15% for 2023.

Banks will now gradually try to shed

high-cost deposits and look to increase

exposure in advances to minimize the

impact of these measures. Banks may

also contest this huge increase in taxes

from relevant authorities.

After these measures, Topline Banking

Universe earnings are expected to grow

by 10% in 2022 and remain flat in 2023.

We maintain our ‘Overweight’ stance

on the banking sector as it trades at

attractive PE of 4.3x and PBV of 0.6x.

Courtesy - Topline Securities

JS Bank offers to open RDA

accounts via WhatsApp

JS Bank has

become 14th

bank to join

the State Bank

of Pakistan’s

Roshan Digital

A c c o u n t

(RDA) initiative, allowing Non-Resident

Pakistanis (NRPs) to open bank accounts

digitally, a statement said recently.

JS Bank is offering NRPs to open their

accounts via WhatsApp, enabling

unmatched convenience for users. This

is part of a multi-channel platform

approach, which includes JS mobile and

internet banking, the bank said. A launch

ceremony to mark the occasion was

held in Karachi. Governor (Acting) SBP

Murtaza Syed was prominent with his

presence along with founder JS Group

Jahangir Siddiqui, president and CEO

JS Bank Basir Shamsie, and business

community and corporate leaders.

33

TRADE CHRONICLE

Loans on collateral basis: NBP starts

facilitating farmers through ‘EWRF’ system

National Bank of

Pakistan (NBP)

has started

facilitating farmers

through Electronic

Warehouse Receipt

Financing.

The NBP is now facilitating farmers

in acquiring loans through Electronic

Warehouse Receipt Financing (EWRF).

The simple process will allow farmers

to open their accounts, provide

collateral and receive a loan up to 70

NBP launches the Aitemaad Islamic

Banking window, Rawalpindi

The Islamic Banking Window of NBP

Aitemaad at Main Branch, Rawalpindi,

was inaugurated by Mr Gul Bahar Khan,

EVP / General Manager – Islamabad

Cluster and Mr Saquib Haider Loan,

Regional Head, AIBR-FEDC. Ms Zahida

Hameed, Regional Head Rawalpindi,

Ms Mahum Tariq, SVP/Chief Branch

Manager Main Branch Rawalpindi, and

PITB and Faysal Bank sign

MoU to facilitate freelancers

In a special ceremony held at Arfa

Technology Park , Punjab Information

Technology Board (PITB) and Faysal

Bank Limited (FBL) signed an MoU to

facilitate freelancers across Pakistan.

The MoU was signed by PITB DG

e-Governance Sajid Latif and FBL

Head CIBG Ali Waqar on behalf of their

respective organizations.

Senior officials from both organizations

including PITB’s JD Freelancing Wing

Pak-Qatar Family Takaful (PQFTL)

signed MOU with WAADA

Pak-Qatar Family Takaful Limited

(PQFTL) came into an MOU with

WAADA, to promote Takaful products

through the digital medium. WAADA

and PQFTL aim to make Takaful

products, affordable, and accessible

for the major part of the population

currently not being served.

Mr. Azeem Iqbal Pirani (CEO, PQFTL),

Mr. Ishaq Kothawala (CEO, WAADA)

and Mr. Zeeshan Haider (Head of

Alternate distribution & Banca Takaful),

signed the MOU along with senior

percent of the

collateral’s

price.

EWRF system aims to make farmers’

journey easy and profitable from crop

cultivation to sale. The loan facility

can be obtained for a period of up to

6 months by securing an electronic

warehouse receipt as collateral.

To open an account in the electronic

warehouse receipt the farmers can

contact the warehouse operator

of Naymat Collateral Company

Management with their CNIC and

photo.

Mr Muhammad

Farhan, Project

Coordinator

IBW AIBR-FEDC

Islamabad.

The launch of Islamic Banking

windows will allow NBP to

serve its customers with tailormade

financial solutions while

growing its overall position as

the leading Islamic Banking

player in the industry.

Ahmed Islam, State Bank of Pakistan’s

Senior Officer Ali Atta, and Payoneer’s

Country Manager Mohsin Muzaffar

and Partnerships Manager Affaf Noor

were also present.

According to the MoU, PITB and

Faysal Bank would collaborate to

support endeavors and activities of

mutual interest for the facilitation of

freelancers by offering them a “Digital

Freelancer Account”.

In particular, FBL would provide

the Digital Freelancer Account to

officials

of both

companies.

On the occasion, Mr.

Azeem Iqbal Pirani

(CEO, PQFTL) said

“We are delighted

to sign MOU with

WAADA as this will benefit customers

from choosing Shariah-compliant

Takaful products with ease and

upon competitive rates. The world is

moving towards digital medium and

partnership with WAADA will further

enhance our reach and help us spread

awareness about Takaful products.”

May - Jun - 2022

After account opening, farmers can

store their products in the relevant

warehouse, where after confirming the

quality and quantity, the warehouse

receipt will be issued. Farmers can

use this receipt to obtain the loan

from the bank where required support

will be extended to complete the

documentation process to avail loan

facility as per needs.

EWRF also facilitate the applicant to

pay back the dues when the farmers

have a fair price for crops, thus giving

them the advantage to have a return on

their harvest after paying warehouse

rent and Naymat collateral fee.

existing and to-be PITB graduates

as well as sponsor different events

organized by PITB related to digital

technology, youth empowerment,

and freelancing ecosystem. Besides

many other benefits, FBL would also

give laptops to the top performer and

mobile phones to the second and third

top performers of each batch as an

appreciation of emerging freelancers.

Furthermore, FBL would market and

give partner privilege to PITB owing

to the organization’s large freelancers’

base across Pakistan (alumni and

trainees).

Ishaq Kothawala (CEO, WAADA) said,

“Waada aims to make insurance and

Takaful a simple product, affordable

and accessible for the major part of the

population currently not being served.”

He further said that he is quite hopeful

that this new strategic partnership will

bring fruitful results in near future.

34

TRADE CHRONICLE

Pak-Qatar Takaful Group achieved turnover PKR 11bn

Pak-Qatar Takaful Group, which

comprises of Pak-Qatar Family Takaful

Limited and Pak-Qatar General Takaful

Limited, reviewed and approved

the financial statements of both

the Companies for the year ended

December 31, 2021 during the Board

meeting recently. Pak-Qatar Takaful is

Pakistan’s Pioneer and largest Takaful

Group operating for more than a

decade with the largest Takaful branch

network nationwide.

Pak-Qatar Takaful Group achieved

an aggregate turnover of around PKR

11 Billion. The Group Shareholders

HBL partners with PAFLA to enable

Pakistan’s freelance industry

HBL has entered into a strategic

alliance with Pakistan Freelancers

Association (PAFLA), a non-profit

organization founded to empower

Pakistani freelancers. The partnership

will enable the freelancing individuals

and start-ups to become part of the

Banking segment through HBL’s

Freelancer Digital Current Account &

Solutions.

The agreement was signed by Abrar

Ahmed Mir, Chief Innovation &

Financial Inclusion Officer – HBL

and Kazi Rahat Ali, Secretary General

– PAFLA. Muhammad Aurangzeb,

President & CEO – HBL and other

senior leaders from both organizations

were also present at the ceremony.

Fund posted a net consolidated profit

after tax of PKR 207.5 Million; while,

Participant Takaful Fund generated the

net consolidated surplus of PKR 54.8

Million for the year 2021.

Profit before tax of

Pak-Qatar Family

Takaful Limited

(PQFTL) increased

to PKR 225 Million

as compared to PKR

208 Million last year, a growth of 8%

despite all challenges (economic and

political) and the global pandemic

caused by COVID-19. The company

minimum

balance

constraints (Freelance

digital account). This

collaboration will enable

freelancers and start-ups to enjoy a

seamless banking experience and will

also bring them into the fold of the

formal economy of the country.

Speaking at the occasion, Abrar Mir,

Chief Innovation & Financial Inclusion

Officer – HBL, said, “HBL is delighted

to be entering into this partnership

with PAFLA to facilitate freelancers

May - Jun - 2022

has increased its balance sheet footing

through impressive growth in its

investments and financing portfolio.

Pak-Qatar General Takaful Limited

(PQGTL) posted the profit before tax of

PKR 46 Million as compared to PKR17

Million last year, a growth of 170%.

Earnings per share (EPS) of Pak-Qatar

Family Takaful Limited was recorded at

PKR 1.34 while PKR 0.64 for Pak-Qatar

General Takaful Limited.

The Board appreciated the

management for their efforts despite

Pandemic on the impressive results of

the Group.

and start-ups to grow their businesses

by using HBL’s digital network.”

Ibrahim Amin, Co-Founder – PAFLA

also lauded HBL’s efforts for this

initiative and said, “We are pleased

to see innovative solutions being

launched by HBL that offer a myriad of

benefits to Freelancers in Pakistan, in

addition to driving digital payments.

Further, the collaboration would help

grow inward remittances and provide a

platform to boost the thriving start-up

ecosystem.”

HBL is committed to encourage

freelancers and start-ups by offering

them online- accounts with no

Meezan Bank attracts

$1bn in RDAs

The acting Governor State Bank of

Pakistan (SBP) Dr Murtaza Syed

recently visited Meezan Bank’s Head

Office in Karachi along with the Deputy

Governor Sima Kamil and the bank’s

senior management. The Governor

inaugurated the Digital Centre, built

purposefully for catering to the needs

of Roshan Digital Accounts (RDA)

customers.

Chairman Meezan Bank’s Board

Riyadh S A A Edrees, Meezan Bank’s

Founding President and CEO Irfan

Siddiqui and the bank’s senior officials

were also present on the occasion.

Irfan Siddiqui thanked the

State Bank for their support

in the RDA initiative and their

patronage in inaugurating

Meezan Roshan Digital

Centre and said that Meezan

Bank has always been fully

committed to supporting

this important initiative.

35

Meezan Bank, Pakistan's leading

Islamic bank, attained Payment Card

Industry Data Security Standard

certification (PCI DSS v3.2.1) by

Payment Card Industry Security

Council (PCI SSC) through PCI QSA

Firm - Risk Associates, a premier global

information technology company.

TRADE CHRONICLE

BankIslami records 34pc

growth in PAT for 1Q22

BankIslami recorded some 34 percent

growth in Profit After Tax for the first

quarter of this year (1Q22).

Underpinned by growth in customer

base, increase in income levels and

improvements in cost efficiency;

BankIslami’s underlying operating

profit before provisioning for 1Q22

registered an increase by 95.8% i.e.

increase from Rs684m recorded during

1Q21 to Rs1,339m during 1Q22.

With respect to its balance sheet,

BankIslami had a robust start to the

year 2022 wherein it continued its

UBL launches “UBL Datathon”

with Habib University

The UBL in collaboration with

Habib University launched the

“UBL Datathon”, the first of its kind

initiative in the Banking industry. The

Datathon used UBL’s market leading

digital capabilities, combined with

the academic excellence of Habib

University to provide a platform to

the best and brightest technology

enthusiasts of Pakistan.

The participants competed to provide

technology-based solutions to real

life challenges faced by the financial

Faysal Bank introduces hotel booking

services in partnership with Ascendant

Faysal Bank Limited, in partnership

with Pakistan’s largest hospitality

technology company - Ascendant, has

launched a hotel booking platform

for its customers that enables

them to conveniently book hotels

online through their website: www.

faysalbank.com.

The website offers 1600+ hotels

and guest houses in 50 cities across

Pakistan. This initiative by Faysal

Islami, a leading Islamic Bank of

strategy to improve its deposit mix

and deployment of liquidity towards

profitable Shariah compliant avenues.

Consequently, Bank’s Current Account

composition improved from 39.0% in

Dec’21 to 40.4% in Mar’22. Likewise,

the Bank diverted its asset mix

towards better yielding corporate and

consumer segments which was in line

with increase in domestic demand.

As a result, the net Islamic Financing

of the Bank grew by 8.2%, whereas a

decline of 23.9% was witnessed in its

treasury placements.

Owing to growth in credit book and

persistent recovery efforts against

delinquent exposures, infection ratio

services industry. Several innovative

business ideas and solutions driven

by Data Analytics and Artificial

Intelligence were submitted by

the participants. These were judged

by global thought leaders including

Amazon Web Services, Microsoft, DBS,

Kaggle, Maybank and Commonwealth

Pakistan and winner

of Best Islamic bank

for Transformation

and innovation at

the Global Islamic Finance Awards

(GIFA), marks an integral step towards

the promotion of domestic tourism.

In addition, the bank also plans to

introduce international hotels to this

service to facilitate customers who

wish to travel abroad.

Speaking on the occasion at the launch

ceremony, Aneeq Malik, Group Head

Consumer Finance and Payment

Services Faysal Bank said: “We always

aim to bring the best banking services

to our customers at their fingertips.

CEO of Ascendant, Andre Privateer

said: As the only hospitality tech

provider able to offer real time rates

and availability at more than 80% of

Pakistan’s hotels, we serve the tourism

sector by making the online booking

experience better for the consumer.

reduced from 8.7% in

Dec’21 to 8.1% in Mar’22

with an improved

coverage ratio (including

general provision) of

91.4% in Mar’22 versus

89.6% in Dec’21.

May - Jun - 2022

To improve overall credit risk

profile, the Bank booked additional

provisioning against its existing and

potential delinquencies during the

1Q22. Despite recording additional

provisioning, the Bank posted Profit

After Tax amounted to Rs522m for

the quarter ended March 31, 2022,

depicting a growth of 33.9% from PAT

of Rs390m posted during same period

last year.

Bank.

Shazad G Dada, President & CEO UBL

in his keynote address presented on

the global and domestic trends that are

shaping the financial services industry

and how banks must transform into

Data Driven Organizations.

MMBL: Best Retail Bank

Mobilink Microfinance Bank Limited

(MMBL), Pakistan’s largest digital

bank, has been recognized for its

services in offering innovative digital

financial solutions at the 13th Annual

Retail Banker International (RBI), Asia

Trailblazer Awards 2022.

MMBL won the prestigious title of

'Best Retail Bank in Pakistan' along

with an honorable mention of 'Highly

Commended’ for Excellence in Client

Onboarding through its premium

digital financial services application -

MMBL DOST.

36

TRADE CHRONICLE

May - Jun - 2022

Pakistan Autos May numbers

released, a sharp 46% yoy

In May 2022, automobile industry

sales rose by a sharp 46% yoy (flattish

mom) to c 23,000 units. The Economy

segment continues to drive the robust

yoy growth in industry sales. Thus,

11MFY22 sales clocked in at c 250,000

units (up a strong 50% yoy). Despite

normalized working hours in May

(following Eid festivities during the

first week), volumes remained flattish,

likely due to supply chain issues.

Among INDU models, combined

volumes of the Premium segment cars

(Fortuner and Revo), increased by c

50% yoy, while combined Corolla &

Yaris volumes increased by a relatively

softer 18% yoy. The shift in production

towards the Premium segment (earlier

had been delayed), is likely to have

resulted in the increase in Premium

segment, experts view.

PSMC sales clocked in at a c 12,250

units, up a sharp 47% yoy, led by

handsome growth in Alto and Wagon R

volumes. The recently launched Swift

continued to rake up decent volumes

of c 1,750 units. We believe Swift sales

are likely to support margins of the

company in the coming quarter.

Gauss Auto to establish

EV plant in Karachi

Gauss Auto has announced to establish

an Electric Vehicle (EV) plant in

Pakistan’s Special Economic Zone.

The plan is to enter into a joint venture

(JV) with AKD Group Holdings (Pvt)

Limited and set up the plant near Port

Qasim, Karachi on around 1,000 acres

of land.

HCAR sold 2,910 units in May (below

the 3,000 units level for the fifth

time since July 2021), up 45% yoy,

led by combined Civic & City sales of

2,681 units, on account of rolling out of

both the new City and new Civic. On a

mom basis, overall volumes increased

by 11%.

Tractor sales rose by 17% yoy at 4,906

units. Volumes of AGTL increased by a

sharp 85% yoy to c 2,400 units (down

8% mom), while that of MTL decreased

by 14% yoy (up 12% mom). The decline

in MTL sales is likely due to reduced

exports, in our view. We expect tractor

sales to continue the uptrend in the

coming months amid elevated farmer

income and abolishment of GST in the

recently announced budget, experts

view.

Auto sales continued the handsome

yoy growth in May, despite measures

taken by both the government and SBP

to moderate growth in auto sales, as

the OEMs are likely delivering orders

booked at least 3-4mths prior.

Going forward, industry growth is

likely to retract in 2HCY22 due to (i)

measures aimed at reducing autofinancing

(including higher interest

rates), (ii) recent increase in prices,

(iii) longer delivery lead times on

account of supply-chain issues (parts

and container issues), and (iv) increase

in advance tax and possible austerity

measures to reduce government

expenditures on car purchasing.

Lockdowns in China due to Covid and

the ongoing Russia-Ukraine conflict

are likely to exacerbate supply chain

constraints.

Courtesy – Intermarket Securities Limited

Gauss Auto is an enterprise focusing

on the innovation and development

of automobiles and the integration

of resources. It is registered in Silicon

Valley, California, and operates in

Shanghai, China.

A delegation led by Chen Feng, CEO

Gauss Auto Group and CEO AKD

Group Holding, Nasir Rizwan visited

the BoI recently and held a detailed

Pakistan Auto Sector Update

According to latest development, State

bank of Pakistan (SBP) has tightened

consumer lending rules to trim loan

growth in auto sector.

Under new regulations, the maximum

tenure of auto finance has been

reduced from five years to three years

for cars above +1000cc while maximum

tenure of auto finance for cars upto

1000cc has been reduced from seven

years to five years. These changes in

regulations are applicable to both

imported vehicles and manufactured/

assembled vehicles.

According to a research house, 30-

40% of the cars sold are purchased

on consumer financing. Further,

company wise this varies; 40-50% of

PSMC sales are on financing, ~30% for

INDU and ~30-40% for HCAR (before

rate hike this was ~40-50%)

To note, previously

SBP has imposed

restriction of overall

auto financing

limits availed by

one person will not

exceed Rs3mn at any point in time.

This has allowed PSMC to gain higher

share in the auto financing because

they deal in the small car segment.

Despite the rising trend in KIBOR

and tightening of auto-financing, we

expect local car sales to remain strong

because of pent-up demand as evident

from car delivery period. Currently

delivery period of PSMC is 3-7 months,

INDU 3-6 months and HCAR 3-11

months which are expected to keep

yearly volume assumptions intact.

meeting with Federal Minister BoI

Chaudhry Salik Hussain and Secretary

BoI Fareena Mazhar.

37

TRADE CHRONICLE

Indus Motor stamps a landmark

1 million vehicles production

Indus Motor Company (IMC) had

announced a landmark achievement of

having produced one million vehicles

in may since it began mass production

back in 1993.

The one millionth unit, a Toyota Corolla

Grande, was lined off at the company’s

plant at Karachi, amidst much fanfare.

The celebration was attended by over

4,000 employees and representatives

from Toyota, which included Yoshiki

Konishi, current Executive Advisor

& President-elect, Toyota Daihatsu

Engineering & Manufacturing, (TDEM)

from June 2022.

Since commencement of commercial

production, the company has to date,

Country’s first EV charging

station opened in Karachi

Pakistan’s first ultra-rapid DC charging

station for electric vehicles has been

inaugurated in Karachi. The Audi,

in collaboration with SIEMENS has

unveiled Pakistan’s first and only Ultra-

Rapid DC charging station equipped

with Siemens SICHARGE D series

chargers with power up to 160kW in

Karachi.

Speaking as the chief guest on the

occasion, Administrator Karachi

Barrister Murtaza Wahab said, “I am

happy to have inaugurated along with

the German Ambassador, Pakistan’s

first ultra-rapid EV charging station in

Karachi.”

“I am particularly pleased to be

present today at the inauguration of

this example of brand new German

innovation. The future is electric - we

are learning that more and more today

in times of climate change and global

warming. However, electro-based

mobility also requires a corresponding

infrastructure. I am pleased that

another step in this direction is being

cumulatively produced

761,700 Corolla, 45,400 Yaris,

111,900 Hilux and Fortuner,

under the Toyota badge whilst

81,000 Cuore with the Daihatsu badge.

Expressing himself, the company’s

Chairman, Mohamedali R Habib said,

“Toyota & Japan have remained the

most committed partners for Pakistan

and very recently, we celebrated the

70th anniversary of the establishment

of the country’s diplomatic relations

with Japan.

We value our relationship and send

our warmest wishes to the people of

Japan. The level of localization we

have achieved would not have been

possible without the constant support

and endeavors of our partners.

taken here today.” said

Germany’s Ambassador

to Pakistan Hon Bernhard

Schlagheck.

CEO of Premier Systems

Syed Arshad Raza said,

“As announced, 2020

marked the start of

Audi in Pakistan’s major

electric offensive. We

successfully launched

the e-Tron model range

and are already following

that up with the next

model, the dynamic and fascinating

e-Tron GT. We can proudly say that

Audi is the number #1 brand of any car

manufacturer in Pakistan leading this

transformation. Audi is also making an

important contribution to the urgently

needed expansion of the charging

infrastructure, and the LIBRA Charging

Hub is the first step in achieving this

goal.”

Commenting on the launch of LIBRA

Charging Hub, CEO of Siemens

Pakistan Markus Strohmeier said

"We need significantly more charging

points in Pakistan to cater to the

growing requirements of electric

May - Jun - 2022

PSMC expects decline

in sale in FY23

Pak Suzuki Motor Company (PSMC)

conducted its 1Q2022 analyst briefing

recently where the management

discussed financial results of the

company and its future outlook.

Company expect 5-10% decline in

volumetric sales in FY23 amid higher

car prices, increase in interest rates and

reduction in consumer finance tenure.

To highlight, PSMC’s 35% of total sales

are from consumer financing.

Out of the total sales of the company,

around 40% of the sales is in rural areas

whereas the remaining 60% of the sales

is in urban areas.

Gross margins of the

company declined in

1Q2022 to 2.8% from

3.6% in 4Q2021 on the back of currency

devaluation, higher inflation and

shortages of shipping containers that

led to an increase in freight costs as

company still uses air freight. However,

it is anticipated that this impact will

reduce in the upcoming months.

vehicles. For that reason, stakeholders

including policymakers, investors, and

power utilities must continue their

efforts in the coming years."

Needless to mention, the country has

now National Electric Vehicles Policy,

with targets and incentives aimed at

seeing electric vehicles capture 30

percent of all the passenger vehicle

and heavy-duty truck sales by 2030

and 90 percent by 2040. It sets even

more ambitious goals for two- and

three-wheelers and buses; 50 percent

of new sales by 2030 and 90 percent by

2040. The world is now moving toward

electric vehicles and Pakistan would

follow suit.

38

TRADE CHRONICLE

May - Jun - 2022

PIA reports operating

profit of Rs 2.5 billion

The Pakistan International Airlines

(PIA) has reported an operating profit

of Rs 2.5 billion. The annual report was

presented by the Acting CEO of PIA

Amir Hayat to the PIA shareholders

in the sixth annual meeting of PIA

Corporation Limited held in Karachi.

According to the details, the airlines

revenue has decreased in 2021 as

compared to 2020 due

to the closure of 60

percent of PIA routes.

However, as soon

as the routes were

restored in the last

quarter, PIA’s revenue

has also increased,

showing an operating profit of Rs 2.5

billion. The reasons for the decline in

revenue were a significant reduction in

air connectivity, travel restrictions, and

the global financial crisis.

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with a full calendar of entertainment,

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In 2021, the PIA has also operated

charter flights and cargo flights but was

still deprived of the revenue, obtained

from its important Umrah and Hajj

operations due to the Covid-19

restrictions.

He further said the PIA had not only

introduced several new routes in the

last 12 months but also increased the

frequency of flights and added that

the airline is gradually expanding

its fleet as one more

A320 aircraft has been

inducted while three

more aircraft will be

added to the fleet in

the coming weeks.

He said that after a

comprehensive reform

plan implemented

in PIA last year, the airline has also

drafted a five-year business plan with

the assistance of IATA consultants and

submitted it to the government for

approval.

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Louvre Abu Dhabi: Immerse

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attractions.

Hashoo Hotels & Resorts

to launch ‘PC Legacy’

in Lahore

Located in the bustling city of Lahore,

it will be the third hotel by Hashoo

Hotels in its recently introduced brand

of hotels by the name of PC Legacy,

following PC Legacy Nasirabad.

The brand “PC Legacy” is a new chain

of four-star hotels by Hashoo Hotels

who already own and operate Pearl-

Continental, Marriott and Hotel One

across the country. PC Legacy-Airport

Lahore will bridge the gap for travellers

between the five-star and the select

service hotels.

In this connection, an agreement

was signed by Murtaza Hashwani,

Deputy Chairman and Chief Executive

Officer of Hashoo Group, and

Muhammad Ayub Sheikh, Chairman

of Royal Residencia (Pvt) Ltd and Royal

Hospitality.

SriLankan Airlines loses

Rs170bn in 2021

State-run SriLankan Airlines had lost

170 billion rupees in 2021 and its

accumulated losses had risen to 542

billion rupees, a Finance Ministry

report said despite the national career

improving its performance in the last

quarter. SriLankan Airline’s revenue

fell to 71 billion rupees in 2020 in the

Coronavirus pandemic triggering a 45

billion rupee loss.

In 2021 revenues grew to 134.6 billion

rupees as foreign travel was gradually

relaxed. But the airline had been hit

by high finance costs and currency

depreciation as the island’s softpegged

central bank triggered the

worst currency crises in its history.

39

TRADE CHRONICLE

Gerry’s dnata recognised for high

safety standards in Pakistan

Gerry’s dnata, Pakistan’s leading

ground services provider, continues

to be recognised for achieving

the highest safety standards. The

company obtained IATA Safety Audit

for Ground Operations (ISAGO)

Station Accreditation at Islamabad

International Airport (ISB), following

the successful completion of a

comprehensive audit of its ground

handling operations at the airport.

Syed Haris Raza, Vice President of

Gerry’s dnata, said: “Safety continues

to be at the heart of everything we

do. The achievement of the ISAGO

accreditation demonstrates our team’s

commitment and ability to consistently

deliver excellence in safety. I thank my

colleagues for their hard work and

dedication.”

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Cup Qatar 2022 package thanks to

Visa and Qatar Airways. The package

includes match tickets along with 3-4

nights of hotel accommodation in

Qatar. Some of the packages offered

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plans for this summer, the promotion

also gives Visa card holders up to 12%

discount for flight tickets booked from

Iraq, Jordan, Kuwait, Oman, UAE and

Pakistan.

The offer will be valid for online bookings

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and travel starting within the campaign

In recent years,

Gerry’s dnata

has significantly

enhanced its

operations and services

to deliver the highest level

of quality and safety and

help airline customers

safely transport passengers

and precious cargo to and

from Pakistan. It made

significant investments in

infrastructure, technology

and equipment, including

the opening of a new, stateof-the-art

cargo facility in Lahore

which doubled the company’s cargo

handling capacity at the airport.

period. The

promotion

will be

offered for all

Qatar Airways-operated

destinations subject to

certain exclusions.

Qatar Airways VP Sales

– Middle East, Levant,

Caucasus and Pakistan, Mr.

Dersenish Aresandiran, said:

“The FIFA World Cup coming

to Qatar this year is a major

draw for passengers from all

over the World. As the World’s

Best Airline, we are delighted to be able

to work with Visa to offer passengers

the opportunity to join us here in Qatar

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Madhur Mehra, Visa’s Head of

Merchant Sales and Acquiring for

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passengers when they use their Visa

card to book their travel.

Qatar Airways is providing incredible

travel options during Summer 2022

with flights operating daily from

the World’s Best Airport, Hamad

International, to its global network

with a huge number of leisure choices.

Whether passengers are seeking

summer vacations including tranquil

beach gateways, energetic city breaks,

bold adventure destinations or

May - Jun - 2022

In addition, Gerry’s dnata obtained

Maintenance Organization Approval

from the Pakistan Civil Aviation

Authority to provide aircraft line

maintenance services to airline

customers, and now offers a one-stopshop

of ground handling, cargo and

technical services at the airports of

Karachi, Lahore, and Islamabad.

Gerry’s dnata serves more than 20

airline customers at seven Pakistani

airports. The company’s team consists

of over 2,500 dedicated aviation

professionals who assist more than

seven million passengers and handle

150,000 tons of cargo annually.

incredible family and friend escapes,

there is something for everyone.

A multiple award-winning airline,

Qatar Airways was named ‘World’s

Best Airline’ in the latest World Airline

Awards, managed by the international

air transport rating organisation

Skytrax. The airline’s hub, HIA, was

recently recognised as the ‘Best Airport

in the World 2021’, ranking at number

one in the Skytrax World Airport

Awards 2021.

In addition to this, Qatar Airways

has become the first global airline in

the world to achieve the prestigious

5-Star COVID-19 Airline Safety Rating

by Skytrax. This follows the success of

Hamad International Airport (HIA) as

the first airport in the Middle East and

Asia to be awarded a Skytrax 5-Star

COVID-19 Airport Safety Rating.

40

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