PM’s relief package laudable but allocation insufficient, says Zahid Hussain
President Pakistan Businessmen and Intellectuals Forum (PBIF), President All Karachi Industrial Alliance (AKIA), Senior Vice Chairman of the Businessmen Panel of FPCCI and former provincial minister, Mian Zahid Hussain on Friday lauded the relief package for poor but dubbed allocation of Rs15 billion as insufficient.
The funds allocated for the purpose are inadequate as per capita expenditure after deducting administrative and other expenses and losses will be around Rs100, he said.
Talking to the business community, the veteran business leader the project needs more funds and added clarity to make it a success.
The former minister noted that the IMF has demanded additional revenue collection of Rs200 billion for which government will have to consider a new mini-budget, enhanced sales tax on various items, jacking up tariff of electricity and gas and sale of assets.
However, he said that privatization proceeds cannot be shown as revenue under the law.
Mian Zahid Hussain said that FBR has started considering increasing sales tax to 17 percent on a number of items attracting sales tax at a rate of 7, 10 and 15 percent.
Some of the items include oilseeds, cotton, plant and machinery, dairy products, used clothes and shoes, tractors, poultry machines and LNG imported for CNG stations.
He said that it is not only inflation but all the important indicators of the economy are disturbing. The growth rate is 2.2 percent, a 10 year low, public debt has increased by 40 percent in a year and a half, import compression and 13.25 percent interest rate has discouraged investment, while frequent revision in electricity and gas prices have become a disincentive for producers and exporters.
Exchange rate liberalisation has added to inflation and public debt while it failed to boost exports. The infamous circular debt is mounting despite claims by the government to reduce it, exports are stagnant for the last five years while masses are running out of patience.
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Pakistan cables opens NOWPDP’s the inclusion academy
In an effort to provide equal learning and development opportunities for children with disabilities, Pakistan Cables, as part of its corporate social responsibility (CSR) program marked the inauguration of NOWPDP’s The Inclusion Academy in Karachi. The Inclusion Academy is a school-project that aims to target children with disabilities that hail from the under privileged segment of the society.
During the inauguration ceremony, NOWPDP’s President Mr .Amin Hashwani acknowledged the commitment of all contributing stakeholders and expressed appreciation towards the growing support for creating opportunities for the persons with disabilities.
“I am hopeful that our joint efforts with the NOWPDP will empower persons of disabilities and at the same time contribute to improving a sense of ownership for the marginalized segments of our society”, commented Fahd Chinoy, Chief Executive Pakistan Cables Limited.
The Inclusion Academy is first such project targeting children with disabilities launched by NOWPDP, an NGO that has been offering skill based programs for persons with disabilities in Pakistan by partnering with various other NGOs.
Earlier in 2019, Pakistan Cables signed a MoU with NOWPDP committing to contribute towards the establishment of the Inclusion Academy and lending awareness to the cause of empowering persons with disabilities.
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Agreement for expansion of engro elengy terminal at Port Qasim
During a speech at the Pakistan Energy Reform conference in Islamabad the CEO of Engro Elengy Terminal Ltd (EETL) Jahangir Piracha announced the signature of heads of agreement (HOA) with Excelerate and with Shell for the expansion of the Elengy Terminal in Port Qasim.
The EETL terminal is a joint venture between Engro Corporation and Royal Vopak of the Netherlands. It is Pakistan’s first floating LNG import terminal, which began operations in March 2015 and is recognized as the most utilized FSRU worldwide. It currently fulfils as much as 15 percent of Pakistan’s daily natural gas requirements. EETL has handled over 280 LNG cargoes to date.
The current FSRU will be replaced by a new build vessel before the winters of 2020, increasing EETL’s send-out capability by over 150 mmscfd.
The HOA signed gives Shell access rights to the added capacity and enables Shell to bring in LNG imports from its global portfolio of competitive and reliable supply to help meet Pakistan’s growing demand for natural gas.
Speaking at the conference, Marcus Hector, General Manager of LNG Market Development Shell, said “We believe that the supply of natural gas, the cleanest-burning fossil fuel, can help meet Pakistan’s growing energy needs. With this agreement, we are excited to be able to bring more reliable LNG into the country from our leading global supply portfolio and look forward to continued support from the government, regulator and pipeline company to enable us to do so.”
Natural gas has a vital role to play in providing flexible, secure and cleaner energy and LNG is a quick and flexible solution to enable countries with declining domestic gas production to meet their energy needs. Today, Pakistan is amongst the fastest growing LNG importers globally, with last year’s imports increasing by over 14% to help overcome energy shortages.
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Lecture on ‘the strategic importance of economic diplomacy for Pakistan by Makhdoom Shah Mahmood Qureshi held
The Institute of Business Administration (IBA), Karachi organized a distinguished lecture on The strategic importance of Economic Diplomacy for Pakistan in the 21st century by Honourable Foreign Minister of Pakistan, Makhdoom Shah Mahmood Qureshi, at the IBA Main Campus. Attendees included members from the academia, media, consul generals, corporate sector, the IBA faculty, students and alumni.
Director Alumni Corporate Relations and Communications Department (ACRC) Malahat Awan invited Mr. Qureshi and Associate Deans IBA Dr. Sayeed Ghani and Dr. Huma Baqai to the stage. Following this, Dr. Baqai introduced the Foreign Minister to the audience and invited him to deliver his lecture.
Mr. Qureshi commenced his lecture by thanking the IBA for inviting him and applauded the Institute for its continuous strive for excellence. He then described how the 21st century is different from the old times. He said “Borders have become fluid. Communication is instantaneous and free flowing. There are a multiplicity of actors and interests within the State, interacting constantly with actors and interests outside of it.” Emphasizing the importance of economic diplomacy, he said in one word it is ‘opportunity’.
He also discussed about the economic challenges of the current account deficit and falling exports that Pakistan’s economy is facing. He said that his office has made a conscious determination to place Economic Diplomacy in front and center of Pakistan’s diplomatic agenda. According to him, the foreign ministry has made concerted efforts to reorient diplomatic efforts towards addressing national needs. During the lecture, he mentioned that Pakistan secured over US$10 billion to overcome balance of payments crisis, and secure oil supplies on deferred payment basis.
He also mentioned that Pakistan will no longer fight wars for other countries and will maintain its stance for peace which is why even to India’s aggression, Pakistan reacted with responsibility and restraint, but also resolve. While talking about the future, he said that Pakistan must climb up the global value chains by upgrading technology, leveraging young talent, and by capitalizing on the export related opportunities that CPEC will create.
Following the lecture, a Q&A session between Mr. Qureshi and the audience ensued. Concluding the event, Dr. Ghani thanked the distinguished guest for his time and presented a memento to Mr. Qureshi as a token of thanks.
About the speaker: Makhdoom Shah Mahmood Qureshi has twice served as Minister for Foreign Affairs; from 2008-2011 and currently, since August 2018. A seasoned politician, Foreign Minister Qureshi has engaged at every echelon of politics and governance. He is also presently Vice Chairman of Pakistan Tehreek-e-Insaf and an avid agriculturalist. Foreign Minister Qureshi has also served as the Minister of State for Parliamentary Affairs in the Federal Cabinet from 1993 to 1996. He is an alumnus of Aitchison College, in Lahore, and a Cambridge University graduate, where he studied Law and History from Corpus Christi College for a Master’s degree.
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Mian Zahid welcomes strategic trade policy framework 2020-25
President Pakistan Businessmen and Intellectuals Forum (PBIF), President All Karachi Industrial Alliance (AKIA), Senior Vice Chairman of the Businessmen Panel of FPCCI and former provincial minister, Mian Zahid Hussain on Wednesday welcomed the Strategic Trade Policy Framework 2020-25 aimed at bolstering IT and engineering exports.
The private sector should be taken on board for input so that this policy succeeds which will reduce dependence on textile exports, he said.
Mian Zahid Hussain said that the new policy should not be left at the mercy of bureaucracy otherwise, it will remain unfruitful like other export promotion policies announced in the past.
Talking to the business community, the veteran business leader said that the country needs effective and implementable policies which are not confined to public relations exercise and clapping by the business community.
The former minister noted that if the policy was designed according to the ground realities it will have different fate from the trade, industrial and agricultural policies. He recalled that few years back policy was announced to boost exports to 35 billion dollars but later the government termed in impractical.
The competing nations like China, India, Bangladesh, Vietnam and Thailand etc. don’t waste time in tall claims and flowery speeches which have increased their exports but situation at home if otherwise, he said.
The veteran business leader said that destruction of cotton crop has put an additional burden of five billion dollars on the textile industry which is to increase the cost of doing business and reduce exports.
He said that policymakers seem very interested in signing trade deals with other countries while production continues to fall at home which will leave such trade deals useless.
Weak agriculture and industrial policies and tax measures will make success of Strategic Trade Policy Framework 2020-25 a bit difficult, he said.
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Effie awards 2020: second jury round concludes in Karachi
The final jury round for Effie Awards Pakistan was held recently in Karachi. The annual program organized by Pakistan Advertisers Society (PAS) honors marketing ideas which demonstrate exceptional creativity and ‘reward ideas that work’. Effie Awards are regarded as one of the most prestigious accolades in the advertising industry across the world.
This year’s competition, the second one to be held under the Effie Pakistan banner, was initiated in September 2019. The first jury round was held on 17th and 18th January where 214 entries were scored by a 76 member jury. At the final round 56 individuals including veterans and experienced professionals from a wide range of industries came together to evaluate 87 shortlisted entries. The jury sessions were sponsored by Kantar Pakistan.
Addressing the jurors, Tariq Ikram, Jury Chair for Effie Awards 2020 and one of the founding members of PAS appreciated the commitment and zeal shown by all members of the respected fraternity.
Brands from a diverse range of industries submitted their best marketing campaigns to compete against one another for the coveted prize. Each of the entries is evaluated based on 4 key areas, i.e. challenge and objectives, insights and strategic idea, creative execution, and results. The jury members score written briefs along with visual reels to determine a collective score for each campaign.
The awards show will be held on 11th April 2020 where the winners of Gold, Silver and Bronze categories in the 2nd Effie Awards Pakistan will be honored at a ceremony attended by journalists, senior executives of major organizations, media agencies and other respected professionals from their respective industries. Effie Pakistan finalists and winners will also have the opportunity to feature on the Global Effie Index which is one of the most comprehensive global ranking of marketing effectiveness.
Effie Pakistan is part of a global award program which includes 50 national, 4 regional and 1 global award program. It aims to highlight the most innovative and breakthrough practitioners of marketing effectiveness and is a symbol of achievement that is widely respected worldwide.
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Finca microfinance bank targets new untapped customer segments for its karobari karza products portfolio!
With a continuous commitment to enabling people to nurture their futures and support their resolves, FINCA Microfinance Bank Pakistan launches a nationwide campaign to attract new targeted borrower segments for its small and medium business loans [Karobari Karza products] portfolio.
The campaign will target three broad untapped categories of potential customers namely; Mobile Shop Owners, Auto spare parts Shop Owner and Shoe makers for FINCA’s small and medium businesses loans.
For the aforesaid campaign, FINCA, in addition to ATL/BTL marketing activities such as on ground activations will also be launching a digital campaign sharing success stories of some of its customer belonging to the mentioned target segments that have benefitted and uplifted their lives using FINCA’s loan products.
Farid Ahmed Khan, Acting CEO FINCA Microfinance Bank said “FINCA is striving to provide unparalleled services to all segments of Pakistan’s society. FINCA Karobari Karza is a vital part of our services enabling us to cater to individuals and businesses from all walks of life. Our new campaign will help our target audience to build assets, create jobs and improve their standard of living.”
FINCA Pakistan has over half a million clients who are serviced by its branchless banking platform and 135 branches all over the country. The bank has been one of the fastest growing microfinance institutions in Pakistan and its balance sheet has grown 134% in the last three years.
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Adldi opens an awareness drive on diabetes and obesity
Alliance for Diabetes and Liver Diseases (ADLDi) announced the launch of Fit 4 Health awareness campaign at an event in Islamabad. The event gathered the principals and faculty members of schools from Islamabad and Rawalpindi, where they were briefed about the importance of inculcating the concept of healthy living among school children from young age.
Addressing the event, Chairperson ADLDi, Prof. Dr Saleem Qureshi said, “Diabetes is a situation that needs to be addressed urgently as it poses a great burden on the economy of Pakistan. An initiative like Fit 4 Health which focuses towards creating awareness among the youth, is certainly a step in the right direction”.
The co-chair ADLDi, Dr Musarrat Iqbal said that the objective of this collective initiative is to create awareness among students about adopting a healthy lifestyle from an early age to address the increasing trend of diabetes & obesity. Lifestyle modification, physical activity and healthy diet can delay or prevent onset of type 2 diabetes. We are already a little late”, she said.
Wasim Akram, Brand Ambassador for changing diabetes in Pakistan, shared his experience with the audience, emphasizing on the importance of early diagnosis for better management of diabetes. “Fit 4 Health” is running in collaboration with Novo Nordisk Pharma (Pvt) Ltd and endorsed by the Ministry of National Health Services Regulation and Coordination. Rashed Rafique Butt, Vice President and General Manager of Novo Nordisk Pharma (Pvt) Ltd was also present the event along with the Ambassador of Denmark to Pakistan, Mr Rolf M. Holmboe.
Novo Nordisk is a global healthcare company with more than 95 years of innovation and leadership in diabetes care. This heritage has given us experience and capabilities that also enable us to help people defeat obesity, haemophilia, growth disorders and other serious chronic diseases. Headquartered in Denmark, Novo Nordisk employs approximately 42,200 people in 80 countries and markets its products in more than 170 countries.
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Seventh arena premier cricket league to open at UBL sports complex
The seventh edition of the Arena Premier Cricket League (APL) will be launched from February 18, 2020 at the UBL Sports Complex, Karachi. The event, organized by Arena Multimedia Pakistan, aims to promote healthy activities and opportunities for students to participate and enjoy the sport.
The cricket tournament, scheduled to begin February 18 at the UBL Sports Complex, will feature teams from 14 Arena Multimedia Centers on the basis of a single league. The tournament’s final will be played on February 19 among the league’s top two teams, with prominent players from the city including former players expected to attend the tournament’s closing ceremony.
The APL is an initiative of Arena Multimedia Pakistan, making it the only multimedia institute in the country which has been organizing the Arena Premier Cricket League for the last several years.
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Infraco asia commits to further infrastructure development and investments in Pakistan
The InfraCo Asia team was in Islamabad last week to give updates to its Owner representatives, joint venture partners, and key stakeholders. Meetings were conducted with key Pakistan government officials, including Minister of State and Board of Investment Chairman Zubair Umar, Minister of Energy Omar Ayub Khan and Special Assistant to the Prime Minister on Energy.
The meetings covered future investment and development opportunities in the renewable energy and waste-to-energy sectors, ways that InfraCo Asia could partner with local companies and how private sector investment might be catalysed in Pakistan through these activities. InfraCo Asia has been developing and investing in Pakistan since 2013.
Projects in Pakistan
InfraCo Asia recently entered into a joint venture with Albario Engineering Pvt Ltd (AEPL) under project company PRISM, which seeks to develop distributed rooftop solar systems of up to 40MW in aggregate capacity in Pakistan. The project aims to improve the reliability of energy supply for the commercial and industrial sectors. InfraCo Asia is also developing a 150MW portfolio of run-of-river hydroelectric projects in the Swat Khyber Pakhtunkhwa (KPK) province through a joint venture with Markhor Energy. Feasibility studies are underway for the Swat KPK Hydro Power Platform project, including geo-technical investigations.
In 2017, InfraCo Asia divested its shareholding in the Metro and Gul Ahmed wind power projects to Daelim Energy. The two 50MW wind power projects generate an additional 155.5GWh of electricity per year, providing approximately 700,000 people in Pakistan with improved access to clean energy. The Metro and Gul Ahmed wind power projects were the first project-financed wind deals in Sindh province and are among the earliest wind-power developments in Pakistan’s renewables sector.
Infraco Asia in action
On 13 February, InfraCo Asia CEO Allard Nooy presented on developing opportunities for the country’s wind power sector at the Pakistan Energy Reform Summit at the Serena Hotel, alongside presenters from ACWA Power, the Asian Infrastructure Investment Bank (AIIB), the International Finance Cooperation (IFC), Standard Chartered Bank, and China Three Gorges South Asia Investment Limited (CSAIL).
Mr Nooy said, “InfraCo Asia exists to bridge the infrastructure gap that government or development finance institutions often struggle to meet, especially in the early stages of project development. Through our project development and financing expertise, we act as a catalyst for the private sector to invest in sustainable infrastructure projects in Pakistan and in other countries across South and South East Asia.” “In Pakistan, InfraCo Asia is particularly interested in pursuing opportunities in the renewables, water supply and waste-to-energy sectors.”
Mr Nooy said he aims to return to Pakistan in the second quarter of 2020 for the launch of the first phase of PRISM’s (the InfraCo Asia-AEPL joint venture) distributed rooftop solar projects targeting the industrial sector, to discuss results of the Swat KPK Hydro Power Platform feasibility studies and to put in place next steps.
About InfraCo Asia:
Headquartered in Singapore, InfraCo Asia is a commercially managed infrastructure development and investment company of the Private Infrastructure Development Group (PIDG). InfraCo Asia’s funders include the UK Department for International Development (DFID), the Netherlands Ministry of Foreign Affairs (DGIS), the Swiss State Secretariat for Economic Affairs (SECO) and the Australian Department of Foreign Affairs and Trade (DFAT).
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Businessmen concerned over revenue shortfall, increased borrowing: Mian Zahid
President Pakistan Businessmen and Intellectuals Forum (PBIF), President All Karachi Industrial Alliance (AKIA), Senior Vice Chairman of the Businessmen Panel of FPCCI and former provincial minister, Mian Zahid Hussain on Monday said business community is concerned over massive revenue shortfall and increasing debt burden.
The government can bridge the revenue gap through a mini-budget or rationalize the import tariff to boost economic activities which will generate revenue, he said.
Talking to the business community, the veteran business leader said that despite the best efforts of FBR, the revenue shortfall for seven months has jumped to Rs387 billion while the shortfall for January was Rs104billion.
He said that revenue cannot be enhanced in an unfavourable environment while highhandedness of the tax collectors takes a toll on the investment climate and lead to street protests.
The former minister noted that mini-budget will be counterproductive as masses cannot endure more burden while the business community cannot help the government bridge the shortfall.
Therefore, he said, the import regime should be relaxed to improve economic activities which will help generate additional revenue and jobs.
He said that the experiment of unnecessary compression in imports has failed as import reduction to the tune of one billion dollars results in revenue loss of Rs56 billion while losses of the business community and masses exceed it.
Depressing imports has left many businesses bankrupt, people jobless and banks with infected loans, therefore, it is time to liberalize imports to some extent, he added.
He noted that exports are not possible without imports. Vietnam exports remained 264 billion dollars during 2019 but it was backed by imports worth 253 billion while the surplus was about 11 billion dollars.
Vietnam’s smartphone and spare parts exports are over 51 billion dollars which should act as a wakeup call for authorities.
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Top accountants want to keep pace with technology in fight against economic crime
Estimates show financial crime costs the world $3.5 trillion per year — more than the gross domestic product of the UK — and often sees countless people lose savings, jobs and sometimes much more.
A new report, Economic Crime in a Digital Age, features analysis from senior practitioners at ACCA (the Association of Chartered Certified Accountants) and EY. It focuses on the challenges business faces in fending off breaches from sophisticated attackers.
The panel found there is still a pressing need to create a regulatory environment that supports financial innovation as well as limiting the risks for consumers and businesses. Policymakers and regulators must overcome the technology lag – where legislation has sufficiently caught up with technology.
Jason Piper, head of Tax and Business Law at ACCA, believes technological advances and criminal activity can often go hand in hand.
Mr Piper says the scope of technology means there are more potential victims of economic crime in single attacks.
He says: ‘Economic growth flourishes on technological advances, however criminal activity also responds and reacts, and the opportunity that criminals exploit creates challenges for regulators, legitimate businesses and their customers, auditors and advisers alike.
‘This lag will be exacerbated by the skills and knowledge deficits within the regulatory and law enforcement community. In recent years, criminals have benefited from operating internationally in a way regulators cannot.’
Rogue actors are increasingly abusing emerging technologies and innovation to compromise data integrity. In order to effectively mitigate this risk, companies need to carefully review and assess areas such as Artificial Intelligence (AI), Robotic Process Automation (RPA), and cyber security linked to their critical processes and data.
Commenting on the report, ACCA’s head of Pakistan, Sajjeed Aslam said, ‘Cyberspace does not recognise national borders – but law enforcement must. To tackle crime, businesses and law enforcement around the world need to be able to act together, and that relies upon a coordinated global regulatory approach which recognises the new landscape and reflects the demands of a digital age.’
Andrew Gordon, EY Global Forensic & Integrity Services Leader says: ‘Embedding a culture of integrity is critical for organizations. Achieving this through a combination of data insights, governance, culture, controls and procedures will help organizations protect themselves in the constantly transforming risk landscape.’
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K-Electric launches ‘safety awareness drive 2020’ targeting over 100,000 students
K-Electric launched its School Safety Awareness Drive 2020 with an inaugural event held at a local hotel attended by heads of educational institutions, senior government officials, representatives of the media and other stakeholders. Under this Safety Drive, over 100,000 children in Karachi, between the ages of 8 to 16 years, will be educated about basic principles of general safety, electrical safety, hazards of power theft and benefits of energy conservation with the aim to engage and sensitize students through activities including quiz competitions and drills.
The power utility has initiated this activity in the hope of filling a critical vacuum – the absence of safety courses and training sessions as part of regular curriculums. Speaking at the launch, the K-Electric spokesperson said, “We believe that safety is everyone’s responsibility. Creating safe and resilient cities is also a key United Nation’s Sustainable Development Goal; by taking the lead in inculcating awareness and ownership about personal and public safety, we seek to drive a societal change and students as our future leaders must be at the helm of this culture shift. We look forward to partnering with the managements of all participating schools and also look forward to the support of the government and other stakeholders in this initiative to ensure maximum impact.”
Deputy Commissioner District South, Irshad Ali Sodhar graced the event as Chief Guest and said, “All stakeholders have an obligatory role to play in ensuring a safe and resilient community which underpins sustainable development. We appreciate K-Electric for realizing the importance of this and launching their Safety Drive 2020. By involving students as the change leaders we hope to ensure that our future generations are equipped with the necessary skills and awareness to become ambassadors of safety, prevention and essentially deliver this message to a wider audience of friends and family.”
K-Electric is committed to excellence in health and safety. Public outreach and awareness campaigns are conducted on an on-going basis and the power utility has engaged over 50,000 people – including students – during the last four years imparting awareness on issues such as fire and general public safety, energy conservation and environmental protection. Due to these efforts, KE has won numerous National level Safety Awards during the last ten years.
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Bankislami wins four categories at NFEH awards
BankIslami, one of the leading technologically advanced bank of Pakistan with 330 branches in 114 cities, won four prestigious awards at the National Forum for Environment & Health in an award ceremony held recently. The four categories included Biodiversity, Employee Engagement and Volunteering, Education and Scholarship and Green Energy.
The Bank is a strong advocate of eco-friendly living and is always at the forefront when it comes to giving back to the society and contributing in its sustainable future. Adhering to their core belief, the team at BankIslami took initiatives including introducing a biometric, cardless technology “One Touch Banking” that allows free, chequeless (paperless) transactions to customers; “Share to Care” where they spent a day at Edhi Homes with children; provided international scholarships to students for Singapore and last but not the least they solar powered more than fifty percent of their branches.
These continuous efforts have rewarded them with the honorable recognition at the prestigious NFEH’s awards. The dynamic team of BankIslami zealously strives to utilize more opportunities to fulfill its corporate social responsibility for the coming year.[divider style=”normal” top=”20″ bottom=”20″]
UBL’s compliance group first in Pakistan to become ISO 9001:2015 certified
UBL has become the first bank in Pakistan whose Compliance Group has been assessed by SGS Pakistan and certified as meeting the requirements of ISO 9001:2015 Quality Management System Certification which is accredited by UKAS. This distinct accolade has been achieved by UBL’s Compliance Group under the scope of ‘provision of compliance risk oversight and advisory services’.
SGS is a Swiss-based multinational leading certification body. The ISO 9001:2015 is an international standard that defines the basic elements of a quality system that organizations adopt to ensure that their services meet and go on to exceed expectations of customers and other stakeholders.
A ceremony was held at the UBL Head Office in Karachi, on Tuesday, 11th February 2020 for the presentation of the Certification. Ms. Sima Kamil, President & CEO, UBL along with Mr. Sajid Hussain, Group Executive Compliance, UBL and other senior executives represented UBL at the event. SGS was represented by Mr. Abdul Razzaq Lakhani, Managing Director SGS and other executives from his team.
Ms. Kamil, President & CEO UBL at the occasion said “In an era where meeting high standards of Compliance is critical, it is a great honour for UBL’s Compliance Group to be assigned such a recognition. It represents an internal commitment, not only to the international standard, but also the standards required to ensure a continued focus on customer service, consistency in quality of products and service delivery. It embodies our aspiration to be measured and monitored for continual improvement, both internally and externally.”
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Askari bank posts record profit
Askari Bank announced its results for 2019 showing highest-ever profit of Rs. 7.03 billion, a 59% percent increase from last year.
EPS for 2019 is reported at Rs. 5.58 compared to Rs. 3.51 last year. The Bank also announced a cash dividend of Rs. 1.5 per share that is 50% higher than last year. The profit and loss statement is showing an impressive growth in all revenue lines and is also reflecting quality asset portfolios as the provisions against non-performing assets declined by 47%, despite a challenging economic and business environment where industry non-performing loans are on the rise. Given these challenges, Askari Bank results for 2019 are noteworthy and appears to have significantly exceeded market expectations.
Since the change of leadership; Mr. Abid Sattar took charge as President during the second half of 2018, Askari Bank has been through a major transformation and since gaining confidence on the back of a strong brand, efficient processes, digitalization, competitive offerings and outreach, expanding client base and focus on service excellence. In a recent interview, Mr. Sattar said that Askari Bank is now ready to begin a new chapter in its history with plans to become a formidable player in Pakistan Banking landscape.
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MCB Bank’s profit before tax crosses rs 40 billion, impressive growth of 25pc yoy
The Board of Directors of MCB Bank Limited met under the Chairmanship of Mian Mohammad Mansha on February 04, 2020, to review the performance of the Bank and approved the financial statements for the year ended December 31, 2019. The Board of Directors has declared 4th cash dividend of Rs. 5 per share i.e. 50% bringing the total cash dividend for the year ended 2019 to 170%, continuing with its highest dividend payout trend in commercial banks category.
MCB’s profit before tax grew to Rs. 40.10 billion which reflects a tremendous growth of 25% over 2018, despite the tough operating environment. The key highlights were impressive increase in net interest margins through gradual shift in the maturity profiling of investment base along with a more refined structure.
The strategic profiling of the investments based on the interest rate calls resulted in a gradual shift from shorter to longer term investments, thereby capitalizing on the significant interest rate movement during the year. Net interest income rose to Rs. 59.62 billion, 30% higher than the last year on account of effective asset deployment of the low cost deposits. Analysis of the interest earning assets highlights that income on advances increased by Rs. 20.37 billion, primarily on account of increase in yield of 398bps. On the investment side, gross markup income increased by Rs. 30.76 billion, due to increased average volume by Rs. 66.61 billion and yield of 391bps. On the interest bearing liabilities side, the cost of deposits increased by 278bps over last year.
The non-markup income block of the Bank was reported at Rs. 16.68 billion with major contributions coming in from fee commission and foreign exchange income. One of the major revenue line supplementing the fee growth was commission from Bancassurance, with MCB Bank Limited leading the new business generation in percentage terms.
Despite the inflationary surge during the year, growth in the operational network and constant investment in digital, cyber security and information technology related platforms, the operating expense growth was contained to an impressive 5%, as efficient cost management remains one of the key strengths for MCB Bank Limited.
On the provision side, the bank reversed provision amounting to Rs. 158 million on advances; whereas, the Bank recorded net charge of Rs. 2.8 billion on equity portfolio in 2019.
On the financial position side, the total asset base of the Bank on unconsolidated basis was reported at Rs. 1.52 trillion depicting an increase of 1% over December 2018. Analysis of the asset mix highlights that net investments and advances are reported at Rs. 748.77 and Rs. 496.68 billion respectively.
The Non-performing loan base of the Bank recorded a marginal increase of Rs. 469 million and was reported at Rs. 49.42 billion. The coverage and infection ratios of the Bank were reported at 87.73% and 9.15% respectively.
On the liabilities side, the deposit base of the Bank registered a significant increase of Rs. 95.73 billion (+9%) over December 2018.
Return on Assets and Return on Equity were reported at 1.59% and 16.84% respectively, whereas book value per share was reported at Rs. 122.54.
While complying with the regulatory capital requirements, The Bank’s total Capital Adequacy Ratio is 18.86% against the requirement of 12.50% (including capital conservation buffer of 2.50%). Quality of the capital is evident from Bank’s Common Equity Tier-1 (CET1) to total risk weighted assets ratio which comes to 15.70% against the requirement of 6.00%. Bank’s capitalization also resulted in a leverage ratio of 7.07% which is well above the regulatory limit of 3.0%. The Bank reported Liquidity Coverage Ratio (LCR) of 197.13% and Net Stable Funding Ratio (NSFR) of 140.67% against requirement of 100.
The Bank enjoys highest local credit ratings of AAA / A1+ categories for long term and short term respectively, based on PACRA notification dated June 27, 2019.
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NHA maintains certificate of ISO-9001: 2015 in 2020
According to a press release of National Highway Authority (NHA), the International Certification Agency has maintained the certificate of ISO-9001: 2015 for NHA in 2020, also, due to its excellent performance, which is a source of pride for the Authority.
It is to recall that NHA, for the first time, was awarded with ISO-9001:2015 Quality Management System Certificate in 2018. In order to maintain this certificate honourable Chairman NHA Capt Sikandar Qayyum (retired) undertook extra ordinary steps. The ISO cell was assigned the important task of maintaining this certificate. Under the patronage of Chairman NHA, this cell performed well and worked with devotion which paved the way to maintain this certificate.
Further, Member Administration NHA Capt Mushtaq Ahmed (retired) also played valuable role to achieve the target. NHA’s ISO Zonal coordinators also put in untiring efforts to this effect. In order to serve the purpose, NHA arranged training workshop on International Quality Management and ensured implementation of SOPs of various sections of the Authority.
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Calsouthern-Calpak delegation looks to provide education to underserved communities in Pakistan
A joint delegation led by Dr. Gwen Finestone, President of California Southern University (CALSouthern) and Anila Ali, Founder CALPAK called upon H.E. Imran Ismail, Governor Sindh.
Founded in 2017 to provide educational and employment opportunities to underserved communities in Pakistan, the collaboration of CALSouthern-CALPAK has achieved a positive impact towards sustainable development goals including increased access to quality education, clean water and energy.
During the meeting, the two sides discussed the country’s education system in Pakistan and how to increase female enrollment in schools. Till date, CALPAK has in association with CalSouthern sponsors, inaugurated two schools in Qurtuba and Tharpakar.
Dr. Finestone also met with Imran Haleem Shaikh, Chief of Staff – JS Bank on collaborations to augment the education sector in Pakistan. During the meeting, Imran Shaikh said, “Dr. Finestone and Ms. Anila have added value on how to bring about positive change in the education sector. By focusing on female education, JS Bank is working to amplify impact across society as a whole.”
Imran Ismail expressed his views stating, “This partnership is another step in our drive to enable female education and build their contributions towards the national economy. Women are a driving force in our lives and culture. By engaging with entities such as the CALSouthern-CALPAK Collaboration we are providing a platform for women to grow and be the leaders of tomorrow.”
Dr. Gwen Finestone stated, “Our meeting with the governor was very productive. He is obviously a man who cares about the people of his country and most particularly of his province. He was willing to go out of his way to assist us. We recognize and are thankful for his efforts toward education and women’s empowerment.”
Committed towards the progress and prosperity of Pakistan, CALSouthern-CALPAK will continue to provide education to the under privileged in Pakistan.
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Proper economic diplomacy needed to gain economic freedom: Mian Zahid
President Pakistan Businessmen and Intellectuals Forum (PBIF), President All Karachi Industrial Alliance (AKIA), Senior Vice Chairman of the Businessmen Panel of FPCCI and former provincial minister, Mian Zahid Hussain on Monday said effective economic diplomacy is needed for political and economic independence. Economic security is imperative for national security while only self-reliant countries are respected in the global community of nations, he said.
Talking to the business community, the veteran business leader said that economic diplomacy make the country rich and influential while its absence compels any country to follow dictation in its political, economic and foreign policies.
The former minister noted that government and the private sector must join hands for successful economic diplomacy and the business associations can play a leading role in this regard.
He noted that trade agreements, deals aimed at abolishing double taxation, mega projects, financial services, foreign investment etc. are all linked to economic diplomacy.
The business leader said that trade officials should be posted on merit in foreign mission and their promotion must be linked to the results so that they promote national interests which also include promotion of tourism and introducing new technologies in Pakistan.
He said that construction of CPEC and opposition by various countries are both forms are economic diplomacy for which different economic tools are being used.
Economic diplomacy is of no use unless there is political and economic stability in the country and the government enjoys confidence of the investors which is a test for the current administration, he said.
He noted that annexation of held Kashmir should be a wakeup call for us as a lot of close friends refused to help us in the dispute. Once Pakistan’s exports were more than total exports of many countries now knows as Asia Tigers but now Bangladesh is earning almost double amount of foreign exchange as compared to Pakistan while we are also facing double-edged sword of FATF.
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Finland to train one million Pakistani students on disruptive-technologies
The Federal Minister of Planning & Development, Asad Umar, chaired the signing ceremony of a historic MoU between the Governments of Finland and Pakistan, to launch an initiative to train 1 million students on disruptive technologies like; Artificial Intelligence (AI), Internet of Things (IOT), Gaming-Tech, Health-Tech, etc. This is the first and the largest ‘Mass IT Education Program’ in collaboration with the Government of Finland.
It will be managed by prestigious institutions like the Kajaani University of Applied Sciences, Finland, “Allied ICT”, Finland and the Virtual University (VU) Pakistan, while also engaging a local partner – Integration Xperts (IX), in Pakistan to provide technical expertise.
The former Minister of Information-Technology, Dr. Khalid Maqbool Siddiqui (MNA) also graced the occasion, accompanied by senior officials of the Ministry of IT & Telecom, CEO of Kajaani University Matti Saren, Rector of VU Mr. Naeem Tariq, Delegates of Allied ICT Finland and Global Alliance, etc., while the CEO of Vendor Junction (Regional Partner), Sayed Jawed also witnessed the signing ceremony, along with Mr. Umair Azam, Managing Director of Integration Xperts (Representative in Pakistan). All these stakeholders have been working hard for the last one year, to make this venture a reality.
Dr. Khalid Maqbool Siddiqui thanked the Government of Finland for their support and stated that: “This valuable initiative reflects Pakistan government’s commitment to enrich the economy with an additional qualified workforce of one million youngsters, educated on European professional standards, to learn special skill-sets. It will enable them to capitalize on the latest trends evolving in Information-Technology. With their globally recognized certifications, these fresh human-resources will strengthen Pakistan’s IT industry, by nurturing a wide range of technology start-ups. Pakistan will thus gain competitive-advantage in the global free-lance work-space, to become an attractive destination for international companies searching for qualified technology experts.”
The President & CEO of Kajaani University and Member ICT Finland, Matti Saren said: The Economist Intelligence Report has declared Finland as the best country in the world for future skills-education, while the PISA research by OECD also ranks Finland as the best higher-education & training system in the world. Since Last year, Vendor Junction and Integration Xperts have been exploring ways to access the highest quality of mass-education, technologies and ideas. By following the proven system of Finland, millions of Pakistanis will now become highly-rated experts in the global business environment. The European enterprises are also being engaged to identify investment opportunities in this region, which promises great talents for building innovative businesses.
Anas Al Natsheh, Director of International Education Cooperation at Kajaani University said: Resourceful international collaborations and digital technologies are enabling accessibility to quality education across the globe, nurture innovations, new ideas and products. These collaborations serve as great platforms for knowledge-exchange, teaching and learning. Rapid advancement promises accelerated progress, especially for developing countries.
Jarmo Jarvenpaa, member of Allied ICT Finland and CEO of Istoc stated: Digitalization is creating a whole new world of possibilities for growth. Partnerships are enabling new ways to attract investments and achieve agility for success. Working research institutes and local healthcare partners, Allied ICT has already executed a successful infectious-diseases program in Pakistan. Now we are implementing this international training program for nurses and healthcare workers, through mHealth education.
The experts involved in this initiative recognize that; AI, IoT, Machine Learning, Data Analytics, Digital Networking, Gaming and Drone Technology, are essential skills for success in the global ICT market. Investing on quality incubation and commercialization centres with accredited certifications are needed to nurture local talent, start-ups, based on research, that can impact, sustainability and lives in society as a whole.
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Meezan bank announces results for the year 2019!
Meezan Bank continued its growth momentum and recorded excellent results for the year ended December 31, 2019. The Board has approved 20% final cash dividend (Rs. 2.00 per share) for the fourth quarter of 2019 bringing the total dividend payout for the year to Rs. 5.00 per share (50%) as Rs. 3.00 per share i.e. 30% interim cash dividend was paid along with issuance of 10% bonus shares during the year.
The Bank has earned Profit after tax of Rs. 15,232 million against Rs. 8,962 million recorded last year – a growth of 70%. The Bank’s Earnings Per Share on enhanced capital increased to Rs. 11.84 per share from Rs. 6.97 in December 2018.
We are pleased to also announce that an amount of Rs. 200 Million from the profits of financial year 2019 will be used as initial contribution for the newly formed Meezan Bank Foundation – a foundation that will focus on managing the Bank’s CSR initiatives, enabling the Bank to contribute to the well-being of the society at large on a larger scale.
The Bank’s deposits grew to Rs. 933 billion – a growth of 19% over last year while its total assets grew to Rs. 1.12 trillion. The Bank’s Non performing financings ratio of 1.8% is well below the industry average of 9% which indicates the strong credit quality of the Bank’s assets portfolio.