FWBL crossed the milestone of PKR 500,000,000 under Kamyab Jawan (yes)
While visiting the FWBL Head Office Mr. Usman Dar Special Advisor to the Prime Minister on Youth Affairs appreciated the performance of the First Women Bank Ltd. for surpassing its targets set for the current year and crossing the Milestone of PKR 500,000,000 under the Prime Minister’s Kamyab Jawan Youth Entrepreneurship Scheme.
Mr. Farrukh Iqbal Khan President and CEO – FWBL informed the Advisor that the bank is especially focused on women empowerment which is evident from the fact that under the Kamyab Jawan Program almost 50% of the total disbursements have been provided to women entrepreneurs.
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Electricity tariff hike will add despair for common man: Mian Zahid
Chairman of National Business Group Pakistan, President Pakistan Businessmen and Intellectuals Forum, and All Karachi Industrial Alliance and Former Provincial Minister Mian Zahid Hussain on Wednesday said as per the directions of the IMF the government is all set to increase the electricity tariff by 95 paisa per unit.
He said that NEPRA has also decided to allow more than Rs 3 per unit increase as the fuel price adjustment for December, which will affect the people and the business community.
Mian Zahid Hussain said that the prices of electricity, gas, and petroleum products are already at record levels which have made life difficult for the people and further increase in power tariff will further erode their buying power.
Talking to the business community, the veteran business leader said that instead of constantly increasing the price of electricity, the government should focus on reducing electricity theft and wastage and improve recovery, as well as the transmission and distribution system.
Mian Zahid Hussain further said that the government has failed to balance the supply and demand of cotton in the market due to which the stock of raw cotton in the country is rapidly depleting.
The scarcity of cotton will prove to be a major setback for the textile industry, which was showing encouraging signs despite the decision of the government to increase gas tariff from 6 dollars per mmbtu to 9 dollars per mmbtu which dented the confidence.
At present, big companies are trying to import cotton but small mills which cannot import are trying desperately to stay afloat.
Cotton imports will cost valuable foreign exchange and increase the trade deficit, he said, adding that mills can get cheap cotton only if the government imports it on a large scale.
Mian Zahid Hussain added that fundamental changes in key policies have crippled the business community’s plans and wind-swept their confidence, which is affecting the economy.
Abrupt withdrawal of incentives and subsidies and major changes in the tax system have dented the business environment, which has influenced investment decisions.
The private sector is working to increase revenue through production and exports, to provide employment and to earn foreign exchange for the government.
The government should extend possible cooperation to this sector and avoid harassment.
Because of the lack of energy supply in Sindh and Balochistan, many factories have closed, while many are producing less than what they can, he observed.
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Jazz recognized for ‘driving change beyond workplace’ at OICCI Women Empowerment Awards 2021
To recognize the commitment in improving the lives and livelihood of women through technology, the Overseas Investors Chamber of Commerce and Industry (OICCI) awarded Jazz with the ‘Driving Change Beyond Workplace’ award at the Women Empowerment Awards 2021 held last week at a local hotel in Karachi. Abdul Aleem, Secretary General, OICCI presented the award to Wajida Leclerc, Chief People Officer, Jazz.
Jazz is dedicated to enhancing diversity and women’s empowerment within its business model and focuses on uplifting women in the society through the power of the internet. Female specific products and services are designed to help address many of the wider gender inequalities by digitally enabling them to access health, financial, and other life-enhancing services. The company’s digital financial service, JazzCash, under the GSMA Connected Women Commitment Initiative, has committed to increase the proportion of women in their mobile money customer base by 2023. In addition, all its sustainability programs ensure 50% women participation ranging from urban to rural areas so women can lead the change.
“Inclusivity being at the heart of all our policies, we have always paved the way for gender equality within the organization as well as the society at large. This recognition further validates our holistic approach towards empowering women internally and externally and renews our vigor as we move forward in our journey of creating a digitally inclusive ecosystem in Pakistan,” said Wajida Leclerc, Chief People Officer, Jazz.
Jazz is an equal opportunity employer and is creating and nurturing an inclusive and empowering culture. It’s one of the first telecom companies with a high female representation in its executive leadership. Not only does the company promote gender diversity in its work environment, it also has programs focused entirely on attracting and facilitating the female gender including the most recent ‘She’s Back – Women Returnship Program’ for women looking to return to work following a career break. Jazz is among the few early adopters in Pakistan to fully commit itself to the Women Empowerment Principles, introduced by UN Women and the UN Global Compact that focus on steering corporates to promote gender equality and women empowerment.
Champions of Change Coalition, a globally recognized, high-profile coalition working to achieve change on gender equality issues recently welcomed Jazz CEO Aamir Ibrahim as the coalition’s member aiming to accelerate progress in creating more inclusive and progressive organizations in Pakistan.
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Alhuda Cibe, Tawhid bank to set up shariah-based Takaful firm in Tajikistan
AlHuda CIBE UAE and Tawhid Bank Tajikistan signed an agreement to set-up the first Takaful Company in Tajikistan. It is the first Shariah legitimate solution to Tajikistan’s insurance industry. The MoU signing ceremony was held Dubai-UAE.
On this occasion Mr. Muhammad Zubair Mughal CEO of AlHuda CIBE said the entrance of Takaful concept to Tajikistan insurance industry will play a vital role for financial inclusion and also it will fulfill the gap of the missing components of Islamic finance industry. He also highlighted the fact that Tajikistan Islamic finance industry has only one fully fledged Islamic Bank. A couple of banks and Microfinance institutions have Islamic finance window operations but none of the Takaful Company exists. He also added that setting up a Takaful company will not only give a boost to Islamic finance industry but it will also provide a solution for those individuals who do not use insurance because of religious perspectives.
The CEO of Tawhid Bank Mr. Zardov Sher Ali said that Takaful Company is a new addition to Tajikistan Islamic finance industry and it will play a very important role for enhancing the growth and development of Islamic Insurance industry. Tajikistan is a small landlocked country in the heart of Central Asia. It has around 96.7% Muslim population. To meet the financial needs in line of religious boundaries after Tawhid bank, setting-up Takaful Company is another solution to support Islamic finance industry growth in Tajikistan.
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Inflation has made many people mentally ill, says Zahid Hussain
Chairman of National Business Group Pakistan, President Pakistan Businessmen and Intellectuals Forum, and All Karachi Industrial Alliance, and former provincial minister Mian Zahid Hussain on Friday said continued inflation has made a lot of people mentally ill.
Inflation continues to increase, but wages are stagnant, which is prompting the masses to change their opinion about the government, he said.
Mian Zahid Hussain said that the global inflation average stands at 4 percent, inflation in India, Afghanistan, and Sri Lanka is at 4 percent while it is 13 percent in Pakistan.
Talking to the business community, the veteran business leader said that inflation can be attributed to a hike in the price of oil and other things in the international market, rising shipping costs, erosion in the value of local currency and profiteering.
He said that the former finance minister was stabilising the economy but he was shown the door after which policy of growth was adopted, short-term moves were preferred which increased GDP, imports and Large Scale Manufacturing.
The business leader said that currency was devalued to boost exports which were boosted by 24 percent but it also made imports costly. Imports jumped by 58 percent to push up the trade deficit to 28 billion dollars.
The IMF also delayed release of funds which resulted in an economic crisis and now the government had to borrow to repay loans.
Mian Zahid Hussain said that gas prices are at a record high in the international market, oil prices are at the 2014 level and inflation is increasing which is slowing down economic activities.
Inflation is very high in Pakistan as compared to the majority of the countries, therefore it was not possible to further increase the price of petroleum products.
He noted that SBP has imposed some restrictions over the sale and purchase of dollars which will reduce its demand as well as the flight of capital.
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HBL enables e-commerce transactions on Daraz for UnionPay cardholders
HBL and Daraz join hands to enable all UnionPay cardholders to conduct e-commerce transactions from Daraz online marketplace. With this enablement, UnionPay cardholders can now perform seamless and secure transactions on Daraz.
HBL has always been at the forefront of expanding its digital footprint in Pakistan through its technology-driven initiatives. In line with its vision to becoming a ‘Technology Company with a Banking License’, HBL is focused towards expanding its role in the e-commerce industry, by enabling all UnionPay cardholders to shop on Daraz, empowering them with an optimized online shopping experience.
Kamran Mehdi Jaffery, Head Digital Channels & Solutions – HBL, commented, “HBL empowers its customers with increased choices, and thus accelerating the pace at which our economy digitalizes. Our collaboration will directly benefit UnionPay cardholders who can now make online transactions on Daraz. This will level the playing field and increase opportunities for the card holders. The overarching goal for HBL is to enable a sustained economic ecosystem powered by digital inclusion.”
James Yang, General Manager of UnionPay International Middle East Branch, said in a statement, “UnionPay is a customer-centric card scheme and we keep developing and bringing the best available payment options and experiences to the market. We are excited to partner with HBL to enhance the customer journey at Daraz for our cardholders, accelerating digital transformation to meet demands and long-term growth in the community.”
Commenting on the partnership, Syed Zeeshan Ali, Director Digital Payments – Daraz said, “Daraz has a strategic focus on digital payments growth in Pakistan and has worked relentlessly with stakeholders to bring new digital payment solutions to its customers. We are delighted to launch acceptance of UnionPay cards at the Daraz online marketplace as it will enable a major segment of customers to pay digitally. Over half of the customer spend on Daraz is acquired through digital payments, and with the addition of UnionPay as a payment option, we look forward to further expanding digital payment adoption on Daraz.”
The partnership between HBL, Daraz and UnionPay will create an enabling environment for a more rapid and inclusive growth of the Pakistani economy. It will serve as a milestone for not just UnionPay cardholders, but also for Pakistan’s digital payments and e-commerce landscape as a whole.
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GO raises salary by 50pc in response to PM’s appeal
Gas & Oil Pakistan Limited (GO), Pakistan’s fastest growing oil marketing company has announced that it has decided to increase the salaries of its employees by up to 50%.
Making the announcement, CEO, Mr. Khalid Riaz stated that “GO is the fastest growing oil marketing company and as a responsible corporate citizen, and in response to the appeal by Prime Minister Imran Khan, we are implementing a revised salary structure that will involve increases of up to 50%. We are not only covering our own employees but will also ensure that our dealer partners and contractors do the same, a move that will impact more than 20,000 frontline workers.”
As a result of the initiative, it is expected that all the frontline workers associated with the company whether as direct employees or through contractors, will earn at least Rs. 30,000 per month. The company will bear the incremental costs of this revision. The company will also work with its dealer partners to ensure that the initiative is cascaded throughout the GO retail network. We expect this initiative to result in higher earnings for more than 100,000 people.
GO operates more than 950 retail outlets and has the 2nd largest upcountry storage network. The company also has the largest network of Company Owned Company Operated (COCO) retail outlets in the country with presence on M4 and M5 Motorways.
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FCEPL announces financial results for fy 2021
FrieslandCampina Engro Pakistan Limited (FCEPL) announced its financial results for the year ended December 31, 2021. The Company reported revenue of PKR 52 billion, registering 18% growth versus last year. FCEPL recorded highest-ever volumes of Ice Cream and highest-ever revenue in Dairy and Ice Cream segments in 2021. This milestone was achieved by focusing on overall volume growth through expansion of distribution, greater brand penetration, mix improvement through value accretive brands and improving efficiencies across the value chain. These initiatives reflect FCEPL’s unwavering commitment towards enhancing access to nutrition for a healthier and food-secure Pakistan.
Despite record inflation and rupee devaluation which led to a steep increase in commodity prices, the Company managed to offset the spikes and improve Gross Margin by 350bps versus last year, through several innovations and savings initiatives in the value chain. As a result, profit after tax improved by 10X compared to last year – PKR 1,804 million in 2021 vs PKR 177 million in 2020.
On September 8th, 2021, FrieslandCampina, celebrated its milestone 150-year anniversary of delivering superlative dairy products and nutritional excellence. In line with its commitment to the Nation, FCEPL partnered with the University of Education to launch a 6-month pilot School Milk Program with the aim to improve the nutritional status of thousands of children and enable them to take full advantage of the education provided to them.
Dairy and Beverages
The segment reported revenue of Rs. 46.9 billion, growing 16% compared to the same period last year. Olper’s led the growth in the segment while strengthening its position as the market leader through brand and trade investments, and expansion of retail footprint by 6,000+ outlets. Olper’s UHT Milk, Cream, Flavoured Milk and Tarrka Ghee also recorded double-digit growth.
With a focus on improving accessibility and affordability, the Company launched the Olper’s Pouch at a price point of PKR 50 in Pakistan. Other recent launches include Olper’s Flavored Milk, Olper’s Full Cream Milk Powder (FCMP), Olper’s Cream, Olper’s Pro-Cal, Tarang Tea Whitening Powder (TWP) and Tarang Elachi, all of which gained a healthy market share in a short timespan despite strong competition. The Company will continue to leverage FrieslandCampina’s global expertise, introduce new products and explore new channels to serve its customers effectively and efficiently.
Ice Cream and Frozen Desserts
The segment reported a revenue of Rs. 5.22 billion, reflecting a growth of 42% versus last year. By investing in seasonal activities and festivities, introducing new products, consumer-focused campaigns and employing e-commerce channels to enhance product availability, the Company achieved its highest-ever volumes in the second half of the year.
Financial Performance
The financial performance of the company for the year ended December 31, 2021, is summarized below:
| Full Year ended | |||
| Dec 31, 2021 | |||
| (Rs. in million) | 2021 | 2020 | Variation |
| Net Sales | 52,094 | 44,155 | 18% |
| Operating Profit | 3,442 | 1,507 | 128% |
| % of sales | 6.6% | 3.4% | 320 bps |
| Profit / (Loss) after tax | 1,804 | 177 | |
| % of sales | 3.5% | 0.4% | 310 bps |
| Earnings / (Loss) per share (Rs.) | 2.35 | 0.23 | |
Future Outlook
The business environment remains challenging amidst the resurgence of COVID–19 cases. Supply chain disruptions and dynamic consumer needs may affect the business’s ability to serve consumers effectively. However, the Company will continue to remain agile and drive efficiencies across the value chain to deliver growth. The business will also continue to invest in brand equity and expand its profit accretive portfolio to leverage margins.
At FCEPL, our purpose is to transform the health and well-being of Pakistanis now and for generations to come. Thus, the Company will expand upon its partnership with the Pakistan Dairy Association (PDA) and the Government to educate the consumers on the potentially hazardous effects of loose milk, and positive features of safe, packaged milk.
As dairy farmers are the backbone of the Company, FCEPL’s Dairy Development Program will ensure inclusive growth and increased profitability for the farmers. The business will continue to train the farmers with best practices for improved productivity, yield and profits, thereby developing and uplifting the communities we operate in.
FCEPL remains committed to the highest standards of hygiene, food safety and sustainability, and will continue to leverage its global expertise and experience of 150+ years to provide safe, affordable, and nourishing dairy products to millions of Pakistanis, every day.
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Systems Limited and IBA Karachi sign an mou for collaborative technical advancement
The Institute of Business Administration (IBA), Karachi and Pakistan’s leading IT organization, Systems Limited, have partnered to provide enhanced technological knowledge to the IBA students.
Systems Ltd was represented by Mr. Asif Peer, Managing Director and CEO; Ms. Naureen Anwar, SVP – Special Projects; and Mr. Adeel Ahmed Chatha, Manager – Industrial and Academia Linkages.
Mr. Asif Peer, Managing Director and CEO Systems Ltd and Executive Director, IBA Karachi, Dr. S Akbar Zaidi, signed a joint MoU to develop sustainable arrangements between both parties.
Under this collaboration, Systems Ltd will offer trainings, certifications, and workshops to enhance the technical knowledge of the students, the organization will also provide curriculum support to the IBA, to make it more industry relevant. Additionally, Systems Ltd. has generously agreed to support 2 final-year, IBA students from the Computer Science discipline, in their pursuit of higher education.
On this momentous occasion, Mr. Peer appreciated IBA’s performance and contribution towards the educational landscape of the country. He further added that through this collaboration, Systems Ltd. hopes to introduce more technologically sound talent in the field of information technology.
Dr. Zaidi appreciated Systems Ltd for supporting IBA in its mission to impart world-class education to the Pakistani youth.
Through this partnership, both the parties aim to contribute towards developing a national talent pool in the fields of technology and computer science.
The IBA supports approximately 30% of its student body every year to ensure inclusivity through its financial assistance program.
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Burden of harsh IMF conditions should be distributed fairly: Mian Zahid Hussain
Chairman of National Business Group Pakistan, President Pakistan Businessmen and Intellectuals Forum, and All Karachi Industrial Alliance, and former provincial minister Mian Zahid Hussain on Wednesday said the government should control ever-increasing expenses and spend according to its resources to save the country from a catastrophe.
The burden of the IMF’s strict conditions must be distributed to all sections of society according to their income so that masses accept this bitter pill and do not become restless, he said.
Mian Zahid Hussain said that the IMF’s strict conditions are aimed at the salaried class and poor which is against the national interest as it will push instability.
Talking to the business community, the veteran business leader said that the government has targeted the poor in the telecom tax sparing the rich.
Poor consumers using prepaid connections will have to pay more for the service while users of postpaid connections, who make up only a few percent, are not targeted because they will opt for tax adjustments.
He said that the aim of fiscal and monetary policy should be microeconomic stability so that the country’s economy could be built on sustainable foundations.
Every possible step has to be taken to increase the tax net and instead of increasing the burden on the existing taxpayers, he said, adding that the government has data of all industrial and commercial consumers of electricity and gas but they are not being brought into the tax net which is astonishing.
Mian Zahid Hussain furthered that according to the available data, the government’s expenditure in 2019 was 70% more than its revenue which is a record among all major developing countries.
Pakistan was followed by Egypt, Lebanon, Sri Lanka and Ghana whose debts have exceeded 40% of their income, while the debts of the remaining 30 countries have never reached even 30% of their income.
In 2019, Pakistan’s debt was seven times the government’s revenue, and the government was spending about fifty percent of its total revenue on interest payments.
In order to bridge the gap between income and expenditure, the necessary expenses for repaying loans are being slashed, which is adversely affecting health, education, infrastructure and other important sectors, he said.
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Packages limited is awarded platinum approved employer status by ACCA global
Association of Chartered Certificated Accountants (ACCA) Pakistan has awarded Packages Limited with Platinum Status for Approved Employer. The “ACCA Approved Employer Programme” recognizes employers’ high standards of staff training and development.”
This recognition by the global body for professional accountants acknowledges Packages Limited’s high standards of staff training and development and the organization’s commitment to attracting and developing future-ready talent and creating opportunities for the country’s youth.
Packages Limited will now get exclusive access to the ACCA’s global network of leading employers and professionals, world-class employer resources, and award-winning thought leadership as part of the recognition.
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British Asian Trust appoints Mian Mohammad Mansha as chair of advisory council in Pakistan
The British Asian Trust announced the appointment of Mian Mohammad Mansha as the Chair of their Advisory Council in Pakistan. He joins Sayed Zulfikar Bukhari (Chairman of National Tourism Coordination Board), Amin Lakhani (Managing Director at Lakson Group), and Tariq Rangoonwala (Chairman of the Board, Rangoonwala Group of Companies, Pakistan) on the Pakistan Advisory Council.
Mian Mohammad Mansha is a leading businessman of Pakistan and Chairman of the Nishat Group of Companies, which holds major business interests in textile, cement, financial services, power generation, real estate and hospitality, dairy and agriculture, paper products, retail commerce, aviation and automotive sectors. He is a committed philanthropist and provides support to causes in healthcare, women’s education, sustainable tourism, sports, poverty alleviation and social uplift. Mr. Mansha was awarded Pakistan’s prestigious civil award, the Sitara-e-Imtiaz (Star of Excellence) in 2004 in recognition of his contributions to industrial development. He is currently Chairman MCB Bank Limited and a Board member of the Atlantic Council, USA.
Mian Mohammad Mansha, founder and Chairman of Nishat Group of Companies and Chairman of MCB Bank Limited said: “I am honoured and excited to have been appointed Chair of the British Asian Trust’s Pakistan Advisory Council. I have been enormously impressed with the work of the British Asian Trust in Pakistan, especially the ground-breaking mental health programme, and their focus on supporting thousands of women to secure jobs. I look forward to supporting the organisation to be even more impactful.”
Richard Hawkes, Chief Executive of the British Asian Trust said: “We are delighted that Mian Mansha has joined as Chair of our Pakistan Advisory Council. We hope that his leadership will contribute greatly to our work in Pakistan. It is through the guidance of our Advisory Councils that we do all we can to be impactful, cost-effective and accountable in all our endeavours.”
The British Asian Trust is an International Development organisation that wants to see a South Asia that is prospering and fair for all. The work supports large-scale, sustainable solutions that enable poor and marginalised people to achieve their full potential. It was founded by His Royal Highness, The Prince of Wales and a group of visionary British Asians to deliver effective programmes to help tackle poverty and inequality in South Asia and to date has positively impacted the lives of almost 6.6 million people.
The British Asian Trust has been supporting programmes in Pakistan for over a decade. Over the past three years its Mental Health programme has reached nearly 16 million people with mental health messaging through mass media campaigns on TV and social media and provided more than 25,000 people with quality mental health care and support. Through the British Asian Trust’s Livelihoods programme, more than 10,000 women and young people successfully improved their livelihoods and income through employment or setting up their own enterprises. With support from UK Aid Match, and other donors, the programme will continue to scale up its impact over the next three years.
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Faysal Bank, Nutshell Communications reach strategic communications partnership
Faysal Bank Limited appoints Faysal Bank Limited enters into a strategic communications partnership with Nutshell Communications (Private) Limited. Nutshell Communications will provide external stakeholder engagement, corporate branding, and strategic communication services to Faysal Bank Limited.
An agreement in this regard was signed by both parties recently at Faysal Bank Limited head office by Raheel Ijaz, Chief Operating Officer, Faysal Bank, and Rabia Ahmed, Director & Chief Operating Officer, Nutshell Communications. The signing was witnessed by Yousaf Hussain, President & CEO Faysal Bank Limited, and senior officials from both organizations.
Faysal Bank Limited was incorporated in Pakistan on October 3, 1994, as a Public Limited Company under the Companies Ordinance, 1984. The Bank’s shares are listed on Pakistan Stock Exchange. Faysal Bank’s footprint now spreads over more than 200 cities with over 606 (including 595 Islamic) branches. Faysal Bank is nearing the completion of its landmark conversion to an Islamic Bank, from a conventional bank. This historic feat is being regarded as the world’s largest conversion, whereby a large running bank has undergone such a massive transformation.
Nutshell Communications (Private) Ltd., a Nutshell Group company, is a full spectrum communications firm, providing strategic engagement and communication solutions to its clients and partners across Pakistan.
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Jazz’s Cloud platform ‘Garaj’ to help businesses realize their full potential
Aimed at facilitating enterprises to leverage technology and unleash their full business potential, Jazz has launched ‘Garaj’, a state-of-the-art cloud platform. The onshore cloud is a significant step forward in ensuring that data created in Pakistan is hosted within the country as well as a key enabler of Jazz’s digital operator strategy.
With an investment of US$ 6 million planned in the next few years, ‘Garaj’ will enable businesses, public entities, academic institutions as well as local startups to further optimize their operational efficiency, capacity and accelerate their growth ambitions. The cloud services will be delivered from Jazz’s data center in Lahore and Jazz Digital Park, Pakistan’s largest TIA Rated-3 certified data center established with an investment of US$ 8 million.
“Business innovation, today, requires powerful technology solutions,” said Syed Ali Naseer, Chief Business Officer, Jazz. “Garaj will enable a secure and affordable cloud experience as more businesses and government seek digitalization to capture efficiencies and reinvent their customer experience. Cloud solutions will allow for much needed cost and operational efficiencies, while delivering security and improving the ease of doing work.”
Traditional IT infrastructures require in-house server hardware, software licenses, integration capabilities, and on ground employee support. Through ‘Garaj’, companies can forego these additional expenses, and utilize the pay-as-you-grow pricing model, customizing and scaling plans according to their growing needs.
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IBA Karachi and Oraan Tech will make education more accessible
The IBA Karachi and Oraan Tech Private Limited signed a Memorandum of Understanding (MoU) to help IBA students finance their education fee through Oraan Committees. CEO Oraan, Ms. Halima Iqbal and Executive Director IBA, Dr. S Akbar Zaidi, signed the MoU on behalf of their respective institutions. Representative from Oraan included, Creative Lead, Ms. Naushaba Brohi, while the IBA was represented by Director Corporate Relations and Resource Mobilization, Ms. Malahat Awan; Director Finance, Mr. Moeid Sultan; and Head of Sports and Community Engagement, Mr. Haris Siddiqui.
Oraan is a financial technology startup that is working to make money simple and accessible by helping customers save, invest and finance through their flagship product Oraan Committees.
“Since our inception, we have seen our members identify educational fee payment and financing as one of the primary use-cases for our members to take part in Oraan Committees. We are glad to be taking another step forward in solving this problem for students and their families by making access to education financing more convenient through this partnership with IBA”, said Ms. Iqbal speaking on the partnership.
Dr. S Akbar Zaidi thanked Oraan for partnering with the IBA to offer an avenue that can balance the educational landscape of Pakistan. The IBA supports approximately 30% of its student body every year to ensure inclusivity through its financial assistance program.
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State-owned gas companies becoming a threat to the economy
Chairman of National Business Group Pakistan, President Pakistan Businessmen and Intellectuals Forum, and All Karachi Industrial Alliance, and former provincial minister Mian Zahid Hussain on Monday said state-run gas companies are becoming a threat to the economy due to increasing losses.
Professional management should be allowed to work or these utilities should be sold immediately to avoid further losses, which have jumped to one percent of the GDP, he said.
Mian Zahid Hussain said that realizing the situation, necessary steps should be taken as the gas companies have become white elephants for the economy due to increased political interference.
Talking to the business community, the veteran business leader said that the losses of Sui companies include gas theft, leakage and weak recovery while masses have to pay the price for the mismanagement of the gas companies.
The losses of the two state-owned gas companies have reached Rs654 billion and are constantly increasing.
The government is also facing huge losses and criticism due to mismanagement in the import, distribution, and sale of LNG, therefore the role of the private sector should be increased in gas imports so that the people and the business community can get cheap gas and the economy can grow.
Mian Zahid Hussain further said that the government should make reforms in the gas sector, but in the current situation, raising the price is considered reform which is wrong.
The government has assured the IMF about a further increase in gas prices after which almost everything will become more expensive and the condition of the people will become even thinner.
If gas is also made more expensive for the export sector, it will affect the exports which should be considered, he demanded.
Further liberalization of OGRA is on the cards which will enable the regulator to take decisions without pressure.
There are some elements who take salaries from the government but serve the interests of mafia and such dishonest officials should be removed before drastic moves.
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NBP opens N-Pay Digital Payment System
NBP Funds is proud to be the first Asset management company to launch N-Pay Digital Payment System for all business. N-Pay is an online payment system for corporate, institutional, and SME clients. This online payment system is directly linked to a NBP Funds mutual fund account and enables businesses to make online payments securely and efficiently via their mutual fund account through 1 link payment system in just a few clicks, while earning daily returns for their businesses. Any business linked with N-Pay can now easily make:
• Salary payments
• Vendor payments
• Utility bill payments
• Tax payments
• Other online payments
N-Pay leverages 1LINK payment switch to make online payments to any bank account, billing company or tax collecting entity in Pakistan. The payments are executed securely and efficiently on a real-time basis.
NBP Funds is managing over Rs. 18,100 crores of investors’ savings as of December 31, 2021 and has been awarded the highest achievable investment management rating of AM1 by PACRA.
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Ambassador of Bulgaria visits KP-BOIT and assures for trade promotion
Honorable Ambassador of Bulgaria to Pakistan H.E Irena Gancheva along with Senator Faisal Saleem Rehman paid a visit to KP Board of Investment & Trade to discuss and explore mutual investment opportunities within the province of Khyber Pakhtunkhwa and identifying areas for cooperation in common interests of both countries.
Eng. Said Mehmood Vice Chairman KP-BOIT assured full cooperation for enhancing bilateral trade with Bulgaria and current opportunities for investment. He also assured that the KP-BOIT being the premier investment promotion and facilitation organization will facilitate Bulgarian investors at every step of the way.
Mr. Hassan Daud Butt (CEO) KP-BOIT gave briefing on opportunities & potential for cooperation in different sectors and highlighted areas of trade & investment in both countries. In response H.E Irena Gancheva added that Bulgaria has ideal location and is member of EU where KP can benefit.
Moreover the deliberation made by the Hon. Guest was a positive posture towards the investment friendly policies and projected trade openness with the border countries upon the completion of ongoing development of infrastructure and a cluster of economic zones and both agreed to further explore mechanism for mutual cooperation.
Moreover the visiting Ambassador showed interest in the policies of the government and highlighted that the Government of Khyber Pakhtunkhwa initiatives towards building infrastructure and the opportunities of both could be explored. Both sides decided to discuss further areas of mutual cooperation and mechanism to improve trade and business between the two countries.
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MCB Bank posts highest-ever profit before tax of Rs. 51.989 billion for the year 2021
The Board of Directors of MCB Bank Limited (MCB) in its meeting under the Chairmanship of Mian Mohammad Mansha, on February 10, 2022, reviewed the performance of the Bank and approved the financial statements for the year ended December 31, 2021. The Board of Directors has declared final cash dividend of Rs. 5.0 per share i.e. 50% bringing the total cash dividend for the year ended 2021 to 190%, continuing with its highest dividend per share trend in banking sector.
MCB’s Profit After Tax (PAT) for the year ended December 31, 2021, posted a growth of 6% to reach Rs. 30.81 billion; translating into Earning Per Share (EPS) of Rs. 26.00 compared to EPS of Rs. 24.50 reported in last year.
Average Policy rate registered a decline of 19% (166bps) from an average of 8.95% in last year to 7.29% in current year. However, on account of strategically aligned growth in average current deposits and a balanced mix of earning assets, net interest income of the Bank decreased by only 10%, from Rs. 71.33 billion to Rs. 63.99 billion.
Non-markup income registered a growth of 11% and aggregated to Rs. 20.1 billion against Rs. 18.1 billion in last year. Improved transactional volumes, surge in business activities, diversification of revenue streams through continuous enrichment of Bank’s product suite, investments towards digital transformation and an unrelenting focus on upholding the high service standards supplemented a growth of 14% in fee income whereas dividend and foreign exchange incomes increased by 86% & 48% respectively.
The Bank continues to prudently manage its operating expenses with a moderate increase of 8%, despite sustained inflationary pressures amid currency devaluation and rising commodity prices, higher compliance related regulatory charges, expansion in branch outreach and regular performance and merit adjustments of the Human Capital.
On the provision front, proactive monitoring and recovery efforts led to a net reversal of Rs. 910 million in specific provision maintained against non-performing loans (NPLs) while the general loss reserve of Rs. 4 billion created amid the uncertainty surrounding the COVID-19 outbreak was reversed, as the systematic risks surrounding the economic recovery have receded and the Bank has created specific provision against exposures that reflected signs of financial distress.
Persistent focus on maintaining a robust risk management framework encompassing structured assessment models, effective pre-disbursement evaluation tools and an array of post disbursement monitoring systems has enabled MCB to effectively manage its credit risk. The Non-performing loan (NPLs) base of the Bank recorded a decrease of Rs. 698 million and was reported at Rs. 50.49 billion.
The Bank has not taken FSV benefit in calculation of specific provision and carries an un-encumbered general provision reserve of Rs. 636 million. The coverage and infection ratios of the Bank were reported at 90.83% and 7.94% respectively.
On the financial position side, the total asset base of the Bank, on an unconsolidated basis, was reported at Rs. 1,970 billion (+12%). The gross advances of the Bank registered historic growth of Rs. 122 billion (+24%), above the industry growth, to close the year at Rs. 636 billion. The corporate lending book grew by Rs. 106 billion (31%) whereas the consumer loan portfolio garnered significant interest and increased by Rs. 9.5 billion (32%) on the back of significant activity in the construction and auto segments.
On the liabilities side, achieving growth in no-cost current account base remained a key strategic objective for the Bank. Thereby, non-remunerative deposits grew by 15.1% to close at Rs. 563 billion; improving their mix in the total deposits to 40% in absolute terms as at December 31, 2021. CASA mix was reported at 93% whereas the total deposits of the Bank grew by 9% to close out the year at Rs. 1,412 billion.
Return on Assets and Return on Equity reported at 1.65% and 19.11% respectively, whereas the book value per share was reported at Rs. 135.13.
During the year MCB attracted home remittance inflows of USD 3.527 billion to further consolidate its position as an active participant in SBP’s cause for improving flow of remittances into the country through banking channels. The inflow by MCB till Dec 31, 2021 under the Roshan Digital Account (RDA) initiative has stood at USD 216 million.
While complying with the regulatory capital requirements, the Bank’s total Capital Adequacy Ratio (CAR) is 17.01% against the requirement of 11.5% (including capital conservation buffer of 1.50% as reduced under the BPRD Circular Letter No. 12 of 2020). Quality of the capital is evident from Bank’s Common Equity Tier-1 (CET1) to total risk weighted assets ratio which comes to 15.08% against the requirement of 6%. Bank’s capitalization also resulted in a Leverage Ratio of 6.13% which is well above the regulatory limit of 3.0%. The Bank reported Liquidity Coverage Ratio (LCR) of 246.31% and Net Stable Funding Ratio (NSFR) of 155.00% against requirement of 100%.
The Bank’s exceptional performance has also been recognized by the globally coveted Finance Asia’s Country Awards wherein it has been declared as the “Best Bank in Pakistan” in 2021.
The Bank enjoys highest local credit ratings of AAA / A1+ categories for long term and short term respectively, based on PACRA notification dated June 23, 2021.
The Bank on consolidated basis is operating the 2nd largest network of more than 1,600 branches in Pakistan. The Bank remains one of the prime stocks traded in the Pakistani equity market with 2nd highest market capitalization in the industry.
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Mian Mohammad Mansha attends British Asian Trust’s annual reception & dinner with HRH the Prince of Wales
Mian Mohammad Mansha, Chairman Nishat Group, attended the British Asian Trust’s Annual Reception & Dinner with His Royal Highness The Prince of Wales. The British Asian Trust’s Annual Reception and Dinner at the British Museum was held to celebrate the organisation’s many accomplishments over the past year and help raise funds to support COVID-19 recovery across South Asia. Mian Mansha was recently appointed by the British Asian Trust as the Chair of their Advisory Council in Pakistan.
Other notable guests at the event included The Rt Hon Rishi Sunak MP, Chancellor of the Exchequer, The Rt Hon Priti Patel, Home Secretary, The Rt Hon Sajid Javid MP, Secretary of State for Health and Social Care and Adar and Natasha Poonawalla, heads of the Serum Institute of India and long-term supporters of the Trust.
On the occasion, Mian Mohammad Mansha said, “I am honoured to have met His Royal Highness, The Prince of Wales and Her Royal Highness, The Duchess of Cornwall at the British Asian Trust’s Annual Reception and Dinner at the British Museum. The British Asian Trust’s fundraising efforts to tackle poverty, inequality and injustice in South Asian countries such as Pakistan is highly commendable and quite a feat in the current COVID-19 environment. I am grateful to the Royal Couple and the British Asian Trust for their kind hospitality and generosity. Having just learnt of his health, I also take this opportunity to wish His Royal Highness, The Prince of Wales a swift recovery from COVID-19″.
The British Asian Trust was founded in 2007 by HRH The Prince of Wales and British Asian business leaders to tackle widespread poverty, inequality and injustice in Pakistan, India, Bangladesh and Sri Lanka. Over the last year, the British Asian Trust raised over £10 million for its post-COVID recovery efforts. It secured £2 million of matched funding from the UK government for the Trust’s Women’s Economic Empowerment programme, which will enable nearly 10,000 Pakistani women to find a job or start a business in a post-COVID world.
Mr. Mansha is a committed philanthropist and provides support to a number of causes in healthcare, women’s education, sustainable tourism, sports, poverty alleviation and social uplift. He has provided financial assistance and support to the Punjab Institute of Cardiology, Children’s Hospital & The Institute of Child Health in Lahore and Saleem Memorial Trust Hospital amongst others on a personal as well as corporate level.
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Pakistan takes the lead with 4 students topping ACCA exams worldwide
The Association of Chartered Certified Accountants (ACCA), on Tuesday 18th January 2022, announced the results of students who sat exams in the December 2021 session. Four Pakistani students scored the highest marks globally outperforming exam sitters worldwide.
Arham Ali, an ACCA student from Lahore, scored the highest marks in Maintaining Financial Records exam. Similarly, Usama Maharir Muhammad from Lahore topped the Managing Costs & Finance exam. Komal Bawani, a young girl from Karachi achieved a perfect score in ACCA’s Management Function while Muhammad Umair Jan, an ACCA student from Peshawar, became the global topper in the Recording Financial Transactions exam.
These global prizewinners were commended by Assad Hameed Khan, Head of ACCA Pakistan. He said, ‘It’s encouraging to see the country’s youth putting in the hard work to outperform their peers around the world. This further enables us in establishing Pakistan as a global hub for world-class talent in accounting and finance.’
The ACCA degree is widely regarded as the gold standard in accountancy, with recognition and presence in over 178 countries worldwide, providing access to highly respected and rewarding career opportunities.