Emirates to offer daily flights to Toronto
Following the breakthrough expanded air transport agreement between the United Arab Emirates and Canada, Emirates is stepping up its frequency with two additional flights per week between Dubai and Toronto. From 20 April, daily flights will operate on the busy route to serve huge demand for passenger services.
The move comes as bilateral relations between the United Arab Emirates and Canada have enhanced significantly, with both countries set to reap vast economic benefits across a multitude of sectors and supply chains.
Hailing the development as a crucial one for the airline, Adnan Kazim, Emirates’ Chief Commercial Officer, said: Emirates welcomes the expansion of the air services agreement between the UAE and Canada and we would firstly like to thank all stakeholders and authorities who were involved in this pivotal agreement that will provide a boost to the aviation and tourism sectors in both countries. We have been serving customers between Toronto and Dubai since 2007, and although the double-decker A380 aircraft has been operating the route since 2009, demand arising from leisure and corporate travellers, diaspora and students has consistently outstripped the allocated capacity. This enhanced agreement represents a turning point for us in our strategy to serve our customers better, by offering more choice and flexibility, and meet pent up demand across our growing network.
“Business ties between Canada and the UAE have grown significantly over the years and the expanded air services will help to further nurture business and trade. The expansion of air services is also an affirmation of the growing importance of the UAE to Canada’s global connectivity, which we can support through our global network of more than 130 destinations. Together with the relevant authorities, our codeshare and loyalty programme partner Air Canada, and our valued industry partners, we look forward to playing a role in facilitating more tourism and trade opportunities between the two nations,” continued Kazim.
Emirates operates the flagship A380 aircraft on the Dubai-Toronto route, allowing 491 passengers across Economy Class, Business Class and First Class on each flight. With the two additional flights per week, Emirates will offer close to 2,000 additional seats to serve the busy route, representing a 40% increase in capacity between its hub city of Dubai and the Canadian point. The Dubai-Toronto route is highly popular amongst customers from India, UAE, Bangladesh, Iran, Pakistan, Saudi Arabia and Sri Lanka while the same countries represent top destinations for travellers from Toronto.
Tickets can be booked by visiting www.emirates.com or through preferred travel agents.
Last year, Emirates activated a codeshare partnership with Air Canada, allowing customers to enjoy seamless connectivity when flying to domestic points within Canada via Toronto. Top connections for Emirates customers beyond Toronto include Ottawa, Winnipeg, Halifax, Montreal, Calgary and Edmonton. Air Canada’s customers can travel to destinations across Asia, Africa and the Middle East, in Emirates’ expansive network of over 130 destinations via its hub in Dubai.
Leading consortium expresses interest for Rs. 12 billion investment in Silkbank
Silkbank Limited, one of the key players in the market in Consumer Banking category, has received an Expression of Interest from M/s. Pakistan Housing Finance Company (PHFC), a subsidiary of M/s. Lake City Limited for the injection of equity upto PKR 12,000,000,000/- (Pak Rupees Twelve Billion) as (“Proposed Investment”) subject to all regulatory requirements and financial due diligence.
PHFC is leading a consortium of like-minded investor group, supported and backed by the well-renowned and experienced management of M/s. Burj Capital, having requisite experience in setting up and successfully managing Islamic and conventional banks in Pakistan.
PHFC has also informed the Bank that in recognition of their standing in the business community and their intent of giving the management role to banking professionals of standing, M/s. Arif Habib Group is also willing to participate in a consortium as a minority stakeholder.
In this regard, the Board of Directors of Silkbank has granted its “In-principle approval” to formally pursue the Potential Investment.
The Proposed Investments shall be subject to the approval of the Board, shareholders, Securities and Exchange Commission of Pakistan, and State Bank of Pakistan and appropriate disclosures will be made in accordance with applicable laws, as the matter progresses.
It is expected that the investment will provide a signification boost to Silkbank’s financial position and will enable Bank to further expand its operations by investment into its flagship Retail and Consumer Portfolios which continue to be amongst the top performing businesses in the industry. Bank’s Consumer Division, with Credit Cards and Personal Loan products (Personal Installment Loan & Ready Line) have registered phenomenal growth in recent years which is a testament of the customer confidence reposed in the Bank.
PMI’s Top Boss, concerned over recent excise hike
Mohammad Zeeshan, CFO, Philip Morris (Pakistan) Limited addresses a media iftar in Karachi
Sales of illicit cigarettes have gone up “massively” after multiple increases in the federal excise duty (FED) in recent months, said Philip Morris Pakistan Ltd chief financial officer Muhammad Zeeshan.
Talking to a group of journalists, the representative of one of the two largest cigarette sellers in Pakistan said the illegal trade of sticks was hurting the documented sector and denting the government’s tax revenue.
“Whenever the tax on legal cigarettes increases, the sale of illegal cigarettes also rises,” he said.
The government has increased the FED three times in the current fiscal year. It increased by 25 per cent in June and August and by 150pc in February. With the latest increase, the excise duty on cigarettes has gone up to 200pc.
According to Mr Zeeshan, the impact of the FED increase is setting in on the legal cigarette industry. Numbers for the January-March quarter show the sale of legal cigarettes went down by approxiamtely 50pc as the increase in the excise duty has benefitted the undocumented segment of the tobacco sector.
The market share of illegal cigarettes was between 35pc and 38pc before the excise rate hike. It went upto 45pc within one month, he said. “If the government does not take appropriate measures, the share of illegal cigarettes may reach approximately 50pc soon,” he said.
Cigarette Retailers Demand Reversal of FED
The All-Pakistan Central Union Pan-Cigarette Beverage Retailers has called the extraordinary increase in the Federal Excise Duty rate on cigarettes a threat to the survival of pan-cigarette retailers.
The retailers have requested Prime Minister Shehbaz Sharif to take notice of the matter and find a solution to the serious effects on retailers due to the high cost of legal cigarettes.
In a letter sent to Prime Minister Shehbaz Sharif, the All Pakistan Central Union Pan-Cigarette Beverage Retailers highlighted the negative impact of the extraordinary increase in the federal excise duty on legal cigarettes on pan-cigarette retailers.
The union president, Haji Muhammad Mubeen Yusuf Butt, informed Prime Minister Shehbaz Sharif about the difficulties faced by retailers due to the increase in legal cigarette prices after the FED hike.
The letter stated that on February 15, taxes of Rs 60 billion were imposed on the cigarette industry through the mini-budget, and the tax rate on cigarettes was increased from 200 percent to 400 percent. The move doubled the price of cigarettes, but consumers did not accept the increase.
It has been observed that the trend of smoking has not declined. However, due to inflation and a reduction in purchasing power, consumers are increasingly attracted to cheap illegal cigarettes.
Haji Muhammad Mubeen Yusuf Butt said that after the increase in FED, the sales of big brands are decreasing, making it impossible to meet the tax collection targets from the cigarette industry.
The letter further stated that more than 7 lakh retailers selling pan-cigarettes across the country have faced a crisis due to the extraordinary increase in federal excise duty on cigarettes, which is likely to affect the livelihood of 5 lakh people.
The increase in federal excise duty has almost doubled the price of legal cigarettes, causing consumers to switch to cheaper cigarettes, which are mostly illegal due to tax evasion, the letter stated.
This situation is difficult for retailers who sell illegal cigarettes to maintain their revenue. This makes the retailers guilty of breaking the law.
The All Pakistan Central Union Pan-Cigarette Beverage Retailers has appealed to Prime Minister Shehbaz Sharif to take immediate notice of this situation and convene a meeting of stakeholders. This will help ensure that in this era of severe inflation, the stoves of 7 lakh retailers’ homes are not cold, and their families can be saved from possible starvation.
Political row pushing economy down: 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 April 12 said the unending struggle of politicians has engulfed the entire country.
Not a single important institution has been spared from this conflict which is bringing the country down, he said.
Mian Zahid Hussain said that the whole country had become a battlefield and we have become a laughing stock in the comity of nations.
Talking to the business community, the veteran business leader said that in these circumstances, the agenda of economic reforms in the country had been put on the back burner and it has become impossible to improve the conditions and run the economy.
According to the IMF, Pakistan’s growth rate is expected to be only half percent this year and if the political conflict continues, the problems of the people will increase further, and unemployment and inflation will touch new heights, he said.
The business leader said that along with the political war for early elections in Punjab and KP, a legal war has also started between the government, the opposition and the judiciary, which has disturbed the people and has scared the business community.
The tendency to settle political issues in an apolitical manner has widened the gulf between key officials and key institutions, further weakening democracy and jeopardizing the credibility of the entire system.
Mian Zahid Hussain said that in these circumstances, the people are constantly getting the message that some politicians want to bankrupt the country and that their disputes are only for power.
Some failed politicians care more about their own interests than the problems of the country and masses and they have put the integrity of the country at stake.
Mian Zahid Hussain said that inflation is increasing continuously. Crisis after crisis is frustrating the masses and the cost of food, beverages and transportation has increased by forty-five percent, while the entire country is affected by a ban on imports.
People’s purchasing power has eroded, due to which 89 percent of people have stopped eating and drinking outside the home because of which the hotels restaurants and fast food businesses are collapsing.
Many small businesses are unable to pay their employees’ salaries, their electricity and gas bills and rents, and their employees are losing their jobs.
Hotels, restaurants and most fast food brands use a lot of imported ingredients in their products, which are not available due to the import ban while increased sales tax is also damaging this sector.
Mian Zahid Hussain further said that on the one hand, the price of electricity and gas and taxes are increasing, on the other hand, the value of the rupee is decreasing on a daily basis, which is affecting the entire country.
UBL and AKS iQ to implement advanced anti-money laundering solution
United Bank Limited (UBL) has partnered with AKS iQ, a leading Reg Tech company, to implement an advanced trade-based anti-money laundering (TBML) solution in line with the Bank’s commitment to innovation and digitization.
This high-tech solution will enable UBL to execute import and export transactions in a highly automated environment while conducting Anti-Money Laundering (AML) checks with greater flexibility, mitigate operational and compliance issues and facilitate data-driven decision-making across key departments, improving service standards, customer experience and reducing risk levels.
The partnership agreement was signed at UBL’s Head Office in Karachi by Mr. Shazad G. Dada, President & CEO, UBL and Mr. Yahya Ghaznavi, CEO, AKS iQ. Senior executives from both companies, including Mr. Sajid Hussain, Group Executive – Operations, Mr. Irfan Farooq Memon, Group Executive – Compliance, Mr. Muhammad Faisal Anwar, CIO, from UBL, and Mr. Omer Manya, CDO and Dr. Asim Imdad, CIO from AKS iQ, were also present at the signing ceremony.
At the event, Mr. Shazad G. Dada, President & CEO UBL said “As Pakistan’s most progressive and innovative bank, UBL is committed to implementing state-of-the-art technology systems to enhance customer experience and improve operations. This key partnership will enable the Bank to enhance the management of its existing risk portfolio, mitigate operational and compliance issues and facilitate data-driven decision-making across key departments.”
Mr. Yahya Ghaznavi, CEO of AKS iQ, shared his enthusiasm for the collaboration, saying, “We are proud to partner with UBL, a bank committed to innovation and automation. Our fully automated, AI-enabled trade-based AML solution will enhance efficiency and help achieve a paperless environment, contributing to a safer and sustainable financial ecosystem in the country. This partnership underscores AKS iQ’s dedication to offering cutting-edge trade automation and compliance solutions that enable financial institutions to efficiently navigate the evolving operational complexities and regulatory landscape.”
Lack of confidence in business community growing: 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 April 10 said the continuous decline in the confidence of businessmen, industrialists and investors is alarming.
The business community is troubled by unending economic problems, businesses are closing down and people are losing their jobs, he said.
Mian Zahid Hussain said that for the first time in the country’s history, the situation is rapidly deteriorating due to the simultaneous political, economic and constitutional crisis.
Talking to the business community, the veteran business leader said that street crimes are increasing and insecurity in the business community is continuously increasing which is causing the flight of capital and exodus of industries from the country.
Many business people believe that the country is not moving in the right direction and that things are getting worse instead of better which is detrimental to them, he remarked.
Mian Zahid Hussain said that the business community is also worried due to the rising inflation because the majority of the country’s population is spending a large part of their income on food and their purchasing power has eroded therefore, they are unable to buy other things.
As a result, many businesses have closed down while others continue to shrink. At the same time, the value of the local currency is also continuously depreciating while the bank markup, electricity and fuel prices are continuously increasing, which has made business more difficult and worsened the situation for the people.
The business leader added that delay in the IMF loan and the early election controversy have created uncertainty and fears among the public and the business community, which is affecting their confidence.
The public and the business community have been hearing nothing but comforting statements about the IMF loan for months, adding to their anxiety.
They believe that the disputes between politicians and institutions in the country have nothing to do with the country’s development, constitution and law, but the whole effort is to achieve their own political interests, for which the integrity of the country is put at stake.
LCCI and ACCA collaborate to boost SMEs in Pakistan
Lahore Chamber of Commerce & Industry (LCCI) and ACCA (the Association of Chartered Certified Accountants) signed a Memorandum of Understanding (MoU) with a shared goal of advancing financial literacy among small and medium-sized enterprises (SMEs).
The MoU was signed by President LCCI, Kashif Anwar and ACCA’s Head of Pakistan, Assad Hameed Khan. ACCA President, Joseph Owolabi, and senior management of both the organisations were also present at the signing ceremony.
The agreement sets out to raise awareness, build capacity, and enable knowledge exchange among SME professionals and entrepreneurs. Bothorganisationswill support initiatives to enhance financial literacy and help build a robust tax culture.
At the signing ceremony, LCCI President, Kashif Anwar, said:‘I would like to congratulate not only LCCI and ACCA, but also all stakeholders, the business community, and member organisations on the signing of this agreement. It will strengthen the existing collaboration between LCCI and ACCA and support the LCCI member organisations with their capacity buildingneeds, particularly around taxation and financial acumen.’
ACCA president, Joseph Owolabi, commented: ‘We’re delighted to formalise our partnership with LCCI and support capacity building inPakistan’s SME sector. We’re committed to providing SMEs with the necessary tools and skills to navigate the complex financial landscape and make informed decisions underpinned by effective governanceand driving sustainable growth. I’m certain the cooperation between ACCA and LCCI will bring positive change.’
Assad Hameed Khan, Head of ACCA Pakistan, added:‘This partnership has the potential to serve as a platform for SMEs to upskill and bolster their vital contribution to Pakistan’s economy. We believe this collaboration will extend more opportunities for SMEs, benefitingbusinesses, individuals and the entire economy.’
MMBL and MateSol unite to improve MSMEs Cash flow through state-of-the-art Invoice Financing
Pakistan’s leading microfinance institution, Mobilink Microfinance Bank Ltd. (MMBL) and MateSol, a blockchain-based invoice verification platform with a global footprint, have signed a Memorandum of Understanding (MoU) to offer better access to invoice financing for Micro Small and Medium-sized Enterprises (SMEs). As per the partnership agreement, MMBL will utilize MateSol’s innovative blockchain-based invoice management system ‘InvoiceMate’ to finance invoices, offering MSMEs swift, hassle-free, secure, and transparent invoice financing solutions. With Specialization in Web 3.0 and Enterprise Blockchain, MateSol offers solutions for different verticals of the industry. InvoiceMate being the world’s first-ever invoice management system on the blockchain, is the flagship product of MateSol.
MMBL is part of the VEON group, a global digital operator that provides converged connectivity and online services across seven countries. As part of its digital operator strategy, VEON is transforming people’s lives by creating opportunities for increased digital inclusion and by driving economic growth across countries that are home to more than 8% of the world’s population.
Under the subject partnership, MMBL’s MSME customers will experience increased operational efficiency and reduced paperwork, resulting in a more streamlined and agile financing process. The Bank’s commitment to innovation and customer-centricity is reflected in its adoption of cutting-edge financing solutions, which will enable MSMEs to thrive in a rapidly evolving business landscape.
Speaking on the occasion, Sardar Mohammad Abubakr, Chief Operating Officer (COO) MMBL said: “Our collaboration with MateSol is set to revolutionize the financial landscape for MSMEs through digitized processes. We understand the challenges faced by these enterprises in obtaining financing, especially in today’s uncertain economic climate. By leveraging our combined expertise, we aim to facilitate the growth and success of these businesses and ultimately contribute to the development of the wider economy through digital financial inclusion.”
Also sharing his thoughts, Mr. Muhammad Salman Anjum, CEO Matesol said: “We are excited to announce Pakistan’s first invoice financing marketplace with the aim to improve cash flows for MSMEs and drive financial inclusion. Aided by blockchain and AI, we provide smart invoice financing that is quick, secure, and viable for customers and banks, and with our collaboration with MMBL, this will be taken a step ahead.”
As an industry leader, MMBL remains committed to bridging the gap in financial inclusion and enabling businesses of all magnitudes to access requisite financial resources to thrive. The bank’s tailored financing solutions are designed to cater to the evolving banking needs of each business, thereby empowering MSMEs to attain their financial objectives and foster growth in their respective industries. MMBL remains focused on partnering with like-minded organizations to develop innovative solutions that support the expansion of MSMEs and foster financial inclusion across the country.
Another FIRST by TPL Insurance – Giving Customers More Control Over Their Auto Insurance
TPL Insurance, the market leader in innovations underpinned by customer-centricity in the insurance segment, is proud to announce another first in the industry. The company has completed a pilot launch of a new auto insurance product, giving customers more control over their coverage options.
Unlike traditional comprehensive and deductible insurance options, which offer limited flexibility, TPL Insurance’s new product allows customers to select and pay for only the coverage options they want. This means that customers no longer have to pay for coverage they don’t need and can instead focus on the specific risks they face as car owners.
A used car customer may not want to purchase comprehensive insurance as they will have to pay depreciation on parts replacement. However, with TPL Insurance’s new product, customers can also choose to cover their vehicle against theft/ total loss/third party or additional zero depreciation cover in order to avoid paying depreciation for parts replacement. This gives customers greater flexibility and control over their insurance coverage.
The new product is available in conventional and takaful versions, ensuring customers have various options. The base rate for the new product starts at just 0.99%, with the ability to add on additional coverage options at an increased rate. This pricing philosophy ensures that customers only pay for the coverage they need rather than being forced to purchase a one-size-fits-all insurance policy.
“The launch of this new auto insurance product once again reaffirms TPL Insurance’s commitment to customer centricity and innovation,” said Mr Aminuddin, CEO of TPL Insurance. “This product is a testament that we understand our customers have unique insurance needs and financial limitations; this empowers them to customize their coverage for their specific requirements. It is a significant step towards making auto insurance easy and accessible for everyone in Pakistan.”
TPL Insurance has been the number one auto insurer in Pakistan for several years and is known for its fast claims settlement via its app, making it the fastest claim settlement insurance company in Pakistan. The company is committed to using technology to simplify and streamline the insurance process, and the new auto insurance product is another example of this commitment to action.
The pilot is being launched with a partner and a mass market launch is to follow, to make this innovative new auto insurance product available to as many customers as possible.