IBA Karachi organises IBA leaders connect, fostering thought leadership and collaborations
The Institute of Business Administration (IBA), Karachi held ‘IBA Leaders Connect’ at Movenpick Hotel, showcasing IBA’s dedication to nurturing a community of thought leaders and professionals committed to advancing higher education and empowering young individuals to pursue brighter futures.
The event commenced with an opening address by Dean, School of Mathematics and Computer Science, Dr. Shakeel Khoja, who was representing Executive Director, IBA Karachi, Dr. S Akbar Zaidi.
Director, Alumni Affairs, Resource Mobilization & Corporate Affairs, Malahat Awan, delivered a presentation highlighting IBA’s impact and opportunities for partnership. Additionally, IBA alumna and a National Talent Hunt Program scholar, Muskan Amjad, shared her inspirational journey with the audience.
The highlight of the event was the keynote address by Chairman, Dawood Hercules Corporation and Engro Corporation, Hussain Dawood. In his address, Mr. Dawood emphasized the importance of leveraging wisdom from religion to navigate life’s unique challenges, highlighting the need for individuals to approach obstacles with resilience and faith. He underscored the value of drawing upon spiritual insights to address personal and professional hurdles effectively.
The event also featured a dynamic Q&A session with Mr. Dawood, providing attendees with the opportunity for an insightful discussion.
The event was attended by more than 200 individuals. A few notable individuals included Ghias Khan, CEO Engro Corporation; Jahangir Piracha, CEO Engro Polymer and Chemicals; Farhan Essa, MD Essa Laboratories; Sabeen Rabbani, Member BOD Orange Tree Foundation; Zar Badshah, Head of Frontier Coverage – AKD Securities Ltd.; and Ruhail Muhammad, CEO Lucky Power, among many other representatives from leading organizations of the country.
Towards the end of the event, IBA acknowledged and recognized the contribution of the donors who have pledged to support IBA in creating an ecosystem that is comparable to the world’s elite higher education institutions. The recognition session included the intended support from Habib Bank Ltd., Orange Tree Foundation, Faysal Bank, Jaffer Family Foundation, and OGDCL, who have come together to support IBA through multiple initiatives that support its infrastructure development and nation building endeavors.
Raqami Islamic Digital Bank chooses Codebase Technologies to transform digital banking in Pakistan
Raqami Islamic Digital Bank has chosen Codebase Technologies to lead the launch of a new, cutting-edge, Shariah-compliant digital bank, based on the fintech’s proven track record of launching some of the MENA region’s most successful digital banks. Raqami Islamic Digital Bank will leverage Codebase Technologies’ Digibanc platform as its comprehensive technology stack, including core banking. This collaboration marks a pivotal step into a new era of digital banking, with Raqami Islamic Digital Bank being one of only five recipients of an in-principle approval for establishing a digital retail bank from the State Bank of Pakistan.
“We are thrilled for our strategic partnership with Raqami Islamic Digital Bank in pioneering the future of digital banking. Together, Codebase Technologies and Raqami Islamic Digital Bank aim to revolutionize the financial landscape, leveraging cutting-edge technologies to deliver innovative, secure, and seamless banking experiences for customers,” stated Raheel Iqbal, Managing Partner, Codebase Technologies.
Pakistan, a predominantly Muslim market, is experiencing rapid growth in digital banking, with an increasing number of consumers opting for online banking services. According to the State Bank of Pakistan, mobile and internet banking transactions surged by 57% in volume and 81% in value during the fiscal year 2022-23. Further statistics from the Annual Payment Systems Review for 2022-23 reported that internet banking users increased by 15.5% and mobile banking users rose by 30.2%, reaching 16.1 million Pakistanis.
Umair Aijaz, CEO of Raqami Islamic Digital Bank, highlighted the pressing need to support the financial health of Pakistan’s citizens, particularly in the face of inflation and rising commodity prices exacerbated by the COVID-19 pandemic. The partnership with Codebase Technologies positions Raqami Islamic Digital Bank to overcome challenges associated with legacy technology solutions and offer efficient, tailored, and seamless Shariah-compliant digital finance solutions to a broader audience.
The Digibanc platform gives Raqami Islamic Digital Bank a robust foundation for innovation, security, and seamless customer experiences, setting the stage for a transformative journey in the financial landscape. Together, the two companies plan to redefine the standards of modern banking with a focus on adaptability, efficiency, and technological excellence.
“We’re excited for Raqami Islamic Digital Bank to leverage our Digibanc platform as the comprehensive tech stack for their digital bank. Digibanc’s advanced features and modular architecture empower Raqami Islamic Digital Bank to deliver a secure, scalable, and customer-centric banking experience. This collaboration underscores our commitment to providing innovative solutions that drive digital transformation in the financial sector, ensuring Raqami Islamic Digital Bank is equipped with cutting-edge technology for sustained success,” commented Rizwan Warsi, Founder & CTO, Codebase Technologies.
Raqami Islamic Digital Bank aims to usher in a new standard for seamless digital services, offering a customer-centric experience built around consumers lifestyles. Leveraging Codebase Technologies’ Digibanc platform the bank aims to launch a range of financial services and embrace partnerships to empower customers with innovative and sustainable financial solutions.
Shahbaz Sharif should negociate with IMF immediately: 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, said February 23 that Mian Shahbaz Sharif should form a broad-based government after consultations.
After forming the government, the PM should direct immediate negotiation for a new loan from the IMF to save the country from bankruptcy, he said.
Mian Zahid Hussain said that various international and local institutions and experts are sounding the alarm about Pakistan, while some unsuccessful and frustrated political elements within the country are also engaged in efforts to damage the country, which is condemnable.
Speaking to the business community, the veteran business leader said that the burden of local and foreign debt on Pakistan is continuously increasing. The only short-term way to pay these debts is by taking new loans to repay old ones.
Borrowing has become necessary as domestic production, exports, remittances, and investment etc. cannot solve the problem of a shortage of funds.
Mian Zahid Hussain said that it is important for Pakistan to remain under the supervision of the IMF due to increasing debts, but the results of this will be more inflation, unemployment, a decline in public services, and cuts in development projects.
He said that the economic situation has made the lives of people difficult, while another IMF deal will add to the miseries of the masses.
The business leader said that in this critical situation, there has not been a notable reduction in government expenditure that was expected, nor has there been a significant increase in revenue.
There has been no progress towards direct taxes, efforts to reduce the budget deficit, or the negative effects of the current situation on the people.
He informed that presently Pakistan’s external debt has reached $124.6 billion and since 2011, domestic debt has increased six times to $146.4 billion. Gross external and domestic debt and liabilities increased from $145.7 billion to $222 billion.
According to a report, Pakistan’s per capita debt has increased from $823 to $1,123, while per capita GDP has decreased by 6 per cent due to the practice of borrowing and irresponsible spending.
Even in these circumstances, there is no urgency on the part of policymakers to increase agricultural and industrial production in the country, to make the youth skilled, or to stop the series of unnecessary projects.
The emphasis of the top authorities is on consumption, he said, adding that if the government wants to improve the social security, health, and education sectors and give some relief to the people, it has to make effective reforms and reduce the deficit while expanding the tax net.
An increase in the tax-to-DP ratio, a reduction in wasteful expenditure, and an improvement in the business environment to attract investment are necessary steps.
Mian Zahid Hussain further said that on the one hand, the country’s economic situation is very critical, and on the other hand, the founder of PTI wants to stop the IMF from forwarding a loan to Pakistan. He should condemn the events of May 9 and return to the national mainstream.
Vision Eye Care 35th camp brings sight and hope to 600 patients in Lahore, Karachi
Vision Eye Care, an international relief organiSation dedicated to the prevention of blindness with a footprint in 39 countries around the world, launched its 35th cataract surgery project, the ‘Vision Eye Camp,’ in Karachi and Lahore. Organised through sponsorships from the Parwaaz Financial Services Limited, CITI Group, Hanananum Foundation, Lotte Akhtar Beverages (Pvt) Limited, Haimont Group, and Galleria Design, the Camp aimed to treat 600 patients and perform 150 cataract surgeries.
The camp was organised with three distinguished ophthalmologists, Dr. Donghae Kim, Dr. Dongkwon Lim, and Dr. Mathew Akashi (Medical Director, UCH Lahore), along with four nurses and five volunteers, offering high-quality eye health services. Having embarked on blindness prevention projects in Pakistan since 2002, Vision Care has played a key role in facilitating patients facing vision impairments.
In Lahore, the organisation initiated public eye health services in 2006. By offering opportunities for sight restoration, Vision Care endeavors to not only conduct cataract surgeries for low-income groups but also implement eye screening programs and provide magnifiers to those who lack access to adequate medical care. Biannually, Vision Care holds the ‘Vision Eye Camp’ in Pakistan, conducting over 100 cataract surgeries each session.
Mr. Kim Kooboong, Chairman of the Korean Society in Pakistan, lauded the volunteer activities of Koreans, including the Vision Eye Camp, emphasizing their significant contribution to the friendship between both nations. He highlighted the added significance this year, as Pakistani companies actively participated in sponsoring the event.
Since its inception in 2002, Vision Eye Care has treated 24,429 patients and performed 3,277 cataract surgeries across seven regions, including Karachi and Lahore.
Aga Khan University’s NHSR places evidence-based medical guidelines at forefront of discourse
The 25th National Health Sciences Research Symposium (NHSRS), AKU’s flagship conference, brought together national and international experts to further the dialogue on evidence-based medical guidelines. Given the pressing need for contextually relevant treatment for diseases, this conference was both timely and relevant, building upon existing work done by AKU’s Centre for Clinical Best Practices (CCBP).
According to Dr Faisal Sultan, former special assistant to the prime minister on health, “it is a pleasure to be a part of this guideline development process that is being done in a structured and international validated manner with contextual appropriateness at its core. This is a great effort by AKU.”
Over 250 million people live in Pakistan, a country with a diverse range of cultures and ethnic groups. The lack of standardized clinical practices is a challenge, and our reliance on global guidelines and individual physician discretion hinders our ability to address Pakistan’s unique healthcare landscape. Crucial factors such as race, ethnicity, financial resources, and other social determinants of health have the potential to introduce biases into representative datasets, leading to variability in our clinical care. Therefore, this challenging landscape underscores the critical need for targeted interventions and screening measures which are lacking in international guideline sources.
To address this challenge, CCBP collaborated with over 150 specialists over four years to review, adapt, and create transparent and robust guidelines tailored to the local context, using an internationally derived ‘GRADE-ADOLOPMENT’ process, and a diverse advisory board. This Manual of Therapeutics aims to standardize clinical practice across several healthcare sectors, offering tangible solutions for optimal patient care from primary to tertiary levels. The keynote speaker, Professor Mahmood Ayyaz, Vice Chancellor, King Edward Medical University, Lahore emphasized the importance of evidence-based guidelines in clinical practice and the need to close the gap in global health disparities.
“The move from disease-oriented guidelines to community-oriented contextual guidelines is key but comes with its own set of challenges that need to be addressed. The system also needs to have maintenance and improvement mechanisms embedded within in,” said Professor Maj General Sohail Sabir during his plenary talk on challenges and their solutions in the development of contextual guidelines. Professor Sabir commended AKU’s leadership and training with military hospitals to ensure maximum impact and dissemination.
Professor Dr Javed Akram, President, Pakistan Society of Internal Medicine and Health Minister Punjab was also in attendance, providing crucial insights from his work as a medical professional as well as a government health official. “Health disparities exist around the world, but the issues that plague Pakistan are varied and many. The disease burden is alarming, and resources constrained with overwhelming volumes, so prevention is as important as the cure. Ethical, transparent locally adapted clinical guidelines rooted in research which integrate disease and patient oriented approaches is the way forward,” he said.
Prof Dr Khalid Masood Gondal, President, College of Physicians and Surgeons Pakistan; Professor Dr Rizwan Taj, President, Pakistan Medical and Dental Council; Dr Bushra Mirza, Member, Research, Development and Innovation, Higher Education Commission; Professor Dr Shabeen Naz Masood, Executive Member, Society of Obstetricians and Gynaecologists of Pakistan; and Major General Irfan Ali Mirza, Hilal e Imtiaz (Military), Dean AFPGMI; and Professor Dr Shehla Naseem, Member, National Advisory Board were some of the distinguished speakers at the symposium.
The symposium consisted of presentations on guideline development for common ailments such as diabetes and hypertension, along with robust panel discussions on the impact of guidelines on healthcare, oral presentations of shortlisted abstracts, poster presentations, awards, and recognition of all the specialists who contributed to the development of the manual of therapeutics.
Huo Junli, Ceo Zong discusses future of telecom in Pakistan with Chairman PTA
Zong ’s Chief Executive Officer Mr. Huo Junli, Chief Technical Officer Lu Jianhui, Chief Regulatory Office Kamran Ali met with Chairman PTA Maj Gen (R) Hafeez Ur Rehman on February 21, 2024 at the PTA Headquarters, Islamabad. The purpose of this meeting was to discuss critical aspects shaping the future of the telecommunications industry in Pakistan. Key agenda items included addressing challenges encountered by the sector and devising-relevant strategies to mitigate them, as well as outlining the framework for the upcoming spectrum auction.
The strategic session delved into topics such as network infrastructure development, enhancing 4G coverage, advancing leadership in data services, and exploring various IoT solutions. Furthermore, recommendations aimed at enhancing performance across all telecom sectors were presented and thoroughly deliberated upon. Overall, the session was characterized by its strategic focus and productive outcomes.
Standard Chartered and Karachi United conclude sixth football youth league
Standard Chartered along with Karachi United Football League concluded its sixth year in Karachi. This league was launched in November 2023. Featuring 206 thrilling matches, among 74 teams, it comprised more than 1,280 young male and female players, who showed great performances. Sponsorship of this tournament was a part of Standard Chartered Bank’s resourceful social development initiative to promote healthy sporting activities in the country.
The winning team in the girls’ competition was the Karachi United girls team, while the victorious squad in the under-14 boys’ competition was Karachi United Baldia Centre. Earlier, the under-10 team contest was won by Karachi United Mauripur Centre while the top team in the under-12 contest was Karachi United CEFA Centre Meanwhile, the crown in the school category championship headed to Dream of Youth. The tournament inspires enthusiastic participation by children hailing from different football clubs and academies in Karachi.
Standard Chartered has been sponsoring this league since 2017. Initiated with engaging 600 children from underserved communities, today the tournament has exceeded the headcount to over 6500 children, who have been supported through sports to become productive citizens.
Rehan Shaikh, CEO, of Standard Chartered Pakistan commenting on the sponsorship said, “We are very proud to be part of this wonderful initiative over the last 6 years and the impact it has created for thousands of children and their communities. The league continues to grow from strength to strength, bringing together children from across different communities and backgrounds through friendly and healthy competition. It continues to inculcate self-confidence, tolerance, respect and perseverance amongst children whilst breaking barriers across class, gender, and abilities. We are committed to driving greater equality and inclusion and will continue to support fantastic initiatives like SC KU League.”
Commenting on the league Imran Ali, Director Youth and Community, at Karachi United said: “This Youth league continues to impress us in its ability to engage new players and communities every year. The league is now clearly the biggest Youth competition in Pakistan with participation of over 1200+ players (including girls) with over an astounding 206 matches played over 4 months. Not only do we get excellent feedback from community stakeholders on how this is positively impacting their areas but we are also unearthing football talent. On the back of the success of this league, Karachi United is furthering our engagement within the communities through sports festivals and social action projects. This would not be possible without the support of our partners at Standard Chartered and for that, we are grateful for their continued support”.
Non-stop evening OPD introduced at Mayo hospital, Lahore
The Government of Punjab has introduced extended evening OPD timings for pediatrics till 8pm daily at Mayo Hospital, Lahore. This initiative has been implemented in collaboration with ChildLife Foundation to facilitate the increased flow of children coming in for treatment and seeks to address the consultation needs of sick children, particularly during the evening hours when patient flow typically surges in the Emergency Room (ER).
The extended OPD, operational from 02:00 pm to 08:00 pm, aims to effectively manage the patient flow coming to the hospital’s children emergency. The government doctors and clinical team of ChildLife Foundation are working together to provide consultations to children in need, with an average of 100 patients being attended to daily. Moreover, Mayo Hospital provides prescribed medicines free of cost to children from the outdoor pharmacy, ensuring that financial constraints do not hinder access to emergency care.
This collaborative effort represents a shared vision of ensuring the well-being of children and reflects the impact of public-private partnership towards addressing healthcare challenges and making Pakistan a child-safe country. The initiative is a significant step towards ensuring that no child in Lahore is deprived of timely and quality medical attention absolutely free of cost.
Mobilink bank witnesses 72% revenue growth, championing inclusive banking for women and SMEs
Mobilink Bank achieved multiple financial milestones in 2023, solidifying its position in the banking industry. With a revenue of PKR 41,053 million, representing 72% growth from the previous year, the Bank’s performance underscores its commitment to excellence and innovation, particularly in its support for women and Small and Medium-sized Enterprises (SMEs). Mobilink Bank’s commitment to Diversity, Equity, and Inclusion (DEI) is exemplified through its flagship initiative, the Women Inspirational Network (WIN) program and MobilinkHER Women Returnship Programme, which have emerged as a catalyst for change. Through WIN, the Bank has empowered over 5,000 female entrepreneurs with essential digital and business skills, while MobilinkHER Women Returnship Program has successfully onboarded eight (8) women who took career breaks, demonstrating its commitment to uplifting women in the workforce.
The Bank’s DEI efforts received recognition from key organisations, including the State Bank of Pakistan (SBP), ranking Mobilink Bank at the top on its Banking on Equality (BOE) scorecard. The VEON group also titled the Bank as a DEI Champion, highlighting its commitment to driving positive change.
VEON is a global digital operator that provides converged connectivity and digital services to nearly 160 million customers in six dynamic markets that are home to 7% of the world’s population.
In 2023, the Bank witnessed 31% and 84% year-on-year growth in its loan and customer deposit portfolios, respectively. This growth is a testament to the Bank’s dedication to offering accessible financial solutions to individuals and businesses, fueling economic growth and fostering prosperity.
Aamir Ibrahim, Chairman Mobilink Bank, congratulated the Bank’s management for another year of robust performance, emphasizing their concerted efforts in redesigning the financial landscape of Pakistan. He highlighted that over the past decade, Mobilink Bank has been working to facilitate one of the world’s largest unbanked populations. The Bank’s innovative and convenient financial solutions have proven to be a game-changer for Pakistan’s underserved communities and will continue to play a pivotal role in sustainable economic growth and social progress in the country.
Also sharing his thoughts, Ghazanfar Azzam, President & CEO Mobilink Bank said, “In alignment with our commitment to DEI, we are steadfast in our efforts to empower women and SMEs through inclusive digital and financial products. Initiatives like WIN and MobilinkHER underscore our dedication to enhancing our services to meet the needs of our community while advancing financial inclusion. In the upcoming year, we will further strengthen our efforts to broaden access and amplify awareness programmes tailored for women and young entrepreneurs, focusing on enhancing digital and financial literacy, green financing, and sustainability across all fronts. Our aim is to increase our women depositors to 250,000, dedicate 30% of our lending portfolio to women, upskill 15,000 women in financial and digital literacy, and raise our solar financing to PKR 2.5 billion by the end of 2024.”
In 2023, Mobilink Bank demonstrated growth in its branchless banking network, reaching 239,252 agents while maintaining 109 branches. The active borrower base increased to 3,243,354, showcasing improved financial accessibility. Additionally, the Bank experienced a 31% surge in gross loan portfolio and a 5.24% rise in depositors, solidifying its position in the banking sector.
National Foods recognised for SustainAgro project in CFA programme by UK
National Foods Limited proudly announces its recognition as one of the final climate mitigation projects under the prestigious Climate Finance Accelerator (CFA) Programme, supported by the UK government and DAI Global. The SustainAgro project, an extension of National Foods’ commitment to sustainable agriculture and a secure value chain, has been acknowledged for its innovative approach to addressing climate challenges in Pakistan.
The CFA Investor Roadshow 2024, which concluded with a high-level roundtable discussion on February 20, 2024, marked an important milestone in the journey towards sustainable finance in Pakistan, bringing together influential leaders and experts to discuss the future of climate finance in the region.
The SustainAgro project by National Foods Limited lead and developed by four experts focuses on sustainable agriculture, localization for a secure value chain, and the development of an eco-system for modern farming in Pakistan. It builds upon the company’s commitment to farmer wellbeing, women empowerment, and food security, aligning with 10 UN Sustainable Development Goals (SDGs).
“We are honored to be recognised for our SustainAgro project in the Climate Finance Accelerator Programme,” said Syed Muhammad Mahd, Chief of Staff at National Foods Limited. “This project represents our dedication to creating sustainable solutions that address climate challenges while promoting economic development and social empowerment in Pakistan.”
National Foods Limited extends its gratitude to the UK government, DAI Global, and the Climate Finance Accelerator Programme for their support and recognition. The company remains committed to driving positive change through initiatives like SustainAgro, contributing to a more resilient and sustainable future for Pakistan and beyond.
TCL Brings Joy to SOS kids’ with memorable PSL Stadium Experience
In a heartwarming gesture, TCL, Pakistan’s No.1 LED TV brand, took a truly special initiative to bring joy to the hearts of over 50 children from SOS Village. Amidst the bustling excitement of PSL, TCL Pakistan extended an invitation to these deserving children, offering them an unforgettable experience at the cricket stadium. Transported to the iconic Gaddafi Stadium, the children were immersed in the electrifying atmosphere as they witnessed the thrilling PSL match between Peshawar Zalmi and Islamabad United. Surrounded by the cheers of passionate fans and the exhilarating energy of the game, their faces lit up with delight, creating moments of pure happiness.
As part of TCL Pakistan’s ongoing commitment to fostering community development and promoting sports among the youth, this initiative exemplifies TCL’s dedication to enriching the lives of children. The event, set against the backdrop of Gaddafi Stadium, aims not only to provide entertainment but also to inspire and instill a love for sports in the hearts of these young individuals.
TCL Pakistan has a long-standing tradition of supporting cricket in Pakistan through strategic sponsorships with prominent PSL teams, including Peshawar Zalmi, Islamabad United, and Quetta Gladiators. Through TCL’s #TheCricketLife Campaign and its partnership with the Pakistan Cricket Board (PCB), TCL is deeply committed to supporting sports and providing unforgettable experiences to fans. By leveraging these partnerships, TCL Pakistan consistently seeks opportunities to give back to the community and make a meaningful impact on society.
Majid Khan Niazi, Marketing Director TCL Middle East and Africa, expressed his enthusiasm for the initiative, stating, “At TCL Pakistan, we believe in the transformative power of sports to unite communities and inspire positive change. By inviting the children from SOS Village to experience the exhilaration of a PSL match firsthand, we aim to create lasting memories and inspire dreams for a brighter future.”
TCL Pakistan’s collaboration with SOS Village underscores its commitment to social responsibility and uplifting the lives of children across Pakistan. Through initiatives like these, TCL Pakistan continues to demonstrate its unwavering commitment to corporate social responsibility, leveraging its resources and influence to make a meaningful difference in the lives of individuals and communities nationwide.
Strong Financial Delivery Continues
– Pre-tax Profit of PKR 101.3 Bn — 61.4% up YoY. Total Assets reach PKR 6.7 Trillion —27% up YoY.
The Board of Directors of National Bank of Pakistan “NBP” “the Bank” met today to approve the annual financial statements for the year ended December 31, 2023.
NBP, the Nation’s Bank, has marked yet another year of robust financial outcomes, achieving a pre-tax profit of PKR 101.3 Bn, presenting a 61.4% increase from the preceding year’s PKR 62.7 Bn. The Bank navigated a challenging macro environment, sustaining its support to customers in line with its Vision.
This year witnessed the creation of total stakeholders’ value amounting to PKR 1,065.3 Bn, doubling the PKR 540.0 Bn of the previous year. A 35.4% surge in average earning assets, coupled with margin expansion on the back of higher average policy rates, generated gross interest revenue of PKR 1,024.7 Bn — 103.6% higher than PKR 503.3 Bn for 2022. Healthy growth was achieved in all income streams being Advances (PKR 221.8 Bn, 57% up), Investments (PKR 774.0 Bn, 122% up), and Placements (PKR 28.9 Bn, 112% up). Pursuant to an effective fund mobilisation, average interest bearing liabilities of the Bank reached PKR 5,267.8 Bn (2022:PKR 3,871.9 Bn). In the backdrop of higher average interest rate, PKR 855.9 Bn was paid to the providers of funds in terms of cost of funds. Accordingly, the Bank’s net interest income for the year closed at PKR 168.7 Bn, depicting a YoY increase of 44.4%.
Despite lower trade activity amidst a challenging & uncertain business environment, the Bank achieved a 10.7% growth in its non-fund income stream that amounted to PKR 40.6 Bn (2022:PKR 36.7 Bn). While equity investments of the Bank generated dividend income of PKR 5.3 Bn (2022:PKR 5.2 Bn), income under fee & commission stream amounted to PKR 22.0 Bn (2022:PKR 21.2 Bn), and are reflective of the Bank’s widespread customer base and market outreach. The Bank’s FX income for the year closed at PKR 7.1 Bn which is slightly lower than PKR 7.4 Bn for the prior year due to adverse impact on account of forward exchange contracts rates. Whereas, given the bullish trends of the stock market during most days of the years, the Bank generated, mostly through its equity portfolio, capital gains of PKR 4.4 Bn, depicting a 285% increase over PKR 1.1 Bn of the corresponding year. Consequently, total income for the year amounted to PKR 209.4 Bn, i.e., PKR 55.8 Bn or 36.4 % higher, YoY.
Reflecting the impacts of inflationary impacts, yearly increase in HR compensation, and the Bank’s investment into its IT systems and upgrade of business premises, operating expenses for the year amounted to PKR 93.3 Bn, depicting a YoY increase of 19.5% against PKR 78.2 Bn in 2022. Pursuant to a prudent strategy of strengthen the Bank’s capital base, a provision charge of PKR 14.5 Bn was created during the year. This is particularly important in the backdrop that International Financial Reporting Standard 9 stands implemented effective January 01, 2024. Implementation of the standard is likely to attract higher provisioning resulting into decreased regulatory capital and lending capacity of the banks. Pursuant to its prudent strategy of strengthening the capital base, the Bank holds PKR 203.6 Bn in specific provisions, and PKR 30.0 Bn in general provisions against distressed loan portfolio, depicting a high specific coverage ratio at 92.2%. Accordingly, the Bank’s pre-tax profit for the year amounted to PKR 101.3 Bn i.e., 61.4% up against PKR 62.7 Bn for the prior year. Tax charge for the year amounted to PKR 49.4 Bn, translating into an effective tax rate of 48.8% compared to 51.5% for the prior year. Resultantly, profit after tax for the year amounted to PKR 51.8 Bn i.e., 70.5% higher than PKR 30.4 Bn for 2022.
Maintaining its leading market position, the Bank achieved PKR 6.5 TRILLION milestone in its balance sheet that grew 27% to reach PKR 6,652.7 Bn from PKR 5,240.4 Bn at the end of 2022. This makes NBP the largest Bank in Pakistan in terms of total assets. While investment (cost) increased by 25.2% to reach PKR 4,393.9 Bn, gross advances recorded 13.4% growth to reach PKR 1,631.7 Bn depicting an advances-to-deposits ratio at 44%. With a nationwide well-diversified market outreach, the Bank maintains a strong funding and liquidity profile. At the year end, total deposits amounted to PKR 3,674.4 Bn being 37.8% higher than PKR 2,666.2 Bn at the end of 2022. Major share of the Bank’s deposits comes from sticky customer deposits that contribute 86.2% of the total deposits. With current deposits amounting to PKR 1,970.5 Bn or 54% of total deposits, the Bank maintains a strong liquidity profile. While CASA ratio stood at 79%, Liquidity Coverage Ratio and Net Stable Funding Ratio also remained high at 176% and 259%, respectively against a regulatory requirement of 100% for each.
The Board deliberated at length whether or not cash dividend should be recommended. However, the likely impact of the pension case and other contingencies, still remains a cause of concern for the Board. Accordingly, the Board considered it prudent to retain the profits for the time being and once the position becomes clearer, the Bank may consider declaration of dividend at a later stage. With high profits retention, the Bank’s total eligible capital stood increased at PKR 376.7 Bn, depicting a PKR 70.5 Bn or 23.0% increase YoY. Consequently, total capital adequacy ratio improved by 388 bps to 25.47% from 21.59% at YE’22. The Bank enjoys highest credit ratings of AAA / A1+ for both long term and short term respectively as reaffirmed separately by both PACRA as well as VIS Credit Rating Company in June 2023.
Providing insights into the yearly performance, Mr. Rehmat Ali Hasnie, the President/CEO of the Bank, expressed that the outstanding strategic execution and financial outcomes underscore the commitment and dedication exhibited by the Bank’s workforce in serving the nation during challenging periods. The Bank is actively engaged in substantial organizational and technological transformations, augmenting product suite, embracing digitalization, and launching initiatives to foster financial inclusion, particularly emphasizing SME, commercial and rural sectors. Simultaneously advancing its business growth endeavours, the Bank is dedicated to addressing legacy issues through ongoing remediation efforts.
As the Nation’s Bank, going forward, NBP’s strategy focuses on enhancing its service quality levels, diversifying its outreach through digitalization, and increasing its products and services suite.
President of Somaliland to open 11th African Islamic Finance Summit
AlHuda Centre of Islamic Banking and Economics (CIBE) is proud to announce the 11th African Islamic Finance Summit, scheduled to take place from March 5 to 7, 2024 at Hotel Ambassador Hargeisa, Somaliland. H. E. Musa Beihi Abdi the President of Somaliland will inaugurate the summit in Hargeisa, Somaliland. The Media Partners for this event will be Financial IT, IFING, Islamic Finance, and True Cable TV. The supporting partners for this event will be Somaliland Bankers Association (SLBA), Egyptian Islamic Finance Association, AL BARAKAH Multi-Purpose Cooperative Society Limited and the Islamic Finance Research Institute, Ghana. The event is being organised in association with the National Insurance Authority, Somaliland, and Bank of Somaliland, Republic of Somaliland.
The summit will feature a comprehensive agenda aimed at providing practical insights into global efforts and achievements in Islamic banking and Takaful, while showcasing the flexibility of Islamic financial markets, particularly amidst the recent financial crisis. The programme outline is based on all significant areas, opportunities, challenges, gaps and adoptability of the financial industry across the continent. The participants can gain full knowledge on various topics including Islamic banking and finance, Takaful (Islamic insurance), Sukuk and Islamic capital markets, Islamic microfinance, Shariah governance, and investment opportunities in Africa.
Muhammad Zubair, Chief Executive Officer of AlHuda Centre of Islamic Banking and Economics said that, we are excited to host the 11th African Islamic Finance Summit in Somaliland. This summit presents a unique opportunity to explore the potential of Islamic finance in Africa and to discuss strategies for promoting financial inclusion and sustainable development in the region. We are honored to arrange this prestigious summit in Somaliland and contribute to the advancement of Islamic finance in Africa. By fostering dialogue and cooperation, we aim to leverage Islamic finance as a catalyst for socio-economic development and prosperity in the region.
The event is set to showcase esteemed speakers from Islamic finance industry who will share their expertise and insights on various topics related to Islamic finance. The summit will also provide a two-day post-event workshop on Islamic banking, Takaful, and Islamic microfinance from March 6 to 7, 2024. This workshop will explore deeper into fundamental concepts and mechanisms of Islamic finance, offering attendees valuable insights and practical knowledge. AlHuda CIBE is pleased to invite the financial industry of Africa to join in the prestigious event on March 5, 2024 in Hargeisa, Somaliland.