Standard Chartered launches first Sustainable Trade Export LC plan
Standard Chartered Bank (Pakistan) Limited (SCBPL) has launched Pakistan’s First Sustainable Trade Export LC Programme. SCBPL is supporting Louis Dreyfus Company (LDC) export cotton sourced through the world’s leading cotton sustainability certification programme, the Better Cotton Initiative (BCI).
With Standard Chartered’s focus on helping companies accelerate to net-zero and closing funding gaps for sustainable and green finance in emerging markets, SCBPL was the bank of choice for LDC, given LDC’s own commitment to work towards a safe and sustainable future in Pakistan.
Arslan Nayeem, Head of Client Coverage, CCIB, Standard Chartered Pakistan, said, “Whilst we strive towards our sustainable financing goals at a global level, we find it key to support local exports not only as an economically viable venture but also to integrate sustainability and climate resilience in a manner that the Better Cotton Initiative encourages.
We are delighted to partner with Louis Dreyfus Company in this joint pursuit of our sustainability goals through this Sustainable Export LC Programme. Sustainability and transition finance have become the need of the hour and a priority for many of our clients. Pakistan is a prime market for green and transition financing and the Bank is here to support clients cover funding gaps for such initiatives.”
Bilal Yousuf Chabra, Country Head of LDC Pakistan, said, “Sustainable agriculture and production remain amongst the world’s most pressing challenges. As a leading merchant and processor of agricultural goods, we are driven by our purpose of a safe and sustainable future. We are proud to be working closely with Standard Chartered Bank to build and strengthen our commitment in Pakistan, where we have been part of the community since 2015.”
“The partnership will also see LDC Pakistan aligning our environmental goals with our financial model, while supporting the growth and development of the local cotton industry.”
Initiating the first Sustainable Trade Export LC Programme for LDC in Pakistan is another pioneering milestone achieved by SCBPL. The underlying commodity is BCI certified cotton which is grown in a sustainable more pest and drought resilient manner allowing improved livelihoods for nearly 1.5 million smallholder cotton farmers. Pakistan is now the second largest producer of BCI cotton and through this Sustainable Trade Export LC programme will export to buyers in Bangladesh, Vietnam, and other countries. A sustainable-goods certification issued and approved by a third party will form a part of each transaction and documentation for this Programme. This is a key initiative to embrace sustainable exports which will encourage local and global sustainability measures while supporting Pakistan’s economy.
Shareholders of Soneri Bank Limited approve 2022 annual results
The annual audited financial statements of Soneri Bank Limited for the year ended 31 December 2022 were approved by the shareholders of the Bank in their 31st AGM held in Lahore and through video- link via Zoom on Monday, 27 March 2023. The meeting was chaired by Mr. Alauddin Feerasta, Chairman of the Board, with Mr. Muhtashim Ahmad Ashai, President and Chief Executive Officer and other members of the Board of Directors also in attendance.
The Bank posted profit before tax (PBT) of Rs. 4,554 million and profit after tax (PAT) of Rs. 1,883 million in the year 2022, as compared to Rs. 5,149 million and Rs. 2,854 million respectively in 2021. Earnings per share (EPS) for the year was reported at Rs. 1.71 per share for the current year, as compared to Rs. 2.59 for the comparative prior year. During the meeting, the shareholders approved the final cash dividend for the year ended 31 December 2022 @ 10.00 percent i.e. Rs. 1.00 per share, as recommended earlier by the Board of Directors.
Briefing the shareholders on the financial results, the President and CEO mentioned that Bank’s Net Interest income for the year was reported at Rs. 11,267 million, increasing by 3.01 percent against Rs. 10,938 million for the prior year, while non-interest income increased by 20.21 percent to end at Rs. 5,157 million as against Rs. 4,290 million for the last year. He also mentioned that despite inflationary pressures, growth in expenses was restricted at 20.16 percent as compared to the prior year with Non-markup expenses reported at Rs. 12,245 million for the year ended December 2022. He further explained that due to the changes introduced by the Finance Act 2022, the overall effective tax rate for the Bank for the year ended 31 December 2022 stood at 58.65 percent (2021: 44.57 percent).
Bank’s Deposits registered an increase of 1.64 percent when compared to 31 December 2021, ending at Rs. 409,643 million at 31 December 2022. However, the Bank’s CA mix improved to 32.73 percent in December 2022 as against 27.17 percent at December 2021, with year end Current deposits at Rs. 134,080 million as against Rs. 109,494 million at the year end 2021.
The Bank’s net advances portfolio increased to Rs. 208,434 million as at 31 December 2022, 25.95 percent higher than the year end 2021 level, while the Bank’s Non-performing loans to total Advances ratio improved to 4.71 percent (December 2021: 5.95 percent). Specific coverage was at 71.61 percent (December 2021: 76.51 percent).
The Bank’s ADR at 31 December 2022 was at 52.67%, and Capital Adequacy Ratio was reported at 15.19%.
Three nuclear-armed nations facing hunger: 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 March 31 said the people of the three nuclear powers are suffering from hunger.
The people of North Korea are facing starvation due to international sanctions, and millions of people in India are suffering from the government’s incompetence, war frenzy, religious fanaticism, and corruption, he said.
Mian Zahid Hussain said that the neighboring country also has a large population that is not easy to feed while the people of nuclear Pakistan are suffering from the violation of the constitution, corruption, higher spending, political instability, and endless elitism.
Talking to the business community, the veteran business leader said that in view of the geographical importance of Pakistan, the attention of most governments has been focused on obtaining loans.
Pakistan received a lot of dollars due to the interest of powerful states in past but it was wasted instead of paying off the debt or using it for the country’s development, he said.
The business leader noted that now in view of Pakistan’s strong economic and geographical potential, the world wants nuclear Pakistan to stand on its feet.
The world wants Pakistan to widen its tax base, privatize failed government institutions, and give full attention to energy, agriculture, and exports, he added.
Mian Zahid Hussain further said that how will a country which is struggling to borrow one billion dollars from the IMF will recover the losses of thirty-one billion dollars caused by the flood.
If the flood victims of 2022 are not helped, they will not be able to stand on their feet, as a result of which agricultural production will decrease further, food will become more expensive and the problem of food security in the country will intensify, he feared.
Currently, a large part of the country’s population is spending most of their income on food, but they are not getting enough food. We are lagging far behind India, Bangladesh, and dozens of other countries in terms of wealth distribution, human development, and economic improvement, and the situation is getting worse.
Mian Zahid Hussain said that even before the flood, forty percent of the children were stunted due to hunger and Pakistan had the highest number of out-of-school children, which is now increasing due to inflation.
Habib Metro celebrates Women’s Day to ‘embrace women, embrace equity’
Habibmetro Bank, held a grand event in celebration of International Women’s Day on March 13, 2023, at Area 51, Karachi. The event, which was themed “Embrace Women, Embrace Equity,” aimed to empower and showcase the talent and potential of women in all aspects of life.
In a true celebration of women’s skills and abilities, the event was completely led by women – from photography to music and entertainment programs. The event was a remarkable reflection of the immense talent and leadership qualities of women and truly shone a spotlight on their capabilities.
Pakistan’s TPL Corp CEO meets with Finland Ambassador, Paving the Way for Stronger Industrial Relations
TPL Corp CEO Mr Ali Jameel met with Finland’s Ambassador to Pakistan to strengthen business relations between the two countries. The meeting, which took place at Avari Towers Karachi, is a significant step towards driving industries in Pakistan. With a dedicated contact person of Finland Pakistan Business Council (FPBC) at the Karachi headquarters, TPL Corp, a leading conglomerate in Pakistan with diverse interests in technology, insurance, fund management and real estate, is committed and well-positioned to support Finnish companies looking to establish their presence here.
FPBC was established in 1985, backed by major locally operating banks and industries, and has played a critical role in strengthening relations between the two countries.
The meeting between Mr Jameel and the Finland Ambassador, Mr Hannu Ripatti, along with FPBC Chairman Mr Willie Eerola, symbolizes the next phase of the industrial revolution driven by FPBC, Finland and Pakistan. The two countries have enjoyed strong diplomatic and economic ties for over seven decades, and there is tremendous potential to strengthen these relations further.
“Finland had a non-resident Ambassador to Pakistan until last year. The re-opening of the resident Embassy of Finland in Islamabad last September is a clear sign of the rising interest and importance of Pakistan in Finland. The possibility for Finnish companies to make contacts and get information from the FPBC’s dedicated contact person in the economic hub of Karachi is again a new step up on the ladder of developing our two countries’ economic relations. It is also a clear boost for our companies looking for new partners and markets in our two countries,” H.E. Mr Hannu Ripatti, Ambassador of Finland to Pakistan, said.
“During the last few years, the interest among Finnish companies in Pakistan has increased significantly, and we have been hosting several delegations to Pakistan. The Momentum for growing Finland-Pakistan trade and investment is right now, and Finnish companies would be able to make the required technology and knowledge transfer to really happen in Pakistan”, Mr Wille Eerola, Chairman of FPBC, stated.
In July 2022, Finnfund, a leading development financier and impact investor in Finland, acquired a 17.59% shareholding in TPL Insurance Limited, enabling the company to introduce innovative and tech-driven insurance products in Pakistan.
“International collaborations like these can play an instrumental role in bringing in foreign exchange to the country, which is a critical need for the Pakistani economy currently”, Mr Ali Jameel said.
Politicians should plan to save the country: 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 March 27 said Pakistan has placed too much trust in international institutions and friendly countries as a result of which the economy and people are suffering.
The IMF wants Pakistan to take loan guarantees from friendly countries and present a plan for economic reforms to complete the ninth review, after which the staff-level agreement can be finalized, he said.
Mian Zahid Hussain said that politicians should put aside their bickering and come up with a consensus on the Charter of Economy or an alternative plan otherwise economic reforms would not become a reality.
Talking to the business community, the veteran business leader said that everything except the nuclear program has already been pledged. The country’s economy is constantly deteriorating and it has become difficult for the people to manage food.
In this situation, the charter of the economy or alternative plan has become indispensable which should not be delayed.
The business leader said that people who were considered prosperous a few years ago have now become miserable, while middle-class families have reached the brink.
He observed that the arrival of Ramadan has increased inflation due to which the people are suffering more.
Mian Zahid Hussain said that the conditions of the country’s economy are getting worse, the rupee is weakening day by day while the value of the dollar is increasing.
The country can go bankrupt at any time, but some politicians are making the situation worse by playing politics of hatred and anarchy even in these situations.
The situation is continuously deteriorating due to the increasing political disturbances, which international institutions and friendly countries are also watching silently.
If the politicians still don’t show their senses, the country’s economy will continue to sink further into the quagmire.
Mian Zahid Hussain added that it is difficult to rein in the elite under these circumstances. Efforts should be made to bring stolen funds back to the country so that the debts can be paid and the people can get some relief, whose purchasing power is decreasing with each passing day.
TPL Life onboards 15,000 Potential Life Insurance Agents on “Muavin” – Pakistan’s First Virtual Life Insurance Agent Platform!
TPL Life Insurance Limited, Pakistan’s 1st InsurTech enterprise in the innovative insurance business, has launched the country’s most revolutionary Virtual Life Insurance Agent Learning & Earning Platform – “Muavin.”
A means for every Pakistani to create an alternate or regular income stream by selling TPL Life’s insurance products. The user can sign-up for free on Muavin, complete the learning phase while referring to available video lectures & course material, become a certified Muavin, start selling from anywhere in Pakistan, and earn a commission for successful sales.
This unique digital platform can be accessed for learning, acquiring a certification, and subsequent sale of insurance products by certified Muavins via Mobile App &/or Web – both life and health insurance products can be sold digitally, omitting the need for paper-based learning and sales practices.
There have been 15,000 sign-ups across Pakistan since the launch of the platform – a testament to the fact that Pakistanis are aggressively looking for options that enable them to learn new skills, increase income, maintain & improve lifestyles, and be financially empowered to address any inflation &/or economic strains.
The Muavin platform aligns with TPL Life’s vision of enabling Pakistan & every Pakistani digitally, ensuring that economic activity is intrinsic at every step of financial prosperity, highlighting the talent and capabilities that the country fosters.
“We are thrilled to introduce a medium for our fellow Pakistanis that offers them the opportunity to pursue their goals, hone their talents, and make a better living for themselves,” said Mr. Saad Nisaar, CEO of TPL Life Insurance. He added, “The overwhelming number of sign-ups is a testament to the demand for this platform in Pakistan.”
In addition, Mr. Humayoon Asghar, Chief Strategy & Retail Officer, said, “This is a proud moment for us; we are confident that Muavin Platform will be the game-changer for TPL Life and the entire insurance industry of Pakistan. The platform has enabled distribution of our products directly to every Pakistani via Muavins (Virtual Agents) – without dependency over traditional brick & mortar setups – adding to economic activity in the country, opportunities for fellow Pakistanis & growth for TPL Life.”
Oil production cuts will push up inflation: 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 5 said oil-producing countries have decided to reduce oil production to increase their profits.
The decision will make oil more expensive and inflation will increase in the whole world including Pakistan, he said.
Mian Zahid Hussain said that rich countries are plunging the world into a new crisis to acquire additional wealth.
Talking to the business community, the veteran business leader said that Russia has recently announced a reduction in oil production by 500,000 barrels with the aim of increasing its profits, providing resources for war, and punishing countries working against it.
Soon after Russia, OPEC Plus also announced a reduction in oil production of more than one million barrels per day, which will increase inflation and people’s problems all over the world and further reduce global growth.
The move will also undermine global efforts to reduce inflation, he said, adding that according to an estimate, reducing production by oil-producing countries may increase the price of oil per barrel by up to ten dollars, which will increase the burden on oil-importing countries.
The business leader noted that by the end of this year, the price of oil will be 95 dollars, while in 2024 it will increase to 100 dollars.
Mian Zahid Hussain said that inflation had started to decrease in many countries and the people were breathing a sigh of relief but the oil-producing countries had taken a unilateral decision that surprised the world.
As oil becomes more expensive, inflation will increase, bond markets and currencies of many countries will be affected, and many countries, including the United States and Europe, will have to raise interest rates further.
He said that the recent one percent increase in the interest rate by the State Bank of Pakistan will increase the base interest rate to 21 percent and the bank spread to 25 percent, which will make it impossible to do business.
Businesses will start going bankrupt while bank loans in the industry, business, home finance, and car leasing, etc. will be stuck.
To get out of this difficult situation, Pakistan will have to develop its agriculture and make rapid progress on solar and wind power to reduce the oil import bill, he said.