Day: August 27, 2021

The Advisor to the Prime Minister on Commerce and Investment held a meeting with the members of the Pakistan Mobile Phone Manufacturers Association (PMPMA) and other leading manufacturers and assemblers of mobile phones on August 26, 2021.

The Additional Secretary, Ministry of Commerce, and Chairman Engineering Development Board (EDB) also attended the meeting. The agenda of the meeting was to discuss the exports opportunities available to the local manufacturers and assemblers of mobile phones.

The Advisor briefed the participants about the incentives given by the Government to the local mobile manufacturers and assemblers through the Mobile Device Manufacturing Policy, 2020.

It has also been highlighted that additional incentives have also been given to the mobile industry to spur localization to create job opportunities.

He reiterated that the importance given by the Government to the “Make in Pakistan” led economic growth. To achieve this, the tariff structure has been rationalized by creating a tariff differential between Completely Built-Up Unit (CBU) and Completely Knocked Down (CKD) and Semi Knocked Down (SKD) kits.

He highlighted the incentives given to the exporters through Export Facilitation Scheme, 2021. The Advisor stressed the need to scale up the production capacity so that exportable surpluses could be generated.

The companies should also share their investment plans so that procedural hindrance, if any, could instantly be addressed.

The Advisor believed that mobile exports should meet the target of $1 billion in line with the incentives given by the Government. The participants of the meeting acknowledged the incentives given by the Government to the local mobile manufacturers and assemblers of mobile phones.

They were of the view that if current trends continue, they will reach the exports target set by the Government. However, they emphasized the continuity of the policies and rebates to the exporters, which should be at par with the other regional countries.

The Advisor assured them that current policies would continue, and additional incentives would also be given if export targets are met by the mobile manufacturers and exporters.

The Advisor said that as mobile imports are going down, it’s very encouraging to see that they are manufactured in Pakistan. It’s also creating new job opportunities for the locals and saving millions of dollars.

Advisor added we have a population of 22 million people with 50 to 55 percent youth. We need to focus on pro-industrialization policies to create jobs for them. The only way forward is the” Make in Pakistan” Philosophy.

Advisor stated that Prime Minister Imran Khan has the vision of Digital Pakistan, and it can be only achieved once the smartphones are affordable and accessible for everyone.

Source: Pro Pakistani

The world recently observed World Entrepreneurs’ Day (WED). The day is celebrated to create awareness for entrepreneurship, innovation, and leadership throughout the world. It’s a day when people who start a business all by themselves are celebrated.

According to the WED website, it’s the day of founders, managers, producers, contractors, industrialists, innovators, administrators, designers, and producers.

Entrepreneurship is vital because it has the potential to raise living standards and generate wealth, not only for entrepreneurs but also for connected businesses. Entrepreneurs also contribute to change through innovation, as new and improved products enable the creation of new markets.

And when it comes to startups and the prospect for their growth, only a few global markets show such strong potential as Pakistan. A country with a total population of 217M and a consumer spending worth $257B, Pakistan presents a ripe market rich with untapped potential for startups in the world.

In Pakistan, we have seen some remarkable progress made in the past few months alone with two of our homegrown startups raising over $100 million in funding. With such a thriving startup scene, we thought it’d be the perfect time to celebrate our own founders who are making waves in the global startup landscape.

While there are many young entrepreneurs from Pakistan who are driving a global change, here are some of them that we take pride in celebrating on this special occasion.

Shoaib Makani, Co-Founder, and CEO, KeepTruckin

Shoaib Makani, Co-Founder, and CEO of KeepTruckin is innovating the way trucking companies manage their fleets by making them more organized and productive. The company has raised over $200 million at a $1.4 billion valuation from investors like Index Ventures, Google Ventures, IVP, Scale Venture Partners, Greenoaks Capital, and ITOCHU Corporation.

Set to build a modern electronic log to fleet management program for the trucking industry, this has been one remarkable startup to reach the high skies ever since its conception.

“We started with a core problem for drivers. We recognized that paper logs are inefficient and there could be a better way, so we created a free app for drivers to do logs on their phones. Once that was adopted by hundreds of thousands of drivers, we developed the ELD and broader fleet management program based on mobile and smartphones,” shares Makani while explaining the idea behind his inventive solution.

“We now have a really comprehensive fleet management platform for trucking companies that spans compliance, telematics, and soon video monitoring,” he adds.

Mudassir Sheikha, Co-Founder, and CEO, Careem

Being an exceptionally innovative service in the Middle East, Careem has been crowned the first unicorn in the region. Mudassir Sheikha, an alumnus of the University of Southern California and Stanford University, built the idea of Careem upon his work experience in a Silicon Valley early-stage fund.

Together with his Swedish colleague and partner in crime, Magnus Olsson, Sheikha ached to do something more rewarding, which is how the idea for Careem came into inception. Within five years, Careem had amassed 10 million registered users in 60 cities in 11 countries.

Talking about his trade secrets, Mudassir Sheikha says, “There are no secrets. We love what we do and we work hard for it. We are on a mission to simplifying lives and are excited to build a lasting institution from the region. Everyone at Careem shares a common set of values that include being ambitious, focused, collaborative, and agile.”

“This combination of a deeply-held joint purpose, winning personality traits, and strong ownership produced magic for us, where the bar on aspiration and execution is high, where there is mutual trust between colleagues, where taking initiative proactively is the norm, where transparency is a basic right, where feedback is considered a gift, where things move rapidly from thought to execution, and where people do whatever it takes to delight our captains and customers,” he adds.

Usman Gul, Co-Founder and CEO, Airlift technologies

A Pakistani transportation startup that’s building a decentralized mass transit system to offer users a reliable daily commute option, Airlift looks like the next big thing in the market. In a short span of two years, Airlift has surmounted to have hundreds of routes and buses in Lahore and Karachi.

Just a few days ago, Airlift Technologies announced an $85 Million Series B financing led by some of the most iconic investors on the globe. This is the largest single private funding round in Pakistan’s history, according to a data tracker from venture capitalist fund Invest2Innovate.

While speaking to a digital media outlet, Usman Gul, Co-founder and CEO, Airlift sounded motivated about the future of this service in Pakistan.

“Pakistan has a lot to offer. The fundamental value system in both ecosystems is the same, taking initiatives, being bold and aggressive works here too. You will find a lot of self-made entrepreneurs in Pakistan. There is enormous latent talent in Pakistan that is underutilized, stuck in nine-to-five routines. It is easy to recruit that talent. When it comes to investors, they are quick and don’t run back and forth,” he said.

Sara Saeed Khurram, Co-Founder, Sehat Kahani

It is always a delight to see women step in step with men for the progress of the nation. As far as entrepreneurial activities are concerned, Dr. Sara Saeed Khurram and Iffat Zafar Aga, Co-Founders of Sehat Kahani are proving that women are no less than any man.

What started as a network to connect home-based female doctors to patients through telemedicine-enabled brick-and-mortar health clinics, Sehat Kahani, is now a national success. It gives a large number of female doctors, who are unable to practice medicine due to family commitments, the freedom to connect with patients in underserved communities through a network of nurse-assisted health clinics.

“We work across markets, so in low-income communities where people don’t have access to quality healthcare or doctors and they don’t have smartphones or the internet, we upgrade traditional clinics into telemedicine centers. Ultimately what we’re trying to do is connect patients to qualified doctors through technology, through our mobile app, so they can get quality healthcare, which is affordable, cost-effective, and easily accessible,” explains Dr. Sara Saeed Khurram.

These women of steel are serving in remote locations of the country where such basic facilities are much needed and ironically, scarce.

Shamoon Sultan, CEO Khaadi

Pakistan’s leading retailer, Khaadi’s CEO, Shamoon Sultan, is a graduate of Indus Valley and a creative mind with an abundance of unconventional ideas. Khaadi is among the very few retail brands that made their mark upon the working class and the elites alike, in no time at all, due to their affordable rates and exceptional quality of fabric.

Shamoon credits this huge success to his team of profound artists who are exceptional at what they do as he says, “Building a good team is essential, no one can do it on their own and you have to trust your team and delegate authority. As you continue to do this, it becomes easier. I always believed in the product and I think that is what made the difference.”

Shamoon’s story is one-of-a-kind as his vision propelled his rise from a small boutique owner on the streets of Karachi to the head of one of the most successful textile houses in the country.

Saad Jangda, Co-Founder Bazaar Technologies

A B2B marketplace that provides merchants with the ability to procure inventories at a standard price and choose from a wide catalog, Bazaar is available in Karachi and Lahore. Bazaar’s suite of digital products empowers merchants to simplify and grow their businesses. It is currently serving 5 million merchants across Pakistan.

While talking to TechCrunch about Bazaar’s future in the country, Saad Jangda, Co-Founder Bazaar Technologies, said, “Bazaar is going after a massive opportunity with the ultimate aim of creating a generational story in and from Pakistan. In a country with incredible talent and huge market opportunity, it’s about time we create an inspirational story that brings together the country’s best talent who can go on to create many such stories in the future.”

Policies that focus on giant companies providing one percent of their profits to the start-ups and tax exemptions to the companies investing in start-ups could propel Pakistan’s entrepreneurial landscape in the right direction. With the amount of talent advantage that Pakistan has currently, Pakistani startups are well-positioned to dominate all major industries in Pakistan and also expand to MENA.

Source: Pro Pakistani

The Prime Minister of Pakistan, Imran Khan, praised the efforts and hard work of the State Bank of Pakistan (SBP) and government agencies in crossing another impressive milestone of $2 billion in deposits in Roshan Digital Accounts (RDA) and developing an exclusive product, Roshan Apna Ghar, for Overseas Pakistanis’ investment in housing in Pakistan.

He said that RDA has provided an excellent platform for overseas Pakistanis to digitally connect to Pakistan’s banking system and meet their financial services needs in Pakistan. He was addressing a gathering of Ministers, Presidents and CEOs of Banks, SBP officials and other distinguished guests at the launch of Roshan Apna Ghar – an initiative of the State Bank of Pakistan for overseas Pakistanis.

The Prime Minister expressed optimism that Roshan Apna Ghar would facilitate overseas Pakistanis to buy a house for themselves or their families in Pakistan, which has been quite difficult for many of them due to a host of manual procedures, mandatory physical visits to Pakistan with long stay to complete the process and the hassle of trips to many offices.

He said that with the introduction of Roshan Apna Ghar, an end to end digital process right from submission of application to the bank to disbursement of funds by banks, overseas Pakistanis would find it much easier to buy a housing unit in Pakistan for themselves or their loved ones either through their own savings or bank financing.

In his welcome address, Governor SBP, Dr. Reza Baqir thanked the Prime Minister for his vision and firm resolve to integrate the overseas Pakistani community with the country’s economy. Highlighting the performance of Roshan Digital Account, he said that RDA is now a very well-established brand, which has so far connected over 215,000 expats with the country’s banking system and attracted over $2.05 billion since its launch in September last year. He said, it took about 8 months to cross the first major milestone of $1 billion whereas the next 1 billion were received in less than 4 months, which is indicative of the increasing momentum.

Introducing the new product, Dr. Baqir said that Roshan Apna Ghar is an initiative of SBP for Non Resident Pakistanis (NRPs) to buy, build or renovate their homes in Pakistan through their own investment or bank financing.

Complete information on the initiative as well as directions on how to avail it are available at: www.sbp.org.pk/RDA/Ghar

Overseas Pakistanis will be able to complete their transaction completely remotely and digitally and their investment will be fully repatriable. He elaborated that financing is available in both conventional and Shariah-compliant variants at attractive rates for a period of three to 25 years. Through the Roshan Apna Ghar initiative, overseas Pakistanis will also be able to obtain financing under the Mera Pakistan Mera Ghar scheme of the government as well which has been exclusively designed for those who do not already own a house and offers financing at economical rates starting from 3 percent.

Governor Baqir emphasized that SBP, with the support of all stakeholders, will continue to bring as much ease as possible for overseas Pakistanis.

Speaking at the occasion, the Minister for Finance and Revenue, Shaukat Tarin, said that the innovation of the Roshan Digital Account has proved to be a huge success and instrumental in receiving a substantial investment of over $1.4 billion in Naya Pakistan Certificates. He said that the Ministry of Finance with the help of the State Bank will make every effort to introduce new avenues of investment for overseas Pakistanis.

Source: Pro Pakistani

The Federal Finance minister Shaukat Tarin has said that the Pakistan Tehreek Insaf government on the recommendations of the high-level Economic Advisory Board has prepared a comprehensive plan to achieve inclusive and sustainable growth.

The Finance Minister along with the other economic ministers as well as members of EAC explained to the media about the short-term and long-term plans prepared by the vertical of EACs.

The Finance Minister said Economic ministries were working without any proper planning since 1972. “Our government formed a high-level EAC and we have added the private sector people in different groups,” he added.

He also said that the Pakistan Institute of Development Economics (PIDE) will help the EAC groups in order to implement the recommendations furnished by these verticals.

The groups will brief Prime Minister Imran Khan on a monthly basis about the implementation of the plan, he announced.

He also said that there are positive sentiments coming from overseas chambers as well as the business community. Pakistan textile exports grew by 16% and we have also started manufacturing mobile phones which is a good omen for the country, he added.

The minister for industries and production Khusro Bukhtiyar said that Covid-19 hit Pakistan’s manufacturing sector badly despite the fact, Large Scale Manufacturing grew by 15% due to prudent policies of government including industrial support packages, relief and incentives to export-oriented industries, duty exemption under China-Pak Free Trade Agreement-II and Electricity and gas subsidies.

He also said that the government has also announced various policies such as Auto, SME and Mobile Device Manufacturing Policies and these have not only generated income but also employment.

The minister explained that 236,664 automobiles were sold in 2020-21 while production in 2021-22 will cross 300,000.

He also said that the government will promote and develop the allied sectors of LSM under the SME policy. In addition, the ministry has not only simplified the regulatory regime but also we have announced certain tax incentives in this budget.

Under the Mobile Device Manufacturing Policy, Pakistan is now manufacturing mobile phones. the domestic production was 12.27 million (including 5,500 exported) from January to July 2021 whereas 8.29 million were imported.

He also announced that M/s Samsung will start local manufacturing shortly.

He also said that the government will now focus on the expansion of production capacity in these sectors to meet expanding requirements.

The minister also revealed that the government is going to establish a Karachi Industrial Park on 1500 acres of Pakistan Steel Mill land which will cost around Rs. 7 Billion. The project will further augment the mercantile potential of Karachi, he added.

Minister for National Food Security Fakhar Imam said new initiatives are being launched to strengthen the agriculture sector.

He said the country witnessed a significant increase in major crops. He said our focus is now on improving cotton production by providing quality seeds and other inputs to the farmers at reduced rates.

He said the research institutes will be upgraded to achieve high productivity in the agriculture sector. He said the government is giving special emphasis to improve the living standards of the farmers. For this purpose, we increased the support price of wheat from fourteen hundred rupees per forty kilograms to eighteen hundred rupees per forty kilograms. Efforts, he said, are also afoot to upgrade the livestock sector.

Adviser on Commerce and board of investment Abdul Razak Dawood said the government’s target is to bolster exports. He said export targets are being achieved.

He said we want to rationalize our imports by encouraging local production. He expressed satisfaction over the local manufacturing of mobile phones.

Razak Dawood said we have done the tariff rationalization and fifty percent of raw material being imported is duty-free. He said this facility will be further expanded in the next budget.

Dr Ishrat Hussain also emphasized the need for empowering the local bodies in order to provide basic amenities to the people at their doorsteps. A plan has been prepared to revamp the state-owned enterprises, he added.

While giving an answer to one question, the Finance Minister ruled out the possibility of coming out of the IMF program.

“Our negotiations with the IMF are going on and I will also visit Washington in October for one on one talks with the international lender, “he added.

In another question, he said that I cannot comment on the last three years’ performance but can share the details of work done during my tenure.

“Our intent is noble and we have prepared these plans to put the economy on a growth trajectory and I am also ready to sit with the opposition parties on finalizing the character of the economy,” he added.

Source: Pro Pakistani

National Bank of Pakistan reported profit of Rs. 17 billion during the period of January to July 2021 as compared to Rs. 15.1 billion profit reported in the similar period of the last year, showing an increase of 12.60% year-on-year.

According to the financial results, the earning per share of the bank increased to Rs. 7.97 from 7.14.

The revenues decreased 2% from the prior-year period, primarily reflecting the impact of drop in the policy rate and normalization in market activity. Gross mark-up/interest income of the bank closed at Rs. 108 billion,which is 25.7% below, YoY.

Likewise, the interest/mark-up expense also dropped significantly by 37.4% to Rs. 60.6 billion. Consequently, net interest/mark-up income of the Bank stood at Rs. 47.4 billion, i.e. marginally 2.2% lower, YoY.

The given the subdued trade activity during most of period under review, non-mark-up / non-interest earning of the bank closed1.6% lower at Rs. 18 billion. Accordingly, total revenue of the bank closed 2.0% down YoY at Rs. 65.4 billion.

Despite inflationary pressures and higher operational costs amidst the pandemic, administrative costs remained well controlled and recorded a marginal increase of 3.7% YoY to close at Rs. 30.6 billion.

Proactively moving from ‘incurred’ to ‘expected’ credit loss model, the bank created adequate provision charge of Rs. 6.8 billion to make its balance sheet more resilient in the prevailing circumstances. Positively, provision charge for the period is 57% below the Rs. 15.6 billion provision charge in 1H’20.

The board also deliberated on the impact of COVID 19 pandemic and its specific implications for the banking industry in Pakistan. Being categorized as a systemically important bank in Pakistan, NBP has depicted strong resolve to serve its customers across the country despite facing significant operational challenges.

The bank is making progress on its strategy refresh across its consumer and institutional businesses for playing its systemically important role in the economy while maintaining a strong and resilient balance sheet to deliver performance for shareholders. The management is committed to modernising the Bank to achieve excellence in risk and control environment, business processes and service quality to clients.

For the year 2021 and beyond, the bank’s business strategy will continue to focus on financing and supporting underserved sectors including SME, Microfinance, Agriculture Finance and the PM’s Low-Cost Housing initiative on a priority basis.

Source: Pro Pakistani

Toyota Indus Motor Company (IMC) has announced its financial results for the year ended June 30th, 2021.

The Board of Directors of Indus Motor Company Ltd. (IMC) met on August 26, 2021, to review the Company’s financial and operating performance for the year ended June 30, 2021.

The company posted a profit of Rs. 12.82 billion during the year, up by a massive 152% as compared to a profit of Rs. 5.1 billion in the same period last year. Along with the result, the company also announced a cash dividend of Rs. 12 per share.

The Company posted net sales revenue of Rs. 179.2 billion, a 108% increase compared to Rs. 86.2 billion last year.

During the year, sales volume of CKD and CBU vehicles increased by 100%, to 57,731 units as against 28,837 units sold last year. Consequential to increased demand, the Company produced 59,187 units for the year, as compared to 28,519 units produced in the same period last year.

According to the official statement released by the company, the increase in turnover and profitability for the year was mainly due to higher CKD and CBU volumes, primarily due to improved economic conditions and healthy demand generated on account of the launch of the facelift models of Corolla, Hilux and Fortuner along with wider acceptance of Toyota Yaris, the best-selling sedan for the year.

The profitability also increased on account of an increase in other income mainly due to return on placements on account of improved fund position of the Company.

Chief Executive, Ali Asghar Jamali, expressed, “Alhamdolillah, we have had a very good year despite the frequent challenges arising owing to COVID-19 pandemic. We have not compromised on work standards and continue to maintain the high quality of our vehicles, following the kaizen philosophy of continuous improvement, and diligently practicing the ‘Toyota Way’ throughout our operations. This helped the Company to achieve consistent levels of excellence.”

He further added, “Since its inception, IMC has supported the Government’s ‘Make in Pakistan’ initiative. We really appreciate the Government’s measures to reduce Federal Excise Duty and Additional Custom Duty. The decrease in duties and taxes resulted in a reduction in the prices of vehicles in July 2021, which will eventually boost the industry to continue the positive momentum. We would request the Government to consider a reduction in FED on Double Cabin 4×4 LCVs, as well. Additionally, the Government’s consistent effort to promote the local automotive industry in the Hybrid sub-sector is noteworthy. Its intent to locally develop Hybrid Electric Vehicles (HEVs), Plug-in Hybrids (PHEVs) and Battery Electric Vehicles (BEVs) to mitigate climate change and reduce dependency on oil imports is appreciated.”

Based on the results, the Board of Directors announced a final dividend of Rs. 36.5 per share, making the annual dividend for the year Rs. 103.5 per share.

Other income of the company saw an increase of 74% to Rs. 5.57 billion as compared with Rs. 3.20 billion due to higher cash balance from increased order intake. Earnings per share of the company increased to Rs. 163.21 from Rs. 64.66.

INDU’s share at the bourse closed at Rs. 1,368.32, up by Rs. 5.28 or 0.39%, with a turnover of 50,500 shares on Friday.

Source: Pro Pakistani