TDAP sponsored 8-member Electric Fan Manufacturers’ and Exporters’ delegation to visit UAE fromMarch 26-28, 2018

Karachi, March 29, 2018 (PPI-OT): TDAP sponsored trade delegation of electric fans manufacturers and exporters which is on three day visit to UAE from 26th March, called on Consul General of Pakistan in Dubai on the first day of their visit. The Consul General welcomed the delegates and appreciated TDAP’s efforts for finalizing trade delegation to UAE. He wished the delegates best of luck for the business meetings and visits.

The delegates later had a business to business meetings with Pakistani Business council Dubai and leading buying houses in crown plaza hotel Dubai. Pakistan’s Commercial Counsellor in Dubai briefed the buyers about the electric fans industry of Pakistan and its potential. Mr M Afzal and Mr Azhar Aslam from electric fan association discussed about various categories offans being made and exported by Pakistan and said that Pakistan has potential to meet electric fans demand of UAE.

The delegate later attended Pakistan day celebration at Grand Hayatt Hotel in Dubai on the invitation of Consul General of Pakistan. On the second day of their visits, the delegates will visit Abu Dhabi and have business meeting with various business groups interested to meet their electric fans need from Pakistan.

For more information, contact:
Director
Information and Communication Division
Trade Development Authority of Pakistan (TDAP)
3rd Floor, Block A, Finance and Trade Centre,
P. O. Box No. 1293, Shahrah-e-Faisal,
Karachi 75200, Pakistan
UAN: +92-21-111-444-111
Tel: +92-21-99206487-90, +92-21-99201526
Fax: +92-21-99206461, +92-21-99201526
Email: tdap@tdap.gov.pk, farooque.memon@tdap.gov.pk
Website: www.tdap.gov.pk

JCR-VIS Maintains Ratings of Jamshoro Joint Venture Limited –

Karachi, March 28, 2018 (PPI-OT): JCR-VIS Credit Rating Company Limited (JCR-VIS) has maintained the entity ratings of Jamshoro Joint Venture Limited (JJVL) at ‘A+/A-1’ (Single A Plus/A-One). Outlook on the assigned rating has been revised from ‘Positive’ to ‘Stable’. The previous rating action was announced on January 03, 2017.

The ratings take into account JJVL’s prominent position in the LPG business. The ratings also incorporate company’s largely sustained profitability mainly on account of higher product prices and better propane recovery. The ratings also take into account declining gas volumes, adversely impacting quantum of processing fee and product sales. Timely recoupment of capacity utilization is an important rating factor.

The quantity of gas processed declined during FY17 on account of reduced production of gas from Badin fields that resulted in lower sales revenue. However, gross margins improved on the back of higher prices of both products, improved propane recovery, and decrease in stores and spares consumed.

Despite increase in debt levels, gearing of the company decreased on account of notable increase in equity base. Funds from Operations (FFO) stood higher on account of lower mark-up and tax related payments during FY17. Given increase in debt levels, FFO to total debt remained at 0.26x (FY16: 0.27x). With declining long-term debt and the related repayments, debt service coverage remained strong.

JJVL has 25% stake in ordinary share capital of Pakistan Gasport Limited (PGPL), an LNG import tolling terminal. CoD has been achieved in Jan’18. The management expects the venture to generate stable dividend stream for the company, going forward.

For more information, contact:
CFA
JCR-VIS Credit Rating Company Limited
VIS House, 128/C,
25th Lane off Khayaban-e-Ittehad,
Phase VII, DHA, Karachi
Tel: +92-21-35311861-72
Fax: +92-21-35311873
Email: sobia@jcrvis.com.pk

Punjab invites investors to set up industries in Industrial Estates

Islamabad, March 29, 2018 (PPI-OT): Shairyar Salim, Chief Executive Officer along with Ijaz Azeem, General Manager Marketing of Punjab Industrial Estate Development and Management Company (PIEDMC) visited Islamabad Chamber of Commerce and Industry and gave a detailed presentation to the business community about available investment opportunities in the industrial estates in Punjab. He said PIEDMC has established 9 industrial estates in Punjab some of which were ready for investment and some were under construction.

Shairyar Salim said that the industrial estates developed by PIEDMC in Punjab have created 0.84 million direct and 1.680 million indirect jobs in Punjab. He said that Quaid-e-Azam Apparel Park and industrial estates in Rahim Yar Khan, Bhalwal, Vehari, Chunian and Bahawalpur were ready for setting up industrial units as infrastructure and all required utilities and facilities were available in these industrial estates.

He said that Bhalwal Industrial Estate was near to the investors of Islamabad/Rawalpindi region and they should explore investment opportunities in the said estate. He assured that ICCI proposal for identifying land for a new industrial estate near the twin cities would be given serious consideration and his company would cooperate in execution of this project.

Speaking at the occasion, Sheikh Amir Waheed, President, Islamabad Chamber of Commerce and Industry said that a new industrial estate was badly needed in Islamabad/Rawalpindi region as all existing industrial estates in this area have reached saturation. He said that PIEDMC has good expertise in developing industrial estates and it should help ICCI in identifying land for new industrial estate for Potohar Region. He said ICCI was ready to executive such project in collaboration with PIEDMC on public-private partnership basis.

Muhammad Naveed Senior Vice President and Nisar Mirza Vice President ICCI thanked the representatives of PIEDMC for briefing local business community about investment opportunities in Punjab’s industrial estates. They said that ICCI would form a delegation of local industrialists to visit Bhalwal Industrial Estate in order to explore investment opportunities. Khalid Javed, Tariq Sadiq, Yasir Sakhi Butt, Abdul Rehman Khan and other local industrialists also spoke at the occasion and discussed possibilities of setting up industrial units in the Punjab’s industrial estates.

For more information, contact:
Islamabad Chamber of Commerce and Industry (ICCI)
Chamber House, Aiwan-e-Sanat-o-Tijarat Road,
Mauve Area, G-8/1,
Islamabad, Pakistan
Tel: +9251 225 0526, 2253145, 8432676
Fax: +9251 225 2950
Email: icci@brain.net.pk
Website: www.icci.com.pk

PACRA Assigns Initial Entity Ratings to Rustam Towel (Private) Limited

Lahore, March 29, 2018 (PPI-OT): Rustam Towel (Pvt.) Limited (Rustam Towel) is small scale export oriented towel manufacturer, a family run business concern. Textile industry overall is witnessing suppressed margins due to international lower commodity price and higher cost of doing business in Pakistan. However, towel industry continues to surge forward on the back of Pakistan’s cotton which is more suitable for coarse counts yarn; resulting into better margins, which is also reflected in Rustam Towel’s profitability. On standalone basis, the company’s concentration levels – both customer and geographical – are well managed with company having policy of capping revenue from single customer to 20%.

The ratings reflect relatively stretched financial risk profile due to higher working capital requirements as compared to industry due to lengthy net cash cycle. Short term borrowings exceeds working capital requirement resulting in asset-liability mismatch. Going forward, in absence of any further debt-driven expansion in the medium-term and better working capital management, financial profile is expected to become better.

The ratings are dependent on sustaining margins while improving business volumes. Meanwhile, prudent working capital management and eliminating mismatch would remain critical. Strengthening of governance framework for better oversight of strategic affairs, and appointment of enlisted auditor with SBP, is considered essential.

For more information, contact:
Analyst
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore – Pakistan
Tel: +9242 586 9504 -6
Fax: +9242 583 0425
Email: hammad.rashid@pacra.com
Web: www.pacra.com

Opening of concerned branches to facilitate the collection of Government duties/taxes on March 31, 2018

Karachi, March 29, 2018 (PPI-OT): In order to facilitate the collection of Government duties / taxes, NIFT will provide a special clearing facility on the advice of State Bank of Pakistan on Saturday, March 31, 2018 at 5:00 p.m. All banks are, therefore, advised to keep their concerned branches open on March 31, 2018 (Saturday) till such time that is necessary to facilitate the special clearing for Government transactions.

For more information, contact:
Chief Spokesman,
State Bank of Pakistan (SBP)
Central Directorate
I.I. Chundrigar Road, Karachi, Pakistan
Tel: +92-21-111-727-111
Tel: +92-21-39212562
Fax: +92-21-39212433 – 39212436
Email: chief.spokesperson@sbp.org.pk
Website: www.sbp.org.pk

Engro Foods Limited inks MOU with JS Bank to empower Dairy Farmers through PMYBL Scheme

Karachi, March 29, 2018 (PPI-OT): Engro Foods Limited being the 2nd largest Dairy Company in Pakistan has collaborated with JS Bank under the banner of Prime Minister Youth Business Loan (PMYBL) program to empower the dairy farmers with financing facilities. This was an initiative to build sustainable livelihoods for the dairy farmers through monetary support and knowledge transfers.

Engro Foods dairy farmers will have the opportunity to upgrade their farms, procure machinery or livestock, with financing through JS Bank. This is another step by Engro Foods in its journey for socio-economic empowerment of the dairy farmers in Pakistan. Engro dairy farmers participating in this program will be able to access up to PKR 2 Million in ready funds for up to 8 years, at a minimum mark-up rate of just 6% per annum.

Speaking at the occasion, Mr. Ali Ahmed Khan, Managing Director Engro Foods Limited said, “Engro Foods remains committed to empower the dairy farmers at grass root level. PMYBL Scheme is a great effort to increase sustainability of the dairy farmers who have zero access to financing solutions. Through this partnership with JS Bank, we look forward to increase the livelihoods and build the capacity of dairy farmers. At Engro Foods we believe that it is our responsibility and we remain committed to enable the evolution of the dairy industry in Pakistan”.

On behalf of JS Bank, Mr. Kamran Jafar, Group Head – Corporate and Retail Banking Group said “This agreement will serve as a development catalyst and increase financial inclusion nationwide. Through the Prime Minister Youth Business Loan (PMYBL) program, JS Bank is providing easy and accessible avenues for financial independence and growth to deserving farmers.”

This ceremony was attended by the top management of Engro Foods Limited (EFL) Mr. Ali Ahmed Khan, Managing Director, Mr. Imran Hussain, Director Finance, Mr. Naveed Saeed, Chief Corporate and Regulatory Affairs Director, Mr. Zeeshan Ur Rab, GM Milk Procurement and Agri Services and Ms. Nageen Rizvi, Head of Corporate Communications and Sustainability. On behalf of JS Bank Mr. Kamran Jafar, Group Head C and RBG, Mr. Babbar Wajid Head of Business and Product Development, Mr. M. Ahsan Amjad Head of Retail Assets C and RBG, Mr. Muhammad Faisal, Business Head-Corporate South and Mr. Faisal Asghar Business Head Wholesale, Private and International Banking were present along with their teams.

Through this alliance, Engro Foods Limited and JS Bank will provide an ecosystem of mutually supporting values and growth to farmers. This supportive structure will help enhance milk production at a national level through fiscal support by JS Bank while best industry practices and industry related information is provided to key stakeholders by Engro Foods.

For more information, contact:
Engro Foods Limited
8th Floor, Harbour Front Building,
Marine Drive, Block 4, Clifton,
Karachi, Pakistan
Tel: +92-21-35296000

Minister ensures relief to traders of Multan, McLeod roads

Lahore, March 29, 2018 (PPI-OT): Provincial Minister for Industries Sheikh Alauddin has ensured relief to the businessmen of Multan Road and Mcleod Road saying that their issues would be taken up with the Chief Minister Punjab. He was speaking at the Lahore Chamber of Commerce and Industry. The LCCI President Malik Tahir Javaid, Senior Vice President Khawaja Khawar Rashid, Vice President Zeeshan Khalil, Muhammad Arshad Chaudhry, Bao Bashir, Mian Muhammad Nawaz, Fahim ur Rehman Saigol and Awais Saeed Piracha spoke on the occasion.

Representatives of Multan Road Industrial Association informed the minister that demolition of industries for the sake of Hadyara Drain Project is not a good plan as it would not only deprive thousands of people of their jobs but would also air a negative message to the investors. They said that demolition of industries at Multan road would hit economy of the province hard besides applying reverse gear to the government efforts aimed at progress and prosperity.

They said that government should shelve the plan as not only the industry but government would also be the looser as closure of hundreds of industrial units of Multan Road would cause huge lose to the national exchequer in term of taxes and utility bills etc. The Minister said that business community is the backbone of the economy and their issues will be taken up with the Chief Minister Punjab at the earliest.

On the occasion, the LCCI President Malik Tahir Javaid formed two committees to settle down the issues of the businessmen of Multan Road and Mcleod Road. The committee for the businessmen of Multan Road will have Sheikh Alauddin, Malik Tahir Javaid, Muhammad Arshad Chaudhry, Shahzad Azam Khan and Tahir Qadeer while the other will have Sheikh Alauddin, Malik Tahir Javaid, Muhammad Talat and Shahzad Khan in their folds.

The LCCI President said that reservations of the business community must be addressed to ensure a business-friendly atmosphere in the country. He said Punjab is the linchpin of Pakistan’s economy and it has highest contribution in the GDP of the country. The industrial sector of Punjab consists of large scale and small scale manufacturing, mining and construction etc.

As per the study recently conducted by LCCI, the share of Punjab in the national value added in Large Scale Manufacturing fell slightly from 49.3% to 48.9% during 2010-11 to 2014-15. However, Punjab has dominating presence in Small Scale Manufacturing with a share of 71% in national value added. Due to consistent boom in construction industry, the share of Punjab has significantly increased from 58% in 2010-11 to 75% in 2014-15.

He said over the course of our economic history, the different experiments with federal and provincial industrial polices led to low industrial growth in Pakistan. Similarly, the industry which is paying its taxes judiciously is facing trust deficit. It is need of the hour to stimulate industrial growth, leading to higher GDP growth.

The LCCI President further stated that the industrial policy of Punjab province should incentivize the industry to move up the technology ladder. It will be even better that the industrial policy should focus on private sector led investment strategy which must lead to greater private investments in mega projects. This would balance the effect of crowding out private sector in terms of getting the bank credit. Furthermore, the banks should arrange sufficient funds for industrial credit rather than focusing more on short term financing to general consumers.

He said that the prices of plots in industrial estates and the opportunity cost of setting up hi-tech industry are fairly high. Foreign investors are taking Pakistan as a case of premature de-industrialization. In this scenario, the government should provide basic infrastructure to private sector on lease so that the pace of industrialization could be increased. Malik Tahir Javaid said that for the swift implementation of these requirements in industrial sector, the discretionary powers of the government officials be curtailed and the role of chambers of commerce and trade associations should be enhanced.

The LCCI President said that many of our members are having industrial units on the main roads of city which were established around Lahore under Rural Industrial Scheme. Our proposal was favourably considered that these industries should be regularized at their existing locations. The Secretary Industries has agreed in this connection and submitted a report to provincial government for approval. We are still waiting for the required notification.

For more information, contact:
Information Department
Lahore Chamber of Commerce and Industry (LCCI)
11-Shahrah-e-Aiwan-e-Tijarat,
Lahore -54000, Pakistan
Tel: +92-42-111-222-499
Fax: +92-42-36368854
Website: www.lcci.org.pk