Category: Business

Alleviating Concerns: SBP Management Visits OICCI for Interactive Session with Members.

Karachi (Muhammad Yasir) The Overseas Investors Chamber of Commerce and Industry (OICCI) members met with Dr. Murtaza Syed, Acting Governor, State Bank of Pakistan (SBP), Dr. Inayat Hussain, Deputy Governor, SBP and Sima Kamil, Deputy Governor, SBP for a discussion on urgent fiscal and monetary policy measures that need to be taken to help stabilize Pakistan’s economy.

Ghias Khan, President OICCI and Abdul Aleem, Secretary General, OICCI led the discussions and raised member concerns related to the pre-approval procedure of LCs for import of machinery and spare parts, timely remittance payments, approval exemptions of shipping values being too low, and other operational issues. It was stressed upon the SBP leadership to set timelines so that industry supply chain is not compromised.

The SBP team gave a comprehensive overview of the current economic situation and the planned strategy to tackle issues in 2023. Pakistan is primarily a consumer-driven economy with consumption driving up to 95% of the GDP. The SBP team was confident that Pakistan’s problems were temporary and urged the OICCI members to work on improving exports to help balance the exchange rate fluctuations and currency depreciation.

Ghias Khan stated, “This meeting was a much needed first step towards the recovery of Pakistan’s economy. It is imperative that we implement cogent measures to halt our pattern of circular debt. The SBP has always played a critical role in stabilizing Pakistan’s economy, and I am confident that under Dr. Murtaza Syed’s leadership we will be able to withstand the current economic climate while charting a path for growth.”

Dr. Murtaza Syed commented, “SBP is taking tough measures and making difficult decisions to help avert the economic crisis. Global inflationary pressures coupled with a procyclical expansionary fiscal policy during a pro-cyclical period is one of the main reasons Pakistan is at this crossroads today. Once these measures are implemented and the IMF loan is received, the pressures on the economy will ease, specifically with regards to the depreciating Rupee.”

OICCI serves as a platform to promote foreign investments and plays a major role in the growth of commerce and industry in the country. Collectively, OICCI invested USD 2.4 billion last year, contributing one-third of the country’s total tax collections.

Mastercard New Payments Index 2022:

Consumers in Pakistan embrace digital payments

• 89% of consumers in Pakistan have used at least one emerging payment method in the last year, with usage expected to increase further.
• Adoption of biometrics, Buy Now Pay Later (BNPL), open banking and account-to-account payments are anticipated to continue accelerating.
• Gen Z and Millennials are leveraging more digital payment methods and are more open to buying virtual products in the metaverse.

Karachi (Muhammad Yasir) Adoption of a broader range of digital payment methods is accelerating in Pakistan and the technology fueling the future of payments is already here, according to Mastercard’s New Payments Index 2022. In addition to being aware of solutions like digital cards, biometric payments, BNPL (Buy Now Pay Later), and open banking, consumers in Pakistan are increasingly and actively using these solutions in their everyday lives.

Mastercard’s New Payments Index 2022 found that 89% of people in Pakistan have used at least one emerging payment method in the last year. The research shows that 31% have used a digital money transfer app and 19% used biometric payments. Consumers are also making purchases in increasingly diverse ways, for example through voice assistant, through digital assets, through social media apps, and through mobile apps.

Usage of digital payments increasing, use of cash declining

While traditional payment methods still have traction, one in ten (12%) consumers in Pakistan indicated they used less cash in the past year. By contrast, 68% of Pakistan users (compared to 61% globally) increased their use of at least one digital payment method in the last year, including digital cards, SMS payments, digital money transfer apps and instant payment services. These behaviors are expected to continue, with comfort and security key to growing adoption.

The Index confirmed security is top of mind when deciding what payment methods to use, globally and in Pakistan (48%). In the region, security is followed by considerations for ease of use and promotions. Highlighting sustainability as a key driver, 28% of Pakistan consumers said they also consider social and environmental benefits.

“It is exciting to see the increased adoption of emerging payment methods and consumers’ eagerness to reap the benefits of the digital economy in Pakistan and across the region. Mastercard is committed to understanding the needs and preferences of the people in the markets we serve, and we will continue partnering with the public and private sectors to develop market-relevant solutions as we build an inclusive and connected digital future that works for everyone,” said J.K. Khalil, Cluster General Manager, MENA East, Mastercard.

The Mastercard New Payments Index 2022 further shows:

High awareness of Buy Now, Pay Later (BNPL) Installments as a budgeting tool

The majority of Pakistan consumers have heard of BNPL with 66% saying they are familiar with the concept, and over a third (36%) are already comfortable using it today. Consumers want the flexibility and convenience of BNPL, but with the sense of security associated with a trusted provider like a bank or payment network.

Those that have used BNPL find it useful for emergency and big-ticket purchases, as well as increased purchasing power. Consumers also find BNPL useful for unique use cases, including as a budgeting and financial planning tool.

EZ Wage Partners with Bank Alfalah to Revolutionize Financial Wellness in Pakistan

Pakistan (Muhammad Yasir) Singapore-based EZ Wage, a leading regional financial wellness platform, has signed an agreement with Bank Alfalah as its Digital Payments Partner to facilitate Earned Wage Access (EWA) in Pakistan with secure payment transfers. Under the agreement, EZ Wage will route payments in real-time to its users through Bank Alfalah’s platform.

EZ Wage’s state-of-the-art mobile app enables employees to withdraw a portion of their earned salary before their scheduled payday. This earned wage access facility allows them relief in case of monetary emergencies, such as an unexpected expense due to a medical emergency in the family. The financial wellness platform has already signed up companies employing more than 135,000 salaried individuals across Pakistan and is rapidly adding more companies that are interested in providing this revolutionary employee benefit to their employee base. EZ Wage will also be introducing additional offerings specifically geared towards improving employee financial literacy and independence.

 The founder of EZ Wage, Fatima Batool, hopes to bring about a revolution in financial wellness for the masses in the emerging markets of South/Southeast Asia. She is focused on the women segment in particular, which in her opinion is the most marginalized segment in terms of financial independence.

Mr. Yahya Khan, Group Head, Digital Banking Group at Bank Alfalah stated “Bank Alfalah through its diverse and ever-evolving services portfolio is empowering employees and working towards the financial wellness of the masses in Pakistan. This FinTech partnership is another step towards our objective to offer seamless services in order to digitize the payments eco-system and revolutionize daily use finance.

Fatima Batool mentioned, “We are proud to partner with Bank Alfalah to boost financial inclusion and independence by making access to earned wages an option for employees across Pakistan. A dedicated and motivated workforce is the engine of growth in any economy and both EZ Wage and Bank Alfalah aim to further financial wellness with this partnership.”  

Lahore (Muhammad Yasir) The day-2 of Pakistan Auto Show hosted a symposium on “PAKISTAN AUTOMOTIVE INDUSTRY 2040 “A PARADIGM SHIFT””. The motive of the 2nd Edition of PAAPAM Symposium 2022 was to provide a platform for key stakeholders of the industry and the Original Equipment Manufacturers (OEM), to come together and share their insights for sustainable growth and suggestions for policy realignments. The experts will also be creating solutions for the current challenges and opportunities in the Auto Engineering industry. The Chief Organizer of this Symposium – Iftikhar Ahmed stated that:

The Event will focus on the Industry-Government-Academia Linkage, to engage the stakeholders, engineers, Original Equipment Manufacturers (OEM), Auto-Parts Manufacturers (APM) and the end-users, to understand the evolving needs of this industry and devise more suitable policies for sustainable development of our sector and enhance its contributions to the national economy.” Chief guest Secretary Industries , Ahmed Javed Qazi , Guest of Honor Chairman PEC, Najib ullah Haroon , President and CEO of Honda Atlas Cars (Pakistan) Limited –TAKAFUMI KOIKE , Chairman of Millat Tractors Limited – Sikandar Mustafa Khan, Mr. Haroon Sharif Institutional economist & former minister of state, Chairman of Engineering Development Board – Almas Hyder and Prof. Dr. Shahid Munir, Chairman Punjab Higher Education Commission, were among the most prominent speakers at PAAPAM Symposium 2022.

The Pakistan Auto Show 2022 will attract over 100,000 visitors from 29th to 31st July. It is the largest exhibition of automobiles in the country, held at the Expo Centre in Lahore.

This valuable initiative of the ‘Pakistan Association of Automotive Parts & Accessories Manufacturers’ (PAAPAM), represents over 3000 large, medium & small industries from all over Pakistan. The theme of this year’s event is; “MADE IN PAKISTAN”. The diverse categories of exhibitors will include; Passenger Cars, Trucks, buses, Tractors, Rickshaws, Motorcycles, Auto parts Manufacturers, Services providers, Machinery makers, Tool-makers, Antique cars and Heavy motorbikes along with related service industries like accessories, Tracking & insurance, etc.

It will feature fascinating innovations and technologies, while highlighting CSR, traffic-safety and public awareness campaigns. FREE Exhibitors’ Directories are being distributed among the visitors. The quantum of local parts used for domestic car-assembly has risen substantially over the last 10 years, raising Pakistan among the top 40 automobile-manufacturing countries. It contributes major revenues to the national exchequer, so the Government must ensure a conducive environment to nurture more investments and growth.

Lahore (Muhammad Yasir) The Board of Directors of Bank Alfalah Limited (BAFL), in its meeting held on July 28, 2022, approved the bank’s financial results for the six months ended June 30, 2022.

The bank announced profit after tax of PKR 8.703 billion, up by 25.5%. EPS stood at Rs. 4.90 (Jun 21: Rs. 3.90). The Board has approved an interim cash dividend of Rs. 2.5 (last year: Rs. 2.0) per share.

The Bank’s deposit base stood at Rs. 1.318 trillion at the end of Q2’22, with YoY growth of 28.6%. The Bank continues to outpace the industry in deposit growth driven by a strong momentum in its current deposits which showed market leading growth of 25.7% YoY. Moreover, BAFL’s CA mix at 45.5%, remains one of the strongest in the industry which has been a result of the bank’s continued focus on market penetration serving more and more customer segments and effective branch expansion strategy.

Furthermore, despite challenging market fundamentals, the Bank’s credit performance was strong in the first half of 2022 with Gross Advances reaching Rs. 755.340 billion, showing a growth of 18.3% YoY. In anticipation of expected credit headwinds caused by the current economic stress, the Bank has taken an additional general provision of Rs. 2.750 billion during the quarter and subjectively downgraded a few customers showing credit weakening. Accordingly, the coverage ratio stands at 109.8% while the infection ratio remained stable at 3.5%.

The Bank remains adequately capitalized, and CAR was well above the regulatory requirement with 14.64% as at June 30, 2022.

This momentum will continue, despite the prevailing uncertainty, since the Bank is committed to its strategy of growth, customer centric approach and innovation.

Karachi (Muhammad Yasir) K-Electric Limited organized the Extra-Ordinary General Meeting (EOGM) on Friday, 29 July, at a local hotel. The purpose of the Meeting, which was attended by Shareholders in person and via a video link, was to elect the Directors in place of the retiring Directors. The following persons have been elected/appointed as Directors of K-Electric Limited for a term of three years commencing from 29 July 2022:

1. Adeeb Ahmad
2. Arshad Majeed Mohmand
3. Boudewijn Clemens Wentink
4. Ch. Khaqan Saadullah Khan
5. Dr. Imran Ullah Khan
6. Mark Gerard Skelton
7. Mubasher H. Sheikh
8. Muhammad Kamran Kamal
9. Muhammad Zubair Motiwala
10. Saad Amanullah Khan
11. Sadia Khuram
12. Shan A. Ashary
13. Syed Moonis Abdullah Alvi

K-Electric (KE) is a public listed company incorporated in Pakistan in 1913 as KESC. Privatized in 2005 KE is the only vertically integrated utility in Pakistan supplying electricity within a 6500 km square territory including Karachi and its adjoining areas. The majority shares (66.4%) of the company are listed in the PSX owned by KES Power, a consortium of investors including Aljomaih Power Limited of Saudi Arabia, National Industries Group (Holding), Kuwait, and the Infrastructure and Growth Capital Fund (IGCF). The Government of Pakistan is also a minority shareholder (24.36%) in the company.

Lahore (Muhammad Yasir)  Makhdoom Syed Murtaza Mehmood Federal Minister of Industries & Production inaugurated the Pakistan Auto Show 2022 alongwith Guest of honor Chairman EDB, Mr. Almas Haider, President LCCI, Mr. Nauman Kabir and Former President FPCCI and LCCI, Mr. Anjum Nisar at the Expo Centre in Lahore. The event has been organized by the Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) and will run from July 29th – 31st 2022.

Event features more than 153+ exhibitors comprising of local and international auto-manufacturers and related enterprises. PAAPAM represents over 3000 large, medium and small industries all over Pakistan. This year’s show is themed of “MADE IN PAKISTAN”. Renowned companies exhibited their latest parts and technologies, including 150 auto parts manufacturers.

Visitors will be able to take test-drive tracks for the latest cars of MG, Toyota, Suzuki and Honda. Also, Motorway Police Kiosk will be there to facilitate the visitors by engaging them on how to improve their driving and offering Learner’s Driving Licenses on the spot. While addressing the media at the inaugural ceremony, the chief guest Makhdoom Syed Murtaza Mehmood Federal Minister of Industries & Production stated “The government’s strong commitment to this industry helps to encourage large-scale investments and creates a business-friendly environment for the automotive and engineering sectors as well.

I offer my heartiest congratulations to our local industrialists and engineers who have achieved remarkable success in establishing a robust engineering sector, which is generating remarkable new opportunities for value-added exports. The automobile industry of Pakistan is a cornerstone of the national economy. It not only vitalizes the economy but plays an essential role in elevating Pakistan’s image as a progressive country with a thriving industrial base.”

Pakistan Auto Show 2020 Chief Organizer and PAAPAM former chairman Syed Nabeel Hashmi said “Pakistan Auto Show 2022 is setting new benchmarks and trends for the automotive industry. Today, this mega event attracts more than 100,000 visitors from all over Pakistan and internationally. Over 200 international buyers and well over 100 international visitors will be attending the largest auto show in Pakistan.” The government needs to prepare long-term plans and support industries accordingly. The Chairman of Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM) – Abdur Razzaq Gauhar stated that: People are passionate about seeing the latest revolutionary technologies being deployed in Pakistan. Some of the participants this year include global automobile brands, along with spare-parts manufacturers, component suppliers, Original Equipment Manufacturers (OEM vendors), automobile traders, investors, buyers and enthusiasts, who want to expand their business networks and gain more information about the innovations and products in this sector.”

The inaugural day at the show, saw an overwhelming response from industry stakeholders, international large-scale buyers and diverse consumer segments, as the Pakistan Auto Show features; cars, tractors, trucks, buses, 4X4, motorcycles, three wheelers and exotic cars, while promoting a wide array of advanced technologies and solutions, including; engines, casting, forging, sheet metals, jigs and fixtures, along with electronics, car-paints, tools, tires, batteries, plastic parts, rubber parts and accessories.

Lahore (Muhammad Yasir) Infinix was selected as one of the TOP 20 Rising Stars according to the latest “Top 50 Kantar BrandZ Chinese Global Brand Builders 2022 ranking and report” released by Google and Kantar on July 27th, 2022. Being included in the chart represents advancements in attracting the hearts and minds of consumers and providing consumers a high-level sense of value, coming from the Infinix brand.

“We’re absolutely thrilled to be on the charts! A massive thanks go out from us for recognizing the efforts we’ve made in the past few years to empower young consumers all around the world. Alongside providing stylish and first-in-class products to consumers in emerging markets, we also aim at creating distinctive brand stories to build up a sense of value and shape perceptions through digital interaction. We’ve faced some incredible challenges due to global disruptions, but we are sure we’re moving forward toward future success.” Managing Director of Infinix, Benjamin Jiang said.

In the panel talk “Think with Google” held by Google China, it is mentioned that Infinix is the only company in the 3C industry that was selected as the 20 rising stars in the “Top 50 Kantar BrandZ Chinese Global Brand Builders 2022 report”. In this report, Kantar and Google adopt industry-leading brand valuations, alongside in-depth research from the world’s most extensive brand equity study, which involved around 4 million consumer interviews covering 18,500 brands across 512 categories in 51 markets.

The figure in the report shows that during the previous year, Infinix’s brand power increased by 20%, ranking second among all consumer electronic brands. Infinix’s branding and storytelling have stimulated new interest in technology and high loyalty among consumers despite lower levels of brand awareness. The average consideration rate of the Infinix among consumers who are aware of the brand is on par with those in the Top 50 Chinese Global Brand Builders Ranking. Infinix’s dedication to further expanding its foothold in emerging markets, and democratizing high-end technology for everyone, solidifies its place among these rising 20 Chinese brands.

Going forward, Infinix will continue to make further improvements to the smartphone experience, bringing the latest and greatest technology to consumers in markets all around the world with maximum customer value at the forefront of every device launch.

Stay tuned to exciting updates coming from Infinix in the near future.

Lahore (Muhammad Yasir) Continuing to live up to its ‘Let’s Get Digital’ motto, Pakistan’s digital services leader, Zong 4G, partners again with the Leading Strategic OTT Player and brings out an exciting Offer for its subscriber Base. Zong prepaid users will be able to enjoy 1 hour of YouTube streaming daily for just PKR 2 + taxes.  The industry-first offer can be subscribed twice daily by dialing *1987#, or through My Zong App or the online store.

Since its inception, Zong has emerged as the Pakistani youth’s favorite connectivity partner. The company is living the promise of ‘Let’s Get Digital’ by empowering the youth to experience the digital lifestyle to the fullest with this partnership adding to its efforts.

“Zong 4G is building the foundation of a digital future in Pakistan. We are offering the widest connectivity to enable millions of Pakistani to remain connected” shared Zong’s official spokesperson.

The spokesperson added, “This new YouTube offer is in line with our ambition of digitalization in Pakistan, and the continuation of partnerships that we forge to give our users the best user experience possible and proactively meet their connectivity needs. We want no doubt to be left in the minds of our customers that if they want to be digital, then the only brand to foresee and fulfil their digital needs is Zong 4G,” he added.

Alongside its incessant network transformation efforts to serve customers with best-in-class services, Zong is credited with pioneering 4G in Pakistan and running the first successful 5G test in the country.

With the aim to lead the digital innovation in Pakistan, Zong 4G is spearheading the digital agenda of the country and ensuring that the dream of Digital Pakistan is not far from becoming a reality.

 

 

Lahore (Muhammad Yasir) Alkaram, one of the biggest names in Pakistan’s textile industry, is partnering with ABHI, Pakistan’s first financial wellness platform, to offer its employees the facility of Earned Wage Access.

ABHI’s goal is to provide financial wellness services to all employees in Pakistan, giving them the ability and freedom to access their earned but unpaid salaries, so they don’t have to face financial constraints in emergencies. One of the biggest players in textiles, with thousands of employees across the country, Alkaram is partnering with this revolutionary new venture, as employees’ financial wellness is paramount to the company. This partnership will help the company in becoming one of the leaders in the global textile world, integrating vertical textile solutions with values and sustainability.

Speaking at the occasion, Omair Ansari – CEO & Co-founder of ABHI, explained that “We believe financial wellness and access to credit are basic human rights, which we aim to bring to all our customers. We are glad to partner with Alkaram and look forward to a long-lasting relationship where employees can benefit and fight the rising inflation by getting access to their earned salaries at any time of the month.”

Speaking at the occasion, Nizar Nooruddin – Head of Human Resources of Alkaram Textile Mills, mentioned that “Introduction of the financial wellness platform, ‘ABHI’ has opened up an opportunity to unlock the potential of digital transformation in facilitating our employees’ financial wellness. Empowering our employees with convenience and freedom to manage their emergent needs within no time is unmatched in today’s corporate landscape.”

 Founded in 2021, Abhi is Pakistan’s first financial wellness platform that lets you access your salary daily via app or SMS. Users can withdraw the accessible amount of their accrued salary instantaneously to any bank account or wallet.

 By helping employers to provide the option of advance salaries for employees, Abhi has helped reduce workloads on HR and finance departments, whilst facilitating their employees’ cash needs.

Alkaram Textile Mills’ journey started in 1986, when it was set up to provide innovative textile solutions across the globe and soon, it emerged as one of the leading textile manufacturing and exporting companies in Pakistan, with a global footprint in the US, UK, France, and Portugal. Currently, Alkaram Textile Mills is the largest vertically integrated textile set up in Pakistan. It’s global reach, breadth of product offerings, and multichannel distribution make it a unique player in the textile industry, globally, and in Pakistan.