Category: Business

Pakistan (Muhammad Yasir)

The Accountability Court has honourably exonerated and acquitted our Chairman Mr. Hussain Dawood, Director Mr. Abdul Samad Dawood, and former CEO Mr. Sheikh Imran ul Haq, in the award of the LNG contract to Engro Elengy Terminal Limited, as no evidence was found to prove any illegality, irregularity, or loss to the national exchequer.

Engro Corporation welcomes this much awaited decision of the Accountability Court. Engro has always strived to act in a fair and transparent manner in all its business and commercial commitments. Over the last six decades, the Company has built its reputation through a strong focus on effective corporate governance, ethics and integrity, and compliance with the laws of the land.

The LNG Terminal in question is an essential part of Pakistan’s energy infrastructure; it supplies 15% of Pakistan’s total gas requirement, which is a critical industrial and domestic input, to a growing country. Engro remains committed to the progress and well-being of Pakistan by striving to solve some of the country’s most pressing issues.                                                                                             

During these testing times, the Company is grateful for the support it has received from our employees, shareholders, and partners who have believed in and worked with us.

Karachi (Muhammad Yasir)

On the occasion of Labor Day, ABHI and Soorty
have released a documentary reflecting on transformative change and
showcasing the impact of their collaboration on the lives of workers.
From blue-collar workers to C-level executives, individuals from all
walks of life have benefited from Earned Wage Access, experiencing
financial freedom and security. The partnership, forged in the initial
years of ABHI’s inception, has brought significant change to the lives
of workers across Pakistan.

ABHI partnered with Soorty Enterprises, in 2022 and integrated its EWA
platform into their HRMS system, ensuring industry-standard privacy
and security protocols. Starting with a small group of workers, this
partnership currently empowers approximately 20,000 Soorty employees.
Through this collaboration, employees can now conveniently access a
portion of their earned salary within 30 seconds via the ABHI app or
SMS. This initiative has significantly contributed to the financial
empowerment of employees at Soorty, thereby contributing towards the
development of the country.

The documentary captures the essence of the partnership’s success
through different use cases, whether it’s a factory floor worker or an
executive suite. It sheds light on how AbhiSalary has revolutionized
the way employees manage their finances, providing them with immediate
access to their earned salaries whenever they need it. Earned Wage
Access has revolutionized the way employees manage their finances,
offering them financial support in times of unexpected expenses and
reducing their reliance on high-interest or informal loans.

On the success of ABHI and Soorty’s collaboration to financially
empower the workforce, Mohammad Zaidi, CCO at ABHI stated, “We believe
financial wellness and access to credit is everyone’s right, which we
aim to bring to all our customers. We have a long-lasting partnership
with Soorty, where their employees have benefited from Earned Wage
Access and fought inflation by accessing their earned salaries at any
time of the month. We are proud to stand alongside Soorty in our
commitment to championing the financial well-being of workers across
Pakistan.”

Yousuf Dayala, VP of Finance at Soorty added, “Soorty is known for
its organizational culture and the human capital is our prime asset.
Due to the recent economic condition and especially the unbridled
inflation, it’s quite difficult for the common man to maintain their
social needs. We took ABHI on board in its early times and the reason
behind was to empower our workers to withdraw their earned salary
whenever they need it. Workers and the management, both are very happy
with the facility.”

As organizations around the world increasingly recognize the
importance of prioritizing employee well-being, the partnership
between ABHI and Soorty stands as an example of employers coming
together to create a positive social impact. The narrative surrounding
financial wellness in the workplace is being reshaped, paving the way
for a more equitable and empowered workforce.

Pakistan (Muhammad Yasir)

Pakistan’s leading digital operator, Jazz, announces the successful closure of its PKR 15 billion Sukuk, marking the first ever and largest short term unsecured Sukuk by a telecom operator in Pakistan. This will pave way to an entirely new funding avenue for Jazz to fund its 4G for all digital ambitions.

With a 30-year track record in Pakistan and investments exceeding USD 10.6 billion, Jazz represents one of the country’s largest investors, leading the cellular industry with a 45% revenue market share, while serving over 71.5 million subscribers.

With the successful closure of this initiative, Jazz management expresses gratitude to its valued investors for their confidence in the digital operator and its capacity to generate value for investors, customers, and society at large. This Sukuk issue will also contribute to the increased utilization of Shariah-compliant financial instruments in Pakistan’s capital markets.

Lahore (Muhammad Yasir)

TCL, Pakistan’sNo.1 LED TV brand, rejoices in its collaboration with Gamers Galaxy as the technology partner for the Gamers Galaxy eSports Festival 2024 held at Expo Center Lahore, with a prize pool of PKR 2.5 million attracting top-tier players and teams from across the country. Following two days of exhilarating competition in Lahore, this partnership elevated the gaming experience to new heights.

As the exclusive technology partner, TCL provided cutting-edge LED TV technology that enhanced the event’s immersive experience, delivering stunning visuals and immersive sound. Attendees were impressed by the unparalleled picture quality and responsiveness of TCL displays, ensuring every moment of the tournament was experienced with maximum intensity.

TCL’s LED TVs served as the centrepiece of the gaming arena, making every game come alive with crystal-clear visuals. The gaming experience reached unprecedented levels, drawing in spectators and gamers alike with its captivating visuals and immersive gameplay.

Reflecting on the successful collaboration, Majid Khan Niazi, Director of Marketing, TCL Middle East and Africa, expressed pride in the company’s contribution to Pakistan’s vibrant gaming community. “We are thrilled to have been part of the Gamers Galaxy eSports Festival 2024,” said Majid Khan Niazi. “TCL is committed to providing gamers and spectators with an unmatched viewing experience, and we are delighted to have played a role in making the event a resounding success.”

The partnership between TCL Pakistan and Gamers Galaxy underscores a shared commitment to advancing Pakistan’s eSports ecosystem and providing gamers with the ultimate platform to showcase their skills and passion.

Lahore (Muhammad Yasir) The 18th edition of ‘Pakistan Oil, Gas & Energy Exhibition’ (POGEE), is receiving tremendous response from the leading international and local Energy-companies and stakeholders of this key industry. The exhibition will take place from 8th to 10th May 2024, at the Lahore Expo Centre.

The energy sector of Pakistan plays a vital role in the economic development of the country while directly affecting the operations and growth of all other industrial sectors. Given the socioeconomic impact and contributions of this robust sector, optimal planning for sustainable energy is imperative. As per the recent ‘Integrated Energy Planning’ (IEP) report, the country’s energy demand will increase substantially by 2030, which presents excellent opportunity for the global companies to invest in Pakistan, increase their business-share and contribute in the nation’s development.

Speaking about the event, Aamer Khanzada – the Managing Director of Pegasus Consultancy highlighted that; “POGEE is reckoned as the premier oil & gas exhibition of the region and it is heartening to see a tremendous response from the global industry players, despite the show is returning after a long gap, due to the COVID pandemic. He further informed the media that: “Around 100 resourceful companies from 17 countries have confirmed their participation in the show, including exhibitors from Austria, Bahrain, Belgium, China, France, Germany, Italy, Netherlands, Poland, Slovakia, South Korea, Sweden, Taiwan, UAE and USA.

Along with POGEE, the 15th International Fire, Safety, Security & Health Exhibition – ‘Safe Secure Pakistan’ will also be taking place, attracting a large number of exhibitors and visitors from the relevant industrial sectors. POGEE and ‘Safe Secure Pakistan’ are very prestigious events, organized by Pegasus Consultancy and supported by the relevant government bodies and trade associations.

Oil & Gas Development Company Limited (OGDCL) is the strategic partner of the event, along with Chevron Group as the Gold-Sponsor, which represents global enterprises like; Chevron, TEXACO and CALTEX. Hence, POGEE is a must-attend forum for related decision-makers and professionals associated with the Oil, Gas and Energy sectors, including petroleum companies, operating in exploration & production, Geo-Sciences, refining and petrochemical distribution, along with related products and services.

 

OICCI Launches 2nd Edition of IPR Manual amidst Lax Enforcement Concerns

Karachi (Muhammad Yasir) Effective protection of intellectual property rights [IPR] is essential for attracting and retaining FDI [Foreign Direct Investment]. According to the OICCI IPR Survey 2023, infringements resulted in a loss of up to Rs800 billion to the national exchequer last year alone. Companies too reported a total loss of 20% of their turnover due to these infringements.” These views were expressed by Mr. M Abdul Aleem, CE/Secretary General of the OICCI at the launch ceremony of second edition of its IPR Manual ‘Evolution of Intellectual Property Rights in Pakistan: OICCI Perspective (Edition 2)’ on Monday.

 Speaking at the event, Farukh Amil, Chairman of the Intellectual Property Organization of Pakistan (IPOP), stated that “Intellectual Property is directly linked to development in numerous ways and is a critical tool for empowerment.” He emphasized the necessity for grassroots awareness of the potential of IP, starting as early as at the school level. “The younger generation absolutely must be in step with global knowledge and standards.” 

The objective of the publication is to facilitate a comprehensive understanding of the various aspects of IPR laws in Pakistan for the facilitation of investors and innovators. The manual will benefit foreign and local investors understanding of the IPR regime in Pakistan, providing useful IPR related guidelines for law students and practitioners, regulators and people interested in fostering the culture of innovation and inventions. 

Usman Javed Altaf, group director (Legal & Intellectual Property), Martin Dow, added that, “These infringements also harm consumers, who may be unknowingly purchasing counterfeit or substandard products, posing risks to their health and safety.” He noted that the Intellectual Property Organization of Pakistan (IPOP) must engage with law enforcement agencies (LEAs) to bolster enforcement efforts.  

The OICCI members believe that while there is comprehensive IPR legislation in place, there is a need for a more robust enforcement of IPR, where IPOP could play a key role in ensuring that the LEAs ensure strict IPR enforcement. 

Besides speedy court trials, harsh penalties are needed to create a deterrent amongst IPR violators. Moreover, it is recommended to improve the IPR capability of LEAs and judiciary and create an awareness in the society using the media effectively.  

Aman Ghanchi, Executive Director Legal and Company Secretary Unilever Pakistan, added that “Effective use of media is crucial to raise mass awareness and protect both customer interests and government revenue streams.”  

Innovators and foreign investors give high priority to an effective IPR regime in Pakistan, which is critical for attracting FDI and promoting research and innovation in the economy. The OICCI, in its interactions with ministries, government officials, academia and media, has been actively promoting an IPR-friendly environment and has led the debate on the protection and strict enforcement of the IPR regime.  

Its latest publication is an updated edition of similar last publication released in February 2019. OICCI has added two new chapters on Plant Breeders Rights and Geographical Indications in this 2023-2024 edition of the OICCI IPR Manual. The Chamber has also updated chapters relating to Trademarks, Patents, Copyrights, Designs and Enforcement of IPR to respect latest developments in these critical areas.

Dubai, UAE (NUT DESK)

Mashreq Releases 1Q 2024 Financial Results: Paving the Way for Sustainable Growth.

Mashreq is pleased to disclose its financial results for the first quarter of 2024, demonstrating the bank’s steadfast commitment to strategic priorities centered on client-centricity, operational and financial efficiency, robust risk management, and a people-first culture. These results emphasize the success of Mashreq’s strategic initiatives.

Mashreq, has demonstrated remarkable strength and adaptability amid global challenges, maintaining solid asset growth, financing, and capital adequacy ratios. These indicators reflect the sector’s flexibility and resilience to adapt to the changes the world is witnessing.

The 2024 Brand Finance report recognizes Mashreq as the fastest-growing banking brand in the Middle East, with our brand value increasing by an extraordinary 200% over the past three years. This growth underscores our strategic foresight, adaptability, and dedication to customer-centric innovation. The distinction of Mashreq NEO as the strongest digital banking brand in the UAE further underscores our capability to provide leading-edge solutions to our clients.

Q1 2024 financial results have provided a robust start to the year, showcasing a significant 25% increase in net profit to AED 2.0 billion, despite the new Corporate Income Tax of 9% in the UAE. On pre-tax basis our Net Profit stood at AED 2.3 billion representing an increase of 36% like for like. This remarkable growth is fueled by substantial income expansion and reduced risk costs, highlighting our unyielding commitment to operational resilience and efficiency. Its net interest income has experienced a substantial 23% growth, demonstrating the effective expansion of balance sheet and resilient client margins. Additionally, our non-interest income has surged by an impressive 29% year-on-year, representing 32% of our total income reflecting the versatility and revenue resilience of our bank.

As Mashreq continue to expand, Its operational resilience remains a cornerstone of our growth and expansion strategies. It has allowed us to adapt swiftly to economic shifts, maintain service excellence during rapid expansion, and manage risks effectively.

Mashreq’s efforts to launch its Digital Retail Bank in Pakistan remain a foot, which will mark a significant step in its international expansion. Additionally, the initiation of corporate banking operations in the United Kingdom and the opening of a new branch in Mumbai are pivotal in our mission to deliver innovative banking solutions across diverse markets. In Egypt, the launch of Mashreq NEO represents a key development in offering simplified and innovative banking experiences, which align with our goals to enhance customer satisfaction.

 

Pakistan (Muhammad Yasir)

Maintaining its growth momentum, BankIslami delivered an impressive return for its shareholders, with a remarkable 99% surge in its profit before tax for the first quarter of 2024. The Bank’s profit before tax reached Rs. 6.3 billion, with a post-tax profit of Rs. 3.2 billion, representing a growth of 79.2%. Despite adverse market conditions, the Bank remains committed to financial excellence. Prominently, it demonstrated magnificent cost efficiency, as evidenced by the reduced cost-to-income ratio of 43.1% during the period, compared to 47.9% in the same period last year.

BankIslami strategically expanded its investment portfolio and grew its financing portfolio despite navigating through ongoing economic uncertainty. Consequently, the investment portfolio reached Rs. 332.2 billion, while the financing portfolio was at Rs. 253.6 billion showing an improvement in infection ratio to 8.2% from 9.0% in December 2023. The infection ratio of Islamic portfolios (i.e. excluding conventional portfolios inherited from combined entities) also improved from 6.9% in December 2023 to 6.3% in March 2024.

In Q1 2024, in spite of a 4.9% decrease in the deposit book compared to December 2023, the Bank observed a substantial year-on-year increase of 20.8%. The Bank is dedicated to increase its deposit base by promoting healthy growth in Current and Savings Accounts (CASA), supported by a strategic blend of initiatives aimed at strengthening trade finance, employee banking, and cash management business. With heightened profitability and an enhanced credit risk profile, the Bank’s Capital Adequacy Ratio (CAR) stood at an impressive 22.82%, well above the regulatory threshold of 11.50%

Way forward, the Bank is committed to its trajectory growth by expanding its deposit base, leveraging its extensive network, which has now surpassed 450 branches, and improved the customer experience through targeted technological advancements and an expanded digital footprint.

 

 

Lahore (Muhammad Yasir)

TPL Insurance, a leading provider of innovative insurance solutions, is proud to announce a strategic partnership with Regal Automobiles Industries Ltd. (RAIL), a renowned name in the automotive industry. The memorandum of understanding (MoU) signing ceremony solidifies the alliance between the two entities, paving the way for groundbreaking offerings in the automotive and insurance sectors. As part of this collaboration, customers can now enjoy the convenience of a buy now, pay later scheme for select models including Glory 580 Pro, Prince Pearl, Prince K01, and Humsafar. This deferred payment plan offers flexibility and financial ease, allowing individuals and corporates to acquire their desired vehicles with ZERO financial cost. In addition to the deferred payment plan, the partnership introduces innovative and flexible Motor Takaful products. Mr. Aminuddin, CEO of TPL Insurance, expressed his enthusiasm about the partnership, stating, “We are pleased to join forces with Regal Automobiles Industries Ltd. This alliance allows us to offer unparalleled benefits to our customers, reinforcing our commitment to innovation and customer-centric solutions.” Mr. Sohail Usman, Chairman of Regal Automobiles Industries Ltd., commented, “At RAIL, we are continuously striving to enhance the customer experience. This partnership with TPL Insurance marks a significant milestone in our journey, enabling us to provide our customers with convenient payment options and strong insurance coverage.” Mr. Adeel Usman, Managing Director of RAIL, added, “The introduction of deferred payment plans, and innovative Motor Takaful products reflects our dedication to meeting the diverse needs of our customers. We are excited about the possibilities that this partnership brings and look forward to delivering value together.” These offerings are designed to provide comprehensive coverage and peace of mind to vehicle owners, ensuring their protection on the road. This partnership stands out in the industry due to its unique proposition of offering both flexible deferred payment plans and innovative Motor Takaful products. The combination of these services addresses the evolving needs of customers, providing them with a comprehensive solution under one roof. About TPL Insurance TPL Insurance Limited is the first company in Pakistan to sell general insurance & takaful products directly to the consumer. Since its launch in 2005, the company has grown from strength to strength and is now the leading Insurtech player in Pakistan. TPL Insurance Limited obtained a window takaful license from SECP in 2014 and specializes in tech-driven innovative solutions and digitally integrated systems to provide hassle-free customer experiences and round-the-clock services to 300K+ customers. As an AA rated insurer, TPL Insurance Limited is committed to the development of commercial and personal line portfolios by exploring new channels, expanding existing relationships, and maintaining higher risk retention. About DFSK DFSK Pakistan is the leading provider of luxury performance vehicles, offering an unparalleled driving experience for discerning individuals. Our commitment to excellence is reflected in every vehicle we produce, combining cutting-edge technology, superior craftsmanship, and timeless design. Explore our range of meticulously crafted vehicles, each meticulously engineered to deliver exceptional performance, comfort, and style. From sleek sedans to powerful SUVs, we have a vehicle to suit every lifestyle and preference. At DFSK Pakistan, we are dedicated to exceeding your expectations, providing exceptional customer service, and ensuring your satisfaction with every interaction. Discover the luxury of driving with DFSK today.

Pakistan (Muhammad Yasir)

FrieslandCampina Engro Pakistan Limited (FCEPL) announced its financial results for Q1, 2024, delivering a strong topline growth of 21% (PKR 27.5 billion compared to PKR 22.7 billion in the same period last year) despite the challenging operating environment and economic slowdown. This increase was fueled by volume growth and relevant consumer offerings.

The Company witnessed a gross profit growth of 1%, while gross margin declined by 320 bps due to currency devaluation and inflationary pressure on commodities and energy prices.

Profit after tax (as a percentage of sales) declined by 200 bps over LY (Rs. 0.67 billion vs. Rs. 0.99 billion in the same period last year) due to an increase in interest rates.

DAIRY-BASED PRODUCTS SEGMENT

The segment reported a revenue of Rs. 26.1 billion, reflecting a growth of 15% compared to the same period last year. The growth was led by our flagship brand Olper’s, through consistent brand building and trade activities.

Olper’s continued to expand the reach of its 1½ Pao Bachat Pack Campaign through TV and Digital channels. The Olper’s 1½ Pao Bachat Pack, an ideal size for a single breakfast occasion, provides the right milk quantity needed for a family’s daily breakfast needs.

Our value-added brands like Olper’s Cream, Olper’s Cheese, Dobala, and Tarka have continued to gain volume despite competition from established players.

FROZEN DESSERTS SEGMENT

The segment reported a revenue of Rs. 1.36 billion compared to Rs. 1.44 billion period last year. The recent challenging times and a delayed summer onset, coupled with an unexpected rainy season across the Country, impacted the expected growth. However, the Company anticipates a quick recovery in Q2 as the season fully commences.

FINANCIAL PERFORMANCE

The financial performance of the company for the three months ended March 31, 2024, is summarized below:

	Three months ended		Variation
(Rs. in million)	2024	2023
Net Sales	27,464	22,651	21%
Operating Profit	1,971	1,982	-1%
% of sales	7.18%	8.75%	-157 bps
Profit / (Loss) after tax	665	990
% of sales	2.42%	4.37%	-195 bps
Earnings / (Loss) per share (Rs.)	0.87	1.29

 

FUTURE OUTLOOK

FCEPL maintains its dedication to delivering strong business results for its shareholders, despite external challenges like inflation, currency devaluation and elevated interest rates. The company’s agile business model enables the management to maintain growth through operational efficiency and adapting to changing consumer demands. In the future, FCEPL plans to continue investing in enhancing brand value and broadening its portfolio to improve profit margins.

Leveraging its global expertise and 150 years heritage, FCEPL remains committed to the highest standards of hygiene, food safety and sustainability and providing safe, affordable, and nourishing dairy products to millions of Pakistanis, every day.

The Company’s Annual General Meeting was held on April 26th, 2023 at the Royal Rodale in Karachi, where the shareholders and the Board of Directors discussed the Company’s performance in 2023.