News Update Times

Avanza Premier Payment Services (APPS) is a joint venture of Avanza Group and Premier Systems

Karachi (Muhammad Yasir) Avanza Group and Premier Systems signed an agreement to formally establish Avanza Premier Payment Services (APPS) Pakistan’s fastest and most reliable domestic online payment gateway. APPS will deploy an E-commerce & M-commerce payment gateway and merchant digitization service.

Mr. S. Arshad Raza, CEO, Premier Systems, said, “We have many international partners, but now we have a domestic player embracing the digital economy and enriching it by providing substantially convenient payment solutions. Pakistan is at the cusp of a digital revolution and we are proud to be part of that drive.”

Mr. Mahmood Kapurwala, CEO, Avanza Group stated, “We are proud to be partnering withbPremier Systems to launch APPS, which will become the country’s gateway of choice for payments and help digitize our e-commerce ecosystem. Our objective is to help businesses and consumers alike to overcome payment hurdles and make Pakistan a proud member of the growing digital arena. 

The two organizations aim to create synergies that enable APPS to cater to the rapidly evolving digital landscape in Pakistan. Our economy is still reliant on the cash on delivery (COD) model with our e-commerce industry consisting of 90% COD indicating that Pakistan has yet to accept

digitalization.On that note APPS’s newly appointed CEO, Mr. Adnan Ali presented the end-to-end technology stack that would help APPS to move Pakistan towards a cashless landscape by digitizing major institutions such as merchants, schools, billing industries, mutual funds & other corporate entities by providing a secure hassle-free digital experience.

Mr. Adnan Ali, CEO, APPS, said, “This is a momentous occasion for us all, as we are aware that Industry 4.0 is shaping up to disrupt the way we do business, we will be one of the pioneers in innovating the domestic industry. We aim to digitize the market for our potential stakeholders and play the role of a catalyst in digital payments of Pakistan.”With respect to Pakistan, the launch of APPS will spur innovation in the domestic market by encouraging the community to pay using digital means but also make digital payments easier and widely available for banking customers e-commerce enablement.

 

Visa-commissioned study, “Cashless Cities: Realizing the Benefits of Digital Payments”, indicates that by 2032, cashless payments could increase Karachi’s employment by 4.7%

Karachi (Muhammad Yasir)  Visa (NYSE:V), the world leader in digital payments, launched an independent study that examines the economic impact of increasing the use of digital payments in major cities around the world, including Karachi. The global Visa report, titled “Cashless Cities: Realizing the Benefits of Digital Payments”, conducted by Roubini ThoughtLab and commissioned by Visa, was launched during a media event with the support of the Karachi Chamber of Commerce and Industry (KCCI).

The findings as part of the study reveal that an increased usage of digital payments, such as cards and mobile payments, could potentially yield a net benefit of US$ 1.5 billion (Rs 181.5 billion) annually to consumers, businesses, and government in Karachi.

The Cashless Cities study quantifies the immediate and long-term benefits for three main groups in Karachi:

• Consumers, who could save nearly US$ 0.1 billion (Rs 12.1 billion) in time savings while conducting banking, retail and transit transactions, as well as a reduction in cash-related fraud;
• Businesses, which could recover approximately US$ 1.1 billion (Rs 133.1 billion) in time savings while processing incoming and outgoing payments, and increased sales revenues stemming from extended online and in-store customer bases; and
• Government, which could save nearly US$ 0.3 billion (Rs 36.3 billion) from factors including increased tax revenues, economic growth, and cost savings from administrative efficiencies.

Visa’s global study does not look at eliminating cash; rather, it evaluates the benefits that can be derived when a city transitions to an “achievable level of cashlessness” – defined as the entire population of a city moving to digital payment usage equivalent to the top 10% of its users today.

Commenting on the results, Kamil Khan, Country Manager for Visa in Pakistan said: “As the government of Pakistan pushes forward with the ‘Digital Pakistan’ policy-led initiative, digital payments offer an immense, untapped opportunity to boost the country’s economic growth. With the rising rate of smart phone penetration in Pakistan and eCommerce forecasted to be worth U$ 1 billion by 2020[1], the use of digital payment methods is expected to increase significantly, paving the way for the transition to a cashless economy. Visa is well positioned to work with valuable partners such as the KCCI as well as with government bodies, the merchant community, banks and consumers to drive the adoption of cashless payments and aid in the country’s transformation to a knowledge economy.”

The guest of honour and key speaker at the event, Muffasar Atta Malik, President of the Karachi Chamber of Commerce & Industry, commented: “I believe this initiative from Visa ties in well with the KCCI’s vision to improve the business environment and economic well-being of Pakistan, especially that of Karachi. Visa’s Cashless Cities study encapsulates unique findings that will prove to be of great interest to our industry experts, thought leaders and decision-makers in the country. The use of cash is not only time consuming, but it is inefficient and often risky, and this study underpins that view by highlighting the significant and tangible benefits people, businesses and government of Karachi can realise by going cashless.”

 

Majeed Hujair, Senior Director, School of Public Policy for Central and Eastern Europe, Middle East and Africa (CEMEA), Visa, commented: “According to a World Bank report approximately 100 million adults in Pakistan don’t have access to regulated financial services, accounting for 5% of the world’s unbanked population^[2]. Also, there is an inherent lack of trust when it comes to conducting digital transactions. However, our study demonstrates the many benefits smart payments can bring to Karachi’s economic drivers, with results indicating that by 2032, adoption of cashless payments could potentially increase employment by 4.7% and GDP growth rates by 14.3 basis points. These results also find their significance at a time when the country has launched its first major digital policy aimed towards creating more job opportunities and accelerating economic growth. We look forward to working as a strategic partner of the government to help realize these objectives by enabling the merchant community and consumers with the shift to digital payments.”

“Cashless Cities: Realizing the Benefits of Digital Payments” offers over 60 recommendations for all ecosystem participants, including decision makers, to help their cities become more efficient through greater adoption of digital payments. These include undertaking financial literacy programs to help move the unbanked into the banking system and implementing incentives to stimulate innovation focused on launching new payment technologies.

Full findings of the study, as well as the online visualization tool, can be found on www.visa.com/cashlesscities. 

 

 

 

 

 

 

First-Half Sets Multiple Records: Highest Global Revenues,  Highest Operating Profits and First Time Sales Exceed 30 Trillion Won

Lahore (Muhammad Yasir)  LG Electronics Inc. (LG) reported consolidated global sales of KRW 15.02 trillion (USD 13.9 billion) and operating profits of KRW 771 billion (USD 715.1 million) for the second quarter of 2018. Second-quarter sales rose 3.2 percent while operating profits increased 16.1 percent from the same period last year. Strong profitability from home appliances and air solutions and premium home entertainment products offset second-quarter operating losses from vehicle components and mobile communications.

First-half 2018 sales and operating profits were at all-time record highs. Revenues increased 3.2 percent from the 2017 first half to KRW 30.14 trillion (USD 28 billion) and operating income rose 18.5 percent to KRW 1.88 trillion (USD 1.7 billion). In light of uncertainties surrounding market conditions, competition and the international trade landscape going forward, LG enters the second half with an intense focus on cost competitiveness and profitable growth.The LG Home Appliance & Air Solution Company posted strong second-quarter 2018 sales of KRW 5.26 trillion (USD 4.88 billion) and operating profits of KRW 457.2 billion (USD 424.04 million). Quarterly revenues grew 4.3 percent from last year, in part due to strong seasonal sales of air conditioners, and increased shipments of the LG Styler garment care system and air purifiers, especially in the domestic Korean market. Quarterly operating income increased 1.7 percent compared to the same period of 2017, driven by cost management and sales of premium clothes washers and refrigerators, offsetting the effects of higher raw material prices and unfavorable exchange rates. First half revenues for LG Home Appliances and Air Solutions were the highest in company history, exceeding 10 trillion (USD 94.66 billion) for the first time.

The LG Home Entertainment Company reported second-quarter sales of KRW 3.82 trillion (USD 3.54 billion) and operating profit of KRW 407 billion (USD 377.48 million). Revenues increased 4.1 percent from the 2017 quarter due to healthy sales of LG OLED TVs, LG SUPER UHD TVs and other premium products. Operating income increased 44.1 percent from the second quarter last year, repeating Home Entertainment’s double-digit operating profit margin performance from the 2018 first quarter. In the second half, while the global TV market is expected to see weaker demand primarily due to the economic downturn in Latin America, the Middle East and Africa, the company plans to maintain its solid profit strategy by expanding sales of premium products and further enhancing cost competitiveness.

The LG Mobile Communications Company recorded sales of KRW 207.2 billion (USD 192.2 million) and an operating loss of KRW 185.4 billion (USD 171.95 million). Quarterly sales declined from last year due to the slowing growth of the global smartphone market and a decline in mid- to low-end smartphone sales in Latin America. The second-quarter operating loss was largely due to contracting sales and increased marketing investments to support new flagship smartphone launches. With competition in the premium smartphone category expected to intensify and growth to remain stagnant in the second half, the company will seek to further improve its business structure and increase sales of the new premium LG G7 ^ThinQ and LG V35 ^ThinQ flagship smartphones in key markets around the world.

The LG Vehicle Components Company posted sales of KRW 872.8 billion (USD 809.5 million) and an operating loss of KRW 32.5 billion (USD 30.14 million). Sales increased 3.9 percent from the second quarter last year as mass production on new projects commenced. The quarterly operating loss reflects increases in raw material prices such as memory and additional resource requirements for new projects. Uncertainties in the global auto industry and in U.S. trade policy will continue to challenge the business unit over the course of the year, although the expected growth of connected and electric vehicles is promising for LG Vehicle Components in the longer term.

The LG Business-to-Business Company reported sales in the second quarter of KRW 588.5 billion (USD 545.82 million) and operating profit of KRW 39 billion (USD 36.17 million). Revenues grew 10.7 percent from the second quarter last year, thanks to stronger sales of large-scale digital signage products and high-efficiency solar modules. Operating profit soared 73.3 percent from the 2017 period on increased sales of premium products and improved cost competitiveness. In the second half, demand for premium digital signage is expected to continue to increase, while the solar module business will likely face increased competition and market challenges due to the ever-changing international trade environment.

2018 2Q Exchange Rates Explained

LG Electronics’ unaudited quarterly earnings results are based on IFRS (International Financial Reporting Standards) for the three-month period ending June 30, 2018. Amounts in Korean won (KRW) are translated into U.S. dollars (USD) at the average rate of the three-month period of the corresponding quarter — KRW 1,078.20 per USD.

Earnings Conference and Conference Call

LG Electronics will hold an English language conference call on July 27, 2018 at 09:00 Korea Standard Time (12:00 GMT/UTC). Participants for the English conference call are instructed to call +82 31 810 3061 and enter the passcode 9084#. The corresponding presentation file will be available for download at the LG Electronics website (www.lg.com/global/ir/reports/earning-release.jsp) at approximately 16:00 on July 26, 2018. Visit http://pin.teletogether.com/eng and pre-register with the passcode provided. For those unable to participate, an audio recording of the news conference will be available for a period of 30 days after the conclusion of the call. To access the recording, dial +82 31 931 3100 and enter the passcode 142910# when prompted.

Lahore (Muhammad Yasir)  – Emirates Skywards today replaced flydubai’s frequent flyer programme, OPEN, officially becoming the loyalty programme of Emirates airline and flydubai. The alignment of the loyalty programme now allows Emirates Skywards members to also earn Skywards Miles and Tier Miles when travelling on both airlines. Former OPEN members can enrol into Emirates Skywards to continue earning Miles on flydubai.

The alignment of the loyalty programme for both airlines builds on Emirates and flydubai’s close partnership which includes code-sharing on an extended global route network and several initiatives including commercial, network planning, and airport operations.

“We are pleased to announce the expansion of our loyalty programme to now include two airlines- Emirates airline and flydubai. The strategic move will bring even more benefits to our members giving them opportunities to earn and spend Miles on an extended global route network, as well as select privileges on both airlines,” said Dr Nejib Ben Khedher, Senior Vice President, Emirates Skywards.

From today, Emirates Skywards members will earn Skywards Miles and Tier Miles on all flydubai flights. Members can also spend Skywards Miles or a combination of cash and Miles to book flydubai flights*, as well as to pay for optional extras such as pre-ordered meals and extra legroom seats.

“We’re bringing together the customers of both airlines under one programme, rewarding their loyalty as they take advantage of the Emirates and flydubai partnership,” said Nahed Al Kheily, Vice President Ancillary Revenue.

Emirates Skywards members can use the flydubai Miles Calculator tool on Emirates website to check how many Miles they will earn for each fare type of their chosen flight.

When travelling on flydubai, Emirates Skywards Silver, Gold and Platinum members will be able to get select benefits regardless of their class of travel including extra baggage allowances and priority check-in at flydubai’s Business Class counters.

New Emirates Skywards members will also receive a first flight bonus when they take their first Emirates or flydubai flight within six months of joining.

The Emirates Skywards programme has been continually evolving to provide members greater opportunity to earn Miles and access rewards across its wide range of flights, travel and lifestyle partners. In the last three months, the programme launched ‘My Family’ to enhance pooling of Miles and gave members increased flexibility in managing their Miles by introducing reduced rates for buying, gifting and transferring of Skywards Miles. Emirates Skywards has also expanded its portfolio with strategic UAE partnerships including Dubai Islamic Bank (DIB) to launch the Emirates Skywards DIB credit cards and with Emaar Malls to earn Skywards Miles on purchases made at The Dubai Mall.

* All flights operated and marketed by flydubai (with FZ flight number)

 

Karachi (Muhammad Yasir) Meezan Bank, Pakistan’s first and largest Islamic bank has recently inaugurated its state-of-the-art, off-site ATM at Karachi Chamber of Commerce & Industry (KCCI), the largest Chamber of Pakistan. Mr. Saleem Mandviwala – Deputy Chairman, Senate of Pakistan attended the inauguration ceremony as the Guest of Honour. Also present at the occasion were Mr. Siraj Qasim Teli – Chairman Hilton Pharmaceutical Ltd., Mr. Kamram Zafar – Regional Manager Karachi West, Meezan Bank as well as other notable dignitaries from Karachi’s business fraternity.

This is the first ATM to be installed at KCCI that will enable users an instant access to cash, money transfer and bill payment services.  

Speaking on the occasion, Mr. Kamran Zafar thanked KCCI for bestowing Meezan Bank with the trust and opportunity of installing an ATM within its premises. He further added, “Meezan Bank’s ATM services combine ease, security and technology to meet the financial needs of customers. With over 600 machines installed nation-wide, we strive to make everyday life easier. We are confident that this recent initiative has further strengthened our mission by serving the small banking needs of KCCI employees as well as ATM users of other offices nearby.”