July 12 - 18, 1999
industrialists to make FPCCI/KCCI strong
The Governor of Sindh Mr. Mamnoon Hussain suggested the members of the
Managing Committee of the Council of Karachi's Industrial Associations to make FPCCI/KCCI
strong to solve their problems side by side their own individual efforts.
A 12 member delegation led by Zubair Chayya, Acting Chairman and
including Vice Chairmen, Majyd Aziz, Farooq Bakaly, Zahid Maqbool of the Council of
Karachi's industrial Associations representing the interest of 14000 industries in
Karachi, called upon Governor Sindh, Mr. Mamnoon Hussain at Governor House and apprised
him with the difficulties faced by the industries in Karachi.
The Governor said that he was well aware of the problems of the
industries as he is from the business community and requested them to take FPCCI and KCCI,
into confidence as they can prove helpful in solving their problems. He advised them to
send copies of representations to FPCCI/KCCI too. They are in a better position and have a
better understanding with the government to tackle their problems in better way. He
however praised SITE Association, Korangi Association etc. and said that they are working
exceptionally and serving their constitutional members very well.
The Governor was informed that over 50 percent industrial units in
Karachi has gone out of production during the past six years and expressed fear of total
closure of industrial units in next few years if the government failed to provide required
and improved water, power, gas and telephone and other utility services, and particularly
law and order situation. The Governor said that the government was aware of the issues and
was making all possible efforts to tackle these problems. He sought the help of business
community to improve the situation.
MOIN FUDDA ELECTED MAP'S PRESIDENT
Mr. Moin M. Fudda, Country Chief, Commercial Union Group and Managing
Director, Commercial Union Life Insurance Company (Pakistan) Limited has been elected
unopposed as the President of Management Association of Pakistan.
He was elected to this position at MAP's 33rd Annual General Meeting
held on June 28 at a local hotel here. Prior to it he held the office of the Vice
President of the Association since 1997. He has a long association with MAP and has been
its Honorary Secretary from 1992 to 1994. Mr. Fudda is also the Honorary Consul General of
New Zealand in Pakistan. Her Majesty the Queen of England awarded him a medal in
recognition of meritorious services rendered by him to New Zealand.
Before joining Commercial Union, Mr. Fudda held the office of the
Executive Director, Pakistan Insurance Corporation, a body corporated under the Ministry
of Commerce, Government of Pakistan. He was selected for appointment to that post by the
Government of Pakistan as the best out of a number of candidates despite his age having
been considerably less than the prescribed minimum. Mr. Fudda is a graduate of the RCD
College of Insurance, Tehran and holds a Master's degree in Business Administration from
College of Insurance, New York. He is a distinguished and prominent figure in the
insurance industry in Pakistan and has been actively involved in various committees for
introduction of insurance reforms and lately being member of Task Force on Insurance. He
is also the Director of Karachi Stock Exchange and a member of Management Committee of
Overseas Investors Chamber of Commerce and Industry.
Others who were also elected unopposed in the meeting include: Mr.
Towfiq H. Chinoy, Chief Executive, International Industries Limited (Vice President); Mr.
S. Masoud Ali Naqvi, Senior Partner, Taseer, Hadi, Khalid & Co. (Hon. Secretary); Mr.
Azhar Ali Malik, Executive Director, ICI Pakistan Limited (Hon. Treasurer); and M/s.
Farhad Zulficar, Managing Director, Indus Motors Limited; Javed lqbal, Managing Director,
Philips Electrical Industries of Pakistan and M. Iqbal Khan, former Managing Director, Pak
Elektron Limited and now a management consultant were elected Members of the Executive
Committee in the same meeting.
Fortune Magazine commends UBL's performance
In a recent issue of Fortune, John Elliot wrote a highly critical
feature on the dismal state of Pakistan; its collapsing economy, its political scenario
and the social overturns. According to Elliot, Impressive progress has been made in
banking," almost the only positive remark in the article.
Discussing Pakistan from its days of formation, the article discusses
how the country has been on the downhill path from its early days. "Pakistan was
founded as a model Islamic state. Greed and corruption have destroyed that dream."
Quoting accurate facts and figures, it is difficult piece to counter. Commenting on the
various Governments that have come and gone Elliot spoke of the baseness which seeped into
the ruling parties. Their plans were to crush the opposition the future of the
country forgotten in their personal agendas. He commented on how the politicians defaulted
on ridiculously high loans as the country trudged towards the grinders mill saved
only by 'rescues' by the IMF. "There have been 17 IMF rescues since 1958; another
loan is in the works. Pakistan is a cartelized, feudal economy that has failed to come
anywhere near its considerable potential."
Other than commending Pakistan's "huge untapped natural
resources", Elliot only had the banking sector to praise. He mentioned Zubyr I.
Soomro, President, UBL and Shaukat Tarin, President HBL for their performances.
"Soomro has cut United's payroll by a third, closed 200 branches, reduced bad debts,
and trimmed its operating loss by 95%." Although the Bank has been facing tremendous
government and political pressure, Soomro has still managed to leap over those hurdles and
continue with his duties, which have not been an easy task. From mandatory right-sizing to
re-structuring, it has been a rocky road indeed.
According to statements made by bankers "nearly 50% of their bad
debts are with politicians; another 20% go to people closely linked to them." This
places the banks in a difficult position where they are unable to provide sufficient
credit to productive people'.
Fortune is one of the world's leading magazines, renowned for its
accurate and precise reporting. Albeit the article is extremely critical of Pakistan
the facts are irrefutable. If nothing else, it may serve as an eye-opener for us:
the sleepy citizens, the scheming politicians and the not so concerned authorities.
Pakistan Tobacco Company Donates for Cyclone Victims
Mr. Michael Paul Fenn, Chairman, Pakistan Tobacco Company Limited
(PTC), presented to the Governor of Sindh, Mr. Mamnoon Hussain a cheque of Rs. 800,000 and
over 3,000 bottles of PTC edible oil Sundrop for the relief of cyclone affected families
in lower Sindh.
Pakistan Tobacco Company is the first multinational company to have
established operations in Pakistan, as early as November 1947, three months after
independence. PTC is affiliated with British American Tobacco and is involved in
manufacturing and marketing of the best known cigarette brands in Pakistan.
PTC as a responsible corporate citizen maintains a past record of
social services. During the floods that hit the country in 1992, PTC's mobile dispensaries
in Jhelum worked day and night to provide help to those affected. The afforestation
programme by PTC has been recognised as outstanding by the Government of Pakistan for the
last two consecutive years. PTC free mobile dispensaries provide relief to a wide area
around PTC factories located at Jhelum and Akora Khattak.
Edible oil brand, Sundrop made by PTC from indigenous sunflower seed is
a contribution towards reducing the US $ 1 billion import bill that Pakistan has to
finance for edible oil imports.
The Hub Power Company (Hubco) has been advised by its Lenders that the
Letter of Credit (L/C) issued by WAPDA to the Naiontal Development Finance Corporation
(NDFC) dated June 29, 1999 does not comply with the terms of the Power urchase Agreement
Hubco press release said that WAPDA is in fundamental brcach of the
agreement ffand the Company had not option but to issue a notice of default. WAPDA has 30
days in which to cure the breach after which the Company will have the right to issue a
Preliminary Notice of Termination for the PPA. Ninety days thereafter, the Company may
terminate the contract (PPA) and seek compensation from the Government of Pakistan, the
press release added.
It will be recalled that on June 28, 1999, the Company made claims
against the previous WAPDA L/C. Those claims remain outstanding as WAPDA obtained ex-parte
restraining orders from the Honourable Senior Civil Judge, Lahore on June 29, 1999.
The order restrains Hubco "from making any such future demand for
eneashment of the Letter of Credit in question or any fture Letters of Credit".
Subsequently. a notice was given by the Court of the Senior Civil Judge to Hubco and a
hearing is scheduled for Monday July the 12th in Lahore.
The Comapny intends to vigorously defend its rights and secure payments
under the terms of the Power Purchase Agreement as well as under the judgement of the
Honourable Supreme Court of Pakistan passed on June 5, 1998.
"GB World Internet yellow pages"
With the growing use of Internet and email in businesses and corporate
world, the need for a database of such companies is being felt. Ghani Group is pleased to
announce that a "GB World Internet Yellow Pages" is being launched in Pakistan.
GB, dealing in Information Management and Marketing has taken the task
to publish Internet Yellow Pages.