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July 12 - 18, 1999

Governor asks 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.


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 (PPA).

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.