Jun 12 - 18, 2000
Insurance Association of
An Extraordinary General Meeting of Insurance Association of Pakistan
was convened on Thursday, 25th May, 2000 at Pearl-Continental Hotel, Karachi, to consider
the Draft Insurance Ordinance, 2000. The matter was discussed in detail and consensus was
reached on the following issues:
The provision of said Ordinance relating to registration of insurance
companies is a glaring example of over-regulation.
The Ordinance has drastically revised the level of Paid-up Capital; if
implemented, it may result into closures of many insurance companies. If this level is
retained, a sufficient period of time should be allowed to the existing companies for
raising the Capital to the required level. A time frame of 5 years for paid-up capital of
Rs. 50 million should be provided. As regards the balance, another 3 years may be allowed.
(a) The level of Solvency Margin should be Rs. 5
million or 10 per cent of the net premium income which ever is the higher. This is the
level recommended by the Task Force in 1997 and also by the Consulting Committee set up by
the Ministry of Commerce to examine, the Draft Insurance Ordinance.
(b) The percentage for investment in real estates and
in shares, which are to be prescribed by Rules should be 30 per cent and 50 per cent
respectively of the Insurer's total investment.
(c) Motor Vehicles & Office Equipment should be
treated as admissible assets for the Solvency purposes.
(d) Outstanding premium not older than 12 months
should be treated as asset, for the Solvency purposes.
Many provisions of the Ordinance relating to the Market Conduct need
further detailed study since they are inconsistence with the Fundamental Principle of the
insurance, moreover they are in conflict with the local conditions.
Pakistan Insurance Corporation
The existing provisions relating to PIC have been made part of the
proposed Insurance Ordinance 2000 which is not proper and is contrary to the industry's
age-old demand of doing away with 20% compulsory cession and as such is unacceptable. It
was observed that this could be achieved by creating excess capacity pool which should be
managed by the Members of IAP and manned by highly professional persons.
Insurance Tribunal & Ombudsman
It was observed that in the presence of powers given in the Pakistan
Penal Code both Insurance Tribunal & Ombudsman are not necessary as these are one
sided and are for the grievances of the insured only. No relief have been provided to the
insurers through these institutions. It is suggested that the powers given to the
Insurance Tribunal & Ombudsman be reconsidered.
The Chief Executive, Ministers for Finance & Commerce, Secretaries
of the Ministries of Finance & Commerce, Chairman, Securities Exchange Commission of
Pakistan & the Controller of Insurance have been requested to intervene in the matter
and withdraw the issuance of the proposed Insurance Ordinance as it will give more harm
than good to the insurance industry and will not solve any problem.
Deutsche Bank's Chief Country Officer, Mr. Arif Ali and Head of Global
Banking Division Pakistan, Mr. S. Omar Hassan look on as Ms. Roshaneh Zafar, Managing
Director, KASHF Foundation signs the documentation for a US$ 75000 loan being provided by
Deutsche Bank to the KASHF Foundation.
Karachi Sheraton Hotel & Towers was the venue for a press
conference hosted by UTV, which with its spacious banquet facilities to meet varying
needs, is an ideal location for meetings, conferences and seminars. This press conference
was held to announce the launch of a global Urdu Channel called UTV, which will be based
in UAE. Seen here are the senior members of the organization, addressing the members of
Governor Sindh, Mr. Mohammadmian Soomro addressing the President of the
National Bank of Pakistan, Mr. Mozaffar Iqbal and other senior executives of NBP, at a
meeting held at the National Bank's Head Office in Karachi, recently.
National Bank of Pakistan and Microsoft Sign Global Enterprise
The National Bank of Pakistan recently signed a global Enterprise
Agreement (EA) with Microsoft, which will enable NBP to significantly reduce its IT
investment costs, by standardising on Microsoft technology.
NBP sees this agreement as a critical move to spur information
technology (IT) based economic development in the country, by promoting respect for
Intellectual Property Rights (IPR) and copyright laws.
"As the largest and most respected government bank in Pakistan, we
feel a deep responsibility to push for the quick adoption of IPR in this country",
said Muzzafar Iqbal, President of the National Bank of Pakistan. "This will not only
attract foreign investors, who are very keen to explore business opportunities in this
country, but will also protect Pakistani intellectual property from illegal practices in
The agreement will not only allow NBP to lower its IT investment costs
across its network of 1431 local and 24 international branches, but will also further
NBP's ambitions to grow its market share in the Internet arena, by allowing it to serve
its customers better through the introduction of online services.
The bank has already standardised on a number of Microsoft desktop
applications including, Microsoft Windows 2000 and Microsoft Office 2000 for its 1,000
users across the organisation. Microsoft Exchange Server was deployed to handle messaging
requirements with Microsoft Internet Explorer as the user interface for the web.
Sysnet of Pakistan was chosen as the direct large account reseller for
the Microsoft EA and was responsible for the deployment of the technology, as well as for
providing the training necessary to meet the bank's long term requirements.
The National Bank of Pakistan is planning to expand its IT
infrastructure in the near future, improving internal communication resources even further
and introducing online services such as Internet banking to its customers.
PACRA NOTIFIES CREDIT RATING OF FIRST HABIB MODARABA
PACRA has assigned an individual rating of 'A3' (A three) to First
Habib Modaraba (FHM). This is the second Modaraba which has been placed in the 'A'
category rating by PACRA. Under PACRA's rating definitions, only such Modarabas are placed
in this category which are considered to be in "outstanding financial condition and
with a consistent record of above average performance".
FHM's rating recognises the high quality of its asset portfolio, steady
growth and the ability to maintain a consistently good performance despite the continuing
difficult operating environment.
Eli-Lilly Celebrates Successful Clinical Trials of
"Cefaclor" and "Lispro" in Pakistan
Eli-Lilly Pakistan Ltd. recently celebrated successful clinical trials
of its two drugs, Cefaclor antibiotic and Lispro antibiotic at a ceremony held at the
company's head office in Karachi.
This is for the first time in Pakistan, that a pharmaceutical company
has conducted the regional, multicentre clinical trials of a new drug in Pakistan, but has
also coordinated the trials being held in different countries from here.
The Principal Investigator for Cefaclor, an antibiotic, was Dr. Shabbir
Kanjee, an eminent ENT specialist at the Civil Hospital, Karachi, and Assistant Professor
at Dow Medical College. Speaking at the occasion, Dr. Kanjee, who has quite a few research
papers and dissertations to his credit, said, " Clinical trials in Pakistan are a
must before the introduction of any new drug, as the findings of medical research
conducted in the West, are not applicable here due to different disease patterns."
Prof. Dr. Javed Akram, Head of the Medical Unit, King Edward Medical
College, who was the Principal Investigator for Lispro, an anti-diabetic, also addressed
the gathering. Speaking at the event, he said, "There is a dire need for medical
research and the clinical trials of drugs in Pakistan. It is especially commendable that
Eli-Lilly has invested so much money and efforts in clinical trials, because there are
very few pharmaceutical companies in Pakistan that are actually involved in meaningful
Eli-Lilly has been serving the country for the last many decades by
providing highly innovative health care solutions. It has contributed vastly to the growth
and development of the pharmaceutical industry in Pakistan.
National Bank of Pakistan Donates Rs. 10 million to the Drought
The Governor Sindh, Mr. Mohammadmian Soomro, received a cheque of Rs.
10 million from Mr. Mozaffar Iqbal, Acting President of the National Bank of Pakistan, for
the drought stricken people of Sindh.
Addressing the top officials of NBP on the occasion, the Governor Sindh
said, "Despite limited resources, we have made all out efforts to provide relief to
the affected families, and by the Grace of God, the situation is fully under
Shedding more light on the Sindh government's efforts to combat the
drought, the governor said that having initiated successful short-term measures, the
government is now working on a long-term plan to supply both irrigation and drinking water
to the drought stricken areas.
The governor lauded National Bank's efforts and hoped that other banks
and financial institutions will also join hands and contribute to fight the drought.
LASMO Employees Donate Funds for Drought Relief Efforts
The employees of LASMO Oil Pakistan Limited donated Rs. 150,000 to the
Edhi Foundation for its drought relief efforts in Sindh and
The cheque was handed over to Maulana Abdul Sattar Edhi, the head of
the Edhi Foundation, by Mr. Neil Booth, Managing Director of LASMO Oil Pakistan Limited,
at the Clifton office of the Edhi Foundation.
Speaking at the occasion, Mr. Neil Booth, MD, LASMO Oil, said, "As
a responsible corporate citizen, we feel it is our duty to assist the people of Pakistan,
especially those in the drought stricken areas of Sindh and Balochistan, in this hour of
LASMO Oil has already donated Rs. 2 million to the Chief Executive's
Drought Relief Found and Rs. 100,000 each to the governments of Sindh and
LASMO Oil Pakistan is a branch of LASMO plc, an international oil and
gas exploration and production company. LASMO has been present in Pakistan for the last
thirteen years, and is actively involved in petroleum exploration and production
activities in Sindh and Balochistan, respectively.
Emirates launches its dss packages on the web
Emirates has launched a website packed with details of its super value
holiday packages produced specially for Dubai Summer Surprises (DSS).
Emirates is once again a major sponsor of this annual summer carnival
for bargain-hunters and fun-seekers, supported by the Dubai-Government, in which the
city's air-conditioned malls and entertainment centres take on a festive air.
The new website at www.emiratesdss.com provides passengers with full
details of the Emirates DSS offer and can be accessed from the comfort and convenience of
their home or office. The site has links to the Emirates Group website
The site can be accessed in Arabic or English, with language change
available instantly at the touch of a button
To drive web users to the site, Emirates has also created a banner
advertising campaign, in which ads run across the top of all the UAE's most popular
commercial websites, including Arabia.com and Dubaionline.com
Full details of the offer, terms and conditions, information about
Dubai and the participating hotels are set out in easy to tallow format. A special office
locator enables passengers to find out the nearest office at which to make their booking.
Ghaith Al Ghaith, Commercial Operations Director,said: aWe recognise
that a substantial section of our passengers now use the Internet as their prime source of
travel information. This new website completes our multi-media campaign for this year's
It also comprises press advertisemennts, posters, and information
leaftlets at point of sale across the airline's network.
Emirates passengers travelling to or through Dubai can enjoy an
unforgettable three-night break from as little as US $ 22 per person per night based on
two people sharing, with extra nights offered at the same prices. The offer is valid from
June 22 to August 31.
The Emirates DSS offer is open to passengers regardless of fare basis
or class of travel and regardless of whether they fly into Dubai as their final
destination or en route to one of Emirates 50 other destinations around the world.