June 10 - 16, 2002
PSO TO INTRODUCE LOW SULPHUR CONTENT USD IN PAKISTAN
Pakistan State Oil (PSO), the largest oil marketing
company in the country, will soon cross another milestone by
introducing low sulphur content High Speed Diesel (HSD) in Pakistan
for the first time.
The high sulphur content in diesel causes serious
environmental problems such as acid rain, pollution of drinking water
and damage to ozone layer. The combustion products of High Sulphur
Diesel are toxic and carcinogenic and produce air borne particulate
matter, which leads to asthma and lung diseases.
PSO is importing 1.6 million metric tonnes of .5
percent sulphur HSD from July 1st to December 2002 through the Kuwait
Petroleum Company (KPC).
Approximately, 4.8 million metric tonnes of HSD is
imported by Pakistan every year. Of this, PSO imports 3.3 million
metric tonnes from KPC through term arrangement.
PSO is the first OMC in Pakistan that is improving
low sulphur HSD under term contact.
PSO SAVES $2.72 MILLION ON FO IMPORTS
Pakistan State Oil (PSO), the largest oil marketing
company in the country, will save around $2.72 million towards the
import of Fuel Oil during the second half of this calendar year (July-
The savings were achieved through effective price
negotiations with the existing suppliers of the term contract for the
supply of Fuel Oil over the first half of the year.
The suppliers selected for the second half of the
year are Glencore (70,250 MT), Fal Oil Company (315,500 MT), Bakri
International (603,000 MT) and Hascombe (267,000 MT).
The impact of these savings will be two-fold. The
lower cost of imports will be passed on to consumer in terms of lower
price while precious foreign exchange of the country will be saved.
PSO has saved a huge amount of Rs 2.3 billion in
foreign exchange towards the cost of HSD imports in the country during
the last year.
TEXTILE INDUSTRY PROTESTS INCREASE IN LOCAL POLYESTER
Mr. Nadeem Maqbool, Chairman APTMA has strong
protested against the continuous increase in the price of locally
produced polyester staple fibre which is a key input for the domestic
textile industry. The domestic manufacturers have been continuously
increasing the prices for the Industry for the last two months
resulting in exorbitant increase in the operating costs for the
industry and serving to make it uncompetitive. Since the end users of
yarn and fabric are not accepting this incessant rate increase, the
domestic textile industry has started to suffer losses and some units
are on the brink of closure.
The price trend chart given below shows that in the
last two months the polyester manufacturers have increased the price
by almost 25%.
15 Mar Rs. 51.09 per kg
15 Mar Rs. 53.09 per kg
01 Apr Rs. 57.09 per kg
15 Apr Rs. 59.09 per kg
15 May Rs. 61.09 per kg
31 May Rs. 64.09 per kg
Polyester fibre is a critical raw material for the
Spinning Industry and these increases will only serve to further
reduce Pakistan's exports of synthetic textiles.
Mr. Nadeem Maqbool urged the Government of Pakistan
to take stock of this monopolistic attitude and urgently ask the PSF
industry to desist from holding the textile industry hostage. Chairman
APTMA also proposed to the government to eliminate the import duty on
polyester staple fibre and bring it under the free import/export
regime as is the case with all other raw materials such as cotton,
leather, etc. According to him, the operation of a free market
mechanism would ensure that the local industry is allowed to operate
under internationally competitive conditions which is very essential
given the imminent New World Order.
GOVERNOR SINDH INAUGURATED NEW CHALLI BRANCH OF PICIC
PICIC Commercial Bank as a part of its expansion
plan of opening another 22 branches during 2002 opened its first
branch at New Challi Karachi which was formally inaugurated by
Governor of Sindh Mr. Mohammadmian Soomro. Another 9 branches are
ready which will be operational before June 30, 2002 thus increasing
the existing network of 20 branches to 30 branches before end of June
2002. The remaining 12 branches will also be in place for offering
their personalised services to the public by October 31, 2002.
Not ignoring its economic responsibilities towards
country PICIC Commercial Bank has extended credit to small &
medium enterprises and deserving farmers/growers, so as to enable them
to achieve self-sufficiency. Another unique feature of the bank is to
extend Talimi Loans to students of various universities and institutes
which is receiving overwhelming response. By virtue of this product
PICIC Commercial Bank is meeting its social responsibility of
improving quality education which is the need of hour.
PAK-LIBYA'S BOARD APPROVES INVESTMENTS OF RS. 395
The 62nd meeting of the Board of Directors of
Pak-Libya Holding Company (Private) Limited was held on Thursday May
30, 2002 at the Company's Registered Offices at Karachi under the
Chairmanship of Mr. Nagmeddin Hemali Mokhtar and attended by Mr.
Khalid Sharwani (Managing Director), Mr. Ramadan A. Haggiagi (Deputy
Managing Director) and Dr. Ashfaque Ahmed Khan (the nominee Director
Government of Pakistan).
The Board was informed that Pak-Libya is
repositioning itself to improve performance by way of building a
cheaper resource base and targeting quality investment opportunities.
In this context a joint mandate to National Bank of Pakistan and
Pak-Oman Investment Company (Pvt) Limited had been awarded for
arranging and floating underwritten listed Term Finance Certificates (TFCs)
of Rs. 600 million.
The Board discussed the performance of the Company
and expressed satisfaction on its overall activities and also
appreciated the efforts of the management towards business
development, consolidation of strategic investments and tapping new
resources for fund mobilization.
The Board also approved total financing of Rs. 395
million in seven (7) projects from fertilizer, financial, textile,
energy and services sector. Inclusive of these seven projects, Pak
Libya has recently sanctioned a sum of Rs. 616 million to eighteen
(18) projects of textile, chemical, cement, fertilizer, financial and
energy sector since January 2002. The Company also arranged a
syndicate of a lease of Rs. 100 million and more syndications are in
process of finalization.
The Board appreciated the efforts made by the
Company in diversifying its operational activities and income base in
line with changing market scenario. The Board was particularly
appreciative of Pak Libya's efforts towards building the synergy among
the Pak-Libya's subsidiaries, taping new resources and developing new
MAYA, THE ULTIMATE TECHNOLOGY NOW IN PAKISTAN,
LAUNCHED BY ARENA MULTIMEDIA
Arena Multimedia has included Maya, 3D software, in
A seminar was organized on May 31, 2002 at FTC to
launch the new curriculum ADIM with Maya. Maya is very powerful and
productive software used for character animation and visual effects.
From feature film to interactive video games Maya lets you play the
role of director, actor, set designer and cinematographer at the same.
The world-class famous movies like Shrek, Final Fantasy, Mummy's
Return etc, are made in Maya. Key persons from the industry were
invited to speak on the scope of Maya in Pakistan and abroad.
The industry and the students appreciated this
launch as there is a great demand in the international market for
people who can work on this and most of the work is done in Maya.
Previously we did not have the people with the expertise in Maya, but
after the introduction of this software in Arena curriculum we will be
self sufficient in this latest technology. This would bring tremendous
improvement in the Multimedia industry and would reduce the cost of
production since all animations and production work would be possible
in the country, which used to be done in India and other advanced
More than 400 people including the Arena students,
Arena management, corporate guest from the Advertising agencies,
Production houses and press and electronic media attended the seminar.
Speakers included Mr. Shariq Mushir, Pyramid Productions, and Mr.
Suqlain Zaidi, Post Amazers, Mr. Arshad Khalil, Master Franchisee
Arena Pakistan, Mr. Salman Zeni, Business Manager Arena Pakistan, Mr.
Kashif Usman, Allianz EFU, Mr. Yassir Abbas, Orix Leasing, Ms. Saima
Manzoor, President AMSA.
SAFETY, SECURITY, HEALTH & ENVIRONMENT AT ICI
ICI Pakistan endeavours to provide a safe and
healthy work place for both its employees and contractors and strives
to act responsibly towards the communities and the environment in
which it operates. This is achieved by the improvement of its first
class Safety, Security, Health & Environment, SSHE performance
through corporate leadership, the dedication of its staff and the
application of the highest professional standards in its work. For ICI,
the safety of its stakeholder is of utmost importance. It is this
challenge that drives the stringent rules that safeguard its
stakeholders and protects the environment, in which we all live and
ICI Pakistan has maintained its strong commitment
to good Safety, Security, Health and Environmental (SSHE) performance
in all its operations. This is achieved through dedicated efforts to
maintain standards and performance objectives agreed on an
international basis within the ICI Group of Companies worldwide. The
Company has progressed further in its continuous improvement strategy
by defining demanding performance targets under a new phased programme
called SHE Challenge 2005, which covers all aspects of Safety,
Occupational Health, Environment, Product Stewardship and
ICI Pakistan manufactures and sells a range of
industrial and consumer products, including, Polyester Staple Fibre,
Soda Ash, Sodium Bicarbonate, Paints, Specialty Chemicals,
Agrochemicals, and arranges manufacture on a toll basis of
Pharmaceutical products as well as trading in various specialised
chemicals including Polyurethanes, Acrylics and Titanium Dioxide for
use in industries in Pakistan. In 2001 the Company's PTA Business was
demerged to be housed in Pakistan PTA Limited, which is also an ICI
Plc subsidiary. This business was set up in 1995 and a USD 490 m PTA
Manufacturing facility at Port Qasim was commissioned in 1998. ICI
Pakistan has a 25% shareholding in Pakistan PTA Limited, which is a
public quoted company.
Turnover of ICI Pakistan Limited for the year ended
31 December 2001 was Rs 12.8 bn and gross assets employed amounted to
Rs 14.98 bn. It is one of the largest quoted companies in the Karachi,
Lahore and Islamabad Stock Exchanges with a paid-up share capital of
Rs 1.4 bn. The Company has 1421 direct employees and over 1400 people
provide services through contractual arrangements. ICI Pakistan has a
proud history of sustained investments in the Pakistan economy in
With annual sales of Rs 12.8 bn in Pakistan and
progressive profit improvement, ICI Pakistan creates value for over
ICI SHE BELIEFS AND PRINCIPLES
Our goal is for ICI to be the industry leader in
the production and sale of products, which benefit society. We will
provide a safe and healthy work place for both staff and contractors,
and will act responsibly towards the communities and environment in
which we operate.
This will be achieved by the continuous improvement
of our first class SHE performance through corporate leadership, the
dedication of our staff and the application of the highest
professional standards in our work.
The principles, by which we operate, within the
limits of current knowledge, are:
•All work related injuries and illnesses are
preventable. Our goal is zero harm.
•All escapes of hazardous materials can be
prevented and emissions in the course of operation will progressively
be reduced towards zero.
•We will adhere to the highest standards for the
safe disposal of waste materials.
•Energy, water and other resources, both natural
and man made, will be utilized efficiently. We will minimise waste.
New products can be developed which have increasing
margins of safety for users and the environment throughout their life
•Line management are accountable for leading the
continuous improvement in SHE performance to defined goals.
•Everyone has a personal responsibility for their
own safety and health, for others in the workplace and for the
environment in which they work. Safety and good health are equally
important away from work and will be encouraged.
•Everyone should be involved in the SHE
•ICI contractor SHE performance will be managed
by them to the same standards.
•Information on SHE performance will be made
available to those around us.
We are individually and collectively committed to
these principles and expect all who work in ICI to behave in
accordance with them. We will actively promote these principles
through the ICI Group.
The Security function in ICI Pakistan has been
amalgamated with that of Safety, Health and Environment, under the new
Responsible Care Management System, and overall Corporate Security
across the Company has been reviewed by consultants. Their
recommendations, which are under implementation, are expected to
produce significant improvements.
ICI Pakistan's manufacturing sites, all equipped
with excellent effluent treatment facilities, have continued to meet
with all applicable National Environmental Quality Standards (NEQS).
The Company also continues to provide support and assistance to the
further development of national environment programmes through various
industry and trade organisations.
As a good corporate citizen, ICI Pakistan is
committed to the development of the country and is sensitive to the
needs for social development and community services. Social
initiatives include educational assistance; medical care facilities
and support to community developmental projects.
MICROSOFT AND SONERI BANK LIMITED SIGN ENTERPRISE
Microsoft Pakistan and Soneri Bank Limited signed
an Enterprise Agreement, embarking on a relationship that will help
one of the leading banks to introduce new and innovative technology
concepts and introduce effective systems in the organization.
Mr. Mohammed Kateeb, Managing Director, Microsoft
Middle East and Mr. M. Karun Naseeruddin, SEVP & GM of Soneri Bank
Limited signed the agreement. Also present on the occasion were Mr. M.
Haider Devjianie, SVP & IT Head, Soneri Bank, Mr. Abdullatif Al
Mulla, Regional Manager, South Gulf, Microsoft, Mr. Jawwad Rehman,
Country Manager, and Mr. Asim Haque, Enterprise Account Manager,
The Enterprise Agreement will enable Soneri Bank to
deploy the latest technology introduced by Microsoft over the 3 year
term of the Agreement. The latest products can be used in the Bank to
improve productivity and to provide better services to its customers.
"Microsoft is happy with this decision of
Soneri Bank Limited, a leading private bank in Pakistan, to enhance
its technological capacity and thereby improve its services. I am sure
it will be of immense value to the organization," said, Mohammed
Kateeb, after the signing of the agreement.
Mr. M. Karim Naseeruddin of Soneri Bank Limited
commented, "The bank is committed to the advancement and
introduction of technology related services to our customers, I am
sure the signing of this agreement will help us a great deal in
achieving this objective".
ABN AMRO RAISES OVER PKR 7 BILLION ACQUISITION FINANCE
FOR FAUJI FERTILISER
Fauji Fertiliser Company Limited made the full and
final payment to the Privatisation Commission for the purchase of 54
million shares (representing 90% of the outstanding share capital) of
Pak Saudi Fertiliser Limited.
AMRO N.V., FFC deposited a total of PKR 7,185.90
million on May 30 and May 31.
ABN AMRO was the Lead Arranger in this transaction
for raising the acquisition financing and the syndication led by it
was completed in a record time of less than 5 weeks. To date, this
financing represents the largest private sector syndicated dept
arrangement in Pakistan.
The syndicate included: 1)AlBaraka
Islamic Bank; 2)
Askari Commercial Bank Limited;
3) Atlas Investment Bank Limited; 4)
Bank Alfalah Limited; 5)
Bank of Khyber; 6)
Bank of Punjab; 7)
Bolan Bank Limited; 8)
Citibank NA; 9)
Faysal Bank Limited; 10)First
Women Bank Limited; 11)
Habib Bank AG Zurich; 12)
Jahangir Siddiqui Investment Bank Limited; 13)
Meezan Bank Limited; 14)
Metropolitan Bank Limited; 15)
Muslim Commercial Bank Limited, 16)
Pak-Libya Holding Company (Private) Limited; 17)
Pak-Oman Investment Co. (Private) Limited; 18)
PICIC Commercial Bank Limited, 19)
Saudi Pak Commercial Bank Limited:
20) Saudi Pak Industrial & Agriculture Investment
Company (Private) Limited; 21)
Soneri Bank Limited; and 22)
Union Bank Limited.
Under the GoP's Privatisation programme, PSFL was
offered for sale at a sealed bid auction on March 09, 2002. FFC was
declared the successful bidder with its bid price of PKR 135.85 per
share. The CCoP approved this bid price and issued the LoA on March
11, 2002. As per the terms of the LoA, payment towards 54 million
shares was to be made within 90 days of the issuance of LoA. However,
actual payment was made 10 days before the deadline set by the
Privatisation Commission. The total acquisition value for 54 million
shares amounts to PKR 7,335.9 million, of which PKR 150 million was
paid by FFC at the time of bidding as Earnest Money. With full and
final payment, FFC has assumed management control of PSFL as of May
The successful completion of the acquisition of
PSFL represents a milestone transaction for FFC and the Privatisation
Commission and will provide impetus to the GoP's Privatisation
programme in the future. It also manifests ABN AMRO's commitment to
Pakistan and the Bank's distinction of being the top syndicated debt
arranger in the country.