In the Executive Committee of the club, Mr. Idress
Memon, Mr. Mazhar Muneer Jafri, Mr. Muhammed Afzal, Mr. Ghulam Abbas,
Mr. Nasir uddin Akber, Mr. Fayyaz Alam, Mr. Muhammad Naveed Hashmi, Mr.
Ahsan Qadir Munshi, Mr. Abdul Razzak Memon, Miss. Nighat Chishti and
Mrs. Wazahat Naseem were also elected unopposed for the next term. On
this occasion the newly elected President Mr. Shams Zai and General
Secretary Mr. Shamsul Haque in their welcome addresses congratulate the
newly elected office bearers and Members Executive Committee. They said
the process of election reflects the results that committees are very
much cooperative to members.
COMMITTED TO LEADERSHIP
We are in the new Millennium — the much hyped about
21st Century. Society is changing rapidly and moving swiftly toward a
new age, and as we enter that new age, we must develop new leaders, not
just managers, capable of giving guidance, inspiration and new vision
for a new time.
Change is constant and inevitable; things are always
changing. 21st Century leaders must develop the capacity to think
globally and act locally. They must be prepared to deal with a society
experiencing global and social upheaval, rapid technological
advancement, changing power relations, and its impact upon the lives of
individuals and businesses. 21st Century leaders must unite and become
creative forces. Certainly the task ahead of them is seemingly
impossible. However, just as change is inevitable, so is progress. We
are simply experiencing the birth pains of a new era.
We must become new men and new women, and build a new
society that as Jesse Jackson says, prioritizes "human need over
human greed". We must build a society, that as Jesse's son Jonathon
says, "not just for the Rockefellers but for the Little Fellas".
Bishop Desmond Tutu was quoted as saying that he was a "Prisoner of
Hope". If he was hopeful, when under apartheid in South Africa, we
surely have to be inspired and encouraged by his commitment. Remember
every individual is unique and important. Your commitment to leadership
development and social change will enhance your self esteem and self
confidence while building a better world.
We at Faysal Bank Ltd. are committed to become
leaders in banking and we firmly believe that leadership in any arena
has direct relation with the Human Factor. Thus in line with our mission
and our belief, we are constantly investing in the training and
development initiative as we view it as an asset rather than an expense.
We at Faysal Bank have a knack for attracting, developing and retaining
satisfied bunch of employees. And not only this. We are confident that
our consistent hard work and unwaivered commitment will take us closer
to fulfilment of customers' satisfaction and our own aspirations. For
some it could be the zenith. For us at Faysal its just the beginning.
—Muhammad Asha'ar Saeed
MUSLIM COMMERCIAL BANK LIMITED TERM FINANCE
CERTIFICATES HEAVILY OVERSUBSCRIBED
The inaugural Term Finance Certificates (TFCs) issue
of Muslim Commercial Bank Limited (MCB) has been oversubscribed over 6
times. As per initial subscription figures received from the banks, a
total of Rs. 1207.78 million was received against Rs. 200 million
offered to the general public. This is the largest ever public
subscription received for a TFC offering to date. The total issue
consists of Rs. 1600 million out of which Rs. 1400 million have been
taken up by pre-IPO investors.
This is the first subordinated TFCs issue by a
banking company in Pakistan. Backed by the credentials of MCB, the issue
has attracted massive public response. Investors who applied through the
public offer belong to various categories such as
provident/pension/gratuity funds/Trust, insurance companies, financial
institutions and individual investors. The Issue was advised and
arranged by the Consortium of ABN AMRO N.V., Pakistan, Jahangir Siddiqui
& Co. Ltd. and Global Securities Pakistan Ltd.
The issue has been assigned a rating of A+(A plus) by
JCR-VIS Credit Rating Agency, offering a minimum rate of 11.75% and a
maximum of 15.75% for a tenure of 5-1/2 years.
PSO'S PROFITS GROW BY 42%
The Board of Management of Pakistan State Oil Company
Limited on Thursday (August 22, 2002) approved a final dividend
comprising 80% cash (Rs 8/share) and 20% bonus shares for FY-2002.
Combined with the earlier two interim cash dividends of Rs. 5 per share,
the total amounts to Rs. 13 per share resulting in the highest-ever cash
payout of Rs. 1.86 billion to shareholders of the company.
The announcement came, as an acknowledgement of the
remarkable financial results as a result of unprecedented operating
performance, at the conclusion of a PSO BoM meeting at PSO House to
review the company's performance and accounts for the year ended June
For the fiscal year ended June 30, 2002, despite the
revenue drop and a record provision of Rs 2 billion made for taxes (an
increase of Rs 800 million) PSO earned an all-time record profit before
tax of Rs. 5.1 billion, up by 49% while profit after tax rose to Rs. 3.2
billion registering a growth of 42% over prior year period. In addition,
the company absorbed the balance financial impact of Rs. 408 million on
account of Voluntary Separation Scheme (VSS) offered in April 2001. Even
after excluding adjustments and inventory gains / losses, operating
profit of the company grew by an impressive 32% over the prior year. The
profit increase is primarily due to innovative marketing strategies,
organizational restructuring, product mix, revamping of internal systems
with improved productivity along with the partial impact of enhanced
margins during the last quarter.
Reduced offtakes of fuel oil by Hubco (around 0.9
million tons) primarily resulted in revenue drop of approximately Rs. 11
billion. Had Hubco's consumption level remained at the preceding year's
level, the company would have not only reflected much higher growth in
revenues but would also have maintained its market participation as fuel
oil demand of this power utility was met by PSO being its sole supplier
under a long-term Fuel Supply Agreement. The Board noted with
appreciation that despite successive drop in international as well as
domestic prices and consumption, specifically during first half of
FY-02, PSO's gross revenues stood at Rs. 182.3 billion, down by 6.5%
over prior period..
FY 2002 experienced global economic recession
triggered by September 11, 2001 incident in the USA followed by
coalition military operation in Afghanistan. Pakistan's proximity to
Afghanistan and a war-like situation on its border with India put
Pakistan's economy under tremendous pressure. Consequently, consumption
of all products in Pakistan, which grew at a CAGR of 7% over last two
decades, dropped by 4% in FY 2002. Consumption of Fuel Oil dropped by
6.3% and that of SKO and LDO dropped by 19% and 15.4% respectively.
Motor Gasoline and HSD registered consumption decline of 2.0% and 0.3%
Despite all the externalities and adverse factors,
PSO sold 11.5 million tons of POL products. The company maintained its
market share of Mogas at 40% while it snatched 1% share in lubricants
and Jet A-1 from the competition. The company managed to contain the
decline in HSD sales volume despite overall low agricultural demand as
well as restricted supplies to agricultural areas adjacent to Indian
border, which have been solely fed by PSO. In addition, aggressive New
Vision Development as well as Defence business won by competition for
FY-02, which is now regained by PSO, also contributed to HSD volume
Innovative ideas and services in retail business with
a particular focus on development of New Vision outlets enabled PSO to
enhance its market participation in Mogas and Lubricants. New Vision
network expanded to 500 retail outlets at an average construction rate
of 2.2 days per outlet. The company successfully equipped 600 retail
outlets with Internet facility while C-Store network was expanded to 56,
whereas 44 CNG facilities were operational. The latest launch of "PSO
Loyalty Card" has been the most innovative marketing initiative,
which has not only enabled the customer to earn "PSO Loyalty
Points" redeemable in three cities, but has also offered them
attractive discounts for their non-petroleum product purchases at a
large number of merchant outlets. Other significant contributors to
PSO's enhanced market participation were highly successful sales
promotion and marketing campaigns, expansion of product range in
lubricants and introduction of computerized complaint lodging system
with toll-free number.
PSO's initiatives entailed the revamping of the
organizational architecture, rationalization of staff, employee
empowerment and development, transparency in decision-making through
formation of various Cross-Functional Teams, and vertical integration
through equity investments in pipeline projects. Implementation of Fleet
Management Plan and Enterprise Resource Planning has been the key area
The Board of Management observed that the just
concluded financial year 2001-02 has been an all-time record year in
term of profits for PSO. The Board of Management expressed its
confidence that in a complete deregulation scenario, PSO is fully geared
to capitalize on its core competencies and take full advantage of
opportunities arising out of changing business environment. PSO's
enhanced profitability in the years to follow would be still better —
thus rewarding all its stakeholders.
PSO WINS WAPDA'S FIRST-EVER INTERNATIONAL FUEL OIL
Pakistan State Oil (PSO), the largest oil marketing
company in Pakistan, has won the first-ever international tender for
Fuel Oil floated by the Water and Power Development Authority (Wapda).
Under the terms of the agreement, PSO will supply two
loads of Fuel Oil, each of 55,000 metric tonnes. The first cargo is
scheduled to be delivered by September 2-4 while the second will be
delivered between September 25-27.
PSO had quoted the premium of US$12.95 and US$13.10
for the two cargoes, which was the lowest as compared to major
international oil traders like Glencore and regional traders Fal and
PSO has been supplying Fuel Oil to Wapda for the past
several years when the prices were controlled by the government. Later,
when the government deregulated the product, Wapda started purchasing
through local tenders. PSO offered very competitive rates and business
by beating local competition. With Wapda going for international tender,
PSO has now beaten international competitors and won the business on
merit. This shows the commitment of PSO to supply HSFO to Wapda at
highly competitive prices.
"We have won Wapda's first international tender
as our rates were most economical," a PSO spokesman said.
"With competitive prices, we are committed to meet the requirements
of the authority in the future also."
The Government of Pakistan had deregulated the import
of Fuel Oil from July 1, 2000 for the oil marketing companies and other
major consumers like the KESC and Wapda. The power utility has become
the first independent consumer to import Fuel Oil.
On July 29th, PSO had entered into an agreement with
Wapda for handling and storage of Fuel Oil. This agreement would
facilitate the power utility to arrange a portion of its annual
requirement through direct imports and PSO would store the product in
its storage tanks for onward transportation to its power stations
located at Jamshoro, Guddu, Muzaffargarh, Faisalabad and Multan.
Under the arrangement, the authority would pay an
agreed hospitality charge to PSO. This would generate certain, assured
and guaranteed ancillary profits for the PSO.
"The agreement has further strengthened the
healthy business relationship between the two organizations and yet
again demonstrated to Wapda that PSO is providing product at very
cost-effective and competitive basis," the PSO spokesman added.
NEW CEO AND NEW MANDATES FOR WORLD GOLD COUNCIL
The World Gold Council Executive Committee has
appointed James E Burton as the new Chief Executive Officer of the
Council with effect from October 1, 2002. He will be based in the World
Gold Council head office in London. The World Gold Council was founded
in 1987 by the world's leading gold mining companies for the purpose of
stimulating the demand for gold by consumers as well as investors.
"I am delighted that we have been able to
attract someone of the calibre of Mr Burton to run the Gold
Council," said Mr Chris Thompson, Chairman of the Executive
Committee. "The World Gold Council has always had the potential to
be a major influence in gold's traditional markets. What we need now is
Mr Burton's extensive experience in the investment arena and his
demonstrated management discipline to make the Council more
effective." With the fundamentals of the gold market outlook
improving and some fresh new investment product ideas for gold in the
pipeline, the future for gold is as bright as I have seen it for some
The new CEO previously served as the CEO of the
California Public Employees Retirement System (Calpers), the largest
public pension system in the USA with $140 billion in assets and 1.2
million participants. Burton pioneered a more active approach to
institutional investing, emphasising corporate governance and management
and board accountability to shareholders. He transformed Calpers to a
value added organization and a global leader in pension investment.
Prior to Calpers, James Burton served as the Deputy
State Controller for the State of California and held various other
posts in the California State Government.
The Executive Committee, after an extensive review by
Bain & Co of the Council's functions, has given the new CEO a
specific mandate to reinvigorate the Council and focus equally on
jewellery and investment demand, as well as on cutting costs on sub
marginal programs. By year's end Mr Burton will present an overall
strategy for the promotion of gold.
"I am thrilled with the opportunity to help
bring gold to the greater attention of the world's markets," said
Mr Burton. "I have spent a tremendous amount of time during the
past several months examining how I can be most valuable to the
investment community in this next phase of my career. I am convinced
that the Council's new focus offers me that opportunity. "