Jan 27 - Feb 02, 2003 



First Grindlays Modaraba (FGM) announced its results for the six months ended 31 December 2002 on January 17, 2003. Commenting on the results, Azhar Hamid, Chief Executive, Standard Chartered Bank and Chairman, Grindlays Services of Pakistan (the management company of FGM) said, "We're very pleased with the momentum and quality of our business. Our results track well with our strong value proposition to our clients, our vision to be the preferred provider of Islamic Financial products in the market and the outstanding contribution of our 



motivated and talented people. They reflect our strong  customer relationship, quality service and market leadership. Our mission is to create exceptional value for our clients, investors and staff, through market leadership in providing innovative Shariah compliant products and solutions, and by adopting and living our core values".

Highlights of results include:

• Operating income up at Rs.552 million as compared to Rs.518 million in the corresponding period last year.

• Net profit up at Rs.86 million as compared to Rs.77 million in the corresponding period last year.

• Non-performing portfolio reduced from Rs.73.8 million to Rs.64.3 million.

The above performance, together with an efficient asset and liability management process, has resulted in a stronger balance sheet as at December 31, 2002. Shareholders' equity stood at Rs.781 million. Medium-term funds raised, through a pioneering Islamic Instrument Certificates of Musharika (COMs) form general public aggregated Rs.414 million as at December 31, 2002. The growth and success of COMs continues to add strength to the business.

FGM continues to maintain the highest 'Modaraba Financial Strength' rating of A2 by Pakistan Credit Rating Agency (an affiliate of Fitch Rating Ltd.) which represents 'a Modaraba in outstanding financial condition with a consistent record of above average performance'.

Standard Chartered worldwide is celebrating the year 2003 to mark the 150 years of its existence in the world of banking across 50 countries. Throughout the year, Standard Chartered will be holding events for not only for its employees and families, customers and dignitaries but also for the communities at large.

According to Mr. Azhar Hamid, Chief Executive Officer, Standard Chartered Bank stated. "We're proud of our past and confident of our future. 150 years with you is a testament of our commitment to and our expertise in our chosen markets. During the year and beyond, we will be celebrating our partnerships which make us unique and which we have fostered since 1853. A true partnership is based upon shared goals, as well as a deep and underlying trust. We believe that how we are seen and how we act are key factors in keeping and strengthening our relationships with our customers."


The Board of Management, Pakistan State Oil (PSO), met here on Thursday, January 23, 2003 to review the half-yearly accounts of the public sector entity. Mr. M. Salim, Chairman, BoM, was in the chair.

Mr Tariq Kirmani, Managing Director, PSO, briefed the BoM members on the performance of the country's largest oil marketing company during the period July 1, 2002 to December 31, 2002.

The Board observed that during July-December general economic conditions of the country improved considerably despite prevailing global uncertainty and escalating Gulf crisis. The domestic economy recovered from the aftermath of September 11 incident as indicated by increased foreign remittances and improved exports. The investment climate also took a favorable turn owing to reduced interest rates and investor-friendly government policies. Similar trend was reflected in the POL industry, which depicted 7.8% growth in white oil products (mogas, diesel, kerosene & jet A-1), while black oil (fuel & light diesel oil) declined by 3.7% thus registering an overall increase of 2.5% over same period last year. During the review period, PSO sales volume increased from 5.2 million tons to 5.4 million tons, up by 3.4% enabling the company to successfully increase its market share in key products.

During the first half of FY-03, the BoM noted, the PSO sales revenue soared to Rs. 101.3 billion, an all-time record since the inception of the company, thus registering an impressive growth of 17.5% over prior year period. For the period ended December 31, 2002, the company earned an all-time record profit after tax of Rs 2.06 billion, while the profit before tax stood at Rs. 2.9 billion.

Based on the unprecedented financial performance, the Board of Management announced a cash dividend of Rs 6 per share (60%) to its shareholders translating into a cash payout of Rs 1.029 billion, as against Rs. 3.00 per share resulting into a cash payout of Rs 0.429 billion in the corresponding period last year.

The BoM also observed that the remarkable profitability of the company was augmented significantly as a result of the right steps taken by PSO management in the right direction in terms of improved productivity and increased efficiencies, aggressive marketing, business processes re-engineering coupled with the full impact of enhanced margins. Increased profit for six months is also attributed to the depressed earnings during the same period last year owing to September 11 incident, which had not only affected the consumption adversely but also resulted in hefty inventory losses to OMCs.

The Board of Management commended remarkable performance of the company and expressed confidence that PSO would set newer landmarks in the following quarters and in years to come.


A recent survey indicates that thousands of tons of agricultural residues on cultivated land in Pakistan go up in flame after every harvesting season because there seems to no use for it. Similarly most of the bagasse, the left over of cane after it is crushed and its juice extracted at the sugar mills is left to be burned. All this adds to the pollution of the rural areas. Thick smoke hangs over the agricultural land during and after every burning process.

This agricultural residue biomass, which is burned after every crop, is a rich source of energy. Technology has been developed to that extent that this rich source of energy, can be converted into gas, which can be used for heating or cooking or for generation of electricity.

Biomass is a renewable resource derived from the carbonaceous waste of various human and natural activities. It is derived from numerous sources including the by-products from the agricultural crops, timber industry, raw material from the forest, major parts of household wastes and wood.



Traditional use of biomass is much more than its use in the modern application. In the developed world biomass is again becoming important for applications such as production of gas and power generation. Biomass is gaining significance as a source of clean heat for domestic heating and community heating applications. In countries like Finland, USA, Sweden, China and in India the per capita biomass energy consumption is becoming higher and higher.

Biogas technology provides an alternative source of energy in rural China and India. Indian sugar mills are rapidly turning to bagasse to generate electricity. It is mainly being done to retrieve the energy from waste and cut down power expense in addition to earning additional revenue. Accordingly to a recent estimate in India about 3,500 MW of power can be generated from bagasse in the existing 430 sugar mills in the country. Around 270 MW of power has already being commissioned and more units are under constructions.

Pakistan being an agricultural country has an immense potential for production of gas and generation of electricity from biomass right at the doorsteps of the rural communities instead of burning it on the lands. In Pakistan Biomass Gasifier and Generation System developed in China as the most sustainable and appropriate equipment for developing country like Pakistan has been introduced by Business Associates International (BAI) Karachi and Islamabad based company, which represents the manufacturers. The plants supplied by them is in used in several countries in Asia including China, India, Malaysia, Thailand etc. Most recently a plant of 200 KW has been installed at Eastern Malaysia. The fuel for these plants are rice husk, cotton stalk, bagasse, empty fruit bunch in coconut trees etc.


Sher Afgan Malik senior Fellow member of the Institute of Cost & Management Accountants of Pakistan (ICMAP) has been elected the new President of the ICMAP for the tenure 2003-2005 in 199th National Council Meeting.

Malik has 35 years extensive and diversified work experience in managing, reorganizing and establishing new Industrial and Trading Companies. He has worked in Saudi Arabia, USA, UAE and Pakistan. He has served Chief Executive of a large business group in Saudi Arabia and held several important positions prior to that. He was responsible to create several ventures/joint ventures with multinational companies like SSANG YONG group of South Korea, Mitsubishi Corporation, Marubeni Corporation of Japan, Goodyear corporation of U.S.A., Northrop Corporation of U.S.A., U.S. Corp. of Engineers, Page Communications Inc., and U.S. Air Force etc. etc. He has also held the position of the Managing Director of Pakistan International Airlines Corporation.

Sher Afgan Malik became the 14th President of the Institute since Institute's inception in 1951.

Following other Office Bearers were also elected for the same term: Vice President, Muhammad Rafi, FCMA, Honorary Secretary, Raheel Asghar Ginai, FCMA and Honorary Treasurer, Muhammad Azam Khan Shad, FCMA.


Teradata, a division of NCR Corporation (NYSE: NCR), announced recetly that the Coca-Cola Company, the world's largest beverage company and leading producer and marketer of soft drinks, has upgraded its Teradata® enterprise data warehouse to further support its data warehousing strategy. With its Teradata system, Coca-Cola Company will be able to expand its processing power and make better, faster decisions based on actionable information.

"In today's competitive market, companies such as Coca-Cola need technology that can address the most complex business problems while rapidly delivering the highest return on investment," said Rocky Blanton, vice president of Teradata's national accounts division. Teradata, with its unrivaled strength, can provide the data warehouse and analytical applications to meet their needs now and in the future."


Standard Chartered hosted its first-ever Classic Golf Tournament at the Karachi Golf Club (KGC) on January 18-19, 2003. The tournament was well attended with approximately 250 participants belonging to the Karachi Golf Club.

"Standard Chartered believes in activities that foster a participatory feeling within the community. In this respect, the Bank believes that sport is the best form of such activity as it brings people together in a forum where people interact in an environment of good, healthy, competitive fun. Above all it allows for a much needed physical exercise and break from the stressful daily life," stated Mr. Azhar Hamid, Chief Executive Officer, Standard Chartered Bank.

A prize distribution ceremony was held with Vice Admiral Muhammad Haroon HI (M), T.Bt, Chief of Staff, Pakistan Navy, presiding as the Chief Guest. Prizes distributed included: a Honda Civic, Rs. 75,000 cash prize, Callaway Golf Sets for a hole-in-one for other categories, and other attractive prizes for different golfing achievements.



The Classic's sponsorship is also the official launch of the Bank's 150th year celebrations. Standard Chartered worldwide is celebrating the year 2003 to mark the 150 years of its existence in the world of banking across 50 countries. Throughout the year, Standard Chartered will be holding events for not only for its' employees and families, customers and dignitaries but, also for the communities at large. Launching the bank's celebrations in Pakistan, Mr. Azhar Hamid, Chief Executive Officer, Standard Chartered Bank stated, "We're proud of our past and confident of our future. 150 years with you is a testament of our commitment to and our expertise in our chosen markets. During the year and beyond, we will be celebrating our partnerships which make us unique and which we have fostered since 1853. A true partnership is based upon shared goals, as well as a deep and underlying trust. We believe that how we are seen and how we act are key factors in keeping and strengthening our relationships with our customers."

The bank's association with Karachi Golf Club, arguably the premium and the oldest golf club in the city, is an old and a cherished one. On the fairways, the 2nd Hole is sponsored by Standard Chartered.

In Pakistan, Standard Chartered is the largest foreign bank and the only one with a presence in every province. Customers of the Bank can enjoy access to a wide network of 21 branches and over 120 ATMs across Pakistan.

"The merger of Grindlays with Standard Chartered Bank has created the premier international bank in Pakistan and put us in a position to deliver significant benefits in terms of network, products and customer service. The significant value that the Grindlays franchise has brought to the Standard Chartered Banking Group was clearly reflected in our annual results for the year 2001-2002 and Pakistan is now a key market for growth within the Group," said Azhar Hamid, Chief Executive Officer, Standard Chartered Pakistan.


Worksite Marketing is the sale of financial service products and other services to employees, and in some cases their dependents, through the workplace where, participation is entirely on a voluntary basis and an employee pays for products, generally through payroll deduction".

Worksite Marketing represents a huge opportunity for Allianz in Asia. It has the potential to become a core competence within many markets. With higher levels of persistency and lower cost per sales than traditional agency distribution, Worksite Marketing offers great potential for those who are interested in exploring new revenue streams with minimum risk and impact on their existing operation. Therefore, there is now a window of opportunity, which may present a unique competitive advantage for Allianz in Asia Pacific and Allianz EFU in Pakistan.

In general, due to the rising healthcare cost and unfavourable economic circumstances in the region, a large percentage of employers are finding it difficult to offer or contribute to their employees' medical benefits. Following are some of the recent available facts:

Around 50% of all the employers do not and cannot offer medical benefits to their employees.

More than 50% of the employers say that the major reason they don't offer benefits is because of cost.

Two-thirds of small business owners say that offering medical benefits has an impact on their business.

Almost 95% of low wage full time workers have been uninsured till 2001.

More than 75% of all employees agree that they would buy health insurance through payroll deduction if it is available, affordable and endorsed by their organization.



Allianz EFU, Pakistan's first specialized health insurer took this as a challenge. After introducing health insurance for companies and individuals, Allianz EFU now brings for the very first time, Health Insurance Through The Work Place. As Worksite Marketing gives an opportunity to the employers to offer medical benefits to its employees through payroll deduction, this scheme brings numerous advantages for both employer and the employee. By endorsing Allianz EFU and its products/services and agreeing to payroll deduction (premium) the employer can arrange for medical benefits for its employees without any financial commitment and obligation. On the other hand, the employees will have the advantage of paying the premium in installments without any mark-up making the scheme attractive and affordable to them.

With employers moving towards voluntary benefits, Worksite Marketing offers an exciting opportunity for Allianz, globally and locally, to offer something distinctive in a marketplace to a ready, captive audience.