April 07 - 13, 2003 




ACCA and WWF Pakistan announced "ICI Pakistan Limited winners of the inaugural ACCA/WWF Pakistan Environmental Reporting Awards 2002" at the award presentation ceremony held at Lahore Chamber of Commerce and Industry. The Award was presented by Yawar Irfan Khan, President LCCI.



"Unlike government inspired legislation, which has the chance of being implemented without being currently understood by the enforcing executive authority, the PERA experiment seeks to motivate the business community to assess its production processes, factor inputs, the impact of ecology and surroundings" said Yawar Irfan Khan during his speech.

"I commend this initiative taken by ACCA and WWF Pakistan to raise the profile of environmental reporting among companies in Pakistan by introducing ACCA/WWF Pakistan Environmental Reporting Awards (PERA). We hope that the initiative will encourage more voluntary environmental reporting from all type of businesses, thus proving that we can integrate the environmental concerns in economic decision-making."

Arif Masud Mirza, ACCA's Head of Pakistan Affairs said, "The aim of the Awards is to identify and reward innovative attempts to communicate corporate performance, although ACCA/WWF do not comment on performance itself. We want to reward organisations which report and disclose environmental information, raise awareness in corporate transparency issues and encourage the uptake of environmental reporting.

The inaugural ACCA/WWF Pakistan Environmental Reporting Awards was launched in April 2002. When entries closed on 30 September 2002, 9 entries were received.


At the end of the Annual General Meeting, the Allianz Supervisory Board has appointed Michael Diekmann (47) as new Chairman of the Board of Management. Mr. Diekmann currently is member Board of Management, in charge of the insurance activities in North and South America and holds group-wide responsibility for Human Resources. The appointment of Mr Diekmann as Chairman of the Allianz Board of Management is of particular significance to Pakistan since he was personally involved in the joint venture between Allianz AG and the EFU Group here in Pakistan in 2000. More recently, Mr. Diekmann visited this country for the official launching ceremony of Allianz EFU Health Insurance Limited, which was also attended by the then Governor of Sindh, Mr. Mohammadmian Soomro. Dr. Henning Schulte-Noelle (60) has decided to resign from his position as Chairman of the Board of Management of Allianz AG at the end of the Annual General Meeting on April 29, 2003.


Mr Iqbal Sadru-Dean Walji, the Chainnan of AKRSP announced the beginning of a new era in AKRSP's history with the launch of its new five-year strategy 2003-2007. He further said that with this phase, AKRSP begins a new journey towards addressing the future challenges of poverty reduction in the Northern Areas and Chitral and in doing so one should never lose sight of the fact that what really matters is the empowerment of the people of northern Pakistan. "Between them and AKRSP, we have twenty years of shared history and a series of unprecedented milestones where communities have made major strides to address the development challenges of northern Pakistan. It is again time to start strengthening the understanding and trust we so urgently need to usher into the new era. Organisations like AKRSP not only survive leadership and personnel changes; they grow and thrive in the process."




"Our newest Kerbside check-in at Jinnah International Airport, Karachi another special service to our premium passengers, starts from 1st of April 2003", said Mr. Hanspeter Wegmueller, General Manager for Pakistan.

SWISS (Swiss International Air Lines Ltd), Switzerland's national airline prides itself on Swiss values such as quality, reliability, friendliness, safety, efficiency and exceptional service in other words exemplary 'Swissness'. Since its launch, SWISS has created an efficient network that connects business and cultural centres globally. SWISS was recently awarded, the German travel magazine "Business Traveller Award" as the best airline serving North and South America, and ranked No. 3 "Best European Airline serving the Middle East" in a recent survey by Business Traveller Middle East magazine.


Preston University organized a lecture at its Islamabad campus on "Eradication of Polio from Pakistan and World over". Mr. Shakil Ansari, Member Polio Eradication and Fundraising Campaign of Rotary International and Member Rotary Club Islamabad Cosmopolitan (RCIS), was the Guest Speaker on the occasion.

Addressing a large gathering of students, faculty, staff and some senior officials of Preston University, Islamabad Rotarian, Shakil Ansari stated that eradication of Polio from Pakistan and world over was a gigantic but not unattainable task. He said the Government of Pakistan has taken significant strides in this direction, and with the assistance of the international donor agencies it has been able to not only effectively address this phenomenal humanitarian issue but also have appreciable control over it.

He said Rotary International too has significantly contributed towards eradication of this devastating menace from the surface of this earth. He said Rotary International has already contributed millions of dollars towards the endeavors of countries world over to deal with this crippling disease and save teaming millions of this world from being affected by it. He said his organization is gearing itself up to meet the target set forth by the world community to completely eradicate Polio from world over by the year 2005. However, in its endeavors to do so it anxiously looks forward to generous contributions from the privileged, to further strengthen its efforts in this direction. He urged the students, faculty and staff of Preston University to participate in this humanitarian endeavor of Rotary International enthusiastically.


The Pakistan Credit Rating Agency (PACRA) has assigned the entity ratings at 'AA-' (Double A minus) and 'A1+' (Single A plus) for long-term and short-term respectively to First Habib Modaraba (FHM). 'A1+' is the highest level in PACRA's rating scale for short-term rating. Theses ratings indicate a low expectation of credit risk and very strong capacity for timely payment of financial commitments.

The ratings of FHM reflect its consistent performance and effective risk management policy. FHM continues to maintain an infection-free lease portfolio, which demonstrates good credit evaluation and effective post disbursement monitoring systems.

Going forward, the FHM has maintained its steady growth momentum and continues to benefit by the highly professional and experienced senior management team. The rating also reflects continued strong support arising out of the affiliation with the Habib Group.

As agreed with the Modaraba Association of Pakistan, PACRA has assigned the ratings according to the standard rating scale as against the Modaraba Financial Strength Rating Scale previously followed. The adoption of the standard ratings scale is primarily to make modarabas comparable with other entities.


At a Joint Committee Meeting of the Institute of Cost and Management Accountants of Pakistan (ICMAP) and the Institute of Chartered Accountants of Pakistan (ICAP) Muhammad Rafi, FCMA, Vice President of ICMAP, unanimously elected as Chairman of the ICMAP/ ICAP Joint Committee.

Muhammad Rafi, has 26 years of diversified experience in financial and service sectors. Rafi, is on the National Council of ICMAP since 1997 and has been a member of various committees. He has also represented Pakistan at IFAC Public Sector Committee recently.


The 55th Annual General Meeting of the shareholders of Muslim Commercial Bank Limited was held under the Chairmanship of Mian Muhammad Mansha.

Addressing the large number of shareholders gathered at MCB Registered Office at Jinnah Avenue, Islamabad. Mian Muhammad Mansha stated that year 2002 was the first year in the history of MCB, and for that matter in the banking sector of the country, that the Bank made two Interim Dividend announcements besides the Final Dividend. These included 10% Bonus shares, 25% Cash Dividend and 15% Final Dividend against in the form of Bonus Shares. These payments were later approved by the shareholders.

He added that it was matter of satisfaction that PACRA a leading Rating Agency of Pakistan has given the MCB a long-term rating of 'AA' which is one of the best for any bank in Pakistan.

Chairman MCB, emphasized that year 2001 and 2002 had witnessed a noticeable improvement in the economy of Pakistan. The upsurge in inward remittances, proactive policy on debt reduction, implementation of IMF progamme and negligible trade gap had led to progressive strengthening of external account which has led to healthy building up of reserves and had gone a long way in improving the investment outlook of Pakistan.

Mian Muhammad Mansha pointed out that MCB Management has focussed on three main elements as its Operational Plan: (1) Emphasis on technology infrastructure and electronic based value added products (2) Introduction of consumer financing, leasing and cash management to add new revenue sources and (3) To rationalize headcount and organization structure to reduce intermediation cost.



MCB Chairman briefed the shareholders on the financial results for the year 2002 mainly: After Tax Profit of Rs.1.738 billion, up by 57% over 2001. Earnings per share in 2002 of Rs.6.52 compared to Rs.4.16 in the preceding year.

Mian Muhammad Mansha thanked MCB customers for their confidence in MCB operations, as the Deposits increased by 18% i.e. from Rs.154.4 billion in 2001 to Rs.182.7 billion in 2002. The informed that MCB now had nearly 1000 branches and 120 ATMs installed all over the country which was the largest number for any bank in Pakistan.

Total appropriations during the year amounting to Rs.1.65 billion for Dividends Bonus and Statutary Reserve, while Rs.0.62 billion was carried forward as "unappropriated" profit. He also pointed out that recovery of non-performing loans had always been management's top priority. During the year 2002 a cash recovery of Rs.2.50 billion was made as compared to Rs.2.19 billion in 2001.

A number of question were raised by the shareholder during the Annual General Meeting which were promptly responded to by the Chairman, Mian Muhammad Mansha, Chief Executive and President Mr. Mohammad Aftab Manzoor, Financial Control Head, Mr. Ali Munir, to the satisfaction of the audience.

Nine Directors namely Mian Muhammad Mansha, S.M. Muneer, Tariq Rafi, Sheikh Mukhtar Ahmed, Mohammad Arshad, Shehzad Saleem, Mian Umer Mansha, Samad Amin and Aftab Ahmed Khan were elected by shareholders for a period of three years.

M/s. A.F. Ferguson & Co. Chartered Accountants and M. Yousuf Adil Saleem & Co. Chartered Accountants were re-appointed as Auditors for the next term.

The Chairman thanked the MCB Management and staff for their untiring efforts during the year 2002.


Pakistan State Oil's radical corporate transformation has been widely appreciated at various international forums, by world's leading consulting and financial advisory firms and by leading educational institutions, Mr. Amjad Parvez Janjua, General Manager, Corporate Planning, PSO, informed senior public sector officers attending a course at the National Institute of Public Administration (NIPA) in Karachi.

Mr. Janjua was delivering a talk on the "Organisational Environment and Effectiveness" the other day as Resource Person for the "Course in Strategic Management".

Twenty-five senior officers from various public sector organizations participated in the course.

Mr. Janjua outlined the subject in context of classical and neoclassical organisation theories, with special references to Schools of Scientific Management (Taylor), Bureaucracy School (Weber), Administrative Management School (Fayol), Human Relations (Hawthorne Studies) and Human Resources (Maslow, Herzberg, McGregor).

He presented a comprehensive analysis of various organisational effectiveness criteria and competing management frameworks.

He highlighted PSO's successful turnaround, detailing the company's comprehensive corporate renewal program, strategic shifts and its transition from drops to rises. This includes streamlining the investment planning process, developing a model for business-wise and product-wise profitability analysis and developing a comprehensive corporate plan. Further steps in this direction include developing information systems for obtaining and sharing up-to-date information on sales and operations on real time basis, lessening the magnitude of information distortion, streamlining inventory information and establishing common data warehouse across the supply chain.



He said PSO's corporate structure has evolved into a matrix, which has divided the company's major operations into independent activities supported by the financial, legal, information and other services. These activities operate in an autonomous and collegial manner in the form of Strategic Business Units based on the clear and transparent allocation of responsibility and accountability.

This structural change has been reinforced and related checks and balances have been established by putting in place several corporate monitoring and control systems, Mr Janjua pointed out.

He said effective implementation of corporate reform and business development strategies in line with best international practices enabled PSO to increase its market leadership position in a highly competitive business environment.