April 28 - May 04, 2003 




1 LINK, a nationwide inter-bank shared ATM network switch was officially launched at a signing ceremony held at ABN AMRO. 1 LINK member banks include Allied Bank, ABN AMRO Bank, Habib Bank, Askari Commercial Bank, United Bank Limited, Soneri Bank, Union Bank, Bank AL-Habib, Bank Al-Falah, National Bank of Pakistan and PICIC Commercial Bank. Picture shows senior executives of member banks at the signing ceremony.




Standard Chartered recently arranged a Rs. 1 billion syndicated loan facility to Sui Northern Gas Pipelines Limited (SNGPL) to finance the company's ongoing Gas Infrastructure Development Plan (GIDP). The project is being carried out to displace furnace oil through the supply of indigenous gas from Sui and newly discovered fields in the south to power stations in and around Multan.

A signing ceremony, attended by senior management teams of both Standard Chartered and SNGPL, was held at SNGPL's premises in Lahore to commemorate this occasion. Mr A. Rashid Lone, Managing Director signed on behalf of SNGPL while Mr Azhar Hamid, Chief Executive signed on behalf of SCB. Commenting on the transaction, Mr. Azhar Hamid, Chief Executive Officer, Standard Chartered Bank stated, "Our commitment to Pakistan is absolute. We are keen on building long term alliances with reputable partners, resulting in synergies and value addition for not only our customers but for the Pakistani nation at large. Our partnership with SNGPL goes a long way in strengthening our promise to provide continuous support towards the developmental needs of Pakistan."


Prof. Dr. Khawaja Amjad Saeed, Principal Haley College of Banking & Finance, 5th Constituent College of the University of the Punjab was awarded "Quaid-e-Azam Gold Medal" in an impressive ceremony held in the office of Tehrek-e-Karkunan-e-Pakistan for "Best Performance" in the area of his contributions and services for developing youth for the 21st Century.

He was the first Chartered Accountant to start teaching and besides holding eight years of Corporate level experience, he has taught at the post graduate level in Commerce, Economics and Business Administration at the University of the Punjab Private Chartered Universities and Professional Institutes at home and abroad.

He has authored 30 books and his work interaction extends to over 100 countries. Internationally he has been honored by World Apex body of Accountants International Federation of Accountants (IFAC), New York with appreciation scroll twice. He is a visiting Professor in several Universities of SMRC regional and the World including Swinburn University of Technology, Melbourne, Australia and Institute of Management Technology, Ghaziabad, India.

He has the honor of being the President of SMRC Business Schools and South Asian Federation of Accountants and Institute of Cost and Management Accountants of Pakistan.

His mission to serve the society continues.


Shell's Score for More promotion began on 1st January to concide with the Cricket World Cup fever that was soon to rock the country. As the World Cup progressed, the promotion caught on in leaps and bounds and attracted over 30,000 entries during the promotion period. Based on a simple game of cricket, Shell Score for More was as simple as "the more you score, the more you win."



Centred around a 4 "match" game, participating customers could score points or "runs" by collecting scratch cards when fuelling up at Shell stations. The higher they scored, the higher were their chances of winning great prizes.

The promotion was advertised heavily in the press and through colourful banners and buntings at Shell stations. As participating customers chalked up runs, Shell gave out fabulous prizes of 100 mobile phones, 50 DVP Players, 6 Return Tickets to South Africa with stay and 3 cash prizes of Rs. 100,000. Furthermore, the "Best Player of the World Cup" won a Honda Civic VTi through Lucky Draw.

The prize distribution ceremony to handover the Honda Civic VTi was held on April 25, 2003 at Shamim Service Station, Yaseenabad, where the lucky winner, Mr. Ghulam Fareed ul Haq, was given the keys of the car in a simple ceremony attended by Shell's senior management and staff, the dealer and members of the press.


The Board of Directors of Pak-Libya Holding Company (Pvt.) Limited, in their meeting held on March 25, 2003, applauded the efforts of the management for showing remarkable all around improvements in their performance during the first quarter of 2003. The meeting was chaired by Dr. Ahmed Muhamed Aweidat.

The Board also showed its appreciation on the operating results of the company for the quarter ended March 31, 2003 whereby the company has earned a gross profit of Rs. 158.5 million and a net profit of Rs. 138.8 million, which is a significant improvement from the corresponding period of last year. This has made possible only due to restructuring of the company and by effective and efficient management. The Board also hoped that by virtue of the achievements of the first quarter, the year-end results for 2003 would show a continuing trend of enhanced productivity and profitability. In this quarter, the total sanctions made amounted to Rs. 850 million while Rs. 600 million were disbursed during the same period showing a substantial improvement. The Board also approved an investment of Rs. 400 million in different projects relating to construction, textile, financial and communication sectors.

Pak-Libya is a joint stock company commenced its operations in 1980. Equally owned by the Governments of Pakistan and Libya, the Company operates within the framework of banking laws of Pakistan and its operations are routinely supervised by the State Bank of Pakistan.

The authorized and paid-up capital of the Company as on December 31, 2002 stood at Rs. 4,000 million and Rs. 2,103 million respectively. Since inception, the Company has made cumulative investments of around Rs. 8.5 billion in over 200 industrial projects and has paid cumulative dividend of Rs. 2.2 billion to its shareholders as cash and stock dividend. Pak-Libya has also played a vital role in the development of the capital market of the country as well as its treasury is also one of the best among the Development Financial Institutions.

The Company has recently undergone with some administrative and financial reconstruction with a focus to improve efficiency and its positioning in the market. The management has also planned to explore the new investment/financing avenues to tap the potential in the consumer financing market. With an improved efficacy, better operating results and future plans for growth, the company is now poised for attaining new heights of growth and profitability.

The representative of the shareholders of the company i.e. the State Bank of Pakistan and the Libyan Arab Foreign Investment Company also met on April 24, 2003 to approve the accounts of the company for the year ended December 3l, 2002 and recognised the improved performance of the company.


The Board of Directors of Muslim Commercial Bank, which met in Lahore on April 28, 2003, under the Chairmanship of Mian Muhammad Mansha, has announced an interim cash dividend of Rs. 1.50 per share for the first quarter of the year 2003 ending 31st March, 2003.

Muslim Commercial Bank is the only bank in Pakistan which gives dividends on the basis of quarterly performance. In the year 2002 also, Muslim Commercial Bank gave a bonus of 10% to the shareholders for the corresponding period.

The financial statements presented to the Board of Directors, showed that during the first quarter the bank earned a Profit Before Taxation of over Rs. 1.2 billion which was 81% higher than that of period January-March, 2002. The net profit after provision for tax of Rs. 460 million, was Rs. 743.7 million. After appropriation of Rs. 148.7 million for statutory reserve and Rs. 600 million for General Reserve, the Board of Directors recommended an interim dividend of Rs. 15% to the shareholders for the year 2003.


1994 saw the beginning of the largest joint venture in the private sector of Pakistan, Saigols Qingqi Motors Limited, a combination made up of the Saigol Group of Companies and the China Qingqi Group.

China Qingqi Group's vast and diverse experience, combined with the Saigol Group of Companies long-standing credibility and business acumen, has brought to light the enormous success and the vast future potential of Saigols Qingqi Motors Limited.

The Saigol Group of Companies realized the dire need for low-cost transportation in Pakistan. The motorcycles being manufactured at the time was way above the affordability level of a vast majority of people. Undeniable is the fact that affordable transportation plays a pivotal role in the economic development of any country, Pakistan being no exception.

The forecast and vision of China emerging as a formidable industrial power was envisioned by the Board of Directors, Saigol Group and the Chairman, Mr. Azam Saigol. This and the enduring friendship shared between Pakistan and China over the decades became the rationale for the decision of partnering a business concern from China.

The China Qingqi Group is a state-owned enterprise and one of the largest manufacturers of motorcycles and scooters in the world. China Qingqi Group's gambit of activity includes industrial manufacturing, trade, scientific research, medicine, information technology, construction, hospitality and agriculture. CQG has an active presence in 32 countries and is the pioneer of the two and three-wheeler, with over 40 years of manufacturing experience.

Saigols Qingqi Motors has created a virtual revolution in modern-day transportation in Pakistan wit the Qingqi 3-wheeler and the recently launched 100cc, 4 stroke, two wheeler. The company has one sole objective in mind; to provide affordable, quality transportation to customers and provide a comprehensive after-sales service with full back-up of spare parts.

Saigols Qingqi Motors is ISO 9001-2000 certified and carries the stamp of approval of the Pakistan Standards & Quality Control Authority. The plant has an annual production capacity of 60,000 units. With the growing market demand, it's anticipated production facilities will be expanded in the future.


Allianz EFU recently participated in a fund raising event organised by one of the leading hospitals of its network, with the aim of extending support to the needy patients of Pakistan.

With the intention of playing an active role in uplifting the local community and providing solutions to community problems, Allianz EFU aims to encourage and promote such activities.

"Keeping the people healthy and taking care of them is what we specialize at and we want to distinguish ourselves as a care company. One of our goals is to improve accessibility to quality healthcare in Pakistan," said, Mr. Ahmirud Deen, the Chief Executive Officer of Allianz EFU.

Allianz EFU's commitment to the people of Pakistan is reflected by its continuous strive to make its services easily accessible in Pakistan. Its genuine, affordable service propositions to the consumers of Pakistan makes the company unique in its operations.

Allianz EFU is Pakistan's first and only specialized health insurance company. It is the only company that offers health insurance solutions to individuals, families, companies and volunteer groups. Allianz EFU Health Insurance is a joint venture between Allianz Group and EFU Group. Founded in 1890 in Germany, Allianz AG has 60 million clients in over 70 countries, with a broad range of services via an international network of subsidiaries.




First Grindlays Modaraba has revised the rates on its Certificates of Musharika with effect from 28th April 2003.

The revised rates applicable on various tenors are as follows:


Rate per annum

3 months


6 months


1 year


2 years


3 years


4 years


5 years



The Board of Management, Pakistan State Oil (PSO), met at Company's head office PSO House on April 25, 2003 to review the third-quarter FY-03 accounts of the country's largest and premier oil marketing entity. Mr. M. Salim, Chairman, BoM, was in the chair.

Mr Tariq Kirmani, Managing Director, PSO, briefed the BoM members on the performance during the quarter ended March 31, 2003.

During the third quarter of FY-03, the BoM noted, the PSO sales revenue increased to Rs. 55.09 billion, up by 30% over prior year period, thus, achieving an all-time record since the inception of the company. On year-to-date basis, the sales revenue stood at Rs. 156.39 billion (an increase of 21.6%).

For the period January-March, 2003, the company earned profit before tax of Rs. 1.78 billion, which has remained consistent over corresponding period last year, while it posted the profit after tax posted of Rs 1.195 billion. The YTD increase was very vivid and pronounced as the company posted unprecedented profit before tax of Rs. 4.68 billion, registering an impressive growth of 82% over the same period last year. The profit after tax also rose to Rs 3.26 billion (up by 90.5%).

Based on the phenomenal financial performance, the Board of Management announced a cash dividend of Rs 3/- per share (30%) to its shareholders, Rs. 1/(10%) more than that declared for the corresponding period last year. Combined with the earlier declared interim half-yearly dividend of 60% (Rs.6 per share), the total payout comes to 90% for the first nine months of the FY03. This will result in a cash payout of Rs. 1.54 billion as dividend.

The Board observed that the January-March 2003 period witnessed continued global upheavals owing to the changed geo-political scenario specifically in the Middle East resulting in consumption drop. The company had to maintain high inventory level due to regional political environment which also resulted in higher financial charges. However, despite all these adverse factors and the overall industry decline of 7.2%, coupled with stiff competition from the existing as well as new entrants, PSO further consolidated its position specifically in white oil products and increased its market share of Mogas (42%), Diesel (60%), Jet A-1 (69%), and Kerosene (72%) on year-to-date basis. Even in Fuel Oil, despite fierce competition owing to free market conditions with the induction of new players as well as traders and importers, the company showed increase in its participation, which stood at 77.6%.

The BoM also observed that not only remarkable increase in profits but also the consolidation process of the company in terms of market shares were primarily due to well-comprehended initiatives taken by the management leading the company in the right direction. The Board appreciated the launch of novel and futuristic products like Fleet and Corporate cards, introduction of self-lock seals for tank-lorries, along with inauguration of state-of-the art Into-plane & Fuel Farm Facilities at new Allama Iqbal Terminal at Lahore.

The Board appreciated the commendable performance of the company and expressed that with the successful implementation of ambitious projects and strategic initiatives of the management, PSO would set newer landmarks, which can be emulated by all its contemporaries.


The 5th Annual General Meeting of Pakistan PTA Limited was held on 23 Apr 2003 at Karachi. Photo shows Chairman Pakistan PTA Limited Mr Azhar A Malik, (centre) responding to a shareholder's question. He is flanked on the left by the Chief Executive, Pakistan PTA Limited Mr Jonathon R Stoney and alternate Directors M/s M Afzal Jamil and Asif Jooma and on the right side by the Company Secretary & Vice President Finance, Aamer M Malik, Directors M/s Rafiq Akhund and F W Vellani.

Pakistan PTA Limited held its Annual General Meeting on Wednesday 23 April in Karachi. The Company reported improved results for 2002 compared to 2001, albeit the improvement took the form of a smaller loss than the year before. Pakistan PTA Limited manufactures Pure Terephthalic Acid (PTA), used in making polyester fibre, at a large plant at Port Qasim. The business started out in 1998, as a unit of ICI Pakistan Limited but it was demerged, becoming a separately quoted company in 2001. 25% of the shares of Pakistan PTA are held by ICI Pakistan, and another 69% by ICI Plc (through ICI Omicron BV). The plant has a design capacity of 400,000 tonnes per year, and actual output in 2002 was 403,795 tonnes, while sales were higher at 430,856 tonnes allowing stocks to be considerably reduced. Net sples value in 2002 was Rs 14.1 bn, 12 % up on 2001. PTA is made from the oil-derived petrochemical Paraxylene, which has to be imported. Most of the PTA is sold in Pakistan, where consumption is rising following expansions by the major polyester fibre makers. The company recorded an operating loss of Rs 194 million, a considerable improvement on the loss of Rs. 1,788 million in the previous year. Financial charges were much lower, due to lower interest rates, and a rights issue for US $ 100 million of equity, which was used to pay down debt. As a result the improvement in loss after tax was even more marked at Rs. 2,538 million for 2002 against Rs. 4,598 million for 2001. According to a forecast issued in June 2002 at the time of the rights issue, the Company expects to become profitable in 2005.

Pakistan PTA announced its results for the 15t Quarter 2003 on 24th April. The company said that the Asian PTA market had been buoyant during the quarter on the back of strengthening upstream markets. The Paraxylene price had increased, and PTA prices had risen also, so that the margin for PTA over Paraxylene was 69% higher than in the first quarter of 2002. Production and sales volumes were also well above 2001, showing gains of 19% and 24%. The Company thus achieved a quarterly operating profit of Rs 399 million compared to a loss of Rs 653 million in 15t Quarter 2002. Financial charges were much lower following the 2002 Rights Issue and lower interest rates on debt, so that the loss after tax was only Rs 58 million against the loss of Rs 1,354 million the year before.



Although pleased with the published results, the Chief Executive expressed caution looking forward. "The first quarter was rather exceptional." he said. "PTA producers benefited from strong buying demand as oil and derivative prices surged in the period before the Iraq conflict began. Now oil prices have come down again and PTA and Paraxylene prices have yet to reach a new equilibrium. Inside the company we focus on achieving higher outputs, greater efficiencies and cost control to ensure that we stay competitive internationally."