manufacture along and within Chinese territory and
selling the same in world market under their brand name.
Chinese long march towards global market has
resulted a rapid change in Chinese companies shares. The Chinese
products have reached from South East Asia to United States of
America. These countries are left with no option but to bring
reduction in their price market, whereas Malaysia, Taiwan, Korea and
India has lost the demand of their products in global market. Chinese
investors are very fluently establishing their trade offices in South
East Asian countries and elsewhere .
Once against the golden principles of marketing has
established its myth through the precedence of Chinese marketing
pattern introduced on revolutionary basis. The affordable cost of
goods varying from society to society, the durability of goods being
of super quality and different kinds of goods according to the taste
of different people are the key reasons as to why global market turned
favourable to Chinese pattern.
What to produce, how to produce and for whom to
produce are the questions which is properly and vigilantly answered by
the Chinese economy. Chinese economy is enriched by raw material,
cheap labour and abundant infrastructure. These are the resources
which have been properly placed and utilized. Who is incharge of a
market economy? Do giant companies or something else. If we examine
the structure of a market economy carefully, we see a dual monarchy
shared by consumers and technology. Other than consumers, the
available resources and technology place a fundamental constraint on
Many industries, in our country, are facing
negative impact of the present Chinese trend. The major problem is to
save our industries from greater and total distruction. What I feel we
should patronize our products, Should curtail produces the margin of
profit, abundant production and a change in quality of products should
be praticed. These, and several other measures have to be taken to
save our industries. The consumers should also realize their
importance towards security of national economy and the rate of taxes
should be brought to a normal level. May God same our economy.
Dr. Nurul Islam
ORIX Leasing Pakistan Limited and Travel Walji's (Pvt)
Limited (AVIS), have signed a Management and Service Agreement at a
simple ceremony held at a local hotel. ORIX Rentec, the Operating
Lease Division of ORIX Leasing Pakistan Limited, has appointed Travel
Walji's as the Asset Manager for their Vehicles Rental Segment. Under
the agreement, AVIS & ORIX will jointly market and promote vehicle
rental business in the country.
ORIX Rentec provides various equipment on
short-term and long-term rentals, and is currently expanding its
services in the vehicle segment. Travel Walji's (Pvt) Ltd. is licensee
of AVIS (U.K), engaged in the business of Rent-A-Car to multinationals
& local organizations.
The Agreement was signed by Mr. Kashif Yaqoob
Head of Rentec Division, on behalf of ORIX Leasing Pakistan Limited
and Mr. Iqbal Walji President & C.E.O., Walji's Group on
behalf of Travel Walji's (Pvt) Limited.
MALAYSIA AIRLINES ANNOUNCES PROFIT OF RM101.1
MILLION FOR SECOND QUARTER
Malaysia Airlines returned a Group net profit of
RM101.1 million for the second quarter ended 30 September 2003, making
a crucial rebound from the severe impact of SARS in the first quarter
that caused the airline to incur a loss of RM 164.5 million. A steady
return of travel confidence provided the main push behind the
recovery. Operating revenue improved to RM 2,128.1 million from
RM1,642.6 million last quarter, an increase of 29.5% although this is
still lower than that achieved in the same period last year.
The quarter saw a steady rise in international
passenger load factor with notable improvement to 72.5%, as compared
to 54.7% in the preceding quarter, peaking at 75.3% in September.
The airline has restored its capacity production to
pre SARS level and is looking to resume its plans set for the year.
Recently the airline introduced two direct services from London
Heathrow to Penang and London Heathrow to Langkawi and in December
will add two new destinations in Indonesia Jogjakarta and Padang.
The SARS-postponed start up services to Guangzhou and Xiamen from Kota
Kinabalu and Kuching have resumed. The airline's network planning
remains focused on pushing for growth in the region.
Cargo operations which contributed strongly the
past two quarters remain positive. MASKargo has recently added a sixth
freighter to its fleet. This would enable the company to plan
additional capacity and service frequencies to its target markets.
Malaysia Airlines balance sheet remains
comfortable. Cash reserves rose from RM913 million in the last quarter
to RM1,336 million.
BEDLINEN IN EU
The Commerce Minister met with the Stakeholders regarding the
anti-dumping investigations against Pakistan's Bedlinen in EU with the
objective of formulating a strategy in the best national interest in
negotiating with EU in this regard. The Minister assured them that his
Ministry will do its best to amicably settle the issue with the EU and
request it to withdraw the anti-dumping proceedings as Pakistan
considers the chain investigation as unjustified and because proper
investigation of sample companies were also not carried out.
RECONSTITUTED NFC WILL PROMOTE DEMOCRACY: ICCI
Mr. Zubair Ahmed Malik, President of Islamabad
Chamber of Commerce and Industry (ICCI) has stated that the
reconstituted National Finance Commission (NFC) announced by the
President of Pakistan General Pervez Musharraf will strength the
democratic process and promote relations between the Federal and
He pointed out that population base has been the
main determinate to distribute the divisible pool of NFC among the
provinces. The ratio for the Federal and Provincial Governments was
changed under the 6th Award Committee's recommendations from 37.5:62.5
to 40:60, far below the demands of the provinces, who demanded 50 per
cent share in the divisible pool. Also the Federal Government decided
to provide special grants and GST payments to the provinces so that
the provincial share would increase to 44.6 per cent. GST transfer to
the provinces alone provides Rs.32-25 billion per annum. Some
Provincial officials have suggested that NFC Award should consider
four factors: Population, needs of district governments, backwardness
and share of each district in revenue generation. The reconstituted
NFC is expected to review the demands and priorities of all the
provinces as well as the whole issue of port/trade activity in Sindh
resulting in higher tax collection, royalties for cotton in Punjab,
hydel profits and gas availability in NWFP and Baluchistan.
CALL CENTER SUCCESS STORY
The management of Bank Alfalah has expressed great
satisfaction towards the performance of ZRG call center and with the
quality of post-sale support from the professional team of ZRG.
According to Ms. Zoha Imam, Executive In charge at Bank Alfalah,
"ZRG is a knowledgeable, cooperative and accommodative solution
provider. They have a team of experienced professionals that get
things resolved creatively and cost-effectively in the shortest
ZRG call center is a very flexible and highly
scalable setup that can be stretched, expanded an enhanced in a
variety of ways to support value-added services and customized
ZRG is a fast growing telecom solutions company
with a strong focus on customer interaction and contact management
solutions. Specializing in the convergence of information and
communication technologies, ZRG expertly integrates information stored
in databases and desktop applications with multiple channels of
communications such as telephone, fax, email, SMS and the Web. ZRG
offers a wide range of telecom solutions on a turnkey basis for
standards-based LAN environment, providing next generation call
handling solutions and capabilities in a very cost-effective and
highly scalable way.
ZRG enjoys an excellent reputation in the market
because of our solutions, services, dedication and commitment. We
guarantee 100% satisfaction and do not settle for less than that. ZRG
holds a leadership position and an excellent reputation in the call
center market in Pakistan with solutions installed at the largest and
the busiest call centers in the country. Following are some of our
most prestigious and satisfied call center customers:
Bank Al Habib, Faysal Bank, Bank Alfalah, Bank
Indosuez, Askari Bank Master Card, Standard Chartered Bank, Soneri
Bank, Metropolitan Bank, Pakistan State Oil, WorldCall Broadband, Pak
Tehcom (KTR), SSGC.
ARIF HABIB INVESTMENTS TO LAUNCH RS. 1.5 BILLION
PAKISTAN CAPITAL MARKET FUND (PCM)
Arif Habib Investments, having been authorised by
the SECP to launch the Pakistan Capital Market Fund (PCM), have
applied to the Karachi, Lahore and Islamabad stock exchanges for the
listing of PCM. At an initial size of Rs. 1.5 billion including an IPO
of Rs. 375 million, this will be the largest closed-end mutual fund
offering being brought to the Pakistan market. It also has the
distinction of the first fund being structured as a closed-end unit
trust scheme under the recently announced NBFC Rules thus
providing the investors with the added protection of a trustee. The
Central Depository Company Limited (CDC), trustee of several other
funds, is the Trustee of PCM.
Out of the total Rs.1.5 billion of the Fund, Rs.
975 million has already been committed for being subscribed under pre-IPO
arrangements by prominent financial institutions and other investors.
Arif Habib Investments itself is taking up Rs. 150 million leaving
only Rs. 375 for offer to the general public through an IPO. This is
the minimum amount that must be offered to the public as their first
right of refusal under the listing regulations of the stock exchanges.
The issue has been fully underwritten, again by a list of prominent
The issue is likely to be offered for public
subscription during the first half of December 2003 subject to
obtaining all the necessary regulatory approvals.
Arif Habib Investments is already managing about
Rs.5.5 billion in mutual funds. With the launch of PCM, its funds
under management will go up to about Rs. 7 billion. PCM is the second
closed-end fund to be managed by Arif Habib Investments. The Company
already manages the Pakistan Premier Fund, the management rights of
which it acquired late last year. Besides the two closed-end funds,
Arif Habib Investments also manage three open-end funds the Pakistan
Stock Market Fund (PSM), Pakistan Income Fund (PIF) and MetroBank-Pakistan
Sovereign Fund (MSF), a strategic alliance with Metropolitan Bank Ltd.
The first full year of performance for the funds
being managed by Arif Habib Investments have been rewarding for their
investors, with the Pakistan Stock Market Fund (PSM) giving a total
return of 81.82% for the financial year 2002-03 and a bonus
distribution of 40%; the Pakistan Income Fund (PIF) having delivered a
total return of 12.4% and a bonus distribution of 12%; while the
Pakistan Premier Fund (PPF) declared a rights issue of 50% during that
financial year 2002-03, a bonus of 12.5% applicable to the rights
shares as well and that followed by an interim cash dividend of 12.5%
for the current financial year.
PCM is a broad-based capital market fund with Arif
Habib Investments managing the allocation between equity, debt and the
money-market based on their assessment of the market conditions.
Investment decisions of PCM would be made by a committee comprising of
specialists in relevant asset classes. The objective of the Fund is to
deliver the maximum return out of Pakistan's capital market, while
diversifying and managing risk to an acceptable level. The Fund would
offer a great opportunity for investors who are looking for a
professionally managed asset allocation.
The pre-IPO investors include Bank Al Falah,
Metropolitan Bank, National Bank of Pakistan, PICIC Commercial Bank,
Soneri Bank, Suleiman Ahmed Al-Hoqani (UAE), Bank Al-Habib, The Bank
of Khyber, Atlas Investment Bank, Dawood Leasing, Noman Abid &
Co., Pak Kuwait Investment Company, Pakistan Industrial Credit and
Investment Corporation, Prime Commercial Bank, Saudi Pak Commercial
Bank, Escorts Investment Bank, Javed Omer Vohra & Co., Security
Leasing Corporation, Westbury (Pvt) Limited, Pak Oman Investment
Company, First Standard Bank, First Women Bank, PERAC Pension Fund,
Saudi Pak Leasing, Shirazi Investments, Crescent Leasing Corporation,
EFU General Insurance, EFU Life Assurance, Orix Investment Bank, Pak
Venture Capital, Saudi Pak Industrial & Agricultural Investment
Company, Yousuf Yaqoob Kolia, Guardian Leasing Modaraba, Motiwala
Securities and Arif Habib Securities.
The underwriters for the fund are, Siddiqsons
Denim, Ibrahim Agencies, Mian Mohammad Abdullah (Sapphire Group),
Dewan Salman Fibre, Metro Securities, Abdul Razak Tabba (Younus
Brothers Group), Bank Al-Habib, National Investment Trust Limited,
Ferozuddin A. Cassim, Suleiman Ahmed Al-Hoqani (UAE), AKD Securities,
Javed Omer Vohra & Co., Muhammad Bashir Jan Mohammad and Haji
Ghani Haji Usman.
The applications for the initial public offer will
be entertained by designated branches of the bankers to the issue. The
list includes Allied Bank, Bank Al Falah, Bank Al-Habib, Bank of
Khyber, Faysal Bank, First Women Bank, Habib Bank, Metropolitan Bank,
Muslim Commercial Bank, National Bank of Pakistan, PICIC Commercial
Bank, Saudi Pak Commercial Bank, Soneri Bank, The Bank of Punjab, and
DILBAND IRON ORE
Bolan Mining Enterprises (BME), a 50:50 joint
venture between the Government of Balochistan and Pakistan Petroleum
Limited (PPL) signed a contract on 14 November 2003 with DMT - Montan
Consulting GmbH, Germany for carrying out a Feasibility Study for
enrichment (beneficiation) of Dilband Iron Ore. The contract was
signed on behalf of BME by Mr. Shamim Akhtar, Resident Manager, on
behalf of PPL (BME's Operator) by Mr. S. Munsif Raza, Managing
Director, and on behalf of DMT by Mr. Michael Loos, at PPL's Head
Enrichment (beneficiation) of iron ore being a
complex process will require the study to be carried out in several
phases including the pilot plant scale leading to preparation of the
feasibility report and detailed engineering for installation of
Beneficiation Plant at Dilband to upgrade the total iron (TFe) content
from 40% to 60% plus.
Dilband iron ore deposit is located at about 190 km
south east of Quetta in District Mastung, Balochistan. Geological
studies have indicated iron ore reserves of about 167 million tonnes.
An Agreement has been signed between Pakistan Steel (PS) and BME for
supply of 100,000 tonnes of fine iron ore to PS from Dilband in one
year commencing from December 2003, for which a pilot ore crushing
plant has started functioning at Dilband.
The project will not only boost the mineral sector
in the province but will go a long way towards the socio-economic
development of the area. Substantial amount of foreign exchange will
also be saved.