Month: December 2018

Lahore, December 17, 2018 (PPI-OT): As the State Bank of Pakistan governor has indicated further devaluation of Pakistani currency against the greenback, the All Pakistan Business Forum has urged the government to control surge of dollar against rupee, because huge depreciation of Rupee continue to damage national economy.

The APBF president Syed Maaz Mahmood observed that cost of deals done by the businessmen with their foreign counterparts has increased manifold due to massive fall of rupee against dollar. Though the exports of the country are recorded at $24 billion against the huge imports of $60 billion with a deficit of $36 billion but government needs to take administrative measures, as cash dollars are being flown out of three major airports in Pakistan.

He also appreciated the positive development, related to the imports, which have now started decreasing in this financial year followed by the government’s initiative of imposing regulatory duties. The imports in the early months of the financial year 2017-18 were increased by 24 percent. APBF President said that the widening current account deficit, excessive government borrowing, absence of foreign flows and lack of foreign investment are the vital reasons for constant depreciation of Pak rupee.

Terming rupee depreciation against dollar a mysterious development, the leader of business community said that continued fall of rupee is not understandable with a fact that there was no fundamental change in country’s imports during last three months while other economic indicators are also same for a long time.

He said that there was no fundamental change in imports for the last couple of months, which could become a reason for rupee depreciating. He was of the view that State Bank of Pakistan and Ministry of Finance should keep eye on it and trace out the group involved it. Syed Maaz Mahmood pointed out that the State Bank and the government need to intervene and come up with policy reforms to control depreciation of rupee which is becoming more and more valueless.

He said that it was unfortunate that Islamabad had announced to start its financial transaction with several countries under currency swap agreement in March 2013 aiming at controlling its import bill and balance of payment, but no implementation is seen so far.

Mr. Maaz observed that causes of depreciation of a currency are multiple which in combination push and pull the respective currency’s quotation in conjunction with other currency. If there is more demand for dollars in Pakistan than the supply, rupee would depreciate. So, the government should take steps to commence trade with other countries in local currencies with special emphasis on greater foreign investment in Pakistan’s lagging value-addition economic activities for making meaningful improvement in bilateral trade balance.

For more information, contact:
Manager Admin,
All Pakistan Business Forum (APBF)
Suite # 908, 9th Floor, EDEN Heights,
6-Main Gulberg, Jail Road, Lahore, Pakistan
Tel: +92-42-35786767, +92-42-35088717
Cell: +92-321-4000479
E-mail: info@apbf.com.pk
Website: www.apbf.com.pk

Karachi, December 17, 2018 (PPI-OT): Sindh Governor Imran Ismail said that Pakistan is read to open Khokharapar border but this time India should take initiatives. Since independence Pakistan has survived without any help from India and there will no any assistance required in future, he said and added: “We need talks on equality levels.”

He was addressing on the second day of 14th Build Asia Exhibition on Sunday. Imran Ismail said that the exhibition was contribution for the growth of construction industry. He said that the government would fully support the organizers of the exhibition. The governor said that the federal government had taken serious notice of gas supply suspension to industries. He said that the government believed to resolves issues through talks.

Imran Ismail said that the federal government assured no government department would create hurdles for industries in future. He said that the government had finalized arrangements to supply gas to industries and CNG sector on priority basis. Talking on Kashmir issue, he said that the peace in the region would only be possible through resolution of Kashmir issue.

The Sindh Governor said that the provincial government was reluctant to cooperate with him. He said that the provincial government was not responding. He said that impediments were being created to discourage federal government in completing development projects.

Commander Karachi Rear Admiral Asif Khaliq performed ribbon cutting on the second day of the exhibition. He said that new horizons were opening for Pakistan. He said that foreigners were visiting Pakistan realizing the potential of the country. He said that the exhibition would prove as a platform for foreign investment.

On the second day of Build Asia Exhibition a large number of foreign delegates and business leaders visited the various stalls. Khursheed Nizam, President, E-Commerce Gateway Pakistan said that many agreements were signed with foreign companies. He also said that foreign and local businessmen showing interests in various items displayed at the exhibition.

For more information, contact:
Head Office,
Ecommerce Gateway Pakistan (Pvt.) Limited
8, Kokan Society, Dr. Azhar Hussain Road,
Near Kokan Park, Off: Shaheed-e-Millat Road,
Karachi – 74000, Pakistan
Tel: +92-21-34536321, 38709970
UAN: +92-21-111-222-444
Fax: +92-21-34536330, 34860830
E-mail: info@ecgateway.net
Website: http://www.ecgateway.net

Karachi, December 17, 2018 (PPI-OT): Mayor Karachi Wasim Akhtar on Saturday inaugurated three-day 14th Build Asia Exhibition organized by E-Commerce Gateway Pakistan. The mayor said that the local government is complying with the orders of the Supreme Court of Pakistan for removing encroachment in the city. At the inaugural ceremony, Wasim Akhtar said that the government wanted to give healthy environment to Karachiites besides creating felling of safe city. He said that the anti-encroachment drive is aimed to clean the city for attracting tourists from across the globe.

The mayor said that the world was giving importance to Karachi city owing to ongoing many mega projects. He said China was playing key role in development projects. The mayor informed that Karachi Metropolitan Corporation (KMC) had signed many development projects with Shenyang City of China. Besides many China has also signed many other projects at federal and provincial levels. He said that delegates from China, Turkey and Iran had participated in the exhibition. “The federal government should activate Pakistani consulates world-wide for attracting exhibitors,” he added.

On the occasion Vice Admiral (retd) Arifullah Hussaini said that the purpose of the exhibition was to introduce advanced technology for construction industry. He said that China was far ahead in developing projects as 54-story buildings completed in just 19 days. On the other hand, a small project in Pakistan takes over a year time.

He said that if we committed to our work Pakistan could develop in the same pace. “We have good people but we need to ignore negativity,” he added. Dr. Khursheed Nizam, President, E-Commerce Gateway Pakistan said that about 250 delegates from 20 countries were attending the Build Asia Exhibition.

He said that companies from USA, UK, Iran, Italy, China, Germany, Taiwan, Japan, Thailand, Turkey, Oman and UAE were attended to showcase building material and construction machinery. A seminar on China Pakistan Economic Corridor (CPEC) is being organized at the exhibition to highlights importance of the projects, he added.

The exhibition is showcasing construction machinery and material, steel, PVC, marble and furniture. The exhibition is aimed to reduce the cost of construction through use of advanced technology. Foreign dignitaries and representatives of Pakistan Stone Development Company, Constructor Association of Pakistan, All Pakistan Marble Industries Association are attending the exhibition. The organizers are expecting that over 50,000 people will visit the three-day Build Asia exhibition.

For more information, contact:
Head Office,
Ecommerce Gateway Pakistan (Pvt.) Limited
8, Kokan Society, Dr. Azhar Hussain Road,
Near Kokan Park, Off: Shaheed-e-Millat Road,
Karachi – 74000, Pakistan
Tel: +92-21-34536321, 38709970
UAN: +92-21-111-222-444
Fax: +92-21-34536330, 34860830
E-mail: info@ecgateway.net
Website: http://www.ecgateway.net

Karachi, December 17, 2018 (PPI-OT): JCR-VIS Credit Rating Company Limited (JCR-VIS) assigned initial entity ratings of ‘A-/A-2’ (Single A Minus/A-Two) to Al-Karam Towel Industries (Private) Limited (AKTI). The long term rating signifies good credit quality with adequate protection factors. Risk may vary slightly from time to time because of economic conditions. Short term rating of ‘A-2’ depicts good certainty of timely payment where liquidity factors are sound and good access to capital markets. Outlook on the assigned ratings is ‘Stable’.

Assigned ratings of AKTI take into account the company’s market position amongst top three players of the towel industry. Revenue base of the company has depicted growth at a CAGR of 20% over the past two years with majority of total sales revenue comprising direct exports. Growth in revenue base was largely a function of both higher volumes sold and increase in average yarn prices. Business risk is considered to be on the higher side given the greater concentration (client and geographic) in sales. Ratings also incorporate sound financial risk profile as manifested in the historically improving profitability profile. Similar to other private limited companies, governance and policy framework of the company depict significant room for improvement.

Higher profitability has resulted in healthier cash flow generation; nonetheless, higher utilization of borrowings reduced debt servicing coverage and Funds from Operations (FFO) in relation to long-term debt multiples of AKTI. In view of higher yarn prices incurred in the previous years, the company plans to reduce the dependence of procuring yarn from local market through this project. As a result, management has planned to integrate a spinning unit along with AKTI’s weaving facility. Once the project starts functioning, management anticipates increasing its FFO levels to reach the Rs. 1b mark resulting in improved liquidity indicators. Rating will remain dependent upon materialization and smooth integration of the spinning unit within targeted performance and financial indicators.

While total debt levels of the company increased to fund its operations, leverage indicators remained range bound within manageable levels. With a higher quantum of short term financing availed during the years; gearing increased on a timeline basis. However, both gearing and leverage indicators remained comfortable below 1.0x criterion. Moreover, with higher utilization in long term borrowings, the company projects to completely taper off its utilization of short term borrowings.

For more information, contact:
CFA
JCR-VIS Credit Rating Company Limited
VIS House, 128/C,
25th Lane off Khayaban-e-Ittehad,
Phase VII, DHA, Karachi
Tel: +92-21-35311861-72
Fax: +92-21-35311873
Email: sobia@jcrvis.com.pk