Category: Business

The Large Scale Manufacturing Industries (LSMI) output has decline by 9.87 percent during July-May 2022-23 when compared with the same period of last year, says Pakistan Bureau of Statistics (PBS).

According to the provisional Quantum Index numbers of the Large Scale Manufacturing Industries (QIM), the LSMI output decreased by 14.37 percent for May, 2023 when compared with May, 2022 and increased by 5.88 percent when compared with April 2023.

The LSMI Quantum Index Number (QIM) was estimated for May, 2023 is 110.60. QIM estimated for July-May, 2022-23 is 115.

The provisional quantum indices of LSMI for May 2023 with base year 2015-16 have been developed on the basis of the latest data supplied by the source agencies i.e. the OCAC, Ministry of Industries and Production, Ministry of Commerce and Provincial Bureaus of Statistics (BoS).

The main contributors towards overall growth of -9.87 percent are, food (-1.30), tobacco (-0.63), textile (-3.66) garments (2.58), petroleum products (-0.81), chemicals (-0.54), cement (-0.76), pharmaceuticals (-1.59), iron & steel products (-0.22), electrical equipment (-0.49) and automobiles (-2.08).

The production in July-May 2022-23 as compared to July-May 2021-22 has increased in wearing apparel, furniture and other manufacturing (football) while it decreased in food, tobacco, textile, coke & petroleum products, pharmaceuticals, chemicals, non-metallic mineral products, machinery and equipment, automobiles and other transport equipment.

The sectors showing growth during July-May include wearing apparel (25.56 percent), leather products (1.92), furniture (32.58 percent) and other manufacturing (football) (31.33 percent).

The sectors showing decline during the July-May include food (7.54 percent), beverages (4.13 percent), tobacco (27.08 percent), textile (18.58 percent), wood products (62.05 percent), paper and board (6.92 percent), coke and petroleum products (12.33 percent), chemicals (7.20 percent), chemicals products (4.23 percent increased), fertilizers (9.24 percent), pharmaceuticals (26.15 percent), rubber products (8.37 percent), non-metallic mineral products (10.77 percent), iron and steel products (4.76 percent), fabricated metal (15.63 percent), computer, electronics and optical products (29.14 percent), electrical equipment (14.24 percent), machinery and equipment (45.78 percent), automobiles (47.70 percent), other transport equipment (39.62 percent).

Source: Pro Pakistani

A meeting of the Public Accounts Committee (PAC) was held under the chairmanship of Member of National Assembly (MNA) Noor Alam Khan in Islamabad on Tuesday, where members discarded the issue of $3 billion in interest-free loans given to 628 people under the Temporary Economic Refinance Facility (TERF) during the previous government’s tenure.

The committee met behind closed doors after the central bank governor’s recent pleas for privacy. At the meeting, the governor of the State Bank of Pakistan (SBP) briefed members on the details of the $3 billion loan scheme.

After being briefed on the subject, several PAC members voiced their resentment against Chairman Noor Alam Khan’s suggestion to forward the case to the Federal Investigation Agency (FIA) and the National Accountability Bureau (NAB) for further inquiry.

Members opined that it would harm the industrial sector. Without going into further arguments on the issue, the committee decided to relinquish the case.

Source: Pro Pakistani

Mobilink Bank exhibited an impressive growth trajectory in its financial performance during the first half of 2023, reflecting its unwavering dedication to excellence, as per the unaudited/unreviewed financial statements.

With a 57% increase in total revenue, the Bank showcased its proficiency in both attracting and retaining customers, effectively adapting to the ever-evolving financial landscape.

The Bank’s Profit Before Tax (PBT) experienced a 232% growth in H1 2023 compared to the corresponding period in 2022. The H1 2023 results further solidify Mobilink Bank’s position as a leading digital microfinance institution.

Mobilink Bank is part of the VEON group, a global digital operator that provides converged connectivity and online services across seven countries.

As part of its digital operator strategy, VEON is transforming people’s lives, creating opportunities for greater digital inclusion, and driving economic growth across countries that are home to more than 8% of the world’s population.

Despite uncertainties arising from high inflation, Mobilink Bank experienced impressive growth across all verticals. In H1 2023, the Bank achieved a 37% increase in the average ticket size, reaching PKR 299K, as compared to the same period last year.

This growth translated into a substantial 57% increase in total revenue, amounting to PKR 17.3 billion. The core banking revenue saw a significant boost of 48%, reaching PKR 8.8 billion, while branchless banking revenue increased by 66% to PKR 8.5 billion during the same period.

Mobilink Bank has also showcased its exceptional prowess in financial management during H1 2023, delivering outstanding performance.

With a 22.35% Return on Equity (ROE) and 1.6% Return on Assets (ROA), the Bank has demonstrated its expertise and strategic approach. These returns affirm the Bank’s ability to generate profits.

Commending the Bank’s performance, Ghazanfar Azzam, President and CEO Mobilink Bank said: “The synergy within Mobilink Bank’s team has been the driving force behind its success, helping us promote our goal of promoting financial inclusion for all.

We are deeply grateful for the trust and support we receive from our customers, which fuels our motivation to continuously improve and excel. As we celebrate these achievements, we look forward to embracing new challenges and leveraging our strong teamwork to reach even greater heights in the future.”

Taimoor Farid, Acting Chief Finance Officer Mobilink Bank said: “The Bank’s strong financial results validate our focus on agile business models and customer-centric offerings, driving strategic value creation.

We have always embraced innovative solutions to navigate the industry’s challenges and will continue doing so to empower all, digitally and financially.”

Mobilink Bank is committed to expanding its reach and offering inclusive financial solutions to a diverse customer base.

By addressing the financial needs of unbanked and underbanked individuals through tailored products and services, the Bank empowers and uplifts communities while bridging the gender and financial gap across the nation.

Source: Pro Pakistani

The executive board of the International Monetary Fund is set to meet in Washington to approve a new bailout programme for Pakistan. The cash-strapped South Asian country is desperately waiting for the IMF deal to avoid an immediate default. Kamran Yousaf has more.

Source: TRTworld.com

The rising car, bike, and fuel prices have opened the door for electric two-wheelers in Pakistan.

Recently, a Lahore-based Pakistani startup known as Evee launched the C1 electric scooter. Soon after that, Super Star teased an electric scooter of its own.

Following that trend, another bike maker, Metro, has launched a new electric scooter. Dubbed ‘E8S Pro’, the scooter is the product of a Chinese two-wheeler manufacturer Yadea. In Pakistan, it will be the product of Metro E-Vehicles, a subsidiary of Metro Motorcycles.

According to a recent review from BikeMate.PK, E8S Pro is commonly referred to in China as the ‘Mountain Climber’ because of its performance. The scooter has a 2000-watt TTFAR brushless DC motor with a power generator dynamo, coupled with 72V38Ah graphene batteries.

The claimed range of this bike is 120 kilometers per charge, which is the best in its class in Pakistan. The powertrain allows for a top speed of 60-70 km/h. Other features include:

Tri-Lense Headlight

Aluminum Wheels

Front and Rear Disc Brake

Tubeless Tyres

32L Storage Space

Anti-theft Alarm

Remote Control

Keyless Go

Smart Instrument Cluster Screen

Multiple Drive Modes (Economy, Power, Turbo)

With these features and performance, the closest competitor to Metro E8S Pro is the Evee C1 Pro. While E8S Pro is at a considerable advantage over its competitor in performance and features, its price tag may let it down.

The E8S Pro costs a relatively steep Rs. 360,000, which is Rs. 145,000 more than the C1 Pro, which costs Rs. 215,000 and has a range of 90 km/charge. Still, it is a fine addition to the electric two-wheeler market in Pakistan.

Source: Pro Pakistani

Cotton growers have urged the government to activate the Trading Corporation of Pakistan to buy cotton at the minimum support price (MSP) amid prices falling up to Rs. 2,000 below the support price of Rs. 8,500 in Punjab and Sindh.

The Federal Government announced the MSP of Rs. 8,500 per 40kg in March for raw cotton (phutti) after being advised by the Textile industry that floods washed off the majority of the last year’s crops and inflicted heavy losses to the farming community and the industry.

The announcement along with Rs. 1,000 per acre subsidy on cotton seeds was aimed to incentivize cotton cultivation which resulted in increasing cotton crop area to 6.9 million acres from 6 million acres in the last season, but cotton prices are falling for the last three weeks and government threats to ginning industry of action have remained futile.

The ginning industry on the other hand blames the hefty 17 per tax on Binola (Dried Cotton Seeds) and notices sent to hundreds of ginning mills that the industry claims even exceed the market value of factories themselves.

Some in the trading community also claim that it is because cotton production is high this year. But last the growers are looking toward the government to either ensure the prices or buy the cotton itself so the farming community can avoid as they are always on the losing end of every market trend.

Source: Pro Pakistani

The federal government has halted financing under the Renewable Energy Refinancing Scheme which was introduced to address the challenges of energy shortages and climate change in the country.

Sources told ProPakistani that banks have not been transferring the funds under the Renewable Energy Refinancing Scheme.

The funds for the Scheme for 2022-2023 haven’t been received yet, therefore financing is halted, a bank communicated to its customer.

There were three categories under this Renewable Energy Refinancing Scheme.

Financing is available for prospective sponsors, desirous of setting up renewable energy power projects with a capacity ranging from more than 1 MW and up to 50 MW for their own use, selling electricity to the national grid (including distribution companies) or combination of both maximum tenor of financing is 12 years including maximum grace period of 2 years.

Under Category 1, Financing for a single borrower is upto Rs 6 billion is also available.

Under Category II, Financing is available for prospective sponsors, desirous of installing renewable energy source-based projects/ solutions for the generation of electricity up to 1 MW for their own use and/or selling of electricity to the distribution company under NEPRA’s Net Metering Regulations Maximum tenor of financing is 10 years including a maximum grace period of 3 months.

Whereas Financing for a single borrower is upto Rs 400 million, as per the policy.

Meanwhile, under Category III, Financing is available to Renewable Energy Investment Entities (RE-IEs) which are established to invest in renewable energy generation through the installation of renewable energy projects/solutions of upto 5MWs, for selling electricity or leasing/ renting out/ selling on deferred payment renewable energy equipment to ultimate owners/ users.

The Cumulative financing limit of a RE-IE is Rs 2 billion and the maximum tenor of financing to a RE-IE is 10 years including a grace period of upto 6 months.

It is pertinent to note that SBP had enhanced the cumulative financing limit from Rs. 1 billion to Rs. 2 billion under this Renewable Energy Refinancing Scheme.

The SBP Financing Scheme for Renewable Energy was announced in June 2016 with an aim to help address energy shortages and climate change in the country.

The scheme was initially divided into two categories, with the first category allowing financing for renewable energy power projects with capacity ranging from 1-50MW for own use or selling to the national grid or a combination of both.

The second category allowed financing to domestic, agriculture, commercial, and industrial borrowers for the installation of renewable energy-based projects of up to 1MW to generate electricity for own use or selling to the grid or distribution company under net metering.

Later, in July 2019, the SBP introduced category III to facilitate financing to vendors and suppliers for the installation of wind and solar systems of up to 1MW. The SBP also launched a Shariah-compliant version of the scheme in August 2019.

Source: Pro Pakistani

Remittances in June 2023 registered a decrease of 21.4 percent on a year-on-year (YoY) basis and dropped to the $2.2 billion mark compared to $2.8 billion in June 2022, according to data issued by the State Bank of Pakistan (SBP).

Meanwhile, cumulative remittances sent by overseas Pakistanis for the 12 months that ended on June 30, 2023, have dropped to $27 billion, down by 14 percent in the financial year 2022-23, as compared to the all-time high inflows of $31 billion reported in the previous financial year.

Remittances received by the country from overseas Pakistanis were up 3.85 percent on a month-on-month basis from $2.102 billion in May to $2.18 billion in June 2023.

Remittance inflows during June 2023 were primarily sourced from Saudi Arabia ($515 million), the United Kingdom ($343 million), the United Arab Emirates ($325 million), and the United States ($272 million).

Proceeds from expats residing in the European Union countries increased by 11 percent on a MoM basis in June 2023, coming in at $272 million. Similarly, remittances from other GCC Countries (Bahrain, Kuwait, Qatar, and Oman) stood at $271.9 million.

The decreasing inflows reported for FY23 were due to various austerity measures taken by the coalition government and the banking regulator, including high taxes on cash in banks, and exchange companies for higher collections of remittances.

Import restrictions together with poor domestic economic conditions during FY23 marginalized remittance inflows, which compressed demand and diverted most ex-pat inflows to informal currency exchange channels.

Essentially, policy-induced contraction in imports coupled with demand compression, exchange rate depreciation, and people’s preference for undocumented channels for better profits curbed remittance inflows during FY23 and failed to adequately facilitate expatriate Pakistanis living in different countries.

Source: Pro Pakistani