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Category: Corporate

  • SECP company registration tops 182,598 by November 2022

    SECP company registration tops 182,598 by November 2022

    ISLAMABAD: The total number of registered companies with Securities and Exchange Commission of Pakistan (SECP) increased to 182,598 by end of November 2022, a statement said on Monday.

    The SECP registered 2,380 new companies in November, 2022, indicating an increase of 10 per cent as compared to corresponding period last year.

    Total capitalization (paid-up-capital) of the newly incorporated companies is PKR1.9 billion.

    READ MORE: Floor tile production halts on LC restrictions, gas shortage

    Among the newly incorporated companies, about 59 percent were registered as private limited companies, 39 percent as single member companies and 2 percent were public unlisted companies, not for profit associations, trade organizations and limited liability partnership (LLP).

    About 99.9 percent of companies were registered online. In November, the SECP also registered three investment companies / micro finance companies with paid-up capital of Rs.255 million.

    READ MORE: PVC market growing with wide array of downstream applications

    In November, the real estate development & construction sector took the lead with incorporation of  407  companies followed by the information technology with 347 and trading with 300 companies subsequently, services with 258, food & beverages with 87, education with 82, tourism with 81, corporate agricultural farming with 76, ecommerce with 70, marketing & advertisement with 63, engineering with 62, textile with  57, pharmaceutical with 50, healthcare with 43, mining & quarrying with 38, chemical with 37, fuel & energy with 35, transport with 31, power generation with 30, communications with 27, cosmetics and toiletries and lodging with 18 each, broadcasting & telecasting with 14, auto & allied and paper & board with 13 each, cables and electrical goods with 12,  arts and culture with 9, and 102 companies in other sectors.

    READ MORE: ABHI, Chase Up join hands to extend earned wage access

    Foreign investment has been reported in 85 new companies from Afghanistan, Austria, Australia, Canada, China, Germany, Hongkong, Jordan, Korea South, Mauritius, Nigeria, Norway, Oman, Singapore, South Africa, Spain, Tunisia, Turkey, UAE, UK and the US.

    As a result of SECP’s eServices integration with FBR and various provincial departments, 2,211 companies were registered with FBR for generation of NTN, 57 companies with EOBI, 32 companies with PESSI/SESSI and 43 companies with excise and taxation department.

    READ MORE: Daraz highlights problem of cross-border payments

  • Floor tile production halts on LC restrictions, gas shortage

    Floor tile production halts on LC restrictions, gas shortage

    KARACHI: A ceramic company has decided to shut down its floor tile production due to restrictions of Letter of Credit (LC) opening and prevailing gas shortage.

    In a communication received by Pakistan Stock Exchange (PSX), Frontier Ceramics Limited announced the shut down its floor tile production plant for an uncertain period due to gas supply shortage.

    The company further stated that the unforeseen devaluation of Pakistani Rupee (PKR) coupled with government’s restriction, including LC approval constraints and general economic instability were also the reason behind the decision.

    “The resumption of operation (as the case may be) will be communicated accordingly,” the company stated in the communication.

    It said the information is being conveyed in accordance with the requirements of Regulation of Pakistan Stock Exchange Limited (PSX) and the applicable provisions of the Securities Act, 2015.

    The company also requested the stock exchange that the information may be disseminated amongst the TRE Certificate Holders of the stock exchange as well.

  • PVC market growing with wide array of downstream applications

    PVC market growing with wide array of downstream applications

    KARACHI: With growing consumer awareness about new construction materials and sustainability, the PVC downstream market in Pakistan is expected to witness an upward trend in the coming years.

    A recent report by PACRA expects the local construction industry to record growth of 6 percent this year. Over the next seven years, the sector is expected to grow by a whopping 92 percent as Pakistan enters the rehabilitation phase in the aftermath of catastrophic floods and CPEC-related activities revive as well.

    As a result, the demand for PVC applications and other construction materials is also likely to gain traction.

    According to Muhammad Idrees, Chief Commercial Officer of Engro Polymer and Chemicals Limited (EPCL), “The PVC market in Pakistan has undergone a phase of growth and diversification in the last few years. To meet the market requirements, we have continued to scale our operations and completed Plant expansion to 295,000 tons annually.

    “Last year, we contributed USD 165 million in import substitution through local PVC & VCM production and generated USD 28 million in foreign exchange through exports.”

    He further mentioned that due to Pakistan’s inherit advantages and claose proximity to growing regional markets, there is huge export potential for PVC downstream products, which should be capitalized by local manufacturers.

    He added that to promote the use of high-quality PVC downstream products, especially in the construction sector of Pakistan, EPCL is undertaking various market development initiatives and has made significant investment with its partners to launch a branded outlet called thinkPVC.

    Elaborating on the concept of thinkPVC outlet, he said that EPCL wants to engage the construction industry and other associated stakeholders to highlight innovative construction materials, with a focus on sustainable materials such as PVC. Currently, around 55 percent market share of PVC application in Pakistan is held by pipes and fittings.

    The goal is to create wider awareness that PVC resin applications include the manufacturing of doors, windows, flooring, roofing, outdoor furniture, vanities, and other products.

    Idrees shared that with increasing population, there is a dire need to adopt modern and innovative construction materials for sustainable living. Compared to other materials, PVC is waterproof, termite and damage resistant, fire retardant, and a light-weight material, which offers high durability and requires minimal maintenance.

    PVC is more sustainable as it has 50 percent lower carbon footprint as compared to aluminum, a competing product. It also has a much longer life span and is recyclable. Consumers can save up to 28 percent in heating and cooling costs when using a double-glazed PVC window.

    He believes that the future of PVC downstream market in Pakistan remains promising as climate change tops the government agenda and more sustainable practices will be adopted by the construction industry.

    “All sectors in Pakistan are expected to adopt greener solutions in line with the government policy of preserving natural resources and forests. PVC is a viable alternative to wood products, and we expect to see greater market penetration of PVC downstream products as the construction sector embraces a Go Green approach”, Idrees stated.

  • ABHI, Chase Up join hands to extend earned wage access

    ABHI, Chase Up join hands to extend earned wage access

    KARACHI: ABHI and Chase Up join hands to extend ABHISalary (Earned Wage Access) to 2500 employees working at Chase Up.

    Chase Up takes pride in its hardworking employees and values the care they show to their customers.

    As a token of appreciation, they have partnered with ABHI to provide the benefit of Earned Wage Access and improve the financial well-being of their employees. The partnership will empower the workforce to access their earned but unpaid salaries before their payday to live their special moments and pay for unexpected expenses anytime, anywhere.

    On this occasion, Mohammad Zaidi, Director at ABHI said, “We are thrilled to partner with Chase Up, a well-known chain that interacts with thousands of people daily. With Earned Wage Access, we hope that the employees are able to make their financial decisions with ease.”

    Mustafa Bashir, Director at Chase Up, added, “Times have been difficult for all of us, as individuals, as families and as organizations. What matters now is how we, as employers, can bring financial relief to our staff. Getting Abhi onboard is an important step towards enhanced convenience for Chase Up staff.”

    ABHI is a financial wellness startup with well over 140,000 employees onboard and is on a mission to financially empower the entire salaried workforce across Pakistan.

    Chase Up was founded in 1984, Chase Up has grown from selling affordable clothes to delivering a complete shopping experience, supplying garments, groceries, utensils and more to hundreds of customers. It is one of the largest department stores in the country, operating in Karachi, Faisalabad, Multan and Gujranwala.

  • Daraz highlights problem of cross-border payments

    Daraz highlights problem of cross-border payments

    Daraz, a leading online marketplace operating in Pakistan, has brought to the forefront significant issues related to cross-border payments. During a high-level meeting with Finance Minister Ishaq Dar on Wednesday, Ehsan Saya, Managing Director of Daraz, along with a delegation, discussed these operational challenges in detail.

    (more…)
  • PNSC recommends tax incentives for shipping industry to grow

    PNSC recommends tax incentives for shipping industry to grow

    Pakistan National Shipping Corporation (PNSC) has emphasized the need to introduce tax incentives to help shipping industry to grow.

    In an analyst briefing a day earlier, the company emphasized the need to introduce tax incentive measures to flourish the shipping industry which will minimize outflow of valuable national foreign reserves.

    According to Insight Research, PNSC held its analyst briefing to comment on its financial result of fiscal year 2021/2022 and to shed some light on company’s future outlook. Major highlights of the session are given below:

    PNSC has posted topline of PKR28 billion in FY22, up by 117 per cent as compared to same period last year (SPLY). Whereas profit after tax (PAT) stood at PKR5.7 billion (EPS: PKR42.75) vs. PKR2.3 million (EPS: PKR17.14) in SPLY. Where in 1QFY23, company has posted PAT of PKR 5.3 billion (EPS: PKR40.80), up by 8.5x YoY.

    Gross margins of the company increased to 29 per cent in FY22 from 22 per cent in FY21 due to higher crude oil freight rates. Similarly, net margins increased to 20 per cent in FY22 from 18 per cent in SPLY.

    Company’s current deadweight tonnage capacity reached to 1.05 million tons which is highest ever in its inventory. To highlight, company has recently added 2 vessels (Aframax tankers) in August 2022 with a combined capacity of 0.21 million.

    Company’s current fleet strength comprise of 13 vessels, out of which 8 are oil tankers and 5 are bulk carriers.

    Company is considering different options i.e by selling in scrap or dry docking or using as a storage terminal to dispose their 3 old vessels.

    As per management, average life of the ship is 20 years based on cost effectiveness.  However, using a ship higher than this age will normally increase the maintenance cost for the company.

    Global oil freight charges are on the rising trend due to EU sanctions against Russian crude and refined oil product imports which will likely result in increased profitability for the company in coming quarter.

    Company is further planning to add Afra max tanker, IMO type-II tanker and Ultra max bulk carrier in their fleet and estimated cost for adding these vessels are $150 million on current levels.

    While commentating on company’s plan to diversify its operations, company is planning to enter new markets including Edible oil transportation which is currently being imported on CFR basis.

  • Shell Pakistan signs ABHI for voluntary carbon compensation offer

    Shell Pakistan signs ABHI for voluntary carbon compensation offer

    KARACHI: Shell Pakistan Limited has signed ABHI, Pakistan’s first financial wellness platform, as its first official customer for the launch of its new voluntary carbon compensation program, according to a statement issued on Thursday.

    This program provides an avenue for all ABHI employees who are using Shell Fuel Cards to offset hard-to-abate carbon emissions from their fuel consumption by using Shell’s global portfolio of carbon credits.

    ABHI will be compensating for unavoidable carbon emissions generated from their sales fleet across Karachi, Lahore & Islamabad.

    These credits are generated from carbon compensation projects, including both nature projects, such as conservation, afforestation, and so on, and projects from other methodologies, operating around the world.

    These projects help avoid or remove greenhouse gas emissions. The emission reductions are independently verified by internationally recognized standards, e.g. Verified Carbon Standard (VCS) and Climate, Community & Biodiversity Standards (CCB), and carbon credits are issued.

    Some of these projects further promote the safeguarding of wildlife and communities and support some of the United Nations Sustainable Development Goals.

    Speaking at the ceremony, Managing Director and General Manager Mobility for Shell Pakistan, Waqar Siddiqui, stated: “Shell’s approach to emissions reduction follows the ‘avoid-reduce-compensate’ mitigation hierarchy. We recommend this approach to our partners and customers across sectors to accelerate the transition to net zero emissions. The use of high-quality carbon credits is one of the viable ways to mitigate hard-to-abate emissions. We are pleased to support ABHI on their decarbonization journey.”

    Omair Ansari, CEO, and Co-Founder at ABHI commented: “Shell is leading global initiatives to reduce carbon emissions and ABHI is proud to be a part of it. ABHI being a fast-growing fintech understands environmental responsibility and always looks forward to supporting climate-friendly initiatives. While we empower people financially, we believe in enabling social change along the way.”

  • K-Electric sees positive outlook despite challenges

    K-Electric sees positive outlook despite challenges

    KARACHI: K-Electric, a power utility providing electricity to residential, commercial and industrial consumers of Karachi, is confident of positive outlook despite macroeconomic and geopolitical challenges.

    “Despite macroeconomic and geopolitical challenges, KE is confident in serving its customers in a reliable and efficient way through a comprehensive, multi-pronged strategy,” said KE’s Chief Financial Officer Muhammad Aamir Ghaziani at a Corporate Briefing Session held at the Pakistan Stock Exchange (PSX) on November 22, 2022.

    READ MORE: K-Electric posts huge losses despite 144% jump in tariff adjustment revenue

    Sustained investments in the value chain have driven continued improvement in KE’s core business. Since privatization, KE has been able to reduce its transmission and distribution losses from approximately 34% to 15% at the end of FY22.

    The utility’s transmission and distribution (T&D) losses have reduced by 2 percentage points at the end of the first quarter of FY23 compared to the same period last year, while generation efficiency has also improved by 0.6 percentage points during this time. Investment of around PKR 62.8 billion in FY22 and PKR 11.6 billion in first quarter of FY23 has been made across power value chain.

    READ MORE: Faysal Bank, K-Electric collaborate to ease customer’s payment

    KE is also preparing itself for the future. The panel shared plans to add up to 500 MW of efficient, clean energy in the short term to diversify the company’s fuel mix and lower the costs of electricity for the company and consumers alike. Simultaneously, construction works of Dhabeji and KKI grids are underway to allow KE to receive additional supply of up to 2050 MW from the National Grid.

    On the distribution front, the company intends to enhance its infrastructure and continue its efforts to reduce distribution losses by rolling out Aerial Bundled Cables (ABCs) on its network and implement new and reengineered processes for an improved customer experience. 

    Speaking at the event, Sadia Dada, Chief Marketing and Communication Officer, also proudly shared KE’s multi-award winning corporate social responsibility strategy, which is driving grassroots development of the communities it operates in.

    READ MORE: KE adjusts electricity bills under FCA relief package

    The company shared highlights of its efforts including the installation of water filtration plants, renovation of schools and public parks, and setting up of health camps which have collectively benefitted approximately 200,000 persons.

    KE’s flagship Roshni Baji Program also completed its 2nd cohort. Collectively 100 women have undergone training as KE’s neighborhood safety ambassadors as well as the country’s first certified female electricians. Collectively, these women have educated over 463,000 households on safe practices for electricity usage, building safer communities.

    READ MORE: NEPRA acknowledges KE’s operational performance

    Through different other partnerships, women are also being trained in financial literacy, self-defense, motorcycle operations, and CPR training. Continued awareness on safety through public service messaging has reached hundreds of thousands of people across Karachi’s high-risk areas as well.

    The briefing also shed light on external factors which affected KE’s financial performance including, demand disruption due to macro-economic factors, receivables from the Government of Pakistan and related entities, devaluation of the Pak rupee resulting in exchange loss, increases in effective rates of borrowing leading to higher finance cost and increases in consumer tariffs which affected customer’s propensity to pay bills resulting in increase in the provision against doubtful debts.

    The Company expects some in increase in growth due to shift of captive consumers to grid during the upcoming winter season and is also working diligently on conversion of captive consumers to grid in line with GoP’s policy as well as simplified New Connection process.

    Aligned with the mission of brightening lives by building the capacity to deliver uninterrupted, safe and affordable power to Karachiites, KE will continue to make investments across the value chain, enabling the company to improve operationally whilst progressing on the value creation curve through innovation and technological advancements. However, support from government and regulatory authorities remain critical for the execution of the planned investment

  • China Power serves encashment notice as HUBCO standby letter of credit expires

    China Power serves encashment notice as HUBCO standby letter of credit expires

    KARACHI: China Power Hub Generation Company (CPHGC) on Wednesday served an encashment notice to Hub Power Company (HUBCO) under standby letter of credit (SBLC), which expires today i.e. November 23, 2022.

    According to a notice of Pakistan Stock Exchange (PSX), an encashment notice has been served by China Power Hub Generation Company (CPHGC) on November 23, 2022, under the Standby Letter of Credit (SBLC) – which expires today- on the issuing bank.

    READ MORE: Industries threaten mass protest against gas supply shutdown

    To recall, the Hub Power Company (HUBC) had provided SBLC for an aggregate amount of $150 million to guarantee an investment in the form of equity or subordinated debt to satisfy the funding shortfall, if any, in CPHGC;

    a) To achieve completion of the project to the satisfaction of the lenders; and

    b) To repay all principal, interest, fees or any other amounts that may fall due by CPHGC under the finance documents to the finance parties.

    READ MORE: SSGC stops gas supply to industries under load management plan

    Moreover, shares held by Hub Power Holding Limited (HPHL) in CPHGC were pledged in favor of the security trustee in order to secure the company and HPHL’s obligations under the financing documents of CPHGC.

    Analysts at Arif Habib Limited said HUBCO will have to provide a new SBLC within ten (10) days from the date of the encashment notice.

    READ MORE: Pakistan has sufficient stock of fuel to meet domestic demand

    In case of non-issuance of new SBLC, banks will disburse $150 million to CPHGC, as per the agreement. In this case, a liability (we are assuming subordinated debt) of the same amount will be booked on the books of HUBCO against a receivable from CPHGC.

    We believe, CPHGC will repay the SBLC amount to HUBCO after the project completion date (PCD). To recall, CPHGC has not achieved PCD yet.

    READ MORE: ECC approves raising petroleum levy to Rs50 per liter on RON 95

    In order to calculate the financial impact of the mark-up differential between the amount paid by HUBC to the banks and the amount charged from CPHGC along with the share of profit from associate, we have run a sensitivity assuming different spreads on mark-up charged from CPHGC by HUBC, as illustrated in the Exhibit below.

    Our base case scenario assumes zero spread as a company cannot charge a markup lower than its own cost from its associate on a subordinated loan, as per regulations, the analysts said.

  • ACCA, IFAC release guide on public financial management reforms

    ACCA, IFAC release guide on public financial management reforms

    A new joint guide by the Association of Chartered Certified Accountants (ACCA) and the International Federation of Accountants (IFAC) released at the World Congress of Accountants (WCOA) aims to boost PFM reforms across the globe by defining for the first time the idea of professionalisation specifically in the context of public sector finance.

    The guide also features case studies of good practice from Tanzania, the UK, Cyprus, the Philippines, Pakistan, Malaysia and Wales.

    A global guide for professionalisation in public sector finance provides a definition of what professionalisation means in public sector finance, sets out the benefits of professionalisation, and offers a high-level roadmap to support global good practice in professionalisation.

    Discussing the global guide ahead of a panel discussion at WCOA, Joseph Owolabi, ACCA president, said: “Professionalisation brings credibility, trust and confidence in public finances by supplementing the systems and public finance processes with the right skills for accountability, transparency, good governance and external scrutiny.

    A professionalised workforce within a finance function supplies more than accounting information. It brings wide value to public sector finances – providing improved revenue collection, effective budgetary controls, and the data required to support policy decision making.”

    Kevin Dancey, IFAC CEO, said: “We are looking to rebalance the focus so that it is not only on the process, but also on the people. The value of the accountancy profession, whether in the public or private sectors, comes from the experience, skills, judgement and ethical behaviour of its people. By increasing the number of professional accountants working in the public sector, we will no doubt add to the credibility and effectiveness of PFM, and reinforce trust in public services and spending.”

    Achieving professionalisation brings multiple benefits to the economy, governments and individuals. It means greater financial credibility for economies, improved financial management discipline for governments, and greater access to diverse career options for individuals.

    Alex Metcalfe, ACCA’s head of public sector, said: “Political leadership and commitment for professionalisation is the most important factor for sustaining PFM reforms over time. In some countries, there is a lack of recognition that change is needed at all. In other countries, PFM reforms have concentrated on moving from cash-based to accrual-based accounting. But now more effort is urgently required to professionalise public finance staff and provide opportunities for training for professional qualifications.”