Category: Business News

Karachi, February 20, 2023 (PPI-OT):VIS Credit Rating Company Limited (VIS) has assigned initial entity ratings of ‘BBB-/A-2’ (Triple B Minus/A-Two) to Madina Oil Refinery Limited (MORL). The medium to long-term rating of ‘BBB-’ denotes adequate credit quality; protection factors are reasonable and sufficient. Risk factors are considered variable if changes occur in the economy. The short-term rating of ‘A-2’ denotes good certainty of timely payment; liquidity factors and company fundamentals are sound. Access to capital markets is good. Risk factors are small. Outlook on the assigned ratings is ‘Stable’.

MORL is associated with ‘Madinah Group’ having diversified business interests including sugar, ethanol, edible oil and vanaspati ghee, power generation, steel and mass media. MORL is relatively a new venture of the group, with shareholding entirely vested within the family. The ratings incorporate extensive experience of the sponsors in the related industry, that leads to long-standing relationship with the distributors and an established procurement network. The company started commercial operations of its refinery with per day capacity of 200 MT in 2021 and has recently installed a solvent extraction plant with a capacity of 300 MT per day for backward integration, which is expected to come online by end-February’23.

The topline almost doubled in the outgoing year and largely constituted vanaspati ghee. The company sells its products under the brands of ‘Zaavi’ and ‘Khushroz’ through dealers across Punjab and KPK. The growth in revenue was driven by higher average selling prices and quantity sold during FY22. However, gross margins decreased amidst the impact of sharp currency devaluation on raw material prices and overall increase in cost of production due to inflationary pressure. Net margins also declined owing to surge in operating expenses and finance cost.

Liquidity profile is underpinned by manageable working capital cycle. Leverage indicators increased on account of higher short-term borrowings amidst elevated working capital requirements at end-FY22. Meanwhile, the same have receded in line with offtake of inventory by end-1Q’23. The debt profile of the company comprised only short-term borrowings while the recent capex has entirely been executed through own sources. Nonetheless, high gearing and relatively smaller equity size vis-à-vis peers lead to enhanced financial risk profile.

Given synergies at the group level, MORL has been able to address the current issue related to import of raw material as LC payments are being settled against export proceeds. The demand outlook for consumer goods industry including edible oil, though quite inelastic, may get impacted amidst all time high inflation suppressing purchasing power of the masses in the country. In addition, higher markup rates, unstable forex parity and depleting foreign exchange reserves will remain major challenges. Further, VIS classifies edible oil industry as ‘High’ business risk given its heavy reliance on imported raw material, fragmented market, low value addition and switching cost along with thin sector margins. The ratings will remain sensitive to achieving projected growth in sales and profitability, maintaining margins and improving capitalization and liquidity indicators, going forward.

For more information, contact:
Director Compliance and Rating Analytics,
VIS Credit Rating Company Limited
VIS House, 128/C, 25th Lane off Khayaban-e-Ittehad,
Phase VII, DHA, Karachi, Pakistan
Tel: +92-21-35311861-72
Fax: +92-21-35311873
Email: bilal@jcrvis.com.pk
Website: https://www.vis.com.pk/

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Islamabad, February 20, 2023 (PPI-OT):Ericsson has expanded its indoor mobile connectivity portfolio with three new easy-to-deploy and cost-efficient solutions aimed at delivering 5G coverage, capacity and capabilities across the interior of any work or business environment – regardless of the size or complexity of the building. The new solutions become part of the Ericsson Radio Dot System portfolio, further increasing the flexibility of this industry-leading portfolio.

Substantial* amounts of mobile data are generated through indoor use. High-performing indoor mobile connectivity has become a critical digital infrastructure. However, relatively minimal floor space in buildings – estimated by Ericsson at 10 to 15 percent – is currently served by indoor 5G connectivity. Businesses spanning all sectors and sizes, whether airports, office complexes, hotels and industrial settings such as factories, mines and ports, require reliable connectivity that improves their operations and customers’ experience.

The currently fragmented in-building market primarily consists of technologies such as Distributed Antenna Systems (DAS) and small cells. As a result, the indoor technology decision-making process is often difficult and time-consuming. Ericsson’s additions to its indoor 5G portfolio – comprising of two new hardware products and a software solution – are aimed at meeting customers’ simplicity and monetization goals through a scalable solution suitable for any indoor environment or situation.

The new offerings

The latest indoor radio unit, called IRU 8850, is suited for medium-to-large venue coverage. Designed for simple and speedy deployment, it delivers up to four times the capacity of its predecessors, enhancing network performance and user experience in medium to large venues. It is also up to 70 percent more energy-efficient compared to active DAS technology.

The second indoor 5G portfolio addition – aimed at small- to medium-sized building coverage – is called the Ericsson Indoor Fusion Unit, a compact, all-in-one indoor 5G solution that combines radio and baseband functionalities into one unit, making it easy and quick to deploy.

Ericsson is also introducing a new software feature for indoor networks called Ericsson 5G Precise Positioning, which provides location services for a wide range of uses cases that CSPs and enterprises can use, like asset tracking and tool positioning, in environments such as factories, mines, hospitals, warehouses, and other industrial private network applications, as well as in emergency response scenarios.

David Hammarwall, Head of Product Area Networks, Ericsson, says: “The new Radio Dot System equipment and location services software further increase the flexibility of Ericsson’s indoor portfolio. Scalable and cost-efficient, the expanded portfolio offers a one-stop-shop to accelerate indoor 5G rollouts globally, spreading the benefits of premium indoor connectivity. It will also enable a variety of use cases for service providers and enterprises that will boost operational efficiency, safety, and user experience.”

Joe Madden, Founder and Chief Analyst, Mobile Experts, says: “The in-building wireless market is so diverse that products have remained extremely fragmented for years. Ericsson has pulled together a line-up of products that are more flexible and adaptable, to handle wide variations in the application. This approach can drive economy of scale, with common parts serving large and small buildings, with high capacity, low capacity, or multi-operator applications. This kind of digital backbone will enable deployment to scale up for larger numbers of buildings.”

The indoor portfolio additions in more detail:

IRU 8850 (Indoor Radio Unit): a purpose-built, high-performing solution for single or multi-operator deployments in medium to large venues such as airports, offices, and stadiums. The product can serve up to eight venues from one centralized location, with a 10km fiber reach. It also supports both purpose-built and Cloud RAN architectures. It is cost-effective: compared to current alternatives it offers up to 80 percent reduction in physical equipment space; and up to 50 percent lower total cost of ownership (TCO) thanks to network sharing.

Ericsson Indoor Fusion Unit: a compact plug-and-play indoor 5G solution aimed at small and medium-sized buildings such as coffee shops, chain stores, branch offices, movie theatres, and restaurants. It can connect up to four Radio Dots to deliver multi-Gbps speeds. It creates new business opportunities for service providers by adding 5G connectivity for smaller enterprises and branch locations.

Ericsson 5G Precise Positioning: software to enable new enterprise use cases and advanced 5G monetization thanks to its unmatched mobile 3D positioning precision of (less than) 1m for any 5G device indoors. Only a mobile connection is needed (no sensors) and it is fully integrated with the existing network. The new software feature is also part of Ericsson’s Private 5G Networks offering to enable enterprises to easily deploy a 5G network, equipped with this Ericsson-unique software feature.

Mark McDiarmid, Senior Vice President of Radio Network Engineering and Development with T-Mobile US, says: “The indoor 5G market is taking off and T-Mobile is ensuring our business customers are reaping the benefits. New solutions like the Ericsson Indoor Fusion Unit will enable us to quickly scale and deliver 5G to our customers with high-performing networks indoors, enabling incredible new use cases and opportunities.”

Kellie Lakamp, Chief Executive Office, Totem, says: “At Totem, we strive to deliver the very best cellular solutions for our enterprise customers and commercial real estate owners. Working with Ericsson and their Radio Dot System portfolio has enabled us to bring high-capacity, high performance connectivity to employees, tenants and visitors. We are excited to see Ericsson adding new solutions for the Neutral Host market.”

The new indoor solutions will be on show and in focus in Ericsson’s booth in Hall 2 at the Fira Gran Via, during MWC Barcelona 2023 from February 27 to March 2. The solutions will be commercially available in the second half of 2023.

For more information, contact:
Ericsson Pakistan (Pvt.) Limited
161-A, 3rd Floor, Saudipak Tower, Blue Area,
Islamabad – 44000, Pakistan
Phone: +92-51-8318270
Website: https://www.ericsson.com/en

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Islamabad, February 20, 2023 (PPI-OT):Muhammad Baligh ur Rehman, Governor Punjab said that the business community of Islamabad is making a good contribution to the economy by promoting business activities and paying taxes, therefore, he would play a role for resolving their key issues. He said this while talking to a delegation of Islamabad Chamber of Commerce and Industry (ICCI) that called on him in Governor House Punjab led by Ahsan Zafar Bakhtawari, President.

The Governor Punjab said that a focal person from Governor House would be nominated to work with ICCI to redress the issues of the business community. He said that he would talk to the Federal Finance Minister Muhammad Ishaq Dar for consultation with ICCI on important matters of the economy. He said that PML(N) had taken the initiative for the Charter of Economy and once finalized, its implementation should not be disturbed with the change of the government. He said that the current government is working hard to steer the economy out of current challenges and control inflation. He hoped that these efforts would help improve the economy.

Speaking on the occasion, Ahsan Zafar Bakhtawari, President, Islamabad Chamber of Commerce and Industry said that ICCI is working for a new industrial estate in the region and the Punjab Government should cooperate for allocation of suitable land for this important project. He said that ICCI should be given representation in the boards of business-related departments of the Punjab Government.

He said that the completion of Rawalpindi Ring Road and IJP road should be expedited to improve the transportation system in the twin cities. He said that the Punjab Government should develop the main road of Kahuta Industrial Triangle as the current road is in broken condition and industrialists are facing problems in transportation of goods. He said that the Punjab Government should allocate land for Chakwal, Talangang and Murree Chambers of Commerce to set up their own offices. He invited the Governor Punjab to an important function of ICCI, which was accepted.

Faad Waheed, Senior Vice President ICCI said that the government should focus on new industrial zones as industrialization is important to improve the economy. Engr. Azhar ul Islam Zafar, Vice President ICCI said that the government should focus on the agriculture sector that will help in reviving the economy.

Khalid Iqbal Malik, Group Leader ICCI said that a thank tank comprising representatives of government and prominent business leaders should be established to work for bringing the economy out of current turmoil. Zafar Bakhtawari, former President ICCI paid tribute to the efforts of Muhammad Baligh ur Rehman and added that he is a role model for others. Muhammad Shabbir, Raja Imtiaz, Ameer Hamza, Faseeh Ullah Khan, Ch. Muhammad Naeem, Khalid Chaudhry, Saif ur Rehman Khan and others were in the delegation.

For more information, contact:
Islamabad Chamber of Commerce and Industry (ICCI)
Chamber House, Aiwan-e-Sanat-o-Tijarat Road,
Mauve Area, G-8/1, Islamabad, Pakistan
Tel: +92-51-2250526, 2253145, 8432676
Fax: +92-51-2252950
Email: icci@brain.net.pk, info@icci.com.pk
Website: www.icci.com.pk

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Karachi, February 20, 2023 (PPI-OT):Chairman of National Business Group Pakistan, President Pakistan Businessmen and Intellectuals Forum, and All Karachi Industrial Alliance, and former provincial minister Mian Zahid Hussain on Monday said utilization of electricity is very low due to its high cost which is hindering social and economic development.

A hike in power tariff will further reduce the pace of the country’s social and economic development, he said. Mian Zahid Hussain said that due to a further increase in the price of electricity, its consumption will further decrease and theft will increase which will damage the economy. The whole electricity system is in the control of elites which can only be improved through the involvement of the local communities.

Talking to the business community, the veteran business leader said that full involvement of the local community in the electricity sector is being ensured in many developed countries, which has yielded positive results. However, in Pakistan, this sector is occupied by political elites and bureaucracy which has been bled white due to incompetence and mismanagement.

He said that public participation has become essential in power generation, distribution, governance, and other matters. Mian Zahid Hussain said that by 2030, the demand for electricity in Pakistan will increase from 25,000 MW to 40,000 MW, for which arrangements are needed. He noted that electricity theft has never been controlled in the country’s history and according to the official data, electricity worth 380 billion rupees has been stolen during this year, which can reach 520 billion rupees with the increase in tariff.

Out of the stolen electricity, 200 billion rupees worth of electricity was stolen through kundas and 80 billion through meters. Electricity is being stolen all over the country, but Bannu Mardan and Sukkur are leading in this regard. Electricity thieves include people from all walks of life including ordinary consumers and government officials. Now, regular businesses have opened to help with electricity theft, which is in great demand.

According to an estimate, 20 percent of the electricity is stolen and 10 percent of the electricity bills are not paid. About seven thousand megawatts of electricity is lost from the system every month, which causes a loss of billions of rupees. The losses are passed on to consumers in the name of line losses, which make electricity expensive, increase business costs and make Pakistani exporters lose their competitiveness in the international market. Due to the incompetence of the officials, the honest consumers and the state are suffering.

For more information, contact:
President,
Pakistan Businessmen and Intellectuals Forum (PBIF)
Tel: +92-343-2226888
Tel: +92-300-8233364
Email: ceo@kenlubes.net

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Karachi, February 20, 2023 (PPI-OT):Chairman of National Business Group Pakistan, President Pakistan Businessmen and Intellectuals Forum, and All Karachi Industrial Alliance, and former provincial minister Mian Zahid Hussain on Friday said tax and other measures will comfort the government but add to the problems of the masses. The tough decisions of the government will help it borrow from IMF but will not help address the economy’s fundamental flaws, he said.

Mian Zahid Hussain said that in the remaining four months of this fiscal year, the government’s deficit will be reduced by the new taxes of 170 billion. Details released about the decision include raising the sales tax from 17 to 18 percent and increasing duties on the cigarette industry, air travel, and beverages, among other measures.

Talking to the business community, the veteran business leader said that an increase of 40 billion rupees in the funding of the Benazir Income Support Program, which has been increased from 360 billion rupees to 400 billion rupees is welcome. He said that contrary to the claims the new tax measures will affect people because the government is still preferring indirect tax instead of direct tax, which affects the people and poverty increases rapidly.

Even in this critical situation when the country is going bankrupt there is no possibility of increasing the tax net which is sad. Mian Zahid Hussain said that increasing the tax rate is not a permanent solution to the problems, but a temporary effort that will not bring the economy out of ICU.

The size of Pakistan’s economy is 300 billion dollars, from which 10 thousand billion rupees should be collected in taxes, but on the contrary, only 7 thousand billion rupees are collected as taxes, 80 percent of which consists of direct taxes, he said. Concrete and lasting steps have to be taken to improve the economy. It is necessary to eliminate circular debt, electricity and gas theft, and losses of government institutions which are not possible without political stability.

Mian Zahid Hussain said that the implementation of the IMF conditionality is improving the financial position of the government while improving the value of the rupee, which is reducing the cost of doing business, but many manufacturers have not reduced the price of their produce. There has been no reduction in the price which needs to be noticed so as to provide relief to the people suffering from inflation, he demanded.

For more information, contact:
President,
Pakistan Businessmen and Intellectuals Forum (PBIF)
Tel: +92-343-2226888
Tel: +92-300-8233364
Email: ceo@kenlubes.net

The post Despite IMF loan, economy will remain in ICU: Mian Zahid Hussain appeared first on Business News Pakistan.

Islamabad, February 20, 2023 (PPI-OT):Ahsan Zafar Bakhtawari, President, Islamabad Chamber of Commerce and Industry (ICCI) has said that the government is spending billions of rupees every year to bail out the loss-making State Owned Entities( SOEs) including PIA, Pakistan Steel, Pakistan Railways and DISCOs, which show that these entities are a big burden on the national exchequer and stressed that the government should privatize these entities to big businessmen of the country that would reduce government expenditure, improve the performance of these organizations and enable the country to decrease its debt. He said this while addressing as Chief Guest a dinner reception hosted by Zahid Rafiq, Secretary General, Islamabad Estate Agents Association.

Ahsan Zafar Bakhtawari said that there are many reputed businessmen in the country who have the financial capacity and capability to turn the loss-making SOEs into profit generating organizations and emphasized that the government should hand over these SOEs to them on the condition that they would pay off all the debts of the country within 10 years and after that these SOEs should be transferred to their name. He said that deregulation and privatization of banking and telecom sectors have made significant improvement in their performance and these two sectors are paying billions of rupees in taxes to the government. He said that the best option of transforming loss-making SOEs into profit-generating entities is to privatize them as soon as possible.

Zafar Bakhtawari, former President ICCI speaking at the occasion, said that rising debt servicing obligations are consuming a major share of our total revenue due to which the country is unable to spend more on development and public welfare projects. He said that Pakistan cannot achieve sustainable economic development without controlling the rising debt burden. He stressed that the government should make policies to control debt and reduce non-development expenditures. He called upon the business community to work hard to promote trade and exports in order to improve the economy.

Sardar Yasir Ilyas Khan, former President ICCI said that running business entities is the job of the government. Therefore, he stressed that the government should focus on improving the regulatory framework for commercial organization and reduce its footprint in the business field by handing over the loss-making organizations to the private sector. Sardar Tahir President, Zahid Rafiq Secretary General Islamabad Estate Agents Association and others also spoke at the occasion and emphasized that the government should adopt austerity measures and reduce all unnecessary expenditure to overcome fiscal and current account deficits.

For more information, contact:
Islamabad Chamber of Commerce and Industry (ICCI)
Chamber House, Aiwan-e-Sanat-o-Tijarat Road,
Mauve Area, G-8/1, Islamabad, Pakistan
Tel: +92-51-2250526, 2253145, 8432676
Fax: +92-51-2252950
Email: icci@brain.net.pk, info@icci.com.pk
Website: www.icci.com.pk

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Islamabad, February 20, 2023 (PPI-OT):Ahsan Zafar Bakhtawari, President, Islamabad Chamber of Commerce and Industry (ICCI) leading a delegation, met with Syed Shehzad Nadeem Bukhari, Deputy Inspector General Operations of Islamabad Police and discussed issues of mutual interest with him. He commended the Islamabad Police for bringing the criminals of the recent incident with a woman in F-9 Park to justice as it will create a better sense of security in women and they will be able to go to markets and parks with confidence.

He said that it is necessary to deal strictly with the elements that harass women so that women can go out of their houses without fear and play their active role in the development of the economy and society. He said that ICCI is trying to install security cameras in the important markets of Islamabad in collaboration with market associations so that crimes in the markets can be eradicated, which will give better promotion to commercial activities. He gave various suggestions to the DIG Operations to further improve the security situation in the commercial centers and assured that the business community would fully cooperate with the police in efforts to curb crimes in the federal capital. He also invited the DIG Operations to visit ICCI and various markets, which was accepted by Syed Shehzad Nadeem Bukhari.

Speaking on the occasion, Syed Shehzad Nadeem Bukhari, DIG Operations said that the business community is playing a key role in promoting the economy, so the Islamabad Police would always try to provide them with a peaceful and safe environment. He said that with the support of the Chamber, police will try to improve security in markets and industrial areas.

Talking about the recent incident of F-9 Park, he said that harassers of women will be dealt with iron hands and the police will crack down with full force on those who disturb the peace of the society. He said that it is our mission to make Islamabad police a model police and for this purpose we will rid the police of black sheep. He said that to make Islamabad a crime-free city, the cooperation of the citizens, including the business community, is necessary, so the police will make progress in this direction with their cooperation.

Faad Waheed, Senior Vice President ICCI offered useful suggestions for improving security arrangements in industrial areas with the DIG Operations and hoped that they would be implemented to facilitate better promotion of industrial activities. Zafar Bakhtawari former President ICCI, Asad Aziz President Jinnah Supermarket, Raja Javed Iqbal President G-9 Markaz Karachi Company, Maqsood Tabish, Sheikh Mohammad Ejaz, Akhtar Hussain, Khalid Chaudhry, Saif ur Rehman Khan and others were included in the delegation.

For more information, contact:
Islamabad Chamber of Commerce and Industry (ICCI)
Chamber House, Aiwan-e-Sanat-o-Tijarat Road,
Mauve Area, G-8/1, Islamabad, Pakistan
Tel: +92-51-2250526, 2253145, 8432676
Fax: +92-51-2252950
Email: icci@brain.net.pk, info@icci.com.pk
Website: www.icci.com.pk

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Islamabad, February 20, 2023 (PPI-OT):Former President of Islamabad Chamber of Commerce and Industry (ICCI) Dr. Shahid Rasheed Butt on Monday said the entire burden of the IMF’s conditions is being put on the people, which will stoke poverty and further worsen their condition. The burden of these conditions should also be put on the privileged aristocracy which is getting annual benefits worth 17.4 billion dollars annually, he said.

Shahid Rasheed Butt said that bribing nobility at the cost of the poor is the worst cruelty and daylight robbery. In addition, up to twenty billion dollars are wasted annually in government purchases of which a sizable amount can be saved. He said that if the privileges and corruption of elites are reduced and this huge amount of money is spent on the people, then the destiny of the country can be changed.

The government always helps the rich instead of the poor but now the process of squeezing the people should be stopped and all IMF reservations should be removed. The IMF fears that its money will be used to pay off Chinese debt and is not satisfied with the explanations of the concerned officials. He criticized IMF for pressurizing Pakistan to raise revenue but it has never stressed putting some burden on the wealthy instead of the poor.

Similarly, the lender has not expressed any seriousness about doling out massive subsidies to the rich while the poor merit the government’s help. Pakistan is not being run like a country but like an orphanage; the country is going through a difficult situation, but the rich people are being rewarded in every possible way and taxes are not being collected from them.

All the difficult decisions that have been made so far are targeting the poor. At present, flour is available from 130 rupees per kg to 150 rupees per kg, the price of chicken has increased from 700 rupees per kg and the price of milk has reached 200 rupees per litre and this process continues which is squeezing the poor.

For more information, contact:
Dr. Shahid Rasheed Butt
Consul General Ghana
Former President ICCI
Former Patron ICST
Tel: +92-333-5132199, +92-51-2822571

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