Lower Credit Pricing and Soft Collateral for SMEs Can Boost Production, Employment and Exports: Mian Zahid Hussain

President of the Pakistan Businessmen and Intellectuals Forum (PBIF) and All Karachi Industrial Alliance, Chairman of the National Business Group Pakistan, Chairman of the FPCCI Policy Advisory Board, and former Provincial IT Minister, Mian Zahid Hussain, has welcomed Prime Minister Mian Muhammad Shehbaz Sharif’s directive to increase financing for small and medium-sized enterprises from Rs1.1 trillion to Rs2.2 trillion by 2028. The Prime Minister issued the directives while chairing a meeting with the Small and Medium Enterprises Development Authority (SMEDA) in Islamabad on October 12, 2026. Mian Zahid Hussain said the initiative could stimulate industrial production, investment and employment, but achieving the target would require lower credit rates, banking reforms and easier collateral for SMEs.

Mian Zahid Hussain said that, according to the Ministry of Finance, SME financing increased from Rs1.114 trillion in June 2026 to Rs1.137 trillion in September, while the number of borrowers reached approximately 350,862. The increase of Rs23 billion over three months represents positive progress however, achieving the target by 2028 would require an average quarterly increase of approximately Rs118 billion, more than five times the current pace. He urged the government to assign clear targets to commercial banks and ensure digital processing of applications and online monitoring of their quarterly performance.

Mian Zahid Hussain said that prior to the recent meeting, the Prime Minister chaired a meeting in July 2026 and set targets of increasing SME financing to Rs2 trillion and the number of borrowers to 775,000 by June 2028. Following the increase in the financing target to Rs2.2 trillion, the Ministry of Finance and the State Bank of Pakistan should jointly announce revised targets and an implementation plan. He said that approximately 350,000 small and medium-sized businesses currently obtain bank financing, while the earlier borrower target requires the inclusion of more than 400,000 additional businesses. He added that increased financing must reach new enterprises, small industries and underserved areas, particularly businesses in the remote districts of Balochistan, rather than remaining concentrated among existing borrowers.

Mian Zahid Hussain said that comparatively high markup rates on SME financing were a major obstacle to business growth. He stated that the KIBOR currently stood at 11.5 percent, while banks charged an additional spread of 5 to 6 percent on SME business loans, pushing annual borrowing rates to around 17 to 18 percent. He said other countries maintained lower financing costs to enable SMEs to expand, citing rates of 4.5 percent in India, 3 percent in China and 4.5 percent in Vietnam. Such expensive financing in Pakistan makes expansion difficult for businesses operating on narrow profit margins. He urged the government to provide SME financing at six percent below KIBOR, supported by risk-sharing coverage of at least 50 percent, so that small businesses could benefit meaningfully from the initiative.

Mian Zahid Hussain said that concessional schemes offering financing at 5, 7 and 9 percent were available, but their effectiveness must be assessed through the number of businesses served and the financing actually disbursed. Delays in loan approvals, complicated documentation and stringent collateral requirements must be addressed to broaden access. Banks should expand lending based on business cash flows, transaction records and verified supply orders, while the government should strengthen credit guarantee schemes to contain lenders’ financial risks.

Mian Zahid Hussain said SMEDA should provide feasibility studies in local languages and work with the FPCCI and district chambers of commerce to help SME entrepreneurs prepare business plans and maintain financial records. Loan tenors and repayment schedules should reflect businesses’ production requirements. He added that expensive energy, a complicated tax system and delayed payments by large buyers also constrained small business growth. The government must address these issues through coordinated policy measures so that increased financing translates into industrial development, higher exports and additional employment.

Karachi despite generating 67 pc revenue, suffers from crumbling infrastructure, water shortages, rampant street crime

KARACHI: Chairman Businessmen Group (BMG) Zubair Motiwala has called for an urgent, coordinated drive to rescue Karachi from its deepening civic and economic crisis, questioning how Pakistan’s economic powerhouse, contributing approximately 67 percent of federal revenue and 54 percent of national exports, continues to suffer from crumbling roads, acute water shortages, unreliable utilities, deteriorating sewerage and rampant street crime. 

Addressing a high-level meeting of patron-in-chiefs, presidents, secretary generals and representatives of Karachi-based trade bodies and industrial town associations, Motiwala demanded time-bound action, institutional accountability and measurable results, stressing that Karachi needs delivery, not promises.

Highlighting the economic cost of civic mismanagement, Motiwala warned that unreliable electricity and gas, inadequate infrastructure and low industrial capacity utilization were driving up production costs and undermining competitiveness. He called for the early completion of K-IV, a fully operational Safe City system, a Karachi Bypass to potentially divert 70 percent of heavy traffic away from the city, mandatory road-restoration guarantees, independent engineering audits and a business-friendly tax regime. He also demanded transparent electricity billing, automatic consumer compensation for service failures, regionally competitive gas prices, digital land records and faster resolution of tax refunds.

Zubair Motiwala proposed identifying five immediate priorities, assigning responsibility to relevant institutions and establishing firm deadlines and measurable performance indicators. He also called for a unified platform of Karachi’s trade and industrial associations, backed by active participation from their members, to press the authorities for corrective action. Emphasizing that the objective was a liveable, secure and economically competitive Karachi, not political or administrative controversy, he urged all stakeholders to replace fragmented efforts and repeated assurances with a coordinated, results-driven strategy.

Vice Chairman BMG Anjum Nisar urged Karachi’s trade and industrial bodies to move beyond highlighting problems and develop a unified, actionable agenda to address the city’s worsening civic and economic challenges. To highlight the awful state of Karachi, he called for a common documentary exposing the city’s ground realities, including corruption, extortion, excessive taxation and deteriorating infrastructure. He advocated permanent solutions to water shortages, completion of the long-delayed K-IV project, and a practical fiscal model empowering local governments with adequate resources. He also proposed joint pre-budget consultations by KCCI and trade associations to formulate common recommendations. He emphasized stronger collective representation before federal and provincial authorities, consistent follow-up and, if negotiations failed, coordinated protest to secure Karachi’s legitimate rights, stressing that the city’s issues must be pursued as a common cause rather than individual organizational demands.

Vice Chairman BMG Jawed Bilwani urged Karachi’s business community to unite behind three to four decisive priorities, warning that the city’s longstanding problems would persist without sustained collective pressure and accountability. He demanded urgent implementation of the Safe City project, stronger action against street crime and land grabbing, protection of public land, and transparent documentation and allocation of Karachi’s revenues to meet its civic and infrastructure needs. Questioning repeated road excavation and reconstruction, alleged resale of public land, missing manhole covers, encroachments on the Lyari and Malir riverbeds and the risk of urban flooding, he called for business community oversight of public works contracts to prevent waste of taxpayers’ money and ensure quality construction. He also proposed a unified response to serious attacks on traders, including the possibility of a citywide shutdown if a trader was killed, and urged KCCI, trade associations, industrialists, transporters and small traders to launch a coordinated campaign through a joint press conference, emphasizing that only a united, evidence-based and uncompromising approach could compel authorities to address Karachi’s critical challenges.

Vice Chairman BMG Mian Abrar Ahmed called for permanent, direct representation of the Karachi Chamber in key government bodies and public-sector institutions responsible for Karachi’s civic infrastructure, utilities and economic development, including the Sindh Assembly, Karachi Metropolitan Corporation (KMC) and K-IV water project. Emphasizing Karachi’s strategic importance and substantial contribution to national revenue, he regretted that the business community remained inadequately represented in decisions directly affecting the city. He warned that corruption and bribery continued to obstruct business operations and argued that occasional meetings could not replace a formal role in decision-making. Backing the KCCI resolution passed on September 30, he stressed that institutional representation would improve transparency, strengthen accountability, provide reliable information and enable business leaders to convey ground realities directly to policymakers, making their meaningful participation essential to resolving Karachi’s longstanding civic and economic challenges.

Vice Chairman BMG Tariq Yousuf identified corruption and the networks facilitating illegal activities as fundamental causes of Karachi’s deteriorating civic conditions, questioning how roads and streets could be occupied by restaurants and commercial establishments, traffic violations tolerated, and illegal electricity connections established without financial arrangements benefiting those involved. He warned that the public ultimately paid the price through traffic congestion, inconvenience and inequitable access to essential utilities, including water, gas and electricity. Calling for decisive action, he urged the business community and relevant authorities to expose and dismantle the mechanisms enabling unlawful occupation of public spaces and misuse of civic resources, stressing that lasting improvement in Karachi’s infrastructure and public services would remain elusive unless corruption was confronted at every level.

President KCCI Talat Mahmood proposed constituting a representative committee of Karachi’s trade and industrial associations to develop an actionable reform agenda within 15 days, warning that further delays could undermine the unity and momentum needed to resolve the city’s longstanding problems. He called for issue-specific subcommittees to prepare comprehensive Terms of Reference (ToRs), regular progress reporting to KCCI and town association leadership, and a united press conference involving industrialists, traders and small businesses to press federal and provincial governments for concrete action. Highlighting Karachi’s persistent infrastructure deficiencies, he demanded a dedicated anti-corruption initiative to investigate complaints involving public offices, including the Sub-Registrar’s Office and Sindh Building Control Authority, citing allegations of substantial unofficial payments despite prescribed fees. Reaffirming the business community’s collective responsibility, he stressed that the approximately 91 percent electoral support received by BMG reflected stakeholders’ confidence and must translate into tangible results through unity, sustained engagement, clear responsibilities and coordinated follow-through.

Deputy Patron-in-Chief of the Korangi Association of Trade & Industry (KATI) Zubair Chhaya called for a coordinated, non-political campaign to resolve Karachi’s worsening civic and economic challenges, stressing that the priority must be implementation and accountability rather than repeated identification of problems. He advocated a dedicated authority to manage the city’s fragmented sewerage system, urgent implementation of the Safe City project, coordinated road and utility works, digitization of land records and decisive action against encroachments, illegal parking and corruption. Warning that untreated municipal and industrial wastewater was damaging marine ecosystems and that pollution threatened public health, he demanded equal enforcement of environmental laws against public and private entities. He also questioned the transparency of Karachi’s revenue allocation, citing the Sindh Revenue Board’s reported collection of Rs372 billion, approximately 95% of which he attributed to Karachi, and estimating annual infrastructure development cess collections at Rs150–175 billion, calling for full disclosure of collections and expenditure. Emphasizing that Karachi’s substantial economic contribution must translate into better civic services, he urged all trade and industrial associations to unite behind practical, prioritized recommendations and demand measurable results from the relevant authorities, irrespective of political affiliations.

MNA Mirza Ikhtiar Baig pledged coordinated parliamentary support to address Karachi’s longstanding civic and economic challenges, congratulating KCCI and BMG Chairman Zubair Motiwala on their electoral victory and collective initiative. Highlighting his engagement through parliamentary committees, he said key projects, including K-IV and the proposed Lyari elevated expressway, had been taken up at the parliamentary level, with efforts underway to address funding gaps. He strongly opposed prolonged area-wide electricity load-shedding that penalizes regular bill-paying consumers for others’ defaults and proposed a meeting involving Federal Minister for Energy Awais Leghari, KCCI, Karachi’s MNAs and K-Electric to pursue on-the-spot solutions. He also called for further engagement on the withdrawal of gas supplies to industrial captive power plants and its implications for production costs and competitiveness. 

Former President KCCI Zakaria Usman urged Karachi’s business community to abandon ceremonial engagements and pursue an assertive, sustained campaign to secure practical solutions to the city’s decades-old problems. Drawing on nearly 40 years of trade politics experience, he stressed that Karachi’s challenges were already well documented and required decisive action rather than further deliberations. He called for an uncompromising campaign against corruption, fraudulent property documentation and land grabbing, highlighting administrative inefficiencies, alleged demands for unofficial payments and prolonged delays in legitimate tax refunds.

Chairman Association of Builders and Developers (ABAD) Hanif Gauher called for a united, uncompromising campaign against extortion, deteriorating law and order, land grabbing and alleged corruption in Karachi’s regulatory institutions, warning that meetings and speeches would achieve little without sustained collective action. He urged KCCI, ABAD and industrial estate associations to strengthen the framework through joint consultation and a focused agenda. Citing security threats to businesses, including the reported killing of a security guard at a builder’s office, he stressed that individual associations could not effectively confront these challenges in isolation.

Leader of Pakistan Cloth Merchants Association Ahmed Chinoy called for a dedicated Implementation Committee under KCCI’s leadership to translate Karachi’s civic and economic reform agenda into measurable results through a time-bound 100-day action plan. Congratulating BMG Chairman Zubair Motiwala on bringing key stakeholders together, he proposed prioritizing issues and assigning responsibilities within the first 15 days, engaging relevant government departments and securing firm commitments by day 30, and systematically monitoring progress from day 31 to day 90. 

President Korangi Association of Trade & Industry (KATI) Sheikh Umer Rehan identified institutional incompetence, weak accountability and administrative failures as fundamental reasons Karachi’s longstanding problems remained unresolved, urging comprehensive reforms, devolution of powers and strict performance-based accountability across public institutions. Drawing on his experience as KATI President in 2019 and following his re-election approximately seven years later, he questioned why the same civic and administrative challenges persisted despite repeated discussions. Criticizing the FBR for placing additional compliance burdens on documented businesses through digital invoicing and surveillance-camera requirements, he called for expanding the tax base, bringing untaxed economic activity into the net and strengthening the tax authority’s own capacity and governance. 

Chairman Pakistan Petroleum Dealers Association Malik Khuda Baksh sought KCCI’s intervention over 15 notices reportedly issued by the FBR to petrol pumps concerning digital invoicing, maintaining that petroleum dealers operate as commission agents and that no legal provision, in his understanding, requires them to issue digital invoices in the manner demanded. Informing participants that the association had already held two meetings with the Chief Commissioner Inland Revenue and had another meeting scheduled with the FBR Chairman on Tuesday, he expressed concern over the compliance burden and sought KCCI’s legal guidance to formulate a unified position. 

President North Karachi Association of Trade & Industry Faisal Moiz urged KCCI to approach the federal government for a streamlined, business-friendly administrative framework for Karachi’s industrial estates, commercial markets and economic hubs, arguing that repeated consultations over six to seven years had failed to resolve the city’s fundamental problems. 

Former President KCCI Abdullah Zaki questioned the effectiveness of engaging authorities over Karachi’s land-grabbing crisis. Urging the business community to abandon fruitless consultations and adopt a firm, united stance, he proposed a boycott if meaningful progress was not achieved within six months.

President Federal B. Area Association of Trade & Industry Raza Hussain urged KCCI and participating associations to translate discussions on Karachi’s civic, administrative and law-and-order challenges into a clear, actionable strategy, identifying the relevant authorities, formal channels for pursuing grievances, assigned responsibilities and effective follow-up mechanisms. 

Chairman Warehouse & Logistics Association Naveed Farooki urged KCCI to institutionalise quarterly or monthly meetings to monitor progress on Karachi’s civic and economic challenges, warning that alleged corruption and demands for unofficial payments by regulatory bodies, including the Sindh Food Authority, EOBI and SESSI, were adding to businesses’ operational costs and mental stress. 

Former President KCCI Iftikhar Ahmed Vohra urged Karachi’s trade and industrial associations to move beyond discussions and unanimously adopt a concrete resolution outlining shared priorities, practical measures and a coordinated strategy to address the city’s longstanding challenges. 

Former President SITE Association of Industry Saleem Parekh urged KCCI to restore and secure business community representation in key institutions, including the Karachi Water and Sewerage Board, K-Electric, Sui Southern Gas Company (SSGC) and Karachi Metropolitan Corporation (KMC), to enable direct engagement on water, electricity, gas and civic issues. 

Representative of Pakistan Hotels Association Ather Bhutto urged Karachi to emulate Shanghai’s transformation through disciplined governance, accountability and long-term infrastructure planning, identifying corruption, water theft and weak public services as major impediments to progress. He called for universal water metering and effective enforcement to improve revenue recovery, development of ring roads and modern transport infrastructure, and provision of basic facilities such as public toilets. 

Concluding the meeting, President KCCI Talat Mahmood proposed resolution to constitute five committees comprising nominees of all participating trade and industrial associations, mandated to finalize actionable recommendations and comprehensive Terms of Reference (ToRs) within 15 days. He further proposed regular progress reviews, close coordination with KCCI and town associations, and a united press conference involving industrialists, traders and small businesses to present the business community’s consolidated demands.

IT Park to be established near Karachi Airport, Groundbreaking within this month: Amin ul Haq

Federal Minister for Information Technology & Telecommunications Syed Aminul Haq has informed that a piece of land at a cost of Rs31 billion has been acquired from Civil Aviation Authority near Karachi Airport for setting up an IT Park in Karachi where plots will be available at much lower rates so that maximum number of Small and Medium Enterprises (SMEs) associated with IT services could be encouraged to establish their businesses at the IT Park which will be fully equipped with state-of-the-art infrastructure and all IT related facilities.

Exchanging views at a meeting during his visit to the Karachi Chamber of Commerce & Industry (KCCI), the IT Minister said that ground breaking ceremony for IT Park will be staged within the current month and the leadership of Businessmen Group and Karachi Chamber will be specially invited to grace the ceremony with their presence.

Chairman Businessmen Group Zubair Motiwala, Vice Chairmen BMG Anjum Nisar, Jawed Bilwani, General Secretary BMG AQ Khalil, President KCCI Muhammad Idrees, Vice President Qazi Zahid Hussain, Former Presidents Majyd Aziz, Shamim Ahmed Firpo, Agha Shahab Ahmed Khan and KCCI Managing Committee Members attended the meeting.

Amin ul Haq, who was accompanied by Federal Minister for Maritime Affairs Faisal Ali Subzwari and Member National Assembly Khalid Maqbool Siddiqui, further informed that although he intended to launch 5G technology in the month of December 2022 but it has been extended for three months to March 2023 which will initially be launched in major cities of Pakistan.

He said that rigorous efforts were being made to improve IT exports and an ambitious target of US$15 billion has been set for IT exports in the next five years. “We want to bring the IT exports at par with textile exports and would strive really hard to leave behind the textile exports and make IT exports the leading exports of Pakistan”, he added.

“When I assumed charge of the Ministry, the IT exports were less than $1 billion which improved to US$1.4 billion in 2019-20 and reached US$2.1 billion 2020-21. We expect IT exports to rise further and reach US$3 billion this year”, he said.

He further stated that the Ministry has invested a sum of Rs60 billion to improve connectivity across the country. “Our plan of action is not confined to Karachi only but we have initiated IT and telecommunication projects in Jamshoro, Dadu, Larkana, Badin and other areas of the country as well.”

“Keeping in view the grievances being faced by the business community, I demanded from the Prime Minister to twist the ears of the State Bank of Pakistan (SBP) and Federal Board of Revenue (FBR) and he has agreed to do so”, the Minister said while appreciating the support being extended by Prime Minister Shehbaz Sharif.

Federal Minster for Maritime Affairs Faisal Ali Subzwari assured full support and cooperation in resolving issues being suffered by the business community Karachi. “My Mobile number is available with representatives of business community hence, instead of contacting anyone else from my office, you should directly get in touch with me as I am just a call away”, he said, “As 95 percent of my Ministry’s work happens in Karachi, I spend five days a week here and just a day in Islamabad”.

Faisal Subzwari seconded President’s KCCI Proposal of having a regulatory framework for shipping lines but the proposed regulatory body for this purpose should comprise of all stakeholders including members of the business community and representatives of shipping lines. “We will also look into the possibility of incorporating KCCI’s representative on PQA Board wherein a representative of Bin Qasim Association of Trade and Industry is already present”, he added.

Speaking on the occasion, Khalid Maqbool urged the business community to raise a strong voice for the rights of MQM-P and Karachi city. He said the next general elections will be held upon completion of fresh census. MQM has made written agreements with the PML-N and PPP in the larger interest of Karachi and Pakistan, he added.

Chairman BMG Zubair Motiwala, in his remarks, stressed that the government has to come up with an effective policy that leads to generating employment opportunities, enhances exports and promotes import substitution, besides creating an enabling business environment for the industries who were the only source for providing jobs and capable to pull the people out from poverty.

Expressing deep concerns over high cost of doing business, he suggested that a committee at the National Assembly level should be formed and tasked to evaluate and study the cost of doing business in Pakistan and compare it with cost of doing business in India, Bangladesh, Vietnam, Thailand and Sri Lanka. “If our cost of doing business is the same then we, the exporters, are responsible for lesser exports but if it is not, then the government must bring down the cost of doing business at par with our competitors which is the only way forward”, he said, adding that the country will not prosper if even playing field was not provided to the business and industrial community.

“We only need those basic facilities which are available to citizens in other countries around the world. It is the responsibility of the government to make arrangements and provide facilities to industries so that they could become socially complaint as per requirement of the international community”, Chairman BMG stressed.

He was of the view that poor policies and bad governance have created a disturbing situation in which the rich were becoming richer while the poor were getting poorer. The government has to focus on promoting industrialization as well as the exports and must also resolve pending issues being faced by industries on top priority as it was these industries which can create employment opportunities and ensure progress and prosperity for the country.

Zubair Motiwala also advised the IT Minister to come up with some kind of program wherein those individuals working from home could be provided solar panels along with laptops and a business plan so that they could come out of the frustration of being jobless and become self-reliant. Moreover, the existing libraries in universities must also be transformed into virtual universities and the space available be converted into IT sections where our youth must be imparted latest IT-related trainings which would help in achieving the IT export targets set for next five years.

President KCCI Muhammad Idrees, in his welcome address, stressed the need for having strong liaison and coordination between the Karachi Chamber, Federal and Sindh Government so that the some of the serious issues of Karachi which have been pending since long could be resolved. “We all must make collective efforts and should be on one page in dealing with numerous issues being faced by the business community of Karachi”, he added.

Taking advantage of Maritime Minister’s presence, President KCCI particularly mentioned that shipping lines were creating a lot of problems and overcharging the traders hence, an autonomous regulatory body has to be formed at the earliest to put an end to the looting and highhandedness of all shipping lines. “As KCCI representative is given a slot as trustee on KPT Board, similar representation must also be given on Port Qasim Authority’s Board so that the issues being faced by business community in dealing with PQA authorities could also be amicably resolved”, he added.

Keeping in view the potential of Blue Economy, the Karachi Chamber, Pakistan Navy and Ministry of Maritime Affairs can join hands and work collectively to promote the massive opportunities available in the Blue Economy.

He also requested the Maritime Minister to hand over the Textile City situated near Port Qasim to Karachi Chamber so that it’s infrastructure could be developed by KCCI as per international standards and the industrial plots could be leased to genuine industrialists.

He further urged the IT Ministry to take KCCI onboard in all the IT development projects while the desperately needed IT Park should be established at the earliest. “The ambitious target of US$15 billion for IT exports was doable but the government has to provide the required facilities so that this target could be achieved without any hitches”, he added.

Dr Reza Baqir unveils Asaan Mobile Account to enable opening of branchless banking accounts

Governor State Bank of Pakistan, Dr. Reza Baqir, unveiled the Asaan Mobile Account (AMA) today in a launch ceremony held at SBP headquarters Karachi. AMA allows opening of a branchless banking account by dialing a simple code *2262# on a mobile phone. The account holder can then deposit money in his or her account at any branchless banking agent and use the same for transactions through mobile phone. AMA is an initiative of State Bank of Pakistan (SBP) to achieve National Financial Inclusion Strategy (NFIS) target of promoting digital financial inclusion in the country. AMA has been launched with the key support of various stakeholders including PTA, NADRA, Branchless Banking (BB) Providers, Cellular Mobile Operators (CMOs) and Virtual Remittance Gateway (VRG). VRG has been licensed jointly by SBP and PTA under the regulations for mobile banking interoperability. The launch ceremony was chaired by Dr. Reza Baqir, Governor SBP and addressed by Ms. Sima Kamil, Deputy Governor SBP, Chairman PTA Major General (R) Amir Azeem Bajwa HI (M), Chairman NADRA Mr. Muhammad Tariq Malik and Mr. Ikram Sehgal, Chairman VRG. The ceremony also witnessed signing of a Memorandum of Understanding (MoU) among 13 branchless banking service providers. The MoU was signed to affirm their commitment in facilitating customers through continued collaboration for more innovations in line with NFIS vision.

While speaking on the occasion, Dr. Reza Baqir thanked the stakeholders for their contributions that culminated into the successful launch of the AMA initiative. He said that AMA is expected to bring a significant increase in bank account opening and the lack of internet access or proximity to branchless banking outlets/bank branches would no longer be barriers for Pakistanis to access financial services. Accounts can now be opened simply by dialing a USSD code *2262# from any mobile phone (smart or simple feature phone) through any mobile network, without requiring internet connectivity. Customers will have the choice to choose from any of the 13 branchless banking service providers that are currently offering AMA. 

Governor Baqir highlighted that the AMA would play an important role in enhancing digital access and use of formal financial services in the country. He added that Pakistan has over 187 million biometrically verified mobile subscribers with Tele-density of around 85%, however; there are only 106 million 3G/4G subscribers with mobile internet penetration standing at 48%. This gives us the potential market of around 81 million mobile subscribers which don’t have access to internet and could become users of AMA if provided with the right value proposition. 

AMA will particularly help low income segments with non-digital phones and no access to internet to enjoy banking as it offers a simpler process, such as dialing a code, to avail financial services. Moreover, AMA will be a highly suitable platform to onboard Pakistani women customer segments as well since they face greater obstacles in accessing formal financial services due to mobility, cultural and documentation issues. AMA with its ease of use will be instrumental in bringing the next 50 million Pakistanis under the banking ambit. 

This initiative is also in line with Government of Pakistan’s holistic approach of “Digital Pakistan” initiative to enhance access & connectivity, digital infrastructure, and innovation. Now, the Government will also have the option to use this channel for disbursing money under the flagship poverty alleviation Ehsaas Program to reach 15 million beneficiaries.

Federal Minister of ITT Syed Amin-ul-Haq visit KCCI

Federal Minister for IT and Telecommunication Syed Amin-ul-Haq along with Mr. Muhammad Sohail Rajput, Secretary (IT&T) and Syed Junaid Imam, Member (IT) visited Karachi Chamber of Commerce and Industry (KCCI) on Friday 3rd Dec 2021.

He was warmly welcomed at KCCI. President KCCI, Mr. Muhammad Idrees emphasized that Pakistan must strengthen its technology base as a long-term strategy.
Pakistan’s youth is well versed in tech. There is a need to further strengthen the IT sector with a special focus on start-ups by the government and being the largest Chamber of the country, KCCI is the best forum to promote IT and telecom as the world is fast moving towards digitalization. After textile industry, IT is the leading export sector. Pakistani industry will increasingly need to adopt automation and digitalization, thus a highly-skilled workforce is needed in future-ready technologies.

BMG Chairman Siraj Teli laid to rest

Namaz e Janaza of Chairman Businessmen Group (BMG) & Former President Karachi Chamber of Commerce & Industry (KCCI) Late Siraj Kassam Teli was held at Masjid e Saheem on Thursday which was attended by thousands of people belonging to all walks including ministers, politicians, KCCI Office Bearers & Managing Committee Members, family members, friends, relatives, prominent business personalities, bureaucrats and a large number of BMGIANs.Late Siraj Teli, who has left behind a widow, a son and a daughter, was laid to rest at Defense Phase 7 Ext. Graveyard. Quran Khuwani for Esal e Sawab of the departed soul will be held on Friday at Masjid e Saheem, Khayaban e Rahat DHA Phase 6 between Maghrib and Isha Prayers.

President KCCI M. Shariq Vohra, while paying homage to Siraj Teli for his matchless contribution and lifelong quest for the rights of business & industrial community and the city of Karachi, said, “Siraj Teli will stay alive in our hearts and will always be remembered for his exceptional and dedicated services to the entire business & industrial community and Karachiites under the policy of Public Service. “Siraj Teli was a dynamic leader whose illustrious career spanning over 28 years has indeed left an indelible impression on the entire business & industrial community. He was instrumental for grooming the business leaders by giving them the opportunity to become President KCCI and always guiding them round the clock on how to deal with issues.”Shariq Vohra also appreciated everyone who expressed their condolences from all over the country and around the world. “We are indebted to everyone for joining us in prayers for the departed soul”, he added.He prayed that may Almighty Allah place the departed soul in Jannat ul Firdous and grant courage to the members of the bereaved family, friends, well-wishers and all BMGIANs to bear this irreparable loss.

Late Siraj Kassam Teli was a distinguished industrialist possessing eminent qualities of leadership. He belonged to a renowned family that has been active in business since the inception of Pakistan. Siraj Teli’s valuable family background has been a great source of strength in enabling him to conduct his life ethically and successfully. As Chairman of the Businessmen Group, Siraj Teli was recognized for his extraordinary leadership of the Business and Industrial community over the past 28 years. He brought about revolutionary and progressive changes in trade politics and in the functioning of the Karachi Chamber of Commerce & Industry, the SITE Association of Industry and other platforms of public service and social work. To recognize Siraj Teli’s outstanding contribution to the national economy and public service, the then President of Pakistan Asif Ali Zardari was pleased to confer the award “Sitara-e-Imtiaz”. Siraj Teli’s services to the private sector, his efforts for the industrial development and his endeavor for the unity of the nation in general and business and industrial community in particular, his aggressive and creative plans to boost export and his contribution to the economic development of the country were indeed creditable and commendable.Siraj Kassam Teli’s unrelenting, sincere and honest efforts have changed the outlook of Trade Politics. As a result, now genuine stakeholders are seen taking part in the affairs of KCCI. His leadership had been instrumental in changing the mindset of the Business Community in such a manner that the Chamber now looks after the general interest of Karachi as a whole and, without any discrimination of cast, color or creed. Late Siraj Kassam Teli’s services to the private sector, his efforts for industrial development, his endeavors for the unity of the nation in general and business and industrial community in particular and his contribution to the economic development of the country, were indeed commendable and will always be remembered.

Jubilee Life Insurance announces financial results for the first quarter

Jubilee Life Insurance Company, the largest insurance company from the private sector, announced an impressive batch of results for the financial quarter ending on 31 March 2014. The results were declared by the Board of Directors who met under the chairmanship of Mr. Kamal A. Chinoy to review the performance of the company.

The company reported a pre-tax profit of Rs295 million for the first quarter of 2014, up 45% from Rs 204 million for the same quarter in the preceding year. With after-tax profit of Rs 202 million, the earnings per share (EPS) stood atRs2.80.

Jubilee Life has further strengthened its position by registering 34% increase in net premium income over the same period of last year.

Mr. Javed Ahmed, Managing Director & CEO Jubilee Life, commented, “Our results reflect our strategy of robust business growth, together with sustainable profitability.” He also added that Jubilee Life has a strong focus on customer servicewhich is the lifeblood of our business.

Jubilee Insurance is a global brand of Aga Khan Fund for Economic Development (AKFED) that offers diverse insurance solutions (life, health and general) in the Asian and East African markets. Jubilee Life in Pakistan offers uniquely designed range of life and health insurance plans, catering to various customer segments and needs. These include retirement, child education, marriage, saving & protection, wealth accumulation, life insurance plans for women, rural insurance plans and life and health insurance solutions for the less privileged of our country.

Pakistani Business Leaders Congratulate Iftikhar Ali Malik

Iftikhar Ali Malik

The Vice Presidents of FPCCI Mr. Gulzar Firoz, Mr. Shaheen Ilyas Sarwana and Mr. Naveed Jan Baloch, Mr. Abdul Khaliq Khan have Congratulated Mr. Iftikhar Ali Malik on his re-nomination as Vice President of SAARC Chamber of Commerce for the term 2014-15. While expressing warm wishes they said the re-nomination of Mr. Iftikhar Ali Malik is recognition of his services and devotion which he extended to  business community and promotion of economic activities in SAARC region.

Central Bank reduces policy rate by 50 basis points to nine percent

Yaseen Anwar, Governor SBP

By Mohammad Nazakat Ali

(Pakistan News & Features Services)

The State Bank of Pakistan (SBP) has decided to reduce the policy rate by 50 basis points to bring it down to 9 percent with effect from June 24, 2013.

This was decided by the Central Board of Directors of the State Bank of Pakistan at its meeting held under the chairmanship of SBP Governor, Yaseen Anwar, in Karachi on June 21.

According to the Monetary Policy Decision, the SBP has decided to place a higher weight to declining inflation and low private sector credit relative to risks to the balance of payments position.

Following is the complete text of the Monetary Policy decision:

“There has been a discernible positive change in sentiments post May 2013 elections because of clarity on the political front. The change in the behavior of banks in auctions of government securities and reaction of stock market are two examples. Importantly, there has been a considerable improvement in SBP conducted surveys of consumer confidence, expected economic conditions, and inflation expectations. The absence of foreign financial inflows and high fiscal borrowings from the banking system, however, remain formidable economic challenges, especially for monetary policy. Similarly, power shortages and security conditions continue to be strong impediments to growth.”

“An almost continuous and broad based deceleration in inflation over the last year has had a favorable impact on inflation outlook – a key variable in monetary policy decisions.  In May 2013, the year-on-year CPI inflation was 5.1 percent while trimmed measure of core inflation was 6.7 percent; the lowest levels since October 2009. The average CPI inflation for FY13 is expected to be at least two percentage points below the target of 9.5 percent.”

“However, in the latest budget the government has announced an increase of 1 percentage point in the General Sales Tax (GST), from 16 percent to 17 percent, and changes in the tax structure for some goods and services. In addition, the government is considering a phase-wise upward adjustment in electricity tariff. The exact magnitude and timing of this adjustment is yet to be decided. Therefore, there is a risk that average inflation for FY14 could exceed the announced target of 8 percent for the year. However, aggregate demand in the economy is expected to remain moderate, which could have a dampening effect on inflation.”

“A reflection of the current declining trend in inflation can be seen in the muted real economic activity, especially private investment expenditures. Beset by energy shortages and law and order conditions, the GDP growth has struggled to ameliorate in the last few years and this year was no exception. The provisional estimate of GDP growth for FY13 is 3.6 percent, which is lower than the 4.3 percent target for the year. Similarly, private fixed capital formation has decreased by 1.8 percent – the fifth consecutive year of a declining trend. Although there has been an encouraging uptick in the growth of Large Scale Manufacturing (LSM) sector, 4.8 percent in April 2013, it is too early to term it as an emerging trend.”

“A declining inflation trend and below potential GDP growth make a case for further reduction in the policy rate. The argument is twofold. First, the SBP has been giving a relatively high priority to inflation in its monetary policy decisions over the last few years. Thus, continuing to do so would indicate consistency in the monetary policy stance. Second, without further reduction in the policy rate, the real interest rate – policy rate minus expected inflation – would increase due to declining inflation. High real interest rates are not helpful for supporting private investment in the economy.”

“However, as indicated in the last monetary policy decision, the current balance of payments position and a structural imbalance in fiscal accounts suggest vigilance. The stress in the balance of payments position was a prime consideration in maintaining the policy rate at 9.5 percent in the last two monetary policy decisions. The basic argument has been that the return on rupee denominated assets needs to be sufficiently attractive to discourage speculative demand for dollars.”

“There is no significant revision in the assessment of the balance of payments position since the last monetary policy decision. The external current account deficit is expected to remain manageable, around 1 percent of GDP for FY13, signifying very low risk from this source for the external accounts. The real challenge continues to emanate from the lack of financial inflows. Let alone finance the small current account deficit, there has been a cumulative net capital and financial outflow of $143 million during the first eleven months of the current fiscal year. Add to this the on-going payments of IMF loans and it becomes clear that the pressure on foreign exchange reserves has not abated. As of 14th June 2013, SBP’s foreign exchange reserves stand at $6.2 billion.”

“There are two developments, however, that are worth highlighting. First, there has been a noticeable change in sentiments, as highlighted above, that can potentially have a favorable influence on private financial inflows. Other than the overall economic outlook, investment decisions do take into account the relative political certainty that determines the continuation of economic policies for some time in the future. Second, declining inflation has increased the relative real return on rupee denominated assets. This could provide some room for downward adjustment in nominal returns to cater to broad macroeconomic considerations despite external account concerns.”

“In this context, a lot depends on the fiscal outlook. The fiscal deficit for FY13 has been estimated to reach 8.8 percent of GDP, which is considerably higher than earlier projections. The source of deviation is structural and well known – low tax revenues due to absence of meaningful tax reforms and continuation of untargeted subsidies without comprehensively addressing the energy sector problems. For FY14, the federal government has announced a provisional estimate of 6.3 percent of GDP. “

“From the monetary policy perspective, it is the financing pressure of the fiscal position that is the source of stress. Due to almost zero net external financing in FY13, the burden of financing the sizeable deficit of 8.8 percent has fallen disproportionately on domestic sources, in particular the banking system. During 1st July – 7th June, FY13, fiscal borrowings from the banking system for budgetary support were Rs1230 billion, including Rs413 billion from the SBP. The high level of these borrowings has kept an upward pressure on the system’s liquidity and thus short term market interest rates and is restraining growth in the private sector credit.”

“If the economy is to reap the benefits of evolving positive sentiments and lure the domestic as well as foreign investors then implementation of a reform oriented and credible medium term fiscal outlook is essential. On its part, the Central Board of Directors of SBP has decided to place a higher weight to declining inflation and low private sector credit relative to risks to the balance of payments position. Therefore, the policy rate is being reduced by 50 basis points, to 9 percent, with effect from 24th June 2013.”

Pakistan Deep Water Container Port to create employment opportunities young workforce

By Abdul Qadir Qureshi

(Pakistan News & Features Services)

The Federal Minister for Ports and Shipping, Senator Kamran Michael, visited the Karachi Port Trust (KPT) where he took round various maritime installations and the ongoing development projects. He was accompanied by the KPT Chairman and other high port officials. 

The Minister visited all the operational berths including the three oil piers and during his three-hour visit and he also inspected the newly laid out breakwaters that will streamline the channels of Karachi Port. 

He visited the deepened length of the approach channel while the Chairman explained the desirability of deeper access for berthing of large post-panamax carriers.

During inspection of  under construction Pakistan Deep Water Container Port, the Minister directed the KPT to bring all the issues related to delay caused in its completion so that action could be taken at the appropriate forum for their resolution. 

He said that PDWCP will create much needed employment opportunities for the young workforce of Pakistan.

While having an appraisal of current state of operations at Karachi Port the Minister raised many pertinent queries about various operational practices. 

He conveyed the vision of the present government and asked the officers  to implement it transparently to ensure greater performance  efficiency and made the same a role model for others to follow.  

He stressed on having strategic priorities for the Port to bring them in an alignment with international maritime requirements. He pointed out that Karachi Port, being the largest recipient of Pakistan’s national maritime trade, is expected to perform the assigned tasks  with diligence and devotion.

On the occasion he listened to the issues raised by port workforce and issued on the spot orders for solving them. He promised to look into their long term problems and assured their representatives that he will try utmost to find solution to them. 

He said he will  visit Karachi Port regularly and monitor its activities personally. He directed the management to provide his detail appraisal of all port activities to enable him to take appropriate steps thereof.

KCCI assures total support and cooperation to SSUET

By Abdul Qadir Qureshi

(Pakistan News & Features Services)

The elected representatives of the business community at the Karachi Chamber of Commerce and Industry (KCCI) have expressed the hope that dwindled economy and battered industrial sector will witness a new surge during the next five years. 

They made the assessment on the basis of formation of new government to be formed by Mian Mohammad Nawaz Sharif which, they noted, has dedicated industrialists, businessmen and experts in the related fields in its fold who are capable to deliver which the previous government could not. 

Their remarks in this regard came in a meeting with Engr Mohammad Adil Usman, Chancellor of Sir Syed University of Engineering and Technology (SSUET), Karachi, held at the university campus on May 15 The 21-member delegation of KCCI, led by its President, Mohammed Haroon Aagar, visited the university and discussed various matters to further strengthen the existing coordination and relationship with SSUET. 

The KCCI chief pointed out that no expansion occurred in the industrial sector during the last 5 years and this sector has much hopes on the new government which is going to be formed with an industry-related background. He offered large scale internship opportunities for the SSUET students, foreseeing the rapid industrial growth that is likely to take place in the coming years. 

He specially referred to the ongoing energy crisis and said that with other sources of energy generation potential also existed to tap solar energy prospects for use in the industries. He also offered to extend sponsorships for the SSUET students, wherever required. 

In his remarks on the occasion the SSUET Chancellor, Engr Adil Usman, thanked the delegation for coming over and described it highly encouraging with fruitful discussion. He said while foreseeing the future development prospects, there is imperative need to encourage the students studying engineering in this university which is being run with its self-generated resources to provide best possible knowledge to future builders of the nation. 

The Chancellor said that the university does not receive any government grant, still no student is allowed to give his studies just for financial implications and all requirements of poor students are fulfilled by this university which has been awarded the highest “W4” category by Higher Education Commission. 

He suggested the KCCI to establish a fund for poor students of this university which will be utilized under the criteria to be worked out by KCCI itself. He also referred to the SSUET’s Research and Development programs and pointed out that world over such programs are supported by the industry. He said that R&D programs at universities ultimately prove beneficial for the industry. 

He informed the KCCI officials that the university can send talented students abroad if a fund is created by KCCI for this purpose. Engr Adil Usman also referred to the bio-plant designed with SSUET’s cooperation and emphasized that it needs further development to launch it for meeting energy needs. 

He appreciated KCCI’s offer for 6-month IT training for the university students and said the University at its end can offer solutions for IT related problems if these come from the Chamber. 

On the occasion, Shamim Firpo, Senior Vice-President KCCI, appreciated SSUET’s participation in the Chamber’s ‘My Karachi; exhibition held at Expo Center last year and said that the projects displayed on that occasion drew big public liking. 

He said this year the KCCI is organizing the exhibition in July and will earmark an exclusive education pavilion to showcasing the projects of engineering students. He said such programs will help enhance greater SSUET-industry collaboration. 

He also referred to the menace of energy crisis and observed that if the new government surmounts this menace, the industry will grow and in turn new job opportunities will create and simultaneously ongoing law and order come under control. 

He assured KCCI's total support and cooperation for the SSUET along with other members of the visiting delegation who appreciated the presentation given on the occasion by Registrar SSUET Shah Mahmood Hussain Syed and particularly referred to the quantum of scholarships awarded and the financial assistance give to needy students. 

First Meeting of Pakistan-Korea Business Council of FPCCI held in Karachi

Mr Sohail Nisar, Chairman Pak-Korea Business Council of FPCCI convened the First Meeting of the Council which was graced by Mr. Chang-Hee Lee, Consul General of Republic of Korea in Karachi.

Haji Fazal Kadir Sheerani, President FPCCI in his welcome address emphasized the need for more interaction between the Business Communities of two countries. He also stressed upon that opportunities for joint ventures that exist in many fields including alternate energy, agriculture, engineering sectors, food processing, technical and technological collaborations etc. He also suggested frequent exchange of trade delegations, promotion of new products by organizing exhibitions, conducting joint study to find new products for bilateral trade, and to remove hurdles that impede the bilateral trade between Pakistan and South Korea.

Mr Sohail Nisar, Chairman Pak-Korea Business Council mentioned that Korea has demand for at least 20,000 tons of mango, which is currently being met through imports from a few countries. But the delicious, aromatic and different varieties of mangoes grown in Pakistan have no parallel. He said despite a 30% duty on mango imports, the Pakistani fruit could have a good demand in the Korean market. He, however, called for swift processing of mango at the existing facilities.

Members of the Council informed the Consul General about the difficulties being faced by them in the process of obtaining visas, despite the fact that they have visited Korea several times for business purpose. The President FPCCI suggested establishing a special window at the Consulate General of Korea in Karachi to issue visa to the genuine businessmen on the recommendation of FPCCI.

The Consul General was also informed that Pakistan-Korea JBC meeting is due for last six years and sought his cooperation in holding it at the earliest so that the two sides could take a fresh look at the opportunities and challenges before them in order to achieve comprehensive development and foster greater collaboration.

Mr. Chang-Hee Lee, Consul General of Republic of Korea in Karachi thanked the FPCCI for inviting him. He informed that Korea is the 12^th largest economy in the world and 4^th largest in Asia. He said Pakistan and South Korea have a lot in common, be it socio politics or cultural aspects and enjoy a much deeply enrooted friendly and mutually co-operative relations since more than six decade. He said it was encouraging for him to witness the presence of big Korean Corporations in Pakistan, like Samsung, LG, Lotte, Ssangyong, POSCO, Daewoo and establishing relationship with Pakistani business community. Mr. Chang-Hee Lee said the problems faced by Pakistani businessmen are regrettable and he would take up the matter with the Authority in Korea for rectification.

NBP Embarks to Establish the Largest Data Center

In line with the NBP President’s vision of technology at the core of banking, National Bank of Pakistan inked its Data Center Project on turnkey basis with Getronics (AGCN) Pakistan. The project shall be an International Standards Certified Tier III Data Center Project.  This Data Center facility will serve more than 1290 online branches for Centralized Banking Applications; to ensure 24x7x365 (Always Online) IT services across the bank and all its applications including a 24 hours IT services monitoring & operations center.  

The Project Head NBP Mr. Qasim Y. Khan (Vice President/Wing Head IT Strategic Planning Wing) and country manager Getronics Pakistan Mr. Faisal Rao signed the contract in the presence of the President, National Bank of Pakistan Dr. Asif A. Brohi and senior executives of the bank.  Mr. Mahmood Siddique (Chief Information Officer) and Mr. Yasir Ansari (Deputy CIO) acknowledged the project to be a success for the future NBP services & increase customer satisfaction through highest availability and resiliency. This is one of its kind projects in the financial industry of Pakistan with latest equipment and technology and an IT milestone for the largest commercial bank of Pakistan.

Pak Railways promote 500 ticket examiners

By Abdul Qadir Qureshi
(Pakistan News & Features Services)

The General Manager Pakistan Railways, Junaid Qureshi, has promoted over 500 Special Ticket Examiners, Special Ticket Examiner Group Inspectors and Divisional Inspectors to the next grade.

He signed the summary of promotion of the Railways employees on March 1 and the notification in this regard was also issued later in the day, sending a wave of delight among the staff. 

As per notification the Grade 11 Special Ticket Examiners have been promoted to Grade 14, Grade 12 Special Ticket Examiners Group Inspectors to Grade 15 and Grade 14 Divisional Inspectors to Grade 16. 

It may be mentioned here that a Special Ticket Examiner Mohammed Suleman had moved to court a couple of years ago seeking promotions which was allowed by the court with the order for carrying out the required promotions. 

However, the implementation of the court order was delayed because of ongoing financial crisis in the railway which led to protests and strike by railway employees. 

Meanwhile the leaders of Railway’s Special Ticket Examiners Group Association, Shahabuddin Lakho, Haji Naimuddin Abbasi, Abdul Majeed Abbasi, Syed Asif Ali Shah and Al-haj Liaquat Ali Khilji have expressed their gratitude to the GM Railway, Junaid Qureshi, and other senior railway officials for issuance of notification of their promotions having described the issuance of notification the victory of righteousness.

Blair suggests study for education pattern suiting Pakistan

By Abdul Qadir Qureshi
(Pakistan News & Features Services)

Former British Prime Minister Tony Blair has suggested that a study be conducted to evaluate the type of education that would be effectively suited for Pakistan and an urgent action be taken to implement it.

He made the suggestion in a meeting with Arif Ali Shah Bukhari, Chancellor of KASBIT and Chairman of KASB Foundation, on the sidelines of the recently held YPO-WPO Global Leadership Conference in Istanbul, Turkey. 

Arif Bukhari, who attended the conference as Member MENA Regional Board of YPO-WPO, revealed that in the meeting with Tony Blair the geo-Political issues of Pakistan also came under discussion and he explained to the former British Prime Minister that there was great potential for improvement and modernization in Pakistan for which the way forward was through the prioritized provision of education to its masses through which the evils of illiteracy and violence would gradually be overcome. 

The former British Prime Minister agreed with the viewpoints of the KASBIT Chancellor having remarked there was also an urgent need to develop direct people to people contact for which finding of right partners between Pakistan and Britain was must to achieve real and sustainable growth. 

He also stated that the world’s growth and prosperity had always come through the private sector and that the government’s work was to give the right policies and to create conducive environments for educational growth. 

Tony Blair also informed Arif Bukhari that the British High Commission was trying its best to implement several programs that would directly benefit the people of Pakistan for which he look forward to the support of Pakistani business community to play a positive role for the realization of these programs.