Several Textile Mills report losses in 2016


J. Choudhry/ISLAMABAD: Several textile mills in Pakistan have reported losses in 2016 because of a variety of reasons, including slump in exports, decline in value of textile products and loadshedding of gas and electricity.

Here are the textile mills that have reported losses for nine months, July-Sept 2016 period of this calendar year _ Service Fabrics, Sargodha Spinning, Ravi Textile, Mian Textile, Crescent Textile, Dewan Textile, Dewan Salman, Al-Abid Silk Mills, Mubarak Textile, Babri Cotton, Ghazi Fabrics, Sally Textile, Ishtiaq Textile, Taj Textile, Safa Textile, Ishaq Textile, Pervez Ahmed, DS Industries.


Following textile mills have reported losses in first six months of 2016 (Jan-June period)

Ayesha Textile, Colony Textile, Al-Qadir Textile, Ali Asghar Textile, Redco Textile, Glamour Textile, ICC Textile, DM Textile, Ruby Textile, Mohammad Farooq, Asim Textile, AJ Textile, Kohat Textile, Saif Textile, Hamid Textile, Saritow Spinning, Quetta Textile, Crescent Cotton, NP Spinning, etc

Quetta Textile has reported the highest loss than other mills _ 1.7 billion rupees in six months of 2016, closely followed by 1.5 billion rupees loss reported by Amtex Textile.

However, Nishat Chunia reported the highest pre-tax profit, Rs 3.26 billion, followed by Kohinoor Textile _ Rs 2.57 billion and Sapphire Textile that reported Rs 2.4 billion in six months.


About 53 textile mills are listed at Pakistan Stock Exchange out of which more than 50% have reported losses and rest have shown better profit in 2016.

Here is link to see financial results of the textile and other companies listed at Pakistan Stock Exchange _

Textile exports show 6% decline in first three months of the financial year 2016-17. Here is data


In the month of Sept 2016, textile exports showed further decline that is evident from this data of the Pakistan Bureau of Statistics.


APTMA seeks govt help to overcome crisis


The All Pakistan Textile Mills Association (APTMA) Chairman Aamir Fayyaz has urged the Prime Minister Nawaz Sharif to announce the Textile Industry Revival Package immediately to increase exports, create jobs and attract investment in the country.

The APTMA members were hoping for the announcement of a much-deliberated revival package, which included removal of incidence of duties on cotton import, duty free import of man-made fibres not manufactured locally, reduction in cost of doing business, drawback of local taxes and levies, eligibility of Long Term Finance Facility for indirect support, refund on packing materials, and lifting of moratorium on new gas and Regasified Liquefied Natural Gas (RLNG) connections, he said.

Aamir Fayyaz said that energy is a major component of the cost of production and its availability on regionally competitive rate is imperative for the export-oriented textile industry. Therefore, the government should notify the NEPRA determined multi-year tariff without surcharges at a tariff of 7-cent per kilowatt hour besides provision of RLNG and system gas at $6/MMBTU to the five exporting sectors of industry.

He said a stable macro-economic situation of the country is highly appreciable and the credit goes to the government. Now, a micro-economic stability will strengthen various segments of economy, especially the textile industry that is looking for a growth-led export policy of the government, he added. Aamir said the revival package should be made public without delay since the government and the textile industry representatives are on the same page regarding the measures to strengthen textile industry to ensure viability in the backward and forward linkages.


Pakistan Stock Exchange sheds tears, loses 935 points in 2 days


Pakistan Stock Exchange has lost 935 points in two days amid growing tug of war between government and PTI ahead of Nov 2 lockdown programme against corruption of rulers. Yesterday (Oct 27) the PSX lost 539 points and today the market further dropped 396 points till 11am.


A few days ago, the stock market suddenly gained about 600 points amid tensed political situation in the country, but during last two days the Pakistan Stock Exchange is continuously shedding value and worth because of arrests, siege of PTI workers in Islamabad, sealing of Lal Haveli in Rawalpindi.

In two days the PSX has lost more than 400 billion rupees market capitalisation just because of surging political tension.

Pakistan Tehrik-e-Insaf is seeking accountability of Prime Minister, his family members and others named in Panama Leaks that, in other words, is internationally certified corruption, but the ruling party, PML(N) is least interested in accountability and same is policy of state institutions that ultimately led to chaos.

Dollar-Rupee exchange rate has also crossed 106 rupees this morning as all are looking towards ongoing political ‘pakkar-dakkar’


Let’s us see who wins _ corruption or accountability.

National Bank reports Rs 226 billion record increase in its deposits, profit too surges


Harry Javed/ISLAMABAD: National Bank of Pakistan today reported massive increase of 226 billion rupees in its deposits by Sept 2016. The total deposits of the bank have mounted to 1.417 trillion rupees by Sept 2016, from 1.191 trillion rupees in Sept 2015, showing a record increase of 226 billion rupees.

During this period, a healthy balance sheet growth has also been recorded YoY. Compared to Rs. 1,541 billion as of September 30, 2015, the balance sheet has increased by 19% to Rs. 1,829 billion. Gross advances of the bank have increased by 7% to Rs. 737 billion compared to Rs. 692 billion as of December 2015.

Aitemaad Islamic Banking operations of the bank achieved commendable growth during the year as the same has increased to 118 branches from 79 in December 2015 with 80% YoY growth in deposits to Rs. 19.2 billion.

This was disclosed in the meeting of the Board of Directors (BoD) of National Bank of Pakistan (bank) held on October 27, 2016 at Bank’s Head Office in Karachi in which the BoD approved the financial statements of the bank for the nine months period ended September 30, 2016.

Bank’s after-tax profit for the nine months period increased by 11% to Rs. 13.4billion compared to Rs. 12.1 billion for the corresponding nine months of 2015. This translates into earnings per share of Rs.6.3 i.e. 11% up against Rs. 5.7 for the comparative period last year. Pre-tax and after-tax return on equity were 26.4%, and 15.5% (September2015: 26.2% &14.5%) respectively; whereas the pre-tax and after tax return on assets are 1.7% and 1.0% respectively.

Despite a continued reduction in the discount rate during recent quarters, bank’s net interest income increased by 4.3% YoY to Rs. 39.3 billion against Rs. 37.6 billion for nine months of 2015.Specific provision charge for the period was Rs. 1.9 billion, 76% lower than Rs. 8.2 billion for the corresponding nine month period of 2015. This depicts an improvement in the assets quality of the bank. During the period, the bank earned a fee/commission income of Rs. 9.96 billion being 20.4% up against Rs. 8.3 billion for the comparative nine months period of 2015.

With “AAA” credit rating, the Bank is a driving force in retail banking, given its large distribution network. Product and service initiatives have also been introduced by the bank to boost SME business, and to adopt alternative delivery channels to broaden customer reach. Bank’s ATM network that consisted of 374 machines in December 2014 has now increased to 1,188 machines;and is being further expanded.

Parrot exposes man’s flirt with housemaid


Corporate Ambassador/DUBAI: A man in Kuwait almost ended up going to jail after the family parrot exposed his alleged affair with the housemaid as it mimicked flirtatious exchange of words between them in front of his wife.

The alleged affair came to light after the parrot started to repeat flirty phrases in front of his wife, the Arab Times reported.

The wife then lodged a complaint with officers at Hawally police station in Kuwait and accused the husband of cheating, noting she had been suspecting the man for a while, the report said. She said the husband was surprised when he saw her returning from the office before time and became nervous.

However, the prosecution officer said the case could not be regarded as crime based on lack of credible evidence and could not be admitted in court, as it could not be proved that the bird had not heard the intimate conversation on TV or the radio.

Over 2300 Pakistanis languishing in jails in UAE, Saudi Arabia


Corporate Ambassador/ISLAMABAD: About 2,384 Pakistanis are languishing in various jails in Saudi Arabia and the United Arab Emirates (UAE) in minor and major offences.

This was pointed out in a meeting of the Standing Committee of the National Assembly on Overseas Pakistanis and Human Resource Development chaired by Mir Aamer Ali Khan Magsi. The committee was informed that 1,834 Pakistanis are in jails in Saudi Arabia, while 550  are languishing  in UAE jails.

The committee ordered the authorities concerned to make efforts for the release of the Pakistanis detained in minor offences and provide counselor access to those jailed for major crimes.

The issue of behaviour of the Kafeels and employers towards the Pakistanis in both countries was also discussed. The committee was informed that the attitude of the majority of employers and owners of big companies was good and the workers, including Pakistanis, were satisfied with their work. However, there were some issues regarding the direct employment visas that caused problems for Pakistani workers.

The committee considered the issue of an apartment building in Islamabad and expressed concern over its fate due to litigation. It was informed that the Overseas Pakistanis Foundation had sent a reference to the Capital Development Authority for taking necessary action regarding the building.


IMF chief says Pakistan out of economic crisis now


CorporateAmbassador/ISLAMABAD _ Managing Director of the International Monetary Fund Christine Lagarde in a meeting with Prime Minister Nawaz Sharif in Islamabad asserted that Pakistan is now “certainly out of economic crisis”.

According to PM Office statement issued Oct 24, 2016, in the first such visit by an IMF head in several years, Lagarde lauded the prime minister on successfully completing the IMF programme and achieving macroeconomic stability during a short period of time.

Lagarde’s two-day visit comes two months after the IMF cleared payment to Pakistan of a final $102 million tranche in a $6.4 billion three-year programme.

“It is a fantastic step in your journey that you have achieved a better and solid economic position in a brief period of two years,” she said, as quoted by the statement.

Completion of the IMF programme reflects very positively on Pakistan, she said.

Economic growth up, inflation down

The IMF MD said that economic growth has gradually increased, and the fiscal deficit has reduced while inflation has continuously declined in Pakistan. She also appreciated the country’s strengthened social safety nets and tax policy and administration reforms, according to PM Office.

In an oped penned by Lagarde for The News, the IMF MD focuses on four key priorities for Pakistan, including greater economic resilience, higher growth, quality of growth and belief in the global system.

The IMF officially endorses Pakistan’s economic recovery but has urged the country to continue key structural reforms if it wants to consolidate these gains.

The IMF says Pakistan’s economic recovery has gradually strengthened and short-term vulnerabilities have further receded on the back of improved macroeconomic stability and progress on structural reforms.

It, however, maintains that the government should prioritise efforts to complete energy sector reforms.

Appreciating IMF’s assistance for Pakistan’s economic recovery and macroeconomic stability, Prime Minister Nawaz Sharif said that the present government has achieved economic stability by pursuing a comprehensive reforms agenda.

“We are successfully delivering on the major challenges of terrorism, economy and power shortages that we inherited from the previous governments,” he said.

“We have dismantled the terrorists’ networks and even presently 200,000 troops are deployed in the northern part of our country to completely eliminate the menace of terrorism from our country. More than 24,000 precious human lives have been lost, about 50,000 wounded while our economy suffered a loss of $100 billion in this war against terrorism,” the prime minister said.

Exchange or get refund for Samsung Note7 in Pakistan


Corporate Ambassador/ISLAMABAD: Anyone possessing the fire-n-smoke crazy Samsung Galaxy Note 7 smartphone in Pakistan can now get it exchanged or obtain a refund inside the country from Samsung. The Samsung has been struggling to contain a snowballing safety crisis as it recalls Note 7 smartphones with exploding batteries that have been catching fire. Although Samsung did not launch the Note 7 in Pakistan, it has decided to cater to customers who acquired the smartphones from abroad or from local vendors.


In addition to its request to customers to back up their data and switch off their Note 7 smartphones, Samsung has given Pakistani customers the following options to get rid of the smartphone:

Get a full refund

Customers possessing a proof purchase for their Galaxy Note 7 will be refunded the full amount mentioned on the receipt. In case a customer has no proof of purchase, they will be refunded a fixed amount of $817.

Exchange with S7 edge

Note 7 owners can also opt to exchange their smartphone, with Samsung offering its flagship Galaxy S7 edge and a refund of Rs10,000 in return.

The company has asked customers who pre-booked the phone to “contact the relevant retailers to get a refund”.

PR disaster

The South Korean conglomerate called a halt to worldwide sales and exchanges of the troubled handset, as the federal US consumer regulator issued an alarming warning of the possible dangers the device posed to its owners, their families and homes.

The announcement came a little over a month after the world’s largest smartphone maker announced a recall of 2.5 million Note 7s in 10 markets following complaints that its lithium-ion battery exploded while charging.

The unprecedented move has turned into a PR disaster for the company, which prides itself on innovation and quality, and the situation only worsened when reports emerged a week ago of replacement phones also catching fire.


Dr Ashfaque, Dr Pasha, Dr Salman write open letter to IMF “Wrong sides of the Picture”

Dr. Ashfaque H. Khan, Dr. Hafiz A. Pasha and Dr. Salman Shah, who have served on key posts in Finance Ministry and Planning Division have written an open letter to the IMF, exposing wrong picture presented by the Dar-led economic team about Pakistan’s economy. Dr Khan send this article to the Editor of Corporate Ambassador, Javed Mahmood today.


The three year program under the IMF’s Extended Fund Facility (EFF), has now come to an end. Pakistan has received $6.1 billion loan from the IMF under this program. During the tenure of the program, Pakistan was required to undertake wide – ranging structural reforms and implement the type of macroeconomic policy that would restore macroeconomic stability, gradually promote economic growth and build foreign exchange reserves to bolster external buffers.

After the completion of the twelfth and the final Review, the IMF Staff Mission Report has declared ‘victory’ and stated that “the Fund Supported Program has helped the country restore macroeconomic stability, reduce vulnerabilities and make progress in tackling key structural challenges. Economic growth has gradually increased and inflation has declined. External buffers have been bolstered, financial sector resilience has been reinforced, and the fiscal deficit has been reduced while social safety nets have been strengthened”.

On the reform side, the Report stated that “tax policy and administration reforms allowed for further revenue mobilization.Steps have been taken to strengthen the State Bank of Pakistan’s autonomy. Energy sector reform allowed a reduction of power outages, energy subsidies, and accumulation of power sector arrears. A country – wide strategy to improve the business climate was adopted”.

The Staff Report contains the views of the IMF on the “success” of the program. We, the three independent economists, through this open letter would like to present the other side of the picture. In particular, we identify the extent of the success, how these “successes” have been achieved and express our disappointment with the failure to implement reforms that are critical for achieving higher economic growth. Needless to mention, the three authors of this open letter have all dealt in the past with the IMF in senior management capacity at the ministry of finance, either as Federal Ministers or Advisor.

Firstly, building foreign exchange reserves to bolster the external buffer was the main pillar of the hurriedly put together IMF Program. The idea was to build reserves and repay the then IMF loan on time. That is why many independent economists including the ones who remained associated with the IMF for a long time termed the program as ‘Self-Serving Program’.

Such an objective of the program forced the government to borrow extensively to build foreign exchange reserves and in the process accumulate net external debt of over $12 billion during the program period. Incidentally, Pakistan added exactly the same amount to its foreign exchange reserves, that is, from $6 billion in end-June 2013 to $18.0 billion in end-June 2016. The above facts clearly suggest that we improved the external buffer entirely through adding external debt. Isn’t it simply postponing the current problem of insolvency to a future date?

Secondly, in a three year program, the IMF has extended sixteen waivers. Perhaps never in the history of the IMF did Pakistan receive such a large number of waivers. This diluted the purpose of the program and also reflected on the lack of emphasis towards implementing and achieving the stated goals of the program.

Sadly, the IMF Staff Mission has selectively highlighted the improvement in some economic indicators from 2012-13 to 2015-16. This includes rising economic growth, falling rate of inflation, rising tax-to-GDP ratio,  higher spending under BISP and private sector credit and falling subsidies as percentage of GDP.

The rate of economic growth achieved in the last three years remains contentious. The Pakistan Bureau of Statistics (PBS) has estimated the GDP growth rate as 4 percent or above each year, reaching 4.7 percent in 2015-16. The authors have presented contrary evidence that the growth rate has been exaggerated each year, and it has ranged between 3.1 to 3.7 percent during the program periods. The Data Quality Assessment Framework (DQAF) of the IMF should have been used to check the reliability of the national income estimates.

We would like to quote the recent statement of the Managing Director of the IMF as posted on September 1, 2016 by iMF direct. In her words “The longer demand weakness lasts, the more it threatens to harm long-term growth as firms reduce production capacity and unemployed workers are leaving the labor force and critical skills are eroding. Weak demand also depresses trade, which adds to disappointing productivity growth”.

This statement clearly depicts the current state of economic growth and unemployment in Pakistan in terms of the social costs of the excessive focus on stabilization policy. The persistence of lower economic growth has failed to create enough jobs. People in general and youth in particular, are finding difficulties to get jobs. People remaining unemployed for a longer duration are becoming unemployable, with all its social and economic consequences. Not only that the unemployment rate has surged to a 13 years high at over 8.0 percent (including the ‘discouraged worker’ effect), youth unemployment rate has also increased to over 11 percent in 2014-15. Furthermore, between 2012-13 and 2014-15, the annual number of entrants into the labour force has been approximately 650,000 as against 1.3 million during 2008-13.

A particularly worrying feature of the current employment situation is the extremely high unemployment rate of 20 percent of workers with either graduate or post graduate degrees. There are 2.4 million educated workers with bad employment prospects. This is the unfortunate outcomeof the IMF Program

On the size of the fiscal deficit, the IMF Report claims that this has been reduced from 8.5 percent to 4.6 percent of the GDP. A number of steps have been taken to report smaller deficits. For example, holding back refunds and forcing  commercial entities to pay taxes in advance to jack up revenue, privatization proceeds and foreign grants treated as non-tax revenue to inflate overall revenue rather than treating them as financing items, engaging in quasi-fiscal operations outside the budget, allowing for large statistical discrepancy each year (cumulatively Rs. 600 billion in three years) to show lower expenditures, exaggerating the size of the Provincial cash surplus, retaining earmarked revenues in the Federal consolidated Fund and building up large contingent liabilities (over Rs. 1400 billion of power sector circular debt, accumulation of debt in commodity financing and pending tax refunds). The IMF staff has either been blissfully unaware of or has condoned this creative accounting. Adjusting for these practices implies a fiscal deficit each year in the range of 7.0 to 8.0 percent of the GDP.

Other areas, where serious distortions exist, are: the estimates of the GDP deflator; investment and saving rates and rate of inflation, especially for poor households. A case ought to have been made for complete operational autonomy of the PBS.

Yet another “success” of the program as stated by the IMF Staff Mission is the sharp reduction in inflation rate. It has declined from 7.4 percent in 2012-13 to 2.9 percent in 2015-16. Does this decline owe to the ‘prudent’ fiscal and monetary policy pursued during the program period? The answer appears to be in the negative. The international oil and commodity prices started collapsing since June 2014. Such a collapse in the oil and commodities prices led to a worldwide decline in inflation, including in Pakistan. Furthermore, as stated above, the pursuance of stabilization policy for a prolonged period weakened the domestic demand, resulting into deceleration of prices. Thus, the sharp decline in inflation during the program period owes to the weakening of domestic demand, as well as a collapse in the international prices of oil and commodities and not to the prudent use of monetary and fiscal policy. In fact, when inflation rate was rapidly on the decline, the SBP was pursing an easy monetary policy.

The quarterly reviews have ignored the deterioration in key economic indicators. They failed to discuss big decline in exports – to – GDP ratio, stagnation in the overall and private investment – to – GDP ratio, fall in FDI, rise in external debt and public debt – to – GDP ratios, fall in total PRSP pro-poor expenditure to GDP and very importantly, a rise in the rate of unemployment especially among young, educated, and female workforce. Only 750,000 jobs were created annually in 2013-14 and 2014-15 as against 1.1 million jobs annually earlier.

As stated above, Pakistan was asked to implement a wide-ranging reforms under the IMF Program. What has been the performance on the reform side?

Power Sector Reforms

The glaring failure of the Fund program is in the implementation of power sector reforms. The 12th Review Report declares victory primarily by demonstrating that the subsidy to the sector has fallen massively from 2percent of the GDP in 2012-13 to only 0.6percent of the GDP in 2015-16.

How has this been achieved? The answer is not by any major improvements in efficiency through big reduction in losses. Instead, the policy has been to raise the power tariffs to generate more revenues and thereby reduce the need for subsidies. From 2012-13 to 2015-16, the average electricity tariff (including surcharges) has been enhanced by 40percent, leading to extra revenues of distribution companies of over Rs 250 billion. The tariffs have been increased at the time when the fuel costs have fallen by over 49 percent.

On top of this, contingent liabilities have increased exponentially in the sector. Today, the circular debt of the sector stands at almost Rs 630 billion, over 2percent of the GDP. Sooner or later, this debt will have to be retired, as happened in 2012-13, if a breakdown is to be avoided in supplies due to liquidity problems in the sector.

IMF also claims on behalf of the Government, that power load-shedding has been substantially reduced, especially in industry. Evidence to the contrary is the large continuing demand-supply gap according to NEPRA, and the fact that electricity consumption per industrial consumer has fallen in nine out of ten distribution companies, in comparison to the level achieved in the pre-load-shedding years.

Tax Reforms

The IMF Twelfth Review has highlighted, as one of the key successes of the Program, the over two percent points increase in the tax-to-GDP ratio. Much of the improvement has come in 2015-16. How has this been achieved? The main contribution is actually from enhancement in effective tax rates and not by broadening of the various tax bases. The tax structure has become more regressive and created more distortions in economic activity. Furthermore, various levies which used to be the part of non-tax revenues prior to the IMF Program were renamed as ‘other taxes’ and added to the tax revenue collected by the FBR to arrive at ‘new’ tax – to – GDP ratio. Such a practice has made the ‘new tax – to – GDP ratio non-comparable with the pre-IMF Program period.

The biggest failure is in lack of development of the direct tax system. The elite continues to enjoy wide ranging tax exemptions and concessions like the virtually no or low taxation of global income, profits of private companies, agricultural income and unearned capital incomes. The IMF clearly prefers not to antagonize the ruling elite through its reform agenda.

Improvement in Living Standards

Contrary to the claims by the IMF, living standards have probably fallen in Pakistan during the tenure of the Program. A number of reforms undertaken have contributed to rising unemployment and poverty.

The anti-poor actions include, firstly, the rise in input costs of fertilizer and electricity in agriculture due to hike in power and gas tariffs and additional taxation in the form of the GIDC. The result is that food prices have risen faster than the overall CPI and wages of unskilled workers. Today, Pakistan has the extremely serious problem of malnutrition. In the 2016 ranking of the Global Hunger Index, Pakistan has the 11th lowest position, even below Bangladesh, out of 118 countries. The non-implementation of the PMs agricultural package of September 2015 under the IMF pressure has contributed to the recent debacle in the sector.

Secondly, the primary adjustment mechanism for achieving the fiscal deficit targets in the Program has been large cut backs of up to 30percent in budgeted development spending by the Federal and Provincial governments. In 2015-16 alone these cuts have implied less employment generation of almost 300,000 jobs.Thirdly, hikes in indirect taxes have affected the cost of living adversely. This includes the levy of minimum import tariffs on basic food and other items and jump in GST rates on petroleum products, especially HSD oil.Fourthly, the decline in exports has contributed to loss of employment in labor-intensive sectors like SMEs and textiles. Consequently, as highlighted earlier, the underlying unemployment rate has gone beyond 8 percent. Fifthly, social indicators have shown only minor improvement in three years. This is due particularly to the pressure on Provincial governments to spend less on social and other sectors so as to generate large cash surpluses.

Anti-Export Bias

According to the original Program projections, exports were expected to show a steady annual growth rate of 8 percent and reach $30 billion by 2015-16. Instead, they have been falling since 2012-13 to below $22 billion last year, a short fall of over 23percent. This is perhaps one of the single most important failures of the Program. It has adversely impacted on growth and employment in the country and frustrated the achievement of greater self-reliance.

How did the Program reinforce the anti-export bias? The record level of external borrowings during the last three years has led to a form of ‘Dutch Disease’. Larger reserves, based completely on external borrowing, have created artificial stability in the value of the rupee, thereby reducing competitiveness. Enhancement of electricity tariffs by over 40percent and gas price to industry by 64percent, further affected competitiveness. In an effort to meet the Program revenue targets, FBR has held back over Rs 200 billion of refunds, leading to liquidity problems for exporters. Further, levy of a minimum import duty on raw materials and intermediate goods has added to costs.

Today, the decline in ability to service external debt obligations, including those to the IMF, is clearly demonstrated by the phenomenal increase in the external debt to exports ratio. It was 193percent in 2012-13 and has risen to 266percent by the end of 2015-16. It is likely to continue rising and go beyond 300percent by 2017-18. There is no other option now in the post-Program scenario but to present a strong export incentive package, including significant depreciation of the Rupee.

External Financing Requirement

The original Program projections were that external financing requirements, consisting of external debt amortization and the current account deficit, would reach $9.2 billion by 2016-17 and fall to $8 billion in 2017-18. However, following the much larger build up of external debt, the latest estimates of the financing requirement in the 12th Review is $ 10.9 billion in 2016-17, rising to $13.2 billion in 2017-18.

However, these estimates are based on significant positive growth in remittances and exports and a big jump in FDI. This is highly unlikely given the current trends. A more realistic estimate of external financing requirement is $15 billion in 2016-17 and $18 billion in 2017-18. This is more than 5percent of the GDP, which is considered the danger point. Part of this requirement will have to be met by a sizeable depletion of foreign exchange reserves. There is a high likelihood that by June 2018, reserves may fall to about half of the present level.

Where is the sustainability of our external position? Has the IMF Program reduced our vulnerabilities? Are we doomed to go back once again to the IMF? Will conditionalities next time go beyond the usual prior actions? Already, two weeks after the end of the IMF Program, Pakistan has been forced to float relatively high cost bonds externally of $1 billion. This indicates a lack of confidence in the sustainability of reserves in coming months and years.

Finally, in the immediate aftermath of the IMF Program, the economy has begun to unravel. Agricultural growth was negative last year and the prospects for the current cotton crop are not much better. Growth of the large-scale manufacturing sector has also turned negative in the last four months for which data is available. Seven out of the twelve industrial groups are showing declining output. The fall in exports continues and the trade deficit has risen sharply. Remittances are also contracting, along with a sharp reduction in FDI. FBR tax revenue growth has plummeted and large borrowing has been resorted to by the Federal Government from SBP. Development releases of funds have been relatively small and the process of implementation of CPEC infrastructure projects is very slow. Contingent liabilities have reached alarming levels and the bleeding of public sector enterprises/utilities continues. Can we still say that the reforms implemented during the tenure of the Fund Program have left the economy in a ‘sustainable position’? The answer, unfortunately, is an unambiguous no.


* The authors have worked for the Ministry of Finance and dealt with the IMF at the highest level for a long time.



Bank of China opening branch in Pakistan


Harris Javed/ISLAMABAD: Mr. Tian Guoli Chairman Bank of China (BOC) along with a delegation of senior officials called on the Finance Minister Senator Mohammad Ishaq Dar today and apprised him that BOC is opening a branch in Pakistan to expand its operations here.

Chairman Bank of China apprised the Finance Minister that he had witnessed the potential of Pakistan’s economy during his current three day visit and commended the government on the difficult steps taken to improve Pakistan’s economic outlook on both the domestic and international fora.

He said that the reforms undertaken by the government were deep rooted and expressed full support from Bank of China to collaborate with the government of Pakistan to achieve further success and milestones in its economic reform agenda. He added that various Chinese companies were exploring opportunities to move their manufacturing to Pakistan.

Finance Minister appreciated the Bank’s interest in business opportunities in Pakistan. He said that Bank of China being one of world’s five largest banks was well positioned to bring investment to Pakistan. He said that the government is laying the foundations of a strong pro-business environment through national infrastructure projects which will stimulate further growth of the economy. Further, he appraised the delegation on the incentives which can be made available through Special Economic Zones

Finance Minister welcomed the initiative of opening a Bank of China branch in Pakistan and assured full support from the government in this regard. He expressed hope that this initiative will likely motivate more Chinese companies to invest in Pakistan directly.

SAPM on Revenue, Secretary Finance, Secretary EAD and senior officials of Ministry of Finance attended the meeting.



6th CORPORATE AMBASSADOR Awards (Nominations Invited)


For more details contact Mr Javed Mahmood, Founder/Editor Corporate Ambassador and President of the Awards Committee (0334-3939029/0301-4549495) _ Nomination charges will be applicable on the candidates short-listed for awards.


Coverage of 5th Corporate Ambassador Awards held at DHA Creek Club, Karachi.

The Financial Daily coverage of 5th Awards

5th award coverage daily Pakistan

Express n Daily Dunya Daily Times


Daily Ausaf and Jahan Pakistan.

Rashidadeel Award

Daily Dunya

Coverage in Pakistan & Gulf Economist weekly

Pak Gulf Economist

Pak Gulf Economist2

English dailies 5th Award

Chairman National Foods Limited Mian Abdul Majeed who was the Chief Guest of the awards ceremony.

Rozina Jalal, famous Astrologist was the Chairperson of the Awards. She is also the chairperson of the FPCCI committee on security and anti-terrorism in Karachi.

Irtiza Kazmi, chief of NBP’s Global Home Remittance, speaking at the 5th awards ceremony.

Javed Mahmood, Chief Editor Corporate Ambassador with Guests and award winners.

Sadia Shakil speechh

Sadia Shakeel, social worker, trainer, psychotherapist, public speaker advocating the cause of social work and well-being of the needy people. She said the mission of late Edhi sahib should be carried forward by all the resourceful Pakistanis.

Analyst Col. (Retd) Mukhtar Ahmed Butt, addressing the 5th Awards ceremony. He was honoured with Pride For Pakistan Award.

Mubasher Mir, Resident Editor Daily Pakistan Karachi and Anchor/Author of book India Gate. Mir is also a Ph.D Scholar of Karachi University. Ali Nasir, senior Anchor, educationist is addressing the awards ceremony. Ali Nasir is one of the few competent anchors of business and finance in Pakistan.

Muttahir Ahmed Khan and Roomi Syed were the Hosts of the programme.

5th Awards ePaper Back Page New

Famous Naat Khuwan Aqsa Abdul Haq is presenting “Hamd-o-Naat” at the awards ceremony with her majestic voice and style. She was honoured with Best Naat Khuwan of the Year Award.

Here are glimpses of 4th Corporate Ambassador Awards held at Moven Pick Hotel, Karachi in Jan 2016.

Legends & Winners of 4th CorporateAmbassador Awards

Here are all the winners of 4th Corporate AmbassadorAwards, organised at MovenPick Hotel in Karachi on Jan 23, 2016. Almas Hamirani, Pakistani-born Fashion Designer based in Birmingham (Alabama), United States of America, was the Chairperson of the awards show. She came from USA to grace this Grand Show and to receive her award as Best Fashion Designer.

First of all, here are female winners of the awards:

Here are Male winners of the awards

Irtizakazmi award1

DanishKumar award

Manzar Sehbai award

Mubashermir award1

Muttahir with award2

AliNasir award2

Mahmoodmir of Dr Essa Lab award

Zeshanshah award2

Hosts of the Awards

Muttahir Khan and Reeda Sheikhani

Muttahirkhan Reeda Sheikhani

Here are Group Photos of the participants of the Awards show

Full award group photo3

Group Photos of the Participants

Full Group photo2

Full Group Photo

Full Stage Group Photo1

Javed and guests on stage

Full Stage Group photo

Abid Lehri from Quetta

Abid Lehri, Special Guest Speaker from Quetta.

IrtizaKazmi addressing awards ceremony

Irtiza Kazmi, EVP National Bank of Pakistan and NBP Coordinator of Prime Minister Youth Loan Programme highlighting breakthrough in PMYL programme and sharing success of the programme.

Javed welcoming guests2

Javed Mahmood, Chief Editor, weekly Corporate Ambassador welcoming guests at the Grand Awards show.

Danish Kumar1

Danish Kumar, former Chairman, Balochistan Minorities Alliance and PML(N) Secretary-General, Balochistan Minorities sharing his views about freedom, minorities are enjoying in Balochistan.

Sardar Shaukat Popalzai

Sardar Shaukat Popalzai, President of the Balochistan Economic Forum (BEF) is sharing the prospects of China-Pak Economic Corridor for Pakistan and other countries in the region.

Majydaziz Rozina

Majyd Aziz, renowned business, Guest of Honour sitting with Rozina Jalal, Special Guest and Best Astrologist award winner.

Gilani Javed Ali Umershah Aysha