The refusal of banks to open letters of credit for the import of vessels for breaking up (HS Code 8908.000) under general restrictive orders from the State Bank of Pakistan is resulting in severe shortage of steel raw materials to make construction bars by steel rerolling mills, small furnaces and thousands of necessary products by the steel cottage industries in the country, according to a press release.

During the last 10 years, on average, the shipbreaking industry contributed around Rs14bn annually to National Exchequer and over a billion to Balochistan. Our average overall import value ranges to only around $60- 65m per month, which is hardly around 1pc of the total import bill.

Continued restriction of the import of vessels for breaking up has resulted in the complete shutdown of the ship-breaking industry in Gadani, Balochistan. That is a substantial loss of revenues to the national and provincial governments.

This has caused unemployment to around half a million persons across the country and 20,000-25,000 persons directly working at Gadani. It will also create an acute shortage of construction bars and will stop work on all low-rise buildings, low-cost housing and flood rehabilitation activities.

We sincerely request the prime minister, the federal minister of finance and the State Bank of Pakistan to please give serious attention and immediately allow us to import the vessels for breaking up.

Lucky Core Industries announces results

Following the meeting of the Board of Directors, Lucky Core Industries Limited announced its financial results for the quarter and six months that ended December 31, 2022, according to a press release. During the period under review, the company entered into a share purchase agreement with Morinaga Milk Industry Co. Ltd Japan (Morinaga Milk) for a partial divestment of approximately 26.5pc of the issued and paid-up capital of Nutrico Morinaga Private Limited.

On a consolidated basis, net turnover for the six months period from continuing operations under review rose by 6pc to Rs49,582m compared to the same period last year (SPLY). The operating result from continuing operations for the six months under review is 21pc lower at Rs5,359m compared to the SPLY.

Including the impact of discontinued operations, net turnover for the six months would have been 22pc above the SPLY, whereas the operating result would have been lower by 3pc from the SPLY. The decline in profitability was primarily attributable to macroeconomic challenges. The board has approved an interim cash dividend for the financial year ending June 30, 2023, at the rate of 100pc, ie Rs10 per share of Rs10.

The importance of cloud migration

Saquib Ahmad, Country Managing Director of SAP Pakistan, recently held a discussion with the media to highlight the role of cloud migration and the transformation that it will bring to businesses, according to a press release. Cloud migration is essential to ensure digital transformation and manage applications and data in the most cost-effective, efficient, and secure IT environment.

SAP has a strong presence in almost all business segments of Pakistan. These digital solutions not only add ease of business and outreach but expedite the progress manifolds for their sheer evaluative data outlining the route forward most visibly.

Mr Ahmad, while speaking on the essence of cloud migration and data backup for business enterprises, stated: “the usage of technology by companies had changed in the post-Covid-19 situation. It has now strengthened, making Cloud Computing the need of the hour.

“Pakistani companies, from big automakers to small-sized businesses, are using the SAP software for the same. SAP is also working with government institutions to create time-efficient processes with evaluative options for the best foot forward.”

He elaborated on the strengths of SAP solutions for decision-making, stating, “Highlighting successful behavioural trends with the right set of data is important for CEOs for best decisions.”

Turkish B2B meetings

The Chief Executive of the Trade Development Authority of Pakistan, M. Zubair Motiwala, participated as a guest of honour in business-to-business meetings between Turkish Businessmen and their Pakistani counterparts, organised by the Consulate General of Turkey at Karachi at Pearl Continental Hotel Karachi. During his speech, the CEO of TDAP put emphasis on joint ventures between the two countries for the mutual benefit of either side and pressed for moving towards innovations and diversification in Pakistan’s exports, according to a press release.

Published in Dawn, The Business and Finance Weekly, January 30th, 2023