Leading Pakistani textile firm temporarily suspends operation amid declining market situation

A Pakistan textile labourer checks the quality of the yarn at a power loom in Karachi, Pakistan on January 25, 2019. (AFP/File)
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Updated 29 December 2022
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Leading Pakistani textile firm temporarily suspends operation amid declining market situation

  • Pakistan’s textile industry is vital to national economy and accounts for more than 60 percent of its total exports
  • Aside from the textile sector, companies in the automobile industry have also suspended operations in Pakistan

ISLAMABAD: A leading textile company in Pakistan announced in a statement released to the Pakistan Stock Exchange (PSX) on Wednesday it would partially shut down operations due to declining market conditions.

Pakistan’s textile and clothing industry plays a vital role in sustaining its economy since it accounts for more than 60 percent of the country’s total exports. According to a market and consumer data platform, Statista, Pakistan was among the top 10 global textile exporters in 2021 with a value of about $9 billion.

However, the country is currently witnessing economic turmoil amid energy shortages and a major balance of payments crisis. To mitigate the situation, the government has started imposing curbs on the industrial sector to reduce the size of its import bill. As a result, many companies have been pushed to limit or suspend their operations.

“The company has an installed capacity of 219,528 spindles and 2,880 rotors in its spinning division,” Nishat Chunian Limited (NCL) said in a PSX filing on Wednesday. “[It] has decided to temporarily close 51,360 spindles after one month due to market conditions.”

The firm added its remaining units would operate as usual, and the spindles would be restarted as soon as there was an improvement in the market conditions.

Earlier this month, another textile company, Kohinoor Spinning Mills Limited (KOSM), also announced in a statement to the PSX it had decided to temporarily shut down operations “due to the prevailing global and economic downturn, overdue plant maintenance, and high cost of production and low price and demand.”

Aside from the textile sector, other companies have also suspended operations in the country, including Indus Motor Company and Pak Suzuki Motor Company Ltd, among others.


US supports Saudi crown prince’s visit to Pakistan amid regional diplomatic activities

Updated 7 sec ago
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US supports Saudi crown prince’s visit to Pakistan amid regional diplomatic activities

  • Matthew Miller says the US always encourages diplomatic engagements among its partner countries
  • He expresses skepticism over Ebrahim Raisi’s Pakistan visit due to Iran’s ‘destabilizing behavior’ in region

ISLAMABAD: The United States said on Tuesday it encourages diplomatic engagements among its partners and supports the upcoming visit of Saudi Crown Prince Mohammed bin Salman to Pakistan, expected sometime this month.
The statement by State Department Spokesperson Matthew Miller was issued in response to a question about diplomatic activities in the region, including Iranian President Ebrahim Raisi’s official tour of the South Asian state.
The Saudi crown prince’s visit to Pakistan is likely to occur amid high-level exchanges between the two countries, as Islamabad seeks foreign investment to address its economic challenges.
“We always support diplomatic engagement between our partners,” Miller said during a media briefing. “I don’t have any further comment on the visit between the Saudi crown prince to Pakistan, but it’s – that kind of diplomatic engagement is routine and something that we support and encourage.”
“But when it comes to Iran, of course, while we welcome regional de-escalation, we’ve seen the outbreak of limited conflict between Iran and Pakistan,” he continued. “We do remain skeptical about Iran’s intentions given its continued destabilizing behavior broadly in the region.”
Last month, Raisi arrived in Pakistan on a three-day official visit as the two neighbors sought to mend ties after unprecedented tit-for-tat military strikes in January. The visit also took place as tensions were running high in the Middle East after Iran launched airstrikes on Israel that retaliated with its own attack on Isfahan.
Pakistan and Iran are also working on a gas pipeline project agreed between them in 2009 amid the threat of US economic sanctions.
Pakistan’s Deputy Prime Minister Ishaq Dar said on Tuesday the government in Islamabad would continue to pursue its own interest as a sovereign state.
He also confirmed the Saudi crown prince’s much-awaited visit to Islamabad was on the cards and could materialize “any time” during this month.


Pakistan finalizes arrangements for intending Hajj pilgrims in Saudi Arabia

Updated 10 min 43 sec ago
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Pakistan finalizes arrangements for intending Hajj pilgrims in Saudi Arabia

  • Pakistan’s month-long pre-Hajj flight operation is due to begin on May 9
  • This year’s Hajj pilgrimage is expected to run from June 14 till June 19

ISLAMABAD: Pakistan has finalized arrangements to welcome intending Hajj pilgrims in Saudi Arabia, the Pakistani religious affairs ministry said on Tuesday, days before the start of the country’s month-long pre-Hajj flight operation.
Hajj is one of the five pillars of Islam, and requires every adult Muslim to undertake the journey to the holy Islamic sites in Makkah at least once in their lifetime, if they are financially and physically able.
Pakistan has a Hajj quota of 179,210 pilgrims this year. Of them, 63,805 pilgrims will be performing the pilgrimage under the government scheme, while the rest would be facilitated by private tour operators, according to the Pakistani religious affairs ministry.
“By the grace of Allah Almighty, we are optimistic to a great extent that our pre-Hajj arrangements will ensure a smooth Hajj operation,” said Ahmed Nadeem Khan, joint secretary and director of facilitation and coordination (F&C), at a media briefing.
He said they were making all-out efforts to make the annual Hajj operation hassle-free both in Pakistan and Saudi Arabia.
The ministry has introduced several new initiatives, including discounted long and short packages, complimentary uniform baggage with QR coding, and essential items like head scarf for women and ihraam belts for men, according to the official.
Additionally, a complimentary Hajj SIM card with data and minutes will ensure connectivity throughout the journey, and the mandatory Hujjaj app will help educate, track and assist pilgrims in performing Hajj rituals for a seamless pilgrimage.
Khan urged the Hajj support staff, including assistants, doctors and paramedics, to deliver their best in extending maximum facilities to the pilgrims, saying their performance would be minutely evaluated and no negligence would be tolerated.
He said the religious affairs ministry was gradually taking its Hajj operation to end-to-end automation and the launch of the Hujjaj app was part of it.
“We have completed 70-80 percent automation, and the rest will be done in due course,” the official said, adding that up to 90 percent of intending pilgrims have been communicated through the app information about their flights, accommodation, vaccination and visa approval.
Khan said over 8,000 Pakistanis had so far contacted the ministry through the app to discuss their issues regarding the spiritual journey, which have been cleared within no time and a few were at various stages of resolution.
Pakistan’s month-long pre-Hajj flight operation is slated to begin on May 9 to ferry pilgrims to the revered destinations.
This year’s pilgrimage is expected to run from June 14 till June 19.


Pakistan acknowledges sanctions risk for Iran gas pipeline, rejects foreign ‘dictation’

Updated 35 min 30 sec ago
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Pakistan acknowledges sanctions risk for Iran gas pipeline, rejects foreign ‘dictation’

  • Ishaq Dar says Pakistan will prioritize its own interest over the issue as a sovereign state
  • The pipeline project has faced delays for several reasons including funding challenges

ISLAMABAD: Pakistan’s Deputy Prime Minister Ishaq Dar announced on Tuesday his country understood the sanctions risk involved in pursuing the Iran-Pakistan gas pipeline, though he said it would not take “dictation” from other states and follow its own interests.
Earlier this year in March, US Assistant Secretary of State for South and Central Asian Affairs Donald Lu told a Congressional hearing that President Joe Biden’s administration was trying to prevent the construction of the pipeline project that was agreed between the two countries in 2009.
His statement followed Pakistan’s decision to build an 80-kilometer pipeline segment from its border with Iran to the port city of Gwadar in the first phase.
Recent media reports also indicated the government was deliberating over engaging an international law firm to seek US sanctions waiver to implement the project.
“We are not concerned with what other countries say about the Iran-Pakistan gas pipeline project,” Dar said during a media talk in Islamabad. “We must prioritize our own interests, honor our commitments, and make decisions based on Pakistan’s interests.”
“We won’t be dictated to, nor will we allow anyone to veto our decisions,” he continued. “Pakistan is a sovereign nation, and we expect others to respect our sovereignty just as we respect theirs. The government will make the final decision on the IP gas pipeline.”
The deputy prime minister said the Iranian president visited Pakistan with sincerity, and the government conducted meetings and dialogues with him in a cordial environment.
“This project has long-standing complications, including sanctions from other countries, but we will prioritize Pakistan’s interests when making decisions about it,” he added.
The Iran-Pakistan gas pipeline, known as the Peace Pipeline, has faced significant delays in the past due to several reasons that include funding challenges.
Pakistan’s defense minister Khawaja Muhammad Asif also said last month his country had the right to buy gas at competitive rates from neighboring countries amid its ongoing economic problems.


Ex-PM Khan party reiterates call for judicial probe into May 2023 violence in Pakistan

Updated 07 May 2024
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Ex-PM Khan party reiterates call for judicial probe into May 2023 violence in Pakistan

  • Khan’s brief arrest on May 9, 2023 saw hundreds of his supporters allegedly ransack state buildings and vandalize public property
  • A Pakistani military spokesman on Tuesday said it was important to punish May 9 perpetrators to restore trust in the justice system

ISLAMABAD: Jailed former prime minister Imran Khan’s Pakistan Tehreek-e-Insaf (PTI) opposition party on Tuesday reiterated its call for a judicial probe into violent protests that hit Pakistan on May 9, 2023 over Khan’s brief arrest in a graft case.

Khan’s arrest saw hundreds of his supporters allegedly pour into the streets across the country, ransacking military and other properties. Thousands were arrested in the aftermath and some were tried by military courts after the authorities promised to bring the perpetrators and instigators of the violence to justice.

The PTI says the May 9 incident was a “false flag operation” and the subsequent crackdown was aimed at keeping Khan, who was ousted from power in a parliamentary no-trust vote in April 2022, and his party from returning to power in Pakistan’s national election held in February this year, after being delayed for months.

Asked about the claims, a Pakistani military spokesman said on Tuesday the May 9 incident was not related to the military alone, but to the whole of Pakistan, noting that the protesters had attacked military installations, burnt the residence of the founder of Pakistan and vandalized martyrs’ monuments.

The spokesman, Maj-Gen Ahmed Sharif Chaudhry, said the perpetrators and facilitators of the riots needed to be brought to justice as per the constitution and law of the land to preserve the credibility and faith in the country’s justice system.

“See, all this what he has said, we challenge him on these things that all what he is saying, its proofs should be brought before the people,” Raoof Hasan, the PTI information secretary, said at a press conference.

“And the easiest way for that is, what we started demanding immediately after May 9, that an independent, transparent judicial inquiry be instituted, which established who committed the crime and who were behind them.”

Last week, the PTI also issued a circular and urged party members to hold rallies in every provincial assembly constituency to commemorate the May 9 protests, citing directives from Khan who has been in jail since August last year.

Khan, 71, was ousted in 2022 after falling out with Pakistan’s powerful military leaders who many say backed him into power in 2018. In opposition, he waged an unprecedented campaign of defiance against the military establishment which has directly ruled the South Asian nation for nearly half of its history.

Arguably Pakistan’s most popular politician, Khan says the cases against him are “politically motivated,” aimed at keeping him from returning to power. The military denies it.


Pakistani conglomerate Engro looks to go global, main investor says

Updated 07 May 2024
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Pakistani conglomerate Engro looks to go global, main investor says

  • The expansion plans include looking at telecom infrastructure in the Middle East, North Africa, and Central Asia
  • Engro Corp. has a market capitalization of $694 million on the Pakistan Stock Exchange and assets of $2.9 billion

KARACHI: Pakistan’s largest conglomerate, Engro Corp, is looking to expand into new markets, including the Middle East, Central Asia and Africa, the chemicals-to-energy company’s largest investor said on Tuesday.

Speaking to Reuters in a rare interview, Samad Dawood, vice chairman of Dawood Hercules Corp, which owns 40 percent of Engro Corp, said the company was also considering global liquefied natural gas (LNG) opportunities as well as hydrogen energy.

The expansion plans include looking at telecoms infrastructure in the Middle East, North Africa, and Central Asia, while it is looking at Africa to expand its fertilizer businesses, he said.

Engro Corp. has a market capitalization of 193 billion rupees ($694 million) on the Pakistan Stock Exchange and assets of 802 billion rupees ($2.9 billion), according to public data.

The group has businesses across multiple sectors in Pakistan, including energy, fertilizer, telecommunications and consumer goods.

It owns 56 percent of Pakistan’s first LNG terminal, Engro Elengy Terminal Pakistan, which was set up in the southern city of Karachi in 2015. Dutch energy logistics giant Royal Vopak owns the remaining 44 percent.

The terminal fulfils 15 percent of Pakistan’s natural gas demand.

Dawood said Engro will continue to invest in the energy sector despite having sold its coal-based assets, and was exploring new avenues for sustainable energy production.

He said the company was talking to technology providers in the hydrogen energy sector to figure out how to use ammonia as an energy transition solution.

Dawood added that Pakistan was far from being energy-secure and there were plenty of opportunities to invest further in the power sector.

Pakistan has moved toward reliance on LNG after its own domestic gas supplies dwindled fast as consumption in the industrial and residential sectors increased.

’DREAMER’

Dawood said the global push was inspired by his late elder brother Shahzada, who perished last year in the ill-fated Titan’s voyage to explore the Titanic wreckage — an accident that made global headlines when the deep-sea submersible imploded and killed all five people on board.

“He (Shahzada) was much more of a dreamer and pushing us to become more international and building that curiosity and engaging with the outside world,” Dawood said.

The Dawood family also faced a protracted legal ordeal in Pakistan where the company was accused of getting illegal favors from the government.

The case, which lasted years, finally ended last week with the country’s accountability watchdog dropping the case entirely. Dawood says the matter hurt the family deeply and even impacted their businesses and potential investors.

The company’s plans to push ahead are taking shape, Dawood said. On Monday, the boards of Engro and Dawood Hercules approved in principle a restructuring plan to allow them more capital flexibility.

Dawood said the restructuring will allow for participation in “opportunities that the entire economy provides,” adding that the boards wanted the flow of capital to be completely seamless between the two organizations.

He said Engro would be able to expand its investment mandate to include exploring opportunities created by multinational corporations divesting from Pakistan’s troubled markets.