A NEW PERSPECTIVE ON PROSPERITY & PARTNERSHIP
RS.
ANNUAL REPORT 2019
01 Mission Statement
01 Profile
03 Executive Committee 2019
04 Executive Committee 2020
05 Past Presidents
06 List of Members
07 U.S. – Pakistan – Some Interesting Facts
09 Economic Contribution
14 Executive Committee’s Report 2018-19
16 Highlights of the Year
30 Programs & Events Photo Gallery CONTENTS
48 Reports of Sub-Committees • Agriculture and Food/Beverages • Finance & Taxation • Industry & Trade • IPR, Legal & Government Relations • IT & Innovation • Media, PR, Programs & CSR • Membership & North Members • Pharmaceutical • Security
67 ABC Representation
68 ABC Members’ CSR Activities
105 Appreciation MISSION STATEMENT
To protect and promote the interests of U.S. Investors in Pakistan; to ABC is a liated with the Federation of Pakistan Chambers of encourage and stimulate new investments; to introduce and inculcate Commerce & Industry (FPCCI) and is a member of the U.S. Chamber of best practices; to strive to establish a level playing field in the country Commerce (USCC), Washington D.C., and Asia-Pacific Council of in order to promote the development of commerce between the USA American Chambers of Commerce (APCAC). ABC also has a close and Pakistan. working relationship with the U.S.-Pakistan Business Council, Washington which is a component of the USCC. ABC aims to raise the PROFILE profile of Pakistan to promote investors confidence in the country.
The American Business Council of Pakistan (ABC) was formed in 1984 and has completed 36 years of service to Pakistan.
ABC is one of the largest investors group in Pakistan. Currently, we have 64 members and most of them are listed in the Fortune 500 companies. The members operate across various sectors such as healthcare, financial services, information technology, chemicals & fertilizers, energy, FMCG, food & beverage, oil & gas and many others. ABC members contribute a sizable amount to the national exchequer each year as direct and indirect taxes – last year contributing over Rs. 109 billion. ABC members also employ over 130,000 people directly and with the vast majority of agents, distributors, contractors etc. employ over a million.
The Council is managed by an Executive Committee that is elected every year by its members and meets monthly to review ongoing initiatives. The focus of the Executive Committee is to facilitate direct interaction with the Federal and Provincial governments through its guest speakers’ program, seminars and events held throughout the year.
ABC is an e ective channel for dialogue with the Government of Pakistan. Regular suggestions and input for improvement are provided to relevant bodies like ministries, regulatory and tax authorities and others throughout the year.
01 ABC is a liated with the Federation of Pakistan Chambers of Commerce & Industry (FPCCI) and is a member of the U.S. Chamber of Commerce (USCC), Washington D.C., and Asia-Pacific Council of American Chambers of Commerce (APCAC). ABC also has a close working relationship with the U.S.-Pakistan Business Council, Washington which is a component of the USCC. ABC aims to raise the profile of Pakistan to promote investors confidence in the country.
ABC’S OBJECTIVES
• Actively engage with policy makers, government bodies and relevant ministries on pertinent issues including Tax Reforms, Trade Polices, Free Trade Agreements (FTA) and protection of Intellectual Property Rights
• Elevate the profile of ABC as the largest single-country Chamber in Pakistan
• To advocate a level-playing field and best international practices to help protect and promote U.S. investments in Pakistan ABC ANNUAL REPORT ABC ANNUAL
02 OFFICE BEARERS & EXECUTIVE COMMITTEE 2019
PRESIDENT SENIOR VICE PRESIDENT VICE PRESIDENT Mr. Ahmed Jamal Mir Mr. Sami Ahmed Mr. Kamran Attaullah Khan Managing Director & CEO Vice President Chief Executive Prestige Communications (Pvt.) Ltd. Procter & Gamble Pakistan (Pvt.) Ltd. DuPont Pakistan Operations (Pvt.) Ltd.
MEMBERS
Mr. Marazban Mavalvala Mr. Farrokh K. Captain Mr. Imran Jehangir Nasrullah Mr. Nadeem Inam Ul Huq Executive Director Chairman & Managing Country Head Pakistan & Country General Manager Al-Hamd International Director Group Director International Learning Centre Container Terminal (Pvt.) Ltd. Captain-PQ Chemical Cargill Pakistan Holdings (Pvt.) Ltd. (Pvt.) Ltd. (Berlitz) Industries (Pvt.) Ltd.
Mr. Irshad Ali Kassim Mr. Khurram Mohammad Qamar Mr. Adnan Asad Mr. Nadeem Elahi Chairman Director External Affairs Chief Executive Officer Chief Executive Officer Karam Ceramics Ltd. Philip Morris (Pakistan) Ltd. Venus Pakistan (Pvt.) Ltd. TRG (Pvt.) Ltd.
SECRETARY GENERAL
AUDITORS LEGAL ADVISOR KPMG Taseer Hadi Haroon Dugal Law Chambers & Company BANKERS TAX ADVISORS Citibank, N.A. Plus Consultants
Ms. Amna Daudi
03 OFFICE BEARERS & EXECUTIVE COMMITTEE 2020
PRESIDENT SENIOR VICE PRESIDENT VICE PRESIDENT Mr. Adnan Asad Mr. S. Anis Ahmed Mr. Khurram Mohammad Chief Executive Officer Managing Director Qamar Venus Pakistan (Pvt.) Ltd. Abbott Laboratories (Pakistan) Ltd. Director External Affairs Philip Morris (Pakistan) Ltd. MEMBERS
Mr. Marazban Mavalvala Mr. Adeel Shahid Mr. Farrokh K. Captain Mr. Nadeem Inam Ul Huq Executive Director VP - Head of Marketing Chairman & Managing Country General Manager Al-Hamd International & Public Affairs Director International Learning Centre Container Terminal (Pvt.) Citibank, N.A. Captain-PQ Chemical (Pvt.) Ltd. (Berlitz) Ltd. Industries (Pvt.) Ltd.
Mr. Irshad Ali Shaban Mr. Kamran Nishat Mr. S. M. Wajeehuddin Mr. Mohammad Asif Peer Ali Kassim Managing Director & CEO Country Manager & Chief Executive Officer Chairman Muller &Phipps Pakistan Chief Executive Systems Ltd. Karam Ceramics Ltd. (Pvt.) Ltd. Pfizer Pakistan Ltd. SECRETARY GENERAL
AUDITORS LEGAL ADVISOR A. F. Ferguson & Co. Haroon Dugal Law Chambers
BANKERS TAX ADVISORS Citibank, N.A. Plus Consultants
Mr. Jehangir Bashir Nawaz ABC ANNUAL REPORT ABC ANNUAL
04 PAST PRESIDENTS
1984-85 MR. HASAN I. KAZMI (Jul 01-Sep 01) MR. ANJUM FASIH President Managing Director Exxon Chemical Pakistan Ltd. Bristol-Myers Squibb Pakistan (Pvt.) Ltd.
1985-86 MR. NAWAB ASGHER 2001-02 MR. ZUBYR SOOMRO Chairman & Managing Director Chief Executive & Country Corporate Pfizer Laboratories Ltd. O cer Citibank, N.A. 1986-87 MR. RUDOLF J. GEBERT Vice President & Country Manager 2002-03 MR. ARSHAD NASAR Bank of America, NT & SA Managing Director Caltex Oil (Pakistan) Ltd. 1987-88 MR. RUDOLF J. GEBERT Vice President & Country Manager 2003-04 MR. ANJUM FASIH Bank of America, NT & SA (Oct 03-Jun 04) Managing Director 1988-89 MR. NAWAB ASGHER Bristol-Myers Squibb Pakistan (Pvt.) Ltd.
Chairman & Managing Director 2003-04 MR. HUMAYUN BASHIR Pfizer Laboratories Ltd. (Jul 04-Sep 05) Country General Manager 1989-90 MR. KAMRAN Y. MIRZA IBM Pakistan Managing Director Abbott Laboratories (Pakistan) Ltd. 2004-05 MR. NADEEM KARAMAT Senior Director & Senior Country Executive 1990-91 MR. ROBERT F. McCUSKER American Express Bank Ltd. General Manager Interpak Shaving Products Ltd. 2005-06 MR. ZUBYR SOOMRO Managing Director 1991-92 MR. NISAR A. MEMON Citibank, N.A. Country General Manager IBM World Trade Corporation 2006-07 MR. IQBAL BENGALI Managing Director 1992-93 MR. SUBHI W. JARUDI Pfizer Laboratories Ltd. Managing Director Cyanamid (Pakistan) Ltd. 2007-08 MR. TASLEEMUDDIN AHMED BATLAY Director 1993-94 MR. S. ALI RAZA Colgate-Palmolive (Pakistan) Ltd. Senior Vice President & Country Manager 2008-09 MR. ASIF JOOMA Bank of America, NT & SA Managing Director Abbott Laboratories (Pakistan) Ltd. 1994-95 MR. AIJAZ K. KHAN Chairman 2009-10 MR. ARIF USMANI Wyeth Laboratories (Pakistan) Ltd. Managing Director & Citi Country O cer Citibank, N.A. 1995-96 MR. SHAUKAT TARIN (Jun-Nov 95) Country General Manager 2010-11 MR. HUMAYUN BASHIR Citibank N.A. Country General Manager (Dec 95-Jun 96) MR. FAROOQ HADI IBM
Managing Director 2011-12 MR. SAAD AMANULLAH KHAN Cyanamid (Pakistan) Ltd. Chief Executive O cer 1996-97 MR. SHAMSHAD ALI Gillette Pakistan Ltd. Managing Director Johnson & Johnson Pakistan (Pvt.) Ltd. 2012-13 MR FARROKH K. CAPTAIN Chairman & Managing Director 1997-98 MR. S. SAJJAD RAZVI Captain-PQ Chemical Industries (Pvt.) Ltd. (Jun-Dec 97) Country General Manager Citibank N.A. 2013-14 MR. SAAD AMANULLAH KHAN (Jan-Jun 98) MR. ASIF IKRAM (Jan 14-May 14) Chief Executive O cer Country Manager Gillette Pakistan Ltd. DuPont Far East Inc. 2013-14 MR. TAUQIR AHMED 1998-99 MR. FAROOQ HADI (Jun 14-Sep 14) Chief Executive (Jun-Dec 98) Chairman, Managing Director (CEO) DuPont Pakistan Operations (Pvt.) Ltd. Cyanamid (Pakistan) Ltd. 2014-15 MR. ARSHAD SAEED HUSAIN (Jan-Sep 99) MR. KAMRAN Y. MIRZA Managing Director Chairman & Managing Director Abbott Laboratories (Pakistan) Ltd. Abbott Laboratories (Pakistan) Ltd.
1999-00 MR. PHILIPPE A. BOVAY 2015-16 MR. NADEEM ELAHI Vice President & General Manager Chief Executive O cer Procter & Gamble Pakistan (Pvt.) Ltd. TRG (Pvt.) Ltd. (Jul 00-Sep 00) MR. IRSHAD ALI KASSIM 2016-17 MR. SAMI AHMED President & CEO Vice President Karam Ceramics Ltd. Procter & Gamble Pakistan (Pvt.) Ltd. 2000-01 MR. TAWFIQ A. HUSAIN 2017-18 MR. KAMRAN NISHAT (Oct 00-Jun 01) Senior Director & Country Manager Managing Director & CEO American Express Bank Ltd. Muller & Phipps Pakistan (Pvt.) Ltd.
05 LIST OF ABC MEMBERS
Corporate Members 47. Rafhan Maize Products Co. Ltd. 1. Abbott Laboratories (Pakistan) Ltd. 48. S&P Global Pakistan (Pvt.) Ltd. 2. Al-Hamd International Container Terminal (Pvt.) Ltd. 49. S.C. Johnson & Son of Pakistan (Pvt.) Ltd. 3. ACNielsen Pakistan (Pvt.) Ltd. 50. Shipco Transport Pakistan (Pvt.) Ltd. 4. Captain-PQ Chemical Industries (Pvt.) Ltd. 51. Systems Limited 5. Cargill Pakistan Holdings (Pvt.) Ltd. 52. Siza Foods (Pvt.) Ltd. (McDonald’s) 6. Chevron Pakistan Lubricants (Pvt.) Ltd. 53. Teradata Global Consulting Pakistan (Pvt.) Ltd. 7. Chubb Insurance Pakistan Ltd. 54. Teradata Pakistan (Pvt.) Ltd. 8. Citibank, N.A. 55. The Coca-Cola Export Corporation 9. Colgate-Palmolive (Pakistan) Ltd. 56. TRG (Pvt.) Ltd. 10. Continental Biscuits Ltd. 57. 3M Pakistan (Pvt.) Ltd. 11. Crescent Bahuman Limited 58. Uber Technology Systems Pakistan (Pvt.) Ltd. 12. DuPont Pakistan Operations (Pvt.) Ltd. 59. Universal Logistics Services (Pvt.) Ltd. (UPS) 13. Eli Lilly Pakistan (Pvt.) Ltd. 60. Venus Pakistan (Pvt.) Ltd. 14. F.C.I. International (Pvt.) Ltd. 61. Visa Worldwide Singapore Pte. Limited 15. FMC United (Pvt.) Ltd. 62. WPP Marketing Communications (Pvt.) Ltd. (JWT) 16. Gerry’s International (Pvt.) Ltd. (FedEx) 17. Gray Mackenzie Restaurants International Ltd. (KFC) Associate Members 18. Health eConnex (Pvt.) Limited 19. IBM 1. Farrokh K. Captain 20. International Franchises (Pvt.) Ltd. (Dunkin Donuts) 2. GCS (Pvt.) Ltd. 21. International Learning Center (Pvt.) Ltd. (Berlitz) 3. Sun Consulting (Pvt.) Ltd. 22. Johan (Pvt.) Ltd. (Culligan) 23. J.P. Morgan Pakistan (Pvt.) Limited Membership by Category 24. Karam Ceramics Limited 25. Levi Strauss Pakistan (Pvt.) Limited 26. LMK Resources Pakistan (Pvt.) Ltd. 0 2 4 6 8 10 12 14 27. Lotte Akhtar Beverages (Pvt.) Ltd. (PepsiCo) Advertising 28. Mastercard Pakistan (Pvt.) Ltd. Agriculture / Chemical / 29. MCR (Pvt.) Ltd. (Pizza Hut) Fertilizers 30. Microsoft Corporation Pakistan Liaison O ce Energy / Oil 31. Mondelez Pakistan Ltd.
32. Monsanto Pakistan (Pvt.) Ltd./Bayer Pakistan Financial 33. Muller & Phipps Pakistan (Pvt.) Ltd. 34. NCR Corporation FMCG 35. OBS Pakistan (Pvt.) Ltd. 36. Ogilvy & Mather Pakistan (Pvt.) Ltd. Food & Beverage 37. Optimus Ltd. (Hertz) IT/Communication 38. Oracle Corporation
39. Pak Tectonic Services (Pvt.) Ltd. Others 40. Pepsi-Cola International (Pvt.) Ltd. 41. Pfizer Pakistan Ltd. Pharmac eutical 42. Philip Morris (Pakistan) Ltd. 43. Pioneer Pakistan Seed Ltd. Shipping & Logistics 44. Prestige Communications (Pvt.) Ltd. 45. Primatics Financial (Pvt.) Ltd. Textile
46. Procter & Gamble Pakistan (Pvt.) Ltd. REPORT ABC ANNUAL
06 U.S. – PAKISTAN – SOME INTERESTING FACTS
General Trade • Built or repaired 1,619 schools throughout Pakistan since 2009 U.S. and Pakistan have shared a long bilateral trade relationship over the past 70 years. • Trained over 46,191 teachers and school administrators since 2013 • Bilateral trade in 2018 (January - December) was US$ 6.6 B and Pakistan exports were • Awarded nearly 19,000 scholarships for US$ 3.7 B talented students to attend tertiary education in Pakistan over the past nine years • 2019 (January – October) was US$ 5.2 B and Pakistan exports were US$ 3.3 B • Reached more than 1.7 million primary-level learners through reading programs • The United States remains Pakistan’s highest single export market destination and is just • Built 17 Faculties of Education slightly behind the European Union as a Resilience whole. It benefits Pakistan to nurture the trade relationship with the United States. USAID works with the GoP and Development Energy Partners to restore, rehabilitate public and private infrastructure in conflict-a ected areas and is supporting returning populations as they get USAID works with the GoP and Development settled. Key results in this sector include: Partners in improving the power system, strengthening private sector engagement, and • Distributed 2.5 million library books to promoting state-of-the-art technology. Key increase children’s interest in reading results include: • Supported the livelihoods of farming families • Over 42 million Pakistanis benefited from by restoring irrigation and improving drainage USAID’s work since 2011 to add over 3,500 across more than 570,000 acres of arable MW of electricity to the national grid land in Khyber Pakhtunkhwa province including 1,049 MW of generation capacity from new and rehabilitated hydro and thermal • Rehabilitated a damaged power supply power plants and 2,505 MW of transmission system and upgraded power grids in 88 and distribution capacity villages in South Waziristan Agency for students to focus on their studies and • Cumulative clean energy generation capacity tradespeople to use their machinery to supported by U.S. government reached 960 generate more income MW • Rebuilt and/or renovated over 2,500 health • Customers are receiving more accurate units and utility systems to enable local energy bills as a result of USAID’s work to governments to deliver health services to install or repair over 250,000 electricity local populations, which also helps to build meters people’s trust in government Education Health
USAID works with the GoP and Development USAID works to improve primary health in the Partners to increase access to and improve the Afghanistan-Pakistan border region and to quality of basic and higher education. Key results combat infectious disease threats in Pakistan. Key in this sector include: results in the sector include:
07 • Provided over 9.8 million women and children commodities so that Pakistan can meet the with quality maternal, child, and reproductive family planning needs of its citizens health care services, including over 340,000 women and children in the di cult-to-reach Economic Growth & Agriculture and insecure Afghanistan-Pakistan border region in 2018 - 2019 USAID works with the GoP and Development Partners to boost private sector development, • Expanded access to clean drinking water and enhance productivity, and improve the sanitation services for over 480,000 people business-enabling environment. Key results include: across Khyber Pakhtunkhwa and Sindh provinces in 2018 - 2019 • Since 2011, more than one million rural households have benefited from USAID • Supported responses to infectious disease assistance to improve agricultural practices outbreaks in Pakistan and support economic growth
• Protected people from the proliferation of • Since 2011, USAID assistance has helped falsified and substandard medicines in create more than 106,000 new jobs Pakistan; and • In 2019, the value of annual sales for farms • Leveraged over US$ 107 million in domestic and firms receiving U.S. government resources for the procurement of assistance is US$ 18.6 million ABC ANNUAL REPORT ABC ANNUAL
08 ECONOMIC CONTRIBUTION FINANCIAL SURVEY Survey response from 47 member companies
Are you optimistic about the future economic and operating environment?
Response Response YES NO NOT APPLICABLE TOTAL Short term (1 year) 39.13% 58.70% 2.17% Short term (1 18 27 1 46 year) Long term (2 + years) 91.49% 6.38% 2.13% 43 3 1 47
Long term (2+ years)
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Yes No Not Applicable
How would you characterize your company’s financial performance in Pakistan 2018/19?
ANSWER CHOICES RESPONSES
Profitable Profitable 70.21% 33
Breakeven 10.64% 5
Breakeven Loss 19.15% 9
Loss TOTAL 47
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
How do the EBIT (earnings before interest and taxes) margins of your Pakistan operations compare with your company’s margins in the year before?
ANSWER CHOICES RESPONSES
Lower Lower 53.19% 25
Comparable 27.66% 13 Comparable Higher 19.15% 9
Higher TOTAL 47
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% ABC ANNUAL REPORT ABC ANNUAL
10 PERCEPTION SURVEY Survey response from 39 member companies
How do you rate Pakistan's perception internationally?
ANSWER CHOICES RESPONSES
Better Better 58.97% 23
Same 30.77% 12
Same Worse 10.26% 4
Not Applicable 0.00% 0 Worse TOTAL 39
Not Applicable
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
How would you rate the present overall business climate in the country?
ANSWER CHOICES RESPONSES
Better 17.95% 7 Better Same 20.51% 8
Worse 61.54% 24 Same TOTAL 39
Worse
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Please rank your top five business challenges in Pakistan. (1 - most challenging & 5 - least challenging)
1 2 3 4 5 NA TOTAL Increasing 75.00% 8.33% 13.89% 2.78% 0.00% 0.00% Increasing Costs... costs 27 3 5 1 0 0 36 (Utilities, Duties, Taxes) Inconsistent regulatory... Inconsistent 18.18% 54.55% 12.12% 15.15% 0.00% 0.00% regulatory 6 18 4 5 0 0 33 interpretation Obtaining required... and unclear laws
Obtaining 0.00% 5.88% 29.41% 32.35% 14.71% 17.65% required 0 2 10 11 5 6 34 Regulatory licenses compliance... (Ease of doing Business)
Shortage of Regulatory 0.00% 20.00% 40.00% 28.57% 8.57% 2.86% qualified... compliance 0 7 14 10 3 1 35 risks Shortage of 7.89% 18.42% 5.26% 13.16% 55.26% 0.00% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% qualified 3 7 2 5 21 0 38 1 2 3 4 5 NA employees
11 PERCEPTION SURVEY Survey response from 39 member companies
Have the following factors had any quantifiable impact on your company's operations/investment plan?
Response
Response YES NO NOT APPLICABLE TOTAL Cost of Operation Cost of Operation 89.74% 10.26% 0.00% 35 4 0 39 Law & Order Law & Order 69.23% 28.21% 2.56% Infrastructure 27 11 1 39 Transport Political Infrastructure Transport 58.97% 30.77% 10.26% Uncertainty 23 12 4 39 Legislation Political Uncertainty 84.62% 15.38% 0.00% 33 6 0 Approval/ 39 Licensing Legislation 82.05% 12.82% 5.13% Human 32 5 2 39 Resources Approval / Licensing 56.41% 23.08% 20.51% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 22 9 8 39 Human Resources 66.67% 30.77% 2.56% Yes No Not Applicable 26 12 1 39
How do you rate Pakistan's perception internationally?
ANSWER CHOICES RESPONSER
Better 58.97% 23 Better Same 30.77% 12
Worse 10.26% 4 Same Not Applicable 0.00% 0 TOTAL 39 Worse
Not Applicable
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% ABC ANNUAL REPORT ABC ANNUAL
12 CSR SURVEY Survey response from 37 member companies
Which of the following areas does your company contribute towards through its CSR initiatives? Please tick wherever applicable.
ANSWER CHOICES RESPONSES Culture and Heritage Culture and Heritage 8.11% 3
Child Welfare Child Welfare 27.03% 10
Disaster Relief Disaster Relief 16.22% 6
Environment Conservation Environment Conservation 27.03% 10
Education Education 64.84% 24
Healthcare Healthcare 43.24% 16
Infrastructure Development... Infrastructure Development (i.e. housing, water, sanitation, roads etc.) 18.92% 7
People with Special Needs People with Special Needs 35.14% 13
Sports Development Sports Development 21.62% 8
Women Empowerment Women Empowerment 37.84% 14
Not Applicable Not Applicable 10.81% 4
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Total Respondents: 37
Please select the key geographic areas in each province in which your company's CSR programs are active:
ANSWER CHOICES RESPONSES Sindh Sindh 75.68% 28
Punjab Punjab 64.86% 24
Balochistan Balochistan 32.43% 12
KPK KPK 37.84% 14
Gilgit-Baltistan Gilgit-Baltistan 8.11% 3
Not Applicable Not Applicable 13.51% 5
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Total Respondents: 37
13 EXECUTIVE COMMITTEE’S REPORT 2018-19 Executive Committee’s Report 2018-19
Overview Minister said that his government was committed to facilitate investors to increase their investment The Executive Committee of the American base in Pakistan. Business Council of Pakistan (ABC) 2018-2019, The delegation suggested that the Government’s started their tenure by prioritizing activities and housing scheme should use locally manufactured initiatives for the upcoming year. The main focus raw material to boost and promote the local was on: industries and also to allow Pakistanis with foreign account holdings to invest in Pakistan 1. Key issues identified by the ExCom Members Banao Certificates. The issues raised by ABC and members that needed to be addressed Members during the meeting were received with relevant stakeholders through positively and action was taken within the next engagement and interaction; few days. 2. Increasing dialogue with the Federal Government and high-ranking U.S. Embassy The attendees were Finance Minister, Advisor for o cials on matters a ecting American Commerce, Special Assistants to the PM, Mr. investment in Pakistan; and Naeem ul Haq, Chairman Board of Investment and 3. Highlighting the role of ABC and Secretary Commerce. During these meetings, ensuring more e ectiveness at the policy recommendations in support of an national level. economic climate conducive to growth, development of human capital and foreign However, the General Elections in Pakistan took investment were put forth. place around the same time bringing into power a new government. Therefore, ExCom had to delay The Executive Committee maintained an inclusive its interaction with its main stakeholder, the stance, seeking regular input from members and Government of Pakistan, giving sometime for the respective Sub-Committees on various matters, new cabinet members and o cials to assume including the Federal Budget, Trade Policy and o ce and settle in. Investment. The goal is to increase the visibility of The economic growth of a country requires a ABC and benefit the membership by making conducive and enabling environment where the them a part of an e ective body that contributes foreign investments are increased and the towards policy-making and shaping the economic stakeholders’ interest protected and promoted. environment of Pakistan. Therefore, ExCom’s initial focus was to further strengthen ties with the U.S. Embassy and the We would like to thank members of the ABC for U.S. Consulate Karachi by proactively engaging their support and involvement. The success of the with the Consul General and other Senior Chamber depends on the participation and O cials. ABC President and ExCom Members energy of its members and we look forward to a continued to play a critical role in bridging gaps renewed commitment on part of our members, by sharing their comprehensive understanding of for their continued support and participation the economy with potential investors, seeking towards all Chamber activities. The consistent information for investment in Pakistan. focus by council members on issues of good governance, trade policies and transparency, ABC Members’ Meeting with the ensures a robust economy that is in the best Prime Minister and Senior interest of the nation. Government Officials
ABC ExCom delegation, led by the President, including ExCom Members, CEOs and Senior Executives from member companies, met Prime Minister. The group shared their ideas and vision to create a more business-friendly environment. Addressing the ABC delegation, the Prime
15 HIGHLIGHTS OF THE YEAR
ABC suggestions to the Federal help make the U.S. Pakistan relationship even Government more positive. • ABC Meeting with U.S. Chargé d' Affaires - (a) Suggestions for Federal Budget 2019-20 October 10th, 2018 The American Business Council appreciated Mr. Jamal Mir welcomed Ambassador Paul the Government’s consultative e orts to Jones and thanked him for taking time out to involve all chambers and business forums in meet the ABC Members. After a brief the budget preparation process. The Council introduction of ABC, its members and submitted its proposals relating to procedural contribution to the national exchequer, Mr. and tax issues to the Federal Board of Mir said that his visit will improve relationship Revenue, Ministry of Commerce and the Board between Pakistan and the U.S. He added that of Investment on February 7th, 2019. he was looking forward to learn more of U.S. (b) Suggestions for Trade Policy 2019-20 strategy about Pakistan. He said that ABC is ready to play its role for improvement in relationship between the two countries. The American Business Council’s suggestions for Trade Policy (Import/Export) 2019-20 Ambassador Paul Jones thanked the were submitted to the Ministry of Commerce, participants. He said this is his first visit to Federal Board of Revenue and the Board of Karachi and it is his priority to develop Investment on February 7th, 2019. commercial business relationship with the business community. He informed members ABC Meetings/Briefing that he had held meetings with the Pakistan Business Council in Washington as well as Programs/CEO Roundtable members and colleagues based in Washington. He also said that U.S. companies are facing broader issues in Pakistan and for Inauguration of the ABC Secretariat - • its resolution we need to work closely. October 9th, 2018 Ambassador Paul Jones further said that he The ABC Secretariat was inaugurated by Ms. will lead the United States Mission in Pakistan JoAnne Wagner, U.S. Consul General of in its ongoing efforts to deepen the Karachi on October 9th, 2019. ABC was connections between the Pakistani and represented by Mr. Jamal Mir, President ABC, American people, and work with the new and Executive Committee Members. In his Government of Pakistan towards a more opening remarks, President ABC reiterated stable, secure, and prosperous future for the critical role American companies are Pakistan. playing in promoting business, creation of job opportunities and contribution of taxes to the Ambassador Jones also highlighted the positive Government. impact of U.S. government-funded exchange programs on the careers of Pakistani students This was followed by brief remarks of the and professionals, as well as on Pakistan-U.S. U.S. Consul General. In her address to ABC relations. He also underlined that the United Members she said, “Over the years the States seeks to move toward a new business to business ties between the United relationship with Pakistan, based on mutual States and Pakistan, the people to people ties interest in realizing a stable and prosperous have helped reconfirm, renew and resurrect region. the U.S. Pakistan relationship.” She added that she was very grateful to everyone for The meeting ended with a vote of thanks. being a leader in those efforts. She stressed Mr. Jamal Mir presented souvenir to the that together with concrete steps we could Chief Guest. ABC ANNUAL REPORT ABC ANNUAL
16 HIGHLIGHTS OF THE YEAR
• ABC Meeting with CPLC Chief - November Women Complaint Cell - CPLC 6th, 2018 CPLC established Women Complaint Cell at ABC Members and the U.S. Consul General its offices for quick disposal of cases and met with Mr. Zubair Habib, Chief, speedy justice to victims of Domestic Citizens-Police Liaison Committee (CPLC) on Violence; Abusive Attitude; Cybercrime November 6th, 2018 at CPLC Office. Mr. Victims; Bullying & Sexual Harassment; Zubair Habib gave a detailed presentation to Rape; Abduction; Heirship Cases; Marital the members about CPLC activities and how disputes etc. they have helped in combating crimes. More than 140 cases have been disposed of President ABC, Mr. Jamal Mir, presented ABC through Court of Law by closely working with Members’ donation of Rs. 500,000/- to the legal aid society in the last three years. CPLC Chief. CPLC Chief informed members of their Helpline No. 1102, available 24 hours, 7 The meeting was concluded with CPLC Chief days a week. presenting memento to the President ABC
and the U.S. Consul General. Some of the highlights of the presentation were: • ABC Meeting with Chairman IPO-Pakistan - Combating crime by working closely with the November 8th, 2018 police and help resolve cases pertaining to kidnapping, extortion and robbery: Ms. Amna Daudi, Secretary General ABC and ABC Members, welcomed Mr. Mujeeb Ahmed > Managing Police Complaint Cell Khan, Chairman IPO-Pakistan and his team and > Assisting Police in carrying out Traffic thanked him for visiting Karachi and meeting Management ABC. The meeting was held on November 8th, > Assisting LEAs in Snap Checking of 2018 at ABC Office. After a brief introduction Vehicles of ABC, its members and contribution to the > Handling Complaints of Public Nuisance national exchequer, the Secretary General said > Mediation and Arbitration in General that ABC is actively working towards the Disputes improvement and implementation of > Search cases of Lost/Runaway Persons intellectual property rights in the country. > Drawing sketches of persons > Management of Call Center for Inquiries, Mr. Mujeeb Khan thanked the participants Emergencies and Complaints and said that this is his priority to develop commercial business relationship with the Maintenance of FIR data business community in Karachi. After ABC Members’ introduction, the Chairman > CPLC has an up-to-date database of FIRs IPO-Pakistan introduced himself, stating since 1987 that he has more than 30 years’ experience in > Updated on daily basis from their 9 zonal Trade Development through Multilateral & offices Bilateral Trade Negotiations and Diplomacy, > Total number of FIRs recorded up to International Trade Laws, International and October 31st , 2018 is 971,950 Regional Trade Policy Integration and Implementation, Operations & Administration Maintaining database of Mobile in government domains. Snatching/Theft The Chairman IPO-Pakistan presented brief > A total of 1,151,340 records of mobile overview of the Intellectual Property phones Organization of Pakistan (IPO-Pakistan) > 50,068 recovered mobile phones have stating that it was established as an been returned to owners since 2005 autonomous body in April 2005 under the
17 HIGHLIGHTS OF THE YEAR
administrative control of the Cabinet Division throughout the country and keep a close for integrated and efficient intellectual liaison with IPO-Pakistan. property management in the country. In July 2016, the administrative control of He concluded that a lot of efforts are required IPO-Pakistan was transferred from Cabinet to eliminate the menace of counterfeiting and Division to Commerce Division. The major piracy from top to bottom in the country. functions of the organization, inter alia, With the cooperation of all stakeholders, they include: have the potential and experience to better serve the nation. • Administer and coordinate all Government systems for protection and strengthening of The meeting ended with a vote of thanks and Intellectual Property (IP) Ms. Amna Daudi, Secretary General, presented souvenir to the Chairman • Manage all IP offices in the country IPO-Pakistan.
• Create awareness about IP Rights • ABC CEO Roundtable Meeting with Governor Sindh - November 15th, 2018 • Advise Federal Government on IP Policy ABC Meeting with Mr. Imran Ismail, Governor of Sindh, was held on November 15th, 2018. • Ensure effective enforcement of IP Rights Mr. Jamal Mir welcomed the Governor of through designated IPR Enforcement Sindh and thanked him for taking out time to Agencies (Police, FIA, and Pakistan meet the ABC Members. After a brief Customs) introduction of ABC, its members and contribution to the national exchequer, the The Chairman IPO-Pakistan further briefed President said that we recognize that this is members that in this era of knowledge-based government in change and the government economies, intellectual property is a major has many challenges to face. driver of any nation’s wealth through protection and promotion of innovation and The Governor thanked ABC for inviting him creativity. In the backdrop of ongoing and said that ABC is a major forum and globalization, intellectual property partner in the economic growth of the management has assumed a critical role as a country. He appreciated the positive role the major driver of wealth creation in competitive American companies are playing in the economies. The realization that IP is a various sectors of the economy. powerful driver of innovation and creativity for wealth creation is immensely growing in The Governor further added that he was the world. He also said that in order to playing an instrumental role and acting as a effectively utilize the IP mechanism for bridge between the Federal Government and national wealth creation, IPO-Pakistan made it the Government of Sindh so that a foremost responsibility to address development initiatives are effectively institutional weaknesses, which were implemented in time. The Federal impeding an efficient utilization of IP System Government has initiated several energy, in Pakistan. infrastructure and social sector projects for Sindh, which include Port Qasim Power Plant, The Chairman informed members that Engro Thar Power Project and Thar Mine IPO-Pakistan alone cannot implement the Mouth Oracle Project. immense agenda of establishing an effective IP regime, without the active support of all The Governor briefed members that the stakeholders. An effective communication Government has also included the Karachi campaign is required to be launched through Circular Railway in the China-Pakistan mass media in this respect. The media should Economic Corridor (CPEC) project while work also highlight the violation of IP Rights on the Green Line Mass Transit Project was ABC ANNUAL REPORT ABC ANNUAL
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also in full swing. He stressed on serious and Body of Pakistan, working under the Ministry coordinated efforts of the Government and of Science and Technology, Government of private sector for the economic potential of Pakistan, and actively participates in Sindh, especially in Karachi. standards’ development activities at international and regional level. At national The Governor thanked the ABC President and level, PSQCA harmonizes Pakistan Standards its members for providing him an opportunity with international and regional standards in to meet them. ABC Members are playing a order to facilitate business community, tremendous role in improving Pakistan’s particularly SMEs. At present, PSQCA is economy. The Government is also paying developing the standards in the areas of attention to improve Law & Order situation in Agriculture & Food Products, Chemicals & this mega city. He said, earlier the ratio of Chemical Products, Textiles, Automobiles, mobile snatching and other Law & Order Halal Food, Mechanical, Electrical, Electronics, issues was high but our Law Enforcing IT/ICT, Civil etc. PSQCA’s strategy is to Agencies are curbing them and these standardize those industrial sectors which incidences are going down. have an impact on trade. For this reason, PSQCA is focusing more on Food, Halal Food, The Governor also said that endeavors and Automobiles, Healthcare, Services Sector, etc. measures are being adopted by the Federal Moreover, PSQCA has a network of testing Government with regard to promotion of laboratories in Karachi, Lahore and Peshawar health business activities especially with for testing of consumer products. On an reference to Sindh province. He also apprised average, laboratories of PSQCA handle more the audience that Federal Government has than 2000 samples of consumer products per notified an “Industrial Liaison Committee” to month. At present, PSQCA is enforcing 105 ease out the problems being faced by the products as mandatory to comply as Pakistan industrialists and businessmen in approaching Standards. Among these, 40 are food concerned ministries in Islamabad. products while remaining are non-food At the end of the session, President Mr. Jamal products. PSQCA is designated as National Mir thanked the participants and presented a Enquiry Point of TBT of WTO. He also said memento to the Governor of Sindh. that if someone has any query about standards, technical regulations, compliance • ABC Meeting with Director General, Pakistan procedures for import and export products, Standards and Quality Control Authority National Enquiry Point in PSQCA will provide (PSQCA) - December 12th, 2018 information to stakeholders accordingly.
Ms. Amna Daudi, Secretary General ABC, Some members also shared their issues in welcomed Mr. Abdul Aleem Memon, Director connection with the PSQCA for which the DG General, Pakistan Standards & Quality Control PSQCA provided answers. Authority (PSQCA) at ABC Office and thanked him for taking out time to meet the The meeting ended with a vote of thanks and ABC Members. After a brief introduction of Ms. Amna Daudi presented memento to the ABC, its members and contribution to the Chief Guest. national exchequer by the Secretary General, the Director General PSQCA thanked ABC for • ABC Lunch Meeting with Ambassador inviting him and said that ABC is a major Cameron Munter - January 14th, 2019 forum and partner in the economic growth of the country. He appreciated the positive role Mr. Jamal Mir, President ABC, welcomed the American companies are playing in the former U.S. Ambassador Cameron Munter various sectors of the economy. (President & CEO, EastWest Institute) and thanked him for taking out time to meet the The Director General PSQCA briefed ABC Members. After a brief introduction of members that Pakistan Standards and Quality ABC, its members and contribution to the Control Authority is the National Standards national exchequer, Mr. Mir said that his visit will
19 HIGHLIGHTS OF THE YEAR
improve relationship with the U.S. He added financial hubs for the United States because of that he was looking forward to learn more of which it is essential for Washington to U.S. strategy about Pakistan. He said that ABC maintain good ties with India and Pakistan. is ready to play its role for improvement in relationship between the two countries. He said the real way to link Pakistan and U.S. was through Non-Government Sectors, Ambassador Munter said that it is important Not-for-Profit institutions. The real challenge to think about the historical background of was to get the U.S. people to come to Pakistan the Pak-U.S. relations, but it is equally and the perception of the security situation. important to think about the future and try to speculate the strengths and possibilities of Ambassador Munter said that the U.S. wanted the future. He said that there was an to maintain strong relations with Pakistan due overemphasis on two problems: how the U.S. to which it has been cooperating with looks at Pakistan through an Afghan lens and Islamabad and has been investing in the how the rift between the two countries is Education Sector. made out to be an entirely bilateral issue. He said that each country has its own sets He also said it was the competence of the of problems. However, both the U.S. and Pakistan Army that made them a good Pakistan have enormous philanthropic partner for Washington, and cited the traditions. Each has a huge pool of talented example of the 2010 floods in Pakistan. He and educated people. Hence, they need to said that the U.S. granted funds to Pakistan utilize these assets, look at a long-term vision during the tenure of former president General and make an investment in the future. (R) Pervez Musharraf for curbing terrorism. The U.S. Consul General, Wagner, thanked the He further said that the U.S. also gave funds Ambassador and said that she had the for the promotion of education in Sindh and opportunity to work with the Ambassador in Baluchistan. Washington. She said Pakistan’s ties with United States are stronger, despite ups and The relations between U.S. and Pakistan have downs in the relationship, but we will work to always faced ups and downs and the U.S. promote trade and investment. She added feels Pakistan does not want to cooperate in that many of the U.S. companies working the war against terrorism. here are happy doing business in Pakistan. He also said that there is great opportunity in Members also shared their thoughts on the CPEC but it needs to be carefully checked. U.S. Pakistan relations and the questions were Moreover, Pakistan is likely to face debt addressed by Ambassador Munter. distress due to rising current account deficit and external obligations linked to CPEC. The The meeting ended with a vote of thanks and new government in Pakistan has already Mr. Jamal Mir presented souvenir to indicated it may pursue a bailout by the IMF, Ambassador Munter. which has raised concerns that Pakistan may use the bailout money to repay CPEC debt. • ABC visit to U.S. Embassy and meetings with the GoP Functionaries - February 6th and These financial crises illustrate China's 7th, 2019 debt-trap diplomacy and its Belt and Road Initiative to developing countries, as well as Meeting with U.S. Embassy O cials the curity threat they pose to the U.S. ABC Executive Committee’s annual visit to He also emphasized to make dialogue with Islamabad took place on February 6th and neighboring countries starting with India and 7th, 2019. The ExCom Members met the U.S. make business relationship with the people in Ambassador and USAID team. Indian Punjab and Mumbai, there is also more potential. Majority of people living in U.S. also The meeting with the USAID team members have the same desire. Karachi and Mumbai are included Helen M Pataki (Deputy Mission ABC ANNUAL REPORT ABC ANNUAL
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Director), Jeffery T Goebel (Director Meeting with Finance Minister - February Economic Growth and Agriculture), Kanwal 6th, 2019 Bokharey (Deputy Director, Innovation and Partnerships Unit) and a few other senior ABC Members met the Finance Minister, Mr. members from the USAID Department. The Asad Umar. The discussion included USAID team informed the ExCom Members of substantial increase of gas prices and the lack the private sector partnership they had of availability, which was seriously affecting worked on and some ongoing initiatives. the operations especially tile manufacturers. These include health services, agriculture and ABC Meeting with the President of Pakistan - employment for youth opportunities. February 7th, 2019 The lunch meeting with the Ambassador and The President was very supportive of all the Henry Ensher (Deputy Assistant Secretary) new investment being made by the American who visited from Washington, included talks companies and encouraged others to bring in on increasing the trade relationship with more investment. Pakistan as well as increasing Private Sector engagement. Together the countries could ABC Meeting with the Prime Minister - work on projects, which could be mutually February 7th, 2019 beneficial for both the countries. The delegation of the American Business Some of the factors which are hindering the Council expressed confidence in the policies progress of the country include high taxes of the Government. It termed the and corruption. Some members expressed Government's steps towards ease of travel to the IP issues which are being faced. These Pakistan and ease of doing business as include: exemplary.
• Low penalties and counterfeit increased Overall, the sentiments of the new government from 11% to 22% were pro-business with emphasis on promoting • Brand infringement ease of doing business. The delegation of the American Business Council comprised not only • Weak enforcement of laws ExCom Members but also CEOs and senior Pharmaceutical - The main setback for the executives from member companies. The Pharma Sector was that it is a highly group expressed its confidence in over-regulated market with no price increase. Government’s vision to create a more business-friendly environment. Addressing the However, there is a lot of hope pegged with ABC Members, Prime Minister said that his the new government - they are accessible government philosophy was committed to and open for dialogue. facilitate investors to increase their investment base in Pakistan. Meeting with Government The delegation suggested that the Housing O cials Scheme should use locally manufactured raw material to boost and promote local ABC Meeting with Chairman FBR - February 6th industries and also allow Pakistanis with foreign account holdings to invest in Pakistan ABC Members met Mr. Jehanzeb Khan, Banao Certificates, provided they can give Chairman FBR. Mr. Nadeem Lodhi, Chairman documented evidence of their holdings prior Finance & Taxation Sub-Committee discussed to the January 31st deadline. the points from the ABC budget proposal. The Chairman and his team were highly receptive Issues raised by the ABC Members during the to the suggestions and assured that they meeting were received positively and action would look into the recommendations by ABC. was taken within the next few days.
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The attendees were Finance Minister, Mr. which would help facilitate business. SECP’s Asad Umar, Advisor for Commerce, Razak current focus was to proactively facilitate Dawood, Special Assistants to the PM, Naeem business growth, support private capital ul Haq, Chairman Board of Investment, formation, improve access to formal financial Haroon Sharif and Secretary Commerce, products and interlink the capital markets Muhammad Younus Dagha. with the real economy.
ABC Meeting with Chairman IPO-Pakistan Chairman SECP presented overview of the Companies Act, 2017 and briefed members After a brief introduction of the ABC Members on the proposed amendments to the the Chairman IPO-Pakistan Mr. Mujeeb Ahmed Companies Act, 2017, its existing provisions Khan introduced himself by stating that he has and the amended provisions on the more than 30 years’ experience in Trade Reference: Section, Sub-section and Clauses. Development through Multilateral & Bilateral Trade Negotiations and Diplomacy, Chairman SECP addressed the members’ International Trade Laws, International and queries related to Companies Act, 2017. The Regional Trade Policy integration and session’s feedback was very positive and Implementation, Operations & Administration participants found it very helpful. in government domains. The Chairman informed members that The session ended with Mr. Jamal Mir IPO-Pakistan alone cannot implement the thanking the guests and presenting memento immense agenda of establishing an effective to the Chairman. IP regime, without the active support of all stakeholders. An effective communication • ABC Meeting with Ms. Michelle Crockett, U.S. campaign is required to be launched through Treasury Attaché - February 27th, 2019 at mass media in this respect. The media should ABC also highlight the violation of IP rights throughout the country and keep a close The meeting started with a round of liaison with IPO-Pakistan. introduction and Michelle wanted to understand the tax issues which U.S. • ABC Meeting with Chairman, Securities & companies were facing. Exchange Commission of Pakistan (SECP) and Following issues were pointed out in the other o cials - February 18th, 2019 at ABC meeting:
Mr. Jamal Mir, President ABC, welcomed Mr. • Withholding Tax on Distributors Farrukh H. Sabzwari, Chairman SECP, Mr. Aamir Ali Khan, Commissioner (CSD) and Mr. Distribution is a high turnover and low margin Abid Hussain, Executive Director (CSD). business and withholding tax makes doing business more difficult as amount of tax After a brief introduction of ABC by the withheld against payments to them falls President, its members and ABC’s under final tax. contribution to the national exchequer, the Chairman stated that one of the objectives of SECP was to promote ease of doing business Section Transaction Existing and address practical impediments faced by the Corporate Sector in implementation of 153(1)(a) Other Goods 4% the Companies Act, 2017. SECP had initiated Distributors of FMCG 153(1)ab 2% consultation process with stakeholders for (Excluding durable goods) amendments to the provision of the Act. Clause (24A) of Distributors of Cigarette The objective was to provide a level playing Part II of 2nd and Pharmaceutical 1% field and SECP was looking for suggestions Schedule products ABC ANNUAL REPORT ABC ANNUAL
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• Adjustment of Sales Tax on Pharmaceutical Audit and Support Services. SRB is also Inputs against Corporate Income Tax assisted by a strong IT team and a state-of-the-art Data Centre, capable enough Sales Tax paid on Pharmaceutical Inputs is to absorb, assimilate and store the data of all added to the product cost since the final the provincial taxes in Sindh. product is exempt from Sales Tax. In response to concerns expressed by members • Sales Tax on Packaging Material over issuance of notices, Chairman SRB assured that they would come up with a solution to this Sales Tax on Packaging Material is charged at particular issue so that no further notices are the rate of 17%. This Sales Tax is added to the issued to the concerned company which, as an cost of the product since the final product is entity, is neither involved nor a source for any exempt from Sales Tax. commercial activity.
• Time Limit of Service of Refund Order Referring to Sindh Workers Welfare Fund (SWWF) the Chairman said that SWWF is Section 170(4) of Income Tax Ordinance, levied on income and has no nexus with labor 2001 provides the commissioner with 60 days or worker. It is imposed on "Total Income" of from the receipt of refund application to pass an employer instead of pertaining specifically a decision in respect of that application. to that earned in Sindh.
• High turnover Sales Tax and tax on import of The Chairman SRB also requested members Plant and Machinery to share their individual pending matters to SRB so the issues could be resolved in the Companies face multiple audits during the best possible manner. year. The meeting ended with vote of thanks to the • ABC Meeting with Chairman, Sindh Revenue Chairman SRB and his team. Mr. Jamal Mir, Board (SRB) - March 14th, 2019 President ABC, presented memento to the Chairman SRB. Mr. Jamal Mir, President ABC, welcomed Chairman SRB and his team and thanked him • Workshop on ‘Building Trust in Organization’ for taking out time to meet ABC Members. - March 20th, 2019 After a brief introduction of ABC and its members, the Chairman SRB briefed A workshop on ‘Building Trust in members about the 18th Constitutional Organization’ was held at the ABC Amendment. The Government of Sindh (GoS) Secretariat. ABC invited Mr. Arshad Shamsi and the Sindh Revenue Board regulate who is a business consultant and certified matters relating to the fiscal and related happiness at work coach who believes economic policies: administration; organizations that make a positive impact on management; imposition; collection of taxes; people and planet are the organizations of duties; and other levies. By creating the future. HR leaders of the member organization (SRB) capable of enforcing the companies were invited. In his presentation tax system through application of modern he said that awareness is growing among techniques of information and developing consumers, employees, society and business automated system of collection and leaders that the current profit driven business assessment of tax and the matters ancillary model is no longer viable. Profit driven thereto in the Province of Sindh. companies have taken their toll on society, the environment and their employees. Only SRB is chaired by a Chairman who is assisted 15% of the world’s workforce is actively by 4 Members, one each for Taxation engaged at work. Stress, burn-out and (previously known as Operations), Tax Policy, depression are on the rise.
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He further said that it is time for a new story, region. Core areas of the Pre-Trade and in which purpose and happiness of Investment Framework Agreement included: employees are the license to operate. The foundation for this transition is ‘trust’. • Investment • Tax He also informed members that the current • Repatriation of Profits profit driven paradigm has created • Coordination of Federal and Provincial tremendous wealth for a few, but at a huge • Intellectual Property (IP) Protection cost for humanity and the planet: • Enforcement of Policy Board • Agriculture • 60 million Pakistanis are living below the • Digital Trade - IT Sector poverty line • Barriers to entry • Pharmaceuticals – U.S. Regulators • 70 liters of water is used to produce 1 liter of soft drink while 21 million Pakistanis have Various companies gave their inputs on the no clean drinking water business concerns which were being faced. • 70% of the workforce is just present and the AICT - Curbing of imports where almost a cost of presentism is 7x higher than the cost 30%-40% downturn in business was. of absenteeism MCR (Pizza Hut) - Companies like Pizza Hut Business created these problems and can where cheese is one of the main ingredients used. solve these problems. When you are purpose After adding the 17% tax and royalties of 25% the driven, problems turn into business viabilities of operations were questionable. opportunities. Other issues which were discussed were that Purpose driven organizations create value for only 5% of the royalty payment could be all stakeholders; customers; suppliers; legally remitted. If the payments exceeded employees; environment; and shareholders. the 5%, Pakistani Law did not allow that and Trust is a key ingredient for purpose driven other means would have to be used. organizations. For provinces especially Sindh and Punjab, Purpose driven happy organizations are more there is a difference in tax structure, productive, more creative, and more non-uniformity and inconsistency in policy. collaborative. They have a healthier and more Businesses operating in different provinces engaged workforce, attract and retain top talent were paying different taxes and it was hurting and are even more profitable in the long run. businesses.
In the workshop, participants learned about the The present government is very receptive science behind trust and how one can implement and listens. However, not much action is a culture of trust on which one can build taken to solve the prevailing issues. There high-performing and purpose driven teams. was also a recent discussion on the Webinar which took place. The participants felt quite enlightened after the workshop. • ABC North Members Meeting with USCG Lahore - April 24th, 2019 • ABC Meeting on Pre-Trade and Investment Framework Agreement (TIFA) - April 18th, 2019 Mr. Kamran Ataullah Khan (Vice President ABC & Chief Executive, DuPont), Mr. Syed The U.S. Consulate and Embassy were Safeeullah Shah (General Manager, Uber) and actively working to promote the U.S. Mr. Usman Qayyum (Managing Director & Companies. Afghanistan remains a top Chief Executive, Rafhan Maize) met U.S. priority area and Pakistan could play a major Consul General Lahore, Ms. Colleen role in promoting peace and stability in the Crenwelge, at the U.S. Consulate, Lahore. ABC ANNUAL REPORT ABC ANNUAL
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An introductory meeting was held to explore In addition to running successful businesses, possible synergies of working together. ABC Members with their global expertise and best practices are contributing significantly to • OSAC Karachi Chapter Meeting at U.S. enhancing social development in Pakistan. Consulate - May 2nd, 2019 The President ABC, Mr. Jamal Mir, thanked everyone for attending and making ABC’s U.S. Regional Security Officer, Shane L. Dixon, first CSR Day a success. He said, “This first invited ABC Members to OSAC Karachi step not just showcases our work, but Chapter Meeting held on May 2nd, 2019 at the encourages even greater involvement and U.S. Consulate. participation for the future - enhancing ABC’s contribution and commitment to the The U.S. Department of Homeland Security, in development of Pakistan.” collaboration with Pakistan Customs and Pakistan Federal Investigation Agency, • Meeting with Trade Representatives from presented an informational session on Washington D.C. - May 3rd, 2019 International Property Rights. The United States Trade Representatives • ABC CSR Day - May 2nd, 2019 from Washington D.C., Zeba Reyazuddin and ABC hosted its first annual ‘CSR Day’. The Erland Herfindahl visited ABC office on May theme was "Impacting Futures - Building 3rd, 2019. The Trade Representatives Communities" and showcased the work being discussed about doing business in Pakistan, carried out in the field of Corporate Social challenges and opportunities, trade Responsibility by American companies policy/enforcement/GSP etc. operating in Pakistan. Last year, ABC Members partnered with NGOs nationwide • ExCom Meeting with World Bank O cials - contributing over Rs. 570 million and May 6th, 2019 impacting more than 400,000 lives. ExCom Meeting with World Bank Officials In this first inaugural session to celebrate and was held on May 6th, 2019 at ABC office. The showcase their commitment to CSR, a following World Bank Officials participated: number of ABC Members highlighted various initiatives to support NGOs like Green 1. Gonzalo Varela (Senior Economist) Crescent Trust, Hunar Foundation, Indus Hospital, FESF (Deaf School), HOPE and 2. Christian Schoen (PrivateSector Specialist) many more. Through programs such as “Maseeha”, “WeSeeEqual”, Mitao Bhook”, in 3. Wafa Aranki (Senior Private Specialist) the sectors: Healthcare, Education, Women’s Empowerment, Special needs, 4. Bin Zhai (Private Sector Specialist) Environmental Conservation, Child Welfare and many others. The World Bank team is working on the “Pakistan Goes Global” initiative. The team is USAID Director, Michael Hryshchyshyn was working closely with the Ministry of present at the event and conveyed the Commerce, Government of Pakistan on how remarks of the U.S. Consul General in Karachi, to boost trade and competitiveness. JoAnne Wagner, when he said, “It is exciting to see that American companies are finding The purpose of the visit was to carry out the success here in Pakistan. But success for National Quality Infrastructure Diagnostic in American companies is more than just making order to: a profit. Success also means doing the right thing, giving back to the community, making • Assess the conditions of the Quality lives better for your customers, and being a Infrastructure (QI) ecosystem in Pakistan positive role model for others to follow.” through application of diagnostic
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• To do preparation work for CALIDENA, the An ABC reception to bid farewell to Ms. participatory methodology to help identify JoAnne Wagner, U.S. Consul General was and stimulate the demand of QI services in held on June 15th, 2019 in Karachi. Members a selected value chain and other guests participated.
They ask the ABC Members to have more • Secretary General’s Meeting with USAID insights on the challenges being faced with funded Pakistan Reading Project (PRP) - product/process quality and the current June 19th, 2019 offers of QI services (e.g. standards, testing, certification), for a better understanding of QI Secretary General shared that ABC member services demand in the country. organizations have jointly spent Rs. 800 million in CSR program over the last 3 years Some of the factors highlighted during the in Pakistan. discussion which were hindering growth and exports were: Representatives of USAID funded Pakistan • Global buyers were reluctant to come to Reading Project, Mr. Anjum Pervaiz (Head of Pakistan because of the rating the country Operations Sindh, PRP) and Mr. Akbar Jawad has. Getting travel insurance is also very (PPP Specialist, PRP) briefed Secretary difficult and the general perception that General about the work being done by the Pakistan is an “unsafe” country to do Pakistan Reading Project group. The business in Secretary General appreciated the great work and commitment of the group and possible • Other factors hindering competitiveness are avenues of partnership of the PRP group to profitability of exports increase literacy and reading skills of the underprivileged children in the country was • Support to firms productivity upgrading also discussed. • Coordination of public policies toward trade and investment competitiveness • ExCom Meeting with Secretary Investment Department, Government of Sindh held on • Pakistan lacks good quality human July 2nd, 2019 at Investment Department, resources and there is lack of technical FTC Center, Karachi training The Secretary, Department of Investment, • Some free trade agreements made by the Government of Sindh, Mr. Ahsan Ali Mangi, Government are also hurting business, and invited ExCom Members in his office. Mr. local industry cannot compete with Chinese Jamal Mir, President ABC and Mr. Maju products Mavalvala, Member ExCom attended the meeting. The main agenda of the meeting • Smuggling of goods from Iran was to collectively host an interactive session followed by dinner with the U.S. Consul • Farewell Iftar/Dinner in honor of U.S. Consul General, Chief Secretary Sindh and the General from Mr. Adnan Asad - May 26th, 2019 business community in Karachi in order to explore various investment opportunities Mr. Adnan Asad, Member Executive available in Sindh and to explore the U.S. Committee, hosted a farewell Iftar/Dinner in markets to further strengthen ties between honor of Ms. JoAnne Wagner, U.S. Consul the two countries. General Karachi on May 26th, 2019. Members and other guests participated. The Secretary Investment informed the President that Investment Department was • ABC Farewell Reception for USCG JoAnne established by the Government of Sindh with Wagner - June 15th, 2019 a broad-based aim of facilitating both local ABC ANNUAL REPORT ABC ANNUAL
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and foreign investors and to promote the The Governor SBP thanked the American untapped potential in different sectors of Business Council for organizing the meeting. economy. He said that Sindh Government has The Governor’s team included: Dr. Saeed already launched ease of doing business Ahmed, Chief Economist SBP; Mr. Muhammad portal for investors’ facilitation Ali Malik, Executive Director (FMRM) SBP; \(www.doingbusiness.org/en/data/exploreec and Mr. Syed Samar Husnain, Executive onomies/pakistan), where complete Director SBP. information is available for local and foreign investors as how to register their business The Governor began his speech by answering using a single window solution. the three most frequently asked questions. 1. Why has the State Bank taken tough • ExCom Meeting with Deputy Assistant economic adjustment measures? Secretary Erv Massinga visiting from 2. What are the key problems of Pakistan Washington held at USCG’s residence on and what has the State Bank done to July 10th, 2019 address these issues? 3. How does the State Bank see the future? An ExCom Meeting with Deputy Assistant Secretary, Erv Massinga, was held on July Dr. Baqir informed the participants that 10th, 2019. Mr. Massinga is heading Pakistan Pakistan was facing issues on the internal side desk in Washington. The agenda of the meeting was to discuss American and the external side. Pakistan’s biggest businesses/their sentiments and read the challenge was the current account deficit. The pace of business pulse, understand gap between foreign exchange receipts and challenges and opportunities and get advice foreign exchange requirement. It was a on how to collaborate better to improve matter of grave concern that the current commercial ties. account deficit structurally increased. He said that in December 2014, Pakistan’s current • ExCom Meeting with Consular Section Chief, account deficit was zero. In other words, the Ken Chavez and Nonimmigrant Visa Chief, foreign exchange needs and the country’s Sarah Cranston - on August 21st, 2019 foreign exchange resources were being met. By December 2017, the current account ExCom met Kenneth Chavez (Consular deficit had reached $2 billion per month. Section Chief) and Sarah Cranston (Nonimmigrant Visa Chief) on August 21st, The exchange rate was not adjusted in the 2019. The Chiefs of U.S. Visa Consulate last 3 years which resulted in a sharp decline wanted to understand some of the visa issues in foreign exchange reserve. With the being faced by ABC Members. exchange rate not being adjusted, the exports suffered. It was decided that a meeting would be set up for ABC Members so they could directly interact Governor SBP admitted that the economy of with the U.S. Visa team at the Consulate. Pakistan was weak, unemployment on the rise and inflation moving upwards. However, with the current economic policy, the country was • CEO Roundtable with Governor State Bank heading in the right direction. If Pakistan were held on August 26th, 2019 in Karachi to continue to move in this direction with commitment, Pakistan would achieve Mr. Jamal Mir, President ABC, welcomed Dr. prosperity. He further added that the Reza Baqir, Governor SBP and thanked him for economic team was working on a plan to taking out time to meet the ABC Members. strengthen the economy. The plan will help After a brief introduction of ABC, the President achieve economic development and benefit ABC requested the Governor to share his view the low-income and middle-class segments of on the country’s economic policy. the population.
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He emphasized that the biggest challenge DuPont’s Office, Lahore. In the evening, currently being faced was to bring continuity ExCom Members and a few Lahore-based and eliminate uncertainty of policies. If that members visited the Wagah Border. could be achieved, the country’s future outlook would be very positive. Later that evening, ABC hosted a dinner. The guest list included ABC North Members/ABF Members, The Government had initiated a reform some Punjab Government Officials. The dinner package, however, it affected general public was hosted to increase interaction and build since inflation had already scaled new peaks. greater engagement with the North members. On the other hand, incumbent Government’s • ABC Meeting with U.S. Consulate - Visa strategies to increase revenue though new Section Team (Karachi) - September measures coupled with unbridled inflation 19th, 2019 have pushed up interest rates and uncertainty. ABC Meeting with the U.S. Consular Section ABC Members also shared their thoughts and Chief, Ken Chavez and Sarah Cranston, asked questions relating to the current Non-immigrant Visa Chief was held on economic issues which are being faced. These September 19th, 2019. questions were addressed by the Governor and other senior SBP Officials. The highlights of the session were:
The meeting ended with a vote of thanks and • U.S. Visa Officers are trained to make the the ABC President, Mr. Jamal Mir, presenting process as fair, consistent and transparent souvenir to the Governor State Bank, as possible Dr. Reza Baqir. • Based on the US immigration law - the law • ABC Meeting with U.S. Economic Counselor - presumes that every applicant applying for August 29th, 2019 at ABC secretariat visa wants to reside/immigrate to the US unless they can prove it otherwise Ms. Peggy Walker, the new Economic • The passport must have a 6 months’ validity Counselor at the U.S. Embassy (Islamabad) before an applicant applies and renewing met ABC Members on August 29th, 2019. the visa should be done as early as possible After a quick round of introduction, she said - can even be a year before the visa expires she appreciated the talent that existed in Pakistan. She wanted to understand the • While assessing the applicant, the Visa overall economy especially the prospects of Officer looks at the following things: increasing trade and investment to the U.S. especially after the recent visit of the PM to > Travel history (last 5 years) Washington. She wanted to understand the > The ability to clearly state - articulate the different ways the U.S. could work with reason/purpose of travel Pakistan to make a difference. > Where and why is the applicant traveling > Duration of stay ABC Members shared their views and some of the concerns which are hampering growth • Currently interview dates being given are and productivity in the country. The meeting about a month after the applicant applies ended with a positive note and a word of for the visa. However, in some cases of thanks from the President. emergency, the interview date can be expedited - if there is a medical reason; • ExCom visit to Lahore and Dinner with death in the family; students who have to North-based Members - September 14th, 2019 join university; or if the passport has been lost or stolen ExCom Members visited Lahore on September 14th, 2019 and an ExCom Meeting was held at • Tourist visas are generally issued for 5 years ABC ANNUAL REPORT ABC ANNUAL
28 HIGHLIGHTS OF THE YEAR
• Supporting documents while applying for Meetings of the Executive Committee visa are generally not looked at since documents can be forged easily. However, The Executive Committee convened and it is recommended that the applicant carries participated in 46 meetings and events supporting document, in case the Visa during the period. It constituted 9 Officer asks for anything specific Sub-Committees, defined their Terms of Reference and gave policy directions from • Once a visa is rejected, one can re-apply if time to time. the applicant feels that the Visa Officer missed out some important detail On behalf of the Executive Committee
• While filling the visa application, there are sections - text boxes in the application where one can add in some additional information. The applicant can use that space to fill in important/relevant details so Ahmed Jamal Mir it can be reviewed by the Visa Officer prior President to the interview (useful tip)
Link for visa queries: [email protected]
Membership
(i) Enrolment of New Members:
Gray Mackenzie Restaurants International Ltd. April 5th, 2019 Pioneer Pakistan Seed Ltd. April 5th, 2019
(ii) Cessation of Old Members:
Coca-Cola Beverage Touchstone Communications
29 Program & Event Photo Gallery PROGRAM & EVENT PH OTOGALLERY
ABC Meeting with the U.S. Chargé d' Affaires – Oct 10th, 2018
ABC Members & guests during the meeting
Ambassador Paul Jones with the ABC Members & guests
31 PROGRAM & EVENT PH OTOGALLERY
ABC Meeting with the Chief CPLC – Nov 6th, 2018
Chief CPLC with the USCG and ABC Members
Chief CPLC presenting memento to the President ABC ABC ANNUAL REPORT ABC ANNUAL
32 PROGRAM & EVENT PH OTOGALLERY
ABC Meeting with the Chairman IPO-Pakistan – Nov 8th, 2018
Chairman IPO-Pakistan briefing to the ABC Members
Chairman IPO-Pakistan with the ABC Members & guests
33 PROGRAM & EVENT PH OTOGALLERY
ABC CEO Roundtable Meeting with the Governor Sindh – Nov 15th, 2018
ABC Members & guests with the Governor Sindh
ABC Members & guests with the Governor Sindh ABC ANNUAL REPORT ABC ANNUAL
34 PROGRAM & EVENT PH OTOGALLERY
ABC Meeting with Director General, Pakistan Standards and Quality Control Authority (PSQCA) – Dec 12th, 2018
DG PSQCA in discussion with members
SG ABC presenting memento to DG PSQCA
35 PROGRAM & EVENT PH OTOGALLERY
ABC Lunch Meeting with Ambassador Cameron Munter – Jan 14th, 2019
Ambassador Cameron Munter addressing the ABC Members
ABC Members & guests with Ambassador Cameron Munter ABC ANNUAL REPORT ABC ANNUAL
36 PROGRAM & EVENT PH OTOGALLERY
ABC visit to U.S. Embassy and meeting with the U.S. Ambassador, President & Prime Minister of Pakistan and Senior Government Officials – February 6th
ABC Meeting with Chairman IPO - Pakistan
ABC Meeting with President of Pakistan
37 PROGRAM & EVENT PH OTOGALLERY
ABC visit to U.S. Embassy and meeting with the U.S. Ambassador, President & Prime Minister of Pakistan and Senior Government’s Officials – February 6th
ABC Meeting with the President of Pakistan
ABC Meeting with the Prime Minister of Pakistan ABC ANNUAL REPORT ABC ANNUAL
38 PROGRAM & EVENT PH OTOGALLERY
ABC Meeting with the Chairman, Securities & Exchange Commission of Pakistan (SECP) and his team – February 18th, 2019
Chairman SECP in discussion with the ABC Members
President ABC presenting memento
39 PROGRAM & EVENT PH OTOGALLERY
10 - ABC Meeting with Ms. Michelle Crockett, U.S. Treasury Attaché – February 27th, 2019
Members & guests during the meeting
U.S. Treasury Attache briefing to members ABC ANNUAL REPORT ABC ANNUAL
40 PROGRAM & EVENT PH OTOGALLERY
ABC Meeting with Chairman, Sindh Revenue Board (SRB) – March 14th, 2019
Chairman SRB briefing the ABC Members
President ABC presenting memento to Chairman SRB
41 PROGRAM & EVENT PH OTOGALLERY
ABC CSR Day – May 2nd, 2019
ABC Members & guests during the session
ABC Members & guests during the session
Group photo - ABC Members & guests ABC ANNUAL REPORT ABC ANNUAL
42 PROGRAM & EVENT PH OTOGALLERY
ABC Farewell Reception for USCG JoAnne Wagner – June 15th, 2019
President ABC addressing the members & guests
The USCG addressing the members & guests
43 PROGRAM & EVENT PH OTOGALLERY
CEO Roundtable Meeting with the Governor State Bank, Dr. Reza Baqir held on August 26th, 2019
ABC Members and guests with the Governor State Bank of Pakistan
President ABC presenting memento to the Governor State Bank of Pakistan ABC ANNUAL REPORT ABC ANNUAL
44 PROGRAM & EVENT PH OTOGALLERY
ABC Meeting with the U.S. Economic Counselor - Aug 29th, 2019
U.S. Economic Counselor briefing to members
ABC Members during the meeting
45 PROGRAM & EVENT PH OTOGALLERY
ABC Meeting with U.S. Consulate – Visa Section Team (Karachi) – Sept 19th
Chief of U.S. Visa Section briefing to ABC Members
ABC Members with the U.S. Visa Section Team ABC ANNUAL REPORT ABC ANNUAL
46
REPORTS OF SUB-COMMITTEES REPORT OF THE AGRICULTURE AND FOOD/BEVERAGES SUB-COMMITTEE
Chairman Co-Chairman Mr. Imran Jehangir Nasrullah Mr. Adnan Asad Country Head Pakistan & Group Director Chief Executive Officer Cargill Pakistan Holdings (Pvt.) Ltd. Venus Pakistan (Pvt.) Ltd.
Members Mr. Usman Qayyum Members feedback for the position paper Chief Executive & Managing Director consisted the following: Rafhan Maize Products Co. Ltd. • Clear policy on GMO (Genetically Modified) Mr. Asad Abdulla import Director o Clear policy on GMO crops needs to be International Franchises (Pvt.) Ltd. (Dunkin devised – bio-safety assessment of Donuts) genetically modified crops (both for
sowing purposes as well as import of Mr. Muhammad Owais Siddiqui genetically modified oilseed crops such as Country Business Lead – Pakistan soybeans and canola for further Nutrition & Biosciences value-addition purposes) needs to be DuPont Pakistan Operations (Pvt.) Ltd. made much simpler.
Mr. Azeem Niazi • Difficulties for industry players wanting to Chief Executive & Government Lead engage in manufacturing activities - inability Monsanto/Bayer Pakistan (Pvt.) Ltd. to get manufacturing status under Sales Tax regime against toll manufacturing Mr. Jahanzeb Saeed Director Consumer Division o It was proposed that Government should Muller & Phipps Pakistan (Pvt.) Ltd. allow companies to register themselves – benefits would include utilization of Terms of Reference: currently un-utilized capacity in Pakistan, help in job creation, increase the tax base 1. Co-ordinate with members relating to the and reduce import bill. Agriculture and Food/Beverages sectors. Identify and define major issues pertaining to • Arbitrary imposition of import conditions on these sectors. seed import by the Department of Plant Protection (DPP) of Ministry of National 2. Develop a position paper on the issues Food Security and Research hindering timely identified and engage the relevant import of seed for commercial and research stakeholders. purposes
The activities of the Subcommittee are o DPP is requested to consult the industry summarized below: stakeholders before introducing new import conditions and establish All the issues/challenges which were being faced reasonable timelines for full enforcement by the industry were listed including the Food of the same. Standards/Regulations o Fulfillment of conditions is contingent • ABC position paper with the issues/proposal/ upon government to government benefits be made and presented to the correspondence which may take months Government. to complete. An interim arrangement is
49 REPORT OF THE AGRICULTURE AND FOOD/BEVERAGES SUB-COMMITTEE
necessary to ensure the continuity of seed o Ministry of Climate Change through the supply for some of the most critical crops, National Biosafety Committee (NBC) to including maize, rice and vegetables. The notify the application guidelines and Hybrid Maize seed introduced by Bayer expedite issuance of licenses to Crop Science and industry peers has been technology providers. instrumental in increasing yields by more than 3 times. More than 90% of maize o Lack of clarity on process has resulted in farmers in Punjab benefit from these high the accrual of millions of dollars of yielding seeds. demurrage and detention charges on grain imports. The time delay and • Issuance of license for import of GM additional costs have had a significant Agriculture commodities for Food, Feed and impact on the oil extraction and animal Processing feed industry.
As Chairman of the Sub-Committee, I wish to thank all members of the Sub-Committee and the ABC Secretariat for their support and cooperation during the year. ABC ANNUAL REPORT ABC ANNUAL
50 REPORT OF THE FINANCE & TAXATION SUB-COMMITTEE
Chairman Co-Chairman Mr. Nadeem Lodhi Mr. Gulzeb Khan Citi Country Officer Chief Financial Officer Citibank, N.A. Citibank, N.A.
Members Mr. Tariq Khan Mr. Umer Javed Director Finance & Company Secretary Financial Controller Muller & Phipps Pakistan (Pvt.) Ltd. Philip Morris (Pakistan) Ltd.
Mr. Mahad Hafez Mr. Arif Idrees Chief Financial Officer Country Finance Leader Chubb Insurance Pakistan Ltd. Procter & Gamble Pakistan (Pvt.) Ltd.
Mr. Muhammad Shahid Moten Terms of Reference: Associate Finance Director Eli Lilly Pakistan (Pvt.) Ltd. 1. Identify and develop positions on major issues related to Finance & Taxation. Mr. Agha Shah Walliullah Associate Director - Head of Legal & Corporate 2. Develop ABC proposals for the Federal Colgate-Palmolive Pakistan Ltd. Budget and Provincial Budget.
Mr. Kashif Shafi 3. Study major Government policy directives on Chief Financial Officer various matters related to Finance & Taxation, Pfizer Pakistan Ltd. concerning members of ABC and the American Business Community at large. Mr. Muhammad Kamran Amin 4. Ensure a level playing field for member Chief Financial Officer companies by actively and indiscriminately Al-Hamd International Container Terminal Ltd. perusing rules and regulations. Mr. Muhammad Ahsan Activities of the Finance & Taxation Assistant Manager (Accounts) Sub-Committee are summarized below: Cargill Pakistan Holdings (Pvt.) Ltd. • The Finance & Taxation Sub-Committee Mr. Jamshed Azhar sought input from ABC Members to prepare Chief Financial Officer an all-inclusive proposal for the Federal Abbott Laboratories (Pakistan) Ltd. Budget 2019-20. ABC submitted its proposals related to tax and procedural issues to the Mr. Shariq Saeed Baig Federal Board of Revenue (FBR), Ministry of Chief Financial Officer Commerce and the Board of Investment on IBM February 7th, 2019
Mr. Jawaid Siddiqui • The Sub-Committee worked closely with Financial Controller, DuPont secretariat staff to assist in Chamber finance DuPont Pakistan Operations (Pvt.) Ltd. related matters and submitted a budget proposal with the following points: Mr. Shahzeb Khan Accounting & External Reporting Lead (Pak) • Documentation of economy is important for Mondelez Pakistan Ltd. broadening the tax base
51 REPORT OF THE FINANCE & TAXATION SUB-COMMITTEE
• The non-productive sectors of the economy 14. Sales Tax adjustment - Service received from should be appropriately taxed non-resident
• Tax regime should be easy to comply with 15. Worker Profit Participation Fund (WPPF) thereby reducing administrative burden on the tax payers 16. Advance Tax Estimate – 147(6) 17. Exemption Certificate under Section 153(4) • Focus should be on direct instead of indirect taxation • Simplification
• There must be consensus amongst the federal 18. Multiple Notices to Taxpayers and provincial tax authorities 19. Multiple Withholding Tax Categories • High corporate and Sales Tax rates promote tax evasion 20. Issuance of Notice on IRIS
The Federal Budget 2019-20 proposals consisted 21. Incentives to Supply Chain Members the following: 22. Input Tax Credit on Services • Ease of doing business 23. General Reforms/Proposals 1. Multiple Audits conducted in the same year • Pharmaceutical 2. Reconciliation of Financial Statements 24. Transfer Pricing & Related Party Transactions 3. Time Limit of Service of Refund Order 25. Adjustment of Sales Tax on Pharmaceutical 4. CREST Inputs against Corporate Income Tax
5. Minimum Tax Regime Section 152 26. Sales Tax on Packaging Material
6. Duty Drawback on Export to Afghanistan 27. Sales Tax on Active Pharmaceutical Ingredients (APIs) 7. Confusion between Sindh WWF and Federal WWF • Manufacturing
8. Withholding Tax on Distributors Current Rates 28. Tax Credits to boost Investments for WH Tax 29. Additional categories to be covered under 9. Revision of Sales Tax Return [Section 26(3)] - Section 65B (Tax Credit on BMR) Delay in approval of revision return filings • Tobacco 10. Input Sales Tax Disallowances 30. Tax Structure 11. Advances included in the definition of Supply 31. Enforcement against Illicit Manufacturers 12. Tax Collection and Revenue Leakages • Ceramics 13. Withholding Tax Exemption on Raw Material Import under SRO 717(1)/2014 32. Duties on Raw Material ABC ANNUAL REPORT ABC ANNUAL
52 REPORT OF THE FINANCE & TAXATION SUB-COMMITTEE
33. Turnover Tax Achievement of the Finance & Taxation Sub-Committee last year: 34. Local Manufactures Inputs of the ABC budget recommendations were 35. Smuggling of Tiles considered by the Government and the Finance Bill proposed to prescribe a mechanism to pay 36. Sales Tax Rate income tax refunds through ‘income tax refund bonds’ which would be issued by FBR Refund • Non-Profitable Organization Settlement Company Limited. During the year, the Council met with the Prime 37. Approval for status of NPO Minister, Ministry of Commerce and FBR.
• Others
38. Under Invoicing
39. Royalty Payments
As Chairman of the Sub-Committee, I wish to thank all members of the Sub-Committee and the ABC Secretariat for their support and cooperation during the year.
53 REPORT OF THE INDUSTRY & TRADE SUB-COMMITTEE
Chairman Co-Chairman Mr. Irshad Ali Kassim Mr. Farhan Ahmed Chairman Manager Regulatory Affairs Karam Ceramics Ltd. Philip Morris (Pakistan) Ltd.
Members Mr. Zahid Hussain the removal of discriminatory Rules and Director Materials Management, Abbott Regulations. Abbott Laboratories (Pakistan) Ltd. Activities of the Industry & Trade are Mr. Ahsan Sarwar summarized below: Executive Director Al-Hamd International Container Terminal ABC suggestions for the Trade Policy 2019-20 (Pvt.) Ltd. The Sub-Committee discussed and addressed Farrukh Zaheer issues and suggestions received from members, Trade Head and based on these finalized suggestions for the Citibank, N.A. Trade Policy 2019-20, forwarded them to the Federal Government on February 7th, 2019. Mr. Humayun Akhlaque Global Technology Services Manager IBM Executive Summary of suggestions for Trade Policy 2019-20 Mr. Danish Shah Associate Director Sales • A 2% extra duty being charged at the time of Procter & Gamble Pakistan (Pvt.) Ltd. import of raw material which was added by the Ministry of Finance still continues for the Mr. Nabeel Turabi last year, needs to be abolished Property & Casualty Manager Chubb Insurance Pakistan Ltd. • A turnover tax of 2% is charged to the new industries, which should be abolished in Terms of Reference: totality to boost industrialization
1. Study major Government policies related to • Pakistan Industries charge one of the highest Trade, Industry (incl. Import & Export), and Sales Tax, which is between 18-21% to the Environment, impacting members of the Industry (Manufacturers). Sales Tax is a tax ABC and the American Business Community which is equivalent to VAT, which is to be at large. paid by the end user and not by the manufacturer. Due to weakness in the system, 2. Identify and develop positions on major issues this burden is added on to the manufacturer related to Government procedures, policies and enactments affecting Trade, Industry, etc. • The tariff rates of Gas and Electricity are highest in the region as compared to 3. Develop ABC suggestions for Import and Indonesia, Sri Lanka, Bangladesh Export Policies and overall Trade Policy. • Industrialization needs to take place in order 4. Ensure a level playing field for member to curtail poverty level and eliminate the companies in Trade & Industry by lobbying for ultra-poor from our society ABC ANNUAL REPORT ABC ANNUAL
54 REPORT OF THE INDUSTRY & TRADE SUB-COMMITTEE
Trade Policy sector-wise Government Policies Shipping and Logistics which are impacting business are as follows: Mining and Minerals Industry Ceramic Industry The mineral contribution to the total GDP can be increased 10%-20% in the next ten years if • High duty on Raw Material makes proper policies are put in place. manufacturing non-competitive • Abolishment of Turnover Tax Industrial Power Tariffs • Sales Tax is highest in the region Lower cost of production would lead to more • High Tariff Rates of Gas and Electricity competitive Pakistani exports, which would drive elimination of trade deficit. Food & Beverages Regional Competitiveness of Pakistani Ports • Imposed charges on depletion of ground Other ports like Jebel Ali, Port Hammad, Port water of Salalah etc. are handling much larger volumes than Karachi Port and Port Qasim. Information Technology This is primarily due to higher port costs and terminal handling charges at Pakistani ports. • Long Visa processing duration of foreign consultants Tobacco Industry • Cumbersome documentation for imports on IT maintenance Tobacco Taxes and Illicit Cigarette Trade Pakistan faces a critical challenge with the Insurance Industry wide presence of cheap illegal cigarettes, • Attract FDI in Insurance Sector/Branches of which currently stands at 33% market share. International Insurance Companies The Government has lost more than PKR 100 • Allowing international insurers to set up billion in excise revenues during the past 3 branches in Pakistan would attract FDI and years due to these illicit cigarettes and the will be a step towards growing, strengthening primary reason for their existence is the tax and developing the Insurance Sector driven price differential between legal and • Permission of Direct Settlement for Travel illicit brands (currently at 130%). Insurance Claims in Non-Schengen Countries • Removal of prequalification of Reinsurers by Potentially generate additional cigarette State Reinsurer excise revenue for the Government to the • Need for Holistic Approach to Regulations by tune of PKR 35-40 billion. SBP and SECP/Reinsurance from Regional Countries Improving Tobacco Exports For Pakistani tobacco to be competitive in the Pharmaceutical and Healthcare international market, the Government has to ensure that the Minimum Indicative Price • High taxes and regulated pharma market (MIP) is calculated as per the ground realities make the industry non-competitive and in-line with inflation.
As Chairman of the Sub-Committee, I wish to thank all members of the Sub-Committee and the ABC Secretariat for their support and cooperation during the year.
55 REPORT OF IPR, LEGAL & GOVERNMENT RELATIONS SUB-COMMITTEE
Chairman Co-Chairperson Mr. Adnan Asad Ms. Amar Abbasi CEO Head of Legal and Government Relations Leader Venus Pakistan (Pvt.) Ltd. Procter & Gamble Pakistan (Pvt.) Ltd.
Members Mr. Omar Callea Terms of Reference: Head of Legal Mondelez Pakistan Ltd. 1. Identify key IPR and counterfeit issues impacting ABC Members and work on Ms. Aiza Khawaja programs and actions intended to influence Attorney legislation related to IPR in both Pakistan and IBM the U.S..
Mr. Zubair Yaqub 2. Raise awareness on illicit trade, IPR violation Manager ITS&P and counterfeit and its impact on Government Philip Morris Pakistan Ltd. revenues, product quality and consumer health & safety. Mr. Munaf Hussain Lakda Director Legal & Admin 3. Create a liaison with relevant Government Muller & Phipps Pakistan (Pvt.) Ltd. offices both Provincial and Federal and establish a platform for discussion for ABC Mr. Cyrus F. Kanga and its members. Executive Director Al-Hamd International Container Terminal (Pvt.) Ltd. 4. Advise on matters having legal implications for ABC Members and the Chamber. Mr. Muhammad Ali Aamir Corporate & Govt. Affairs Manager Activities of the Sub-Committee are summarized Mondelez Pakistan Ltd. below: Ms. Seema Khan Guest speaker sessions to improve legal Director Regulatory Affairs awareness and improve Government connections. Abbott Laboratories (Pakistan) Ltd. Members also discussed: Mr. Shaharyar Siddiq AVP & Legal Counsel 1. Redundancy of IPR Laws - specifically, Citibank, N.A. penalties in the law for IPR violations continue to be extremely low, failing to act as a Ms. Sana Iftikhar reasonable deterrent to IPR Director Legal violators/counterfeiters. Pfizer Pakistan Ltd. 2. Long length of litigation/IPR disputes before Mr. Agha Shah Walliullah the tribunals, again failing to be a strong Associate Director, Head of Legal & Corporate deterrent for violators. Colgate-Palmolive (Pakistan) Ltd. 3. Very expensive private agencies charging an Mr. Jawaid Siddiqui arm and a leg with counterfeit prevention Financial Controller activities/research/raids, whereas this should DuPont Pakistan Operations (Pvt.) Ltd. be essentially the Government’s job. ABC ANNUAL REPORT ABC ANNUAL
56 REPORT OF IPR, LEGAL & GOVERNMENT RELATIONS SUB-COMMITTEE
Visit of Chairman IPO-Pakistan at ABC property management has assumed a critical role Secretariat as a major driver of wealth creation in competitive economies. The realization that IP is a Mr. Mujeeb Ahmed Khan, Chairman IPO-Pakistan powerful driver of innovation and creativity for and his team visited the ABC Secretariat on wealth creation is immensely growing in the November 8th, 2018. After a brief introduction of world. He also said that in order to effectively ABC and its members, the IPOP delegation were utilize the IP mechanism for national wealth briefed that ABC is active for improvement and creation, IPO-Pakistan made it a foremost implementation of intellectual property rights in responsibility to address institutional weaknesses the country. which were impeding an efficient utilization of IP System in Pakistan. Mr. Mujeeb Khan thanked the participants and said that it is his priority to develop commercial At the end of the meeting he said that a lot of business relationship with the business efforts are required to be made to eliminate the community in Karachi. menace of counterfeiting and piracy from top to bottom in the country. To resolve and seek The Chairman IPO-Pakistan further briefed cooperation of all the stakeholders, we have all members that in this era of knowledge-based the potential and experience to meet the economies, intellectual property is a major driver confidence reposed by the Government to better of any nation’s wealth, through protection and serve the nation for economic development and promotion of innovation and creativity. In the fair trade practices. backdrop of ongoing globalization, intellectual
As Chairman of the Sub-Committee, I wish to thank all members of the Sub-Committee and the ABC Secretariat for their support and cooperation during the year.
57 REPORT OF THE IT & INNOVATION SUB-COMMITTEE
Chairman Mr. Safee Shah General Manager Uber Technology Systems Pakistan (Pvt.) Ltd.
Members Mr. Nadeem Elahi 2. Engage with public and private entities to Managing Director improve Pakistan’s ease of business by TRG (Pvt.) Ltd. focusing on the following themes:
Mr. Ahsan Sarwar a. Create a business-friendly environment Executive Director (policy, licensing, regulation & ACTs). Al-Hamd International Container Terminal (Pvt.) Ltd. b. Enhanced physical access to Pakistan (visa processes, risk perception). Mr. Ahmed Rauf Rehmani Director IT c. Streamline IT exports and imports. Colgate-Palmolive (Pakistan) Ltd. d. Attract greater FDI on the back of Mr. Jibran Jamshad material improvement in ease of business. Country Education Lead 3. Both new and existing business models Microsoft Corporation depend on the sensible tax regimes that have a long-term view on emerging sectors and Mr. Bilal Khan business models. This Sub-Committee will Head of BI & Data Science Practice work with the Government to achieve IT and Teradata Global innovation-friendly tax frameworks.
Mr. Asif Peer 4. Payments are core to IT & Innovation, an area CEO where this Sub-Committee will work with Systems Ltd. members and external stakeholders to achieve a payment-friendly environment in Mr. Shoaib Qureshi Pakistan. This will include: Client Technical Architect IBM 5. B2B and B2C payments, including digital payments. Mr. Zafar Ul Islam Lead Technology Strategist 6. Requisite framework and transaction clarity Microsoft Corporation for offshore companies.
Mr. Adeel Qaiser 7. Growing the local IT industry and fostering Country Consulting Leader innovative partnerships (universities, Teradata Pakistan vocational training) to improve human capital and promote entrepreneurship. Terms of Reference: 8. Create seamless and effective mechanisms for 1. Promote an effective understanding of this Sub-Committee to engage and integrate privacy, cybersecurity, and data security with IT & Innovation task forces and (physical and cloud) amongst IT & Innovation ecosystems, including public, private, and stakeholders in Pakistan. international stakeholders. ABC ANNUAL REPORT ABC ANNUAL
58 REPORT OF THE IT & INNOVATION SUB-COMMITTEE
In the first meeting of the Sub-Committee, it d. Robust technology infrastructure available was decided that members will send input on to international businesses interested in any issues being faced by the IT Industry, how establishing business operations in the Government can help, and how it would Pakistan. contribute to the economy/exports/national exchequer. 2. Improve Pakistan’s technology-oriented human capital reserves by: Activities of the Sub-Committee are summarized below: a. Encouraging local and multinational businesses to provide opportunities for The Sub-Committee identified some of the other the development of human capital, such factors that the committee could discuss, as hands-on training, technology including: certification, etc.
• How to boost IT Exports b. Providing recommendations to relevant Federal and Provincial Government • How to promote the IT Industry Organizations to help them modernize their Computer Science and IT curricula. • Difficulties the IT Sector faces at both Provincial and Federal levels 3. Encourage local entrepreneurship and innovation by: The Sub-Committee also prepared suggestions for submission to the concerned Government a. Providing physical resources and sharing functionaries, including: expertise with start-ups to accelerate the development of ideas into high-quality, • Simplify documentation and facilitate imports marketable products and services. of IT maintenance parts b. Engaging young innovators and • Expedite Pakistan entry visas for foreign discovering new talent by organizing consultants coding competitions, hosting hackathons, and rewarding creative problem-solving. ABC summary of suggestions for IT & Innovation Policy 2019-2020: 4. Request the State Bank of Pakistan to amend their policies and procedures regarding 1. Use reputable third-party reports, remittances out, which are a source of promotional material, Government challenges for Pakistani businesses that cooperation, and other methods to improve export IT products and services. Pakistan’s brand value and market its strengths to foreign governments, investors, 5. Request the Securities & Exchange and businesses, including: Commission of Pakistan (SECP) to simplify the registration of businesses for a. Attractiveness of Pakistan as a technology multinationals by providing convenient business destination. one-window service. b. Improvement in Pakistan’s security and sociopolitical climate. 6. Provide recommendations to public and private-sector stakeholders for improving c. Ample supply of academics and educated Pakistan’s technology and resources in IT. telecommunications infrastructure.
59 REPORT OF THE IT & INNOVATION SUB-COMMITTEE
7. Coordinate with local government and foreign 9. Provide suggestions to local government on a embassies/consulates to expedite visa way forward for having Pakistan removed processing for Pakistani IT professionals. from the FATF greylist.
8. Coordinate with local government foreign payment processing organizations, and other relevant stakeholders to allow/simplify the processing of B2B and B2C payments to or from buyers and sellers in Pakistan.
As Chairman of the Sub-Committee, I wish to thank all members of the Sub-Committee and the ABC Secretariat for their support and cooperation during the year. ABC ANNUAL REPORT ABC ANNUAL
60 REPORT OF THE MEDIA, PR, PROGRAMS & CSR SUB-COMMITTEE
Chairman Co-Chairman Mr. Ahmed Jamal Mir Ms. Claudia Manuel Managing Director & CEO Corporate Communications Manager Prestige Communications (Pvt.) Ltd. Procter & Gamble Pakistan (Pvt.) Ltd.
Members Mr. Nadeem Inam Ul Huq 4. Regular communication highlighting Managing Director Corporate Social Responsibility (CSR) International Learning Centre (Pvt.) Ltd. (Berlitz) achievements of member companies to create a positive perception of U.S. Mr. S. Nasir Imam Bukhari companies operating in Pakistan. Country Lead Public Affairs & Communication Pfizer Pakistan Ltd. 5. Create and facilitate partnerships between ABC member companies and suitable Mr. Shaukat Khokhar deserving philanthropic organizations to Country Leader One Channel - Global Business encourage greater interaction, awareness and Partner IBM support.
Mr. Agha Shah Waliullah Activities of the Sub-Committee are summarized Director & Head of Legal & Corporate below: Colgate-Palmolive (Pakistan) Ltd. • The Sub-Committee discussed plans to Mr. Farhan Ahmed organize a CSR Day General Manager Regulatory Affairs On May 2nd, 2019 ABC hosted its first annual Philip Morris (Pakistan) Ltd. ‘CSR Day’. ABC Members showcased the work carried out in the field of Corporate Social Ms. Rashna Spencer Karanjia Responsibility. Last year ABC Members Al-Hamd International Container partnered with NGOs nationwide and Terminal (Pvt.) Ltd. contributed over Rs. 570 million, impacting more than 400,000 lives. Terms of Reference: The inaugural session celebrated and 1. Positively project ABC to key stakeholders showcased the commitment of American and create awareness of key issues through Companies to CSR. ABC Members various ABC events, activities and media highlighted various initiatives to support engagement. NGOs like Green Crescent Trust, Hunar Foundation, Indus Hospital, FESF (Deaf 2. Propose a plan to invite high profile guest School) and HOPE, through programs such as speakers to address ABC Members on current “Maseeha”, “WeSeeEqual”, Mitao Bhook” in issues or subjects of general business interest. sectors like: Healthcare, Education, Women’s Economic Empowerment, Food Security, 3. Propose a plan for the ABC Economic Summit Environmental Conservation, Child Welfare and recommend high profile speakers and and many others. invitees for the event. Work with ABC Secretary General to plan and manage the USAID Director, Michael Hryshchyshyn, chief event. guest at the event, conveyed the remarks of the U.S. Consul General in Karachi, JoAnne
61 REPORT OF THE MEDIA, PR, PROGRAMS & CSR SUB-COMMITTEE
Wagner, when he said, “It is exciting to see networking sessions including CEO that American companies are finding success roundtables. The Sub-Committee agreed to here in Pakistan. But success for American schedule guest speaker programs/CEO lunch companies is more than just making a profit. meetings at least once every two months. Success also means doing the right thing, giving back to the community, making lives These events were prominently covered by better for your customers, and being a the leading TV networks and newspapers, positive role model for others to follow.” The creating a space and image of ABC as a Sub-Committee emphasized the need to prominent stakeholder in the economic create linkages between NGOs and ABC sphere e.g. Two major TV networks sought Members to gain support for the initiatives the opinion of the ABC President on their undertaken by these NGOs. Prime Time Political & Economic Affairs shows during the Prime Minister of Pakistan’s visit to The Chairman worked closely with the ABC the USA in July 2019. Secretariat during the year and held forty-six
As Chairman of the Sub-Committee, I wish to thank all members of the Sub-Committee and the ABC Secretariat for their support during the year. ABC ANNUAL REPORT ABC ANNUAL
62 REPORT OF THE MEMBERSHIP & NORTH MEMBERS’ SUB-COMMITTEE
Chairman Mr. Kamran Ataullah Khan Chief Executive DuPont Pakistan Operations (Pvt.) Ltd.
Members Mr. Asif Ahmed In the first meeting of the Sub-Committee, Mr. Country Sales Manager Kamran Khan recommended on approaching a IBM few companies for membership, including:
Mr. Muhammad Kamran Amin • DOW, Pioneer, Corteva as well as Regus Head of Finance Al-Hamd International Container Terminal (Pvt.) Ltd. • The discussion revolved around what ABC could do to make it more active in the North. Since Terms of Reference: most of the activities centred around Karachi. Some of the suggestions to activate the North 1. To oversee and review the membership was to have an ExCom meeting in Lahore criteria for ABC. • This could be followed by a dinner 2. Pursue a membership drive to seek new • Other ideas included to have the agriculture members for ABC. and food meeting in Lahore 3. To facilitate the presence and close • Mailing ABC Annual Report and Membership interaction of ABC in the North Region. Form to potential ABC Members 4. To have a close liaison with the Pakistan ExCom visit to Lahore and Dinner with Government functionaries for advocacy North-based Members - September 14th resolution of all ABC issues. The ExCom Members visited Lahore on 5. To have a close liaison with U.S. Govt. September 14th; later that evening ABC hosted a members for advocacy and resolving ABC dinner. The guest list included ABC North issues as and when required. Members/ABF Members and some Punjab Government Officials. The dinner was hosted to Activities of the Membership Sub-Committee are increase interaction and build greater summarized below: engagement with the North Members.
As Chairman of the Sub-Committee, I wish to thank all members of the Sub-Committee and the ABC Secretariat for their support and cooperation during the year.
63 REPORT OF THE PHARMACEUTICAL & HEALTHCARE SUB-COMMITTEE
Chairman Co-Chairman Mr. S. Anis Ahmed Mr. S.M. Wajeehuddin Managing Director Country Manager & Chief Executive Abbott Laboratories (Pakistan) Ltd. Pfizer Pakistan Ltd.
Members Dr. Raeef uddin Ahmed He said that the Pharma Industry is a highly Director Medical and Market Access regulated industry and there had been no price Abbott Laboratories (Pakistan) Ltd. increase since 2001. There were a lot of cases under litigation and under the SRO 1002 about the Mr. Raza Saeed Abbas 15 percent hike in medicine prices and there was a Medical Lead stay order issued. However, post Supreme Court Eli Lilly Pakistan (Pvt.) Ltd. directives things looked slightly positive.
Mr. Saqib Zia There was a discussion to actively engage and set Head of Marketing up meetings with: Procter & Gamble Pakistan (Pvt.) Ltd. 1. Ministry of NHSR&C Mr. Mujeeb Ali Khan 2. CEO of DRAP Director Pharma 3. Federal Minister Muller & Phipps Pakistan (Pvt.) Ltd. 4. Secretary Narcotics Mr. Muhammad Owais Siddiqui Country Business Lead – Pakistan The Sub-Committee also prepared a position DuPont Pakistan Operations (Pvt.) Ltd. paper and the salient features were:
Terms of Reference: • McKinsey & Company termed the pharmaceutical industry as one of 3 potential 1. Pharmaceutical Industry to identify issues and “sunrise” industries with an exports potential develop metrics on how to solve issues: of USD 1 billion
• Pricing • It is highly regulated with a price-controlled • Availability of product regime and has an estimated annual turnover • How to expedite registration of approx. USD 3.1 billion • Contract manufacturing • Serialization/barcoding • US companies such as Abbott Laboratories, Eli Lilly and Pfizer are pioneers and market 2. Ensure a level playing field for member leaders in Pakistan’s pharmaceutical industry. companies in these sectors. In 2017, MNC pharmaceutical companies alone paid more than PKR 15 billion in tax and 3. Engage with the regulatory authorities and invested USD 100 million in Pakistan key stakeholders to highlight the major challenges and concerns facing ABC member • The multinationals account for 44.3% of the companies. market in value and 44.7% of the market in volume The activities of the Sub-Committee are summarized below: • The Pharma Industry is the largest employer of university graduates in urban and rural In the first meeting of the Sub-Committee there areas, providing employment to over 4 million was an update given by the Chair Mr. Anis Ahmed. people including many females ABC ANNUAL REPORT ABC ANNUAL
64 REPORT OF THE PHARMACEUTICAL & HEALTHCARE SUB-COMMITTEE
Reforms required: industry assuring that these SOPs result in access of quality medicines to the patients. The regulatory environment for the Pharmaceutical Industry needs to be aligned in Patent infringement/Counterfeits stepwise manner with global industry trends if the industry is to develop and survive in an Intellectual Property Right (IPR) violations are a exceedingly competitive environment. serious threat to research based pharmaceutical companies resulting in widespread distribution of Adopt International Standards counterfeit and sub-standard drugs. In 2012, Intellectual Property Organization was formed Develop Policies/SOPs in collaboration with the but its proper functioning is yet to take effect.
As Chairman of the Sub-Committee, I wish to thank all members of the Sub-Committee and the ABC Secretariat for their support and cooperation during the year.
65 REPORT OF THE SECURITY SUB-COMMITTEE
Chairman Co-Chairman Mr. Norbert Almeida Mr. Malik Muhammad Zaheer Senior Manager - Global Security - Area Security Manager MEA & Pakistan Mondelez Pakistan Ltd. Procter & Gamble Pakistan (Pvt.) Ltd.
Members Col. (R) Chaudhry Muhammad Sabahuddin 2. To identify and maintain contacts within the Sr. Vice President CSIS Government, Rangers, Police, CPLC and Citibank, N.A. Army, to be shared with all members.
Col (R) Syed Asif Iqbal Zaidi 3. To share information on security threats, Head of Security advisory notes and best practices regarding Abbott Laboratories (Pakistan) Ltd. safety measures amongst the Sub-Committee and larger membership as required via Col. (R) Toqir Raza Shah WhatsApp alert list/google groups. General Manager Administration & Security Muller & Phipps Pakistan (Pvt.) Ltd. 4. Meeting once in every two months. Mr. Ahsan Zamir Siddiqi 5. Awareness sessions every 6-month Senior Manager Admin. & Marketing Services (February/August). Eli Lilly Pakistan (Pvt.) Ltd. Activities of the Sub-Committee are summarized Mr. Muhammad Murtuza Kazi below: Claims Manager Chubb Insurance Pakistan Ltd. • The Sub-Committee decided that a group for Mr. Filraz Siddiqui security alerts would be created, member Director Security company wanting to join would send in the Pfizer Pakistan Ltd. name, designation and company name to the following number: 0312-333-3369 Mr. Yar Muhammad Head of Security • ABC Security Google Group was also Philip Morris Pakistan Ltd. activated.
Mr. Ghulam Abbas • Few security update meetings at the time of Security Consultant air raids with India took place. IBM • U.S. Regional Security Officer invited ABC Mr. Rehan Naseer Members for the Overseas Security Advisory Facility Services Leader Council (OSAC), Karachi Chapter. Meeting DuPont Pakistan Operations (Pvt.) Ltd. was held at the U.S. Consulate. The U.S. Department of Homeland Security Terms of Reference: collaborated with Pakistan Customs and 1. To create a forum via which ABC companies Pakistan Federal Investigation Agency are able to access effective information and presented an informational session on contact the appropriate resources when the International Property Rights. The need arises. informational session was well attended.
As Chairman of the Sub-Committee, I wish to thank all members of the Sub-Committee and the ABC Secretariat for their support and cooperation during the year. ABC ANNUAL REPORT ABC ANNUAL
66 ABC REPRESENTATION
ABC was represented on the following Councils/Committees:
1. POLICY BOARD OF THE INTELLECTUAL PROPERTY ORGANISATION OF PAKISTAN President ABC
2. POLICY BOARD OF THE BOARD OF INVESTMENT (BOI) President ABC
3. ADVISORY COUNCIL OF THE MINISTRY OF COMMERCE President ABC
4. ADVISORY COUNCIL OF GHE MINISTRY OF FINANCE President ABC
3. PROVINCIAL COMMITTEE ON INVESTMENT (SINDH) President ABC
4. FEDERATION OF PAKISTAN CHAMBERS OF COMMERCE & INDUSTRY (FPCCI)
a) EXECUTIVE COMMITTEE Mr. Adnan Asad CEO Venus Pakistan (Pvt.) Ltd.
b) GENERAL BODY
Corporate Class Mr. Adnan Asad CEO Venus Pakistan (Pvt.) Ltd.
Associate Class Mr. Muhammad Iqbal Shekhani Chief Executive Officer Johan (Pvt.) Ltd. (Culligan)
67 ABC MEMBERS’ CSR ACTIVITIES ABC MEMBERS’ CSR ACTIVITIES
Al-Hamd International Container Terminal (Pvt.) Limited
AICT has been engaged in multiple CSR activities at di erent levels throughout the year. “Educating Pakistan” was an initative which AICT did this year. According to the Educational, Scientific and Cultural Organization of United Nations (UNESCO), Pakistan has the world’s second-highest number of Out-Of-School
AICT continues to serve as the guardian angels for Sirat Ul Jannah by providing for the orphans housed there where all their basic needs such as Children (OOSC) with an estimated 22.8 million education, electricity, gas, water, healthcare and children aged 5-16 not attending school, much more are covered. Sirat Ul Jannah as of representing 44 per cent of the total population today houses 150 children between the ages of 3 in this age group, and the numbers are increasing and 20 years. AICT ensures that any child staying with the passage of each year. Keeping this in there lives a well-balanced life. An integral part of view, AICT came up with the initiative “Educating their daily life is a rigorous school and activity Pakistan” in which their core focus was to provide schedule just like living with a family. A typical maximum number of children with education. day consists of the younger children going to an AICT is bearing expense for educating up to a English medium school like Paris Model School total of 150 and DA School and the older children going to children in a year Karachi University, followed by Quranic education spanning through and tuitions to assist in their schoolwork. The di erent forums, children, during their free time, are allowed to along with stimulate their creative imagination through many providing on site activities along with a large play area on necessary the roof. To create an environment of love, the education. AICT children are taught to be sensitive towards the has also arranged needs of others. As they grow up, the children are to provide home economics encouraged to start their practical life. activities to grown-up girls to Along with this AICT has also taken over help them earn responsibility of covering monthly expenses of their bread and individual women who have no family to support butter through them. (stitching, baking etc.) and compete AICT along with its employees is committed to in the world. bring a positive change within the community.
69 ABC MEMBERS’ CSR ACTIVITIES
Captain-PQ Chemical Industries (Pvt.) Ltd.
Captain-PQ Chemical Industries o ers its patronship to various Corporate Social Responsibility (CSR) initiatives. The most prominent of these initiatives are the Captain Foundation and the i-Care Foundation founded in 1955. It is funded entirely by Captain Industries and supports a TB Clinic in Lahore as well as a Medical Dispensary in Faisalabad. These include:
The Layton Rehmatullah Benevolent Trust, The Pakistan Human Development Fund, The Kidney Centre, Marie Adelaide Leprosy Centre, Shaukat Khanum Memorial Trust, Ida Rieu Blind School.
The Captain-PQ Chemical Industries has donated PKR 12,295,000/- to the aforementioned 35 million underprivileged Pakistanis have been programs, contributing to the sectors of health supported in sectors of health, education, social and education from July 2018 to June 2019. protection, and livelihoods. The i-Care Foundation provided financial support to these sectors through disbursements of around $30,000,000/- through aggregated donations. The Foundation solicits donations from over 10,000 donors from across the globe and has been featured in national and international media on several occasions. Notably, the i-Care Foundation has also worked across areas of supporting disenfranchised groups such as people with disabilities, marginalized women, children, elderly, and minority groups. To-date, the i-Care Foundation has received PKR 27 million from the Captain Foundation, and PKR 295,000 directly from Captain Industries. ABC ANNUAL REPORT ABC ANNUAL
70 ABC MEMBERS’ CSR ACTIVITIES
Continental Biscuits Limited (CBL)
Founded in 1984, CBL’s CSR policy focuses on social development activities in the field of Education, Health, Gender Equality & Community Development. In areas like Sukkur, CSR activities include: Scholarship Schemes for Students; Yearly Blood Donation Camps; Surgical Eye Camps; maintaining a beautiful park for the locals and promoting Gender Equality by maintaining a 50 percent workforce of female workers.
Women Empowerment and Gender Equality
The company maintains a diverse working culture and is proud to be an equal opportunity the education of deaf children, as well as employer. The company policy includes equal sponsored the education of 30 underprivileged compensation and benefits. Women’s Day is students of Bachelor’s/Master’s of IBA Sukkur. celebrated at both the plant and Head O ce in Sukkur. Healthcare
Education CBL organized a free Eye Checkup Camp for all its employees and Blood Donation Camp at the Through the Family Educational Service plant in collaboration with Al Shifa Eye Hospital Foundation, the company contributed towards and Regional Blood Centre.
71 ABC MEMBERS’ CSR ACTIVITIES
Crescent Bahuman Ltd. (CBL) Women Empowerment In 1994, CBL made a CBL’s story of sustainability is a 25 years’ long commitment to economically quest in creating and preserving the Greenest empower women by Ecosystem the Denim Industry has ever known. It providing them the is a unique story, which depicts the remarkable opportunity in 40 KM radius transformation of 600 acres of marshland into along with free transport. South East Asia’s first vertically integrated Denim Facility. The strategic plantation of 5 million A special training program Eucalyptus trees to gradually reduce the water has been developed to train table. A water capturing drain channel was also and enable them for better constructed to reduce water table, which opportunities. ultimately not only benefited the company but also benefited the community at large - making Safe and Healthy Workplace agriculture possible. CBL takes responsibilities for maintaining a safe Wastewater Treatment Plant workplace by minimizing risk of accidents, injury and exposure to health hazard for all our associates, visitors and contractors.
Chemical Management 156 preferred chemicals are used that are in compliance with ZDHC standards. Supporting People and Communities CBL culture is conscious, diverse and inclusive - believing in making progress. • PKR 1,190,000/- for Medical Welfare was spent in 2018-2019 • PKR 190,400/- for Education Welfare was spent in 2018-2019 • PKR 1,592,000/- for Food Distribution in less privileged areas in 2018-2019 Crescent Bahuman Ltd. established wastewater treatment plant in Pakistan in 1994. It is an activated sludge system with a capacity of 1.1 million gallons per day and was expended with 792,500 gallons per day in 2019. Under our Sustainability roadmap, we aim to reduce water consumption by 50% by the end of 2020. Crescent Bahuman Ltd. is taking steps to reduce water usage, such as sharing best practices, investing in equipment and expanding our collaboration with local and international NGOs, Labs, and educational institutes.
Solid Waste CBL believes in reducing, reusing and recycling solid waste through technological advances and innovation, using di erent and smarter ways to use plastic and recycle it. ABC ANNUAL REPORT ABC ANNUAL
72 ABC MEMBERS’ CSR ACTIVITIES
Eli Lilly Pakistan (Pvt.) Ltd. Karachi - Head O ce
What is Lilly Global Day of Service (LGDOS)? In Karachi, employees visited DEWA (Deaf Eli Lilly encourages employees to build higher Education Welfare community engagement in many sectors such as Academy) in Gulshan Education, Environment, Health and Human on October 03, 2019. Services. Around 300 special children with learning Partnering with organizations in our communities, disabilities, autism and the priority areas which Eli Lilly focuses on are: other physical or learning disabilities • Healthy Lives come to DEWA to • Healthy Minds learn. The focus of the • Healthy Communities day was around engagement with the Lilly Global Day of Service (LGDOS) children in their classrooms, tree plantation in the school yard, wall painting the outdoor area and building a mural with the help of the children of all classes.
Similar e orts are made in various cities of Pakistan like Lahore, Islamabad, Hyderabad and Multan.
Total Sta engaged: 100 Total Hours spent: 700 hours Total Budget spent: PKR 250,000/-
The LGDOS reflects our long heritage of caring and our promise to make life better in our communities. 2019 became the 12th year making LGDOS one of the company’s signature events.
Since 2008, Lilly volunteers have served more than 1 million hours through the Day of Service to make life better in the communities in which we live, work and play. Entire focus of the day is around contributing time and e ort towards the institutes we work with, keeping it more service focused, rather than ‘giving material goods’.
In Pakistan, LGDOS was celebrated in the first week of October this year. Each district spent an entire day with their respective organizations with special focus on Education Sector and Environment.
73 ABC MEMBERS’ CSR ACTIVITIES
Gray Mackenzie Restaurants KFC Pakistan’s Diversity initiative, ‘Dame Riders’ is a direct advocate of Women Empowerment in a International Ltd. (KFC) third world nation. In Pakistan, the industry witnesses zero female delivery professionals. KFC “Mitao Bhook” (which translates directly to hired its own team of exceptional and capable “eradicate hunger”) is a platform that was women to take on the reigns of delivering piping conceived from the idea of eradicating hunger for hot chicken to our customers. KFC has always education and fulfilling hope of progress. In been an equal opportunity employer and this Pakistan, it has enabled KFC to transform lives. program helped the organization to increase its women to men employee ratio. In Pakistan as of 2018, the literacy rate stood at 62.3%, leaving countless impoverished individuals Following this, KFC Pakistan also introduced the with a hunger for education. first restaurant run entirely by women in the city of Lahore.
Within this segment is another more overlooked part of the population; those who are hearing-impaired and owing to the lack of necessary resources are ineligible for every education program. With Mitao Bhook, KFC Pakistan decided to venture a step further.
The platform works through the popular KFC crispy chicken bucket. Rs. 50 from every bucket sold goes into the funding of various targeted projects by the Mitao Bhook initiative. These make education and Pakistan Sign Language literacy accessible for the underprivileged and hearing-impaired. Within the year, the DEAF Reach institution’s KFC Campus has enrolled and is in the process of educating 200 students. In previous years, KFC Pakistan has drafted a curriculum and course outline with FESF for hearing-impaired students. Moreover, funding from the Mitao Bhook buckets go into the operational costs of 5 The Citizens Foundation School campuses. KFC is also funding the education of 1200 underprivileged students at TCF currently. The same platform also supports the education of 300 children who study at CYTE Foundation School, KFC Campus. From the first batch to graduate, from our hearing-impaired education initiatives, we now operate 7 KFC restaurants entirely run by the hearing-impaired. This year, every KFC outlet has a minimum of two hearing-impaired employees. ABC ANNUAL REPORT ABC ANNUAL
74 ABC MEMBERS’ CSR ACTIVITIES
MCR (Pvt.) Ltd. (Pizza Hut)
Pizza Hut under the banner of Kifalat, MCR Group’s philanthropic division, strives to promote participation in schools and targets malnutrition in Karachi. The program leverages Pizza Hut’s strengths of food procurement, production and distribution to provide over three million meals per year to 14 schools in low-income neighborhoods. By investing in community sports, it has been a proud partner of several local and national sporting events. Pizza Hut programs have been designed based on principles set out by the World Food Programme (WFP) and World Health Organization (WHO).
schools scattered across the city in areas like North Karachi, Jam Chakro (Kachra Kundi), Gulistan-e-Johar, Shershah, Korangi, Landhi, Azam Basti and Chanesar Goth. Pizza Hut further developed an initiative promoted as #MealForMustaqbil which appealed to its customers to come together and help in its fight against the challenge of illiteracy and malnourishment in Pakistan. It now provides over 3 million meals a year with the aim to increase this number to 5 million meals annually by the year 2020.
By providing free meals to schools in low-income areas, Pizza Hut is replicating School Meal Programmes by the WFP that have shown considerable success in developing nations. Coupled with school-wide deworming, the program has had promising results with students’ hemoglobin levels and participation at school: both for retention, engagement during school hours and attendance.
These meals have been designed by a nutritionist in the United States, catering to student nutritional requirements and are made in satellite kitchens, adhering to international food safety standards.
Pizza Hut started the program Kifalat over 6 years ago with one school and a soup kitchen. Currently the program is providing this service in
75 ABC MEMBERS’ CSR ACTIVITIES
Mondelez Pakistan Limited The Rivers of Tang drive saw us partner with 11 NGOs, enabling the organization to successfully Mondelez Pakistan distributed Free of Cost Tang distribute in excess of 400,000 liters of Tang whilst in Ramazan to the general public in Sindh by catering to 607,000 plus individuals across Sindh. joining hands with various NGOs located in the province. Amount: PKR 11 million plus Areas of Activity: Nutrition and Healthcare
ACNielsen Pakistan (Pvt.) Ltd. 3. Earth Day: Nielsen distributed seed packets to all 1. International Women's Day in March: associates to plant them at their homes. For Women's Day, we hosted Dr. Farrah Arif Power-saving exercises were conducted at for a talk on #balanceforbetter which was the o ce premises by shutting down lights our theme for the day. Post the talk, we were and pasting tags near water and electricity joined by Yoga instructors who conducted sources to save water and electricity and meditation and breathing exercises for the reduce our environmental footprint. Nielsen sta . The company also hosted a Food Mela, spend: $ 100. giving a platform to female home cooks who set up stall and sold delicious meals to the 4. World Clean-up Day: sta . The funds collected were donated to • Beach cleaning in partnership with the Smile Again Foundation. Nielsen spend: Last Earthlings $ 700. • Documentary screening of “Last Mangroves: Custodian of the Coast” in 2. Nielsen's Global Impact Day: partnership with The Dawood Foundation Aziz Jahan Begum Trust (Lahore), a school - held both in Karachi and Lahore for visually impaired children and Dar-ul-Sukun (Karachi), an institution for 5. Hunger Action Month: mentally and physically challenged children • Donated funds to Rizq (Lahore) and were visited. Both Nielsen and employees Saylani Welfare (Karachi), 300 free meals raised funds to donate physiotherapy were provided and food supplies for 3 equipment, braille machines, wheelchairs, households. Spend: $ 400. and ceiling fans to the institutions. In Islamabad, Master Ayub's Park School was visited. Nielsen spend: $ 4,600. ABC ANNUAL REPORT ABC ANNUAL
76 ABC MEMBERS’ CSR ACTIVITIES
Optimus Ltd. (Hertz) • Education Publican Alumni Trust • Healthcare • The Publican Alumni Trust is aimed to • Dar-ul-Sukun mobilize and support the cause of education in Pakistan. This trust is • Dar-ul-Sukun is a well reputed institute providing financial support to deserving which provides free food and shelter students and creating infrastructure of facility not only to the homeless elderly research-based education men, women and girls, but also serves the physically and mentally challenged people • Donation Amount: Rs. 50,000 • Celebration of ‘Women’s Day’ • Donation Amount: Rs. 50,000
• LRBT • LRBT is the largest provider of free eye care for the poor in the world. The 2nd LRBT Golf Tournament was held at the Karachi Golf Club in December, 2018 to raise funds for the treatment of Cataract, Glaucoma and Retinal diseases among children and adults who are too poor to a ord the treatment • To recognize the e orts and contributions of • Donation Amount: Rs. 250,000 women in our society and organization, Hertz Pakistan dedicated a whole day to its • Blood Donation Drive with ‘Indus Hospital’ women. The day was designed around activities full of surprises, joy and satisfaction. Following are the highlights of the day: a. Day started with provision of surprise gifts to all females (chocolates, cards, books and flowers). b. In-house awareness session on ‘Breast Cancer’ for females. c. Arrangement of o cial lunch at a lavish restaurant. d. Plantation drive at Urban Forest where all the women planted their favorite fruit or vegetable tree. • Amount Spent on ‘Women’s Day’ • Orientation of all employees on health activities: Rs. 20,000 benefits of donating blood and its impact on the society
• Basic check-up of sugar, blood pressure, fever and body weight of volunteers
• Blood donation procedure • HR team appreciated the contribution of donors and presented them with a souvenir
• ‘Blood Donation Drive’ Amount: Rs. 12,000
77 ABC MEMBERS’ CSR ACTIVITIES
Pfizer Pakistan Ltd.
CSR Activities “MASEEHA” Pfizer Pakistan Ltd. has entered into a partnership with The Aga Khan University Hospital (AKUH) for self-funded patients and The Patients’ Behbud Society (PBS) for AKUH to provide access to quality targeted therapy treatment to cancer patients without financial means. Patients su ering from gastrointestinal stromal tumor (GIST), metastatic renal cell carcinoma (mRCC) and pancreatic neuroendocrine tumors (pNET) will benefit from our partnership. Pfizer Pakistan Limited and Pakistan Bait-ul-Mal, Government of Pakistan, signed a Memorandum of Understanding (MoU). Through this collaboration, Pfizer Pakistan and Pakistan Bait-ul-Mal, Government of Pakistan will support patients from across Pakistan diagnosed with cancer and under critical care, requiring novel treatments which are beyond conventional therapies. This collaboration is part of Pfizer’s patient access program ‘MASEEHA’, an initiative to broaden access to Pfizer critical care and cancer medicines. ABC ANNUAL REPORT ABC ANNUAL
78 ABC MEMBERS’ CSR ACTIVITIES
Philip Morris (Pakistan) Limited PMPKL partnered with Society for Special Persons to enhance the socio-economic inclusion (PMPKL) of 300 women with disabilities by forming community-based groups, building capacity of Philip Morris (Pakistan) Limited (PMPKL) is an stakeholder groups for advocacy of their rights a liate of Philip Morris International Inc. Our 3 and sensitizing general community on issues key areas of CSR focus include: Providing faced by these women. Economic Opportunity, Empowering Women and Access to Education. PMPKL works with local PMPKL is the first company in Pakistan to be NGOs to rehabilitate burn victims, fight against certified by the Equal Salary Foundation. The child labor, provide vocational training to women Equal Salary Certification validates that PMPKL from low-income households, set up medical pays men and women equally for equivalent camps for vulnerable communities and work on work, and the process helps the company to social inclusion for women with disabilities. From focus on the broader issue of gender equality. 2018 to 2019, PMPKL has partnered with local NGOs on the following areas of activities: 2. Healthcare
1. Women Empowerment PMPKL partnered with Paiman Alumni Trust to provide basic medical care through free camps to PMPKL partnered with Depilex Smileagain more than 6000 individuals; conducted Foundation to rehabilitate and empower victims door-to-door visits to 1600 families for awareness of domestic violence by integrating them back on physical and mental health matters and into society and helping them lead normal and educated 2400 women and children through fruitful lives. With PMI’s support, the foundation health hygiene sessions. provided medical/surgical treatment to 56 female victims. Conducted psycho-social support 3. Education workshops for 80 victims across Pakistan and provided vocational training to 12 victims. PMPKL partnered with Idara-e-Taleem-o-Aagahi to organize summer camps in schools to prevent PMPKL partnered with Kashf Foundation to farmers’ children from working on tobacco farms provide vocational skills and entrepreneurship during their summer holidays. The project was training to females from low-income households conducted in 21 schools in KPK, catering to 1952 between the ages of 15 to 30 years. With PMI’s children. Under this program, educational support, the foundation trained 807 females who activities and Literature Festivals were held to are interested in setting up new businesses or encourage children to read. Further, school expanding already existing ones, and want to upgradation projects have been undertaken in augment their skill set through vocational training Kotri, Sahiwal and KPK to uplift their across Swabi, Mardan, Kotri and Sahiwal. infrastructure and install solar panels.
79 ABC MEMBERS’ CSR ACTIVITIES
Pioneer Pakistan Seed Ltd.
CSR Initiative - Environment and Health Safety
On June 5, 2019, World Environment Day, Pioneer Pakistan arranged Stewardship Day events to connect with farmers, channel partners, employees and other stakeholders with the objective to create awareness, educate and collaborate for safe and responsible use of chemicals in the field.
1. Stewardship Day in a Village School, Okara
Stewardship Day was celebrated in a village school in Okara, where over 100 students and their parents (farmers) participated. Students participated in a series of activities, including speech competition, quiz etc. to share the messages of saving our natural resources and adapting agricultural practices to reduce impact on our environment. Team of Rescue 1122 also joined the event and demonstrated incident management practices/protocols in case of exposure to chemicals during application in the field.
2. Stewardship Day at Farmer Field, Renala Khurd
Over 200 farmers, chemical dealers, provincial and federal parliamentarians participated in this event. Interactive and informative group activities were conducted by sharing di erent case studies about safe and responsible use of agricultural chemicals. A demo about “spray man exposure to pesticide” was conducted to emphasize the use of Personal Protective Equipment (PPE) during chemical application.
Amount Spent: Rs. 500,000/- ABC ANNUAL REPORT ABC ANNUAL
80 ABC MEMBERS’ CSR ACTIVITIES
Rafhan Maize Products Co. Ltd. comprising 77 girls and 87 boys. Our company invested PKR 2.8 million in this area. Company’s CSR Philosophy Environment/Sustainability It is our aspiration to become the Employer, Supplier, Neighbor, Investment and Company of Our company invested PKR 1.6 million in these Choice for our many stakeholders. sectors by arranging awareness sessions, lectures and quiz competition on Earth Day and World CSR Activities Water Day for children of SOS Children’s Village, Faisalabad. To keep our locality’s environment Education green and healthy, our company conducted clean-up drive for community near our plant The company has adopted one of the schools of premises. The company developed a green strip The Citizens Foundation, Karachi at their in front of our factory at Faisalabad in Faisalabad Campus namely, Khalid Farooq collaboration with Pakistan Horticulture Authority Campus, Chak 242, Dasuha, Faisalabad. The (PHA) to promote our agenda of sustainability school has an enrollment of 164 students and green, clean, and healthy environment for our communities and society.
S&P Global Pakistan (Pvt.) Ltd. Space, A Human-centered Approach to understanding and assessing Gender Parity in When it comes to Corporate Responsibility, Pakistan. Diversity, and Inclusion, S&P Global plays an Research Funding - AGAHI PKR 300,000 active role: Bridging the Global Skills Gap; Creating an Inclusive Economy; and Promoting a Sustainable Future.
Signatory of Women Empowerment Principles
S&P Global became an o cial WEP (Women Empowerment Principles) signatory. UN Women and UN Global Impact are working together to drive WEP agenda to empower women to participate fully in economic life across all sectors and throughout all sectors of economic activity. Women in Technology
#ChangePays Initiative Islamabad arranged awareness walks on #ChangePays in order to create awareness on the This year, S&P Global launched the #ChangePays benefits of a more inclusive workforce. social media campaign to highlight the financial and business benefits of gender equality in the S&P Global Pakistan's Partnership with the U.S. workplace. This was a global movement and Pak Women Council demonstrates S&P Global’s dedication to creating inclusive economies. S&P Global Pakistan has been a strong partner of the USPWC over the year. For 2019, S&P Global In S&P Global Islamabad, Our Women in sits on the Executive Committee for USPWC and Technology community and WINS Employee has pledged to mentor 20,000 women over the Resource Group arranged multiple events to course of next three years. S&P Global was also further this initiative. As part of the #ChangePays awarded the Million Women Mentors Global movement, S&P Global also sponsored a research Impact Award for its proactive pledge and plan initiative for AGAHI: Empathy and Personal towards reaching it in Pakistan.
81 ABC MEMBERS’ CSR ACTIVITIES
S&P Global Pakistan also held its first-ever career Project ‘Attitude Behavior and Change’ - seminar in collaboration with PUAN. The Environment participants included PUAN students returning A project team at S&P Global Islamabad called from the U.S., post completion of their exchange Attitude, Behavior and Change, launched a ‘Say programs and S&P Global employees. No to Plastic’ initiative across Islamabad Site. The project team worked on reducing use of plastic S&P Global Foundation (Corporate and gave away 1550 stainless steel bottles. Responsibility)
Pakistan is a priority market for S&P Global when Spending: it comes to our Corporate Responsibility e orts. Developing an Inclusive Economy: PKR The S&P Global Foundation has announced a grant of $50,000 to support a local non-profit S&P Global Foundation 7,750,000.00 that closely aligns with strategic areas of focus. Research Funding – AGAHI 300,000 Total 8,050,000 S&P Global Foundation PKR 7,750,000.00 Environment: S&P Global’s Commitment to Volunteerism Project ABC 722,000 Give Back Policy for Employees WINS 31,000 APEX 31,000 S&P Global Pakistan introduced first of its kind Total 784,000 ‘Give Back Days’ employee benefit. The benefit is for S&P Global employees to use up to five days Bridging the Global Skill Gap per year to volunteer in their communities. Women in Technology 50,000 SIE and SACHET 200,000 Diversity and Inclusion Total 250,000
WINS Islamabad Health WINS 3,150 One of our very active Employee Resource Groups, Women's Initiative for Networking and Total of S&P Global CR and DI Spend 9,087,150 Success, ran several successful initiatives:
1- Margalla Hills Clean-up Drive: Around 20 employees, including interns, volunteered for this activity and we successfully cleaned almost 4km of the trail. WINS sponsored the event financially, spending $200. Area of activity: Environment.
2- Breast Cancer Awareness Session: WINS partnered with SKMH to conduct a session for female employees at S&P Global to raise awareness about this deadly disease. Pakistan has the highest incidence rate of breast cancer in Asia. Cost: PKR 3,150. Area of activity: Health. WINS PKR 31,000
APEX Islamabad Another one of our ERGs, APEX arranged a Clean-up Drive of Trail 5 APEX PKR 31,000 ABC ANNUAL REPORT ABC ANNUAL
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Systems Limited health initiative); Shaukat Khanum Memorial Hospital (Financing treatment of underprivileged CSR Initiative (brief of activity) or Diversity cancer patients); Sundas Foundation (Support for Initiatives health initiative).
Systems Limited aims to make substantial and Education informed contributions towards CSR and fulfill 1. The Citizens Foundation social responsibility. Systems Limited aims to provide quality sponsorship to the a. Sponsoring Class 1 Students at TCF Habib underprivileged and create awareness regarding Jute Campus Primary (Afternoon) in Health, Research and Education. Khushab, Punjab for an entire year, giving 24 deserving children access to a safe, Amount spent by the company on CSR (in PKR) creative and colorful learning space.
Systems Limited contributed a total amount of Others Rs. 3,659,750/- from July 2018 till June 2019. 1. Lahore Gymkhana Areas of activity Sponsoring a charity tennis match. Systems Limited funded projects mainly in Healthcare and Education. 2. NOWPDP
Healthcare Providing laptops and chargers for people with disabilities and create awareness. Jinnah Hospital (Patient Welfare Association); Aman Foundation (Support for health initiative); Systems Limited intends to create a bigger Arthritis Care Foundation (Support for health impact on CSR in 2020, and take part in initiative); Child Care Foundation (Support for contributing to the society.
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Teradata Pakistan (Pvt.) Ltd. • Care for Education (Celebrated Annually) > Teradata helped educate more than 3000 Teradata Cares is a philanthropy body under the individuals: in collaboration with patronage of Teradata, working for corporate Developments in Literacy (DIL) social responsibility. • Care for Homeless (Celebrated Annually) • Teradata Cares encourages and supports > Teradata provided shelter to more than employee engagement in building strong and 1000 individuals: in collaboration with Edhi vibrant communities, improving quality of life, Foundation and making a positive di erence where we live and work. • Care for Health (Celebrated Annually) > Teradata helped treat more than 1000 • Education Program individuals: in collaboration with Shaukat • Healthcare Program Khanum Memorial Cancer Hospital • Employment & Financial Support Program • Natural Disaster Relief Projects • Care for Environment (Celebrated Annually) > Environment preservation and awareness: • Education Program - Transforming Lives in collaboration with WWF
> Helped more than 650 students at di erent • Tree Plantation Day (Celebrated Annually) levels > Planted 3000 trees: in collaboration with > Primary/Middle/Matriculation WWF > Intermediate/Diploma Programs > University Programs (MBBS, Engineering) • Blood Donation Day (Celebrated Annually) > Around $0.1M spent on Education Programs > Donated 800 bottles: in collaboration with Red Crescent Pakistan • Healthcare Program • Pink Day (Celebrated Annually) > Helped over 500 patients > 50 female associates attended: in > Blood Donation Camps collaboration with Shaukat Khanum > Free Medicines and Treatment Memorial Cancer Hospital > Free Consultation for Patients > Around $50k spent on Healthcare 14000 individuals positively impacted: Teradata Corporation funded $30k • Employment & Financial Aid Program
> Teradata Cares team helped more than 200 unemployed and needy persons > Financial Support for Small Business Set-up > Debt Payment for poor families > Sewing Machines & Cash Donation > Around 50k spent on Financial Support
• 1500 Individuals were positively impacted - Teradata Associates raised $0.2M
• Care for Hunger (Celebrated Annually) > Teradata fed more than 5000 individuals > Teradata spent around $30k on distribution of Food Items ABC ANNUAL REPORT ABC ANNUAL
84 ABC MEMBERS’ CSR ACTIVITIES
The Coca-Cola Export products and continues to make its mark. The most note-worthy is all PET bottles in Pakistan Corporation are 100% recyclable and e orts are constantly being made to ensure that collection and The Coca-Cola company is a total beverage company recycling rate is the same as well. Coca-Cola operating in Pakistan since the last 66 years. partnered with WWF Pakistan and other members of the industry to form an alliance to The company’s sustainability campaign was work towards this goal together. Individually, launched in 2010 with four key pillars including: Coca-Cola managed to collect 228,500 plastic Women Empowerment; Pakistan without waste; bottles in 2019 alone. Moreover, in terms of Water Replenishment; and Well-being. environment, keeping in sight Pakistan’s water In the last 9 years, Coca-Cola has spent a total of shortage, our goal of replenishing 1.9 billion liters approximately PKR 1.3 billion (USD 8.5 million) on of water by 2020 was not only met but exceeded CSR. One of the most notable achievements has expectations with 2.7 billion liters of water been on women empowerment initiatives, replenished as of 2018. This made Coca-Cola in consistent with Coca-Cola’s global benchmark of Pakistan water positive, the first country in MENA helping 5 million women by the year 2020. (Middle East and North Africa) region. Coca-Cola in Pakistan partnered with Kashf Foundation, an NGO working solely for this Aligned with the national polio eradication purpose, resulting in more than 8500 women campaign in Pakistan, being one of the last few being facilitated and economically enabled across countries still infested with this disease, the Pakistan. They were not only financially company installed 14+ water filtration plants in sponsored but also empowered with training, collaboration with Rotary Foundation to eliminate short courses, peer networks and mentoring to polio. help them start entrepreneurial ventures resulting in various success stories for e.g. Coca-Cola sponsored self-made beautician made it to ‘Beyond Beautiful’ as a participant. Cumulatively 4.1 million loans were given to women as well as training in gender, business development, vocational skills and literacy was attended by approximately 2 million women. Coca-Cola has also invested its interests and finances into education for children with two Coca-Cola schools, and a capacity of over 180 children. With LUMS, the company built an aquatic center as well as sponsored the education of 10 students with LUMS endowment program.
Coca-Cola in Pakistan has made record progress to ensure environment friendly processes and
85 ABC MEMBERS’ CSR ACTIVITIES
Uber Technology Systems information. The recommendations were delivered to the management panel, allowing for rich discussions Pakistan (Pvt.) Ltd. and helping the hospital implement the plans.
Shaukat Khanum Memorial Cancer Hospital is a Uber team visited the Jinnah Postgraduate Medical non-profit organization, catering to 150,000 patients Center, the largest public hospital in Karachi, to annually. 75% of the patients are treated free of cost. experience the amazing development work done by A total of 27 team members volunteered to spend Patients’ Aid Foundation and brainstorm initiatives time in the children's ward, sharing smiles and gifts. that can be taken together to increase awareness of osteoporosis in our community.
Uber visited SOS Village, the largest orphanage in Pakistan, and spent ~3 hours taking the children through creative thought-development games and activities, followed by an entertaining talent show put on display by both the children and the Uber team. With 25 volunteers from Uber managing the teams, the children had plenty of mentors to interact with and learn from.
Uber volunteers managed to contribute to Fatima Memorial Hospital in a way that created a massive impact for the organization. Two teams acted as consultants and solved core problems for the hospital, increasing corporate patients and developing a Ramadan campaign. The relevant hospital manager sponsored the project and provided background ABC ANNUAL REPORT ABC ANNUAL
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For over 50 years, Prestige has been at the forefront of building brands on the nation’s advertising landscape. These have included some of Pakistan’s most iconic brands: Tullo, Capri, Rose Petal, Milk Pak, Habib Oil, TUC, Candi, Prince, Sooper, Rio, Sony, John Player’s Gold Leaf, Pantene, Emirates, HBL - Konnect, Credit Cards and Freedom Account, GSK - Panadol, Sensodyne and Physiogel, Jubilee Life and General - to name just a few. In particular, our expertise and experience have been a driving force behind many successful local brand stories.
As proud recipients of the silver award for Campaign Asia’s Creative Agency Of The Year 2018, we at Prestige, are confident that our strength and insight will keep our finger on the pulse, of not just today’s brands, but also the brands of tomorrow.
Communications 22-C, Khayaban-e-Shahbaz, 4th Floor, Phase VI, D.H.A., Karachi - 75600, Pakistan. (Pvt.) Limited T: (92-21) 35171761-4 W: www.prestige.com.pk E: [email protected]
APPRECIATION
The Executive Committee would like to acknowledge with much appreciation all ABC Members for their support by placing advertisement in this annual report:
1. Al-Hamd International Container Terminal (Pvt.) Ltd. 2. Chevron Pakistan Lubricants (Pvt.) Ltd. 3. Chubb Insurance Pakistan Ltd. 4. DuPont Pakistan Operations (Pvt.) Ltd. 5. Gray Mackenzie Restaurants International Ltd. (KFC) 6. International Learning Center (Pvt.) Ltd. [Berlitz] 7. Johan (Pvt.) Ltd. (Culligan) 8. Karam Ceramics Limited 9. Muller & Phipps Pakistan (Pvt.) Ltd. 10. OBS Pakistan (Pvt.) Ltd. 11. Optimus Ltd. (Hertz) 12. Pfizer Pakistan Ltd. 13. Philip Morris (Pakistan) Ltd. 14. Pioneer Pakistan Seed Ltd. 15. Prestige Communications (Pvt.) Ltd. 16. Procter & Gamble Pakistan (Pvt.) Ltd. 17. Systems Limited 18. The Coca-Cola Export Corporation 19. TRG (Pvt.) Ltd. 20. Venus Pakistan (Pvt.) Ltd.
A special thanks to our member Prestige for designing the ABC Annual Report.
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