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Pakistan’s Agha Steel setting up $42 mln plant at Port Qasim to meet CPEC demand

In this undated photo, a truck with a steel bar shipment is being unloaded at Agha Steel Industries in Karachi, Pakistan. (Photo courtesy of Agha Steel Industries)
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Updated 20 September 2020
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Pakistan’s Agha Steel setting up $42 mln plant at Port Qasim to meet CPEC demand

  • Agha Steel Industries Limited is setting up a Rs7 billion plant to enhance its efficiency and production capacity 
  • Hussain Agha plans to raise up to Rs5 billion through initial public offering in the first week of October 
Updated 20 September 2020
KHURSHID AHMED   

KARACHI: Pakistan’s Agha Steel Industries Limited (ASI) plans to set up a Rs7 billion ($42 million) modern steel manufacturing plant at Port Qasim to meet the growing market demand as the country witnesses a flurry of construction activity under the China-Pakistan Economic Corridor (CPEC) and the prime minister’s flagship Naya Pakistan Housing Program.
“To finance the expansion project, we plan to raise Rs3.6 billion through initial public offering at the Pakistan Stock Exchange early next month,” Hussain Agha, chief executive of the company, told Arab New in an exclusive interview on Friday.
The company is importing Rs2.7 billion worth of plant and machinery.

Agha Steel plans to offer 120 million shares at a floor price of Rs30. According to its management, 75 percent of them — or about 90 million shares — will be offered through book building process while the remaining 25 percent will be issued to general public through retail offer at strike price determined by the book building process.

 




In this undated photo, Hussain Agha of the Agha Steel Industries Limited can be seen at his office in Karachi. The company plans to expand its existing production facility and hope to turn Pakistan into the region's steel making hub. (Picture courtesy of Hussain Agha)

“Potentially the amount may go beyond Rs5 billion,” he noted, as Pakistan’s stock market remains in a bullish mood and is said to be Asia’s best performing market at the moment.
The successful execution of project by March 2021 will allow the company to increase its melting capacity from 450,000 metric tons to 650,000 metric tons.
Agha Steel has also acquired the land right next to its current facility to install a new Micro Mill Danieli Rolling Mill, a super compact unit when compared to traditional mini mills, that occupies about 49 percent less space and gives about 23 hours of uninterrupted production.
“This technology guarantees 99 percent recovery,” Agha informed while explaining that the average yield from billet in Pakistan was 90 to 92 percent while the international standard was 97 percent.
“After the expansion, we will have one of the largest steel manufacturing facilities in Pakistan,” he said, adding that his company would produce all kinds of steel products required in the country, including those used in the construction of dams.
Pakistan’s steel sector is a major beneficiary of the ongoing construction of dams financed by China under the $60 billion mega CPEC program and the ruling Pakistan Tehreek-e-Insaf party’s low cost housing project.




In this undated photo, Hussain Agha of the Agha Steel Industries Limited can be seen at his office in Karachi. The company plans to expand its existing production facility and hope to turn Pakistan into the region's steel making hub. (Picture courtesy of Hussain Agha)

“We have made bids for five dam projects,” the ASI chief said, adding: “We expect that steel will be in a huge demand as the country constructs dams, mainline ML-1 train track and gets into coal and wind projects. Construction activity in Pakistan is booming.”
Pakistan’s steelmakers estimated that 2.17 million tons of steel would be required in 24 months for confirmed dam and Naya Pakistan housing projects. The major demand of about 1.5 million tons is estimated to come from seven hydropower plants, including Dasu and Diamer-Bhasha dams whose combined steel requirement is expected to be 900,000 metric tons.
Pakistan’s dam projects are being constructed and financed by China.
Agha said he could see a surge in demand after Prime Minister Imran Khan announced incentives for the construction sector.
“Last year, our sale to real estate developers was 12 percent,” he said. “Today, we are looking at more than 35 percent … which implies about 200 percent growth in this segment. The government’s policies are translating into ground realities, and the central bank is supporting the growth momentum.”
“If the government built 100,000 housing units, we believe it would generate a demand of about one million tons of steel only for these homes,” he added.
The company expects its revenue to increase to Rs26.18 billion this fiscal year (FY21) from Rs15.7 billion in the outgoing fiscal year (FY20). It forecasts its revenue to be Rs58.4 billion in FY24.
Agha Steel is also eyeing export of its steel products after satisfying the domestic demand which, at present, stands at about 5 million tons per annum.
“Exporting steel from Pakistan was a longtime dream,” Agha said, adding that his company could potentially become an exporter by 2023.
“Pakistan will become the epicenter of steel making in the region,” he told Arab News with conviction.

Topics: Pakistan Hindu temple

Pakistan urges World Bank support on economic reforms, development agenda

Updated 7 sec ago
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Pakistan urges World Bank support on economic reforms, development agenda

  • IMF approved a $7 billion bailout loan for Pakistan in September that comes with a tough economic reforms agenda
  • IMF is pushing Pakistan to continue prudent fiscal and monetary policies, mobilize revenue from untapped tax bases
Updated 7 sec ago
Arab News Pakistan

ISLAMABAD: Minister for Finance Muhammad Aurangzeb met World Bank Country Director Najy Benhassine on Tuesday and urged the international lender to support Pakistan in its economic reforms and development agenda, Radio Pakistan reported. 

The talks in Islamabad came less than two months after the IMF approved a $7 billion bailout loan for Pakistan that is attached to tough economic reforms. The IMF is pushing Pakistan to continue prudent fiscal and monetary policies, and to mobilize revenue from untapped tax bases.

Pakistan’s $350 billion economy has struggled for decades with boom-and-bust cycles, needing 23 IMF bailouts since 1958.

“During the meeting, the Finance Minister highlighted the importance of collaboration with the World Bank to support Pakistan’s economic reforms and development agenda,” Radio Pakistan reported. “The Finance Minister reiterated the government’s commitment to fiscal discipline, sustainable growth, and efficient resource utilization.”

The discussions focused on the establishment of a robust and transparent tax policy framework to enhance revenue mobilization and improve compliance while ensuring equitable taxation, the report said. 

The World Bank team also offered technical assistance to streamline the budget-making process, adopt modern practices to improve transparency and accountability in public financial management, and put in place an effective debt management mechanism to ensure fiscal sustainability and reduce risks.

Issues related to the Agricultural Income Tax Regime and GST harmonization in coordination with provinces and an enhanced focus on the active role of the National Tax Council also came under discussion.

“The Finance Minister expressed gratitude for the World Bank’s support and reaffirmed the government’s resolve to implement reforms aimed at sustainable economic progress,” the reported said, adding that the World Bank officials reiterated the lender’s commitment to assisting Pakistan in addressing economic challenges and achieving its developmental objectives.

The IMF, which approved the new bailout in September, has said the program will require “sound policies and reforms” to strengthen macroeconomic stability and address structural challenges alongside “continued strong financial support from Pakistan’s development and bilateral partners.”

The IMF said in its statement on approving the loan that Pakistan had taken key steps to restore economic stability with consistent policy implementation under the 2023-24 standby arrangement.

It added that growth had rebounded to 2.4 percent and inflation has receded significantly, falling to single digits, amid appropriately tight fiscal and monetary policies.

A contained current account and calm foreign exchange market conditions have allowed the rebuilding of reserve buffers, and the central bank of Pakistan has been able to reduce interest rates by 700 bps since June in four consecutive cuts.

Despite this progress, Pakistan’s vulnerabilities and structural challenges remain formidable and the tax base remains too narrow.

The South Asian country is the IMF’s fifth-largest debtor, owing the Fund $6.28 billion as of July 11, according to the lender’s data.

Topics: Pakistan World Bank

Islamabad district commissioner denies reports of fuel shortages amid opposition protest

Updated 39 min 26 sec ago
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Islamabad district commissioner denies reports of fuel shortages amid opposition protest

  • Major roads and highways leading to the capital have been sealed off since last week when PTI party launched protest march on Sunday
  • Oil Tanker Contractors Association says closed routes had stalled the delivery of petrol to several parts of Punjab province and Islamabad
Updated 39 min 26 sec ago
NAIMAT KHAN

KARACHI: The Deputy Commissioner of Islamabad on Tuesday rejected reports of fuel shortages after an oil tankers association said the supply of petrol to the federal capital and several cities in Pakistan’s eastern Punjab province had been “severely affected” due to a protest march being led by an opposition party.

Major roads and highways leading to the capital have been sealed off since last week when the Pakistan Tehreek-e-Insaf (PTI) party of jailed former premier Imran Khan launched a protest ‘long march’ to Islamabad on Sunday. The city has been in complete lockdown since, with shipping containers used to block major roads and streets inside Islamabad also. 

“Reports of petroleum products crisis in the city are baseless and unfounded,” District Magistrate Irfan Nawaz Memon wrote on X. “There is a sufficient stock of petroleum products at petrol pumps.”

In a statement released on Tuesday, the Oil Tanker Contractors Association had said closed routes had stalled the delivery of petrol to several parts of Punjab, Pakistan’s most populous province, and Islamabad. 

“Routes to Islamabad, Rawalpindi and North Punjab are closed due to which supply from petrol tankers is severely affected,” association spokesperson Noman But said in a statement. “Thousands of tankers are waiting for the route to open.”

Butt said petrol had not been supplied to Gujranwala, Jhelum, Sialkot and Kharian districts in Punjab for the last three days, while supply to Islamabad, Kohala and the northern city of Gilgit was also affected. 

“Petrol has run out at pumps in many cities,” he added.

Khan’s party aims to pressure the government to release him from jail. He has been in prison since August 2023 on a slew of charges he says are politically motivated. The party is also protesting against what it says was rigging in the Feb. 8 general elections and calling on the government to roll back the recently passed 26th constitutional amendment, which the PTI says is an attack of judicial independence. The government denies this. 

PTI supporters broke through barricades and clashed with police as they marched on the capital late on Monday evening, with Interior Minister Mohsin Naqvi saying three paramilitary troops and one policeman had been killed in clashes.

The PTI said in a statement two of its supporters were confirmed dead while over 30 were wounded. 

Topics: Pakistan Islamabad Fuel shortage

Pakistan rules out talks with protesters demanding ex-PM Khan’s release, six killed

Updated 26 November 2024
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Pakistan rules out talks with protesters demanding ex-PM Khan’s release, six killed

  • Topping demands of Khan’s Pakistan Tehreek-e-Insaf party is release of all its leaders, including Khan
  • Interior ministry says four troops killed in clashes with protesters, PTI says two supporters dead
Updated 26 November 2024
Aamir Saeed

ISLAMABAD: Interior Minister Mohsin Naqvi on Tuesday ruled out talks with protesters who are holding a sit-in in Islamabad to demand the release of jailed former Prime Minister Imran Khan after four security officials and two demonstrators were killed in clashes. 

Hundreds of supporters of Khan’s Pakistan Tehreek-e-Insaf (PTI) on Tuesday reached the D-Chowk public square in Islamabad’s heavily fortified red zone, home to parliament, key government installations, luxury hotels, embassies and the offices of foreign organizations. Protest leaders, including Khan’s wife Bushra Khan and Ali Amin Gandapur, who is the chief minister of the Khyber Pakhtunkhwa province where the PTI is in power, have said this is a “do or die” sit-in that will go on until Khan is freed from prison. The former premier has been jailed since August last year and faces a slew of charges from corruption to terrorism that he says are politically motivated to keep him behind bars and away from politics. 

PTI supporters broke through barricades and clashed with police as they marched on the capital late on Monday evening, with Interior Minister Naqvi saying three paramilitary troops and one policeman had been killed in clashes. The PTI said in a statement two of its supporters were confirmed dead while over 30 were wounded, the worst political violence seen in months in the South Asian nation of 241 million people.

“In today’s meeting, the clear cut decision of the prime minister and others is that there will be no talks with these protesters,” Naqvi said after Prime Minister Shehbaz Sharif met his cabinet and other top officials. 

Information Minister Ataullah Tarar said the government had agreed to offer the protesters a place on the outskirts of Islamabad to hold their protest and would have facilitated them in their activities. 

“But why do they want to go to D-Chowk?” the information minister asked. “Because they want to cause damage to the life and property of Islamabad’s citizens. They have among them Afghan nationals, terrorists, dacoits.” 

In a message shared with supporters from jail by his team, Khan, 72, urged his followers to stay peaceful but to stand firm til the end. 

“My message for my team is to fight until the last ball is bowled. We will not back down until our demands are met!”

LOCKDOWN

As thousands of rally goers left for Islamabad on Sunday in protest caravans, authorities shut down major highways leading to the capital and used shipping containers to block major roads and streets inside the city. Mobile Internet links and apps like WhatsApp have been down since the weekend and schools have been closed for several days in the capital and the nearby garrison city of Rawalpindi. 

Last week, the district administration also banned public gatherings in Islamabad for two months, and on Monday, the interior ministry invoked Article 245, calling in the army to maintain law and order. 

A round of the federal capital by Arab News on Tuesday afternoon showed that all entry and exit points of the city had been sealed again with shipping containers shortly after protesters removed them to enter the city. The Srinagar Highway, the main artery connecting the Punjab and Khyber Pakhtunkhwa provinces, was littered with stones that protesters had reportedly hurled at security personnel on their way to D-Chowk. 

Local residents of Rawalpindi and Islamabad could be seen distributing food and water among protesters on the Srinagar Highway while helicopters hovered above. 

Protest leader Ali Amin Gandapur, whose caravan had still not reached D-Chowk by Tuesday evening, urged protesters to camp at the square and not advance further into the red zone. 

“D-Chowk means D-Chowk,” the chief minister told supporters from atop a truck en route to the public square. “Beyond that, as long as Imran Khan’s orders, Imran Khan’s instructions are not given, we will not go beyond that area and we will respect his instructions.”

Amnesty International called on the Pakistan government to protect and ensure the rights of protesters and “immediately rescind the ‘shoot-on-sight’ orders that provide undue and excessive powers to the military.”

“The severe restrictions on assembly, movement and mobile and Internet services as well as arbitrary detentions of thousands of protesters across Pakistan, particularly in Islamabad, are a grave violation of the rights to freedom of peaceful assembly, movement and expression,” the rights group said on X.

Topics: Pakistan Imran Khan Bushra Bibi

Pakistani conglomerate Descon announces local incorporation in Saudi Arabia

Updated 26 November 2024
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Pakistani conglomerate Descon announces local incorporation in Saudi Arabia

  • Pakistan’s Descon Engineering operates in the engineering, power and chemical sectors
  • It has a long-standing strategic partnership with the Olayan Saudi Holding Company 
Updated 26 November 2024
NAIMAT KHAN

KARACHI: Pakistan’s Descon Engineering, which operates in the engineering, power and chemical sectors, on Tuesday announced the incorporation of Descon Engineering Arabia, a registered entity in the Kingdom of Saudi Arabia, in partnership with its long-standing strategic partner, Olayan Saudi Holding Company (OSHCO.)

OSHCO is a Saudi-based diversified business enterprise with commercial and industrial operations spread across Saudi Arabia and the wider Middle East and North Africa regions. The company’s portfolio includes more than 25 companies operating in five sectors, namely, food and beverages, restaurants, health and personal care, information and communications technology (ICT), and energy.

Descon, a group of companies headquartered in the eastern Pakistani city of Lahore, is active in UAE, Qatar, Saudi Arabia, Kuwait, Oman, Iraq, and South Africa.

“This significant development reaffirms Descon’s continued commitment to the Kingdom and highlights its focus on localization within Saudi Arabia,” Descon said in a statement. 

“Through Descon Engineering Arabia, the company is further expanding its regional footprint, reinforcing its position as a trusted and established service provider dedicated to meeting the needs of customers across the Kingdom.”

The company said the “new chapter” had strengthened its resolve to make a broader global impact, ensuring enhanced value delivery to clients in Saudi Arabia, while supporting the development of local talent and capacity building.

“As we establish Descon Engineering Arabia in partnership with OSHCO, we reaffirm our commitment to the Kingdom of Saudi Arabia and its vision for sustainable growth. This step represents a deepening of our long-standing relationship with the region, enabling us to deliver tailored solutions while contributing to local talent development and capacity building,” Taimur Saeed, CEO of Descon Engineering, said. 

“We look forward to fostering stronger collaborations and continuing to serve the Kingdom with the reliability and expertise that have defined our journey for nearly five decades.”

Through Descon Engineering Arabia, Descon Engineering is positioned to deliver even greater value, continuing its “dedication to excellence and local growth” for customers in Saudi Arabia and the region, the company added. 

Topics: Pakistan Saudi Ties Descon Pakistan Arab News Pakistan OSHCO

Ayub century helps Pakistan crush Zimbabwe, level series

Updated 26 November 2024
AFP
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Ayub century helps Pakistan crush Zimbabwe, level series

  • Ayub struck unbeaten 113 as Pakistan beat Zimbabwe by 10 wickets to level one-day international series with one match to come
  • Zimbabwe were all out for 145 at Queens Sports Club as they sought a second victory over the tourists
Updated 26 November 2024
AFP

ZIMBABWE: Saim Ayub struck an unbeaten 113 as Pakistan crushed Zimbabwe by 10 wickets in Bulawayo on Tuesday to level a one-day international series with one match to come.

Zimbabwe were all out for 145 at Queens Sports Club as they sought a second victory over the tourists in three days having won by 80 runs in a rain-shortened tour opener.

Pakistan then atoned for a poor batting show on Sunday with Ayub and fellow opener Abdullah Shafique (32 not out) unstoppable as they reached their target in 18.2 overs.

Ayub struck 17 runs and three sixes off 62 balls in a 75-minute stand while Shafique claimed four fours in the southern city.

Ayub reached his century off 53 balls — the second fastest in an ODI international by a Pakistani after Shahid Afridi.

Zimbabwe, seeking a first ODI series win over Pakistan, utilized five bowlers, but none made an impression with Brandon Mavuta, who conceded 47 runs in four overs, particularly expensive.

After winning the toss, Zimbabwe were quickly in trouble with openers Joylord Gumbie (five) and Tadiwanashe Marumani (four) back in the pavilion with less than four overs bowled.

Only Dion Myers, who struck six fours in his 33, and veteran Sean Williams, who posted 31 before being trapped leg before by Ayub, impressed for the home team.

Pakistan-born all-rounder Sikandar Raza, often the batting savior for Zimbabwe, made just 17 before becoming one of three victims of Salman Ali Agha.

Abrar Ahmed took four wickets and Ali Agha three for Pakistan, who arrived in southern Africa after a 3-0 ODI series loss in Australia.

The Zimbabwe ODI series decider is set for Thursday, followed by three Twenty20 internationals from Sunday, also in Bulawayo. Pakistan then visit South Africa for an all-format tour.

Topics: Pakistan v Zimbabwe Cricket Saim Ayub Zimbabwe Arab News Pakistan

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