A NEW PERSPECTIVE ONPROSPERITY & PARTNERSHIP

ANNUAL REPORT 2019

RS.

CONTENTS

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

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

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.

01

To protect and promote the interests of U.S. Investors in Pakistan; to encourage and stimulate new investments; to introduce and inculcate best practices; to strive to establish a level playing field in the country in order to promote the development of commerce between the USA and Pakistan.

PROFILE

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.

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 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.

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MEMBERS

OFFICE BEARERS & EXECUTIVECOMMITTEE 2019

PRESIDENTMr. Ahmed Jamal MirManaging Director & CEOPrestige Communications (Pvt.) Ltd.

SENIOR VICE PRESIDENTMr. Sami AhmedVice PresidentProcter & Gamble Pakistan (Pvt.) Ltd.

VICE PRESIDENTMr. Kamran Attaullah KhanChief ExecutiveDuPont Pakistan Operations (Pvt.) Ltd.

Mr. Marazban MavalvalaExecutive DirectorAl-Hamd International Container Terminal (Pvt.) Ltd.

Mr. Imran Jehangir NasrullahCountry Head Pakistan & Group DirectorCargill Pakistan Holdings (Pvt.) Ltd.

Mr. Nadeem Inam Ul HuqCountry General ManagerInternational Learning Centre (Pvt.) Ltd. (Berlitz)

Mr. Adnan AsadChief Executive OfficerVenus Pakistan (Pvt.) Ltd.

Mr. Nadeem ElahiChief Executive OfficerTRG (Pvt.) Ltd.

Mr. Irshad Ali KassimChairmanKaram Ceramics Ltd.

Mr. Khurram Mohammad QamarDirector External AffairsPhilip Morris (Pakistan) Ltd.

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Mr. Farrokh K. CaptainChairman & Managing DirectorCaptain-PQ Chemical Industries (Pvt.) Ltd.

SECRETARY GENERAL

AUDITORS KPMG Taseer Hadi & Company

BANKERSCitibank, N.A.

LEGAL ADVISORHaroon Dugal Law Chambers

TAX ADVISORS Plus Consultants

Ms. Amna Daudi

MEMBERS

PRESIDENTMr. Adnan AsadChief Executive OfficerVenus Pakistan (Pvt.) Ltd.

SENIOR VICE PRESIDENTMr. S. Anis AhmedManaging DirectorAbbott Laboratories (Pakistan) Ltd.

VICE PRESIDENTMr. Khurram Mohammad QamarDirector External AffairsPhilip Morris (Pakistan) Ltd.

Mr. Marazban MavalvalaExecutive DirectorAl-Hamd International Container Terminal (Pvt.) Ltd.

Mr. Adeel ShahidVP - Head of Marketing & Public AffairsCitibank, N.A.

Mr. Farrokh K. CaptainChairman & Managing DirectorCaptain-PQ Chemical Industries (Pvt.) Ltd.

Mr. Nadeem Inam Ul HuqCountry General ManagerInternational Learning Centre(Pvt.) Ltd. (Berlitz)

Mr. Irshad Ali Shaban Ali KassimChairmanKaram Ceramics Ltd.

Mr. Kamran NishatManaging Director & CEOMuller &Phipps Pakistan (Pvt.) Ltd.

Mr. S. M. WajeehuddinCountry Manager & Chief ExecutivePfizer Pakistan Ltd.

Mr. Mohammad Asif PeerChief Executive OfficerSystems Ltd.

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OFFICE BEARERS & EXECUTIVECOMMITTEE 2020

SECRETARY GENERAL

AUDITORS A. F. Ferguson & Co.

BANKERSCitibank, N.A.

LEGAL ADVISORHaroon Dugal Law Chambers

TAX ADVISORS Plus Consultants

Mr. Jehangir Bashir Nawaz

PAST PRESIDENTS

1984-85 MR. HASAN I. KAZMI President Exxon Chemical Pakistan Ltd. 1985-86 MR. NAWAB ASGHER Chairman & Managing Director Pfizer Laboratories Ltd. 1986-87 MR. RUDOLF J. GEBERT Vice President & Country Manager Bank of America, NT & SA 1987-88 MR. RUDOLF J. GEBERT Vice President & Country Manager Bank of America, NT & SA 1988-89 MR. NAWAB ASGHER Chairman & Managing Director Pfizer Laboratories Ltd. 1989-90 MR. KAMRAN Y. MIRZA Managing Director Abbott Laboratories (Pakistan) Ltd. 1990-91 MR. ROBERT F. McCUSKER General Manager Interpak Shaving Products Ltd. 1991-92 MR. NISAR A. MEMON Country General Manager IBM World Trade Corporation 1992-93 MR. SUBHI W. JARUDI Managing Director Cyanamid (Pakistan) Ltd. 1993-94 MR. S. ALI RAZA Senior Vice President & Country Manager Bank of America, NT & SA 1994-95 MR. AIJAZ K. KHAN Chairman Wyeth Laboratories (Pakistan) Ltd. 1995-96 MR. SHAUKAT TARIN(Jun-Nov 95) Country General Manager Citibank N.A. (Dec 95-Jun 96) MR. FAROOQ HADI Managing Director Cyanamid (Pakistan) Ltd. 1996-97 MR. SHAMSHAD ALI Managing Director Johnson & Johnson Pakistan (Pvt.) Ltd. 1997-98 MR. S. SAJJAD RAZVI(Jun-Dec 97) Country General Manager Citibank N.A. (Jan-Jun 98) MR. ASIF IKRAM Country Manager DuPont Far East Inc. 1998-99 MR. FAROOQ HADI(Jun-Dec 98) Chairman, Managing Director (CEO) Cyanamid (Pakistan) Ltd.

(Jan-Sep 99) MR. KAMRAN Y. MIRZA Chairman & Managing Director Abbott Laboratories (Pakistan) Ltd. 1999-00 MR. PHILIPPE A. BOVAY Vice President & General Manager Procter & Gamble Pakistan (Pvt.) Ltd.

(Jul 00-Sep 00) MR. IRSHAD ALI KASSIM President & CEO Karam Ceramics Ltd.

2000-01 MR. TAWFIQ A. HUSAIN(Oct 00-Jun 01) Senior Director & Country Manager American Express Bank Ltd.

1984-85 MR. HASAN I. KAZMI President Exxon Chemical Pakistan Ltd. 1985-86 MR. NAWAB ASGHER Chairman & Managing Director Pfizer Laboratories Ltd. 1986-87 MR. RUDOLF J. GEBERT Vice President & Country Manager Bank of America, NT & SA 1987-88 MR. RUDOLF J. GEBERT Vice President & Country Manager Bank of America, NT & SA 1988-89 MR. NAWAB ASGHER Chairman & Managing Director Pfizer Laboratories Ltd. 1989-90 MR. KAMRAN Y. MIRZA Managing Director Abbott Laboratories (Pakistan) Ltd. 1990-91 MR. ROBERT F. McCUSKER General Manager Interpak Shaving Products Ltd. 1991-92 MR. NISAR A. MEMON Country General Manager IBM World Trade Corporation 1992-93 MR. SUBHI W. JARUDI Managing Director Cyanamid (Pakistan) Ltd. 1993-94 MR. S. ALI RAZA Senior Vice President & Country Manager Bank of America, NT & SA 1994-95 MR. AIJAZ K. KHAN Chairman Wyeth Laboratories (Pakistan) Ltd. 1995-96 MR. SHAUKAT TARIN(Jun-Nov 95) Country General Manager Citibank N.A. (Dec 95-Jun 96) MR. FAROOQ HADI Managing Director Cyanamid (Pakistan) Ltd. 1996-97 MR. SHAMSHAD ALI Managing Director Johnson & Johnson Pakistan (Pvt.) Ltd. 1997-98 MR. S. SAJJAD RAZVI(Jun-Dec 97) Country General Manager Citibank N.A. (Jan-Jun 98) MR. ASIF IKRAM Country Manager DuPont Far East Inc. 1998-99 MR. FAROOQ HADI(Jun-Dec 98) Chairman, Managing Director (CEO) Cyanamid (Pakistan) Ltd.

(Jan-Sep 99) MR. KAMRAN Y. MIRZA Chairman & Managing Director Abbott Laboratories (Pakistan) Ltd. 1999-00 MR. PHILIPPE A. BOVAY Vice President & General Manager Procter & Gamble Pakistan (Pvt.) Ltd.

(Jul 00-Sep 00) MR. IRSHAD ALI KASSIM President & CEO Karam Ceramics Ltd.

2000-01 MR. TAWFIQ A. HUSAIN(Oct 00-Jun 01) Senior Director & Country Manager American Express Bank Ltd.

(Jul 01-Sep 01) MR. ANJUM FASIH Managing Director Bristol-Myers Squibb Pakistan (Pvt.) Ltd. 2001-02 MR. ZUBYR SOOMRO Chief Executive & Country Corporate O�cer Citibank, N.A. 2002-03 MR. ARSHAD NASAR Managing Director Caltex Oil (Pakistan) Ltd. 2003-04 MR. ANJUM FASIH(Oct 03-Jun 04) Managing Director Bristol-Myers Squibb Pakistan (Pvt.) Ltd. 2003-04 MR. HUMAYUN BASHIR(Jul 04-Sep 05) Country General Manager IBM Pakistan 2004-05 MR. NADEEM KARAMAT Senior Director & Senior Country Executive American Express Bank Ltd. 2005-06 MR. ZUBYR SOOMRO Managing Director Citibank, N.A. 2006-07 MR. IQBAL BENGALI Managing Director Pfizer Laboratories Ltd. 2007-08 MR. TASLEEMUDDIN AHMED BATLAY Director Colgate-Palmolive (Pakistan) Ltd. 2008-09 MR. ASIF JOOMA Managing Director Abbott Laboratories (Pakistan) Ltd. 2009-10 MR. ARIF USMANI Managing Director & Citi Country O�cer Citibank, N.A. 2010-11 MR. HUMAYUN BASHIR Country General Manager IBM 2011-12 MR. SAAD AMANULLAH KHAN Chief Executive O�cer Gillette Pakistan Ltd. 2012-13 MR FARROKH K. CAPTAIN Chairman & Managing Director Captain-PQ Chemical Industries (Pvt.) Ltd. 2013-14 MR. SAAD AMANULLAH KHAN(Jan 14-May 14) Chief Executive O�cer Gillette Pakistan Ltd. 2013-14 MR. TAUQIR AHMED(Jun 14-Sep 14) Chief Executive DuPont Pakistan Operations (Pvt.) Ltd. 2014-15 MR. ARSHAD SAEED HUSAIN Managing Director Abbott Laboratories (Pakistan) Ltd.

2015-16 MR. NADEEM ELAHI Chief Executive O�cer TRG (Pvt.) Ltd.

2016-17 MR. SAMI AHMED Vice President Procter & Gamble Pakistan (Pvt.) Ltd.

2017-18 MR. KAMRAN NISHAT Managing Director & CEO Muller & Phipps Pakistan (Pvt.) Ltd.

(Jul 01-Sep 01) MR. ANJUM FASIH Managing Director Bristol-Myers Squibb Pakistan (Pvt.) Ltd. 2001-02 MR. ZUBYR SOOMRO Chief Executive & Country Corporate O�cer Citibank, N.A. 2002-03 MR. ARSHAD NASAR Managing Director Caltex Oil (Pakistan) Ltd. 2003-04 MR. ANJUM FASIH(Oct 03-Jun 04) Managing Director Bristol-Myers Squibb Pakistan (Pvt.) Ltd. 2003-04 MR. HUMAYUN BASHIR(Jul 04-Sep 05) Country General Manager IBM Pakistan 2004-05 MR. NADEEM KARAMAT Senior Director & Senior Country Executive American Express Bank Ltd. 2005-06 MR. ZUBYR SOOMRO Managing Director Citibank, N.A. 2006-07 MR. IQBAL BENGALI Managing Director Pfizer Laboratories Ltd. 2007-08 MR. TASLEEMUDDIN AHMED BATLAY Director Colgate-Palmolive (Pakistan) Ltd. 2008-09 MR. ASIF JOOMA Managing Director Abbott Laboratories (Pakistan) Ltd. 2009-10 MR. ARIF USMANI Managing Director & Citi Country O�cer Citibank, N.A. 2010-11 MR. HUMAYUN BASHIR Country General Manager IBM 2011-12 MR. SAAD AMANULLAH KHAN Chief Executive O�cer Gillette Pakistan Ltd. 2012-13 MR FARROKH K. CAPTAIN Chairman & Managing Director Captain-PQ Chemical Industries (Pvt.) Ltd. 2013-14 MR. SAAD AMANULLAH KHAN(Jan 14-May 14) Chief Executive O�cer Gillette Pakistan Ltd. 2013-14 MR. TAUQIR AHMED(Jun 14-Sep 14) Chief Executive DuPont Pakistan Operations (Pvt.) Ltd. 2014-15 MR. ARSHAD SAEED HUSAIN Managing Director Abbott Laboratories (Pakistan) Ltd.

2015-16 MR. NADEEM ELAHI Chief Executive O�cer TRG (Pvt.) Ltd.

2016-17 MR. SAMI AHMED Vice President Procter & Gamble Pakistan (Pvt.) Ltd.

2017-18 MR. KAMRAN NISHAT Managing Director & CEO Muller & Phipps Pakistan (Pvt.) Ltd.

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LIST OF ABC MEMBERS

Corporate Members

1. Abbott Laboratories (Pakistan) Ltd.2. Al-Hamd International Container Terminal (Pvt.) Ltd.3. ACNielsen Pakistan (Pvt.) Ltd.4. Captain-PQ Chemical Industries (Pvt.) Ltd.5. Cargill Pakistan Holdings (Pvt.) Ltd.6. Chevron Pakistan Lubricants (Pvt.) Ltd.7. Chubb Insurance Pakistan Ltd.8. Citibank, N.A.9. Colgate-Palmolive (Pakistan) Ltd.10. Continental Biscuits Ltd.11. Crescent Bahuman Limited12. DuPont Pakistan Operations (Pvt.) Ltd.13. Eli Lilly Pakistan (Pvt.) Ltd.14. F.C.I. International (Pvt.) Ltd.15. FMC United (Pvt.) Ltd.16. Gerry’s International (Pvt.) Ltd. (FedEx)17. Gray Mackenzie Restaurants International Ltd. (KFC)18. Health eConnex (Pvt.) Limited 19. IBM20. International Franchises (Pvt.) Ltd. (Dunkin Donuts)21. International Learning Center (Pvt.) Ltd. (Berlitz)22. Johan (Pvt.) Ltd. (Culligan)23. J.P. Morgan Pakistan (Pvt.) Limited24. Karam Ceramics Limited25. Levi Strauss Pakistan (Pvt.) Limited26. LMK Resources Pakistan (Pvt.) Ltd.27. Lotte Akhtar Beverages (Pvt.) Ltd. (PepsiCo)28. Mastercard Pakistan (Pvt.) Ltd.29. MCR (Pvt.) Ltd. (Pizza Hut)30. Microsoft Corporation Pakistan Liaison O�ce31. Mondelez Pakistan Ltd.32. Monsanto Pakistan (Pvt.) Ltd./Bayer Pakistan33. Muller & Phipps Pakistan (Pvt.) Ltd.34. NCR Corporation35. OBS Pakistan (Pvt.) Ltd.36. Ogilvy & Mather Pakistan (Pvt.) Ltd.37. Optimus Ltd. (Hertz)38. Oracle Corporation39. Pak Tectonic Services (Pvt.) Ltd.40. Pepsi-Cola International (Pvt.) Ltd.41. Pfizer Pakistan Ltd.42. Philip Morris (Pakistan) Ltd.43. Pioneer Pakistan Seed Ltd. 44. Prestige Communications (Pvt.) Ltd.45. Primatics Financial (Pvt.) Ltd.46. Procter & Gamble Pakistan (Pvt.) Ltd.

47. Rafhan Maize Products Co. Ltd.48. S&P Global Pakistan (Pvt.) Ltd.49. S.C. Johnson & Son of Pakistan (Pvt.) Ltd.50. Shipco Transport Pakistan (Pvt.) Ltd.51. Systems Limited52. Siza Foods (Pvt.) Ltd. (McDonald’s)53. Teradata Global Consulting Pakistan (Pvt.) Ltd.54. Teradata Pakistan (Pvt.) Ltd.55. The Coca-Cola Export Corporation56. TRG (Pvt.) Ltd.57. 3M Pakistan (Pvt.) Ltd.58. Uber Technology Systems Pakistan (Pvt.) Ltd.59. Universal Logistics Services (Pvt.) Ltd. (UPS)60. Venus Pakistan (Pvt.) Ltd.61. Visa Worldwide Singapore Pte. Limited62. WPP Marketing Communications (Pvt.) Ltd. (JWT)

Associate Members

1. Farrokh K. Captain2. GCS (Pvt.) Ltd.3. Sun Consulting (Pvt.) Ltd.

Membership by Category

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Advertising

Agriculture / Chemical /Fertilizers

Energy / Oil

Financial

FMCG

Food & Beverage

IT/Communication

Others

Pharmac eutical

Shipping & Logistics

Textile

U.S . – PAKISTAN –

SOME INTERESTING FACTS

General Trade

U.S. and Pakistan have shared a long bilateral trade relationship over the past 70 years.

• Bilateral trade in 2018 (January - December) was US$ 6.6 B and Pakistan exports were US$ 3.7 B

• 2019 (January – October) was US$ 5.2 B and Pakistan exports were US$ 3.3 B

• The United States remains Pakistan’s highest single export market destination and is just slightly behind the European Union as a whole. It benefits Pakistan to nurture the trade relationship with the United States.

Energy

USAID works with the GoP and Development Partners in improving the power system, strengthening private sector engagement, and promoting state-of-the-art technology. Key results include:

• Over 42 million Pakistanis benefited from USAID’s work since 2011 to add over 3,500 MW of electricity to the national grid including 1,049 MW of generation capacity from new and rehabilitated hydro and thermal power plants and 2,505 MW of transmission and distribution capacity

• Cumulative clean energy generation capacity supported by U.S. government reached 960 MW

• Customers are receiving more accurate energy bills as a result of USAID’s work to install or repair over 250,000 electricity meters

Education

USAID works with the GoP and Development Partners to increase access to and improve the quality of basic and higher education. Key results in this sector include:

• Built or repaired 1,619 schools throughout Pakistan since 2009

• Trained over 46,191 teachers and school administrators since 2013

• Awarded nearly 19,000 scholarships for talented students to attend tertiary education in Pakistan over the past nine years

• Reached more than 1.7 million primary-level learners through reading programs

• Built 17 Faculties of Education

Resilience

USAID works with the GoP and Development Partners to restore, rehabilitate public and private infrastructure in conflict-a�ected areas and is supporting returning populations as they get settled. Key results in this sector include:

• Distributed 2.5 million library books to increase children’s interest in reading

• Supported the livelihoods of farming families by restoring irrigation and improving drainage across more than 570,000 acres of arable land in Khyber Pakhtunkhwa province

• Rehabilitated a damaged power supply system and upgraded power grids in 88 villages in South Waziristan Agency for students to focus on their studies and tradespeople to use their machinery to generate more income

• Rebuilt and/or renovated over 2,500 health units and utility systems to enable local governments to deliver health services to local populations, which also helps to build people’s trust in government

Health

USAID works to improve primary health in the Afghanistan-Pakistan border region and to combat infectious disease threats in Pakistan. Key results in the sector include:

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• Provided over 9.8 million women and children with quality maternal, child, and reproductive health care services, including over 340,000 women and children in the di�cult-to-reach and insecure Afghanistan-Pakistan border region in 2018 - 2019

• Expanded access to clean drinking water and sanitation services for over 480,000 people across Khyber Pakhtunkhwa and Sindh provinces in 2018 - 2019

• Supported responses to infectious disease outbreaks in Pakistan

• Protected people from the proliferation of falsified and substandard medicines in Pakistan; and

• Leveraged over US$ 107 million in domestic resources for the procurement of

commodities so that Pakistan can meet the family planning needs of its citizens

Economic Growth & Agriculture

USAID works with the GoP and Development Partners to boost private sector development, enhance productivity, and improve the business-enabling environment. Key results include:

• Since 2011, more than one million rural households have benefited from USAID assistance to improve agricultural practices and support economic growth

• Since 2011, USAID assistance has helped create more than 106,000 new jobs

• In 2019, the value of annual sales for farms and firms receiving U.S. government assistance is US$ 18.6 million

ECONOMIC CONTRIBUTION

FINANCIAL SURVEY

Are you optimistic about the future economic and operating environment?

Short term (1year)

Long term (2+years)

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Yes No Not Applicable

Response

Short term (1 year) 39.13%18

YES

Response

58.70%27

NO NOT APPLICABLE TOTAL

2.17%1 46

Long term (2 + years) 91.49%43

6.38%3

2.13%1 47

How would you characterize your company’s financial performance in Pakistan 2018/19?

Profitable

Breakeven

Loss

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

ANSWER CHOICES

Profitable

Breakeven

Loss

TOTAL

70.21%

10.64%

19.15%

33

5

9

47

RESPONSES

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

Lower

Comparable

Higher

TOTAL

53.19%

27.66%

19.15%

25

13

9

47

RESPONSES

Lower

Comparable

Higher

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Survey response from 47 member companies

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Please rank your top five business challenges in Pakistan. (1 - most challenging & 5 - least challenging)

IncreasingCosts...

Inconsistentregulatory...

Obtainingrequired...

Regulatorycompliance...

Shortage ofqualified...

0%

1

10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

2 3 4 5 NA

1

Increasingcosts(Utilities,Duties,Taxes)

75.00%27

2

8.33%3

3

13.89%5

4

2.78%1

5

0.00%0

NA TOTAL

0.00%0 36

Inconsistentregulatoryinterpretationand unclearlaws

18.18%6

54.55%18

12.12%4

15.15%5

0.00%0

0.00%0 33

Obtainingrequiredlicenses(Ease ofdoingBusiness)

0.00%0

5.88%2

29.41%10

32.35%11

14.71%5

17.65%6 34

Regulatorycompliancerisks

0.00%0

20.00%7

40.00%14

28.57%10

8.57%3

2.86%1 35

Shortage ofqualifiedemployees

7.89%3

18.42%7

5.26%2

13.16%5

55.26%21

0.00%0 38

How would you rate the present overall business climate in the country?

Better

Same

Worse

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

ANSWER CHOICES

Better

Same

Worse

TOTAL

17.95%

20.51%

61.54%

7

8

24

39

RESPONSES

PERCEPTION SURVEY

How do you rate Pakistan's perception internationally?

Survey response from 39 member companies

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Better

Same

Worse

Not Applicable

100%

ANSWER CHOICES

Better

Same

Worse

Not Applicable

TOTAL

58.97%

30.77%

10.26%

0.00%

23

12

4

0

39

RESPONSES

11

Have the following factors had any quantifiable impact on your company's operations/investment plan?

Cost ofOperation

Law & Order

InfrastructureTransport

PoliticalUncertainty

Legislation

Approval/Licensing

HumanResources

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Response

Yes No Not Applicable

Cost of Operation 89.74%35

YES

Response

10.26%4

NO NOT APPLICABLE TOTAL

0.00%0 39

Law & Order 69.23%27

28.21%11

2.56%1 39

Infrastructure Transport 58.97%23

30.77%12

10.26%4 39

Political Uncertainty 84.62%33

15.38%6

0.00%0 39

Legislation 82.05%32

12.82%5

5.13%2 39

Approval / Licensing 56.41%22

23.08%9

20.51%8 39

Human Resources 66.67%26

30.77%12

2.56%1 39

How do you rate Pakistan's perception internationally?

Better

Same

Worse

Not Applicable

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

ANSWER CHOICES

Better

Same

Worse

Not Applicable

TOTAL

58.97%

30.77%

10.26%

0.00%

23

12

4

0

39

RESPONSER

PERCEPTION SURVEYSurvey response from 39 member companies

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CSR SURVEY

Which of the following areas does your company contribute towards through its CSR initiatives? Please tick wherever applicable.

Culture andHeritage

Child Welfare

Disaster Relief

EnvironmentConservation

Education

Healthcare

InfrastructureDevelopment...

People withSpecial Needs

SportsDevelopment

WomenEmpowerment

Not Applicable

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

ANSWER CHOICES

Culture and Heritage

Child Welfare

Disaster Relief

Environment Conservation

Education

Healthcare

Infrastructure Development (i.e. housing, water, sanitation, roads etc.)

People with Special Needs

Sports Development

Women Empowerment

Not Applicable

Total Respondents: 37

8.11%

27.03%

16.22%

27.03%

64.84%

43.24%

18.92%

35.14%

21.62%

37.84%

10.81%

3

10

6

10

24

16

7

13

8

14

4

RESPONSES

13

Please select the key geographic areas in each province in which your company's CSR programs are active:

Sindh

Punjab

Balochistan

KPK

Gilgit-Baltistan

Not Applicable

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

ANSWER CHOICES

Sindh

Punjab

Balochistan

KPK

Gilgit-Baltistan

Not Applicable

Total Respondents: 37

75.68%

64.86%

32.43%

37.84%

8.11%

13.51%

28

24

12

14

3

5

RESPONSES

Survey response from 37 member companies

EXECUTIVE COMMITTEE’S REPORT 2018-19

Execut ive Commit tee ’s Report 2018-19

Overview

The Executive Committee of the American Business Council of Pakistan (ABC) 2018-2019, started their tenure by prioritizing activities and initiatives for the upcoming year. The main focus was on:

1. Key issues identified by the ExCom Members and members that needed to be addressed with relevant stakeholders through engagement and interaction;

2. Increasing dialogue with the Federal Government and high-ranking U.S. Embassy o�cials on matters a�ecting American investment in Pakistan; and

3. Highlighting the role of ABC and ensuring more e�ectiveness at the national level.

However, the General Elections in Pakistan took place around the same time bringing into power a new government. Therefore, ExCom had to delay its interaction with its main stakeholder, the Government of Pakistan, giving sometime for the new cabinet members and o�cials to assume o�ce and settle in.

The economic growth of a country requires a conducive and enabling environment where the foreign investments are increased and the stakeholders’ interest protected and promoted. Therefore, ExCom’s initial focus was to further strengthen ties with the U.S. Embassy and the U.S. Consulate Karachi by proactively engaging with the Consul General and other Senior O�cials. ABC President and ExCom Members continued to play a critical role in bridging gaps by sharing their comprehensive understanding of the economy with potential investors, seeking information for investment in Pakistan.

ABC Members’ Meeting with the Prime Minister and Senior 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

Minister said that his government was committed to facilitate investors to increase their investment base in Pakistan.

The delegation suggested that the Government’s housing scheme should use locally manufactured raw material to boost and promote the local industries and also to allow Pakistanis with foreign account holdings to invest in Pakistan Banao Certificates. The issues raised by ABC Members during the meeting were received positively and action was taken within the next few days.

The attendees were Finance Minister, Advisor for Commerce, Special Assistants to the PM, Mr. Naeem ul Haq, Chairman Board of Investment and Secretary Commerce. During these meetings, policy recommendations in support of an economic climate conducive to growth, development of human capital and foreign investment were put forth.

The Executive Committee maintained an inclusive stance, seeking regular input from members and respective Sub-Committees on various matters, including the Federal Budget, Trade Policy and Investment. The goal is to increase the visibility of ABC and benefit the membership by making them a part of an e�ective body that contributes towards policy-making and shaping the economic environment of Pakistan.

We would like to thank members of the ABC for their support and involvement. The success of the Chamber depends on the participation and energy of its members and we look forward to a renewed commitment on part of our members, for their continued support and participation towards all Chamber activities. The consistent focus by council members on issues of good governance, trade policies and transparency, ensures a robust economy that is in the best interest of the nation.

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HIGHLIGHTS OF THE YEAR

ABC suggestions to the Federal Government

(a) Suggestions for Federal Budget 2019-20

The American Business Council appreciated the Government’s consultative e�orts to involve all chambers and business forums in the budget preparation process. The Council submitted its proposals relating to procedural and tax issues to the Federal Board of Revenue, Ministry of Commerce and the Board of Investment on February 7th, 2019.

(b) Suggestions for Trade Policy 2019-20

The American Business Council’s suggestions for Trade Policy (Import/Export) 2019-20 were submitted to the Ministry of Commerce, Federal Board of Revenue and the Board of Investment on February 7th, 2019.

ABC Meetings/BriefingPrograms/CEO Roundtable

• Inauguration of the ABC Secretariat - October 9th, 2018

The ABC Secretariat was inaugurated by Ms. JoAnne Wagner, U.S. Consul General of Karachi on October 9th, 2019. ABC was represented by Mr. Jamal Mir, President ABC, and Executive Committee Members. In his opening remarks, President ABC reiterated the critical role American companies are playing in promoting business, creation of job opportunities and contribution of taxes to the Government.

This was followed by brief remarks of the U.S. Consul General. In her address to ABC Members she said, “Over the years the business to business ties between the United States and Pakistan, the people to people ties have helped reconfirm, renew and resurrect the U.S. Pakistan relationship.” She added that she was very grateful to everyone for being a leader in those efforts. She stressed that together with concrete steps we could

help make the U.S. Pakistan relationship even more positive.

• ABC Meeting with U.S. Chargé d' Affaires - October 10th, 2018

Mr. Jamal Mir welcomed Ambassador Paul Jones and thanked him for taking time out to meet the ABC Members. After a brief introduction of ABC, its members and contribution to the national exchequer, Mr. Mir said that his visit will improve relationship between Pakistan and the U.S. He added that he was looking forward to learn more of U.S. strategy about Pakistan. He said that ABC is ready to play its role for improvement in relationship between the two countries.

Ambassador Paul Jones thanked the participants. He said this is his first visit to Karachi and it is his priority to develop commercial business relationship with the business community. He informed members that he had held meetings with the Pakistan Business Council in Washington as well as members and colleagues based in Washington. He also said that U.S. companies are facing broader issues in Pakistan and for its resolution we need to work closely.

Ambassador Paul Jones further said that he will lead the United States Mission in Pakistan in its ongoing efforts to deepen the connections between the Pakistani and American people, and work with the new Government of Pakistan towards a more stable, secure, and prosperous future for Pakistan.

Ambassador Jones also highlighted the positive

impact of U.S. government-funded exchange programs on the careers of Pakistani students and professionals, as well as on Pakistan-U.S. relations. He also underlined that the United States seeks to move toward a new relationship with Pakistan, based on mutual interest in realizing a stable and prosperous region.

The meeting ended with a vote of thanks.

Mr. Jamal Mir presented souvenir to the Chief Guest.

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• ABC Meeting with CPLC Chief - November 6th, 2018

ABC Members and the U.S. Consul General met with Mr. Zubair Habib, Chief, Citizens-Police Liaison Committee (CPLC) on November 6th, 2018 at CPLC Office. Mr. Zubair Habib gave a detailed presentation to the members about CPLC activities and how they have helped in combating crimes.

President ABC, Mr. Jamal Mir, presented ABC Members’ donation of Rs. 500,000/- to the CPLC Chief. CPLC Chief informed members of their Helpline No. 1102, available 24 hours, 7 days a week.

Some of the highlights of the presentation

were:

Combating crime by working closely with the police and help resolve cases pertaining to kidnapping, extortion and robbery:

> Managing Police Complaint Cell > Assisting Police in carrying out Traffic

Management > Assisting LEAs in Snap Checking of

Vehicles > Handling Complaints of Public Nuisance > Mediation and Arbitration in General

Disputes > Search cases of Lost/Runaway Persons > Drawing sketches of persons > Management of Call Center for Inquiries,

Emergencies and Complaints

Maintenance of FIR data

> CPLC has an up-to-date database of FIRs since 1987

> Updated on daily basis from their 9 zonal offices

> Total number of FIRs recorded up to October 31st , 2018 is 971,950

Maintaining database of Mobile Snatching/Theft

> A total of 1,151,340 records of mobile phones

> 50,068 recovered mobile phones have been returned to owners since 2005

Women Complaint Cell - CPLC

CPLC established Women Complaint Cell at its offices for quick disposal of cases and speedy justice to victims of Domestic Violence; Abusive Attitude; Cybercrime Victims; Bullying & Sexual Harassment; Rape; Abduction; Heirship Cases; Marital disputes etc.

More than 140 cases have been disposed of through Court of Law by closely working with legal aid society in the last three years.

The meeting was concluded with CPLC Chief presenting memento to the President ABC and the U.S. Consul General.

• ABC Meeting with Chairman IPO-Pakistan - November 8th, 2018

Ms. Amna Daudi, Secretary General ABC and ABC Members, welcomed Mr. Mujeeb Ahmed Khan, Chairman IPO-Pakistan and his team and thanked him for visiting Karachi and meeting ABC. The meeting was held on November 8th, 2018 at ABC Office. After a brief introduction of ABC, its members and contribution to the national exchequer, the Secretary General said that ABC is actively working towards the improvement and implementation of intellectual property rights in the country.

Mr. Mujeeb Khan thanked the participants and said that this is his priority to develop

commercial business relationship with the business community in Karachi. After ABC Members’ introduction, the Chairman

IPO-Pakistan introduced himself, stating that he has more than 30 years’ experience in

Trade Development through Multilateral & Bilateral Trade Negotiations and Diplomacy, International Trade Laws, International and Regional Trade Policy Integration and Implementation, Operations & Administration in government domains.

The Chairman IPO-Pakistan presented brief overview of the Intellectual Property Organization of Pakistan (IPO-Pakistan) stating that it was established as an autonomous body in April 2005 under the

17

HIGHLIGHTS OF THE YEAR

administrative control of the Cabinet Division for integrated and efficient intellectual property management in the country. In July 2016, the administrative control of IPO-Pakistan was transferred from Cabinet Division to Commerce Division. The major functions of the organization, inter alia, include:

• Administer and coordinate all Government systems for protection and strengthening of Intellectual Property (IP)

• Manage all IP offices in the country

• Create awareness about IP Rights

• Advise Federal Government on IP Policy

• Ensure effective enforcement of IP Rights through designated IPR Enforcement Agencies (Police, FIA, and Pakistan Customs)

The Chairman IPO-Pakistan further briefed members that in this era of knowledge-based economies, intellectual property is a major driver of any nation’s wealth through protection and promotion of innovation and creativity. In the backdrop of ongoing globalization, intellectual property management has assumed a critical role as a major driver of wealth creation in competitive economies. The realization that IP is a powerful driver of innovation and creativity for wealth creation is immensely growing in the world. He also said that in order to effectively utilize the IP mechanism for national wealth creation, IPO-Pakistan made it a foremost responsibility to address institutional weaknesses, which were impeding an efficient utilization of IP System in Pakistan.

The Chairman informed members that IPO-Pakistan alone cannot implement the immense agenda of establishing an effective IP regime, without the active support of all stakeholders. An effective communication campaign is required to be launched through mass media in this respect. The media should also highlight the violation of IP Rights

throughout the country and keep a close liaison with IPO-Pakistan.

He concluded that a lot of efforts are required to eliminate the menace of counterfeiting and piracy from top to bottom in the country. With the cooperation of all stakeholders, they have the potential and experience to better serve the nation.

The meeting ended with a vote of thanks and Ms. Amna Daudi, Secretary General, presented souvenir to the Chairman IPO-Pakistan.

• ABC CEO Roundtable Meeting with Governor Sindh - November 15th, 2018

ABC Meeting with Mr. Imran Ismail, Governor of Sindh, was held on November 15th, 2018. Mr. Jamal Mir welcomed the Governor of Sindh and thanked him for taking out time to meet the ABC Members. After a brief introduction of ABC, its members and contribution to the national exchequer, the President said that we recognize that this is government in change and the government has many challenges to face.

The Governor thanked ABC for inviting him and said that ABC is a major forum and partner in the economic growth of the country. He appreciated the positive role the American companies are playing in the various sectors of the economy.

The Governor further added that he was playing an instrumental role and acting as a bridge between the Federal Government and the Government of Sindh so that development initiatives are effectively

implemented in time. The Federal Government has initiated several energy, infrastructure and social sector projects for Sindh, which include Port Qasim Power Plant, Engro Thar Power Project and Thar Mine Mouth Oracle Project.

The Governor briefed members that the Government has also included the Karachi Circular Railway in the China-Pakistan Economic Corridor (CPEC) project while work

on the Green Line Mass Transit Project was

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also in full swing. He stressed on serious and coordinated efforts of the Government and private sector for the economic potential of Sindh, especially in Karachi.

The Governor thanked the ABC President and its members for providing him an opportunity to meet them. ABC Members are playing a tremendous role in improving Pakistan’s economy. The Government is also paying attention to improve Law & Order situation in this mega city. He said, earlier the ratio of mobile snatching and other Law & Order issues was high but our Law Enforcing Agencies are curbing them and these incidences are going down.

The Governor also said that endeavors and measures are being adopted by the Federal Government with regard to promotion of health business activities especially with reference to Sindh province. He also apprised the audience that Federal Government has notified an “Industrial Liaison Committee” to ease out the problems being faced by the industrialists and businessmen in approaching concerned ministries in Islamabad.

At the end of the session, President Mr. Jamal Mir thanked the participants and presented a memento to the Governor of Sindh.

• ABC Meeting with Director General, Pakistan Standards and Quality Control Authority (PSQCA) - December 12th, 2018

Ms. Amna Daudi, Secretary General ABC, welcomed Mr. Abdul Aleem Memon, Director General, Pakistan Standards & Quality Control Authority (PSQCA) at ABC Office and thanked him for taking out time to meet the ABC Members. After a brief introduction of ABC, its members and contribution to the national exchequer by the Secretary General, the Director General PSQCA thanked ABC for inviting him and said that ABC is a major forum and partner in the economic growth of the country. He appreciated the positive role the American companies are playing in the various sectors of the economy.

The Director General PSQCA briefed members that Pakistan Standards and Quality Control Authority is the National Standards

Body of Pakistan, working under the Ministry of Science and Technology, Government of Pakistan, and actively participates in standards’ development activities at international and regional level. At national level, PSQCA harmonizes Pakistan Standards with international and regional standards in order to facilitate business community, particularly SMEs. At present, PSQCA is developing the standards in the areas of Agriculture & Food Products, Chemicals & Chemical Products, Textiles, Automobiles, Halal Food, Mechanical, Electrical, Electronics, IT/ICT, Civil etc. PSQCA’s strategy is to standardize those industrial sectors which have an impact on trade. For this reason, PSQCA is focusing more on Food, Halal Food, Automobiles, Healthcare, Services Sector, etc. Moreover, PSQCA has a network of testing laboratories in Karachi, Lahore and Peshawar for testing of consumer products. On an average, laboratories of PSQCA handle more than 2000 samples of consumer products per month. At present, PSQCA is enforcing 105 products as mandatory to comply as Pakistan Standards. Among these, 40 are food products while remaining are non-food products. PSQCA is designated as National Enquiry Point of TBT of WTO. He also said that if someone has any query about

standards, technical regulations, compliance procedures for import and export products,

National Enquiry Point in PSQCA will provide information to stakeholders accordingly.

Some members also shared their issues in connection with the PSQCA for which the DG PSQCA provided answers.

The meeting ended with a vote of thanks and Ms. Amna Daudi presented memento to the Chief Guest.

• ABC Lunch Meeting with Ambassador Cameron Munter - January 14th, 2019

Mr. Jamal Mir, President ABC, welcomed former U.S. Ambassador Cameron Munter (President & CEO, EastWest Institute) and

thanked him for taking out time to meet the ABC Members. After a brief introduction of ABC, its members and contribution to the

national exchequer, Mr. Mir said that his visit will

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HIGHLIGHTS OF THE YEAR

improve relationship with the U.S. He added that he was looking forward to learn more of U.S. strategy about Pakistan. He said that ABC is ready to play its role for improvement in relationship between the two countries.

Ambassador Munter said that it is important to think about the historical background of the Pak-U.S. relations, but it is equally important to think about the future and try to speculate the strengths and possibilities of the future. He said that there was an overemphasis on two problems: how the U.S. looks at Pakistan through an Afghan lens and how the rift between the two countries is made out to be an entirely bilateral issue.

He also said it was the competence of the Pakistan Army that made them a good partner for Washington, and cited the example of the 2010 floods in Pakistan. He said that the U.S. granted funds to Pakistan during the tenure of former president General (R) Pervez Musharraf for curbing terrorism.

He further said that the U.S. also gave funds for the promotion of education in Sindh and Baluchistan.

The relations between U.S. and Pakistan have

always faced ups and downs and the U.S. feels Pakistan does not want to cooperate in the war against terrorism.

He also said that there is great opportunity in CPEC but it needs to be carefully checked. Moreover, Pakistan is likely to face debt distress due to rising current account deficit and external obligations linked to CPEC. The new government in Pakistan has already indicated it may pursue a bailout by the IMF, which has raised concerns that Pakistan may use the bailout money to repay CPEC debt. These financial crises illustrate China's debt-trap diplomacy and its Belt and Road Initiative to developing countries, as well as the curity threat they pose to the U.S.

He also emphasized to make dialogue with neighboring countries starting with India and make business relationship with the people in Indian Punjab and Mumbai, there is also more potential. Majority of people living in U.S. also have the same desire. Karachi and Mumbai are

financial hubs for the United States because of which it is essential for Washington to maintain good ties with India and Pakistan.

He said the real way to link Pakistan and U.S. was through Non-Government Sectors, Not-for-Profit institutions. The real challenge was to get the U.S. people to come to Pakistan and the perception of the security situation.

Ambassador Munter said that the U.S. wanted to maintain strong relations with Pakistan due to which it has been cooperating with Islamabad and has been investing in the Education Sector.

He said that each country has its own sets of problems. However, both the U.S. and

Pakistan have enormous philanthropic traditions. Each has a huge pool of talented and educated people. Hence, they need to utilize these assets, look at a long-term vision and make an investment in the future.

The U.S. Consul General, Wagner, thanked the Ambassador and said that she had the opportunity to work with the Ambassador in Washington. She said Pakistan’s ties with United States are stronger, despite ups and downs in the relationship, but we will work to promote trade and investment. She added that many of the U.S. companies working here are happy doing business in Pakistan.

Members also shared their thoughts on the U.S. Pakistan relations and the questions were addressed by Ambassador Munter.

The meeting ended with a vote of thanks and Mr. Jamal Mir presented souvenir to Ambassador Munter.

• ABC visit to U.S. Embassy and meetings with

the GoP Functionaries - February 6th and 7th, 2019

Meeting with U.S. Embassy O�cials

ABC Executive Committee’s annual visit to Islamabad took place on February 6th and 7th, 2019. The ExCom Members met the U.S. Ambassador and USAID team.

The meeting with the USAID team members included Helen M Pataki (Deputy Mission

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Director), Jeffery T Goebel (Director Economic Growth and Agriculture), Kanwal Bokharey (Deputy Director, Innovation and Partnerships Unit) and a few other senior members from the USAID Department. The USAID team informed the ExCom Members of the private sector partnership they had worked on and some ongoing initiatives. These include health services, agriculture and employment for youth opportunities.

The lunch meeting with the Ambassador and Henry Ensher (Deputy Assistant Secretary) who visited from Washington, included talks on increasing the trade relationship with Pakistan as well as increasing Private Sector engagement. Together the countries could work on projects, which could be mutually beneficial for both the countries.

Some of the factors which are hindering the progress of the country include high taxes and corruption. Some members expressed the IP issues which are being faced. These include:

• Low penalties and counterfeit increased from 11% to 22%

• Brand infringement

• Weak enforcement of laws

Pharmaceutical - The main setback for the Pharma Sector was that it is a highly over-regulated market with no price increase.

However, there is a lot of hope pegged with the new government - they are accessible and open for dialogue.

Meeting with Government O�cials

ABC Meeting with Chairman FBR - February 6th

ABC Members met Mr. Jehanzeb Khan, Chairman FBR. Mr. Nadeem Lodhi, Chairman Finance & Taxation Sub-Committee discussed the points from the ABC budget proposal. The Chairman and his team were highly receptive to the suggestions and assured that they would look into the recommendations by ABC.

Meeting with Finance Minister - February 6th, 2019

ABC Members met the Finance Minister, Mr. Asad Umar. The discussion included substantial increase of gas prices and the lack of availability, which was seriously affecting the operations especially tile manufacturers.

ABC Meeting with the President of Pakistan - February 7th, 2019

The President was very supportive of all the new investment being made by the American companies and encouraged others to bring in more investment.

ABC Meeting with the Prime Minister - February 7th, 2019

The delegation of the American Business Council expressed confidence in the policies of the Government. It termed the Government's steps towards ease of travel to Pakistan and ease of doing business as exemplary.

Overall, the sentiments of the new government were pro-business with emphasis on promoting ease of doing business. The delegation of the American Business Council comprised not only ExCom Members but also CEOs and senior executives from member companies. The group expressed its confidence in Government’s vision to create a more business-friendly environment. Addressing the ABC Members, Prime Minister said that his government philosophy was committed to facilitate investors to increase their investment base in Pakistan.

The delegation suggested that the Housing Scheme should use locally manufactured raw material to boost and promote local industries and also allow Pakistanis with

foreign account holdings to invest in Pakistan Banao Certificates, provided they can give documented evidence of their holdings prior to the January 31st deadline.

Issues raised by the ABC Members during the meeting were received positively and action was taken within the next few days.

21

The attendees were Finance Minister, Mr. Asad Umar, Advisor for Commerce, Razak Dawood, Special Assistants to the PM, Naeem ul Haq, Chairman Board of Investment, Haroon Sharif and Secretary Commerce, Muhammad Younus Dagha.

ABC Meeting with Chairman IPO-Pakistan

After a brief introduction of the ABC Members the Chairman IPO-Pakistan Mr. Mujeeb Ahmed Khan introduced himself by stating that he has more than 30 years’ experience in Trade Development through Multilateral & Bilateral Trade Negotiations and Diplomacy, International Trade Laws, International and Regional Trade Policy integration and Implementation, Operations & Administration in government domains.

The Chairman informed members that IPO-Pakistan alone cannot implement the immense agenda of establishing an effective IP regime, without the active support of all stakeholders. An effective communication campaign is required to be launched through mass media in this respect. The media should also highlight the violation of IP rights throughout the country and keep a close liaison with IPO-Pakistan.

• ABC Meeting with Chairman, Securities & Exchange Commission of Pakistan (SECP) and other o�cials - February 18th, 2019 at ABC

Mr. Jamal Mir, President ABC, welcomed Mr. Farrukh H. Sabzwari, Chairman SECP, Mr. Aamir Ali Khan, Commissioner (CSD) and Mr. Abid Hussain, Executive Director (CSD).

After a brief introduction of ABC by the President, its members and ABC’s contribution to the national exchequer, the Chairman stated that one of the objectives of SECP was to promote ease of doing business and address practical impediments faced by the Corporate Sector in implementation of the Companies Act, 2017. SECP had initiated consultation process with stakeholders for amendments to the provision of the Act.

The objective was to provide a level playing field and SECP was looking for suggestions

which would help facilitate business. SECP’s current focus was to proactively facilitate business growth, support private capital formation, improve access to formal financial products and interlink the capital markets with the real economy.

Chairman SECP presented overview of the Companies Act, 2017 and briefed members on the proposed amendments to the Companies Act, 2017, its existing provisions and the amended provisions on the Reference: Section, Sub-section and Clauses.

Chairman SECP addressed the members’ queries related to Companies Act, 2017. The session’s feedback was very positive and participants found it very helpful.

The session ended with Mr. Jamal Mir thanking the guests and presenting memento to the Chairman.

• ABC Meeting with Ms. Michelle Crockett, U.S. Treasury Attaché - February 27th, 2019 at ABC

The meeting started with a round of

introduction and Michelle wanted to understand the tax issues which U.S. companies were facing.

Following issues were pointed out in the meeting:

• Withholding Tax on Distributors Distribution is a high turnover and low margin

business and withholding tax makes doing business more difficult as amount of tax withheld against payments to them falls under final tax.

Section Transaction Existing

153(1)(a)

153(1)ab

Clause (24A) of Part II of 2nd

Schedule

Other Goods

Distributors of FMCG (Excluding durable goods)

Distributors of Cigarette and Pharmaceutical

products

4%

2%

1%

HIGHLIGHTS OF THE YEAR

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• Adjustment of Sales Tax on Pharmaceutical Inputs against Corporate Income Tax

Sales Tax paid on Pharmaceutical Inputs is

added to the product cost since the final product is exempt from Sales Tax.

• Sales Tax on Packaging Material

Sales Tax on Packaging Material is charged at the rate of 17%. This Sales Tax is added to the cost of the product since the final product is exempt from Sales Tax.

• Time Limit of Service of Refund Order

Section 170(4) of Income Tax Ordinance, 2001 provides the commissioner with 60 days from the receipt of refund application to pass a decision in respect of that application.

• High turnover Sales Tax and tax on import of Plant and Machinery

Companies face multiple audits during the

year.

• ABC Meeting with Chairman, Sindh Revenue Board (SRB) - March 14th, 2019

Mr. Jamal Mir, President ABC, welcomed Chairman SRB and his team and thanked him for taking out time to meet ABC Members. After a brief introduction of ABC and its members, the Chairman SRB briefed members about the 18th Constitutional Amendment. The Government of Sindh (GoS) and the Sindh Revenue Board regulate matters relating to the fiscal and related economic policies: administration; management; imposition; collection of taxes; duties; and other levies. By creating organization (SRB) capable of enforcing the tax system through application of modern techniques of information and developing automated system of collection and assessment of tax and the matters ancillary thereto in the Province of Sindh.

SRB is chaired by a Chairman who is assisted by 4 Members, one each for Taxation (previously known as Operations), Tax Policy,

Audit and Support Services. SRB is also assisted by a strong IT team and a state-of-the-art Data Centre, capable enough to absorb, assimilate and store the data of all the provincial taxes in Sindh.

In response to concerns expressed by members

over issuance of notices, Chairman SRB assured that they would come up with a solution to this particular issue so that no further notices are issued to the concerned company which, as an entity, is neither involved nor a source for any commercial activity.

Referring to Sindh Workers Welfare Fund (SWWF) the Chairman said that SWWF is levied on income and has no nexus with labor or worker. It is imposed on "Total Income" of an employer instead of pertaining specifically to that earned in Sindh.

The Chairman SRB also requested members to share their individual pending matters to SRB so the issues could be resolved in the best possible manner.

The meeting ended with vote of thanks to the Chairman SRB and his team. Mr. Jamal Mir, President ABC, presented memento to the Chairman SRB.

• Workshop on ‘Building Trust in Organization’ - March 20th, 2019

A workshop on ‘Building Trust in Organization’ was held at the ABC Secretariat. ABC invited Mr. Arshad Shamsi who is a business consultant and certified happiness at work coach who believes organizations that make a positive impact on people and planet are the organizations of the future. HR leaders of the member companies were invited. In his presentation he said that awareness is growing among consumers, employees, society and business leaders that the current profit driven business model is no longer viable. Profit driven companies have taken their toll on society, the environment and their employees. Only 15% of the world’s workforce is actively engaged at work. Stress, burn-out and depression are on the rise.

HIGHLIGHTS OF THE YEAR

23

He further said that it is time for a new story, in which purpose and happiness of employees are the license to operate. The foundation for this transition is ‘trust’.

He also informed members that the current profit driven paradigm has created tremendous wealth for a few, but at a huge cost for humanity and the planet:

• 60 million Pakistanis are living below the poverty line

• 70 liters of water is used to produce 1 liter of soft drink while 21 million Pakistanis have no clean drinking water

• 70% of the workforce is just present and the cost of presentism is 7x higher than the cost of absenteeism

Business created these problems and can solve these problems. When you are purpose driven, problems turn into business opportunities.

Purpose driven organizations create value for all stakeholders; customers; suppliers; employees; environment; and shareholders. Trust is a key ingredient for purpose driven organizations.

Purpose driven happy organizations are more productive, more creative, and more collaborative. They have a healthier and more engaged workforce, attract and retain top talent and are even more profitable in the long run.

In the workshop, participants learned about the science behind trust and how one can implement a culture of trust on which one can build high-performing and purpose driven teams.

The participants felt quite enlightened after the workshop.

• ABC Meeting on Pre-Trade and Investment Framework Agreement (TIFA) - April 18th, 2019

The U.S. Consulate and Embassy were actively working to promote the U.S.

Companies. Afghanistan remains a top priority area and Pakistan could play a major role in promoting peace and stability in the

region. Core areas of the Pre-Trade and Investment Framework Agreement included:

• Investment • Tax • Repatriation of Profits • Coordination of Federal and Provincial • Intellectual Property (IP) Protection • Enforcement of Policy Board • Agriculture • Digital Trade - IT Sector • Barriers to entry • Pharmaceuticals – U.S. Regulators

Various companies gave their inputs on the business concerns which were being faced.

AICT - Curbing of imports where almost a 30%-40% downturn in business was.

MCR (Pizza Hut) - Companies like Pizza Hut where cheese is one of the main ingredients used. After adding the 17% tax and royalties of 25% the viabilities of operations were questionable.

Other issues which were discussed were that only 5% of the royalty payment could be legally remitted. If the payments exceeded the 5%, Pakistani Law did not allow that and other means would have to be used.

For provinces especially Sindh and Punjab, there is a difference in tax structure, non-uniformity and inconsistency in policy. Businesses operating in different provinces were paying different taxes and it was hurting businesses.

The present government is very receptive and listens. However, not much action is taken to solve the prevailing issues. There was also a recent discussion on the Webinar which took place.

• ABC North Members Meeting with USCG Lahore - April 24th, 2019

Mr. Kamran Ataullah Khan (Vice President ABC & Chief Executive, DuPont), Mr. Syed Safeeullah Shah (General Manager, Uber) and Mr. Usman Qayyum (Managing Director & Chief Executive, Rafhan Maize) met U.S. Consul General Lahore, Ms. Colleen Crenwelge, at the U.S. Consulate, Lahore.

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An introductory meeting was held to explore possible synergies of working together.

• OSAC Karachi Chapter Meeting at U.S. Consulate - May 2nd, 2019

U.S. Regional Security Officer, Shane L. Dixon, invited ABC Members to OSAC Karachi Chapter Meeting held on May 2nd, 2019 at the U.S. Consulate.

The U.S. Department of Homeland Security, in collaboration with Pakistan Customs and Pakistan Federal Investigation Agency, presented an informational session on International Property Rights.

• ABC CSR Day - May 2nd, 2019

ABC hosted its first annual ‘CSR Day’. The theme was "Impacting Futures - Building Communities" and showcased the work being carried out in the field of Corporate Social Responsibility by American companies operating in Pakistan. Last year, ABC Members partnered with NGOs nationwide contributing over Rs. 570 million and impacting more than 400,000 lives.

In this first inaugural session to celebrate and showcase their commitment to CSR, a number of ABC Members highlighted various initiatives to support NGOs like Green Crescent Trust, Hunar Foundation, Indus Hospital, FESF (Deaf School), HOPE and many more. Through programs such as “Maseeha”, “WeSeeEqual”, Mitao Bhook”, in the sectors: Healthcare, Education,

Women’s Empowerment, Special needs, Environmental Conservation, Child Welfare and many others.

USAID Director, Michael Hryshchyshyn was present at the event and conveyed the remarks of the U.S. Consul General in Karachi, JoAnne Wagner, when he said, “It is exciting to see that American companies are finding success here in Pakistan. But success for American companies is more than just making a profit. Success also means doing the right thing, giving back to the community, making lives better for your customers, and being a positive role model for others to follow.”

In addition to running successful businesses, ABC Members with their global expertise and best practices are contributing significantly to enhancing social development in Pakistan. The President ABC, Mr. Jamal Mir, thanked everyone for attending and making ABC’s first CSR Day a success. He said, “This first step not just showcases our work, but encourages even greater involvement and participation for the future - enhancing ABC’s contribution and commitment to the development of Pakistan.”

• Meeting with Trade Representatives from Washington D.C. - May 3rd, 2019

The United States Trade Representatives from Washington D.C., Zeba Reyazuddin and Erland Herfindahl visited ABC office on May 3rd, 2019. The Trade Representatives discussed about doing business in Pakistan, challenges and opportunities, trade policy/enforcement/GSP etc.

• ExCom Meeting with World Bank O�cials - May 6th, 2019

ExCom Meeting with World Bank Officials was held on May 6th, 2019 at ABC office. The following World Bank Officials participated:

1. Gonzalo Varela (Senior Economist)

2. Christian Schoen (PrivateSector Specialist)

3. Wafa Aranki (Senior Private Specialist)

4. Bin Zhai (Private Sector Specialist)

The World Bank team is working on the “Pakistan Goes Global” initiative. The team is working closely with the Ministry of Commerce, Government of Pakistan on how to boost trade and competitiveness.

The purpose of the visit was to carry out the National Quality Infrastructure Diagnostic in order to:

• Assess the conditions of the Quality Infrastructure (QI) ecosystem in Pakistan through application of diagnostic

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• To do preparation work for CALIDENA, the participatory methodology to help identify and stimulate the demand of QI services in a selected value chain

They ask the ABC Members to have more insights on the challenges being faced with product/process quality and the current offers of QI services (e.g. standards, testing, certification), for a better understanding of QI services demand in the country.

Some of the factors highlighted during the discussion which were hindering growth and exports were:

• Global buyers were reluctant to come to Pakistan because of the rating the country has. Getting travel insurance is also very difficult and the general perception that Pakistan is an “unsafe” country to do business in

• Other factors hindering competitiveness are

profitability of exports

• Support to firms productivity upgrading

• Coordination of public policies toward trade and investment competitiveness

• Pakistan lacks good quality human resources and there is lack of technical training

• Some free trade agreements made by the Government are also hurting business, and local industry cannot compete with Chinese products

• Smuggling of goods from Iran

• Farewell Iftar/Dinner in honor of U.S. Consul General from Mr. Adnan Asad - May 26th, 2019

Mr. Adnan Asad, Member Executive Committee, hosted a farewell Iftar/Dinner in honor of Ms. JoAnne Wagner, U.S. Consul General Karachi on May 26th, 2019. Members and other guests participated.

• ABC Farewell Reception for USCG JoAnne Wagner - June 15th, 2019

An ABC reception to bid farewell to Ms. JoAnne Wagner, U.S. Consul General was held on June 15th, 2019 in Karachi. Members and other guests participated.

• Secretary General’s Meeting with USAID funded Pakistan Reading Project (PRP) - June 19th, 2019

Secretary General shared that ABC member organizations have jointly spent Rs. 800 million in CSR program over the last 3 years in Pakistan.

Representatives of USAID funded Pakistan Reading Project, Mr. Anjum Pervaiz (Head of Operations Sindh, PRP) and Mr. Akbar Jawad (PPP Specialist, PRP) briefed Secretary General about the work being done by the Pakistan Reading Project group. The Secretary General appreciated the great work and commitment of the group and possible avenues of partnership of the PRP group to increase literacy and reading skills of the underprivileged children in the country was also discussed.

• ExCom Meeting with Secretary Investment Department, Government of Sindh held on July 2nd, 2019 at Investment Department, FTC Center, Karachi

The Secretary, Department of Investment, Government of Sindh, Mr. Ahsan Ali Mangi, invited ExCom Members in his office. Mr. Jamal Mir, President ABC and Mr. Maju Mavalvala, Member ExCom attended the meeting. The main agenda of the meeting was to collectively host an interactive session followed by dinner with the U.S. Consul General, Chief Secretary Sindh and the business community in Karachi in order to explore various investment opportunities available in Sindh and to explore the U.S. markets to further strengthen ties between the two countries.

The Secretary Investment informed the President that Investment Department was established by the Government of Sindh with a broad-based aim of facilitating both local

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and foreign investors and to promote the untapped potential in different sectors of

economy. He said that Sindh Government has already launched ease of doing business portal for investors’ facilitation \(www.doingbusiness.org/en/data/exploreeconomies/pakistan), where complete information is available for local and foreign investors as how to register their business using a single window solution.

• ExCom Meeting with Deputy Assistant Secretary Erv Massinga visiting from Washington held at USCG’s residence on July 10th, 2019

An ExCom Meeting with Deputy Assistant Secretary, Erv Massinga, was held on July 10th, 2019. Mr. Massinga is heading Pakistan desk in Washington. The agenda of the meeting was to discuss American businesses/their sentiments and read the pace of business pulse, understand challenges and opportunities and get advice on how to collaborate better to improve commercial ties.

• ExCom Meeting with Consular Section Chief, Ken Chavez and Nonimmigrant Visa Chief, Sarah Cranston - on August 21st, 2019

ExCom met Kenneth Chavez (Consular Section Chief) and Sarah Cranston (Nonimmigrant Visa Chief) on August 21st, 2019. The Chiefs of U.S. Visa Consulate wanted to understand some of the visa issues being faced by ABC Members.

It was decided that a meeting would be set up for ABC Members so they could directly interact with the U.S. Visa team at the Consulate.

• CEO Roundtable with Governor State Bank held on August 26th, 2019 in Karachi

Mr. Jamal Mir, President ABC, welcomed Dr. Reza Baqir, Governor SBP and thanked him for taking out time to meet the ABC Members. After a brief introduction of ABC, the President ABC requested the Governor to share his view on the country’s economic policy.

The Governor SBP thanked the American Business Council for organizing the meeting. The Governor’s team included: Dr. Saeed Ahmed, Chief Economist SBP; Mr. Muhammad Ali Malik, Executive Director (FMRM) SBP; and Mr. Syed Samar Husnain, Executive Director SBP.

The Governor began his speech by answering the three most frequently asked questions.

1. Why has the State Bank taken tough economic adjustment measures?

2. What are the key problems of Pakistan and what has the State Bank done to address these issues?

3. How does the State Bank see the future?

Dr. Baqir informed the participants that Pakistan was facing issues on the internal side and the external side. Pakistan’s biggest challenge was the current account deficit. The gap between foreign exchange receipts and foreign exchange requirement. It was a matter of grave concern that the current account deficit structurally increased. He said that in December 2014, Pakistan’s current account deficit was zero. In other words, the foreign exchange needs and the country’s foreign exchange resources were being met. By December 2017, the current account deficit had reached $2 billion per month.

The exchange rate was not adjusted in the last 3 years which resulted in a sharp decline in foreign exchange reserve. With the exchange rate not being adjusted, the exports suffered.

Governor SBP admitted that the economy of Pakistan was weak, unemployment on the rise and inflation moving upwards. However, with the current economic policy, the country was heading in the right direction. If Pakistan were to continue to move in this direction with commitment, Pakistan would achieve prosperity. He further added that the economic team was working on a plan to strengthen the economy. The plan will help achieve economic development and benefit the low-income and middle-class segments of the population.

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He emphasized that the biggest challenge currently being faced was to bring continuity and eliminate uncertainty of policies. If that could be achieved, the country’s future outlook would be very positive.

The Government had initiated a reform package, however, it affected general public since inflation had already scaled new peaks. On the other hand, incumbent Government’s strategies to increase revenue though new measures coupled with unbridled inflation have pushed up interest rates and uncertainty.

ABC Members also shared their thoughts and asked questions relating to the current economic issues which are being faced. These questions were addressed by the Governor and other senior SBP Officials.

The meeting ended with a vote of thanks and the ABC President, Mr. Jamal Mir, presenting souvenir to the Governor State Bank,

Dr. Reza Baqir.

• ABC Meeting with U.S. Economic Counselor - August 29th, 2019 at ABC secretariat

Ms. Peggy Walker, the new Economic Counselor at the U.S. Embassy (Islamabad) met ABC Members on August 29th, 2019. After a quick round of introduction, she said she appreciated the talent that existed in Pakistan. She wanted to understand the overall economy especially the prospects of increasing trade and investment to the U.S. especially after the recent visit of the PM to Washington. She wanted to understand the different ways the U.S. could work with Pakistan to make a difference.

ABC Members shared their views and some of the concerns which are hampering growth and productivity in the country. The meeting ended with a positive note and a word of thanks from the President.

• ExCom visit to Lahore and Dinner with North-based Members - September 14th, 2019

ExCom Members visited Lahore on September 14th, 2019 and an ExCom Meeting was held at

DuPont’s Office, Lahore. In the evening, ExCom Members and a few Lahore-based members visited the Wagah Border.

Later that evening, ABC hosted a dinner. The guest list included ABC North Members/ABF Members, some Punjab Government Officials. The dinner was hosted to increase interaction and build greater engagement with the North members.

• ABC Meeting with U.S. Consulate - Visa Section Team (Karachi) - September

19th, 2019

ABC Meeting with the U.S. Consular Section Chief, Ken Chavez and Sarah Cranston, Non-immigrant Visa Chief was held on September 19th, 2019.

The highlights of the session were:

• U.S. Visa Officers are trained to make the process as fair, consistent and transparent as possible

• Based on the US immigration law - the law presumes that every applicant applying for visa wants to reside/immigrate to the US unless they can prove it otherwise

• The passport must have a 6 months’ validity before an applicant applies and renewing the visa should be done as early as possible - can even be a year before the visa expires

• While assessing the applicant, the Visa Officer looks at the following things:

> Travel history (last 5 years) > The ability to clearly state - articulate the

reason/purpose of travel > Where and why is the applicant traveling > Duration of stay

• Currently interview dates being given are about a month after the applicant applies for the visa. However, in some cases of emergency, the interview date can be expedited - if there is a medical reason; death in the family; students who have to join university; or if the passport has been lost or stolen

• Tourist visas are generally issued for 5 years

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• Supporting documents while applying for visa are generally not looked at since documents can be forged easily. However, it is recommended that the applicant carries supporting document, in case the Visa Officer asks for anything specific

• Once a visa is rejected, one can re-apply if the applicant feels that the Visa Officer missed out some important detail

• 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 it can be reviewed by the Visa Officer prior to the interview (useful tip)

Link for visa queries: KarachiVisaQuery@state.gov

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

Meetings of the Executive Committee

The Executive Committee convened and participated in 46 meetings and events during the period. It constituted 9 Sub-Committees, defined their Terms of Reference and gave policy directions from time to time.

On behalf of the Executive Committee

Ahmed Jamal MirPresident

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Program & Event Photo Gallery

ABC Meeting with the U.S. Chargé d' Affaires – Oct 10th, 2018

PROGRAM & EVENT PHOTOGALLERY

ABC Members & guests during the meeting

Ambassador Paul Jones with the ABC Members & guests

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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

PROGRAM & EVENT PHOTOGALLERY

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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

PROGRAM & EVENT PHOTOGALLERY

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ABC CEO Roundtable Meeting with the Governor Sindh– Nov 15th, 2018

ABC Members & guests with the Governor Sindh

PROGRAM & EVENT PHOTOGALLERY

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ABC Members & guests with the Governor Sindh

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

PROGRAM & EVENT PHOTOGALLERY

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ABC Lunch Meeting with Ambassador Cameron Munter – Jan 14th, 2019

Ambassador Cameron Munter addressing the ABC Members

ABC Members & guests with Ambassador Cameron Munter

PROGRAM & EVENT PHOTOGALLERY

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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

PROGRAM & EVENT PHOTOGALLERY

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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

PROGRAM & EVENT PHOTOGALLERY

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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

PROGRAM & EVENT PHOTOGALLERY

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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

PROGRAM & EVENT PHOTOGALLERY

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ABC Meeting with Chairman, Sindh Revenue Board (SRB) – March 14th, 2019

Chairman SRB briefing the ABC Members

President ABC presenting memento to Chairman SRB

PROGRAM & EVENT PHOTOGALLERY

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ABC CSR Day – May 2nd, 2019

ABC Members & guests during the session

ABC Members & guests during the session

Group photo - ABC Members & guests

PROGRAM & EVENT PHOTOGALLERY

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ABC Farewell Reception for USCG JoAnne Wagner – June 15th, 2019

President ABC addressing the members & guests

The USCG addressing the members & guests

PROGRAM & EVENT PHOTOGALLERY

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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

PROGRAM & EVENT PHOTOGALLERY

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ABC Meeting with the U.S. Economic Counselor - Aug 29th, 2019

U.S. Economic Counselor briefing to members

ABC Members during the meeting

PROGRAM & EVENT PHOTOGALLERY

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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

PROGRAM & EVENT PHOTOGALLERY

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REPORTS OFSUB-COMMITTEES

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REPORT OF THE AGRICULTURE AND

FOOD/BEVERAGES SUB-COMMITTEE

Mr. Usman QayyumChief Executive & Managing DirectorRafhan Maize Products Co. Ltd.

Mr. Asad AbdullaDirectorInternational Franchises (Pvt.) Ltd. (Dunkin Donuts) Mr. Muhammad Owais SiddiquiCountry Business Lead – PakistanNutrition & BiosciencesDuPont Pakistan Operations (Pvt.) Ltd.

Mr. Azeem NiaziChief Executive & Government LeadMonsanto/Bayer Pakistan (Pvt.) Ltd.

Mr. Jahanzeb SaeedDirector Consumer DivisionMuller & Phipps Pakistan (Pvt.) Ltd.

Terms of Reference:

1. Co-ordinate with members relating to the Agriculture and Food/Beverages sectors. Identify and define major issues pertaining to these sectors.

2. Develop a position paper on the issues identified and engage the relevant stakeholders.

The activities of the Subcommittee are summarized below:

All the issues/challenges which were being faced by the industry were listed including the Food Standards/Regulations

• ABC position paper with the issues/proposal/ benefits be made and presented to the Government.

Members feedback for the position paper consisted the following:

• Clear policy on GMO (Genetically Modified) import

o Clear policy on GMO crops needs to be devised – bio-safety assessment of genetically modified crops (both for sowing purposes as well as import of genetically modified oilseed crops such as soybeans and canola for further value-addition purposes) needs to be made much simpler.

• Difficulties for industry players wanting to engage in manufacturing activities - inability to get manufacturing status under Sales Tax regime against toll manufacturing

o It was proposed that Government should allow companies to register themselves – benefits would include utilization of currently un-utilized capacity in Pakistan, help in job creation, increase the tax base and reduce import bill.

• Arbitrary imposition of import conditions on seed import by the Department of Plant Protection (DPP) of Ministry of National Food Security and Research hindering timely import of seed for commercial and research purposes

o DPP is requested to consult the industry stakeholders before introducing new import conditions and establish reasonable timelines for full enforcement of the same.

o Fulfillment of conditions is contingent upon government to government correspondence which may take months to complete. An interim arrangement is

Chairman

Members

Mr. Imran Jehangir NasrullahCountry Head Pakistan & Group DirectorCargill Pakistan Holdings (Pvt.) Ltd.

Co-ChairmanMr. Adnan AsadChief Executive OfficerVenus Pakistan (Pvt.) Ltd.

necessary to ensure the continuity of seed supply for some of the most critical crops, including maize, rice and vegetables. The Hybrid Maize seed introduced by Bayer Crop Science and industry peers has been instrumental in increasing yields by more than 3 times. More than 90% of maize farmers in Punjab benefit from these high yielding seeds.

• Issuance of license for import of GM Agriculture commodities for Food, Feed and Processing

o Ministry of Climate Change through the National Biosafety Committee (NBC) to notify the application guidelines and expedite issuance of licenses to technology providers.

o Lack of clarity on process has resulted in the accrual of millions of dollars of demurrage and detention charges on grain imports. The time delay and additional costs have had a significant impact on the oil extraction and animal 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.

REPORT OF THE AGRICULTURE AND

FOOD/BEVERAGES SUB-COMMITTEE

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Mr. Tariq KhanDirector Finance & Company SecretaryMuller & Phipps Pakistan (Pvt.) Ltd.

Mr. Mahad HafezChief Financial Officer Chubb Insurance Pakistan Ltd.

Mr. Muhammad Shahid MotenAssociate Finance DirectorEli Lilly Pakistan (Pvt.) Ltd.

Mr. Agha Shah WalliullahAssociate Director - Head of Legal & CorporateColgate-Palmolive Pakistan Ltd.

Mr. Kashif ShafiChief Financial OfficerPfizer Pakistan Ltd.

Mr. Muhammad Kamran AminChief Financial Officer Al-Hamd International Container Terminal Ltd.

Mr. Muhammad AhsanAssistant Manager (Accounts)Cargill Pakistan Holdings (Pvt.) Ltd.

Mr. Jamshed AzharChief Financial OfficerAbbott Laboratories (Pakistan) Ltd.

Mr. Shariq Saeed BaigChief Financial OfficerIBM

Mr. Jawaid SiddiquiFinancial Controller, DuPontDuPont Pakistan Operations (Pvt.) Ltd.

Mr. Shahzeb KhanAccounting & External Reporting Lead (Pak)Mondelez Pakistan Ltd.

Mr. Umer JavedFinancial ControllerPhilip Morris (Pakistan) Ltd.

Mr. Arif IdreesCountry Finance LeaderProcter & Gamble Pakistan (Pvt.) Ltd.

Terms of Reference:

1. Identify and develop positions on major issues related to Finance & Taxation.

2. Develop ABC proposals for the Federal Budget and Provincial Budget.

3. Study major Government policy directives on various matters related to Finance & Taxation, concerning members of ABC and the American Business Community at large.

4. Ensure a level playing field for member companies by actively and indiscriminately perusing rules and regulations.

Activities of the Finance & Taxation Sub-Committee are summarized below:

• The Finance & Taxation Sub-Committee sought input from ABC Members to prepare an all-inclusive proposal for the Federal Budget 2019-20. ABC submitted its proposals related to tax and procedural issues to the Federal Board of Revenue (FBR), Ministry of Commerce and the Board of Investment on February 7th, 2019

• The Sub-Committee worked closely with secretariat staff to assist in Chamber finance related matters and submitted a budget proposal with the following points:

• Documentation of economy is important for broadening the tax base

Chairman

Members

Mr. Nadeem LodhiCiti Country OfficerCitibank, N.A.

Co-ChairmanMr. Gulzeb KhanChief Financial OfficerCitibank, N.A.

REPORT OF THE F INANCE & TAXATION

SUB-COMMITTEE

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• The non-productive sectors of the economy should be appropriately taxed

• Tax regime should be easy to comply with thereby reducing administrative burden on the tax payers

• Focus should be on direct instead of indirect taxation

• There must be consensus amongst the federal and provincial tax authorities

• High corporate and Sales Tax rates promote tax evasion

The Federal Budget 2019-20 proposals consisted the following:

• Ease of doing business

1. Multiple Audits conducted in the same year

2. Reconciliation of Financial Statements

3. Time Limit of Service of Refund Order

4. CREST

5. Minimum Tax Regime Section 152

6. Duty Drawback on Export to Afghanistan

7. Confusion between Sindh WWF and Federal WWF

8. Withholding Tax on Distributors Current Rates for WH Tax

9. Revision of Sales Tax Return [Section 26(3)] - Delay in approval of revision return filings

10. Input Sales Tax Disallowances

11. Advances included in the definition of Supply

12. Tax Collection and Revenue Leakages

13. Withholding Tax Exemption on Raw Material Import under SRO 717(1)/2014

14. Sales Tax adjustment - Service received from non-resident

15. Worker Profit Participation Fund (WPPF)

16. Advance Tax Estimate – 147(6)

17. Exemption Certificate under Section 153(4)

• Simplification

18. Multiple Notices to Taxpayers

19. Multiple Withholding Tax Categories

20. Issuance of Notice on IRIS

21. Incentives to Supply Chain Members

22. Input Tax Credit on Services

23. General Reforms/Proposals

• Pharmaceutical

24. Transfer Pricing & Related Party Transactions

25. Adjustment of Sales Tax on Pharmaceutical Inputs against Corporate Income Tax

26. Sales Tax on Packaging Material

27. Sales Tax on Active Pharmaceutical Ingredients (APIs)

• Manufacturing

28. Tax Credits to boost Investments

29. Additional categories to be covered under Section 65B (Tax Credit on BMR)

• Tobacco

30. Tax Structure

31. Enforcement against Illicit Manufacturers

• Ceramics

32. Duties on Raw Material

REPORT OF THE F INANCE & TAXATION

SUB-COMMITTEE

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33. Turnover Tax

34. Local Manufactures

35. Smuggling of Tiles

36. Sales Tax Rate

• Non-Profitable Organization

37. Approval for status of NPO

• Others

38. Under Invoicing

39. Royalty Payments

Achievement of the Finance & Taxation Sub-Committee last year:

Inputs of the ABC budget recommendations were considered by the Government and the Finance Bill proposed to prescribe a mechanism to pay income tax refunds through ‘income tax refund bonds’ which would be issued by FBR Refund Settlement Company Limited.During the year, the Council met with the Prime Minister, Ministry of Commerce and FBR.

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.

REPORT OF THE F INANCE & TAXATION

SUB-COMMITTEE

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Mr. Zahid HussainDirector Materials Management, Abbott Abbott Laboratories (Pakistan) Ltd. Mr. Ahsan SarwarExecutive DirectorAl-Hamd International Container Terminal (Pvt.) Ltd.

Farrukh ZaheerTrade HeadCitibank, N.A.

Mr. Humayun AkhlaqueGlobal Technology Services ManagerIBM

Mr. Danish ShahAssociate Director SalesProcter & Gamble Pakistan (Pvt.) Ltd.

Mr. Nabeel TurabiProperty & Casualty ManagerChubb Insurance Pakistan Ltd.

Terms of Reference:

1. Study major Government policies related to Trade, Industry (incl. Import & Export), and Environment, impacting members of the ABC and the American Business Community at large.

2. Identify and develop positions on major issues related to Government procedures, policies and enactments affecting Trade, Industry, etc.

3. Develop ABC suggestions for Import and Export Policies and overall Trade Policy.

4. Ensure a level playing field for member companies in Trade & Industry by lobbying for

the removal of discriminatory Rules and Regulations.

Activities of the Industry & Trade are summarized below:

ABC suggestions for the Trade Policy 2019-20

The Sub-Committee discussed and addressed issues and suggestions received from members, and based on these finalized suggestions for the Trade Policy 2019-20, forwarded them to the Federal Government on February 7th, 2019.

Executive Summary of suggestions for Trade Policy 2019-20

• A 2% extra duty being charged at the time of import of raw material which was added by the Ministry of Finance still continues for the last year, needs to be abolished

• A turnover tax of 2% is charged to the new industries, which should be abolished in totality to boost industrialization

• Pakistan Industries charge one of the highest Sales Tax, which is between 18-21% to the Industry (Manufacturers). Sales Tax is a tax which is equivalent to VAT, which is to be paid by the end user and not by the manufacturer. Due to weakness in the system, this burden is added on to the manufacturer

• The tariff rates of Gas and Electricity are highest in the region as compared to Indonesia, Sri Lanka, Bangladesh

• Industrialization needs to take place in order to curtail poverty level and eliminate the ultra-poor from our society

Chairman

Members

Mr. Irshad Ali KassimChairmanKaram Ceramics Ltd.

Co-ChairmanMr. Farhan AhmedManager Regulatory AffairsPhilip Morris (Pakistan) Ltd.

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Trade Policy sector-wise Government Policies which are impacting business are as follows:

Ceramic Industry

• High duty on Raw Material makes manufacturing non-competitive

• Abolishment of Turnover Tax• Sales Tax is highest in the region• High Tariff Rates of Gas and Electricity

Food & Beverages

• Imposed charges on depletion of ground water

Information Technology

• Long Visa processing duration of foreign consultants

• Cumbersome documentation for imports on IT maintenance

Insurance Industry

• Attract FDI in Insurance Sector/Branches of International Insurance Companies

• Allowing international insurers to set up branches in Pakistan would attract FDI and will be a step towards growing, strengthening and developing the Insurance Sector

• Permission of Direct Settlement for Travel Insurance Claims in Non-Schengen Countries

• Removal of prequalification of Reinsurers by State Reinsurer

• Need for Holistic Approach to Regulations by SBP and SECP/Reinsurance from Regional Countries

Pharmaceutical and Healthcare

• High taxes and regulated pharma market make the industry non-competitive

Shipping and Logistics

Mining and Minerals Industry The mineral contribution to the total GDP can

be increased 10%-20% in the next ten years if proper policies are put in place.

Industrial Power Tariffs Lower cost of production would lead to more

competitive Pakistani exports, which would drive elimination of trade deficit.

Regional Competitiveness of Pakistani Ports Other ports like Jebel Ali, Port Hammad, Port

of Salalah etc. are handling much larger volumes than Karachi Port and Port Qasim. This is primarily due to higher port costs and terminal handling charges at Pakistani ports.

Tobacco Industry

Tobacco Taxes and Illicit Cigarette Trade Pakistan faces a critical challenge with the

wide presence of cheap illegal cigarettes, which currently stands at 33% market share. The Government has lost more than PKR 100 billion in excise revenues during the past 3 years due to these illicit cigarettes and the primary reason for their existence is the tax driven price differential between legal and illicit brands (currently at 130%).

Potentially generate additional cigarette excise revenue for the Government to the tune of PKR 35-40 billion.

Improving Tobacco Exports For Pakistani tobacco to be competitive in the

international market, the Government has to ensure that the Minimum Indicative Price (MIP) is calculated as per the ground realities and in-line with inflation.

REPORT OF THE INDUSTRY & TRADE

SUB-COMMITTEE

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.

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Chairman

Members

Mr. Adnan AsadCEOVenus Pakistan (Pvt.) Ltd.

Co-ChairpersonMs. Amar AbbasiHead of Legal and Government Relations LeaderProcter & Gamble Pakistan (Pvt.) Ltd.

REPORT OF IPR , LEGAL & GOVERNMENT

RELATIONS SUB-COMMITTEE

Mr. Omar CalleaHead of Legal Mondelez Pakistan Ltd. Ms. Aiza KhawajaAttorneyIBM

Mr. Zubair YaqubManager ITS&PPhilip Morris Pakistan Ltd.

Mr. Munaf Hussain LakdaDirector Legal & AdminMuller & Phipps Pakistan (Pvt.) Ltd.

Mr. Cyrus F. KangaExecutive DirectorAl-Hamd International Container Terminal (Pvt.) Ltd.

Mr. Muhammad Ali AamirCorporate & Govt. Affairs ManagerMondelez Pakistan Ltd.

Ms. Seema KhanDirector Regulatory AffairsAbbott Laboratories (Pakistan) Ltd.

Mr. Shaharyar SiddiqAVP & Legal CounselCitibank, N.A.

Ms. Sana IftikharDirector LegalPfizer Pakistan Ltd.

Mr. Agha Shah WalliullahAssociate Director, Head of Legal & CorporateColgate-Palmolive (Pakistan) Ltd.

Mr. Jawaid SiddiquiFinancial ControllerDuPont Pakistan Operations (Pvt.) Ltd.

Terms of Reference:

1. Identify key IPR and counterfeit issues impacting ABC Members and work on programs and actions intended to influence legislation related to IPR in both Pakistan and the U.S..

2. Raise awareness on illicit trade, IPR violation and counterfeit and its impact on Government revenues, product quality and consumer health & safety.

3. Create a liaison with relevant Government offices both Provincial and Federal and establish a platform for discussion for ABC and its members.

4. Advise on matters having legal implications for ABC Members and the Chamber.

Activities of the Sub-Committee are summarized below:

Guest speaker sessions to improve legal awareness and improve Government connections.

Members also discussed:

1. Redundancy of IPR Laws - specifically, penalties in the law for IPR violations continue to be extremely low, failing to act as a reasonable deterrent to IPR violators/counterfeiters.

2. Long length of litigation/IPR disputes before the tribunals, again failing to be a strong deterrent for violators.

3. Very expensive private agencies charging an arm and a leg with counterfeit prevention activities/research/raids, whereas this should be essentially the Government’s job.

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REPORT OF IPR , LEGAL & GOVERNMENT

RELATIONS SUB-COMMITTEE

Visit of Chairman IPO-Pakistan at ABC Secretariat

Mr. Mujeeb Ahmed Khan, Chairman IPO-Pakistan and his team visited the ABC Secretariat on November 8th, 2018. After a brief introduction of ABC and its members, the IPOP delegation were briefed that ABC is active for improvement and implementation of intellectual property rights in the country.

Mr. Mujeeb Khan thanked the participants and said that it is his priority to develop commercial business relationship with the business community in Karachi.

The Chairman IPO-Pakistan further briefed members that in this era of knowledge-based economies, intellectual property is a major driver of any nation’s wealth, through protection and promotion of innovation and creativity. In the backdrop of ongoing globalization, intellectual

property management has assumed a critical role as a major driver of wealth creation in competitive economies. The realization that IP is a powerful driver of innovation and creativity for wealth creation is immensely growing in the world. He also said that in order to effectively utilize the IP mechanism for national wealth creation, IPO-Pakistan made it a foremost responsibility to address institutional weaknesses which were impeding an efficient utilization of IP System in Pakistan.

At the end of the meeting he said that a lot of efforts are required to be made to eliminate the menace of counterfeiting and piracy from top to bottom in the country. To resolve and seek cooperation of all the stakeholders, we have all the potential and experience to meet the confidence reposed by the Government to better serve the nation for economic development and fair trade practices.

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.

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Mr. Nadeem Elahi Managing Director TRG (Pvt.) Ltd.

Mr. Ahsan Sarwar Executive Director Al-Hamd International Container Terminal (Pvt.) Ltd.

Mr. Ahmed Rauf Rehmani Director IT Colgate-Palmolive (Pakistan) Ltd.

Mr. Jibran Jamshad Country Education Lead Microsoft Corporation

Mr. Bilal Khan Head of BI & Data Science Practice Teradata Global

Mr. Asif Peer CEO Systems Ltd.

Mr. Shoaib Qureshi Client Technical Architect IBM

Mr. Zafar Ul Islam Lead Technology Strategist Microsoft Corporation

Mr. Adeel Qaiser Country Consulting Leader Teradata Pakistan

Terms of Reference:

1. Promote an effective understanding of privacy, cybersecurity, and data security (physical and cloud) amongst IT & Innovation stakeholders in Pakistan.

2. Engage with public and private entities to improve Pakistan’s ease of business by focusing on the following themes:

a. Create a business-friendly environment (policy, licensing, regulation & ACTs).

b. Enhanced physical access to Pakistan (visa processes, risk perception).

c. Streamline IT exports and imports.

d. Attract greater FDI on the back of material improvement in ease of business.

3. Both new and existing business models depend on the sensible tax regimes that have a long-term view on emerging sectors and business models. This Sub-Committee will work with the Government to achieve IT and innovation-friendly tax frameworks.

4. Payments are core to IT & Innovation, an area where this Sub-Committee will work with members and external stakeholders to achieve a payment-friendly environment in Pakistan. This will include:

5. B2B and B2C payments, including digital payments.

6. Requisite framework and transaction clarity for offshore companies.

7. Growing the local IT industry and fostering innovative partnerships (universities, vocational training) to improve human capital and promote entrepreneurship.

8. Create seamless and effective mechanisms for this Sub-Committee to engage and integrate with IT & Innovation task forces and

ecosystems, including public, private, and international stakeholders.

Chairman

Members

Mr. Safee ShahGeneral Manager Uber Technology Systems Pakistan (Pvt.) Ltd.

REPORT OF THE IT & INNOVATION

SUB-COMMITTEE

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In the first meeting of the Sub-Committee, it was decided that members will send input on any issues being faced by the IT Industry, how the Government can help, and how it would contribute to the economy/exports/national exchequer.

Activities of the Sub-Committee are summarized below:

The Sub-Committee identified some of the other factors that the committee could discuss, including:

• How to boost IT Exports

• How to promote the IT Industry

• Difficulties the IT Sector faces at both Provincial and Federal levels

The Sub-Committee also prepared suggestions for submission to the concerned Government functionaries, including:

• Simplify documentation and facilitate imports of IT maintenance parts

• Expedite Pakistan entry visas for foreign consultants

ABC summary of suggestions for IT & Innovation Policy 2019-2020:

1. Use reputable third-party reports, promotional material, Government cooperation, and other methods to improve Pakistan’s brand value and market its strengths to foreign governments, investors, and businesses, including:

a. Attractiveness of Pakistan as a technology business destination.

b. Improvement in Pakistan’s security and sociopolitical climate.

c. Ample supply of academics and educated resources in IT.

d. Robust technology infrastructure available to international businesses interested in establishing business operations in Pakistan.

2. Improve Pakistan’s technology-oriented human capital reserves by:

a. Encouraging local and multinational businesses to provide opportunities for the development of human capital, such as hands-on training, technology certification, etc.

b. Providing recommendations to relevant Federal and Provincial Government Organizations to help them modernize their Computer Science and IT curricula.

3. Encourage local entrepreneurship and innovation by:

a. Providing physical resources and sharing expertise with start-ups to accelerate the development of ideas into high-quality, marketable products and services.

b. Engaging young innovators and discovering new talent by organizing coding competitions, hosting hackathons, and rewarding creative problem-solving.

4. Request the State Bank of Pakistan to amend their policies and procedures regarding remittances out, which are a source of challenges for Pakistani businesses that export IT products and services.

5. Request the Securities & Exchange Commission of Pakistan (SECP) to simplify the registration of businesses for multinationals by providing convenient one-window service.

6. Provide recommendations to public and private-sector stakeholders for improving Pakistan’s technology and telecommunications infrastructure.

REPORT OF THE IT & INNOVATION

SUB-COMMITTEE

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7. Coordinate with local government and foreign embassies/consulates to expedite visa processing for Pakistani IT professionals.

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.

9. Provide suggestions to local government on a way forward for having Pakistan removed from the FATF greylist.

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.

REPORT OF THE IT & INNOVATION

SUB-COMMITTEE

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Mr. Nadeem Inam Ul HuqManaging DirectorInternational Learning Centre (Pvt.) Ltd. (Berlitz)

Mr. S. Nasir Imam Bukhari Country Lead Public Affairs & CommunicationPfizer Pakistan Ltd. Mr. Shaukat KhokharCountry Leader One Channel - Global Business Partner IBM

Mr. Agha Shah WaliullahDirector & Head of Legal & CorporateColgate-Palmolive (Pakistan) Ltd.

Mr. Farhan AhmedGeneral Manager RegulatoryAffairsPhilip Morris (Pakistan) Ltd.

Ms. Rashna Spencer KaranjiaAl-Hamd International ContainerTerminal (Pvt.) Ltd.

Terms of Reference:

1. Positively project ABC to key stakeholders and create awareness of key issues through various ABC events, activities and media engagement.

2. Propose a plan to invite high profile guest speakers to address ABC Members on current issues or subjects of general business interest.

3. Propose a plan for the ABC Economic Summit and recommend high profile speakers and invitees for the event. Work with ABC Secretary General to plan and manage the event.

4. Regular communication highlighting Corporate Social Responsibility (CSR) achievements of member companies to create a positive perception of U.S. companies operating in Pakistan.

5. Create and facilitate partnerships between ABC member companies and suitable deserving philanthropic organizations to encourage greater interaction, awareness and support.

Activities of the Sub-Committee are summarized below:

• The Sub-Committee discussed plans to organize a CSR Day

On May 2nd, 2019 ABC hosted its first annual ‘CSR Day’. ABC Members showcased the work carried out in the field of Corporate Social Responsibility. Last year ABC Members partnered with NGOs nationwide and contributed over Rs. 570 million, impacting more than 400,000 lives.

The inaugural session celebrated and showcased the commitment of American Companies to CSR. ABC Members highlighted various initiatives to support NGOs like Green Crescent Trust, Hunar Foundation, Indus Hospital, FESF (Deaf School) and HOPE, through programs such as “Maseeha”, “WeSeeEqual”, Mitao Bhook” in sectors like: Healthcare, Education, Women’s Economic Empowerment, Food Security, Environmental Conservation, Child Welfare and many others.

USAID Director, Michael Hryshchyshyn, chief guest at the event, conveyed the remarks of the U.S. Consul General in Karachi, JoAnne

Chairman

Members

Mr. Ahmed Jamal MirManaging Director & CEOPrestige Communications (Pvt.) Ltd.

Co-ChairmanMs. Claudia ManuelCorporate Communications ManagerProcter & Gamble Pakistan (Pvt.) Ltd.

REPORT OF THE MEDIA , PR , PROGRAMS &

CSR SUB-COMMITTEE

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REPORT OF THE MEDIA , PR , PROGRAMS &

CSR SUB-COMMITTEE

Wagner, when he said, “It is exciting to see that American companies are finding success here in Pakistan. But success for American companies is more than just making a profit. Success also means doing the right thing, giving back to the community, making lives better for your customers, and being a positive role model for others to follow.” The Sub-Committee emphasized the need to create linkages between NGOs and ABC Members to gain support for the initiatives undertaken by these NGOs.

The Chairman worked closely with the ABC Secretariat during the year and held forty-six

networking sessions including CEO roundtables. The Sub-Committee agreed to schedule guest speaker programs/CEO lunch meetings at least once every two months.

These events were prominently covered by the leading TV networks and newspapers, creating a space and image of ABC as a prominent stakeholder in the economic sphere e.g. Two major TV networks sought the opinion of the ABC President on their Prime Time Political & Economic Affairs shows during the Prime Minister of Pakistan’s visit to the USA in July 2019.

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.

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Mr. Asif AhmedCountry Sales ManagerIBM

Mr. Muhammad Kamran AminHead of FinanceAl-Hamd International Container Terminal (Pvt.) Ltd.

Terms of Reference:

1. To oversee and review the membership criteria for ABC.

2. Pursue a membership drive to seek new members for ABC.

3. To facilitate the presence and close interaction of ABC in the North Region.

4. To have a close liaison with the Pakistan Government functionaries for advocacy resolution of all ABC issues.

5. To have a close liaison with U.S. Govt. members for advocacy and resolving ABC issues as and when required.

Activities of the Membership Sub-Committee are summarized below:

In the first meeting of the Sub-Committee, Mr. Kamran Khan recommended on approaching a few companies for membership, including:

• DOW, Pioneer, Corteva as well as Regus

• The discussion revolved around what ABC could do to make it more active in the North. Since most of the activities centred around Karachi. Some of the suggestions to activate the North was to have an ExCom meeting in Lahore

• This could be followed by a dinner

• Other ideas included to have the agriculture and food meeting in Lahore

• Mailing ABC Annual Report and Membership Form to potential ABC Members

ExCom visit to Lahore and Dinner with North-based Members - September 14th

The ExCom Members visited Lahore on September 14th; later that evening ABC hosted a dinner. The guest list included ABC North Members/ABF Members and some Punjab Government Officials. The dinner was hosted to increase interaction and build greater engagement with the North Members.

Chairman

Members

Mr. Kamran Ataullah KhanChief ExecutiveDuPont Pakistan Operations (Pvt.) Ltd.

REPORT OF THE MEMBERSHIP & NORTH

MEMBERS’ SUB-COMMITTEE

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.

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Dr. Raeef uddin AhmedDirector Medical and Market AccessAbbott Laboratories (Pakistan) Ltd.

Mr. Raza Saeed Abbas Medical LeadEli Lilly Pakistan (Pvt.) Ltd.

Mr. Saqib ZiaHead of MarketingProcter & Gamble Pakistan (Pvt.) Ltd.

Mr. Mujeeb Ali KhanDirector PharmaMuller & Phipps Pakistan (Pvt.) Ltd.

Mr. Muhammad Owais SiddiquiCountry Business Lead – PakistanDuPont Pakistan Operations (Pvt.) Ltd.

Terms of Reference:

1. Pharmaceutical Industry to identify issues and develop metrics on how to solve issues:

• Pricing • Availability of product • How to expedite registration • Contract manufacturing • Serialization/barcoding

2. Ensure a level playing field for member companies in these sectors.

3. Engage with the regulatory authorities and key stakeholders to highlight the major challenges and concerns facing ABC member companies.

The activities of the Sub-Committee are summarized below:

In the first meeting of the Sub-Committee there was an update given by the Chair Mr. Anis Ahmed.

He said that the Pharma Industry is a highly regulated industry and there had been no price increase since 2001. There were a lot of cases under litigation and under the SRO 1002 about the 15 percent hike in medicine prices and there was a stay order issued. However, post Supreme Court directives things looked slightly positive.

There was a discussion to actively engage and set up meetings with:

1. Ministry of NHSR&C 2. CEO of DRAP 3. Federal Minister 4. Secretary Narcotics

The Sub-Committee also prepared a position paper and the salient features were:

• McKinsey & Company termed the pharmaceutical industry as one of 3 potential “sunrise” industries with an exports potential of USD 1 billion

• It is highly regulated with a price-controlled regime and has an estimated annual turnover of approx. USD 3.1 billion

• US companies such as Abbott Laboratories, Eli Lilly and Pfizer are pioneers and market leaders in Pakistan’s pharmaceutical industry. In 2017, MNC pharmaceutical companies alone paid more than PKR 15 billion in tax and invested USD 100 million in Pakistan

• The multinationals account for 44.3% of the market in value and 44.7% of the market in volume

• The Pharma Industry is the largest employer of university graduates in urban and rural areas, providing employment to over 4 million people including many females

Chairman

Members

Mr. S. Anis AhmedManaging DirectorAbbott Laboratories (Pakistan) Ltd.

Co-ChairmanMr. S.M. WajeehuddinCountry Manager & Chief ExecutivePfizer Pakistan Ltd.

REPORT OF THE PHARMACEUTICAL &

HEALTHCARE SUB-COMMITTEE

REPORT OF THE PHARMACEUTICAL &

HEALTHCARE SUB-COMMITTEE

Reforms required:

The regulatory environment for the Pharmaceutical Industry needs to be aligned in stepwise manner with global industry trends if the industry is to develop and survive in an exceedingly competitive environment.

Adopt International Standards

Develop Policies/SOPs in collaboration with the

industry assuring that these SOPs result in access of quality medicines to the patients.

Patent infringement/Counterfeits

Intellectual Property Right (IPR) violations are a serious threat to research based pharmaceutical companies resulting in widespread distribution of counterfeit and sub-standard drugs. In 2012, Intellectual Property Organization was formed 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.

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Col. (R) Chaudhry Muhammad SabahuddinSr. Vice President CSISCitibank, N.A.

Col (R) Syed Asif Iqbal ZaidiHead of SecurityAbbott Laboratories (Pakistan) Ltd.

Col. (R) Toqir Raza ShahGeneral Manager Administration & SecurityMuller & Phipps Pakistan (Pvt.) Ltd.

Mr. Ahsan Zamir SiddiqiSenior Manager Admin. & Marketing ServicesEli Lilly Pakistan (Pvt.) Ltd.

Mr. Muhammad Murtuza KaziClaims ManagerChubb Insurance Pakistan Ltd.

Mr. Filraz SiddiquiDirector SecurityPfizer Pakistan Ltd.

Mr. Yar MuhammadHead of SecurityPhilip Morris Pakistan Ltd.

Mr. Ghulam AbbasSecurity ConsultantIBM

Mr. Rehan NaseerFacility Services LeaderDuPont Pakistan Operations (Pvt.) Ltd.

Terms of Reference:

1. To create a forum via which ABC companies are able to access effective information and contact the appropriate resources when the need arises.

2. To identify and maintain contacts within the Government, Rangers, Police, CPLC and Army, to be shared with all members.

3. To share information on security threats, advisory notes and best practices regarding safety measures amongst the Sub-Committee and larger membership as required via WhatsApp alert list/google groups.

4. Meeting once in every two months.

5. Awareness sessions every 6-month (February/August).

Activities of the Sub-Committee are summarized below:

• The Sub-Committee decided that a group for security alerts would be created, member company wanting to join would send in the name, designation and company name to the following number: 0312-333-3369

• ABC Security Google Group was also activated.

• Few security update meetings at the time of air raids with India took place.

• U.S. Regional Security Officer invited ABC Members for the Overseas Security Advisory Council (OSAC), Karachi Chapter. Meeting was held at the U.S. Consulate. The U.S. Department of Homeland Security collaborated with Pakistan Customs and Pakistan Federal Investigation Agency presented an informational session on International Property Rights. The informational session was well attended.

Chairman

Members

Mr. Norbert AlmeidaSenior Manager - Global Security - MEA & PakistanProcter & Gamble Pakistan (Pvt.) Ltd.

REPORT OF THE SECURITY

SUB-COMMITTEE

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.

Co-ChairmanMr. Malik Muhammad ZaheerArea Security ManagerMondelez Pakistan Ltd.

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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)

ABC MEMBERS’CSR ACTIVITIES

ABC MEMBERS’ CSR ACTIVIT IES

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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

Children (OOSC) with an estimated 22.8 million children aged 5-16 not attending school, representing 44 per cent of the total population in this age group, and the numbers are increasing with the passage of each year. Keeping this in view, AICT came up with the initiative “Educating Pakistan” in which their core focus was to provide maximum number of children with education. AICT is bearing expense for educating up to a

total of 150 children in a year spanning through di�erent forums, along with providing necessary education. AICT has also arranged to provide home economics activities to grown-up girls to help them earn their bread and butter through (stitching, baking etc.) and compete in the world.

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 education, electricity, gas, water, healthcare and much more are covered. Sirat Ul Jannah as of today houses 150 children between the ages of 3 and 20 years. AICT ensures that any child staying there lives a well-balanced life. An integral part of their daily life is a rigorous school and activity schedule just like living with a family. A typical day consists of the younger children going to an English medium school like Paris Model School and DA School and the older children going to Karachi University, followed by Quranic education and tuitions to assist in their schoolwork. The children, during their free time, are allowed to stimulate their creative imagination through many on site activities along with a large play area on the roof. To create an environment of love, the children are taught to be sensitive towards the needs of others. As they grow up, the children are encouraged to start their practical life.

Along with this AICT has also taken over responsibility of covering monthly expenses of individual women who have no family to support them.

AICT along with its employees is committed to bring a positive change within the community.

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 programs, contributing to the sectors of health and education from July 2018 to June 2019.

35 million underprivileged Pakistanis have been supported in sectors of health, education, social 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 MEMBERS’ CSR ACTIVIT IES

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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 employer. The company policy includes equal compensation and benefits. Women’s Day is celebrated at both the plant and Head O�ce in Sukkur.

Education

Through the Family Educational Service Foundation, the company contributed towards

the education of deaf children, as well as sponsored the education of 30 underprivileged students of Bachelor’s/Master’s of IBA Sukkur.

Healthcare

CBL organized a free Eye Checkup Camp for all its employees and Blood Donation Camp at the plant in collaboration with Al Shifa Eye Hospital and Regional Blood Centre.

ABC MEMBERS’ CSR ACTIVIT IES

Crescent Bahuman Ltd. (CBL)

CBL’s story of sustainability is a 25 years’ long quest in creating and preserving the Greenest Ecosystem the Denim Industry has ever known. It is a unique story, which depicts the remarkable transformation of 600 acres of marshland into South East Asia’s first vertically integrated Denim Facility. The strategic plantation of 5 million Eucalyptus trees to gradually reduce the water table. A water capturing drain channel was also constructed to reduce water table, which ultimately not only benefited the company but also benefited the community at large - making agriculture possible.

Wastewater Treatment Plant

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.

Women Empowerment

In 1994, CBL made a commitment to economically empower women by providing them the opportunity in 40 KM radius along with free transport.

A special training program has been developed to train and enable them for better opportunities.

Safe and Healthy Workplace

CBL takes responsibilities for maintaining a safe 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

ABC MEMBERS’ CSR ACTIVIT IES

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Eli Lilly Pakistan (Pvt.) Ltd.

What is Lilly Global Day of Service (LGDOS)?

Eli Lilly encourages employees to build higher community engagement in many sectors such as Education, Environment, Health and Human Services.

Partnering with organizations in our communities, the priority areas which Eli Lilly focuses on are:

• Healthy Lives• Healthy Minds• Healthy Communities

Lilly Global Day of Service (LGDOS)

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.

Karachi - Head O�ce

In Karachi, employees visited DEWA (Deaf Education Welfare Academy) in Gulshan on October 03, 2019. Around 300 special children with learning disabilities, autism and other physical or learning disabilities come to DEWA to learn. The focus of the day was around engagement with the 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: 100Total Hours spent: 700 hours Total Budget spent: PKR 250,000/-

ABC MEMBERS’ CSR ACTIVIT IES

Gray Mackenzie Restaurants International Ltd. (KFC)

“Mitao Bhook” (which translates directly to “eradicate hunger”) is a platform that was conceived from the idea of eradicating hunger for education and fulfilling hope of progress. In Pakistan, it has enabled KFC to transform lives.

In Pakistan as of 2018, the literacy rate stood at 62.3%, leaving countless impoverished individuals with a hunger for education.

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.

KFC Pakistan’s Diversity initiative, ‘Dame Riders’ is a direct advocate of Women Empowerment in a third world nation. In Pakistan, the industry witnesses zero female delivery professionals. KFC hired its own team of exceptional and capable women to take on the reigns of delivering piping hot chicken to our customers. KFC has always been an equal opportunity employer and this program helped the organization to increase its women to men employee ratio.

Following this, KFC Pakistan also introduced the first restaurant run entirely by women in the city of Lahore.

ABC MEMBERS’ CSR ACTIVIT IES

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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).

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

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.

ABC MEMBERS’ CSR ACTIVIT IES

Mondelez Pakistan Limited

Mondelez Pakistan distributed Free of Cost Tang in Ramazan to the general public in Sindh by joining hands with various NGOs located in the province.

The Rivers of Tang drive saw us partner with 11 NGOs, enabling the organization to successfully distribute in excess of 400,000 liters of Tang whilst catering to 607,000 plus individuals across Sindh.

Amount: PKR 11 million plus Areas of Activity: Nutrition and Healthcare

ACNielsen Pakistan (Pvt.) Ltd.

1. International Women's Day in March: For Women's Day, we hosted Dr. Farrah Arif

for a talk on #balanceforbetter which was our theme for the day. Post the talk, we were joined by Yoga instructors who conducted meditation and breathing exercises for the sta�. The company also hosted a Food Mela, giving a platform to female home cooks who set up stall and sold delicious meals to the sta�. The funds collected were donated to Smile Again Foundation. Nielsen spend:

$ 700.

2. Nielsen's Global Impact Day: Aziz Jahan Begum Trust (Lahore), a school

for visually impaired children and Dar-ul-Sukun (Karachi), an institution for mentally and physically challenged children were visited. Both Nielsen and employees raised funds to donate physiotherapy equipment, braille machines, wheelchairs, and ceiling fans to the institutions. In Islamabad, Master Ayub's Park School was visited. Nielsen spend: $ 4,600.

3. Earth Day: Nielsen distributed seed packets to all

associates to plant them at their homes. Power-saving exercises were conducted at the o�ce premises by shutting down lights and pasting tags near water and electricity sources to save water and electricity and reduce our environmental footprint. Nielsen spend: $ 100.

4. World Clean-up Day: • Beach cleaning in partnership with the

Last Earthlings • Documentary screening of “Last

Mangroves: Custodian of the Coast” in partnership with The Dawood Foundation - held both in Karachi and Lahore

5. Hunger Action Month: • Donated funds to Rizq (Lahore) and

Saylani Welfare (Karachi), 300 free meals were provided and food supplies for 3 households. Spend: $ 400.

ABC MEMBERS’ CSR ACTIVIT IES

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Optimus Ltd. (Hertz)

• Healthcare

• Dar-ul-Sukun

• Dar-ul-Sukun is a well reputed institute which provides free food and shelter facility not only to the homeless elderly men, women and girls, but also serves the physically and mentally challenged people

• 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

• Donation Amount: Rs. 250,000

• Blood Donation Drive with ‘Indus Hospital’

• Orientation of all employees on health 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

• EducationPublican Alumni Trust

• The Publican Alumni Trust is aimed to mobilize and support the cause of education in Pakistan. This trust is providing financial support to deserving students and creating infrastructure of research-based education

• Donation Amount: Rs. 50,000

• Celebration of ‘Women’s Day’

• To recognize the e�orts and contributions of women in our society and organization, Hertz Pakistan dedicated a whole day to its 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’ activities: Rs. 20,000

ABC MEMBERS’ CSR ACTIVIT IES

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 MEMBERS’ CSR ACTIVIT IES

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Philip Morris (Pakistan) Limited (PMPKL)

Philip Morris (Pakistan) Limited (PMPKL) is an a�liate of Philip Morris International Inc. Our 3 key areas of CSR focus include: Providing Economic Opportunity, Empowering Women and Access to Education. PMPKL works with local NGOs to rehabilitate burn victims, fight against child labor, provide vocational training to women from low-income households, set up medical camps for vulnerable communities and work on social inclusion for women with disabilities. From 2018 to 2019, PMPKL has partnered with local NGOs on the following areas of activities:

1. Women Empowerment

PMPKL partnered with Depilex Smileagain Foundation to rehabilitate and empower victims of domestic violence by integrating them back into society and helping them lead normal and fruitful lives. With PMI’s support, the foundation provided medical/surgical treatment to 56 female victims. Conducted psycho-social support workshops for 80 victims across Pakistan and provided vocational training to 12 victims.

PMPKL partnered with Kashf Foundation to provide vocational skills and entrepreneurship training to females from low-income households between the ages of 15 to 30 years. With PMI’s support, the foundation trained 807 females who are interested in setting up new businesses or expanding already existing ones, and want to augment their skill set through vocational training across Swabi, Mardan, Kotri and Sahiwal.

PMPKL partnered with Society for Special Persons to enhance the socio-economic inclusion of 300 women with disabilities by forming community-based groups, building capacity of stakeholder groups for advocacy of their rights and sensitizing general community on issues faced by these women.

PMPKL is the first company in Pakistan to be certified by the Equal Salary Foundation. The Equal Salary Certification validates that PMPKL pays men and women equally for equivalent work, and the process helps the company to focus on the broader issue of gender equality.

2. Healthcare

PMPKL partnered with Paiman Alumni Trust to provide basic medical care through free camps to more than 6000 individuals; conducted door-to-door visits to 1600 families for awareness on physical and mental health matters and educated 2400 women and children through health hygiene sessions.

3. Education

PMPKL partnered with Idara-e-Taleem-o-Aagahi to organize summer camps in schools to prevent farmers’ children from working on tobacco farms during their summer holidays. The project was conducted in 21 schools in KPK, catering to 1952 children. Under this program, educational activities and Literature Festivals were held to encourage children to read. Further, school upgradation projects have been undertaken in Kotri, Sahiwal and KPK to uplift their infrastructure and install solar panels.

ABC MEMBERS’ CSR ACTIVIT IES

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 MEMBERS’ CSR ACTIVIT IES

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Rafhan Maize Products Co. Ltd.

Company’s CSR Philosophy

It is our aspiration to become the Employer, Supplier, Neighbor, Investment and Company of Choice for our many stakeholders.

CSR Activities

Education

The company has adopted one of the schools of The Citizens Foundation, Karachi at their Faisalabad Campus namely, Khalid Farooq Campus, Chak 242, Dasuha, Faisalabad. The school has an enrollment of 164 students

comprising 77 girls and 87 boys. Our company invested PKR 2.8 million in this area.

Environment/Sustainability

Our company invested PKR 1.6 million in these sectors by arranging awareness sessions, lectures and quiz competition on Earth Day and World Water Day for children of SOS Children’s Village, Faisalabad. To keep our locality’s environment green and healthy, our company conducted clean-up drive for community near our plant premises. The company developed a green strip in front of our factory at Faisalabad in collaboration with Pakistan Horticulture Authority (PHA) to promote our agenda of sustainability and green, clean, and healthy environment for our communities and society.

S&P Global Pakistan (Pvt.) Ltd.

When it comes to Corporate Responsibility, Diversity, and Inclusion, S&P Global plays an 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.

#ChangePays Initiative

This year, S&P Global launched the #ChangePays social media campaign to highlight the financial and business benefits of gender equality in the workplace. This was a global movement and demonstrates S&P Global’s dedication to creating inclusive economies.

In S&P Global Islamabad, Our Women in Technology community and WINS Employee Resource Group arranged multiple events to further this initiative. As part of the #ChangePays movement, S&P Global also sponsored a research initiative for AGAHI: Empathy and Personal

Space, A Human-centered Approach to understanding and assessing Gender Parity in Pakistan. Research Funding - AGAHI PKR 300,000

Women in Technology

Islamabad arranged awareness walks on #ChangePays in order to create awareness on the benefits of a more inclusive workforce.

S&P Global Pakistan's Partnership with the U.S. Pak Women Council

S&P Global Pakistan has been a strong partner of the USPWC over the year. For 2019, S&P Global sits on the Executive Committee for USPWC and has pledged to mentor 20,000 women over the course of next three years. S&P Global was also awarded the Million Women Mentors Global Impact Award for its proactive pledge and plan towards reaching it in Pakistan.

ABC MEMBERS’ CSR ACTIVIT IES

S&P Global Pakistan also held its first-ever career seminar in collaboration with PUAN. The participants included PUAN students returning from the U.S., post completion of their exchange programs and S&P Global employees.

S&P Global Foundation (Corporate Responsibility)

Pakistan is a priority market for S&P Global when it comes to our Corporate Responsibility e�orts. The S&P Global Foundation has announced a grant of $50,000 to support a local non-profit that closely aligns with strategic areas of focus. S&P Global Foundation PKR 7,750,000.00

S&P Global’s Commitment to Volunteerism

Give Back Policy for Employees

S&P Global Pakistan introduced first of its kind ‘Give Back Days’ employee benefit. The benefit is for S&P Global employees to use up to five days per year to volunteer in their communities.

Diversity and Inclusion

WINS Islamabad

One of our very active Employee Resource Groups, Women's Initiative for Networking and 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 IslamabadAnother one of our ERGs, APEX arranged a Clean-up Drive of Trail 5APEX PKR 31,000

Project ‘Attitude Behavior and Change’ - Environment

A project team at S&P Global Islamabad called Attitude, Behavior and Change, launched a ‘Say No to Plastic’ initiative across Islamabad Site. The project team worked on reducing use of plastic and gave away 1550 stainless steel bottles.

Spending:Developing an Inclusive Economy: PKR

S&P Global Foundation 7,750,000.00Research Funding – AGAHI 300,000Total 8,050,000 Environment: Project ABC 722,000WINS 31,000APEX 31,000Total 784,000 Bridging the Global Skill Gap Women in Technology 50,000SIE and SACHET 200,000Total 250,000 Health WINS 3,150 Total of S&P Global CR and DI Spend 9,087,150

ABC MEMBERS’ CSR ACTIVIT IES

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Systems Limited

CSR Initiative (brief of activity) or Diversity Initiatives

Systems Limited aims to make substantial and informed contributions towards CSR and fulfill social responsibility. Systems Limited aims to provide quality sponsorship to the underprivileged and create awareness regarding Health, Research and Education.

Amount spent by the company on CSR (in PKR)

Systems Limited contributed a total amount of Rs. 3,659,750/- from July 2018 till June 2019.

Areas of activity

Systems Limited funded projects mainly in Healthcare and Education.

Healthcare

Jinnah Hospital (Patient Welfare Association); Aman Foundation (Support for health initiative); Arthritis Care Foundation (Support for health initiative); Child Care Foundation (Support for

health initiative); Shaukat Khanum Memorial Hospital (Financing treatment of underprivileged cancer patients); Sundas Foundation (Support for health initiative).

Education

1. The Citizens Foundation

a. Sponsoring Class 1 Students at TCF Habib Jute Campus Primary (Afternoon) in Khushab, Punjab for an entire year, giving 24 deserving children access to a safe, creative and colorful learning space.

Others

1. Lahore Gymkhana

Sponsoring a charity tennis match.

2. NOWPDP

Providing laptops and chargers for people with disabilities and create awareness.

Systems Limited intends to create a bigger impact on CSR in 2020, and take part in contributing to the society.

ABC MEMBERS’ CSR ACTIVIT IES

Teradata Pakistan (Pvt.) Ltd.

Teradata Cares is a philanthropy body under the patronage of Teradata, working for corporate social responsibility.

• Teradata Cares encourages and supports employee engagement in building strong and vibrant communities, improving quality of life, and making a positive di�erence where we live and work.

• Education Program • Healthcare Program • Employment & Financial Support Program • Natural Disaster Relief Projects

• Education Program - Transforming Lives

> Helped more than 650 students at di�erent levels

> Primary/Middle/Matriculation > Intermediate/Diploma Programs > University Programs (MBBS, Engineering) > Around $0.1M spent on Education Programs

• Healthcare Program

> Helped over 500 patients > Blood Donation Camps > Free Medicines and Treatment > Free Consultation for Patients > Around $50k spent on Healthcare

• 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

• Care for Education (Celebrated Annually) > Teradata helped educate more than 3000

individuals: in collaboration with Developments in Literacy (DIL)

• Care for Homeless (Celebrated Annually) > Teradata provided shelter to more than

1000 individuals: in collaboration with Edhi Foundation

• Care for Health (Celebrated Annually) > Teradata helped treat more than 1000

individuals: in collaboration with Shaukat Khanum Memorial Cancer Hospital

• Care for Environment (Celebrated Annually) > Environment preservation and awareness:

in collaboration with WWF

• Tree Plantation Day (Celebrated Annually) > Planted 3000 trees: in collaboration with

WWF

• Blood Donation Day (Celebrated Annually) > Donated 800 bottles: in collaboration with

Red Crescent Pakistan

• Pink Day (Celebrated Annually) > 50 female associates attended: in

collaboration with Shaukat Khanum Memorial Cancer Hospital

14000 individuals positively impacted: Teradata Corporation funded $30k

ABC MEMBERS’ CSR ACTIVIT IES

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The Coca-Cola Export Corporation

The Coca-Cola company is a total beverage company operating in Pakistan since the last 66 years.

The company’s sustainability campaign was launched in 2010 with four key pillars including: Women Empowerment; Pakistan without waste; Water Replenishment; and Well-being.

In the last 9 years, Coca-Cola has spent a total of approximately PKR 1.3 billion (USD 8.5 million) on CSR. One of the most notable achievements has been on women empowerment initiatives, consistent with Coca-Cola’s global benchmark of helping 5 million women by the year 2020. Coca-Cola in Pakistan partnered with Kashf Foundation, an NGO working solely for this purpose, resulting in more than 8500 women being facilitated and economically enabled across Pakistan. They were not only financially sponsored but also empowered with training, short courses, peer networks and mentoring to 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

products and continues to make its mark. The most note-worthy is all PET bottles in Pakistan are 100% recyclable and e�orts are constantly being made to ensure that collection and recycling rate is the same as well. Coca-Cola partnered with WWF Pakistan and other members of the industry to form an alliance to work towards this goal together. Individually, Coca-Cola managed to collect 228,500 plastic bottles in 2019 alone. Moreover, in terms of environment, keeping in sight Pakistan’s water shortage, our goal of replenishing 1.9 billion liters of water by 2020 was not only met but exceeded expectations with 2.7 billion liters of water replenished as of 2018. This made Coca-Cola in Pakistan water positive, the first country in MENA (Middle East and North Africa) region.

Aligned with the national polio eradication campaign in Pakistan, being one of the last few countries still infested with this disease, the company installed 14+ water filtration plants in collaboration with Rotary Foundation to eliminate polio.

ABC MEMBERS’ CSR ACTIVIT IES

Uber Technology Systems Pakistan (Pvt.) Ltd.

Shaukat Khanum Memorial Cancer Hospital is a non-profit organization, catering to 150,000 patients annually. 75% of the patients are treated free of cost. A total of 27 team members volunteered to spend time in the children's ward, sharing smiles and gifts.

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

information. The recommendations were delivered to the management panel, allowing for rich discussions and helping the hospital implement the plans.

Uber team visited the Jinnah Postgraduate Medical Center, the largest public hospital in Karachi, to experience the amazing development work done by Patients’ Aid Foundation and brainstorm initiatives 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.

ABC MEMBERS’ CSR ACTIVIT IES

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Communications (Pvt.) Limited

22-C, Khayaban-e-Shahbaz, 4th Floor, Phase VI, D.H.A., Karachi - 75600, Pakistan.T: (92-21) 35171761-4 W: www.prestige.com.pk E: info@prestige.com.pk

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.

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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.