Newsletter for July/August 2018

This newsletter is sent to approximately 40,000 contacts in Germany and Pakistan.

Consul's Corner

Dear friends and partners,

I started my assignment in Karachi as the Consul General of the Federal Republic of Germany few days ago. I felt mostwelcome here from the very first moment. This is fundamental for achieving together. Vibrant Karachi is the key hub of trade and commerce for Pakistan. This busy and fascinating place will be a focal point ofmy trade and economics related activities during my tenure. GPCCI, in our eyes, is and can be an ever better platform for the promotion of bilateral trade between Germany andPakistan. We will jointly work to live up to this moving target in this modern world of changes. Equally, GPCCI may serve asthe best facilitator for the business community in Germany and Pakistan alike. Also, the expertise of the newly appointedGerman CIM expert will add beneficial perspectives to GPCCI. Pakistan offers a vast variety of opportunities. With the newly elected Governments at Federal and Province levels it can rollup the sleeves to build an ever better future.

I look forward to a close, mutually beneficial and fruitful co-operation. .

Sincerely,

Eugen Wollfarth General Consul of Germany in Karachi

Secretary General's Corner

Dear Members and Friends of GPCCI GPCPCI welcomes the new Consul General Mr. Eugen Wollfarth in Karachi and looks forward to working with him toenhance the growth of GPCCI and bilateral relations between Germany and Pakistan. GPCCI is also pleased to welcome the CIM representative Mr. Franz Nienhaus who has recently joined us on August 1,2018. He has joined the GPCCI team as CIM Integrated Expert and Advisor to the Board of Directors. He is in charge ofdeveloping and implementing a strategic plan on capacity building in GPCCI, enhancement of B2B matchmaking as well asimproving individual business consultancies on market entry in Pakistan and Germany. Thus, GPCCI will contribute toimprove and consolidate sustainable bilateral trade between the two countries. We are gearing up for the BME symposium schedule for 14th to 16th November 2018. Our past participation in BME wasquite fruitful in bringing business to Pakistan and we were pleased to note that the experience of a few German companiesthat networked with our participants completely changed their perception about Pakistan to the extent that one of theleading German companies has now expanded their business operations in the country. We are positive BME will provide agood opportunity for increasing business opportunities and forging new relationships for our members this year as well. GPCCI is also pleased to partner with 3rd International Summit on Wind Energy in Pakistan on October 11, 2018. Please dohave a look at the special offer for our members featured in this newsletter. Dear readers, it’s that time of the year when we are compiling our yearly publication ‘Iqbal Ufer’. We are thankful to a fewmembers who have already sent us their contributions for the issue. Those interested in sharing newsworthy developmentsabout their organization are kindly requested to send their entries latest by September 15, 2018 for us to be able to publishthem in the magazine. As you are aware, sponsorship in Iqbal Ufer magazine through your ads is crucial to this issue, therefore a separate emailto our members regarding this will be distributed shortly, and we hope that we will receive the support as we have in thepast for this publication that distributed to readers worldwide. Best Regards,Danesh Dinshaw

Note

For further queries regarding Iqbal Ufer, please email at hina.ilyas@gpcci.com.pk

Networking and a Live Briefing Plus Q & A session, with BME Berlin for the 53rd BME Symposium2018

GPCCI organised a Networking and a Live briefing plus Q & A session, with BME Berlin for the 53rd BME Symposium 2018happening in Berlin, Germany in November 2018. The objective of this Symposium is that Pakistani companies conductingbusiness in the multiple sectors, can display their organisation & products, create an awareness and introduce themselvesto German & European companies attending. To facilitate companies to understand and explore this event’s importance for their growth and betterment, GPCCI hosted abriefing and live question and answer session with BME officials in Berlin, on 5th July, 2018 at 4:30 p.m. at Avari Towers,Karachi. The BME team educated the participants about the industry wide participation of this event. This discussion wasinstrumental in having their questions answered regarding the exhibition and in giving them an overview of what they couldexpect by participating in this event.

German Ambassador to Pakistan H.E Martin Kobler Winning Hearts of Pakistanis

German Ambassador to Pakistan, Martin Kobler is leaving no stone unturned while exploring the streets and culture ofPakistan. From paying a visit to a barber set on the streets to getting acquainted with delicious falooda he is experiencing itall and we are here for it!

Kobler has been posting about his adventures through his Twitter account. He has posted pictures of different starattractions of the country. From Islamabad’s most famous Monal restaurant to Karachi Railways station. He is checking offall the places to be from his ‘to go list’ with style! Recently the German Ambassador took to social media to tell his followersabout an acquaintance he made with a roadside barber and getting a haircut from him too!

Here is a sneak preview of his visit to Karachi and interaction with the locals.

"Superior Judiciary in Pakistan is very conscious of its role to make the country more attractivedestination for foreign direct Investment (FDI)"

As quoted in The Business Recorder dated 29th May, 2018, Chief Justice Mian Nisar said: "The most important element for putting foreign investors at ease in Pakistan is to ensure a strict adherence to the 'rule oflaw'. He said if foreign investors in Pakistan, not only from China but elsewhere in the world, can be assured that anydisputes arising out of trade and commercial contracts will be dealt within a quick and just manner, without endlessprocedural hurdles and frustration delays then it will make Pakistan a more attractive destination for FDI".

Preventing Bribery and Corruption is an International Priority

Bribery has a long and sometimes colorful history. Even the Romans, with their various laws and campaigns againstcorruption, had extensive debates over what qualified as a bribe and what was a “gift.” In both politics and business, briberyhas played a pivotal role in transfers of power, wealth and influence. It has also caused significant damage to countries, economies and individuals throughout the world. While some stillchoose to view it as part of “the cost of doing business,” studies by researchers like Harvard Business School's Paul M.Healy and George Serafeim (“Firm Competitiveness and Detection of Bribery,” 2013”) demonstrate the true harm caused bysuch corruption. What Healy and Serafeim found, for example, is that bribery hurts company morale, which can directlyimpact company performance – even if no outside organisation found out about it. When outside organisations do find out about it, the ramifications for a company and the individuals involved are evenworse. Over the past decade, there has been a dramatic rise in the prosecution of organisations, both in the public andprivate sectors, accused in bribery and corruption schemes. Bribery has become a major focal point for governments and

global watchdogs intent on stamping out its incidence and effects. To do this, they’ve passed laws and regulations callingfor heavy fines and penalties for companies engaging in bribery. A new landscape of anti-bribery regulationLaws such as the Foreign Corrupt Practices Act (FCPA), UK Bribery Act, Malaysian Anti-Corruption Commission(Amendment) Act 2018, the Brazilian Clean Company Act and others are part of this new regulatory landscape, and theyhave “teeth” in terms of the ability to level significant fines and penalties against offenders. Large organisations are under the microscope, but so are third-party partners in their supply chains: importers, exportersand other contractors, especially those doing business across borders. The new laws intend to eliminate corruption fromsupply chains and third-party working relationships of foreign companies. Companies that are not complying with these lawsare being panelized and prosecuted heavily. And organisations are expected to vet their third-party partners with properdue diligence – ignorance is no longer an excuse, in the eyes of regulators today. High-profile prosecutionsOne of the most recent high-profile examples of such prosecutions is that of UK pharmaceuticals giant GlaxoSmithKline,which was punished with $490m (£297m) in fines after being found guilty of bribery. In China, the company engaged inwidespread corruption including bribes of regulators, doctors, hospital workers and seemingly anyone else who could help“make problems go away.” (BBC, 2014). Another massive case concerns the largest computer equipment manufacturer and supplier company Hewlett-Packard(HP), found guilty for corruption involving contracts in Poland, Russia and Mexico. The company was forced to pay $108mto settle the scandal, and to make matters worse for them, they are barred from selling their products in Canada for 10years. HP’s case demonstrates that eventually, non-compliant companies face a significant loss of business and reputationin the global marketplace. (FCPA Blog, 2014, and Globe and Mail, 2014). Training and compliance provide solutionsThere is a path forward for any organisation looking to avoid the damaging effects of corruption that have impactedGlaxoSmithKline, HP and countless others. The International Organization for Standardization (ISO) issued the ISO 37001Anti-Bribery Management System standard in 2016 to help organisations worldwide increase and measure their effortsagainst bribery and corruption. The standard specifies a series of measures required by the organisation to prevent, detectand address bribery, and provides guidance relative to that implementation. Providing ISO 37001:2016 training and certification is a cornerstone of CRI Certification, an independent ConformityAssessment Body of CRI Group. CRI Group is a global provider of integrity due diligence, employment backgroundscreening, third-party risk management and compliance and other professional investigative research services. In 2016,CRI Group launched the Anti-Bribery and Anti-Corruption (ABAC®) Centre of Excellence to offer certification and experttraining in programs including Introductory Course and Lead Auditor and Internal Auditor trainings for ISO 37001. At ABAC® Centre of Excellence, CRI Group’s auditors and analysts develop measures that integrate with existingmanagement processes and controls, including:

1. Adopting an anti-bribery policy2. Establishing buy-in and leadership from management3. Training personnel in charge of overseeing compliance4. Communicating the policy and program to all personnel and business associates5. Providing bribery and corruption risk assessments6. Conducting due diligence on projects, business associates and other third-party affiliations7. Implementing financial and commercial controls8. Developing reporting and investigation procedures

Anti-bribery efforts on a world stage by CRI GroupLeading anti-bribery professionals will address corruption issues head-on when they gather in Kuala Lumpur, Malaysia, inSeptember at CRI Group’s Anti-Bribery Anti-Corruption Summit 2018. This one-day event will focus on due diligence,internal controls, compliance issues, and the latest resources and tools to help investigators. Bribery is a key issue in both local markets and global business activities. The desire to expand business operations andmaximize commercial profits not only requires the identification and management of operational risks but also identificationand mitigation of bribery risks. As the world's governing bodies gravitate to more stringent standards and efforts to prevent corruption, bribery and otherunethical business practices, all organisations should be setting clear goals to meet and exceed those standards. Theirsuccess will depend on it. [By GPCCI Member CRI Group]

Welcoming New GPCCI Members

CRI Group- Third Party Risk Management and compliance and other professional investigative research services. Based in London, UnitedKingdom, CRI Group is a global firm with experts and resources located in key regional marketplaces across the Asia Pacific, South Asia, theMiddle East, North Africa, Europe, North and South America.

J&C Glass Co Pvt Ltd- Jillani Glass is an aspiring Glass Processing company with professionals having years of experience in glassproduct industry. The company has at its disposal a competent and dedicated team of CEO, professionals, managers and associates whoare well qualified and experienced to professionally execute any glass processing products or aluminium fabrication works

Jamil & Jamil Barristers at Law- One of the Pakistani's leading and diversified law firms with more than 30 years of successful practicein litigation, transaction advice, policy advice, and legal consultancy.

MMG Engineering- A global design engineering consulting firm. Outstanding solutions, innovations and value characterize our work.

3rd International Summit on Wind Energy in Pakistan-Special Discount for GPCCI Members

The team of Pakistan’s premier magazine – Energy Update has scheduled the 3rd International Summit on Wind Energy inPakistan, Theme "Explore the Power of Wind : Scalable, Affordable, Sustainable", on October 11, 2018 at Karachi MarriottHotel with the support of Sindh Energy Department (Govt of Sindh) and Alternative Energy Development Board (AEDB). Objectives of Conference:

1. Capex cost of renewables has dropped potentially, hence due space and attention should be given to renewables“fuel free” projects development.

2. RE policy consistent and sustainable implementation has to be adopted to ensure the investors’ confidence anddevelopmental of sector at fast track.

3. The bidding decision has to be taken up to CCI level and set aside4. Existing projects, which already have the upfront tariff, should be allowed for development as per existing RE policy

and grid evacuation to be allowed which will improve the plant factor to 45-50%

As part of their collaboration with GPCCI, the members will receive a special 20% discount on registration and 15% off onexhibitor/sponsorship. If you want further details about this Summit and would like to register, please send an email at hina.ilyas@gpcci.com.pkwith the subject "Wind Energy Summit"

Report Disclaimer This document has been prepared in good faith on the basis of information available at the date of publication without any independent verification. GPCCI does not guarantee orwarrant the accuracy, reliability, completeness or currency of the information in this report/publication nor its usefulness in achieving any purpose. Readers are responsible forassessing the relevance and accuracy of the content of this publication. GPCCI will not be liable for any loss, damage, cost or expense incurred or arising by reason of any personusing or relying on information in this publication. Products/Companies may be identified by proprietary or trade names to help readers identify particular types of

Products/Companies but this is not, and is not intended to be, an endorsement or recommendation of any product or manufacturer referred to. Other Products/Companies mayperform as well or better than those specifically referred to. Any text/content of the magazine is fully cited, in case there is a reference which is not supported with citation orpermission, GPCCI does not take the responsibility for any legal consequence. The contents of the magazine are subject to copyright.