1. Pakistan Cables – Leading the Way Towards Urban Forests

While constructing a house, office, or even moving into a new place, most people focus their attention on the building’s exterior compared to the quality of key electrical components. Most homeowners or residents often prefer to utilize cheap materials for house wiring and electrical cables as a means for cost-cutting. Electrification plays an important role in the construction process, and it mustn’t be overlooked or ignored. It is always recommended to utilize top quality brands of electrical wires and cables instead of opting for cheaper options. However, selecting the right type of electrical wires and cables in Pakistan for your construction can still prove to be a challenge these days due to various factors such as budgetary constraints. If you compromise on the quality of electrical wires and cables in Pakistan, then you may suffer an irreversible loss that can easily impact the safety of the residents of the building. The use of only pure copper electrical wires and cables in Pakistan is urged by the experts for residential and commercial building projects. Wires produced from 99.99% copper ensures safety and reliability of electrical system and at the same time reduces line losses. It also prevents unnecessary variations in power supply which safeguards the appliances used at home. For residential house wiring, it is advisable to either buy cables online from credible manufacturers or by visiting nearby authorized dealers. Product certifications and adherence to local and international standards should be a key consideration while selecting the cable brand. It is equally important to utilize a product that suits your requirements and is also thoroughly tested for quality assurance. Given below are various kinds of tests that are conducted on cables:Did you know that cities occupy just two percent of the world’s land? According to the United Nations, cities account for over 60 percent of global energy consumption, 70 percent of greenhouse gas emissions and 70 percent of global waste. In 1990, there were 10 mega cities with more than 10 million inhabitants. Today, over 50 percent of the global population lives in cities and by 2050 that number will rise to 70 percent. Imagine the impact of rapid growth in urban centers on the world’s natural resources and our environment today and tomorrow ...

I’m proud to share with you that Pakistan Cables has taken the concept of an urban forest one step further and has successfully developed an industrial forest, the first of its kind in Pakistan to the best of our knowledge. The Pakistan Cables Urban Forest is spread across 2.5 acres at our new under construction facility in Nooriabad and is home to approximately 40,000 trees.

Based on the proven method of urban forestation from Japan and developed by Mr. Akira Miyawaki, it has been implemented by renowned urban forest expert, Mr. Shahzad Qureshi in Pakistan.

Why harness the power of urban trees (Urban Forest)?

The environmental, economic and sociological benefits of trees and various other plants are well understood. Concisely, some key benefits of trees are:
1. Improvement of air quality.
2. Trees in urban and industrial areas can cool the air, reducing the need for air conditioning by 30 percent.
3. An urban forest nurtures biodiversity as it creates a natural eco-system, attracting birds, butterflies and other animals.
4. Forests and urban forestry also play a crucial part in the achievement of the UN Sustainable Development Goals (SDGs) or Global Goals. These are a collection of 17 interlinked global goals designed to be a roadmap to achieve a better and more sustainable future for all.
5. Studies also indicate that trees boost happiness hence they’re fantastic for mental health and well-being.
6. Forests shield us against future pandemics. This is a need of the hour as we learn to live in the era of one such pandemic, COVID-19. According to the United Nations, at present, 60 per cent of all infectious diseases and 75 per cent of all emerging infectious diseases are zoonotic. These diseases originate from the transfer of pathogens from animals to humans, and they usually occur when natural landscapes, such are forests, are being cleared.

Our journey started a little over a year ago, when we embarked upon planting of trees at the Pakistan Cables new factory site, construction of which is underway at Nooriabad. Fifty-nine indigenous species have been planted, some of which include: amla, anar, amaltas, bharma, injeer, mango, mulberry, neem, pepil, such chane, kikar, khobani and so on. It is designed as a self-sustaining eco-system.

(From L to R): Kamal A. Chinoy (Executive Director), Mustapha A. Chinoy (Chairman) and Fahd K. Chinoy (CEO), March 2020 Prime Minister Imran Khan’s 10 Billion Tree Tsunami project, to tackle climate change, is appreciable as it also promotes the green vision for Pakistan. This makes the Pakistan Cables initiative a platform that supports the national and international vision of a greener planet in every way. It also sets the tone for the industrial sector to play its role. The transformation of the arid desert like environment in Nooriabad into a thriving and flourishing forest should motivate other industrial players to come forth and do their part. In the coming days, we will work closely across communities to inspire action among other businesses to step forward and pledge to environmental conservation. We believe that together we collaborate and safeguard the interests and well-being of our planet. Well captured by Neil Young’s lyrics, “Respect Mother Earth and her healing ways. Or trade away, our children's days.”

2. Are We Doing Enough To Revive Consumer Confidence?

A key concern for policy makers and businesses alike is COVID-19’s impact on the economy with regular lockdowns and other measures implemented to curtail the pandemic. The Economic Survey of Pakistan 2020 reports the provisional GDP growth rate for FY2020 estimated at negative 0.38 percent. The negative performance of both Industry (-2.64%) and Services (-0.59%) is expected to overshadow the growth in the agriculture sector (2.67%). As a leading player in the construction sector, it is worrisome that the provisional growth in the industrial sector was estimated at -2.64 percent mainly due to decline of 7.78 percent in large-scale manufacturing sector. Copper prices sank by more than a quarter from January to mid-March, hitting a low of USD 4,600 per ton when covid-19 spread across China, which accounts for about half of global copper consumption. Recently, efforts to stimulate China’s economy may be paying off. In June, demand for copper in China rose by 5.5% on the year, its biggest jump in over two years. Copper has surged further in July, climbing to around USD 6,500 per ton. There is a view that rising demand backed by curtailed supply from South America due to COVID related disruptions is driving up the price of copper. While there are several fundamental variables that drive copper prices, industrial demand is certainly a key element. Is the recent rise in copper predictive of an economic bounce back? The pandemic has given a boost to certain industries globally with food items, medical supplies and e-commerce categories being the leading beneficiaries. On the other hand, industries related to travel have suffered considerably - United Airlines described the second quarter as the most financially difficult in its 94-year history. Even prior to the impact of COVID, business activity in Pakistan remained slow during the first quarter of FY 2020 amid rapid depreciation of the Rupee, climbing interest rates and debates over energy crisis as the government grappled to come to terms with an IMF driven economic road map. Covid-19 only fueled the fire that erupted months ago. In January 2020, IPSOS Survey indicated that 79 per cent of the respondents were pessimistic in their outlook for local and national economy. Well before the outbreak, consumers across rural and urban Pakistan grew less comfortable in purchasing basic household items or making major purchases such as a car or home. Pakistan has a tough job because our output has fallen more since March, when lockdowns were imposed. The lifting of lockdowns was expected to boost economic activity but it varies from country to country. For instance, by the end of June, economic life in Denmark and Norway had pretty much returned to normal. Norway took just ten days to halve the intensity of its lockdown from its peak level. Pakistan, on the other hand, is taking longer to fight the outbreak effectively and therefore economic boom seems further. However, there are early signs of recovery and from an optimistic perspective, one would like to hope that the worst is behind us particularly as the rate of positive COVID and deaths in Pakistan have started to show signs of tapering off. Besides, business activity and consumers’ confidence, a number of factors influence how fast an economy can bounce back: households’ finances is one. Poor saving rates on the back of double digit inflation and growing unemployment in Pakistan experienced before the pandemic had aggravated and pushed more people below the poverty line and widened the rich-poor divide further. Government support has surfaced in the form of the Rs 1.2 trillion-recovery package injected to stimulate the economy backed with relief on the policy rate and several other steps taken by the State Bank of Pakistan to support the economy. This is an encouraging approach but it is yet to be seen whether it will help offset the severe impact of the pandemic. Ambitious development plans promising much needed economic activity such as “Naya Pakistan Housing Scheme” and “Kamyab Jawan” have so far been mostly on paper and the building materials sector is eagerly awaiting the momentum to pick up and for these programs to become a reality. In addition to this, the construction package announced in the budget allocates Rs. 30 billion to the real estate sector. There is a great amount of skepticism around these plans, as consumer confidence is already depressed and the political nature of the projects does not necessarily help overcome this. Having said that, preliminary numbers for cement dispatches (a leading indicator for the building materials sector) have been strong for the month of July. All this is nothing without consumer confidence. If consumers are fearful, then lifting lockdowns makes little difference to economic outcomes. Drastic measures for boosting spending, creating investor friendly opportunities and supporting local manufacturers are just some areas that should be explored by policymakers to help revive the otherwise fragile consumer confidence can be. The government and businesses need to collaborate effectively to stirring Pakistan’s economic activity and build consumer confidence otherwise, the recession may prevail longer damaging economic, social and political stability.

3. An Equal World is an Enabled World

‘Inequalities’ based on income, gender, age, disability, sexual-orientation, race, class, ethnicity and religion continue to persist across the world. The George Floyd protests sparked by the killing of George Floyd, a 46-year-old black man, after a white police officer knelt on Floyd's neck for almost nine minutes during an arrest, quickly became a global movement. #blacklivesmatter, today is an international human rights movement. It is proof that inequality exists at large and must not ignored. ‘Equality’ ensures everyone has an equal opportunity, and is not treated differently or discriminated against because of their characteristics or gender. For example, women still earn less than men do, people from minority ethnic groups or the differently-abled, still do less well in terms of education and securing jobs than people from other groups. The United Nation’s Sustainable Development Goals (SDGs) were put in place to transform the world by 2030. Goal 5 of the SDGs is ‘Gender Equality’. This year, like most years in recent times, everyone marked Women’s Day in March. Even the worldwide COVID-19 scare did not damper the spirits of activists who gathered at the UN office in New York to show support for signing of the Political Declaration by UN’s member states agreeing to fully implement the Beijing Declaration on gender equality, addressing gaps that hold women back. There was similar enthusiasm for the "Aurat March" all across Pakistan. Ironically, this year’s Women's Day theme focused on “equality”. Workplace gender equality is attained when employees are able to achieve same benefits, rewards, opportunities regardless of their gender.

Women account for half of the world’s working age population. So, it makes economic sense to tap talent readily available in the market. Secondly, the role of women in society has been evolving with time as more women have opted for higher degrees, and finding ways to balance work with family commitments. There is a plethora of information available that confirms that greater gender equality and diversity at the workplace is associated with:
~Improved productivity and growth.
~Enhanced organizational and financial performance.
~Positive image of the organization – seen as a fair employer.
Despite this, gender inequality and discrimination persists in societies and this is reflected in workplaces. According to the UNDP, women comprise over half of Pakistan’s population, yet only 22.7 percent are part of the labour force. Even those who are part of the labour force are largely in the informal sector, receiving low pay with few legal protections. Pakistan Cables’ journey into Gender Equality is recent too. However, in the past five years we have recorded double-digit growth in terms of hiring women across different functions within the company. SECP requires at least one Director on the Board of public listed companies; whereas Pakistan Cables appointed its first female Director in 2013, well ahead of it being declared a mandatory requirement by the SECP. In fact, on more than one occasion our Board has comprised of two female Directors because we fully realize that diversity adds considerable value at the Board and organisational level and are working hard towards making further strides in improving our gender balance. Companies that embrace gender diversity in the workplace must make internal adjustments in order to make the environment conducive for females. Some organizational adjustments that we have embarked upon in order to make Pakistan Cables’ working environment female friendly include:
- Awareness sessions to assist in sensitization of the existing team.
- Clear policies that include a gender perspective and address issues such as harassment.
- Appropriate support facilities, where needed.
- Engagement activities to promote team work and understand different work styles.
- Providing equal opportunities for learning and growth.
Hiring females across different career levels We regularly engage with our female team members for their feedback and look to address areas identified on an ongoing basis. Difference between Diversity & Equality So while ‘equality’ calls for equal opportunities for all, ‘diversity’ is about taking account of the differences between people and groups of people, and placing a positive value on those differences. Although much of the focus in Diversity & Inclusion has so far been on gender and race, there is much to be gained in supporting other minority groups such as the differently abled. According to a report issued jointly by the WHO and the World Bank, more than a billion people, or 15% of the global population, are estimated to live with some form of disability. In an effort to provide equal learning and development opportunities for the differently abled children, Pakistan Cables, as part of its CSR program marked the inauguration of NOWPDP’s The Inclusion Academy in Karachi. The Inclusion Academy is the first of its kind school-project that aims to target differently-abled children, that hail from the under privileged segment of the society. Prior to this, Pakistan Cables supported a training centre for the differently abled set up by the hard working team at the NOWPDP. Our motivation being to empower a marginalized segment of society.

Be Inclusive Personally, I think only one’s abilities, talent and determination, not their gender, race, ethnicity, etc. play a key role in creating value. That is why both men and women, people of various ethnicities and abilities, should share an equal part of the value chain. By adopting more gender-neutral, pro-diversity and inclusive practices in our businesses, we send a strong message to society that no one should be left behind. As responsible corporate citizens, we should be looking to develop our workforce while having a positive influence on society with our actions.

4. COVID-19 – THE LESSONS SO FAR

About seven weeks have passed since we left our offices to work from home. During this time the government gave exemptions to certain essential and export oriented industries to operate and only as of this week, we are starting to see a general softening of the lockdown across the country. Yet, what lies ahead promises even greater uncertainty. The truth is that no one knows what the new normal will be.

A greater effort is required on our part to practice caution and avoid rushing to recreate the pre-COVID era, which is history now. All future business plans, such as sales forecasts, planned capital expenditures, BMR, hiring, new business initiatives etc. will include the pandemic as a new socioeconomic reality and these will remain fluid until we have a better grip of what the post-COVID world looks like. As the leading wire and cable manufacturers in Pakistan, we are aware of this and are re-formulating our approach to factor in COVID and its impact.

We are now mid-way through the holy month of Ramzan, which amongst other things is a month of introspection. Therefore, I felt it may be worth sharing some business related and personal lessons I have learned from the pandemic until now:

COVID-19 BUSINESS LEARNINGS

1. Nimble organizations that are willing to adapt will flourish. GE, GM, IBM, Disney, Microsoft and Apple were all founded during crises. Other great organizations that have either anticipated or adapted quickly to change have shown tremendous success. At times like this, it is imperative that change is proactive and well communicated internally. The usual pace of change just won’t do and so long as the right direction is identified, companies that pivot around new realities will thrive.

2. Communicate, Communicate, Communicate! Clear and regular lines of communication within the organization and across major stakeholders must be reinforced and the frequency of communication increased. This is a time of great uncertainty and as described above, rapid organizational change. If employees and stakeholders are not kept abreast through communication with the changes underway, it will result in confusion and a pull in different directions. As a CEO, I find myself tightly connected with my team, as we adapt to new ways of communicating effectively virtually. Similarly, we send out regular updates internally and all department heads are accessible and closely connected with their respective areas.

3. Avoid going in to freeze mode. It can be detrimental for employee morale and will most certainly affect productivity in a crisis. Instead, identify your growth engines, keep costs tight and be frugal. Learn to leverage from resources inside and outside the company to find options of growth.

4. Reimagine workplaces. As an ISO 45001 company, we have long adhered to best practices in the areas of Health, Safety and Environment. In fact, we were amongst the first few companies in Pakistan to adopt a work from home protocol well before the lockdown and had instituted social distancing measures and screening systems ahead of the release of official government SOPs. This is because the safety of our people is of paramount importance to Pakistan Cables. COVID-19 taught us how critically implementing simpler preventive measures leads to influencing positive behaviors among employees. Remote working helped employees stay focused without constantly worrying about being exposed to potential health risks. Besides following the mandatory guidelines issued by the Government of Sindh, our Crisis Management Team implemented robust safety measures that are monitored on a daily basis.

5. Equipping businesses with the right technology infrastructure is not optional anymore. The pandemic has proved that technology enabled communication has become the cornerstone of business interaction. Virtual meetings, remote trainings, selling online, work from home - technology has enabled businesses to continue to remain functional during the crisis. Although this was amongst many businesses top priorities in the pre-COVID era, identifying the right technologies and adapting to them as we move forward has become even more crucial now

COVID-19 PERSONAL LEARNINGS

1. Staying safe and healthy is a social contract with your own self. Let’s not take health and safety for granted ever again. Physical and mental health supersedes everything else. Today we are physically distant but remain socially connected. Being confined to our homes, has resulted in allowing ourselves some time to meditate, look inward, re-root and reprioritize as we strengthen ourselves to live with uncertainty calmly.

2. Celebrate the simpler joys of life MORE! Forced lockdowns led us to spend more time with our families. For someone like me who leads an extremely fast paced life, it took a while to adjust but very soon I was picking up old hobbies, reading books again, connecting with old friends, taking my dogs for a walk and doing things I hadn’t done in years. The quality time I have spent with my family has been a breath of fresh air.

3. Less is more. The quality of our interactions has improved. The daily chores whether around the house or work related have eased in to our schedules without being rushed. With less distractions, our ability to focus sharpens as we learn to work with the ‘one day at a time’ policy.

4. Have faith. Once you set a plan in motion, you have to trust the process to run its course. There will always be factors beyond your control. Our job is to ensure that we do our best every day and have firm faith in the greater plan which God has in place for us.

Like all of us, I too, pray that the world comes out of the pandemic more mindful and considerate, grateful and committed to deliver on goals focused on the betterment of people and our planet.

While we work through these challenging times, we must set a vision that allows us to tell future generations about how the pandemic was countered and how mankind was able to take steps for the better. Let us take a moment to reflect on the kind of change we want to bring for a safer, peaceful and prosperous world altogether by surviving this turbulence!

May you and your loved ones have a safe, healthy and a blessed Ramzan – Ameen.

5. Can corporate ethics become a competitive advantage?

Consider these situations that one often comes across working in a developing market like Pakistan, where there is a history of corruption and in various quarters a general disregard for ethics:

• Cash coupons offered as incentives to electricians or painters inside product packs. Manufacturers conceal the information by not printing it on the packaging - providing instant cash incentives to electricians, painters or other influencers who then recommend their products to homeowners. Should you incentivize them without declaring it to the general-public?
• A potential customer demanding a commission in kind or a holiday trip for the family for specifying or purchasing your Company’s product for the multi-million rupee project deal that would contribute significantly to your quarterly sales targets. What would you do?
• Law enforcement agencies demanding grease payments for transactional costs to uphold and enforce the law. Should you comply?
• Harassment by institutions in the form of notices, demands and so on, only to be offered the option for them to be waived if you are willing to give a hand out. What stance would you take?

Practically all companies face and cope with similar situations – despite having a stack of well documented code of ethics, policies, and guidelines.

As an organization, Pakistan Cables has always taken a very firm stance on ethics. Compromising on ethics would bar the organization from developing credibility as a good corporate citizen and most importantly, it would impact our reputation.

Trust is amongst the most valuable assets an organization can possess. When organizations compromise on fundamental moral values, the brand’s value declines – respect and credibility deteriorates over time. It’s not a level playing field either as one has to compete with others who aren’t playing by the rules.

The concept of ethics in the business world has many implications, mostly focused based on human behavior in terms of what is acceptable and unacceptable to others. All religions in the world unanimously stress on adhering to a code of ethics and choosing right over wrong. Business ethics are quite similar - they set out principles and moral values that serve as a compass in organizations. And as contemporary organizations become more and more goal focused, sometimes winning becomes everything. That’s when ethics in business are compromised. And if such behaviors become a permanent practice the lines between right vs. wrong get blurred and organizations get trapped into a vicious circle of malpractices. In the process, they corrupt an entire food chain starting from their employees, suppliers, customers and communities. Anyone with moral values pays the price by either walking out of an organization or not doing business with them.

I have always believed like any sport, learning and respecting the rules of a game are extremely important. A true winner is one who plays by the rules – transparently, upholding their values and putting in the hard work.

Pakistan Cables is the first and only wire and cable manufacturer company in Pakistan which is listed on the Pakistan Stock Exchange. The company was established on the ethos of ethics and transparency, which was ingrained from the very beginning based on the fundamentals adhered to by the founders. Our philosophy has always been driven by ethics as the primary cornerstone, with a firm belief that such an approach is a pillar on which a sustainable company can be built upon.

The fact that Pakistan Cables is considered the most trusted company in the category in Pakistan speaks volumes of our commitment to this approach and the reality is that our commitment to operating with integrity has helped us convert our values into a competitive advantage.

My late grandfather, Mr. Amir Chinoy, Founder Chairman and my father, Mr. Kamal Chinoy, former CEO Pakistan Cables, both have a legacy of being staunch advocates of ethics and not compromising on values. Being ethical is a leadership choice after all. We would never bend the rules for short-term gain – it is simply a no-go for everyone within the organization. Hence, it is no such coincidence that the brand’s slogan is “TRUSTED NOT TO COMPROMISE”.

6. SAFETY PAR NO COMPROMISE

Losing a loved one is not just tragic, it breaks people. That is why the safety of our loved ones is paramount to all of us and this is the reason why we must continue to look towards companies, products and solutions that are aligned towards safety. As highlighted in my earlier blog, according to one estimate, fire incidents kill 16,500 and cost billions of rupees annually. Rescue 1122 reports 124,854 fire incidents between 2004 – 2019 in 37 towns and cities of Punjab alone. This means over 8,300 fire incidents annually in these cities! A number of reported cases of household fires are owing to short circuits. Faulty wires and outdated electrical systems are often the main culprits. Such eventualities can be avoided. We only need to wake up to a basic premise; ‘safety’ is not just a check-in-the-box item anymore. Safety is an integral part of any construction project and this is recognized by the builders, engineers, consultants and associated stakeholders. Yet, decisions to opt for lower quality wires and cable brands are made without fully realizing the serious threats attached. ‘Cost-saving’ is a deceptive tactic offered by various brands today - other than using sub-standard raw materials, they lack needed certifications and the consistent approach towards quality and thereby safety. Consumers, at large, remain unaware of the risks. We, at Pakistan Cables, have championed the cause of safety for decades now by creating awareness among consumers on the downside of buying lower quality product. Consumers who opt for Pakistan Cables invest in safety.

Moreover, Pakistan Cables has invested in R&D to bring to market products with higher safety ratings. An example of this is Low Smoke Zero Halogen cables that have better flame propagation properties and emit less toxic smoke in the event of a fire, thereby saving precious lives. Pakistan Cables is the first company in Pakistan to have its Low Smoke Zero Halogen power cables type tested by the KEMA laboratory in Netherlands, which is the gold standard in electrical testing globally. Similarly Pakistan Cables offers fire rated cables that ensure circuit integrity for a period of time in the event of a fire. As a ISO 14001:2015 and OHSAS 18001:2007 certified company, we are the leading wire and cable manufacturer of Pakistan that’s ensuring safer choices are practiced by consumers, electricians, contractors, builders and developers, architects, and the industry at large. Pakistan has a Building Code within the fire Safety Provision 2016, however the implementation of the code remains weak. Ensuring manufacturing and distribution of products that adhere to safety codes and are compliant to safety regulations is every company’s responsibility. But we do not live in a perfect world. Therefore, consumers need to be extra vigilant in their purchasing decisions. Being fully aware of the risks associated with the manufacturing of wires and cables, Occupational Health and Safety (OHS) has always been an integral part of our business for decades. After all, prevention is better than the cure. The World Health Organization (WHO) states, "occupational health deals with all aspects of health and safety in the workplace and has a strong focus on primary prevention of hazards”. To safeguard the interest of all our employees, Pakistan Cables has been successively running health and safety programs for several years. In 2019, approximately 800 person-hours spent on trainings focused on Behavioral Based Safety. Such activities help share knowledge and ensure sustenance of Organizational Health, Safety and Environment good practices in the workplace. This proactive approach leads to preventing occupational injuries, illness, and loss due to accidents at workplace and improve efficiency. For instance, our efforts during 2019 resulted in achieving several million person-hours without loss time injury. What’s more, working on a cause that is dear to everyone results in creating employee engagement platforms that strengthens teamwork too.

Our people’s efforts have paid off; Pakistan Cables has successively won various awards for its exemplary measures in OHS&E. Awards won over time but not limited to: 1. NFEH’s Environmental Excellence Awards ( 2010, 2011, 2013, 2015 and 2019), 2. 2nd Prize for Employees Federations of Pakistan (EFP) “Best practices in OHS 2018 3. 3rd Prize for EFP-Best Workplace Environment 2015 4. 3rd Prize for 11th OSH&E Compliance Award 2015 and most recently 5. NFEH’s CSR award 2019 in Efforts Sustaining Clean and Green Environment

providing information required by customers to reach the right decision is our responsibility. This is why we are transparent in our approach to the products we offer or our overall working environment to ensure an optimal HSE approach. Together we can build fairer markets guided by best practices to flourish businesses and communities alike, running in harmony and on the principle of safety par no compromise for everyone!

7. Goodbye 2019, Hello 2020

December is finally here and we are gearing up to say farewell to 2019. But are we prepared for what is coming in 2020? During the past year, we all braved through challenging times - from a complete meltdown of the Pakistan Stock Exchange, to the persistent economic woes that resulted in the resignation of the Finance Minister, Asad Umer. Continued reports of the fall of Pakistan’s foreign reserves, rising prices on account of inflation, devaluation of the rupee, the IMF program – are only some of the highlights that influenced Pakistan’s economic landscape.

If I look back at the onset of 2019, our challenges were certainly greater than where we stand today. The currency appears to have stabilized, the current account deficit is shrinking thanks to a decline in imports and growing exports and the stock market has rebounded. While these are early signs of stabilization, the challenges remain. Inflation is still persistent, interest rates are high, our export base is very low and we have a tremendous amount of government debt. We are still not out of the woods yet!

So while I am optimistic that 2020 will be better than the past year, we must brace ourselves for continued challenges by keeping in mind the following approaches:

1. Celebrate victories

2020 may or may not turn out to be a year of huge wins. However, when confronted with challenges, it is our attitude towards unfavorable situations that often defines our own success. In crisis comes opportunity, and we should seize these opportunities in our respective quests for continuous improvement. And indeed there will be successes and these must be celebrated.

2. Be frugal

Running a business efficiently is not optional anymore. Every rupee spent needs to be scrutinized in terms of the ultimate value proposition. Unnecessary expenditures that ‘look and feel’ good but return nothing tangible to the business in the short or long term are best avoided.

3. Work with employees to build achievable goals

The first thing that gets impacted in the tough times is employee morale. It’s simple, really; the more someone feels they’ve achieved, the more driven they’ll be achieve more of the defined goals. At times like this, especially when starting out the New Year - pump your people up. Let them know that the burdens they carry are not theirs only.

4. Build Capabilities

In an earlier blogpost, I had stated that in an increasingly competitive business landscape, Pakistani companies are now aggressively competing with local and international brands on home turf. As category leaders / business pioneers, the ultimate win zeros in on one simple choice - to innovate! The new year requires reviewing our internal capabilities and flagging areas of improvements that benefit the organization and stakeholders at large.

It is still not clear whether the year 2020 will be one in which we turn the corner. But we all have a part to play in this story and we must remain steadfast in the face of challenges. Pakistan has an incredible amount of untapped potential and I am confident that if we seize the right opportunities this could very well be the year that Pakistan starts to emerge as one of the countries that could be the next big growth story.

I wish you all a very Happy New Year!

8. THE VERDICT

No feeling is more gratifying than being recognized by valued stakeholders, particularly when customers express confidence in your product and brand. A few weeks earlier, Pakistan Cables won the ‘14thConsumer Choice Award 2019’ for the ‘Consumer Demand’ category, organized by the Consumer Association of Pakistan. On receiving the award, I could not help but think that despite the tremendous pressures we face from cheaper brands (often offering sub optimal quality products in the market), the consumers still know the difference and count on us to deliver the best quality that money can buy. For us, at Pakistan Cables, we are truly humbled and thank each one of you for your patronage over the years.

The brand – Pakistan Cables - is by far the most trusted brand name in the category. Hundreds of people work day and night, across Pakistan, to make sure that we uphold the trust our customers have in us. This is a trust built over decades of consistency and driven by an ethos within the organization to never compromise on quality.

Recently, I met a CEO of a leading international company in Pakistan. As I began to introduce Pakistan Cables to him, he cut me short and informed me that the company needed no introduction. He told me that just that morning he was showing his home to a potential buyer and that the only question on building materials asked was whether Pakistan Cables was used when the house was built. The CEO was pleased to tell the prospective buyer that this was the case and that in 18 years, he had never faced an issue with the wiring. He went on to inform me that the potential buyer enthusiastically approved of the choice.

If you browse through the Dawn Newspapers Sunday classified section, where new homes are up for sale, amongst the listings of high-end bungalows, you will often find Pakistan Cables being listed amongst the brands and features. This clearly shows that discerning buyers value quality and are looking for Pakistan Cables as a critical feature in the home. After all, no one wants to deal with wiring issues once the home has been built and people are living in it. It only leads one to understand that for consumers, the brand – Pakistan Cables is hallmark of trust and a sign of assurance they seek when making important decisions.

Last week, Pakistan Cables won the FPCCI’s “Merit Award for Exports 2019”. It is a jubilant occasion for all of us, as we won the award for the fifth time consecutively. Last month, the company also won the ‘7thFPCCI Achievement award’ for our contribution towards technological advancement in power transmission systems by introducing a revolutionary technology, ACCC® conductors, for the first time in Pakistan. The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) organized 7th Achievement Awards Ceremony for the year 2019 in recognition of the praiseworthy contributions in development of different sectors of national economy. Pakistan Cables launched aluminum Composite Core Conductors or ACCC®, in collaboration with CTC Global Inc., US, in 2017. You can read more about the ACCC® in one of my previous blogs. While we have ACCC® making gradual inroads, there is so much more that needs to be done in collaboration with the policy and decision makers.

9. INNOVATE OR DIE

Every time I see a brand set out to purse a dream it knows can change the customer experience for the better or have a meaningful impact in some manner, it makes me stand up and notice!

In an increasingly competitive business landscape, Pakistani companies are now aggressively competing with local and international brands on home turf. As category leaders / business pioneers, the ultimate win zeros in on one simple choice - to innovate!

The recent launch of Pakistan’s first e-store that offers general wiring solutions to homeowners and end users by Pakistan Cables is one such definitive decision for us. The Pakistan Cables e-store offers the facility to consumers / homeowners to shop for general wiring solutions online, without the hassle of braving crowded markets. The product is shipped and delivered right at your doorstep speedily. Time-starved consumers will benefit tremendously with the launch of the Pakistan Cables e-store because they will have access to authentic products directly from the company conveniently.

Launching an e-store in the construction materials category is rare. E-commerce platforms in Pakistan are popular among other categories such as fashion apparel, consumer durables, FMCG categories and so on. However, we are convinced that there in a need in the construction material space, particularly with high value items such as wiring, usually available in hardware markets that consumers may not chose to directly access but rather rely on the contractors or electricians.

According to a survey by Google, Pakistan has been termed as the fourth largest digital economy by 2030 (Google). In Pakistan, the e-commerce market size is expected to cross $1 billion by 2020. As per the State Bank’s report, there were approximately 905 e-commerce merchants registered with banks in 2017 and I am certain the number has risen since then. Pakistan is one of 11 countries to the next billion new Internet users. Growth in the e-commerce market is expected from the surging middle class of over 50 million people.

Above everything else, the Government of Pakistan has finally announced the E-commerce policy framework proving that e-commerce is well entrenched among Pakistani shoppers today and that trends are clearly shifting in this direction. It’s the businesses that need to gear up and respond to the changing needs and expectations of the Pakistani consumer.

Currently available in Karachi, Lahore, Islamabad and Rawalpindi and with plans to roll out into other cities and towns, Pakistan Cables e-store is set out to be a benchmark for the industry. The e-store is easy to navigate and allows shoppers to pay through four different payment methods that include Cash on Delivery, Credit/Debit Card, Cross Cheque and Bank/Online Transfers.

As the leading wires and cable manufacturer of Pakistan, the brand – Pakistan Cables – always fuels empowerment through the veins of the country. Modernising business practices for greater efficiency, offering world class quality, revolutionizing with innovative technology and foreign collaborations – such bold decisions and risks have fortified our brand equity. We are extremely proud that we have been able to launch an e-commerce platform to facilitate consumers/homeowners. Simply log onto our e-store and experience the difference right away!

10. FBR’s Tax Reforms: Better Late Than Never

The debates are rife, protests frequent and targets, ever ambitious. That is how I sum up the state of affairs as far as the Federal Board of Revenue’s (FBR) efforts to widen the tax net go. The current government in its resolve to drive Pakistan towards economic viability and develop domestic revenue resources has set a target of Rs. 5.5 trillion for the FBR in the current fiscal year. This will not be an easy task. Especially when from the appointment of the new FBR Chairman, to the introduction of tax collection framework for retailers or the launch of technology-enabled solutions for the convenience of taxpayers, everything has been met with skepticism and resistance by the public and business communities alike.

The FBR has become more aggressive about identifying non-filers. Non-filers, people not declaring assets, businesses not paying sales taxes - there are multiple categories of violators that exist within our economy and the FBR is out to get them. In the last few months, the government’s position and resolve is clear - it remains undeterred and no amount of public protests and controversies spun by media have slowed down its efforts to going after culprits and document an otherwise opaque economy. Kudos to the government and the tax machinery for taking brave and ambitious steps in moving in this direction.

The local wires and cables industry is highly fragmented with the hundreds of entities that are relatively small size manufacturers. Most of them operate in the unorganized sector. Poor law enforcement has resulted in a steady growth of the unorganized sector in our sector. Pakistan Cables is the only wire and cable manufacturer listed on the PSX and our business approach upholds the ethos of transparency and good corporate governance. Our fundamental belief is to conduct business with integrity. Today, we are outnumbered by competitors who maintain low overhead costs and sell at a cheaper price by conveniently avoiding paying taxes and duties and operating under the radar. Even larger entities operate with a mixed approach, choosing not to comprehensively declare their business levels and thereby reduce costs. Thus, from the perspective of Pakistan Cables the FBR’s initiative is a welcome effort as it paves way for a level playing field for businesses that operate by the book.

Making its mark by contributing towards the national exchequer through imports of raw material and paying all applicable taxes, Pakistan Cables stands tall and side by side a number of the major manufacturing concerns of Pakistan. For over six decades, we have worked closely with allies in the business community as well as the government to ensure that the industry evolves as a whole, its interests are well preserved and it continues to contribute towards the economy by creating employment, trade and growth opportunities for its stakeholders.

What I particularly find alarming is the defiance shown by a particular population segment that refuses to follow the law and pay taxes in the first place. As citizens of Pakistan, some of us choose to live under the misconception that rules are to be broken at home and followed overseas only. I have personally observed numerous times, fellow Pakistanis being law-abiding citizens of a foreign land. However, as soon as they reach Pakistan they freely break all the rules – smoking cigarettes at the luggage conveyer belts at the airport, breaking traffic lights and blatantly ignoring basic rules that they follow abroad. Choosing to be a non-filer and conveniently dodging taxes is parallel to this approach. Hence, a change in our own attitudes is much needed. As citizens of Pakistan, each one of us should take ownership of their responsibilities towards the state and share it equally. We are quick to criticize our governments and decision makers and yet are highly hypocritical – because when it comes to paying taxes we are suddenly no where to be found and yet magically expect the country to flourish. The fact that Pakistan is amongst the countries with the lowest tax-to-GDP ratio in the region speaks volumes of the kind of service we have done for our homeland.

In my July blog, I indicated that the road ahead for Pakistan’s economy will continue to remain tough as austerity measures drive the economy in the medium term for a better future in the long term. Enhancing the tax net is a linchpin for any economy. Hence, the sooner everyone (i.e. business owners and consumers) accept it and participate with an entrepreneurial zeal, the sooner we can plug the tax-revenue gap, foster fair competition among local industries and hopefully restore the confidence of the masses within the government’s measures to restore the economy.

11. WHY IS THE GOVERNMENT FAILING THE LOCAL MANUFACTURERS?

Imagine countries that drive economic policy towards foreign direct investment and industrialization, while at the same time crippling incumbent and high potential local industries by putting them at a disadvantage to imports. Unfortunately, in Pakistan that is a reality for some local industries. In fact, Pakistan’s wires and cable industry faces severe challenges owing to inconsistent Government policy.

MYTH vs. REALITY:

Myth: Government policy is aligned to boost and create opportunities for local businesses.

Reality: The local cable industry is being suppressed by current policies. Imports of wires and cable have more than doubled from USD 56 million to USD 124 million in the span of two years. This is an outcome of so-called measures taken to ‘facilitate’ FDI and CPEC projects through special exemptions, granted exclusively to importers, which are otherwise not available to local manufacturers.

Today CPEC, Greenfield, Power Generation and Transmission projects get special exemptions from sales tax and duty on imported wires and cable. Owing to which importing the products is cheaper than buying its locally manufactured counterpart. Local manufacturers, on the other hand, are subjected to sales tax and duty on raw materials (whether they supply to projects with exemptions or not). The Government has created an imbalance that is giving imports between 15% - 20% cost advantage over local cables.

To the Industry’s dismay, the recently passed Finance Supplementary (Second Amendment) Act 2019, carried sweeping exemptions for all “Greenfield Projects”. This by default, incentivizes any new industrial project to opt for importing cables and thus resulting in a retrogressive impact on our industry.

CASE FOR SAFEGUARDING LOCAL INDUSTRY:

According to an estimate, the local wires and cable industry employs over 3,000 households and generates a combined revenue of over Rs 40 billion. Unfavorable policies adopted by the Government have only resulted in declining profits and an overall slowdown in demand through increasing imports. Signs of a decline in the growth of large-scale manufacturing, especially in the construction sector, are evident.

While I understand the Government’s agenda for harboring industrialization and bringing in new industry, should it be at the expense of a pre-existing developed industry?

Other benefits of developing local industry are:

1. Creation of jobs, development of higher level of skills.

2. Innovation and transfer of knowledge in industry

3. Self-reliance and saving on FOREX by fulfilling our needs through local goods

4. Enhancing “Made in Pakistan” by incentivizing local products to compete internationally with world class quality

At a time when Pakistan needs maximum support in building its electrical infrastructure, its policies are set out to destroy rather than protect or nurture the local industry. Successive Governments have failed to document the shadow economy that continues to affect the manufacturing sector via rampant counterfeits, smuggled goods and the unorganized sector. The local industry’s sheer resilience have kept it going until now. The All Pakistan Cables & Conductors Manufacturer’s Association (APCCMA) has met all key policy makers on issues crippling the industry but the Government’s patronage remains much awaited.

THINK GLOBAL, ANYONE?

Our country’s engineering base has huge potential and the cable industry has a role to play in it. With industry friendly policies, backed by a suitable economic environment, the wire and cable industry can become a major contributor to exports for Pakistan. Our policy makers need to learn from Turkey where supportive government policies have resulted in making Turkey the 5th largest cable exporter in the world.

Considering the numerous socio-economic challenges, which local manufacturers encounter, an encouraging response from the policy makers should have been part of the Government’s Vision 2020. The Government’s recent decision to tap CPEC opportunities by establishing a business forum is a welcome sign. It still requires a measurable and transparent action plan. Above all, it needs a buy-in from those local manufacturers who remain at a clear disadvantage.

The domestic cable industry is keen to work with all relevant departments within the government to create a level playing field for itself thereby creating import substitution and also to generate revenue through exports. After all, isn’t a reduction in the current account deficit a burning priority in terms of the government’s mandate?

12. Why Ethics in Business Still Count …

You may find it strange that someone needs to reinforce the importance of ethics in business, especially in a post Enron and Arthur Andersen era. After all, the collapse of the two giants in 2001 forced companies around the world to revisit their commitment to best practices and implement firmer controls to ensure transparency and foster an ethical work culture.

So when recently, the CompetitionCommission of Pakistan (CCP) imposed a total penalty of Rs18 million on 18 electric cable makers for deceptive marketing, one is forced to wonder why the business community is not waking up to the responsibilities we owe to all stakeholders including the communities we serve?

The CCP has directed the accused cable manufacturers to clearly print incentive details on the packaging, which buyers are entitled to on purchase of the product. The practice employed by these 18 cable manufacturers did not disclose rewards; hence, the end-consumers often were not aware that the boxes included cash prizes for electricians and other influencers. The cost of the rewards were built into the price and the consumer would pay for the rewards without necessarily benefiting from them.

Offering instant cash rewards / tokens as an incentive to buyers has been a norm for many years in the wire and cable industry, along with other industries such as paints. Cash coupons are offered by numerous brands within the organized and unorganized sector. Consumers end up installing brands that may appear inexpensive but may also pose a graver risk to life and property, as they do not conform to international specifications. It is in the consumers’ interest to be aware of promotions / incentives that are offered by product manufacturers. This ensures that intermediaries are not able to influence the decisions made by end consumers just on account of rewards, while having no regard for the consumers’ safety or wellbeing.

In my view, any business that is established with the intent to serve communities, respects the fundamental notion of freely sharing relevant information with stakeholders. The sooner businesses embrace this reality, the sooner our industries transforms for the better.

According to one estimate, fire incidents kill 16,500 and cost Rs. 400 billion annually. Rescue 1122 reports 124,854 fire incidents between 2004 – 2019 in 37 towns and cities of Punjab alone. This means over 8,300 fire incidents annually in the listed 37 towns and cities of Punjab. A number of reported cases of household fires are owing to short circuits. Faulty wires and outdated electrical systems are often the main culprits. The Regent Plaza fire or more recently the Jamshed road fire in Karachi claimed human lives.

While Pakistan waits for its Fire and Safety Act, the Pakistan Engineering Council (PEC) and the National Disaster Management Authority (NDMA), prepared a “Building code” to prevent fire hazards in buildings, which was approved by the President of Pakistan, Mr. Mammoon Hussain, in 2017. Enforcement is direly needed. Weak implementation of the fire safety laws and building codes is an opportunity for manufacturers to lead from the front with the consumers’ interest and protection in mind and win not just brand loyals but the respect of industry players.

Another challenge is the large segment of the cottage industry comprising of counterfeiters. Counterfeit cables are those that sell under false pretenses, essentially falsifying that they are compliant with safety and performance standards. Counterfeiters go unchecked and the segment continues to thrive in all major cities of Pakistan, particularly Punjab and KPK belts.

To safeguard consumers’ from counterfeiters and protect their interests, Pakistan Cables® introduced an SMS based Product Verification system that results in giving control to the consumers and allowing them to authenticate products directly.

In its 65 years of pioneering wires and cables in Pakistan, Pakistan Cables® has long served its customers across generations. We have only been able to do so because of our deep-rooted commitment to ethical practices. We do not deter from taking unfavorable commercial decisions if it requires us to violate the internal resolve of conducting business ethically.

Such hard decisions come at a price; however, the reward has been utmost respect and admiration from our business partners and unwavering loyalty from consumers. The two enable us to sustain profitably in the end. We remain a true leader with an intent to serve not deceive, lead from the front and not back down in face of surmounting challenges.Such hard decisions come at a price; however, the reward has been utmost respect and admiration from our business partners and unwavering loyalty from consumers. The two enable us to sustain profitably in the end. We remain a true leader with an intent to serve not deceive, lead from the front and not back down in face of surmounting challenges.

13. Ramzan Retrospection

Ramzan Kareem everyone from all of us at Pakistan Cables Limited.

We are almost midway into the Holy month of Ramzan, a month that brings with it countless blessings for all Muslims around the world.

Don’t get me wrong, I have no plans of delivering a sermon on the do’s and do nots of Ramzan. All I want to do is simply identify a great opportunity that otherwise gets lost in the clutter of our deadly routines i.e. the grind.

Ramzan brings a rare opportunity for us to introspect and reflect on our chosen way of living. We all know that reflection is key before setting out on any mission. Just as the leadership teams in companies revisit the company’s mission and vision statements from time to time, we also need to invest time contemplating our life-missions. Introspection gives clarity and fuels will power. Every day we fight battles, be it in a marketplace, at the office or any other facet of life, and we all know that the last one still standing is the one with the strongest will power.

· Alexander III of Macedon or commonly known as Alexander the Great, earned the epithet “the Great” due to his consistent success as a military commander. Driven through determination and willpower - he never lost a battle. His conquests and exploits are admired all around the world.

· Quaid-e-Azam Mohammad Ali Jinnah’s determination gave Muslims of the sub-continent Pakistan.

· Countries such as Finland and Iceland transformed themselves by practicing a collective will power stand as role model countries for being the cleanest and safest respectively.

· Corporate giants such as Apple, IBM, Star Bucks, General Motors all have made some of the most dramatic comebacks.

There is no straight formula for success; but each of the examples listed above indicate that a selfless intent fueled by strong will power can shape a destiny.

While companies are driven to attain hard-core business success, some companies are going beyond the one dimensional financial approach. These companies are including communities that they serve and work with. It’s heartening to see how local companies in Pakistan have made tremendous strides on the Corporate Social Responsibility (CSR) front over the years. In Pakistan, the Overseas International Chambers of Commerce and Industry (OICCI) members alone invested Rs. 20 billion during the FY2018 in CSR initiatives, a major portion of which was dedicated to human development and health. When companies commit to social causes and drive sustainability through CSR initiatives you know it’s a step in the right direction, simply because not only is it giving back but it’s also investing in future generations.

Pakistan Cables® association with philanthropic initiatives is as old as the company itself. We have a history of supporting development in areas of education, health, social development, and gender equality. A more recent addition was supporting the cause of art and urban development when we sponsored the Public Outreach initiative of the Karachi Biennale Trust during 2017 through Reel On Hai.A dedicated 2.5 percent of our profits after tax to charitable causes is a policy we have practiced for many years as we have always believed in serving the communities we live and work with. Another heart rendering cause we have supported for two years consecutively is providing solar lamps to the miner’s community living in Dukki, Balochistan in collaboration with HELP Balochistan. Over 3,000 households have directly benefited and have access to light for the very first time! We are also committed to supporting education and have sponsored gold medals at various top engineering institutions. Our CSR approach is evolving with changing dynamics and we are committed to ensuring that we have a holistic approach to CSR, which involves the company and engages its employees on an ongoing basis.

This Ramzan we unveiled our digital campaign #NoCompromiseOnKindness which is a simple way to remind ourselves that the smallest gestures of kindness can make a big impact.

The road to betterment is never ending. Successful businesses and thinkers are entities that invest in introspection. They move coherently on the evolving needs of the communities around them. Similarly, our lives should not be any different. Irrespective of how many risks one takes or how cautiously one treads, setbacks hit you hard. However, it is all in one’s own hands to ensure that no matter how hard the times are, it’s never too late to start again and rebuild for the better – be it a business or a community and as far as I see it, the two go hand in hand.The road to betterment is never ending. Successful businesses and thinkers are entities that invest in introspection. They move coherently on the evolving needs of the communities around them. Similarly, our lives should not be any different. Irrespective of how many risks one takes or how cautiously one treads, setbacks hit you hard. However, it is all in one’s own hands to ensure that no matter how hard the times are, it’s never too late to start again and rebuild for the better – be it a business or a community and as far as I see it, the two go hand in hand.