Pakistan, Saudi Arabia agree to improve bilateral cooperation

Prime Minister Nawaz Sharif meets Saudi Arabian Crown Prince Salman Bin Abdul Aziz at PM House, Islamabad on February 17, 2014. PHOTO: PID

Despite missing out on coveted defence contracts amid $183 million worth of bilateral agreements, Pakistan and the high-powered Saudi Arabian delegation called for taking advantage of the investment, trade, energy, infrastructure development, agriculture sectors for the mutual benefit of the two countries, says a joint statement issued by the foreign office (FO) on Monday.

The Saudi Arabian Crown Prince Salman Bin Abdulaziz, who is also the deputy premier and minister of defence, concluded his three day trip to Pakistan on Monday.

According to the FO statement, the two sides called for taking advantage of the opportunities available in the two brotherly countries for expanding and improving investment, trade, energy, infrastructure development, agriculture and exchange of government’s delegations for mutual benefit of the two brotherly countries.

They also decided to continue to work on further fortifying existing political relations between the two countries through regular holding of bilateral consultations between the Foreign Ministries of the two countries. The two sides also agreed on the need to enhance bilateral cooperation in the field of defense.

MoUs

The two sides acknowledged the importance of completing necessary measures for signing of the agreements and MoUs in different fields including Islamic affairs and endowments, labour, manpower, sports and an agreement to encourage and protect mutual investment in the two countries.

The two sides signed agreements under which the latter will provide a total of around US $183 million for the import of urea fertiliser from Saudi Arabia and the construction of a hydro-power project in Chitral.

The signing ceremony held at the PM House and was witnessed by Prime Minister Nawaz Sharif and Saudi Crown Prince and Defense Minister Prince Salman bin Abdul Aziz Al-Saud.

Vice Chairman, Managing Director Saudi Development Fund, Yousef Bin Ibrahim Al-Bassam and Secretary Economic Affairs Nargis Sethi signed the agreements on behalf of their respective sides.

Under the first agreement, Saudi Arabia will provide a credit facility of US $125 million for the import of Urea fertiliser from Saudi Arabia.

Whereas under the second agreement, Saudi Arabia will provide an additional loan of $57.8 million for the construction of a 106MW Golen Gol hydro-power project at River Mastuj in Chitral.

Syrian people

The two sides reiterated the need for finding of a quick solution of the existing conflict in Syria according to Geneva I Resolution in order to restore peace and security in Syria and prevent bloodshed of the brotherly Syrian people.

In this regard both sides called for the following:

- Importance of immediate withdrawal of all foreign armed forces and elements from Syrian territory.

- Lifting siege of the Syrian towns and villages and stopping aerial and artillery bombardment.

-  The setting up of safe corridors and regions to deliver food and humanitarian aid to besieged Syrian citizens, under international supervision.

- The formation of transitional governing body with full executive powers enabling it to take charge of the affairs of the country.

Palestine issue

On the Palestinian issue, the two sides reaffirmed their consistent stand to support the Palestinian right to arrive at a just solution which leads to establishment of Palestinian state with Al-Quds as its capital.

The two sides reiterated the need for stopping Israeli practices including continuation of building settlements and putting impediments to peace efforts.

The two sides emphasised that the peace efforts should be based on Arab peace initiatives and the relevant UN resolutions.

The two sides reiterated their commitment to fight extremism and terrorism in all its forms and manifestations and continue to cooperate in the field of exchange of security related information.

They also emphasised the importance of security cooperation to combat the crimes of drug trafficking and money laundering.

Kashmir dispute

The Saudi side expressed hope for reaching peaceful resolution of the Kashmir dispute in accordance with the relevant UN resolutions so that it contributes to the achievement of a permanent peace and stability in the region.

The Saudi side welcomed the positive developments in Indo-Pakistan relations, which would reflect positively in the interest of the two neighbouring countries and stability in the South Asian region.

Afghan situation

On the situation in Afghanistan, the two sides expressed their support for Afghan reconciliation by including all sides and components of the Afghan society to arrive at restoration of peace and stability in Afghanistan.

They underlined support for the political process through holding the elections scheduled for April 2014.

The Crown Prince Salman Bin Abdulaziz thanked the government and people of Pakistan for the warm reception and hospitality he and the accompanying delegation received.

The royal guest and the delegation accompanying him were given a warm reception by President Mamnoon Hussain and the prime minister.

Sartorial Word: Sindh fest’s politico-fashion angle

Fashion doesn’t have to go hand in hand with politics, but compared to their older, staid counterparts, this young bunch from the Bhutto dynasty is a refreshing sight

KARACHI: 

Fashion may have just found some new supporters in the scions of the Bhutto dynasty, Bilawal and Bakhtawar Bhutto Zardari. With the sartorial declaration, ‘Meri ajrak, mera style’, they launched into an exuberant Sindh fest over the past two weeks.

Amongst the kite-flying on the beach, donkey races, song and dance performances from interior Sindh — kudos, to the political heavyweights who endeavoured to prove themselves to be true sons of the soil, by clapping their way through such routines — the fête also featured the one peg that promises celebrities, glamour and red carpet glitz — fashion.

On the most fundamental level, there was ajrak everywhere: as the pattern of the ‘Superman’ Sindh logo, as a wrap for Bakhtawar and peeping coquettishly from the front pocket of Bilalwal’s sherwani. Shehryar Taseer, of the long-time PPP stalwart ‘Taseer family, who spearheaded the fest’s fashion events, commented: “Our ajrak is beautiful, and yet people around the world aren’t really aware of its roots belonging to interior Sindh. This is our way of promoting it.”

Even sans the ajrak, though, the young politicos cut a dapper set. Sure, fashion doesn’t necessarily have to go hand in hand with politics, but compared to their older, staid counterparts, this bunch is a refreshing sight. At the much-acclaimed Sindh Fashion Festival, held at the gorgeous Hindu Gymkhana, Bilawal sported a classic black sherwani by designer Amir Adnan, Bakhtawar opted for pretty pastel shades and Shehryar suited up just fine. Nothing over-the-top; it was just well-tailored, elegant designer-wear.

Designer Amir Adnan, whose fashion segment that evening was dedicated to role models, featured Shehryar walking the catwalk in a finely tailored black sherwani. He said: “These are young people who may lead the country in the future. When Bilawal and Shehryar asked me to design for them I knew that while they needed to look good, their clothes also needed to fit into the dignified mould that they have set for themselves.”

Other than the fashion show, the festivities included a fashion museum exhibit, also at the Hindu Gymkhana, and a massive Fashion for Conservation sale at the Mohatta Palace, which managed to raise two million rupees for the Sindhu Heritage Fund by selling discounted designer-wear. One saw smatterings of Sindhi influences here and there: the ajrak, moustaches and Sindh-fest logos by T-Shirt Swag at the Fashion for Conservation sale; the ingenious shirt by Sania Maskatiya at the fashion museum exhibit, digitally printed with images of Madam Noor Jehan, Nazia Hassan and Benazir Bhutto; FnkAsia’s showcase featuring indigenous Sindhi craftsmanship and, of course, Zaheer Abbas’ fabulous ‘Ajrakistan’ where the designer moulded the traditional fabric into some very untraditional, avant-garde apparel, earrings and top hats! As Bilawal pointed out at the Fashion Festival, “We’re promoting fashion because it is, obviously, a part of our culture in Sindh.”

And yet, there wasn’t really anything intrinsically Sindhi about the many other designer collections that were on display. One got the feeling that designers just rustled up what they could — from bridals to luxury-prêt, prêt and dated collections donated charitably to the sale. Shehryar Taseer conceded, “This time, we literally put together the Sindh Festival in 90 days. There wasn’t enough time for us to ask designers to create thematic collections for us. Next year, though, we’re going to plan beforehand and make sure that the fashion showcases truly emulate the Sindhi culture.”

Shehryar — aided by Ayesha Tammy Haq and Tehmina Khaled — made sure that the designers featured were entirely from Sindh. The designer line-up at the fashion show, in fact, boasted some of the most prolific names in the region, ensuring that standards were high. Unlike our plethora of fashion weeks and the Trade Development Authority Pakistan’s (TDAP’s) erstwhile aims for fashion, there were no tall claims to generate business for the industry. Where Rabia Javeri of the TDAP talked about itemizing products on display and building business from the grass-root level, all the Sindh Fest professed to do was celebrate fashion.

And celebrate it did; designers were not even required to pay participation fees. Although considering the mileage generated from the events in print and electronic media, the events could easily boil down to business for participating designers. Designer Nomi Ansari’s showcase was scheduled for the second day of the fashion festival; however, it was postponed due to an attack on police officers that very day. He said, “Excerpts from the Fashion Festival are going to be aired repeatedly on all major TV channels. That’s great publicity!”

This, then, is the win-win combination that fashion struck with the Sindh fest this year — media-mileage for the former and the glossy veneer of designer-wear for the latter. If the celebrations extend on to next year, perhaps the fashion factor will become more attuned to Sindh. Shehryar Taseer speaks of bringing local Sindhi artisans to the fore in the future. That’s a great plan — We’ll applaud it when we see it happen!

Change in govt: Investment inflows could not pick up pace

According to a presentation that the Ministry of Finance gave to Nawaz Sharif late last month, foreign investment dropped 27.5% in the first half of fiscal year 2013-14. CREATIVE COMMONS

ISLAMABAD: 

Numbers tell everything. So far, for foreign investors, it seems that there is no difference between the government led by former prime minister Raja Pervaiz Ashraf and current Prime Minister Nawaz Sharif.

This is contrary to the expectations that a steady decline in foreign investment would come to a halt after the PML-N, which is considered business-friendly, formed the government in the Centre.

According to a presentation that the Ministry of Finance gave to Nawaz Sharif late last month, foreign investment dropped 27.5% in the first half of fiscal year 2013-14. The country got only $501.8 million in foreign investment compared to $691.8 million in the same period of previous fiscal year.

The figure should spark worries for the leadership that claims to be business-friendly and has promised to fetch $3.5 billion in foreign investment in its first year of government. The target seems impossible to touch as seven and a half months are already gone.

Foreign direct investment has been on a constant decline since peaking at $5.4 billion in 2007-08.

Unless the government brings foreign investment, its balance of payments woes will not ease and prospects of economic growth will remain dim. Also, a significant reduction in public sector spending will stifle growth.

Precarious law and order situation and acute shortage of energy are said to be the major impediments to investment inflows.

More hurdles

Other factors, of which many could be addressed easily, are surely hurting foreign investment more than a terrorist attack in a settled area of the country. These factors remain unaddressed and are rather aggravating to the disadvantage of the government.

The World Bank, in its annual report on Ease of Doing Business, has downgraded Pakistan’s ranking to 110 out of 189 countries. The Overseas Investors Chamber of Commerce and Industry (OICCI) is not surprised by the steady decline in foreign investment and has blamed it on the lack of enthusiasm for implementing policies and bad governance.

“We have been regularly asking the government to investigate the cause of such a sharp decline, which, among other things, is largely caused by investor’s perception of selective and lukewarm implementation of policies and governance,” said a latest report of the OICCI.

The government should not take the OICCI report lightly, as its 138 members contributed Rs724 billion in taxes in 2012. They hold assets worth Rs6.1 trillion and provide jobs to 150,000 people.

Among the biggest hurdles to foreign investment that have not been addressed are ad hoc measures, bad governance and red tape.

Intelligent team?

The government has so far been unable to assemble an able team to run the Board of Investment (BOI) – a body that should ideally provide one-window facility to investors. In less than seven months, a second BOI chairman has been brought.

After Mohammad Zubair was appointed chairman of the Privatisation Commission, another PML-N loyalist Dr Miftah Ismail was picked to head the BOI.

The board lacks policy direction because of the prevailing ad hoc system and the directors general, who are senior than the secretary, are reluctant to report to him. A Grade-20 officer, who was promoted to Grade 21 last week, is the BOI secretary.

BOI is said to be not effectively approaching the investors and has so far failed to perform its core function of advocacy. Its Karachi office, which was earlier processing visa applications within three days, is now taking more than two weeks, which is enough to irritate the investors.

Only China and Turkey

Last week, Nawaz Sharif removed all 62 honorary investment counsellors with a stroke of pen. Though all of them were not working efficiently, those stationed in Japan, Malaysia, Egypt, Canada and Norway were trying to convince investors to invest money in Pakistan. In place of them, new counsellors, with loyalty to the PML-N as the key yardstick, are being appointed.

The government is focusing all its energies on wooing investors from China and lately from Turkey and ignoring other potential investors. Probably, considering the lukewarm response to reforms, the International Monetary Fund is now pushing the country to implement a plan aimed at improving business climate. The plan talks about eliminating bottlenecks in starting a business, getting permit and trading across the border.

Gaining recognition: Branding our products

QMobile has overtaken Nokia, which once dominated Pakistan’s telecommunications industry for long, as a premier telephony company. PHOTO: FILE

LONDON: Buying a Rolex watch is perhaps what most well-off people deem a life-changing event. There are hundreds of successful brands out there but not all of them give that prestigious feeling of exclusivity to their customers as the likes of Rolex.

It is undeniable that Rolex remains a nouveau-rich man’s first expensive watch, but it is also true that very few people discard the brand after further increasing their wealth. The question arises: which indigenous brands are Pakistan’s top brands and where do they stand in international brand rankings?

While the first part of the question may have various answers, the answer to the latter part is unambiguously definitive: Pakistani brands stand nowhere globally. Actually, they stand nowhere even in Pakistan. The most popular brands in Pakistan are foreign. So pathetic is the branding of Pakistani products that no market research company produces a regular list of top Pakistani brands.

According to a recent market study conducted by London-based Edbiz Consulting, QMobile has emerged as the most popular brand in the category of mobile phones and accessories. It is not surprising for those who have now become used to advertisements of QMobile on the electronic media.

QMobile has overtaken Nokia, which once dominated Pakistan’s telecommunications industry for long, as a premier telephony company. However, it appears as if the dominance of QMobile is driven by price competitiveness of its products, as quality is hardly the main cause for its popularity and growth of sales.

In home appliances, Dawlance emerged as the most popular brand. Super Asia is second. In fashion clothing, popular brands include Junaid Jamshed (among men) and Bareeze and Gul Ahmed (among women).

In food categories, Gourmet has emerged as the most upcoming brand in the country. In schools, Beaconhouse is closely followed by City School.

Beaconhouse has emerged as the most prestigious pedagogical brand, as it is deemed a life-changing “consumer” item. It is an interesting finding, which must have implications for brand development in the country.

In the absence of prestigious brands like Rolex, Louis Vuitton and similar high-end products, the emergence of an education business as the most prestigious brand tells a story. This clearly implies that a vast majority of people in Pakistan put a very high value on education for their children.

Those who are considering investing in a viable business in Pakistan must look into the education sector from primary to tertiary level. There are already some educational groups, including Beaconhouse, Allied Schools and some other similar groups that offer educational services from nursery to university levels.

However, Beaconhouse National University stands nowhere close to Lahore University of Management Sciences (LUMS), in terms of prestige and quality of instruction. While Beaconhouse covers from nursery to university levels, LUMS remains a tertiary education provider.

Hence, despite successes of the likes of Beaconhouse and Allied Schools, Punjab Group of Colleges and the University of Central Punjab, there still appears to be an opportunity to develop a comprehensive education model covering quality instruction from school to the university level

What can events like the Shell Eco-marathon hope to achieve?

The PNEC-NUST team was unable to impress in their urban concept category but won an off-track award nevertheless as Pakistan made their presence felt at the international event. PHOTO: BILAL MEMON/EXPRESS

MANILA: If you ask any of the six Pakistan teams that were able to take part in the Shell Eco-marathon Asia 2014, you would get a very enthusiastic response as to what was the event able to achieve.

Months go into designing and building a fuel-efficient vehicle model. Add that to the efforts students make in gathering enough funds to finance the trip to Manila — where the event was held for the first time after Kuala Lumpur played the host twice. This is a tough enough task and pursuing academics at the same time does not make things any easier.

There is a reason why only six teams finally reached the Philippines. After hearing numbers hovering around the 20-team mark, it was hardly a surprise that only a handful did. However, that number hardly mattered once they were there.

Difference, though, lay in the quality of vehicles and their performance.

Across the six energy sources each in the urban concept and prototype models – the two categories featured at the event – Indonesia bagged the first prize in four, Thailand and Malaysia in three each, while China and Singapore finished first in one apiece.

Pakistan, with two of its teams competing in the prototype (petrol gasoline) model, finished 11th and 12th in the 13-team category. PNEC-NUST (11th) from the National University of Sciences and Technology (NUST) recorded an equivalent of 99.2 kilometres on a litre of fuel, while PIEASian Sarukhs (12th) from the Pakistan Institute of Engineering and Applied Sciences University posted 94.3. Virgin, from Thailand, the winners in that category recorded a whopping 1,796km.

Thailand, also the overall winners, posted 2,730.8km in their alternative petrol category in the prototype model.

The difference was loud and clear.

The one team that came close to giving competitors a run for their money was the one from the Ghulam Ishaq Khan (GIK) Institute of Engineering Sciences and Technology. Hammerhead Arc, as they chose to name it, competed in the prototype model and chose battery electric as its fuel source.

It finished sixth in their 14-team category with an equivalent distance of 205.6km, which – in the context of the race design – was not too far from the Thai winners that posted 263.4km.

But a difference was still clear and apparent.

Omar Sheikh, chairman and managing director of Shell Pakistan Limited and country chairperson for Shell companies in Pakistan, termed it a difference in cars and not the students.

His point was seconded by Ahmed Zia, a final year student at GIK Institute, who said ‘budget’ was the biggest reason behind the difference. “We start off with a very low budget,” Zia toldThe Expres Tribune. “We have simple tools. The other countries have time and a higher budget that allows them to build and design better.

“For us to be as competitive as Thailand, we needed a budget of Rs3 million. Right now, we have spent Rs1.5 million. If you double what we have spent right now, we would have been right up there [at the podium].”

A smart move, on part of the PNEC-NUST team, was to promote the event before their arrival. With the advent of social media, the Karachi team seemed to have spent a lot of time on spreading awareness about the event.

They won the off-track communications award because of their innovative approach and pocketed $2,000 — a good way to make the cash that other teams did through their on-track performance since the prize money was the same.

While the on-field performance left a little to be desired, it was the experience of competing with international standards that students took away with them from Manila.

What the event meant for others

One always wonders what can events like this, organised by a global group of energy and petrochemical companies, achieve in the long run.

Moving towards smarter mobility – the need for which has continued to evolve – fuel-efficient vehicles are the way forward. The mode of transport has evolved and will continue to do so. However, the challenges remain sustainable growth and development, coupled with efficiency at an affordable rate. All this while keeping the environmental footprint in mind.

A sound mind would start asking tons of questions right away. What about the role of the automobile industry in terms of adopting the designs students come up with since without that, the exercise’s success is difficult to quantify.

Jeremy Bentham, Shell Vice-President Global Business Environment, said the exercise was not just meant for the students. “The experience for the students is worth gold as they come to grips with challenges of working together and getting here,” said Bentham. “With regards to the work we do here, we are always working with vehicle companies. We are working in partnership with companies that were developing hydrogen fuel cell vehicles. We are part of projects that are demonstrating the practicality of such projects.”

While it may take time for the vehicle companies to adopt these designs and even more to bring them out on the road, the wheel has been set in motion

Energy trade: CASA-1000 feasible for Pakistan, says Tajik ambassador

CASA-1000 will not only alleviate electricity shortages in Pakistan but will also replace fuel-based electricity generation for Afghanistan and Pakistan. PHOTO: FILE

ISLAMABAD: 

Ambassador of the Republic of Tajikistan Sherali S Jononov said that the CASA-1000 power import project will help Pakistan get cheaper and clean energy to minimise electricity shortages and build close economic relations with neighbours Kyrgyzstan, Afghanistan and Pakistan.

He said that the project was feasible despite the law and order situation in Afghanistan, and will help it demonstrate its viability as a transit country linking two regions.

“Afghanistan has given a guarantee to ensure security of transmission line to export 1,000 megawatts (MW) by Tajikistan to help Pakistan to minimise electricity shortages,” Ambassador Sherali S Jononov said in an interview.

Among other sectors of the economy, he said that the energy sector of Tajikistan had been showing sustainable growth in the last 15 years. During this period, hydro energy generation has been stable. In addition to big plants, he said that there were also 20 medium and 40 small hydro stations in remote mountain areas, with capacity ranging from 5 kilowatt (kwt) to 1,500 kwt.

He maintained that Tajikistan was the world’s third largest producer of hydroelectric power after the US and Russia. Hydroelectric generation accounts for 76% of the total energy output in the country.

In Pakistan, the rate for firm energy is 13.2 US cents/kilowatt hour (kWh) and the rate for non-firm is 9.2 cents/kWh, while the generation cost in Afghanistan is estimated to be at least 6 cents/kWh based on the provided information. The economic analysis shows that the level cost of transmission is calculated at 4.97 cents/kWh.

The ambassador said that the four participating countries were finalising commercial negotiations, procurement of convertor stations and lines under way. The total estimated cost of the project is $1.160 billion, and will be financed with funds from the World Bank Islamic Development Bank, Arab Cooperation Group and other donors under consideration. He said that a multi-donor trust fund was being established to finance the project.

He said that CASA-1000 MW power import project will ensure a steady source of revenue for the Kyrgyz Republic and Tajikistan, the weakest economies in Central Asia, and requires no new investment in generation because it uses surplus water that would otherwise be wasted.

He said that this project will not only alleviate electricity shortages in Pakistan but will also replace fuel-based electricity generation for Afghanistan and Pakistan. It will also establish Afghanistan as a viable transit country and offer transmission capacity for other countries during the off-peak season. He said that it will also create a viable governance mechanism to build confidence among neighbours.

Afghanistan, the Kyrgyz Republic, Pakistan, and Tajikistan have been pursuing the development of electricity trading arrangements and the establishment of a Central Asia-South Asia Regional Electricity Market (CASAREM). The initial plan was to export power in the range of 1,000 to 1,300 MW from the Kyrgyz Republic and Tajikistan to Pakistan and Afghanistan. The major share of the export will be used by Pakistan, and approximately 300 MW will be imported by Afghanistan.

He said that the Project commercial structure had been finalised and the option of a Contractual Joint Venture was preferred by the Joint Working Group. He maintained that the Project Commercial Contract Framework and Model Power Purchase Agreement had been developed and was under review and discussion by the participating countries. An agreement to support procurement of constructor/operator had been signed by all.

The ambassador said that the trade potential of Tajikistan in Pakistan was $1.141 billion and trade potential of Pakistan in Tajikistan was $0.629 billion.

“Both countries have also agreed to cooperate in field of explorations, extraction and processing of gas and oil products,” he added.

The curious case of a bank CEO’s salary

Only 38 people out of more than 158,000 professionals that the country’s banking sector employed in 2012 held the title of CEO/president. PHOTO: FILE

KARACHI: 

Can a line be drawn between ‘highly paid’ and ‘overpaid’ when it comes to executive compensation?

In the case of top bankers, who are known worldwide for their insanely inflated salaries, how exactly should the monetary value of a CEO be determined?

In an ideal marketplace, the law of supply and demand would seal the remuneration debate once and for all. But according to many, things are so skewed at the top of the banking industry that the issue of executive remuneration cannot be left to the market forces alone.

Speaking to The Expres Tribune, Research Institute of Islamic Banking and Finance Chairman Dr Shahid Hasan Siddiqui said banks exploit depositors in Pakistan by operating like a cartel. “Their combined pre-tax profit in 2001 was roughly Rs1.1 billion, which rose to about Rs185 billion in 2012. But without sharing profits with depositors, their boards of directors have rewarded top managements unjustifiably and increased executive remuneration completely out of proportion,” Siddiqui said.

To prove his point, he cites the example of a foreign bank’s CEO whose take-home salary is more than Rs10 million a month.

According to banks’ annual financial reports for 2012 – the latest year for which detailed data is available – the CEO of Standard Chartered Bank had the highest annual remuneration in the country amounting to Rs143.5 million, up 34.7% from the preceding year when it totalled Rs106.4 million.

The annual remuneration of the Meezan Bank CEO was Rs99.7 million and that of the United Bank CEO was Rs97.9 million in 2012, making them the country’s second and third highest paid banking executives.

The remuneration of MCB Bank – which is the largest Pakistani bank in terms of market capitalisation – in 2012 totalled Rs83.1 million, up a massive 93.7% from 2011 when it equalled Rs42.9 million.

The CEO of Bank Alfalah received a major cut in his pay cheque in 2012. His annual remuneration dropped 38.9% to Rs82.1 million from Rs134.6 million in 2011. Yet, he was the fifth highest paid CEO in the country’s banking industry in 2012.

The highest jump in percentage terms was witnessed in the remuneration of the KASB Bank CEO. His annual remuneration was Rs62 million in 2012, up 203% from the preceding year.

“Banks have been enhancing their profitability only to the benefit of their majority shareholders,” Siddiqui said.

However, citing plain statistics show only one side of the picture, according to professionals serving at the top of Pakistan’s banking industry.

“It’s ridiculous to question why somebody is getting a high salary,” a bank president told The Expres Tribune while requesting that he should not be named. “Bank CEOs sit at the helm of for-profit organisations with assets worth hundreds of millions of rupees. I don’t find it surprising at all that their remuneration is relatively higher than that of their counterparts in other sectors of the economy,” he said.

Noting that only 38 people out of more than 158,000 professionals that the country’s banking sector employed in 2012 held the title of CEO/president, he said shareholders hold executives accountable and can fire them for bad performance.

“We get high salaries because we deserve them. If you pay peanuts, you get monkeys,” he said.