The State Bank attracted $67
million worth of fresh foreign currency deposits (FCDs) from banks in June after it asked
them on June 5 to place surplus foreign currency funds with it.
The SBP revealed it to all commercial and investment banks on Thursday
through a letter dated June 30 which said the foreign exchange reserves totalled around
$1.73 billion on the same date. The letter did not say specifically whether the foreign
currency deposits placed by the banks with SBP formed part of the reserves but bankers
said the FCDs placed with SBP were included in the reserves.
Forex reserves up $ 49m
The foreign exchange reserves have increased by 49 million US dollars
in one week, said a circular issued by the State Bank on Thursday. The foreign exchange
reserves of the State Bank as on June 30, 1999 amounted to 1.729 billion dollars compared
with 1.680 billion dollars last week.
$300m IMF tranche to be offered this month
The International Monetary Fund (IMF) will offer the next tranche of
$300 million to Pakistan by July this year.
Sources in the multilateral agencies told that an IMF review mission
was arriving here in early July to finalize the arrangements for offering the next
tranche, out of $1.6 billion Extended Structural Adjustment facility (ESAF) and Extended
Fund Facility (EFF).
"The fund authorities are expected to disburse 200 million Special
Drawing Rights (SDRs) by next month which are roughly equivalent to $300 million",
disclosed a source in the local multilateral agency.
When contacted, he said, IMF has no plan whatsoever to withhold the
next tranche as was reported in the section of the international press, especially in the
Washington Post. "And we do not know from where this figure of $100 million came
which according to the Post was being withheld", he said. The IMF he added, has
informed the Pakistani authorities that future funding from the ESAF/EFF programme was
very much on "schedule" and that it was not being suspended.
Sources said "much of the ground has been covered" to offer
the next tranche during discussions between the government and the IMF review mission in
early June. Therefore, they said, Pakistan now largely qualifies for receiving the next
tranche of $300 million.
Foreign investment in commercial bank shares allowed
The Securities and Exchange Commission of Pakistan (SECP) has allowed
foreign nationals and foreign financial institutions to invest in the shares of domestic
commercial banks for trading purposes only.
According to a circular of SECP, under the agreement signed between the
Government of Pakistan and the World Trade Organisation (WTO) on financial services, the
following securities market-related conditions are to be complied with:
Prior permission in writing of the Central Bank (State Bank of
Pakistan) will be required by any person for holding beneficial ownership of five percent
or more of the paid up capital of any bank/financial institutions incorporated in
Foreign nationals and foreign financial institutions will be allowed to
invest in the shares of domestic commercial banks for trading purposes only.
MCB gives 17.5pc dividend
Muslim Commercial Bank (MCB) increased its after tax profit by 67 per
cent to Rs399 million during 1998 from Rs239 million in 1997, its chairman Mian Mohammad
Mansha told its annual general meeting (AGM). The AGM also announced 17.5 per cent
dividend for shareholders for the year under review as compared to 15 per cent in 1997.
Dollar rates up by one rupee in kerb
Licensed money changers have increased US dollar selling rate by 100
paisas to Rs 54.50 bringing it at par with the black market rate and lifted all
restrictions on dollar transactions.
In a dramatic move the Forex Association of Pakistan (FAP) fixed the
dollar rate at Rs 54.20/ 54.50 for buying and selling and said it was a step on part of
their own to tackle the black marketing of green bill in the open market.
Denmark, Pakistan sign agreement for debt rescheduling
Denmark on Tuesday signed a bilateral agreement with Pakistan on debt
rescheduling, allowing Islamabad to make due re-payment of $ 3.5 million over a period of
The agreement was signed following negotiations between the two
countries in Islamabad on consolidation and rescheduling of debt, in pursuance of Paris
Club Agreement of Jan 30, '99.
According to the official sources, debt service payments due during the
period from July 1, '98 to Dec 2000, amounting to DKR 24,4000,000 ($ 3,383,015) have been
consolidated for repayment over a period of 20 years, including a grace period of 10
years, free of interest.
The first instalment of rescheduled debt will be paid on July 1, 2010
and the final payment will be made on Jan 1, 2020, the sources said.
NIT attracts net inflow of Rs555m
The National Investment Trust (NIT) had a net inflow of over Rs555m
into the fund during the current fiscal year, official sources said Saturday.
'The initiatives taken by the NIT's management has helped improve the
investors' confidence and the redemption pressure on NIT has eased,' sources said.
NIC nets Rsl.515bn profit
The chairman of National Insurance Corporation Jahanzeb Khan has said
that the NIC made a record profit of Rsl.515 billion during 1998.
Giving other financial details of the NIC, which was the sole insurer
of the public assets, at a press conference on Saturday he said that the corporation had
also declared surplus of Rs300 million which had been deposited in the government account.