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Nisar Memon takes early retirement

  1. International
  2. Finance
  3. Industry
  4. Policy
  5. Trade

Country General Manager IBM Pakistan for ten years, Nisar A. Memon has taken an early retirement effective from end of June, 1999 to "pursue personal interests," says an IBM press release.

Nicolas Samet has been appointed as acting Country General Manager, for a transition period, effective immediately.

Nisar has served IBM for 30 years and worked on IBM assignment to the headquarters of IBM Europe, Middle East and Africa. In Paris as Marketing Support Manager, moving on to Kuwait as Sales Manager before returning to Pakistan in 1989 as the Country General Manager.

SBP cuts interest rates for July

The State Bank has cut the rate of interest to be paid to the banks placing their foreign currency deposits (FCDs) with SBP in July 1999.

The SBP announced on Wednesday that the banks placing foreign currency deposits with it in July would earn 4.65 and 4.80 per cent interest for one month and three months and 4.50 per cent on one-week.

In June—when SBP began accepting these deposits—the interest rates for one-month and three-month placement were fixed at 4.75 and 5.0 per cent. One-week placement was paid at 4.50 per cent.

Lenders agree on 3-year debt rescheduling

Foreign commercial lenders have agreed on three years debt rescheduling terms with the Government of Pakistan, reliable sources told.

Pakistan, after successfully rescheduling its $ 3.3 billion bilateral debt in February with the Paris Club of creditors, had requested its commercial creditors to reschedule $ 510 million short-term debt for four years.

But the banks mostly of Western origin were insisting for two years trade maintenance facility to replace these loans on a plea that the nature of debt is trade related which did not fall under the London Club rescheduling arrangements.

"The Government of Pakistan has received the term-sheet agreed by eight syndicate leaders who have agreed to extend the period of trade maintenance facility from two to three years," a source involved in the negotiations said.

Sources said the repayment of principal and interest will start from December 2000, extended up to December 2003, coinciding with the period agreed with the Paris Club of creditors.

The syndicate leaders, who were negotiating on behalf of 32 commercial lenders, include ABN AMRO Bank, Citibank, Chase Manhattan, Faysal Islamic Bank, Arab Banking Council, Arab Investment Company, ANZ Grindlays Bank and Dubau Islamic Bank.

Among these syndicates ABN AMRO Bank has the largest exposure of about $150 million while the rest have exposure not exceeding $100 million to different public sector companies.

Sources said the rate of interest was still being negotiated with State Bank of Pakistan. "But it would be between one to two per cent over LIBOR not more than that," a foreign banker said.

Pakistan in its last meeting held in Islamabad had provided its cash flow position to these banks, making it clear that it was not in a position to build a repayment capacity for a period as desired by these banks.

SNGPL accounts freeze sought

Tax officials on Wednesday sought National Bank of Pakistan (NBP) to freeze the accounts of Sui Northern Gas Pipelines Ltd (SNGPL) and to transfer the amount to the tax department for defaulting in payment of its taxes to the tune of Rsl3.775 million.

In a communication received by the NBP's Wapda House branch, the deputy commissioner (income/ wealth tax companies zone-1) has asked the managers of the bank to transfer the amount in the SNGPL accounts to the tax department for the recovery of taxes of Rsl3.755 million due from the company.

Govt to offload shares

The government is preparing a plan to sell off its share in those companies too where it does not have management control, as part of its broader privatization plan of stateowned petroleum companies, it is learnt.

As part of government's broader privatization plan Mari Gas Company Ltd. (MGCL); Pakistan Oil Fields (POL) and Attock Refinery, where its holding stands to 20 percent; 35 percent and about 40 percent respectively, are to be brought out for public offering, sources told.

IDBP, PIB deny CBR claim

Industrial Development Bank of Pakistan (IDBP) and Prudential Investment Bank (PIB) have refuted the reported claim of the CBR that they have failed to pay duty on account of guarantees furnished on behalf of a cement company and that their properties may be attached.

The IDBP said it has not defaulted on any matter whatsoever on payment of dues of duty on account of Saadi Cement (SCL).

IDBP said in a press release that SCL imported plant/machinery for its proposed unit in Hattar. Various duties/levies imposed by the Customs were disputed by SC and the matter was taken to the court. The court desired from SCL to furnish guarantees to secure applicable duties.

Re-employment after retirement

It has come to notice of the Establishment Division that certain government departments, in violation of the government rules, are re-employing retired government servants. In terms of the instructions government servants/employees of the Corporations, autonomous/semi-autonomous bodies who exercise their option for GHS/Early Retirement Benefits Scheme are not eligible for re-employment under government, public sector corporations and autonomous/semi-autonomous bodies etc for a period of at least five years in any form i.e. re-employment, contract appointment or consultancy contract etc.