Rural women to get small
The federal government has approved a plan to disburse small loans
among women in backward districts through the Regional Development Finance Corporation.
The loan amount will range between Rs50,000 to Rs200,000 for a period
of three years on 10 per cent mark-up.
The RDFC, according to official sources, has been asked to work out a
detailed plan for disbursing credit in consultation with provincial governments and
chambers of commerce and industry of different areas.
Govt borrows Rs2.276bn thru T-bills
The government on Wednesday borrowed Rs 2.276 billion from a surplus
interbank money market through the sale of one-year treasury bills.
Senior bankers said the State Bank raised the amount for the
They said the auction of T-bills had generated total bids worth Rs
12.476 billion of which bids worth Rs 2.276 billion for one-year T-bills was accepted at a
maximum yield of 10.49 per cent.
IDA to provide $90m for poverty alleviation
The International Development Agency has signed an agreement with
Pakistan for contributing $90 million towards the establishment of Pakistan Poverty
Alleviation Fund (PPAF), to which Islamabad is contributing $10 million. Another $7
million would come from the participating communities.
Economic Affairs Division Secretary Zaheer Sajjad and World Bank
Resident Chief Sadiq Ahmed signed the agreement. Finance Minister Ishaq Dar and visiting
World Bank Vice-President Ms Meiko Nishimizu were present on the occasion.
London Club reschedules $877.3m debt: Dar
The London Club has eventually rescheduled Pakistan's commercial loans
amounting to 877.30 minion dollars, envisaging extension of repayment dates of these loans
by two to three years with interest rates ranging from LIBOR plus 1 per cent to 1.5 per
"We have successfully concluded negotiations with the commercial
creditors of the London Club for restructuring our remaining 877.30 million dollar loans
on lower mark-up rate, declared the minister for finance and commerce.
The finance minister said the London Club has agreed that no payment of
principal amount will be made till Dec 31, 2000 as was done by the Paris Club for
rescheduling 3.3 billion dollar debts.
He pointed out that 877.3 million dollar loans included Trade
Maintenance Facility of 512.30 million dollars, National Bank of Pakistan's Rolled Over
Loans of 265 million dollars and Non-Trade Facility of 100 million dollars for National
Bank of Pakistan (NBP).
Dar said two loans of Trade Maintenance Facility (TMF) amounting to
512.30 million dollars and NBP's Rolled Over Loans of 265 million dollars (total 777.30
million dollar) had been clubbed together because their repayment period and the interest
rates were the same. Interest will be paid quarterly on these loans according to the
following time-table: LIBOR plus 1 per cent up to June 30, 2000, LIBOR plus 1.25 per cent
from July 1, 2000 up to June 30, 2001 and LIBOR plus 1.50 per cent from July 1,2001-up to
June 30, 2002.
He said that Trade Maintenance Facility (TMF) of 512.30 million dollars
had been offered by nine foreign banks and syndicates. And according to the details, M/S
TAIC extended 50.50 million dollars to Pakistan State Oil (PSO), ANZ Grindlays 27.70
million dollars to PSO, ABC Islamic Bank (E.C) 39.10 million dollars to PSO,
Chase/Indosuez, 40 million dollar s to PSO, ABN AMRO Bank N.V 150 million dollars to
ministry of petroleum, Dubai Islamic Bank 25 million dollars to ministry of petroleum,
Faysal Islamic Bank of Bahrain E.C. 100 million dollars to ministry of petroleum, ANZ
Grindlays 30 million dollars to National Refinery Limited and Citibank offered 50 million
dollars to Rice Export Corporation of Pakistan.
Pakistan bond firmer on debt accord
Pakistan's Eurobonds were firmer in London trading on Tuesday following
news that Pakistan had reached agreement with private lenders over rescheduling $877.3
million of commercial debt.
Bond traders said the agreement demonstrated Pakistan's eagerness to
differentiate between London Club commercial debt and its sovereign Eurobond debt, making
the prospect of a Eurobond default less likely.
Wapda losing Rsl8bn a month
Water and Power Development Authority has been losing an estimated Rs
18 billion a month on account of transmission and distribution losses which have been shot
up to over 26 per cent, said Wapda's annual report.
According to the 1997-98 report, Wapda has been losing 3,000 mw due to
the dilapidated distribution network system and power theft. Each percentage loss,
according to a study means a loss of one billion rupees in revenue.
SNGPL pre-tax profit rises
The sales of Sui Northern Gas Pipelines (SNGPL) Ltd grew slightly in
1998 by 150,269 hundred cubic meters (hm3) to 65,238,294 hm3 from 65,088,025 hm3 during
1997, says its annual report for the year ended June 30, 1998.
The company's pre-tax profits rose by Rs68.286 million to Rs713.084
million during 1998 despite the fact that the borrowing costs incurred were higher by
Rs904.644 million while earning per share (EPS) stood at Rsl.117.
State Bank withdraws cut in
The State Bank on Saturday withdrew the 2 per cent cut in statutory
liquid reserves (SLR) and 1.5 per cent cut in cash reserves (CR) of the banks announced on
May 18, 1999the day the rupee was floated.
The SBP issued two circulars which said that from July 12 the banks
would maintain SLR at 15 per cent and CR at 5 per cent of total demand and time
liabilities instead of 13 and 3.5 per cent respectively.