State Bank issues
guidelines to NBFIs
The State Bank has issued guidelines to Non-Bank Financial Institutions
(NBFIs) in case they need to write-off any irrecoverable loans/advances or mark up.
The NBFIs received a circular from the Central Bank's Banking
Supervision Department here Thursday which warned them that while rescheduling or
restructuring is permissible, it should not be done simply to break time frame and allow
unwarranted improvement in the classified category of loans.
EC to give 21m euro for electrification
European Commission has agreed to provide 21 million euro for
electrification of 450 villages in Multan region.
Official sources said here on Thursday that survey for villages had
been completed, while 70 out of 450 villages had so far been electrified and the remaining
work would be completed by December 2000.
During her visit to Multan Ms. Mavereal Bosom, chief technical advisor
who is leading a delegation of European Commission was informed of the progress on the
ongoing work in the village electrification project in Multan, Khanewal, Lodhran, Vehari,
Pakpattan, Sahiwal, Bahawalnagar, Bahawalpur, Rahimyarkhan, Rajanpur, Dera Ghazi Khan,
Leiah and Muzaffargarh.
Flat rate for farm power consumers restored
Prime Minister Nawaz Sharif here Tuesday announced that flat-rate
system for agricultural power consumers is being re-enforced from July this year.
The measure will save fifty percent cost to the agriculturists in
respect of power consumption.
Addressing a press conference at the Prime Minister House, he said, the
government had some time ago introduced meter system for tubewells, which had resulted in
levy of enormous financial load on agriculturists. Subsequently, decline in agricultural
produce was registered.
The matter was referred to the National Electric Power Regulatory
Authority (NEPRA) which has now given the award recommending reintroduction of flat rate
on agricultural power consumers.
This issue was also raised by a number of elected representatives at
the PML and Allied parties' meeting held earlier Tuesday with Prime Minister Nawaz Sharif
in the chair.
The Prime Minister said, it was imperative that agricultural production
is given a boost and the sector leads to a takeoff point by becoming competitive with
industrial sector, and more exports and foreign exchange earnings are ensured.
The prime minister recalled that the government had provided relief in
electricity tariff to the domestic consumers in spite of crisis faced by WAPDA. The
government took that decision in view of hardship of the people.
He said the government was fully aware of the need to provide
electricity at reasonable rates to both agriculture and industry. Pakistani-manufactured
goods cannot compete in the world market unless the cost of production is "within
limits and energy is one of the main components of this cost."
MCB to launch two new schemes
Partly privatized Muslim Commercial Bank has decided to launch at least
two new schemes to bring back into its coffers the bulk of Rsl3 billion raised through
Maala Maal prize scheme.
A senior MCB official said that the management would introduce two or
three new deposit raising schemes early next month to keep the money attracted through
Maala Maal. He told that one of the schemes would aim at raising short term deposits and
the other to attract long term deposits by allowing financing facilities against them. The
official said the schemes would offer reasonable return to the depositors without
disclosing the respective specific rates.
Banks to raise Rs60bn investment
Over 23 major banks, including nine foreign banks, operating in the
country have decided to raise an investment of Rs 60 billion for the Prime Minister's
Urban Transport Strategy designed by Small and Medium Enterprise Development Authority
(SMEDA), says a news release.
Disclosing this, SMEDA chairman Khawaja Helal Ahmad, told a SMEDA board
of directors meeting that the banking community had set up a committee to develop
modalities of financing under the strategy.
The committee, comprising representatives from ANZ Grindlays Bank, ABL
Hong Kong Shanghai Banking Corporation, ABN, Amro Bank, Citibank, HBL, MCB and NBP, will
soon finalize a "modus operandi" for launching the formal financing.
PC invites proposals for OGDCL advisorship
Privatization Commission on Saturday invited financial and technical
proposals from ten consortia interested to serve as financial adviser for Oil and Gas
Development Corporation Limited (OGDCL), an official announcement said.
All the ten consortia have been sent 'Request of Proposal Package'
(RPP), by the Privatization Commission of Pakistan to submit technical and financial
proposals latest by Aug 28,1999, it added.
SBP may allow NCBs to invest Rs8-12bn
The Central Bank has indicated that it may allow nationalized banks to
invest Rs 8-12 billion in prime minister's housing scheme during 1999-2000.
The central bank would not provide a separate credit line for this
scheme, rather it would be a part of overall private sector credit allocations, sources in
the banks said.
"This is the reason that this private sector allocation may be
much larger than last year's," said a source close to the central bank.
Bankers, however, said the financing for the housing sector would not
take-off immediately as this kind of financing picked up with the construction activity.
KESC seeking conversion of TFCs into equity
Karachi Electric Supply Corporation (KESC) has decided to ask the
federal government to allow conversion of Rs 11.5 billion worth of term finance
certificates (TFCs) into its equity.
KESC budget documents for fiscal 1999-2000 envisage a number of
measures being considered by the cash-strapped power utility which incurred pretax losses
of Rs 6.4 billion to cut financial deficit.
Conversion of Rs 11.5 billion worth of TFCs into equity comes second on
the list of these measures after proposed waiver of the development surcharge on furnace
oil at Rs 1500 per tonne.