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August 01, 1999

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

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.