Industrial growth in
The Large Scale Manufacturing (LSM) sector is likely to register 3.5
per cent growth during the fiscal year 1998-99, after estimated at 2.7 per cent in first
This was informed during the meeting of the 'Subject Monitoring'
chaired by Deputy Chairman Planning Commission Ahsan Iqbal.
The meeting reviewed performance of the different sectors of the
economy and discussed means to ensure that economic targets for the current fiscal year
On the performance of the Industrial sector, it was informed that
growth rate of LSM sector during July-May 1998-99 is recorded at 3.2 per cent and can be
compared favourably with 2.7 per cent growth rate in first nine months.
The growth rate may increase further in June, it exceeds 3.2 per cent.
The meeting was told that LSM output over the last four months have shown growth in excess
of 5 per cent. Looking at the trend, it is expected that LSM growth will rise to 3.5 per
A number of important industries such as beverages, vegetable ghee,
cotton fabrics, cigrattes, fertilizers, tyres and tubes, automobiles and consumer durable
have shown high growth rates during 1998-99.
Worms attack cotton crop
Pest scouting and agriculture department have warned the cotton growers
that attacks of spoked worm have been reported in many areas which has surpassed the
economic injury threshold.
The farmers were advised to organize pest scouting twice a week across
their fields if they found the damages beyond economic injury level. They should
immediately spray their crop in consultation with the experts of the agriculture
Sources said that the grasshoppers had also attacked a few fields a fed
where losses may have been beyond economic injury level. They said that pest scouting was
intensified in Muzaffargarh, Leiah, Kotadu, Alipur, Jatoi, Vehari, Sahiwal, Bahawalpur
Rahimyarkhan, Multan, Shujabad, Jalalpur Pirwala, Lodhran, Kehror Pucca, Duniyapur,
Mailsi, Arifwala, Burewala, Kabirwala, Khanewal and MianChunnu. It was noticed that less
than 40 per cent fields were partly affected by spotted worms and grasshoppers.
Plan to promote cottage industries
The Punjab government has prepared an integrated plan for the promotion
of small and cottage industries aimed at bringing about rapid industrial progress in the
province in particular and the country in general.
The government has taken this decision to enlarge the scope of
employment by promoting the cottage industries in Punjab.
Sale of IDBP units
Industrial Development Bank of Pakistan (IDBP) has received enquiries
from over 150 domestic and foreign parties for 97 industrial units indentified by the bank
"With the help of our missions abroad we have attracted foreign
buyers also," said IDBP's Managing Director, Javed Sadiq.
He said the local banking courts have already issued decrees in favour
of the bank.
About two months back, IDBP had announced auction/ disinvestment of 97
units which were declared sick or owners of these companies failed to pay back the
Task force working on industrial plan
The federal ministry of industries is formulating an industrial plan to
escalate the process of industrialization in the country and remove the bottlenecks in the
way of local and foreign investment.
This was stated by federal industries secretary Abu Shamim Ariff while
addressing Lahore Chamber of Commerce and Industry (LCCI) members here on Tuesday. LCCI
president Pervez Hanif welcomed the guest.
Ariff said a task force is working on the formulation of the plan and
its blueprint will be circulated among chambers and businessmen to elicit the proposals
and suggestions of the private sector to improve upon it.
SECP starts scrutiny of companies' record
Records of about 750 public limited companies are being scrutinised to
determine whether they have applied the tools as required under the law for maintaining
the records on performance and dividends payment to shareholders.
The long overdue measures are being taken in the backdrop of the latest
tax incentive allowed to these companies by the government on payment of dividends, was
informed by officials of Securities and Exchange Commission of Pakistan
SECP commissioner, Zafarul Haq Majazi explained that these measures are
being taken at an unprecedented speed, after grant of 10% exemption from tax on reserves
in case of dividends paid to shareholders from at least 40% of the companies' profits.
He said a large number of defaulting companies which did not pay the
shareholders dividends, have been categorized into three disciplines: those facing, or on
the verge of, bankruptcy; those afflicted by the internal mismanagement; and those
profiting but not paying dividends.
He added that 109 companies have been issued notices under Sec 265 of
the Companies Ordinance, '84. Another 28 have been put on inspection roll, of which 23
have promised to pay the due dividends.
Texfile-being the largest sector of public limited companies, there are
33 leasing companies, and 50 modarba companies, records of all being scanned to determine
whether they are applying the tools essential for transparency, good governance,
efficiency in monitoring investment trends, appointment of managers in democratic way, and
induction of the relevant, updated technological tools and methods for modernization.
Commissioner Majazi said all stake holders in the limited companies
need to be vigilant to ensure that the investments are secured in the best possible ways
and went on to explain that through regular monitoring and auditing of the financial
operations, the SECP would ensure that no defaulting persons or groups are allowed to
remain in the stocks business.