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Oct 18, 1999

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

SECP to take action against 110 companies

The Securities and Exchange Commission of Pakistan (SECP) has decided to initiate penalty proceedings against 110 listed companies for not filing their 6-monthly accounts with the commission during 1999.

The SECP sources revealed that following amendment in Section 246 of the Companies Ordinance, 1984, these companies would be facing penalty of Rs100,000 each.

They further revealed that 140 listed companies who committed delay in submitting their 6-monthly accounts, would also be penalized. Warning would be issued to companies who committed delay of seven or less days in filing their accounts with the commission.

In other cases, penalty proceedings are being initiated, said the sources.

They added that so far, more than 60 show-cause notices have been issued to listed companies for violating the time period stipulation for account-filing.

If these companies failed to prove that the violation in this respect was not wilful, penalty will be imposed, keeping in view their track record, they said.

Meanwhile, SECP has identified more than 60 industrial units for winding up and auction of property as these have defaulted on payment to shareholders.

The list of these 60 plus units would soon be made public, by the monitoring and inspection (MI) wing of SECP.

The MI wing said work on listing these units for winding up had been started two months ago.

The SECP had decided about four months ago to list those units which were regular defaulters and were constantly recording loss.

Bidding for Hazara Fertilisers

The bidding for Hazara Phosphate Fertilisers Limited will be held on November 25, 1999, the venue for which will be announced later on.

A Privatization Commission press release issued says: Privatization Commission has invited expression of interest (EOI) from local and international investors to participate in the privatization of Hazara Phosphate Fertilisers Limited (HPFL).

Growers concerned over fall in paddy price

Bumper paddy crop this year has brought little cheer to growers because of decline in the paddy price.

In the last one month, the Irri prices fell from Rs 260 to Rs 160 per 40 kg while the Basmati PK 385 prices dropped from Rs 320 to Rs 265 per 40 kg and are likely to fluctuate in future.

Agriculture department sources said the government had decided in principle to come up with a support price of Rs 425 per 40 kg for Super Basmati, Rs 350 for Basmati PK 385 and Rs 200 for Irri.

Growers, however, do not appreciate the support price mechanism and argue that the support price could work in the case of wheat bought in bulk by the PASSCO and food department. Since paddy, was sold in the open market as an exportable commodity, it must determine its price on the principles of free market economy, they said.

According to growers, last year's support price had no effect on the increased paddy prices. It was the foreign demand which had pushed its rates up.

EAPCL to start production next month

Engro Asahi Polymer & Chemicals Ltd (EAPCL) will start commercial production of PVC resin from next month, an official of the company said.

Addressing a seminar held here as part of a market development programme, senior EAPCL official Asad Omer said the company plans to make VCM, the raw material used to manufacture PVC resin, will also be produced in the country at a later stage.

EAPCL is the first world scale PVC resin facility, established in the country at Port Qasim, at a cost of $80 million and is a joint venture between Engro Chemical Pakistan Ltd. Asahi Glass Co Ltd and Mitsubishi Corporation of Japan. Engro Chemical Ltd holds 50% holding in the company, Asahi Glass 30% and Mitsubishi 20%.

Two GCP units offered for sale

Two units of Ghee Corporation of Pakistan (GCP) have been offered by the Privatization Commission for sale on 'as is where is basis'.

These units include Morafco Industries, Faisalabad and Universal Oil and Vegetable Ghee Mills Limited, Sheikhurpura. Information memorandums including the latest financial accounts (as on June 30,1999) and bidding documents will be available from PC offices from October 20,1999 on working days. Prospective bidders can visit the units on prior appointment with PC.

Big offshore oil, gas strikes expected on Mekran coast

The outgoing secretary, Ministry of Petroleum, expressed great hopes of big offshore strikes on Mekran coast where spudding for first of the three proposed exploratory wells was to begin.

Inaugurating the annual conference of petroleum engineers, Dr Gulfraz Ahmed said the government had intensified offshore exploration. The three wells, proposed in the next six months, are among the first offshore efforts along Mekran coast after 22 years, and after 10 years in Pakistani waters.

Pak oil output declines

Pakistan produced 19.971 million barrels oil during 1998-99, while in 1994-95 the production was 19.858 million barrels. The highest production figure reported in 1996-97 when the production touched the figure of 21.270 million barrels. During the year 1995-96, the production was 21.040 million barrels, while in 1997-98 it was 20.543 million barrels.

Ghazi Brotha project

The monitoring and surveillance cell of the Water and Power Development Authority (Wapda) has issued directions for a detailed inquiry into the use of sub-standard steel rods in the under-construction Ghazi Brotha project.

These directions were issued by the head of the cell Brig Humayun, on receipt of a report regarding the use of sub-standard steel rods in the civil works of Ghazi Brotha.