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Dec 13, 1999

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

QSC agrees to security deposit waiver

The Quota Supervisory Council (QSC) has agreed to readymade garments proposal that security deposits should be waived for exporters who submit bank guarantees for reserving quotas on first come first served basis.

The QSC also agreed that part of the earning made through quota auction by the government should be reserved for meeting expenses of technical training institutes of the sector and other export related activities.

The proposals will be put up to the Ministry of Commerce for final approval.

The agreement came during exchange of views on the quota policy for 2000 between Abdul Razzak Teli, chairman QSC and members of Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) at a dinner meeting on Tuesday.

Contracts for 703,800 cotton bales

Trading Corporation of Pakistan (TCP) has made contracts for procurement of 703,800 bales of Afzal and other quality lint cotton from ginners by December 07,1999 throughout the country.

According to figures received from TCP on Wednesday out of total contracts made with ginners 71,100 cotton bales so far were delivered in corporation's godowns in Karachi and Multan.

TCP said it procured 632,400 bales of MNH/Afzal and other types lint from Punjab, 53,900 bales of K-68/1414 and other types from upper Sindh and 12,500 bales of Niab/Nemis and other types from lower Sindh.

TCP is paying Rs. 1,500 per maund for Afzal grade lint cotton and paying premium and discount for the superior and inferior quality cotton respectively.

'Small farmers be exempted from taxes'

All taxes including farm tax, revenue and abiana (water charges) should not be collected from farmers who own less than 25 acres of the irrigated land.

This call was given at a Kisan convention here on Wednesday with Chaudhry Manzoor Ahmad in the chair. The conference which was attended by hundreds of farmers from the surrounding villages of Toba Tek Singh and Faisalabad districts passed a number of resolutions. A resolution demanded abolition of feudalism for the unhindered development of the country.

34 per cent of listed cos declare dividend

A total of 382 companies, which measured to nearly a half of all the 773 listed companies had posted profit for the year 1998, but only 266 companies or 34 per cent declared dividends, the Karachi Stock Exchange (KSE) annual report 1999, revealed.

The report indicated that the figures were up to end-October 1999 by which date 70 companies had not announced results and eight others were yet to begin their commercial operations. Compared to the earlier year, however, the overall performance of listed companies was gloomier, both in respect of declaration of profit and payment of dividends.

A company performance table appended to the KSE 1999 annual report showed that the leasing sector was the star performer where 29 of the 32 listed companies (91 per cent) returned profit during 1998 and 20 of those companies (63 per cent) declared dividends.

Fuel & Energy sector was also front runner with 22 (79 per cent) of the 28 companies reporting profit and 20 (71 per cent) of them distributing dividends to their shareholders.

The low profile paper & board sector also showed healthier statistics with 11 (73 per cent) of the total 15 quoted scrips in the black and eight of them announcing payouts.

The performance of insurance companies almost matched that of the investment companies/ securities companies/banks. Both sectors carried 39 companies under their fold, of which 25 posted profit and 15 of them declared dividends.

Of the 39 mutual funds, 23 reported profit for 1998 and all but one declared dividends. Twenty five of the 48 modaraba companies reported profit but only one-half of them announced payouts for the certificate holders.

Of the 22 companies quoted on the food & allied sector, 25 companies on the auto & allied engineering and 41 companies on the chemical & pharmaceutical sector, 13, 15 and 25 companies, measuring to around 60 per cent in each case reported earnings, but 12, 10 and 23 companies or 55,40 and 56 per cent of them, declared payouts.

Default cases discussed

The loan default cases of Rs 100 million and above were deliberated upon by the senior officials of Attorney General's Office and loan recovery department officials of various banks at 5 Corps Monday, official sources said.

The meeting evaluated in detail the legal aspects of the loans extended by banks to the defaulters.

The loan recovery departments were given 9-page performa asking them to give details of the loan amount, the period in which the loan was extended, the project detail, the head of the bank and his second in command in the bank, the whereabouts of the company supposed to be set up under the loan, and details of collaterals.

Pakistan, Bahrain to further strengthen ties

Chief Executive General Pervez Musharraf held wide-ranging talks on bilateral relations with the Amir of Bahrain Shaikh Hamad bin Isa Al-Khalifa at the Shaikh Hamad Palace here on Wednesday afternoon and the two leaders agreed to further cement their existing bonds of friendship.

The Amir of Bahrain extended full support to General Musharraf and hoped Pakistan would progress under his able leadership. He invited the chief executive to visit Bahrain again. The Amir was also invited by the chief executive to pay a visit to Pakistan.

Prime Minister of Bahrain Shaikh Khalifa bin Salman AlKhalifa was also present on the occasion. Foreign Minister Abdul Sattar assisted the Chief Executive at the talks spreading over 30 minutes.

China offers technology

Quite a few Chinese companies have shown keen interest in joint ventures with the business community of Sialkot with a view to transferring technology and latest machinery from China to Pakistan, especially Sialkot. "China can help the Sialkot business community in the provision of the latest technology for the use of surgical, sports goods, leather garments manufacturing," said the leader of the Chinese trade delegation. The team was led by Mr Lau Schulan of Qing Qi which visited various industries in Sialkot.