Aug 07 - 13, 2000
Asian Bank to
provide $150m loan
A high-level meeting chaired by Chief Executive Gen Pervez Musharraf on
Monday was told that the Asian Development Bank (ADB) was expected to offer $150m for
micro finance sector including the recently established Micro Finance Bank
"The government has provided Rs one billion equity for the MFB
while $150m were likely to be extended by the ADB for the micro finance sector as well as
for the Bank", said Additional Secretary and the Spokesman of Ministry of Finance, Dr
Waqar Masood Khan.
He told the meeting was informed that the MFB will be the most
important instrument for the poverty reduction strategy. He said that the ADB was also
expected to provide technically assistance to remove poverty from the country.
Chief Executive appreciated the efforts put in by all concerned to
conceive and implement a strategy aimed at assisting the poor becoming masters of their
own destiny. He said the government was committed to the implementation of a policy
supported by concrete financial measures, so that any poor person prepared to work for his
own betterment and uplift does not face problems of raising or arranging capital and
credit. He said the key to the success of the MFB was selection of persons on merit who
were prepared to devote time and energy for the betterment of the people and not simply
The chief executive directed the participants, including the Finance
Minister, Shaukat Aziz, Secretary General finance, Moeen Afzal and senior officials of the
Micro-Credit Bank to focus on the less developed areas and take steps to encourage spirit
of participation among the people who would benefit from the scheme. He said the
Micro-Credit Bank was not merely a bank by another name but an important partner of the
people in projects for their uplift and wellbeing.
Alternative to IMF loans ready: SBP chief
State Bank on Tuesday said it had prepared an alternative plan if the
International Monetary Fund (IMF) refuses to approve loans following a crucial post-budget
"If we cannot make a deal with the IMF, we have prepared an
alternative to cope with the situation," State Bank Governor Ishrat Husain told,
without elaborating on the details of the plan.
"We are not going to disclose our alternative plan till finalizing
the talks with the IMF," he said.
Pakistan hopes to get up to 2.5 billion dollars in loans from the IMF
to help pay off massive debt servicing bill.
Pakistan needs about six billion dollars to cover interest on its debts
due in 2001 but its forex reserves are hovering around 1.1 billion dollars.
FDI posts $15m growth
The inflow of Foreign Direct Investment recorded a notable increase of
$15 million during the last month of the fiscal 1999-2000 when compared with the preceding
The country received a total of $46.2 million of FDI during June
1999-2000 as against $31.2 million of FDI inflow during May 1999-2000, according to the
SBP sources. The country received a total private investment of $543.4 million during the
fiscal 1999-2000 as the FDI drew a lion's share of $469.9 million. The portfolio
investment during this period was to the tune of $73.5 million.
The FDI of $169 million from the United Kingdom topped the investment
inflow during the last fiscal followed by the United States with $166.9 million. The other
notable FDI inflows included $28.6 million from Saudi Arabia, $17.7 million from Japan,
$10.7 million from Netherlands, $10.5 million from Germany, $9.3 million from Korea, $5.7
million from UAE and $1.6 million from France.
The US dollar has shed 40 paisa to a rupee in the inter-bank market in
past one week mainly due to increased inflow of export proceeds. On July 27 the
greenback had risen to Rs53.65 forcing the State Bank to intervene in the market. On Aug 3
it slipped to Rs53.25 after testing different levels within six working days.
In a sharp contrast to this the dollar gained 10 paisa in the kerb
market during this period: it rose from Rs55.80 on July 27 to Rs55.90 on Aug 3.
Gold prices move up
Prices of gold have risen sharply in Karachi and Lahore respectively
after the removal of the cap on inter-bank exchange rates on July 20.
On 20th July 24 caret gold was selling for Rs4980 per 10 gm in Karachi
and for Rs5040 in Lahore: on Aug 2 the rates rose to Rs5050 and Rs5075 respectively.
ICI Pakistan Limited swung back to an operating profit of Rs408.4
million in the first six months (Jan-June 2000), from an operating loss of Rs966.1 million
in the corresponding period of the previous year.
SBP cuts yield
The State Bank on Monday announced slashing of 15-20 basis points in
the rates of return it would offer on foreign currency deposits of banks in August. The
SBP said it would give 4.60 and 4.30 per cent return on three-month and one-month deposits
instead of 4.80 and 4.50 per cent respectively. It said one-week deposits would attract
4.10 per cent return instead of 4.25 per cent.
Badla rates edge up
After remaining pegged at 12.6 per cent in the preceding two weeks, the
average 'badla' rates on the carry forward business at Karachi stock market, edged higher
to 13.3 per cent for the week that closed on Friday July 28.
CDC cuts charges
The Board of Directors of Central Depository Company of Pakistan Ltd
has drastically reduced the charges from 25 to 100% for investors, issuers and
participants to provide relief to customers and to stimulate business activity in capital
According to the revised rates for Investor Account Services, annual
fee has been reduced from Rs3000 to Rs1000 (66.66 %) for individual and from Rs5000 to
Rs2000 (60 %) for other than individual.
US firm invests $10m
An American firm has introduced e-commerce network in Pakistan with an
initial investment of $10m in alliance with a Pakistani company.