Nov 13 -
National savings rise to 13.4pc
The national savings rose to 13.4 per cent of GNP (gross
national product) from 11.2 per cent a year earlier.
According to the State Bank annual report for 1999-2000, this
happened due to an increase of 28.5 per cent in national savings at the current
market prices during the year against a fall of 17.3 per cent previous year.
The report released on Monday said that the improvement in
savings was mainly attributable "to deceleration both in the growth of
consumption expenditure and the rate of inflation."
Consumption expenditure registered a growth of 9.7 per cent
in 1999-00 compared with 13 per cent a year earlier. The consumer inflation fell
to 3.6 per cent from 5.7 per cent in 1998-99.
"Better performance of the corporate sector also
supported the rise in private savings," that grew by 13.8 per cent from
10.4 per cent in 1998-99.
"Had net factor income from abroad not declined by 48
per cent in 1999-00 the increase in savings would have been much higher,"
notes the report. The report says that national savings financed 88 per cent of
gross total investment in the last fiscal year up from 74.9 per cent a year ago.
The resource gap (the difference between savings and investment rates) of 12 per
cent in 1999-00 was financed by foreign savings or net inflows of external
capital. The report says that a pronounced drop of 48.1 per cent in the net
inflow of external capital was observed in 1999-00 in contrast with an increase
of 33 per cent a year earlier.
Gross fixed investment at current prices has been estimated
at Rs421.9 billion in 1999-00 depicting an increase of 9.5 per cent as compared
to the decline of 4.3 per cent in the preceding year. Here, whilst the ratio of
gross fixed investment to GNP merely increased from 13.4 per cent in 1998-99 to
13.5 per cent in 1999-00, private fixed investment rose by 9.4 per cent to
Rs252.9 billion against a decline of 11.6 billion a year ago.
ADB to give $150m loan
The Asian Development Bank has decided to provide a
$150-million soft-term loan to the Micro-Finance Bank (MFB) which will be
extended to half a million poor households.
According to an official announcement on Saturday, the most
obvious manifestation of poverty is the low household income. The lack of access
to affordable financial services in the formal financial sector limits
opportunities to the poor to augment their income, keeping them in debt and
The government has, therefore, adopted a policy to develop a
micro-finance system that can provide the poor with an access to affordable and
sustainable financial service.
The key aspect of the policy is to provide finances to
promote income- earning opportunities to the poor, particularly women.
LoI received for $600m IMF loan
The government on Saturday received a Letter of Intent from
the IMF to secure the much sought after $600 million loan under Stand-by
"I have received the LoI which is now being signed and
sent back to IMF for circulation among the members of the board of directors of
the Fund", said the minister for finance Shaukat Aziz.
He said that the government was now hopeful to get a $3.5
billion joint package from the IMF, World Bank, the Asian Development Bank and
the Paris Club.
National Bank President S. Ali Raza said on Wednesday that
NBP would be made a truly commercial bank — both in terms of its working and
outlook by June 2001 at an estimated cost of Rs 400-500 million.
Caltex raises furnace oil prices
Caltex Pakistan has decided to raise the furnace oil prices
by Rs301 per metric ton to Rs13,508 from Rs13,207. The new price will be
effective from November 10, sources in Caltex Pakistan told on Wednesday. They
said the decision had been taken following price increase made by the local
refineries on Tuesday. An official at the National Refinery Limited (NRL) said
the company had increased the fuel oil prices to Rs11,442 pmt from Rs11,180 pmt.
Berger Paints Pakistan Limited announced the financial
figures for the year ended June 30, 2000, posting a growth of 73 per cent in
pretax profit to Rs48.7 million, from a year ago pretax earnings at Rs28.2
million. After tax profit jumped 95.9 per cent to Rs33.1 million, from Rs16.9
million the previous year.
Govt borrows Rs135bn
The present tight monetary policy of the State Bank has its
roots in an excessive government borrowing from the central bank in the last
The government borrowed Rs135 billion in fiscal 1999-00 that
created an imbalance in the interest rates structure of treasury bills. Senior
bankers say by tightening its monetary policy last month SBP has tried to remove
The State Bank annual report released on Monday discloses
that in 1999-00 the federal government borrowed from SBP Rs 135 billion i.e. 15
times more than its 1998-99 borrowing of around Rs 9 billion. But at the same
time it retired Rs 95 billion of commercial bank credit that kept the net
borrowing for budgetary support at a level of Rs40 billion.
Rs22 billion profit
The State Bank earned a net profit of Rs22 billion in fiscal
1999-00, according to the balance sheet of the central bank released as part of
its annual report.
NIT, ICP privatization
Privatization Commission Chairman, Altaf M. Saleem, on Monday
said that plans are on the cards to sell the rights to operate the National
Investment Trust (NIT) and Investment Corporation of Pakistan (ICP) without
selling the assets themselves.
The Cherat Papersack Limited announced financial results for
the year ended June 2000. Net sales were shown to have improved 4.3 per cent to
Rs 615.6 million from a year ago sales at Rs 590.2 million. The benefit did not,
however, travel down to the bottomline, as pretax profit stood down by 13 per
cent to Rs 74.2 million, from Rs 85.3 million and after tax profit declined 13.8
per cent to Rs 71.1 million, from Rs 82.5 million the previous year.