Dec 18 -
SBP buys $45-50m from banks
The State Bank on Thursday purchased $45-$50 million
in one-month swap with local currency from banks to keep the inter-bank
market liquid and to cut its net domestic assets.
Bankers said SBP swapped $45-$50 million at 30 paisa
premium over the spot price. The central bank had also swapped about
$10- $15 million on Wednesday and is expected to end up buying $250-
$300 million by the end of this month. SBP made no comments on the
Bankers said money market remained liquid with
overnight call rates oscillating between 4-5 per cent despite an outflow
of around Rs 5 billion from the system. The outflow was on account of
the settlement of the latest auction of Pakistan Investment Bonds and
treasury bills. Bankers said the market was surplus by Rs 5-6 billion at
the end of the day.
The liquid conditions of the rupee market coupled
with higher demand for dollars on corporate and official debt payments
kept the local currency under pressure for the third consecutive day.
The rupee fell to 58.25 to a dollar in the inter-bank market on Thursday
against the previous close of 58.19. Bankers said the rupee touched an
intra-day low of 58.40 but some state-run banks supported it by selling
Corporate and official debt payments normally rise in
December because of the year-end. Banks demand for rupee funds also rise
at the same time because of larger withdrawals of deposits by the
corporates. This time the year-end has coincided with the holy month of
Ramazan that has paced up deposit withdrawals. Deposit withdrawals go up
in Ramazan as both companies and individuals need more money for meeting
pre-Eid expenses. This would have added to the liquidity crunch the
banks were facing since early October had the State Bank not injected
more than Rs 15 billion in the market earlier this month.
Banks plunged into a liquidity crisis in October
after the SBP raised their cash reserves from five to seven per cent and
also hiked its repo rate by one per cent to 13 per cent to stabilize the
Asian Development Bank okays $150m loan
The Asian Development Bank (ADB) on Wednesday
approved assistance of $150 million to provide support to Pakistan's
The decision will provide affordable financial and
social services to a large number of poor, especially women as a result
of two loans totalling $150 million approved by the ADB.
The ADB is providing two concessional loans. One is a
$70 million policy loan to support a reform programme for the
microfinance sector. The other is $80 million investment loan to provide
microfinance service to the poor and for institutional strengthening.
IDB to release $80m loan
The Islamic Development Bank (IDB) is expected to
release a loan of $80 million next week on the basis of guarantees
offered by the governments of Saudi Arabia, Qatar and the UAE.
The IDB had asked the government of Pakistan to
arrange these guarantees for the release of this tranche, sources said.
The tranche is part of a $413 million in loans from
IDB, which was already in the pipeline at the time of concluding the
stand by arrangement with the International Monetary Fund (IMF).
The government is reported to have already availed
itself of a tranche of $45 million from the Citibank, a fortnight ago,
as a commercial loan, at 3.25 per cent plus LIBOR.
The $413 million IDB loan has been split into the
following tranches: $50 million with two-year maturity and $80 million
with a six-month rollover basis.
Citibank, NBP buy 64pc PIBs
State-run National Bank turned out to be the most
active primary dealers of the SBP at the first auction of long-term
Pakistan Investment Bonds on Tuesday. Citibank chased it closely.
Bankers said NBP purchased Rs1.470 billion worth of
PIBs or 33 per cent of the total sale of Rs4.434 billion followed by
Citibank that bought Rs1.377 billion worth of bonds or 31 per cent of
They said Standard Chartered purchased Rs 700 million
worth of bonds (16pc); Union Bank and Habib Bank Rs 300 million and Rs
320 million (7 per cent each); ABN Amro Rs 217 million (5pc) and
American Express Rs 50 million or about one per cent of the total sale.
The State Bank on Wednesday raised short term debt
worth Rs629.6 million for the government through sale of treasury bills.
Bankers said SBP sold Rs400 million worth of
six-monthly TBs and Rs229.6 million worth of one-year TBs at a maximum
yield of 10.95 per cent and 11.48 per cent respectively.
Dividend on mutual funds
The Board of Directors of Investment Corporation of
Pakistan (ICP), which met under the chairmanship of its Managing
Director, Istaqbal Mehdi, approved dividends on its Mutual Funds for the
year ended June 30, 2000.
The Board declared final dividend on 15 out of a
total of 26 mutual funds with highest dividend of 50 per cent declared
on 9th Mutual Fund followed by 30 per cent on its 4th Mutual Fund.
Dadex posted pretax profit for the year ended June
30, 2000, amounting to Rs78.1 million, representing 16.6 per cent
improvement year-on-year. After tax profit was up 10.5 per cent to
Rs66.1 million, from Rs59.8 million the previous year. Earning per share
worked out at Rs6.14. The board has recommended cash dividend at Rs4 per
share — same as last year.
For the latest year ended June 30, 2000, Ferozsons
posted 42 per cent increase in profit to Rs31.0 million, from a year ago
profit amounting to Rs21.9 million. Profit after tax showed growth of
40.2 per cent to Rs18.6 million, from Rs13.2 million. On the 3.5329
million outstanding shares, after tax profit represented earning per
share at Rs 5.25.
Telecard Limited — the payphone company — posted
nearly 600 per cent increase in after tax profit to Rs27 million for the
year ended June 30, 2000, as compared to previous year's after-tax
profit at Rs4.1 million. The improvement followed sales revenue at
Rs543.4 million, which was reported to be about twice the earlier year's
revenue at Rs284.3 million.