Traditionally capital market in
Pakistan has been dominated by equities. Over the last five years companies enjoying good
cash flow have floated TFCs to finance their specific projects. Most of the public offers
were oversubscribed mainly due to higher rate of return in the declining interest
environment. TFCs worth Rs 3.5 billion are expected to be floated during the year 2000.
The forthcoming issues will carry a relatively lower rate of return. It is expected that
the TFCs need re-moduling after the Supreme Court judgement regarding Riba.
PAK - IRAN REFINERY
The Pak-Iran Refinery
project which had developed serious snags in the past and was revived through personal
intervention of the Chief Executive General Pervez Musharraf during his last month visit
to Tehran is again likely to suffer a serious setback.
LISTED
COMPANIES
Headed by a
professional chartered Accountant of repute, Mr. Zafar Hijazi, the Monitoring and
Enforcement Division of the Securities and Exchange Commission of Pakistan has played the
most vital role in protecting the interest of small shareholders by streamlining the
working of listed companies through close scrutiny of their accounts and taking them to
task on various accounts.
SUGAR
SUBSIDY
Pakistan should
not enter the export business this year unless careful estimation of the exact size of
production is made. Sugar industry had produced around 3.5 million tonnes of sugar last
year out of the crushing of 42.9 million tonnes of sugarcane. Sugar industry is not likely
to repeat its performance due to unfavourable weather conditions, no timely rains,
improper water supplies which consequently reduced the level of sucrose contains in the
crop.
