SECP notifies draft rules
Securities & Exchange Commission of Pakistan (SECP) notified draft
rules for the creation of different kinds of shares in addition to ordinary (equity)
shares in listed companies for eliciting public opinion.
At present, explained Abdul Rehman Qureshi, SECP Commissioner (Company
Law), the companies can issue only equity shares in which the minority shareholders make
investment on the basis of profit/ loss and have voting rights in the general meeting of a
The new rules are in the nature of an enabling provision to allow the
companies to float shares offering different options and thus to attract investment,
particularly foreign investment, on the basis of fixed rate of return with or without
EU terms oil, gas sector sell-off move timely
The heads of commercial and trade sections of the European Union
missions in Islamabad have seen the proposed privatization of oil and gas sector as timely
and positive in view of the present market trend. They also lauded the government's
efforts for improving the investor's confidence through the proposed privatisation law.
During a presentation regarding the Privatisation Programme of
Pakistan, the Chairman, Privatization Commission, Altaf M. Saleem, who was invited by the
EU representatives here on Thursday said that Pakistan has embarked upon an investment
friendly privatization programme and steps were under way to boost the investors
confidence through the introduction of privatization law, which was being processed by the
Ministry of Law.
New BEL MD
The State Bank appointed board of directors in the Bankers Equity
Limited has named Asif Jamil as the company's new managing director in place of
Majeeduddin Khan, who has resigned.
Govt revives CCOP
The government revived the Cabinet Committee on Privatization (CCOP),
to accelerate the privatization process.
Chief Executive Gen Pervez Musharraf gave the approval for replacing
the Privatization Board of Pakistan and the Committee of the Privatization Board of
Pakistan with Cabinet Committee on Privatization (CCOP).
The Cabinet Division also issued the notification for a 9-member CCOP
to be headed by the Minister for Finance, Shaukat Aziz.
Federal secretary commerce, Mirza Qamar Baig, has said that the
commercial courts in Karachi and Lahore will start functioning soon and as a first step
the names have been sent to the law ministry for approval.
New rules for CMA
The State Bank of Pakistan announced new rules to operate the Cash
Management Account (CMA) by the investment banks.
According to a circular of State Bank, all investment banks have been
advised to maintain individual customerwise records for all amounts received by it under
the CMA from its customers and for all transactions entered into for them on their behalf.
All investment bank will execute proper agreements with its customers
for availing of service under the CMA, the circular said.
SBP chief rules out devaluation
The State Bank Governor, Dr Ishrat Hussain, on Monday said that there
was no reason to devalue the Pakistani currency in view of the current low inflation rate
of three per cent.
Speaking to businessmen here at the Lahore Chamber of Commerce and
Industry (LCCI), Dr Hussain said the devaluation of the rupee could push up the inflation.
Responding to a point raised by an exporter that the Pakistani exports
of aroumd $2 billion to the European countries were suffering due to depreciation in
European currencies against dollar, which demanded readjustment of the value of the rupee,
he sympathized with the exporters but refused to oblige them because it could trigger
serious problems for the economy.
He also rejected the idea of putting restrictions on imports to improve
the balance of payments situation, saying it would raise inflation, leading to
depreciation in the value of the currency.
Dr Hussain said: "We need to reduce consumption of (the imported
goods), grow more and increase public and private investments for curtailing our foreign
He said Pakistan needed about $2-2.5 billion every year to meet its
obligations and servicing debt without rescheduling (and seeking fresh loans from abroad).
He said the amount could be raised by increasing exports by $1 billion, remittances of
Pakistanis working overseas by $800 million and doubling direct foreign investment to $1.1
billion or so.
The central bank chief said: "We have to have a national plan
developed by our own people for reducing debt burden."
'China asks Clinton not to skip Pakistan'
China has reportedly advised the United States to include Pakistan in
President Bill Clinton's rescheduled South Asian tour next month, Times of India reported.
Quoting diplomatic sources the paper said: "China has reportedly
told deputy secretary of state Strobe Talbott that Clinton should visit Pakistan if the US
wants to see an end to tension in South Asia".
Ishrat calls for internet, online banking system
LAHORE: State Bank Governor Dr. Ishrat Hussain has urged the commercial
banks to go for internet and online banking system in order to ensure efficient and smooth
payment system. He said that this would not only help in documentation of the transactions
but also reduce the expenditure incurred on the exercise.
He was addressing the inaugural ceremony of the automated cheque
clearing system introduced by the National Institutional Facilitation Technologies (NIFT)
(Pvt) Limited here on Tuesday. NIFT has already launched this service successfully in
The facility is a consortium of six major banks National Bank of
Pakistan, Habib Bank Limited, Muslim Commercial Bank, United Bank Limited, Allied Bank
Limited, First Women Bank and the private sector.