May 07 -
Private sector pays $38.2mn on eurobond maturity
A leading local corporate on Thursday paid $38.2 million to
international investors on maturity of its eurobond launched in 1994.
"By the grace of Allah, we made the final payment of
$38.2 million," Dewan Mustafa of Dewan group of companies told.
The group had launched the bond to finance setting up of the
second Dewan Salman Fibre making plant in the NWFP.
The first plant set up earlier was capable of producing 180
tonnes of fibre per day. The establishment of the second one doubled this
Bankers said the Citibank made the payment on behalf of Dewan
Dewan Salman eurobond was the only eurobond launched by a
Pakistani corporate and it traded successfully on London and Luxembourg stock
International investors found the convertible bond quite
attractive as it offered an annual return of around five per cent.
Dewan group had launched $45 million worth of bonds out of
which $7.7 million were converted into equity of the project in 1994 leaving
$37.3 million liability with Dewan group. The amount rose to $38.2 billion on
maturity with the accumulation of interest.
Bankers said what was particularly good about Dewan Salman
eurobond was that the issuers never defaulted on interest payment not even after
May 28, when Pakistan put restriction on foreign exchange outflows after going
"At times we had to arrange foreign exchange from open
market to make interest payment on the bonds," boasted Mustafa adding that
successful maturity of the bond had left a good impression in the international
Bankers said though Dewan Salman eurobond had been a big
success yet there is little optimism among local corporates about launching
Pakistan assured of $700mn WB credit
Pakistan has won assurance of a $700 million credit from the
World Bank for the current year that will be additional to drought relief
pledged by the bank.
This was revealed after a meeting between Federal Finance
Minister Shaukat Aziz with World Bank President James Wolfensohn on Saturday on
the sidelines of the IMF/World Bank annual spring meetings in Washington.
Mr Aziz told reporters on Saturday he had found the World
Bank chief receptive to the progress made by the military regime and said that
his meeting had gone "very well". Mr Wolfensohn appeared understanding
of Pakistan's problems, he added.
The finance minister has held meetings with several World
Bank and IMF officials, as well as representatives of the Bush administration,
and seems on the whole well pleased with the outcome. He said he had found the
IMF chief, Horst Kohler, also to be responsive to Pakistan's needs.
Rescheduling accords signed
Pakistan and Norway have signed agreement Monday on the
consolidation and rescheduling of debt in pursuance of the agreed minutes of
Paris Club signed on January 23, 2001.
Under the agreement debt service payments of US dollars 6.6
million, due during the period from March 1, 2000 to September 30, 2001 on loans
contracted up to September 30, 1997, will be consolidated and rescheduled for
repayment in 30 semi annual instalments commencing from November 01, 2004.
The agreement was signed by Nawid Ahsan, secretary economic
affairs division, on behalf of the government of Pakistan and by Ms Paivi
jokikyyny, deputy head of mission, embassy of the Republic of Finland,
Islamabad, on behalf of the government of Norway.
Crescent Sugar Mills
Crescent Sugar Mills & Distillery Limited announced
financial results for the year ended September 30, 2000, showed pretax profit
amounting to Rs 94.9m and after tax profit at Rs 80.2m. These look exceedingly
good against the previous year's pretax profit at Rs 7.8m and after tax profit
at Rs 1.4m.
The rupee on Wednesday fell to 61.50 to a dollar in
inter-bank market on increased outflows amidst dwindling supply of greenbacks
against the previous close of 61.25. But in the open market it closed almost
unchanged at 64 to a dollar.
Senior bankers said the rupee closed around 61.45/61.50 to a
dollar in inter-bank market as some local and foreign banks made heavy buying of
greenbacks for their corporate clients.
Sindh talks credit with WB
The Sindh government is negotiating a provincial structural
adjustment loan with the World Bank, informed sources told on Tuesday. The
sources said the World Bank loan for Sindh would be linked with administrative,
education, civil service and tax reforms.
Without disclosing the amount of the proposed loan, the
sources said the disbursement of the money would be spread over a period of a
few years. "We are working out the details," World Bank sources said.
They added that the loan would not have any "strings" attached to it
nor the World Bank would identify any project.
Overseas Pakistanis sent $804 million back home in the first
nine months of this fiscal year up from $678 million in a year-ago period.
The State Bank statistics show an increase in home
remittances from several countries including the United States between July
2000-March 2001 as compared to the remittances in the same period of last fiscal
Bankers say what has helped them attract more foreign
exchange through home remittances in the first nine months of this fiscal year
is a better delivery system. They claim that banks handling home remittances
have reduced the time taken in the delivery of remittances to 24 hours in cities
and 48 hours in rural areas but constant public complaints about long delays
refute this claim.
The Pakistan Telecommunications Company (PTCL) showed a
growth of Rs2.844 billion in its total revenues at Rs45.25 billion. Total
earning (profit after tax) for the nine months ended 31 March 2001, increased to