- 15, 2001
Leasing cos to focus on auto sector, SMEs
After the restoration of first year allowance
announced in the budget 2001-2002 leasing companies are confident of
doing more business particularly in auto leasing and small and medium
Chairman of Leasing Association of Pakistan (LAP)
Rashid Ahmed said at a press conference on Thursday that restoration
of first year allowance would help leasing companies regain grounds in
the industrial leasing. "This has saved the leasing companies
from a collapse," said vice-chairman Humayun Murad.
Under initial depreciation allowance or first year
allowance the government allows accelerated tax depreciation on
newly-acquired plant and machinery to encourage industrial growth and
capital formation. Rashid Ahmed and Humayun Murad said that the
restoration of this facility would encourage leasing companies to
expand the client base.
Replying a question Rashid Ahmed said most leasing
companies had enhanced their paid-up capital to Rs200 million as
required by the Securities & Exchange Commission of Pakistan. He
said LAP would seek extension in the deadline for boosting paid-up
capital. The deadline expired on June 30. He said half of the
companies that were yet to raise paid-up capital to the required level
had sought SECP permission to do this by issuing right shares.
Rashid informed newsmen that LAP had received a
request from Al-Meezan Investment Bank for starting leasing business,
adding that the request was being processed.
He welcomed the decision announced in the budget to
increase the cost of vehicles from Rs 600,000 to Rs 750,000 for
working out depreciation allowance. He said this would give further
boost to car leasing, adding that sales of car through leasing
companies had already risen from 20-25 per cent to 40 per cent.
EoIs invited for govt shares in MCB
The Privatization Commission on Thursday invited
expressions of interest (EoIs) to divest 16.6 per cent (approximately
40 million) remaining equity stake of the government in the Muslim
The procedure will be held through a book building
process or block sale/tender offer through open bidding to domestic
and international investors and the general public.
MCB is the largest private commercial bank in
Pakistan with 1,209 domestic and seven foreign branches (including one
in EPZ). MCB has been recently awarded the best domestic bank for 2000
by Euromoney, a leading international publication.
The Privatization Commission asked interested
investors to submit their expressions of interest in minimum sized
lots of 500,000 shares by 3 p.m on July 30, 2001.
10 EoIs received for PTCL sell-off
The Privatization Commission has received
expressions of interest (EoIs) from 10 companies for the privatization
of Pakistan Telecommunication Company Limited (PTCL).
According to an official handout the current effort
to privatize the PTCL began in 1998 with the appointment of a
consortium, led by Goldman Sachs International, as the financial
advisor (FA), that has recently been supplemented by JP Morgan.
The Privatization Commission had invited EoIs from
interested parties for PTCL privatization and advertisements to this
effect were published in the national and international press on April
23, 2001 and onwards. The last date for the submission of EoIs was
June 30, 2001.
PS retrenches workers
Pakistan Steel (PS) has reduced the strength of its
employees from 20,533 to 14,393 by 4th (Wednesday) under a 'manpower
Sindh Minister for Finance, Planning and
Development, Dr Abdul Hafeez Shaikh has said that timely completion of
ongoing projects under $22.57 million investment by Asian Development
Bank (ADB) in Sindh would help raise standard of living.
Gas pipeline to be on agenda
The proposed Iran-Indian gas pipeline passing
through Pakistan will be on the agenda of the July 14 Pakistan-India
summit. This was stated by Oil and Natural Resources Minister Usman
Aminuddin while talking to Washington-based Pakistani correspondents
Increase in drug prices postponed
The government has decided to postpone the increase
in drug prices at least for two months to gauge the full impact of the
The Economic Coordination Committee of the Cabinet
(ECC) had, in principle, agreed to allow increase in drug prices to
lure pharmaceutical companies to make more investments in the
New CBR chief (Policy
The federal government on Tuesday appointed Riaz
Ahmad Malik chairman of the Central Board of Revenue (CBR). He has
also been given charge of additional secretary (in charge) revenue
Deep-sea fishing policy unveiled
The government on Monday announced a deep-sea
fishing policy that promises heavier penalties for violating rules and
makes it mandatory for all vessels operating in the exclusive economic
zone to install the global positioning satellite.
PSO awards contracts for LSFO
Pakistan State Oil (PSO) has awarded contracts to
buy up to 150,000 tons of low sulphur fuel oil (LSFO) for
July-September delivery, a PSO official said on Monday.
Two 25,000-ton cargoes have been awarded to
European trader Glencore and Middle East traders Bakri Trading and Fal
Oil, he said.
One cargo each in July and August was awarded to
Fal Oil at a premium of $44.78 per ton to the Pakistan formula.
Castro invites Musharraf
President Gen Pervez Musharraf on Saturday accepted
an invitation from President Fidel Castro to visit Cuba, the foreign
ministry said in a statement.