. .

July 23 - 29, 2001

Small investors' society

Small investors have recently formed "Small Investors' Society- sis" under leadership of Taymur Ali to redress their problems in share & other investment markets.

"SIS" is a social, welfare and non government organisation (ngo) working in the field of "investments".

Prime object of this society is to protect interests of small investors/shareholders dealing in futures commodities, currency, bullion, real estate and share markets. As well as protection of interest of account/saving certificate holders of banks, dfi & national saving organisation.

We are sure, you will share our opinion that at present entire investment culture particularly corporate culture is changed into corruption culture inflicting heavy losses to small investors.

Flnancial mafia working in corporate sector has robbed many small investors with the help of false and fabricated prospectus / financial reports, misleading and money making advertisements, speculation and manipulation, share subscription / right share issues at premium and misappropriation of companies' funds, and approval of accounts in annual general body meetings by fake shareholders. You will agree with us that loopholes in laws, loose management / administration, lack of public awareness and corruption have contributed much to the misery of millions dealing in share / investment business on global level.

This fact to be underlined that individual protest, hue & cry in the shape of letters to the editor or letters to the authorities concerned against serious financial frauds/irregularities have done nothing in redressing of investors' problems. We believe in protection & promotion of our interests through joint struggles & contributions.

Many of us have now realised that it is need of time to make joint efforts in the shape of powerful pressure lobby against white collar crimes to save what is in hand and to recover what is lost. For above purpose, we all should work hard for awakening of public through seminars, conferences and workshops. Also to seek relief through joint representation to the authorities concerned in case of need, please contact us on following address & phone no:

Taymur Ali, (General Secretary) Small Investors' Society, 93/10, Drigh Road, Cantt Bazar, Karachi No. 8 Mobile phone #: 0333-2141457

Slum School Children Enjoy a Colorful Day at the Karachi Sheraton

Karachi Sheraton Hotel & Towers recently invited students of Garage School to a fun afternoon at the hotel. To officially inaugurate the renovation of the 8th floor the children had been given barrels of paints and asked to let loose the artist within and recreate their wildest imagination on the Sheraton walls.

"Karachi Sheraton through these small projects strives hard to contribute its share for the future prosperity of the community " says the General Manager of Karachi Sheraton Hotel & Towers, Mr. Thomas van Opstal. "Children deserve the best when it comes to education, quality of life and good fun, and Sheraton being a socially responsible organization, does its bit as much as we can".

Good Second Quarter for Reckitt Benckiser

Reckitt Benckiser announced the progress of their global business in the second quarter and first half of 2001.

Commenting on the position, Bart Becht, Chief Executive Reckitt Benckiser said:

"Q2 was a good quarter for Reckitt Benckiser across ail categories and geographies. The Company's growth strategy, the success of many of its new product launches, the increased investment in its brands and better in-market execution are all contributing to the good growth. Results in the first half were expected to be ahead of the full year target growth rates but the strength of our performance so far means that we are somewhat ahead of where we expected to be. We will therefore revisit the full year targets at the time of the half-year results in August."

The second quarter saw further strong underlying growth with net revenue growth from continuing operations expected to be in the range of 5% to 6% at constant exchange (2000 base 785m).

Total reported net revenue growth for the quarter also includes the first contribution from two recent acquisitions, which are performing in line with expectations, as well as the effect of previous disposals treated asdiscontinued businesses. The effect of these combined is to increase net revenue growth by less than 1%. Exchange rates on translation of overseas results into sterling will add over 2% to reported growth.

As a result, total reported net revenue growth for total operations at actual exchange is expected to be in the range of 8% to 9% for the quarter on the base of 807m reported in 2000.

Profitability continues to benefit from this strong top line growth and delivery of merger savings, offset by higher marketing investment. Consequently the Company looks for Q2 normalized net income growth to be around 18% for the total company at actual rates (2000 base of 71m), and comfortably above the target rate for the full year of 18% on a continuing operations basis at constant exchange.

This will bring net revenue growth from continuing operations for the first half of the year to a range of 6% to 7% at constant exchange.

Total reported net revenue growth for the half-year is expected to be around 9% on a base of 1,555m reported in 2000. This includes the effect of the new acquisitions offset by the discontinued businesses which combined reduce the rate of growth by less than 1% while exchange will increase the reported growth rate by 3%.

Normalized net income growth in the first half is expected to be above 20% for the total company at actual rates (2000 base of 116m) and comfortably above the target rate for the full year of l8% on a continuing operations basis at constant exchange.

"Adoption of a Riba Free system in line with the experiences of Islamic Countries" Hafeez Shaikh

The experiences of other Islamic countries should become the benchmark in introducing a Riba-Free system in Pakistan. "This would ensure an effective and pure Riba-Free system in letter and spirit." This was stated by Dr. Abdul Hafeez Shaikh Finance Minister, Government of Sindh, while inaugurating a seminar "Interest Free Banking" organized by the Hamdard Institute of Management Sciences in Karachi recently." Riba-Free system should not be adopted in isolation, as changes were needed in laws and assurance of good governance, transparency etc." He further added.

The seminar, attended by eminent scholars and bankers stressed upon the need for quick implementation of Riba-Free system while emphasizing that many factors must be considered before embarking on this change.

Dr. Tariq Hasan, Advisor to the Finance Minister and Member Task Force, Ministry of Finance traced in detail the introduction of this system in Pakistan and suggested more research.

Dr. Malik Ghulam Murtaza, an eminent Islamic scholar criticized IMF and the forces opposed to this system." I am happy to learn that a leading nationalized commercial bank UBL is poised to introduce Modaraba, Mutual Funds and other Islamic products. This would be a positive step in the right direction."

Dr. Ashraf Janjua suggested that factors including inflation must be duly taken care of.

Others who spoke on the occasion included Dr. Arshad Zaman, Former Chief Economist & Special Planning Secretary Government of Pakistan, Mr. Zaigham Mahmood Rizvi, Managing Director Pak-Kuwait Investment Company, Syed Iradat Hussain, Founder Chairman Modaraba Association of Pakistan ND FORMER President MCB; Mr. Shahid Jamil, International Consultant and Member of International Board of Governors of the Institute of Islamic Banking & Insurance London; Dr. Ahsan H. Khan, Divisional Head Islamic Banking UBL; Mr. Sultan Ahmed Senior Columnist and Mr. Mohammed Hussain.

Askari MasterCard signs up with Avari Hotels

Askari MasterCard has signed a memorandum of understanding (MOU) with Avari Hotels under which generous discounts are being offered to Askari MasterCard holders at Avari Hotels in Pakistan and abroad.

This MOU was signed in Karachi on Saturday, July 14, 2001, by Mr. Kalim-ur-Rahman, President and Chief Executive Officer, Askari Commercial Bank Limited and Mr. Byram D. Avari, Chairman, Avari Hotels Ltd.

Under the deal Askari MasterCard holders shall be entitled to the privilege of a 50% discount on room rack rates at all Avari Towers Hotels in Pakistan (Karachi, Lahore), Avari Dubai and Ramada, Toronto.

In addition to these hefty discounts on room rates, Askari MasterCard holders will have the advantage of 15% discounts at restaurants, health clubs, business centers, laundry and car rentals at all these leading hotels.

Avari Hotels are designed for business travellers and conference / interactive group organizers whose discerning tastes demand luxury accommodation, higher levels of personal service and extensive food and beverage choices.

Askari MasterCard is well known for a host of benefits and services that it offers to its members to enhance their lifestyle. The lucrative benefits it has now made available under the deal with Avari makes a valuable addition to its growing list of card member benefits.

After all, as they say, there are some things money can't buy. For everything else, there's MasterCard.

"Analysis of the Federal Budget 2001-2002 and its impact on investment"

The Pakistan German Business Forum (PGBF) recently organised a seminar in Karachi to keep its members updated on the latest financial issues, especially after the federal budget.

Governor State Bank of Pakistan Dr. Ishrat Hussain was the chief guest, Mr. Razak H. M. Bengali, President of PGBF, presented welcome address and high-lighted the efforts to promote trade between Pakistan and Germany.

Dr. Ishrat Hussain explained in detail the financial policies of the government, especially its efforts to reduce the debt burden and to revive the national economy. He also answered questions put by the members on financial issues.

The PGBF often organises seminars and workshops related to trade and industry for the benefit of its members and to keep them abreast of the changes taking place in the financial sector of Pakistan.

The seminar was also attended by Mr. Mohammed A. Rajpar, President and Mr. Mehelli B. Dinshaw, Secretary General of Pakistan Belgium Business Forum (PBBF).

Old Mutual to acquire commercial union's operations in Pakistan

Old Mutual plc, the London listed financial services company, acting through subsidiaries (OML), has entered into an agreement with CGU International Insurance plc (CGU), a subsidiary of CGNU plc, to acquire all its existing business in Pakistan. The acquisition is conditional upon the receipt of regulatory approvals and completion.

CGU owns 51% share in Commercial Union Life Assurance Company (Pakistan) Limited (CULAP), a company listed on the Karachi Stock Exchange. It is one of two foreign companies in Pakistan offering Group and Individual life products through a network of branches and unit offices throughout the country. Commercial Union's general insurance operations are carried out through a branch of CGU. It offers all classes of general insurance business through sub branches in the major cities of Pakistan. It is one of four foreign branches operating in Pakistan.

The transaction will be effected by the transfer of CGU's 51% stake in the life company to OML and separately, the incorporation of a public company in Pakistan, with OML as its principal shareholder, which will take over the assets and liabilities of CGU's general branch operations. OML expects to maintain the current management structures.

The Bank of Tokyo-Mitsubishi, Ltd.

Rates of return on pls deposits for the half year ended January-June, 2001.


Nature of deposits

Per Annum


Special notice deposits


7 to 29 days notice



30 days and over notice



Saving accounts



Current deposit


Profit Plus Account



Term deposits


3 months



6 months



1 year



Corporate investment A/C.



90 days


From Rs. 50,000,000 to Rs. 400,000,000


From 01-01-2001 to 11-03-2001



From 12-03-2001 to 30-06-2001



From Rs. 400,000,001 and above


From 01-01-2001 to 30-06-2001



180 days


From 01-01-2001 to 30-06-2001



"State Life Insurance Corporation of Pakistan has announced an allocation of huge amount of 9.2 billion Rupees towards Bonuses on with profit policies for its valued policyholders based on the actuarial valuation of 2000 that has been approved by the Board of Directors." This was stated by Mr. Samee-ul-Hasan, Chairman State Life while addressing the participants of the All Pakistan Zonal Heads Conference held in Karachi. Mr. Samee said that the valued policyholders will be entitled for the bonuses with enhanced rates declared as a normal bonus due for the period 2000 and the one time special millennium bonus for the same period, which will be applicable to all with profit policies in-force till December 31, 2000 and have completed atleast 5 policy years period. Mr. Samee informed that State Life's life fund has reached Rs. 68 billion in the year 2000 as compared to Rs. 55 billion in 1998, which presents the picture of its corporate strength and financial stability. Mr. Samee stressed the need to ensure optimum services to the valued policyholders in line with the enforced insurance ordinance 2000, besides procuring consistent business targets during the second half of 2001.

Earlier, Mr. Rasool Bakhsh Baloch, Executive Director, Policyholders Services, State Life while addressing the participants said that the policyholders complaints be addressed on priority basis as enshrined in the enforced Insurance Ordinance 2000. Mr. Taseer Yousaf Makhdoom, Divisional Head, Marketing made his presentation on new commission structure for marketing force and focused on the marketing strategies for achieving the business targets during the second half of 2001. Mr. Agha Ashraf Abbas, Regional Chief (Southern Region) welcomed the delegates of the all Pakistan Zonal Heads Conference.