July 30 - August 05 , 2001
Pakistan to get $700m this year
The World Bank will offer $700 million to Pakistan
for various projects, including $300 million banking sector loan and
$130 million for mitigating the effects of drought. "We will be
taking a number of projects worth $500 million to our board within
this financial year for final approval," said John Wall, the
country director of World Bank for Pakistan and Afghanistan.
The remaining funding, he pointed out, had been
committed for some other projects and it was likely to be disbursed
before the end of this calendar year. The bulk of $130 million for
drought would be made available to Pakistan within a few weeks, he
Mr Wall told a news conference on Wednesday that at
the request of the government of Pakistan the World Bank had
reallocated $130 million for drought assistance from the restructured
Second Social Action Programme Projects and the National Drainage
He said the country strategy for Pakistan included
the approval of a number of large lending operations between April and
June: a $3 million trade and transport project, a $21 million on-farm
management projects in the NWFP and $350 million Structural Adjustment
Credit (SAC). For this period, the WB had also announced the
implementation of $10 million global environment facility-funded
protected areas management project.
He did not rule out the possibility of another
relatively smaller SAC for Pakistan within this year.
"This boost in lending reflects our confidence
in the reform agenda developed by the new government," Mr Wall
said. He said the Bank's planned assistance till the end of 2001 for
proposed projects included a $300 million banking restructuring and
privatization project, a $30 million community infrastructure project
and a $10 million HIV/AIDS project. These projects were now to be
approved by the Bank's board of directors.
WB likely to offer $300m loan
The World Bank is likely to offer $300 million
banking sector loan this year to help undertake large-scale
restructuring of the Nationalised Commercial Banks (NCBs) and the
Development Financial Institutions (DFIs).
Official sources said on Tuesday that a
three-member delegation headed by Secretary General Finance Mr Moeen
Afzal was currently visiting Washington and had held detailed talks
with the World Bank authorities to secure $300 million banking sector
The delegation which also included Deputy Governor
State Bank of Pakistan Mr A.R. Chugtai and Additional Secretary
Ministry of Finance Dr Waqar Hasan Khan provided all the details to
the WB officials about the "rightsizing and downsizing" of
the NCBs and the DFIs.
Forex reserves rise to $3.23bn
The State Bank of Pakistan announced on Thursday of
having total liquid foreign exchange reserves of 3.23 billion dollars.
These reserves include 1.69 billion dollars being
held by the State Bank of Pakistan and 1.53 billion dollars by all
Pakistan's trade imbalance in the outgoing fiscal
that ended June 30 last, amounted a little over 1.5 billion dollars as
official figures put exports at 9.14 billion dollars and import at
10.66 billion dollars.
Rupee gains 25 paisa in kerb
The rupee on Thursday maintained its firming up
tendency against the dollar for the second day in a row as it gained
another 25 paisa on the open market, reflecting the demand is being
The dollar was quoted Rs.67 and 67.10 for buying
and selling as compared to Rs.67.25 and 67.35 a day earlier, the next
gain over the last two days being 40 paisa.
MFMY declares cash dividend
MFMY Industries Limited — the stock market listed
spinning mill at Karachi — announced on Wednesday that the board had
decided to disburse an interim cash dividend to "the small
investors from the general public" at 10 per cent.
SBP mops up Rs11.3bn
State Bank of Pakistan on Wednesday realized
Rs11,315.5860 million with a face value of Rs12,055 million from sale
of Government of Pakistan Market Treasury Bills three-, six- and
12-months maturity against pre-auction target of Rs3,000 million.
According to SBP, the bids received were: three
months bills with discounted value of Rs4,487.7168m and face value of
Rs4,606m, for six months, discounted value of Rs13,792.1750m and face
value of Rs14,600m, and for 12 months maturity, bid offered was of
discounted value of Rs6,871.2060m and face value of 7,705 million.
ABAMCO posts Rs87m profit
ABAMCO Limited, the asset management company,
managing the Unit Trust of Pakistan (UTP) — an open-ended mutual
fund in the private sector — posted a net profit of Rs87 million for
the year ended June 30, 2001. The earnings were down 20 per cent over
the Rs109 million the year ago.
The board, announced the results last Saturday,
also approved cash dividend at 12 per cent i.e Rs600 per unit. This
would absorb Rs86.4 million, which was equal to 99 per cent of the
year's net profit.
$70 million ADB loan expected
The Asian Development Bank is expected to include
three fresh projects of $70 million in its 2001-lending programme to
Pakistan, provided provincial governments removed policy objections
These include $43m Punjab non-formal education for
rural women project, $21m NWFP urban development project and $5.75m
engineering loan for Quetta Water Supply & Sanitation. The ADB and
Economic Affairs Division are expected to formally start loan
negotiations very shortly, EAD sources told.
The board of directors of Clariant Pakistan
Limited, which met on Monday, declared the financial figures for the
first half of the current year to end-June 2001.
The company reported 73.6 per cent growth in
pre-tax profit to Rs140.6 million for the six months, from Rs81
million in the corresponding period of the previous year. After-tax
profit was up 77 per cent to Rs75.7 million, from Rs42.7 million.