Sep 10 - 16, 2001
30 steps to qualify WB loan completed
Pakistan on Wednesday told the World Bank that it
had completed 30 out of 35 total steps to qualify $350 million power
sector restructuring programme.
A senior government official told the World Bank
energy sector mission that held review meetings with senior officials
of the ministry of power was fully satisfied with the progress on
restructuring programme. The official, however, declined to comment
whether the bank would now release $350 million loan.
He indicated that $75 million tranche of the Asian
Development Bank (ADB) loan may not be forthcoming as scheduled in
December this year unless the Privatisation Commission completed its
task in preparing the transactions.
WAPDA sources told that the utility and the Private
Electric Power Company (PEPCO) had completed all the milestones
earlier agreed with the World Bank. The only milestone of preparation
of financial modelling of distribution, generation and transmission
companies was outstanding against WAPDA which almost complete now.
The financial modelling of distribution companies
have been approved by all the relevant parties, those of generation
companies have also been cleared by the World Bank while the financial
modelling of 12th corporate company — National Transmission and
Dispatch Company (NTDC) — would be handed over to the World Bank
mission on September 9.
Sources in the ministry of power said after the
review meetings with the Asian Development Bank and the World Bank
that the progress was slow in five measures but by and large the donor
missions were satisfied because most of the steps were on time or in
some cases six months ahead of schedule.
These sources, however, agreed if the Privatisation
Commission failed to complete preparation of transaction for sale of
the KESC, a distribution and generation company by December, the ADB
would not release $75 million loan.
SBP leaves T-bill yields unchanged
The State Bank on Wednesday left the treasury bills
yield unchanged at the previous levels while auctioning the bills to
mop up excess liquidity from inter-bank market.
The move signals that the central bank has little
room for further easing off of monetary policy in next quarter.
SBP said it sold Rs11.8 billion worth of T-bills of
different maturities to suck in Rs 11.4 billion from the inter-bank
market. But in doing so it kept unchanged the cut-off yields on three-
month and six-month bills at 10.22 and 10.51 per cent.
It also left intact the yield on one-year bills at
the previous level of 10.88 per cent.
In the first two months of this fiscal year the SBP
had cut the T-bills yield by 1.71-2.26 per cent in three instalments
to keep them aligned with its discount rate that was cut in two phases
to 12 per cent.
SBP retail banking
The amended State Bank of Pakistan (SBP) act is
likely to be promulgated shortly creating an independent subsidiary to
look after SBP's retail banking operations, it is learnt.
Sources in the law ministry said a summary of the
proposed amended act was lying with the Chief Executive and hoped that
it would be approved this week.
A post of subsidiary managing director has already
been created and former chief manager of Lahore office of the SBP has
been appointed against it.
The creation of the subsidiary is part of the SBP
restructuring plan which included technology upgradation, recruitment
of professionals and delegation of powers and authority.
TFCs over subscribed
Packages Limited announced on Thursday that it had
received Rs410.735 million in subscription to the 2nd issue of its
Term Finance Certificates (TFCs). The figure worked out to 2.7 times
the company's offer of Rs150 million.
More parties invited for PTCL stake
The Privatization Commission said on Tuesday more
parties could apply to buy a "strategic" 26 per cent stake
in Pakistan Telecommunication Company Ltd (PTCL).
A Commission statement added the 11 parties from
around the world that had already lodged expressions of interest (EoIs)
in the PTCL sell-off must submit a qualification document — Request
for Statement of Qualification (RSOQ) by October 1.
The Islamic Development Bank (IDB) has invited
nominations by October 31 next (15 Sha'aban 1422H) for the award of
IDB prize in Islamic banking for the year 1422H (2002G). The prize
consists of a citation and cash award of 30,000 Islamic dinars
approximately 40,000 dollars.
MCB rating upgraded
JCR-VIS Credit Rating Company Limited has upgraded
the entity ratings of Muslim Commercial Bank Limited (MCB) from A+ (A
Plus) to AA- (Double A Minus) for medium to long-term and from A 1 (A
One) to A1+ (A One Plus) for short-term. The rating company termed the
outlook of the MCB stable.
Union Insurance Company Limited plans to raise
Rs10.4 million, through the issue of right shares at 21 per cent, at
par. The proposed right issue, when completed, is envisaged to raise
the company's paid-up capital from Rs49.6 to Rs 60.0 million. For the
year ended December 31, 2000, the company had posted pre-tax profit
amounting to Rs145,000 and after tax profit at Rs92,000.
Al-Ghazi Tractors Limited unveiled financial
figures for the first half of the current year to end-June 2001.
These showed 6 per cent improvement in pre-tax
profit, which amounted to Rs613.8 million for the Jan-June six months
of 2001, against Rs578.9 million in the corresponding period of the
previous year. After tax profit was up 2 per cent to Rs381.8 million
from Rs375.4 million.