Sep 17 - 23, 2001
Private sector gets Rs54.1bn bank credit
Net borrowing of the central and provincial
governments for budgetary support fell slightly short of target in
fiscal 2000-01: the borrowing stood at minus Rs32.9 billion against
the revised target of Rs39.4 billion.
Officials say the central government made a net
retirement of Rs8.2 billion bank loans, whereas provincial governments
retired Rs24.7 billion.
Initially the IMF had projected net borrowing of
the central and provincial governments at minus Rs14.5 billion, but
later on the federal government had revised the figure towards the end
of the fiscal year.
The net government borrowing of minus Rs32.9
billion was in addition to a net retirement of Rs12.5 billion in
commodity operation plus some unidentified retirement of Rs1.4 billion
in 2000-01. Thus overall government sector borrowing stood at minus
Final figures for government borrowing for
budgetary support reveal that the central government borrowed Rs1.9
billion from commercial banks in 2000-01 but at the same time it
retired Rs10.1 billion thus keeping its net borrowing at minus Rs8.2
billion. On the other hand the provincial governments retired Rs3.3
billion loans of commercial banks and Rs21.4 billion of SBP. Thus
their net borrowing stood at minus Rs24.7 billion.
Officials say the final figures of growth in
monetary assets have been provided to the IMF. The IMF would use these
figures for making fresh projections under a new financing
In the last fiscal year the private sector proper
received only Rs54.16 billion worth of bank credit against an initial
IMF projection of Rs86.6 billion. Pakistan had involved the IMF in
making projections for growth in monetary assets in 2000-01 to meet
some pre-requisites of its $596 million standby loan that the IMF
approved at the end of November 2000.
Full-fledged Islamic bank planned: Ishrat
The Governor, State Bank of Pakistan (SBP), Dr
Ishrat Hussain has spelt out three options, which have been under
consideration of the government to enforce Islamic banking and to do
away with interest-based transactions.
Under the first option, the SBP Governor informed a
gathering of local traders of the Karachi Chamber of Commerce and
Industry on Wednesday, a full-fledged Islamic bank would be set up,
which would have its own Sharia board, and introduce and offer sharia
Under the second option, existing banks would be
asked to set up Islamic subsidiary for starting Islamic banking in
conventional branches and would maintain a separate balance sheet.
In the last option, existing banks would be asked
to open branches to conduct Islamic banking and set up separate
accounts and deposits.
ADB to focus on poverty alleviation
Under a redefined strategy, the ADB is now focusing
comprehensively on the poverty alleviation in which pivotal role has
been assigned to private sector, ADB Resident Representative in
Pakistan Marshuk Ali Shah said on Monday.
Speaking at the inaugural session of a seminar on
'The Business Opportunities' jointly organized by the FPCCI and ADB on
Monday at the FPCCI House, Marshuk Ali pointed out his bank's direct
cumulative assistance to the country exceeds $250 million.
Over and above this, he said the bank has arranged
co-financing facilities of about $104 million through foreign
commercial sources for private sector, he said adding that the bank
has invested in over two dozens projects in the private sector in a
wide variety of industries, companies and financial institutions.
Income Tax Ordinance
The government on Thursday promulgated Income Tax
Ordinance, 2001, which will come into force from July 1, 2002.
Although Dawn has already printed the text of the
new ordinance on July 4, 2001, informed sources said some minor
changes have been made to the text. The new law is drafted in plain
language for easy comprehension, and it is more systematic and
provides for easier self-assessment.
New business rules
The Securities and Exchange Commission of Pakistan
(SECP) is expected to introduce within three weeks a new regulatory
framework and new conduct of business rules for the development of
mutual fund industry.
EU envoy not coming
Poul Nielson, the European Union's development and
humanitarian aid commissioner, on Wednesday cancelled a trip to
Pakistan and Afghanistan in the wake of Tuesday's attacks in the US,
his office said. His trip was to have included a tour of refugee camps
and meetings with representatives of the Taliban and the Afghan
NWFP takes over power project
In a surprise move, the NWFP government has taken
over a $115 million Canadian private sector power project and ensured
that its ground-breaking was performed by the President
notwithstanding the Supreme Court stay order.
"A full bench of the Lahore High Court on
Thursday, September 13, 2001 disposed of the petition filed by
Aziz-ul-Haq Qureshi against WAPDA, Government of Pakistan and Hubco.
The lawyers representing the Applicant stated that they did not have
any objection to disposal of the case.
A Hubco spokesman welcomed the decision of the apex
Court and hoped that it would positively contribute to a better
investment climate in the country particularly with reference to the
international investors confidence."
Rs15bn needed to run LBs
An additional sum amounting to at least Rs15
billion is required for running the administrative structure of the
newly-elected district, tehsil and union councils but no budgetary
allocation has been made for the purpose, a study carried out by the
Sustainable Development Policy Institute points out.