Oct 15 - 21, 2001
FDI stands at $66m in July-Aug
A $31 million direct foreign investment coming in
from the United States raised the total amount of FDI to $66.2 million
in the first two months of this fiscal year.
Official statistics show that $31 million worth of
FDI came in during July-August this year against a negative inflow of
$12.3 million in a year-ago period. The specific areas of US
investment coming in during the first two months of this fiscal year
could not be ascertained. But top bankers said what attracted this
investment was an improved image of Pakistan in the eyes of the US
Before the May 1998 nuclear explosions Pakistan had
been receiving a large amount of FDI from the US that started
declining afterwards. In fiscal 1998 -99 Pakistan received about $215
million FDI from the US that fell to $170 million in 1999-00 and then
to $93 million in 2000- 01.
Whereas the FDI coming in from the US rose from
minus $12.3 billion in July-August 2000 to $31 million in July-August
2001 the inflow of FDI from the UK fell from $8.3 million to $3.8
million. But foreign direct investment from Germany rose from a
negligible $600,000 in July-August 2000 to $7.3 million in July-
August 2001. Similarly FDI from Japan and the Netherlands also
increased from $2.7 million and $300,000 to $6 million and $5.5
million respectively. But the FDI from Saudi Arabia fell from $2.2
million in July-August 2000 to only $800,000 in July-August 2001.
Senior bankers and analysts say foreign direct
investment is set to fall in coming months in the wake of the
September 11 terror attacks on New York and Washington and the US
retaliatory attacks on Afghanistan.
$59 million withdrawn in 1 month
People including foreigners have withdrawn $59
million from foreign currency accounts within a month after the
September 11 terrorist attacks on New York and Washington.
This is evident from the fact that foreign exchange
reserves held by the banks fell from about $1.637 billion on September
8 to $1.578 billion on October 6.
Senior bankers say the fall in the reserves largely
reflects the withdrawals people have made from their foreign currency
Bank treasurers say many foreigners have
repatriated abroad millions of dollars. They say local people have
also taken out huge amounts of money from their foreign currency
accounts. Immediately after the September 11 many individual
foreigners and firms operating in Pakistan transferred abroad millions
of dollars from foreign currency accounts.
Three cos agree to buy-back shares
Three companies conveyed to the Karachi Stock
Exchange their willingness to buy-back shares held by the minority
shareholders at prices negotiated with the Exchange.
The KSE announced on Thursday that Benz Industries
Limited; Pakpanther Spinning Mills Limited and Farooq Habib Textile
Mills Limited, which had earlier opted to repurchase all of the shares
held by the small shareholders and seek stock market de-listing, had
agreed to the prices negotiated with the sub-committee of the
Benz Industries Limited had accepted the buy-back
price of Rs20 per share; Pakpanther said it would repay Rs14.50 per
share and Farooq Habib Textile Mills agreed to the repurchase price of
Rs16.25 for each share that the small shareholders return to the
Gold prices fall to Rs5,932
Gold prices on Thursday fell to Rs5,932 from
Wednesday's price of Rs6,000 per 10 grams as global price dropped by
$4 per ounce in just one day. Global gold prices dipped to $282 per
ounce from $286 on selling pressure in foreign markets. Gold bar
(116.640 grams) prices also plummeted to Rs68,800 against Rs71,100 of
The rupee gained 25 paisa more to a US dollar in
inter-bank market on Thursday. It closed at Rs62.10/ Rs62.15 for ready
buying/selling against the previous close of 62.35/62.40.
SBP injects Rs6.7bn
The State Bank on Wednesday again pumped in Rs6.75
billion into the cash-strapped inter-bank money market. The SBP said
it provided the liquidity by purchasing treasury bills for one week at
9.55 per cent at a special open market operation.
$4bn routed through hundi system annually
An estimated amount of $4 billion are routed
through the "hundi" system in the country every year, senior
finance ministry officials told. "Though it is anyone's guess how
much money changes hand through hundi but according to estimates it is
as much as $4 billion annually," an official said.
Investigations revealed that more than one-third of
money sent by expatriate workers to families back home come through
hundi system. An ancient system of money transfers developed long
before the formal banking codes for transactions evolved, hundi is
called by different names in different countries.
Sigma Leasing to issue 5m right shares
Sigma Leasing Corporation Limited proposes to issue
5 million right shares in the ratio of one-for-two (50 per cent). The
company said on Monday that the Board had decided to issue the shares
at a discount of 30 per cent (at Rs7 per share).
Orix Leasing Pakistan
On Tuesday, Orix Leasing Pakistan Limited announced
the financial figures for the year ended June 30, 2001, posting 14.8
per cent growth in pre-tax profit to Rs179.3 million, from Rs156.1
million the previous year. The Board has recommended cash dividend at
25 per cent tied to a stock bonus, one-for-five (20 per cent).
Bata Pakistan, the trans-national shoe making
company, earned Rs23.7 million in pretax profit for the first six
months of the current year ended June 30, on net sales valued at