Nov 26 - Dec 02, 2001
FDI up by 115pc in 4 months
The Foreign Direct Investment (FDI) in the country
has increased by 115 per cent to $119 million during July-Oct 2001 as
compared to $55.5 million of the corresponding period last year.
In October 2001 alone the flow of FDI was $50.5
million which indicates that per month average during October was
almost doubled as compared to per month average of previous three
"This shows that foreign investors have
started reposing confidence in Pakistan and business-friendly policies
of the government", says the Board of Investment (BoI) in an
announcement on Wednesday.
It said that in case of early settlement of
Afghanistan issue, it is projected that the FDI flow during the
current financial year will be around $500 to $600 million.
The leading sector which attracted sizable FDI
during the period are: oil and gas ($48.5 million), power ($25.6
million), electronics ($8.1 million), petrochemical ($6.9 million),
transport ($5.9 million) and information technology ($4.7 million).
The major investing countries are: the United States, ($65.8 million),
the United Kingdom ($10 million) and the United Arab Emirates ($7.4
The Board is making efforts for marketing the
investment potential and opportunities of Pakistan to the foreign
investors. Recently, in Sept this year, an overseas investment
conference was held in Germany which generated lot of interest by the
German entrepreneurs for investment in Pakistan in various sectors.
It expected that during the coming months, the FDI
inflow from Germany will also be increased.
During the year 2002, the BoI is planning to hold
investment conference in Middle East, USA, European Union, China and
The Board has chalked out an investment marketing
plan and the opportunities will be fully taped which are now arising
as a result of lifting the economic sanctions against Pakistan.
Reserves rise to $4.217 billion
Pakistan has received $600 million US grant as part
of a $1 billion package that Washington had pledged for Islamabad last
A State Bank spokesman told with the inflow of this
amount Pakistan's liquid foreign exchange reserves had risen to the
highest ever mark of $4.217 billion.
The country had $3.607 billion worth of liquid
forex reserves on November 10. Of that $2.041 billion was with the SBP
and the rest with all the banks operating in the country. Now with the
arrival of $600 million US grant the SBP reserves have risen to $2.652
billion whereas the reserves with the banks stand around $1.565
The $600 million US grant is the first inflow out
of multi- billion dollars funds pledged by Washington in recognition
of the support Pakistan is extending to the US-led coalition in their
"war against terrorism in Afghanistan."
Home remittances rise to $450m
Home remittances or the foreign exchange sent back
home by overseas Pakistanis rose to about $450 million in the first
four months of this fiscal year from $311 million in a year-ago
The State Bank said on Tuesday that in October
alone the banking system received $185 million worth of remittances up
from $81 million in October last year.
A press release issued by the SBP said that total
remittances including cash flows and encashment of FEBCs/FCBCs; haj
remittances; and remittances from Iraq-Kuwait war victims rose to $529
million during July-October 2001 from $453 million in a year-ago
period. FEBCs and FCBCs stand for foreign exchange bearer certificates
and foreign currency bearer certificates respectively.
Rupee shines further
The rupee on Thursday gained 13 paisa more to a US
dollar in the inter-bank market to close at Rs60.80/60.85 for ready
buying and selling.
On Wednesday the rupee had gained 19 paisa against
the dollar. Thus the local currency has risen by 32 paisa or more than
half a per cent against the greenback in the inter-bank market.
In the open market also the rupee recovered 20
paisa overnight and closed at 61.40/61.70 for spot buying and selling
against the previous close of 61.60/61.90.
Inter-bank forex deals
The State Bank on Wednesday allowed the banks to
buy and sell foreign exchange between themselves even if their buying
or selling is not meant for the customers.
In June 1999 the SBP had stopped banks from buying
and selling foreign exchange between themselves. The central bank had
allowed them to buy or sell foreign exchange in the inter-bank market
for their customers only.
SBP sells Rs5bn PIBs
The State Bank on Wednesday sold Rs5 billion
three-year and five-year Pakistan Investment Bonds at par value.
Bankers said the SBP sold Rs2.2 billion three-year bonds at 10.5 per
cent and Rs2.8 billion five-year bonds at 11 per cent.
The auction of the bonds had generated Rs7.6
billion worth of bids but the SBP accepted bids worth Rs5 billion and
rejected the same sticking to its pre-auction sale target of Rs5
A high-level meeting chaired by Finance Minister
Shaukat Aziz was informed on Tuesday that the National Logistic Cell (NLC)
has earned a profit of Rs93.699 million in 2000-01.
National Bank of Pakistan
The disinvestment of 5 per cent Government holding
in National Bank of Pakistan, is now under way. The subscription list
is to remain open to public for four days: Nov 19 through 22.
Saudi group to invest in HBL
A Saudi group is planning to invest Saudi Riyal 750
million ($200 million) in the Habib Bank of Pakistan. Prince Sultan
Bin Nasser Bin Abdel Aziz, owner and president of Al-Sultan
International Group told a Saudi daily that the company executives are
currently conducting the necessary studies in preparation for buying a
large stake in the bank.