Feb 26 -Mar 04, 2001
The fourteen companies that declared financial results on Monday,
reported improved earnings and most paid higher dividends to their shareholders the
exceptions being three Modarabas of the Prudential group.
The fresh crop of financial figures for the year ended September 2000,
from the textile and the sugar sector are due by the end of March. Market greeted the
results of four sugar mills on Monday with jubilation, as these could be the harbinger of
glad tidings for the industry.
Premier Sugar Mills reported pretax profit of Rs200 million for the
year ended September 30, 2000, up from Rs111 million the previous year. Its associated
company the Frontier Sugar Mills improved profit to Rs19 million, from Rs15
million. Pretax profit at Noon Sugar Mills shot up to Rs108 million, from Rs67 million and
at Chashma Sugar Mills, it jumped to Rs224 million, from Rs89 million in 1999.
Among textiles, Elcot Spinning Mills showed a huge rise in pretax
profit to Rs98 million, from Rs16 million; Babri Cotton pushed forward the profit to Rs58
million, from a year ago pretax profit at Rs13 million and Din Textile's pretax profit
multiplied to Rs351 million, from Rs132 million.
Bannu Woollen Mills posted profit amounting to Rs52 million for the
year 2000, up from Rs38 million the year before.
Before tax profit at Pacific Leasing for the half year ended December
31, 2000 edged higher to Rs5.4 million, from Rs4.9 million.
Among synthetics, Pakistan Synthetics increased profit to Rs67 million
for the first half, from Rs44 million in the same period of 1999 and Rupali Polyester
added Rs100 million to its profit, which rose to Rs198 million, from Rs92 million, same
time last year. Treet Corporation also unveiled half term results on Monday, posting
pretax profit at Rs51 million to end-December 2000, twice the Rs25 million earned in the
corresponding period of 1999.
Trust Securities & Brokerage swung back to a profit of Rs0.5
million for the six months to end-December, from a loss of Rs0.7 million same time earlier
Expatriates send $667.5m
The foreign exchange sent by overseas Pakistanis rose to $667.5 million
in the first seven months of the current fiscal year from $549.3 million in a year-ago
The State Bank statistics show an increase of 20 per cent in home
remittances from various countries, including the United States, between July-January
2000-01 as compared to the remittances received in July-January 1999-00.
Home remittances from Kuwait jumped to $106.8 million from $68 million
chiefly because of compensation paid by Kuwait to Pakistani Gulf War
But the increase of $38.8 million is a little over one third of the
$118.2 million rise in total home remittances of the first seven months of the fiscal
2000-01. That is there has been a rather general upward trend in inflow of foreign
exchange through home remittances.
Yield on 3-month TBs up
The State Bank on Wednesday raised the three-month treasury bills yield
by 45 basis points. The move confirms that Pakistan has accepted the IMF demand to
increase interest rates.
The Fund has been insisting for an increase in interest rates to make
sure Pakistan meets some key targets, including the one relating to expansion in its net
domestic assets. The IMF has set these targets under a $596 million 10-month standby
The SBP said it sold T bills worth Rs3 billion at 10.95 per cent on
Wednesday. Two weeks ago, it had sold three-month bills worth Rs1.4 billion at 10.50 per
cent. Thus, the yield on three-month bills went up by 45 basis points on Wednesday.
The SBP said it had received Rs3.9 billion bids for three-month bills
of which it accepted bids worth Rs3 billion and rejected the rest.
Move to build up forex reserves
The government is setting up a committee of federal finance managers to
devise ways and means for maintaining foreign exchange reserves and foreign currency
deposits from further plummeting.
The government has agreed with the International Monetary Fund (IMF) to
maintain foreign exchange reserves at $1.74 billion at the end of June 2001, but chances
are that the government may not be able to meet this target. Gross liquid foreign exchange
reserves are currently a little over $1 billion.
Rupee falls again
The rupee after making a modest recovery on Wednesday fell again on
Thursday in the inter-bank market. But it held firm in kerb.
Bankers said the rupee closed at 60.25/60.30 to a US dollar in the
inter-bank market from its overnight close of 60.10/60.15 as importers made aggressive
buying of greenbacks. Currency dealers said the rupee closed unchanged at 62.95/63.00 to a
dollar in the kerb market.
Pakistan's gross liquid foreign exchange reserves fell to $1.063
billion on February 17 from $1.097 billion on February 10.
According to the statistics released by the State Bank on Thursday the
country had about $764 million worth of approved forex reserves and $299 million worth of
cash and short term securities held abroad on February 17.
The total reserves of $1.097 billion include around $570 million worth
of foreign currency deposits of banks placed with SBP. In other words net liquid reserves
currently stand around $530 million or equal to two-week's import bill only.
PILCORP to offer TFCs
The Pakistan Industrial Leasing Corporation Ltd (PILCORP) will offer
for public subscription the first tranche of Rs325 million of its Term Finance
Certificates (TFCs) on March 1-2. The PILCORP TFC has a tenure of three years and
comprises Rs325 million, of which Rs175 million has been taken up by the institutional
investors and the rest will be offered to the general public. In case of oversubscription,
the company has the option of retaining up to 50 per cent of the public issue, i.e., Rs75
million, raising the size of the tranche to Rs400 million.