Saudi Pak is professionally managed and is a
well-capitalized financial institution of Pakistan
From Shamim Ahmed Rizvi
Mar 25 - 31, 2002
Saudi Pak Industrial and Agricultural Investment
Company (Pvt) Limited (Saudi Pak) continued steadfastly to play its role
in accelerating industrial development in Pakistan and stepped up its
operational activities in 2001 despite difficult economic conditions.
The overall amount of financing and investments approved during the year
doubled to Rs.2,815 million from Rs.1,390 million in the previous year.
Disbursement of funds rose by 14.4 per cent to Rs.1,690 million in the
current year from Rs.1,477 million during the corresponding period.
Similarly loan recoveries stood at Rs.1,299 million up by 6.8 per cent
from Rs.1,216 million in 2000.
Saudi Pak was established in 1981 under an agreement
signed between the Government of Kingdom of Saudi Arabia and the
Government of Islamic Republic of Pakistan, primarily to promote
industrial development in Pakistan. Its initial paid-up capital of Pak
Rupees one billion has since been doubled to Rupees two billions and is
held in equal proportion by the two governments.
As regards the financial results of the company, net
profit increased by 13.8 per cent to Rs.177.226 million from Rs.155.743
million in the previous year. Total income amounted to Rs.890.8 million
in 2001. This is 19.5 per cent lower than 2000 owing among others to a
sharp fall in income from US dollar denominated securities.
The landmark event in the year 2001 was acquisition
of controlling interest in a commercial bank by Saudi Pak. This
acquisition is part of the policy of the company to diversify its
activities within the ambit of financial services side by side with
organic growth. The objective is to derive the benefits of synergy and
cater the growing and varied needs of its customers under one umbrella.
The bank has since adopted the name of Saudi Pak Commercial Bank Limited
and has been carrying on normal banking activities. The bank has paid up
capital of Rs. 1,500 million and is listed on Stock Exchange. It has its
main office in Karachi and a network of 20 branches operating in the
major cities of the country. The bank mobilizes deposits of all types
and provides full range of funded and non-funded financing facilities to
its customer. Similar strategics investment was made in 1997 to acquire
controlling interest in a leasing company which is the fifth largest
leasing company in Pakistan. It declared cash dividend of 12.5 per cent
for the year ended June 30, 2001.
Saudi Pak offers a wide range of financial products
and services to medium and large industrial projects both in the private
and public sectors. Over the years, it has enhanced the scope of its
product mix from project financing to equity investments, leasing,
underwriting, guarantees, money market operations, investments in TFCs
and consultancy and advisory services.
Saudi Pak financing is governed solely by commercial
considerations. It maintains rigorous standards of evaluation for
scrutiny of projects for financing and to identify sound and profitable
investment opportunities. Saudi Pak is professionally managed and is a
well-capitalized financial institution of Pakistan.
Saudi Pak's long term and short term entity rating
was assessed in the middle of 2001 by JCR-VIS Credit Rating Company
Limited. Long term entity rating was assessed to be AA+ (Double A Plus)
and short term rating at A1+ (A One Plus) with stable outlook.