20 -June 02, 2002
FDI UP BY 19PC DURING 10 MONTHS
The Board of Investment on Saturday said the flow
of Foreign Direct Investment (FDI) during July-April 2001-2002, had
increased by 19 per cent as compared to the corresponding period last
During the last year from July-April, the FDI
inflow was $259 million while this year it rose to $307.6 million.
This shows that despite all odds the foreign investors have started
reposing confidence in Pakistan and business-friendly policies of the
The leading sectors, which attracted FDI during
this period are oil and gas sector (129.2 million dollars), power
(33.6 million dollars), trade (29.1 million dollars), electronics
(15.2 million dollars), transport (17.5 million dollars), financial
business (4.3 million dollars), and IT & telecom (9.9 million
The major investing countries are US (179.9 million
dollars), United Kingdom (24.1 million dollars), United Arab Emirates
(17.8 million dollars), Switzerland (6.8 million dollars), Germany
(9.4 million dollars) and Japan (4.8 million dollars).
"BOI is making extensive efforts for marketing
the investment potential and opportunities of Pakistan to the foreign
investors. It is expected that during the coming months with the
improvement of law and order situation, the FDI inflow will further
increase," said an official handout.
It further said that BOI has chalked out an
investment marketing plan and the opportunities will be fully taped
which are now arising as a gradual change in the perception of
Pakistan in positive direction.
Also BOI is launching a campaign to motivate
Overseas Pakistanis and to gear them up for strong, timely and
effective participation. The resource base of Pakistan and business
friendly investment policy provides a lot of opportunities to the
countries for investment seeking new markets.
DONORS PLEDGE RS40BN TO PROVINCES
The budget for 2002-03 will witness, for the first
time, Rs40 billion direct foreign funding to the provinces for which
the next Public Sector Development Programme (PSDP) is being
restricted to Rs90 billion only compared to Rs140 billion of the
current fiscal year.
The National Economic Council is meeting on June 1
under the chairmanship of President Pervez Musharraf to approve the
new development strategy along with the PSDP for 2002-03.
International donors have said that from now onward
they would be directly extending financial assistance to the provinces
for which the federal government should stand as guarantor. The
foreign aid to be offered to the provinces will not be reflected in
the federal budget.
GOLD HITS NEW PEAK OF RS6,232
Gold prices hit a new peak of the current year to
Rs6,232 per 10 grams on Tuesday followed by suspension of gold imports
in the wake of upward rally in gold prices in international markets.
In just two days, gold prices rose by Rs102 per 10
grams. The new price of 115,640 grams bar has touched Rs72,080, up by
over Rs4,000 in the last one week.
On Wednesday international gold prices ranged
between $319 and $320 grams per ounce. On May 13, it was priced at
$311 per ounce. In middle of April, global gold prices were $304-305
$ GAINS IN INTER-BANK, KERB MARKET
The US dollar that had fell below the crucial mark
of Rs60 in the inter-bank market on Tuesday made an instant recovery
Bankers said the greenback gained six paisa against
the rupee to close at Rs60.04/60.06 for ready buying and selling
against the previous close of Rs59.98/60.00. They said the dollar went
up on slight increase in demand from the importers.
"It seems that some importers panicked on
disturbing news still trickling in from Pakistan-India borders,"
said treasurer of a foreign bank. But a seasoned banker close to the
State Bank said the central bank had once again defended the dollar at
Rs60 to save the exporters from booking exchange rate losses.
In the kerb market the dollar gained 20 paisa to
finish at Rs60.65/60.75 for spot buying and selling against the
previous close of Rs60.45/60.55.
EU TO GIVE 165M EUROS AID TO ISLAMABAD
The European Commission promised on Tuesday 165
million euros in aid to Pakistan for the period 2002-2006, with
officials saying funds would focus on anti-poverty schemes and trade
A statement by the European Union executive in
Brussels said the money would be channelled into efforts to improve
the quality of basic education in Pakistan and increase enrolment in
schools. Good governance projects would also get attention.
PTA TO ISSUE RS1BN RIGHT SHARES
Pakistan PTA Limited told the stock exchange on
Monday that the company had received approval of the Securities and
Exchange Commission of Pakistan to issue one billion right shares at
discount of 40 per cent.
The company noted that the Board of Directors in
its meeting on April 29 had decided to raise Rs6 billion through the
issue of right shares at a discount, which discount was subject to the
approval of SECP and the company's shareholders.
ADBP RECOVERS RS22BN
The Agriculture Development Bank of Pakistan (ADBP)
has shown six per cent growth in the recovery of its loans during the
first 10 months of the current fiscal year as compared to the
corresponding period last year.
PAKISTAN LOSES $100 MILLION
Pakistan has been robbed of US$100 million, and
three claims totalling approximately US$970 million are pending with
the International Centre for Settlement of Investment Disputes (ICSID).
The situation is so grim that Pakistan's foreign
assets, including its reserves with the Reserve Bank of America, PIA's
fleet, ships of PNSC, and its embassies, are at risk of being
forfeited on the orders of the ICSID.