03 - 09, 2002
WB TO GIVE $500M ON JUNE 12
The World Bank will disburse $500 million
Structural Adjustment Loan (SAC-2) to Pakistan on June 12 immediately
after its board meeting on June 11 in Washington, says a senior
official of the bank.
He told on Monday that another bank's board meeting
will be held in the first week of July to approve $100m budgetary
support for Sindh government and $90m similar support for NWFP.
The $500m SAC-2 is the biggest amount to be offered
to any country in one single shot at a marginal 0.75 per cent service
charges. It will be extended from the Bank's International Development
Assistance (IDA) window. Earlier, Pakistan had been offered $350m
SAC-1 for improving balance of payment support in 2001 which was also
a single tranche disbursement.
The official said that SAC-2 will be given for
carrying out structural reforms, financial management reforms, audit
and accounts reforms, education reforms and oil and gas sector
reforms. The money will also be available for poverty alleviation and
that it will basically cover the government's priorities contained in
the Interim-Poverty Reduction Strategy (I-PRSP).
He said that it was good to see that the government
was monitoring the implementation of the measures in the I-PRSP which
will help increase transparency and ensure scrupulous funding to
Sources in the multilateral agencies believed while
the World Bank, IMF and the ADB were extending all necessary financial
support, Pakistan will have to generate a surplus in the non-interest
current account of the balance of payments of nearly one billion
dollar annually over 2000-2004 or about 1.5 per cent of the GDP.
This will be in sharp contrast to average annual
resource deficits of $1.5 billion, about 3 per cent GDP, run in the
1990s and will require major export expansion as well substantial
import saving. In addition, the government should also mobilize at
least $3bn from privatization sales.
ICI TO MAKE FURTHER INVESTMENT IN PTA
ICI Pakistan Limited proposes to make further
investment in Pakistan PTA Limited by way of equity and provision of
guarantees for obligations of that company.
The notice of the extraordinary general meeting of
ICI Pakistan to be held on June 29, stated that the following
resolution would be passed as a special resolution: "Resolved
that the company do make of further investment in Pakistan PTA Limited
by subscribing to its proportionate share of the right shares proposed
to be offered by Pakistan PTA Limited at a discount and by providing
from time to time guarantees for the obligations and liabilities of
Pakistan PTA Limited up to a maximum aggregate sum at any one time of
Rs15.8 billion, which guarantees may be provided in substitution of or
by way of extension of any such guarantees already provided and or by
issuance of further or additional guarantees".
$ UP IN KERB, INTER-BANK MARKET
The US dollar gained 10 paisa in spot buying and
selling in the kerb market on Thursday on short supply. Forex
Association of Pakistan said the greenback closed at Rs60.40/ Rs60.50
against the previous close of Rs60.30/Rs60.40.
But dealers at major currency brokerages said the
dollar traded at Rs60.50/Rs60.60 for spot buying and selling
throughout the day.
In the inter-bank market also the dollar gained two
paisa more to close at Rs60.15/Rs60.17 for ready buying and selling on
the back of oil import and debt payments. Some bankers said they had
seen dollar trading even at Rs60.18.
IDBP SEEKS RS17BN
More than 40 years old Industrial Development Bank
of Pakistan (IDBP) is begging for a cash injection of over Rs17
billion to make it viable and operational by June-end next.
KESC CAPITAL RAISED TO RS100BN
At the extraordinary general meeting on Monday,
shareholders' in Karachi Electric Supply Corporation Limited (KESC)
approved the increase in authorized capital from Rs50 to Rs100 billion
and the conversion of loans totalling Rs65.3 billion into equity, a
statement released by the Corporation said.
BANKS COOL TOWARDS 3-MONTH T-BILLS
Most banks are reluctant to invest money in
three-month treasury bills after realizing that the State Bank wants
to keep interest rate stable.
The banks reluctance was evident on Wednesday
auction of T-bills in which only one out of seven primary dealers
submitted bids for three-month bills. (Primary dealers are the banks
that sell government securities in the market on behalf of the SBP.)
SLIC LIFE FUND RISES TO RS75BN
The life fund of the State Life Insurance
Corporation (SLIC) has increased from Rs70 billion to Rs75 billion
during the current financial year.
ADB OFFERS $100M TO SME BANK
The Asian Development Bank (ADB) will extend 100
million dollars to Small and Medium Enterprise (SME) Bank for
capacity-building and strengthening loaning to the SMEs in the
"The ADB has so far disbursed 20 million
dollars grant for SME Bank and the Small and Medium Enterprises
Authority (SMEDA) and now my Bank is hoping to shortly receive 100
million dollar to be essentially used for capacity building,"
said the President of SME Bank, Kaiser Naseem.
SHAHMURAD SUGAR MILLS
The company released on Tuesday the financial
figures for the half year ended March 31, 2002, posting an after tax
loss in the sum of Rs66.2 million. This replaced the after-tax profit
of Rs19.1 million earned in the corresponding half year of 2001.
GLAXO WELLCOME PAKISTAN
The recently released accounts for the quarter
ended March 31, 2002, shows that the company holds Rs2.6 billion in
total assets, which is close to its market capitalization of around
Rs2.4 billion on 33.6 million shares at the ruling price of Rs70 per