01 - 07, 2002
$200M PLEDGED FOR KARACHI PROJECTS
A group of overseas Pakistanis — Overseas
Investors Group (OIG) — have pledged an investment of SR750 million
($200 million) in various projects in Karachi. The OIG, a group of
Pakistanis living in Saudi Arabia, has recently signed memorandum of
understanding (MoU) with the Karachi local government in this regard.
The projects range from building a metro railway
system in Karachi to a new road transport project. Many other projects
to be implemented within the framework of the MoU include setting up
of waste water treatment facilities and recycling projects. These
projects are anticipated to generate over 40,000 employments.
Referring to the projects, OIG convener Rana Abdul
Rauf told a gathering in Riyadh, held to felicitate prominent
Pakistanis for their outstanding contributions in different fields,
that the Karachi local government had also approached investors in
different countries for these projects. The OIG is seeking help from
the Islamic Development Bank, Al-Awad Est; Bin Laden Group and the
Arab Banking Corporation for the execution of these projects in
OIG is already in discussion with a Swiss company
to acquire luxury buses to be operated in Karachi. The group is
expected to invest nine million Saudi riyals shortly in the project to
acquire and operate 50 new Japanese Hino-Pak luxury buses in Karachi.
The fleet will later be expanded in phases to cover 200 buses.
"We are also talking to Daewoo of South Korea,
which has expressed its desire to press into service 100 buses,"
the OIG convener was quoted in the press here as saying. There was
also a plan to set up workshops and other logistic facilities to
ensure smooth running of the project and simultaneously offer better
transportation facilities to the city dwellers.
LOW REVENUE NOT TO BLOCK TRANCHE: IMF
The executive board of the International Monetary
Fund is all set to approve on July 3 the next tranche of $109 million
for Pakistan despite having concerns on revenue shortfalls, says a
senior IMF official.
"The IMF board is meeting in Washington on
Wednesday to have the second review of the Pakistan's economy and
approve the third disbursement of approximately $109 million, out of
the $1.3 billion Poverty Reduction Growth Facility," Fund's
Senior Resident Representative in Pakistan Henri Chesquiere told.
Pakistan, he said, had requested for waiver on
revenue shortfalls which was a matter of concern.
EURO, STERLING MAKE SMART GAINS
The euro shot up to Rs59.30/Rs59.50 in the kerb
market on Wednesday up 100 paisa or more than 1.5 per cent from the
previous close of Rs58.30/Rs58.50 for spot buying and selling.
Forex Association of Pakistan president Malik
Bostan said the new rates mirrored the impressive gain that the euro
made against the US dollar in the international market on Wednesday.
The single European currency rose to 99 cents in
early trade for the first time since January 2000 up from 97 cents on
Tuesday as dollar nose-dived on report of a huge $3.8 billion hole in
the accounts of the US telecommunication giant Worldcom.
NWFP GETS RS4.29BN HYDEL PROFIT SHARE
Water and Power Development Authority (Wapda) has
released Rs4.29bn net hydel profit share of the NWFP bringing an end
to the financial woes of the provincial government, according to
The Rs4.29bn released to NWFP brought the total
amount received by the province during the current financial year on
account of net hydel profit share to Rs6bn — the capped share amount
the Frontier province has been receiving for the last ten years.
ALL SET FOR PARIS CLUB DEBTS RELIEF PACTS SIGNING
Pakistan has completed the re-profiling and the
minutes of draft agreements and reached the stage of signing the
bilateral agreements, separately, on interest rates with seven donor
countries for their cumulated debts of $5 billion under the third
Paris Club Rescheduling agreement out of the total $12.5 billion debts
owed to 18 club countries reached in last December, sources in
Economic Affairs Division told.
Javedan Cement Limited said that an extraordinary
general meeting had resolved to convert debts amounting to Rs472
million due to State Cement Corporation of Pakistan (SCCP) into
BOLAN BANK RATINGS UPGRADED
JCR-VIS Credit Rating Company Limited has revised
Bolan Bank Limited's 'outlook' ratings upwards from 'stable' to
The credit rating agency announced on Thursday that
it had maintained the bank's medium to long-term rating of BB+ (double
B Plus) and short-term rating of A-3 (A-Three).
JCR-VIS observed that the ratings primarily
recognized the strong sponsor support depicted by injection of capital
of Rs255.6 million and further willingness to inject another Rs250
million by January 1, 2003 to meet the State Bank of Pakistan's
minimum paid-up capital requirement for commercial banks.
Fazal Cloth Mills Limited proposes to raise Rs33
million from the issue of right shares at 30 per cent (three-for-10)
at a premium of Rs5 per share.
SITARA CHEMICAL TFCS GET RS224M
Sitara Chemical Industries Limited has received
Rs224 million against the offer of Rs105 million worth of Term Finance
Certificates (TFCs) to the public.