08 - 14, 2002
IMF APPROVES $114 MILLION FOR PAKISTAN
The International Monetary Fund on Wednesday
approved $114 million tranche for Pakistan under the Poverty Reduction
Growth Facility (PRGF). The total disbursements under the programme
amounts to $343 million. The amount would be disbursed in the central
bank's account on July 22.
The Fund also completed the second review of
Pakistan's performance under a three-year, SDR 1.03 billion (about
US$$1.37 billion) PRGF arrangement.
In a press release, the IMF said in approving the
disbursement, its executive board granted a waiver of Pakistan's
non-observance of the quarterly revenue target for the period that
ended March 31, 2002. The shortfall in revenue essentially reflected
continued lower-than-expected imports in the aftermath of September
After the board meeting, Deputy Managing Director
and Acting Chairman of IMF, Eduardo Aninat, said that "forceful
implementation of the restructuring strategy for the two power
utilities, the Water and Power Development Authority and the Karachi
Electric Supply Corporation, is essential for putting an end to their
persistent drain on budgetary resources. Electricity tariff
adjustments are needed to correct past increases in input costs, while
appropriate safety-net measures should protect the poorest consumers.
"Moreover, both public utilities need to be
held more clearly accountable for their performance reducing leakage,
theft, administrative costs, and enforcing bill collections. The
implementation of the financial improvement plan for Wapda, agreed
with the World Bank, will be monitored closely and results reported to
the public. Regarding KESC, the challenge will be to complete the
required financial restructuring, while establishing sufficient
regulatory certainty for potential investors, in order to allow its
privatization in a transparent and timely manner. Sustained
implementation of the government's wide-ranging governance agenda will
help support private sector activity and investor confidence,"
NIT DECLARES DIVIDEND
National Investment Trust (NIT) announced payout of
Rs1,919 million in dividend at Rs1.20 per unit for financial year
ended June 30, 2002.
CD$447M DEBT SWAP FOR SOCIAL UPLIFT SOON
The Canadian government would shortly be approving
the conversion of Canadian dollar (CD)447 million debt into social
sector funding to help Pakistan, said Canada's Minister for
International Cooperation , Ms Susan Whelan, on Wednesday.
In addition, she said, her country would also
provide CD15.4 million for improving lives of Pakistani women and
provide quality basic education to Afghan refugee children in the
17 TFCS WORTH RS10BN ISSUED LAST FISCAL
As many as 17 Term Finance Certificates (TFCs)
worth Rs10 billion were issued during financial year 2002, taking the
total value of Pakistan's listed private debt (TFC) market to Rs19
Study prepared by Mohammed Sohail, head of research
at InvestCap shows that performance of primary TFC market in financial
year ended June 30, 2002, was the best so far, since 10 companies had
offered the debt instrument of Rs5.5 billion in FY01 while only four
TFCs of Rs1 billion were floated in financial year 2000.
Declining interest rates (6-month T-Bill rate came
down to 6 per cent), coupled with growing awareness was stated to have
made the TFC market attractive during FY02.
UNIT TRUSTS DECLARE PROFITS
The Pakistan Income Fund (PIF) and Pakistan Stock
Market Fund (PSM) — the two unit trust schemes launched by Arif
Habib Investments in March this year, announced distribution of
profits in the form of bonus units for unit holders on their books on
June 30, 2002, the company said in a press statement.
PIF had declared profit of Rs10.68 million for the
period and a bonus issue of 3.50 units for every 100 units held, which
translated into an annualised distribution of 11.66 per cent.
PSM declared profit of Rs9.22 million and bonus of
2.75 units for every 100 units held, reflecting annualised return of
8.94 per cent.
BANKS MAY SLASH LENDING RATES
The lowering of the profit on national saving
schemes by up to 2.5 per cent is going to push banks to cut their
lending rates in the first half of this fiscal year.
PAKISTAN STEEL PAYS RS2.28BN
Pakistan Steel on Monday made a payment of Rs2.28
billion to banks as second instalment due for fiscal 2001-02 against
restructured loans. The amount includes Rs945.8 million as an
instalment and Rs122.5 million as mark-up.
SBP TO CONTINUE SUPERVISING NBFIS
The State Bank said on Monday that non- bank
financial institutions (NBFIs) would continue to be regulated by it
till further orders.
"The NBFIs have been asked to continue sending
the periodical returns and other statements/information to SBP as per
existing instructions," SBP says in a press release. "The
date of transfer of supervisory functions of NBFIs from State Bank to
Securities and Exchange Commission of Pakistan will be announced
POL PRICES UP
The Oil Companies Advisory Committee (OCAC) on
Sunday revised upward the prices of six petroleum products, from a
minimum 40 to a maximum 75 paisa, while keeping the rate of only the
$ DOWN 6.25PC IN INTER-BANK, 9.8PC IN KERB
The US dollar fell by 6.25 per cent in inter- bank
market and 9.8 per cent in the open market in fiscal year July/June
2001/2002 that closed on Saturday.
The US dollar closed at Rs60.03/Rs60.05 for ready
buying and selling on June 29, 2002 down from Rs64.07/Rs 64.09 on June
30, 2001. In the open market it finished trading at Rs60.20/Rs60.25
for spot buying and selling down from Rs66.70/Rs66.80 at end- June