world economies, we are projecting to have $1 billion
FDI mainly from the USA and UK", said Chairman Board of Investment
(BoI), Wasim Haqqie.
Talking on Saturday, he also said that final figures
showed that FDI worth $375 million was received during 2001-02 compared
to $322 million of 2000-01. "So there is an increase of about 18
per cent which is not bad despite unfavourable circumstances and events
of September last year", he added.
Giving the details, he said that FDI mainly came in
oil & gas, power, Information Technology (IT), transport and
communication sectors. "Out of $375 million, $200 million FDI was
received from the United States", Haqqie said.
He said Pakistan had attracted a total of $5.9
billion foreign investment during the last 13 years which mainly
included 40 per cent from the US and 22 per cent from the UK. He said
that efforts were also being made to attract domestic investment which
in fact would eventually lead to more foreign investment in the country.
When asked how was the government luring foreign
investors, he said that basically the existing multinationals and
overseas Pakistanis were being given much importance for increased
investment during the current financial year.
He said about 500 overseas Pakistanis have been
approached by the BoI for making new investment in the country. They
also included prominent overseas Pakistanis and 25 honorary counsel
generals in 19 countries.
EGYPTIAN COS TO INVEST $1BN IN PAKISTAN
Egyptian companies have so far invested $300 million
in Pakistan, whereas many companies are considering investing about $1
billion more in various sectors, Ambassador of Egypt Dr Mahmoud El Said
stated on Wednesday.
Talking to newsmen at a farewell reception, hosted
for him by secretary general of Islamic Chamber of Commerce and Industry
at a local hotel, the Egyptian envoy said that an Egyptian company was
the first, that submitted letter of interest for privatization of
Pakistan Telecommunication Company Ltd (PTCL).
"We hope to bring more investment in telecom and
oil exploration sectors," he said, adding by the end of this year,
more Egyptian companies would invest in Pakistan.
$452M BONDS ENCASHED IN 2001-02
The volume of the special US dollar bonds in
circulation shrank by $452 million in the outgoing fiscal year. Senior
bankers say the outstanding amount of bonds fell to $924 million at
end-June 2002 from $1.376 billion at end-June 2001.
The $452 million worth of bonds encashed in the
fiscal year 2001/02 include three-year, five-year and seven-year bonds
but bankers say the maturity wise breakup of the encashed bonds is not
Bankers say the pace of encashment of dollar bonds
picked up since October last year in the wake of the developments taking
place after 9/11. They say that people started making faster encashment
of these bonds also because of falling LIBOR (London inter-bank offered
rates) as the rates of profit on these bonds are linked with LIBOR.
BANKS BORROW RS31.5BN FROM SBP
Banks had to make an overnight borrowing of Rs31.5
billion from the State Bank on Thursday to make up for the shortfall in
the liquidity level.
Bankers said the liquidity level declined after the
State Bank siphoned off Rs66 billion from the system through auction of
treasury bills held on Wednesday.
BANKS TO DECIDE RATE OF RETURN ON FCY DEPOSITS
The State Bank has allowed all the banks and non-bank
financial institutions (NBFIs) to offer as much rate of return on
foreign currency deposits as they deem fit.
Earlier the banks were supposed to ensure that the
return on foreign currency deposits do not exceed LIBOR (London
Inter-bank offered rate).
The central bank has notified its decision to all the
banks and NBFIs through a circular BPD no 17.
RUPEE GAINS EIGHT PAISA
The rupee gained eight paisa in the inter-bank market
on Wednesday as the dollar buying spree for corporate debt payments was
over. Senior bankers said the rupee closed at 60.04/60.06 to a US dollar
for ready buying and selling against the previous close of 60.12/60.14.
SME BANK RECOVERS RS4.5BN
The SME Bank has made total recoveries of Rs4.5
billion over the past 28 months, says a press release issued on Tuesday.
The bank, which commenced operations in January this year, now has a
total new loan portfolio of Rs 665 million to more than 700 enterprises
in 20 business sectors, it said. An amount of Rs136 million has been
disbursed through leasing.
The Privatization Commission has received $158
million on account of disinvesting five oilfields, and formally handed
them over on Monday to the buyers.
Out of 7 oilfields, which have been privatized, the
oilfields for which the amount received are: Badin 1, Badin 11, Turkwal,
Dhurnal and Ratana.
DISCOUNTING FALLS SHARPLY IN JUNE
Banks resorted to much lesser discounting last month
as the liquidity crisis that had hit them in May in the wake of growing
tension on Pakistan-India borders eased off.
The term discounting refers to the banks borrowing
from the central bank for upto three days against government securities
at a fixed interest rate called the SBP discount rate or repo rate.
Sources close to the State Bank told that the banks
had to make overnight borrowing of only about Rs25 billion in June down
from more than Rs130 billion in May.