The giant new investment bank would hold more than
Rs2.5 billion in total assets and accommodate directors from both
companies on the new Board.
Tariq Aleem, director and company secretary,
Altowfeek Investment Bank, confirmed from Lahore on Monday that it was
indeed a merger between two different groups, with both agreeing to
share the control and management of the amalgamated new investment bank.
Prior to the proposed merger, 60 per cent
shareholding in Altowfeek was vested in AlBaraka Investment &
Development Co, Jeddah, 10 per cent was with NIT and 9 per cent with the
Islamic Development Bank, Jeddah. In the proposed amalgamated company
(The First Standard Investment Bank Limited), the management company of
First Crescent Modaraba — Crescent Business Management (Pvt) Limited,
which is a Crescent group unit — would hold 35 per cent shareholding
with three nominees on a seven member board of directors. AlBaraka
Investment would have 14 per cent stake and a claim to two seats on the
board. NIT's 10 per cent shareholding and one directorship would remain
unaltered while the IDB's stake would reduce to 4 per cent with one
nominee on the new investment bank's board.
Tariq Aleem admitted that the urge to merge had been
fuelled in part by the SBP's minimum capital requirement. According to
the quarterly reports ended March 2002, paid-up capital of the two
companies would add up to over Rs500 million (Crescent Modaraba: Rs226
million and Altowfeek: Rs310 million), but due to the staggering
accumulated losses of Rs275 million on the Altowfeek balance sheet, the
net equity of the merged bank would amount to around Rs380 million.
Aleem said that the new management would endeavour to bridge this gap to
come up to the minimum equity requirement.
KPT PLANS 5 PIPELINES FOR LIQUID PRODUCTS
Karachi Port Trust (KPT) has planned five pipelines
— three for chemicals and two for edible oil — to ensure efficient
liquid product transmittal until Oil Pier (OP-II) becomes capable of
handling 75,000 dead weight tonnage (dwt) vessels.
This was stated by KPT chairman Rear Admiral Ahmad
Hayat while inaugurating the eight inch diameter pipeline from cargo
berth no.1 which has been laid to facilitate smooth handling of
chemicals while OP-II is under construction. This was first of the five
pipelines planned by the KPT. The event was organized by the KPT and Al-Rahim
Trading Company on Monday.
He said KPT is sharing 50 per cent of the cost of
this arrangement with Terminal Association of Pakistan.
PSO, ARL SIGN MOU FOR RS10BN PIPELINE
Pakistan State Oil (PSO) and Attock Refinery Limited
(ARL) on Monday signed a memorandum of understanding (MoU) on the
Machike Taru Jabba Pipeline Project.
The MoU was signed by PSO Managing Director Tariq
Kirmani and Chief Executive Officer of ARL Raziuddin, on behalf of their
The project involves the construction, ownership and
operation of a 470-km long petroleum supply pipeline from Machike,
Sheikhupura, Lahore to Tarru Jabba near Peshawar at an estimated cost of
Rs10 billion, says a press release.
The pipeline will complete the missing section of the
cross country pipeline network and create a strategic backbone between
two major cities with feeder offshoots to all of the country's main
supply areas for petroleum products.
80,000 POLLING STATIONS
The Election Commission of Pakistan proposes to
substantially raise the number of polling stations for the Oct 10
general election to help voters.
According to official sources, the EC planned to set
up 80,000 polling stations instead of 34,000 set up for the 1997
PAKISTAN TO GET MORE US AID TO FIGHT TERRORISM
Mark D. Ward, new USAID mission director in Pakistan,
said on Wednesday that the agency's new project portfolio would be more
focused and would draw largely upon the local expertise.
"We would engage local expertise and Pakistani
accounting firms as far as possible to monitor programmes here," he
said at his first press briefing.
The mission, Mr Ward said, would help build capacity
to develop new legislators, who understood their responsibility to do
the best job.
RIVER DIVERSION DISALLOWED
Pakistan has refused to allow even a minor diversion
of Neelum River by India because that could jeopardize the development
of Rs87 billion Neelum-Jhelum power system in Azad Kashmir.
Informed sources told that New Delhi had requested
Islamabad to allow it diversion of Neelum waters in the held Kashmir for
power generation. It had assured that there would be no storage and the
diverted water would be re-routed into the Neelum through Wullar
DEBT STOCK TARGETED AT 90.5PC OF GDP
The government wants to bring down Pakistan's debt
stock to 90.5 per cent of the GDP in the current fiscal year from 94.5
per cent in the outgoing fiscal, the secretary general of Finance
Ministry Moeen Afzal said on Saturday.