The flow of FDI during 2000-2001 were $322.4 million
while it rose to $484.7 million during the last financial year.
"This shows that foreign investors have started
reposing confidence in improving investment climate of Pakistan and
business-friendly policies of the government," says an official
announcement on Wednesday.
The leading sectors, which attracted sizable FDI
during the period 2001-2002 are oil & gas ($268.2 million), power
($36.4 million), trade ($34.2 million), transport ($21.4 million),
textiles ($18.4 million), electronics ($15.9 million) and information
technology & telecom ($12.7 million).
Major investing countries are the US ($326.4
million), UK ($30.3 million), UAE ($21.5 million), Germany ($11.2
million), Switzerland ($7 million) and Japan ($6.4 million).
The BOI is making extensive efforts for marketing the
investment potential and opportunities of Pakistan to the foreign
investors. During the year 2002-2003, the BOI is planning to hold
investment conferences in Middle East, the US, the European Union, China
It has chalked out an investment marketing plan and
will tap opportunities, which are now arising as a result of change in
the perception for Pakistan. The investor friendly measures taken in new
Budget and Trade Policy will bring a positive change and speed up the
revival of economic activity.
PAKISTAN'S RESERVES TOUCH $6.9B
Pakistan's foreign exchange reserves shot to an all
time high of $6.9 billion on the back of inflows from the International
Monetary Fund and the World Bank, a spokesman for the State Bank of
Pakistan (SBP) said.
Pakistan received the $115.3 million third tranche of
a $1.31 billion IMF loan under its poverty reduction plan, Syed
Wasimu-ddin, the spokesman, said.
The IMF approved the three-year loan in December to
keep afloat Pakistan's ailing economy, that had been hit hard because of
the U.S.-led war on terrorism in Afghanistan and a slowdown in the world
Last week, the World Bank also issued a $202.1
million grant to Pakistan for structural reforms, he said.
Of the reserves, $4.8 billion is held directly by the
SBP, while $2.1 billion is with commercial banks, he said.
WAPDA & KESC TO GET RS30BN
The government will extend Rs15 billion each to WAPDA
and KESC as part of the subsidy to help remove their losses.
The Economic Coordination Committee of the Cabinet (ECC)
which was presided over by Finance Minister Shaukat Aziz on Wednesday
was informed about the decision of the government to provide a total of
Rs30bn subsidy to both the state run organizations.
The meeting was further informed that the KESC's past
losses of around Rs93bn have been converted into government equities to
make it viable for privatization.
AHSL ANNOUNCES PROFIT
Arif Habib Securities Limited (AHSL) on Thursday,
reported record profit of Rs253.6 million for the financial year ended
June 30, 2002, which the company claimed represented the "highest
profit earned by a listed securities company in Pakistan".
T-BILLS RATE UNCHANGED
The State Bank on Wednesday left the six- month
treasury bills rate unchanged, reinforcing earlier signals that a
further easing in monetary policy is out of question — at least for
the time being.
The SBP sold Rs10.7 billion six-month T-bills at a
cut-off of 6.43 per cent keeping it intact at the previous level.
"By keeping the cut-off unchanged we have reinforced our earlier
signals that no immediate rate-cut is under review," said a SBP
official, who refused to be identified.
CRES GROUP ACQUIRES STRATEGIC STAKES
The Crescent group (Cres Group) on Monday purchased
strategic equity interest held by Pak-Libya Holdings Limited in First
Leasing Company and Paramount Leasing for Rs175 million, it is learnt
from reliable sources.
Both publicly traded companies — First Leasing
Limited and Paramount Leasing Limited — are already understood to be
in advanced talks for merger, which would create "First
Paramount". A week ago, Crescent Modaraba — another Cres group
company — had initiated its merger with Altowfeek Investment Bank to
form the "First Standard Investment Bank Limited".
42,341 CARS SOLD IN 2001-02
Automobile assemblers sold 42,341 motor cars during
the last fiscal year ending on June 30, 2002 as against 38,047 cars sold
Automobile buyers have been complaining of prolong
waiting period of the popular makes and new models of motor cars during
last several months. Automobile companies collected huge amounts as down
payments from the customers but had been delaying the delivery and
earning substantial profits on the deposits.
BUDGET IMPACT ON CONSUMER BANKING
How the budget 2002-03 is going to impact on
consumers banking is an important issue because people falling in the
middle income group make up a significant part of the retail clients of
the banks. Let us see how the bankers see it.
Says country corporate officer of Citibank in
Pakistan and the chairman of Pakistan Banks Association Zubyr Soomro:
"The major contribution of this budget from the consumers'
perspective is the introduction of the Universal Self-Assessment scheme
under which people will be responsible for their own tax
"Similarly for major corporates and other
substantial tax payers the setting up of large tax payers unit should
ensure senior and thus quality attention and recourse and therefore
build confidence," Soomro says in a statement.