SBP foreign exchange adviser Zafar M. Shaikh said
this at a seminar held under the aegis of Pakistan Press Foundation.
He said the board of directors of the central bank
has allowed the management to initially employ $750 million into fully
secured bonds in the international market. But he would not say when
exactly the State Bank would do it.
He said the central bank had been in talks with
triple A rated international investment banks to outsource the job of
foreign exchange reserve employment.
Zafar Shaikh said the mandate to be given to the
selected bank would include cent per cent guarantee regarding
accessibility to the capital meaning that the country would be free to
encash the bonds prematurely if there arises a need.
He said Pakistan would also like to have repo
facility against placement of funds up to 95 per cent. That means that
if the country is in need of liquidity it can borrow in foreign currency
against the bonds for a certain period.
Zafar Shaikh said the third key condition for
outsourcing SBP reserves management is that the selected investment bank
would have to make transfer of professional know-how. The selected bank
would have to train SBP staff in reserve management techniques and
MUTUAL FUNDS CAPITALIZATION TOUCHES RS26BN
The total market capitalization of the mutual funds
sector shot up to Rs26 billion during the fiscal 2001-02, denoting an
increase of Rs2 billion in a single year, the Securities and Exchange
Commission of Pakistan stated on Wednesday.
Attributing the development to the initiatives taken
by the Commission to enhance the depth and institutional investments in
the country, the source said it was currently engaged in processing more
applications seeking permission to float new mutual funds and asset
SBP MOPS UP RS27.909BN
The State Bank on Wednesday moped up Rs27,909.555
million of Rs28,800 million face value from the sale of Government of
Pakistan Market Treasury Bills of six months maturity through primary
Bids for three months and 12 months have been
rejected by the central bank, the SBP announced. The cut-off yield for
six months maturity PMT bills has been accepted at 6.4373 per cent per
annum while the weighted average yield will be 6.3985 per cent per
The Oil and Gas Regulatory Authority (Ogra) has
increased the prescribed price of gas supplied by Sui Northern Gas
Pipelines Limited (SNGPL) by Rs7.13 per thousand cubic feet (MCF) or 6.5
per cent with effect from July 1, 2001.
Pakistan Telecommunication Company Limited (PTCL) has
successfully earned a net profit of over Rs19 billion in 2001-02 as
against Rs18 billion of 2000-2001.
ICI POSTS RS. 227M PROFIT
ICI Pakistan posted after tax profit at Rs227 million
for the six months ended June 30, 2002.
ORIX LEASING TFCS
The second tranche of Orix Leasing Pakistan Limited's
Term Finance Certificates (TFC) issue has been oversubscribed, the
registrars to the issue informed the stock exchange on Thursday.
Final figures forwarded by the bankers to the issue
showed that at the end of closing of issue on July 31, a total of 137
application had been received, the subscription value of which stood at
The Oil and Gas Regulatory Authority (Ogra) on
Tuesday reduced the prescribed price of Sui Southern Gas Company Limited
(SSGCL) by about 0.3 per cent or 32 paisa per thousand cubic feet (MCF)
with retrospect from July 1, 2001.
MCB LAUNCHES TFC FOR RS1.6BN
Muslim Commercial Bank Limited is launching the first
unsecured, subordinated Term Finance Certificate issue to date by a
commercial bank for Rs1,600 million.
The advisory and arrangement for this transaction has
been completed by a consortium comprising ABN AMRO N.V, Jahangir
Siddiqui & Co Ltd, and Global Securities Pakistan Limited.
A presentation was given to the Karachi Stock
Exchange on Monday which was positively received with demand to increase
the public issue portion, said a news release of MCB.
DAWOOD COTTON MILLS
Dawood Cotton Mills Limited of Karachi, makes a case
of considerable corporate interest. Its profitability as a giant
composite textile unit has been vulnerable.
The company, nonetheless, has proved its acumen in
making sound financial investment decisions, which is why in spite of
operating losses, the company has managed to post bottomline strongly in
the black — all due to 'non-operating income' earned from investments.
Few companies on the textile sector have disbursed as hefty dividends as
Dawood: 65 per cent cash for 2000 and 35 per cent for 2001.
The recently released report and accounts for the
three-quarters ended June 30, 2002 showed 'long-term investments' (at
cost) at staggering Rs236 million — the same as at that time last
year. These investments constituted nearly 35 per cent of the company's
total assets of Rs668 million and were worth Rs55 million more than the
book value of company's fixed assets of Rs181 million.