eight countries, including the United States and
Belgium, for about $5 billion debt will be signed by September/October
2002," Secretary Economic Affairs Division (EAD) Dr Waqar Masood
He said a number of bilateral agreements had been
signed earlier for $12.5 billion debt rescheduled by the Paris Club for
35 years with a 15-year grace period.
"Out of $5 billion, $3 billion debt to be
rescheduled belongs to the United States alone," Dr Waqar said,
adding the EAD had worked out all the details to complete the job in
The government considered re-profiling of $12.5
billion debt a big achievement as nearly 50 per cent of this debt was
due for payment by 2007. There were also individual creditors who showed
their willingness to swap them for social sector funding for up to $1.5
According to the officials of the finance ministry,
the full extent of the relief will be measured once the government
completes all the agreements with the bilateral creditors. However,
based on rescheduling alone, a 30 per cent reduction has been achieved
in the net present value of the outstanding stock of debt.
With the addition of cancellation, debt swaps and
interest rate reduction, this figure is likely to increase to about 40
The government claims that over the past two and a
half years, it had lowered the burden of most expensive foreign debt
liabilities by nearly $2 billion from $38 billion to $36 billion as on
June 30 this year. This represents a reduction of nearly 5 per cent in
REMITTANCES RISE TO $307 MILLION IN JULY
Gross home remittances rose to $307.4 million in July
2002 up from $ 84.7 million in July 2001.
The amount includes cash flows; encashment of foreign
exchange bearer certificates and foreign currency bearer certificates;
Hajj remittances and remittances from Iraq-Kuwait war affectees.
The State Bank said in a statement on Monday that out
of the total $307.4 million remittances received in July $305.4 million
was sent back home by overseas Pakistanis working abroad. In July 2001
workers remittances totalled $84.7 million.
$10M LOAN ACCORD WITH WB SIGNED
The government and the World Bank on Wednesday signed
$10.08 million accord for the Global Environment Facility Trust Fund
Grant Agreement - Protected Areas management project.
To implement this project, Global Environment
Facility will provide a grant support of $10.08m, involving no liability
on the part of the government.
The project reflects government's commitment to
protect country's environment and it's continued efforts to protect
ecology, bio-diversity and wild habitats, which form a major national
asset. It aims to assist the government in achieving sustainable
conservation of globally and nationally significant habitats and species
through a series of integrated activities aimed at engaging custodial
communities in the management of protected areas.
FRESH GUIDELINES FOR LOANS WRITE-OFF
The State Bank has worked out new guidelines for
irrevocable loans and advances write-off and set three criteria for the
settlement of stuck-up loans now estimated at around Rs278 billion.
Top business leaders held a detailed meeting with the
governor of the State Bank and his deputy on Wednesday to discuss the
long pending issue of the stuck-up loans.
At the operating level, the company was able to post
profit of Rs194.7 million for the half year ended June 30, 2002,
compared with operating loss amounting to Rs485.3 million suffered in
the corresponding period of the previous year.
COCA COLA PLANS INVESTMENT
The Coca Cola Company has informed the government
about its plans to make substantial investment in Pakistan that could
generate around 12,000 direct and 45,000-90,000 indirect job
opportunities in five years.
A press release issued by the Ministry of Commerce
said that this was stated by Ahmet C. Bozer, the President of Coca Cola
Eurasia & Middle East Division, who called on Commerce Minister
Abdul Razak Dawood on Wednesday.
BIDDING FOR TCCL
The bidding for the sale of 90 per cent shares of
Thatta Cement Company Ltd (TCCL) will be held on September 7, 2002.
EFFECTIVE YIELD ON PIBS FALLS SHARPLY
The banks paid a very high premium on 10-year
Pakistan Investment Bonds on Tuesday, thus accepting a lower than fixed
yield: This indicates that their hopes of interest rate cut have not
The 10-year PIBs fetched a maximum premium of Rs8.86
on every Rs100 that lowered its effective yield to 9.60 per cent against
a fixed yield of 11 per cent per annum.
The SBP sold Rs7.955 billion worth of these PIBs on
premium to mop up Rs8.667 billion from the market. The auction of the
bonds had attracted total bids worth Rs23.96 billion face value of which
the SBP accepted Rs7.955 billion bids and scrapped the rest.
SHELL ANNOUNCES DIVIDEND
The Board of Directors of Shell Pakistan Limited (SPL)
has recommended a final dividend of Rs14 per share, which together with
the interim dividend of Rs4 per share declared on February 7, 2002,
makes for a total distribution of Rs18 per share for the financial year
ended June 30, 2002.
The overall profit after tax increased by one per
cent to Rs1.06 billion.