For the half year ended June 30, 2002, American Life
Insurance Company (Alico) and the EFU life posted improved profit, while
losses at Commercial Union (CU) stood reduced, compared with the
corresponding period of the earlier year. Half term numbers of
Metropolitan Life were not readily available. Metropolitan — the
smallest of the four — nonetheless was the first in the sector to have
disbursed cash dividend. The company paid dividend last year at 5 per
cent to the minority shareholders "out of interest free loan by the
Alico, which had begun business from May 25, 1995,
reported profit of Rs22.4 million for the six months to end-June 2002,
up from Rs20.5 million for the similar period of last year. EFU Life
Assurance showed profit of Rs8.9 million, which was almost twice the
profit of Rs4.5 million earned during the first half of 2001. CU was
again in the red, but the loss for the latest half year amounted to
Rs10.1 million, down from loss of Rs32.9 million in the same time of
During the six months under review, underwriting
premium at EFU stood at Rs341.6 million, up from Rs233.4 million in the
same period of 2001. Included was renewal premium at Rs169.8 million,
that contributed the largest chunk; the figure last time was Rs117.2
million. Interest, return and dividend provided income of Rs71.3
million, compared with Rs42.6 million and the company also wrote back
Rs13.9 million reserve for depreciation on investment. Net claims
increased to Rs63.9 million, compared with Rs50.1 million.
WASHINGTON MAY WRITE OFF $1BN DEBT
The US government has indicated that it would write
off Pakistan's roughly $1 billion out of the total of $3 billion debt
which has just been rescheduled for 23 to 38 years.
According to informed sources, the Bush
administration has specified in the proposed US 2003 budget that roughly
$1 billion debt could be cancelled to help the President Musharraf
government to further improve its budgetary position.
"There is a strong possibility that the United
States government would cancel about $1 billion debt, and if that does
not happen, then half of our US debt is expected to be converted into
swap funds to alleviate poverty and allocate more funds for education
and health", a source said.
ASIAN BANK TO PROVIDE $2.4 BILLION
The Asian Development Bank has formulated a $2.4
billion Country Strategy and Programme (CSP) for Pakistan to support a
number of initiatives, including poverty alleviation, good governance
and targeted projects for women.
"We will be extending average $800 million
annually for ensuring good governance, agriculture, rural development,
energy development, transport, finance, health and education, and water
supply and sanitation in both urban and rural areas," said ADB
Country Director for Pakistan, Murshuk Ali Shah.
Speaking at a news conference on Monday, he said out
of $2.4 billion proposed assistance, 60 per cent had been earmarked
specifically for programmes that have a direct impact on poverty
reduction. In terms of projected allocations for the various sectors, 27
per cent is for the social sector, 22 per cent for governance and
finance, and 13 per cent for agriculture and rural development.
25 TFCS FLOATED IN TWO FISCAL YEARS
Around 25 issues of Term Finance Certificates (TFCs)
worth Rs15.74 billion were floated in the capital market during last two
fiscal years and more are expected in the current financial year,
according to latest data of Karachi Stock Exchange (KSE).
Total 39 issues of TFCs worth Rs22.09 billion have
been floated since 1995 that captures 5 per cent of the market
The leasing sector leads in issuance of TFCs with
28.4 per cent share, fuel & energy 21.5 per cent, chemical &
pharma 17.4 per cent, banks & investment companies 8.6 per cent,
synthetic & rayon 8.2 per cent, and textile 5.2 per cent.
SBP TEAM IN DUBAI
A three-member team of State Bank officials has left
for Dubai to explore the possibility of investing part of its foreign
exchange reserves in fixed income securities.
Bankers close to the SBP told that the team, headed
by deputy governor Tawfiq A. Husain, would meet senior fund managers
The fund managers would brief the delegation on how
gainfully Pakistan can invest in the world market some $750 million out
of its $7.3 billion liquid forex reserves.
DOLLAR DOWN 1.2 PER CENT
The US dollar shed 22 paisa against the rupee in the
inter-bank market. Senior bankers said the dollar closed at Rs 59.31/Rs
59.33 for ready buying and selling against the weekend close of Rs
59.53/ Rs 59.55.
OMAN TO INVEST
Oman would explore more investment opportunities in
various fields, particularly in petroleum, financial and industrial
sectors of Pakistan, to take benefit of the climate of restored
WB TO GIVE $20M LOAN
The government and the World Bank signed legal
documents for $20 million interest free loan the WB would offer to
support Community Infrastructure and Services Project in Azad Kashmir.
The PIA had earned a pre-tax profit of Rs552 million
during the first half of the current year. In the first quarter of the
year, PIA had earned a pre-tax profit of Rs.1.097, million but due to
slump in passenger traffic there was a loss during the second quarter,
Director Finance PIA informed the Board.