Union had first proposed in June this year, to take
over all 10 branches of Emirates Bank in Pakistan for $18 million. A
statement signed by the company secretary issued on Wednesday said:
"Governor SBP, vide his order dated 2nd September 2002 has approved
the Scheme of Amalgamation of Emirates Bank International PJSC Pakistan
branches into Union Bank Limited under Section 48 of the Banking
Companies Ordinance, 1962."
The Union Bank also released the condensed profit
& loss account and the balance sheet of Emirates Bank at June 30,
2002, which showed total assets of the bank at Rs 20.3 billion including
loans/advances of Rs7.4 billion. Total liabilities amounted to Rs18.7
billion with Rs11.6 billion held in deposits. The bank was noted to have
earned operating profit of Rs193.6 million, pre-tax profit of Rs80.6
million and after-tax profit of Rs47.6 million.
A significant item on the profit & loss account
was the "Ex- gratia payments to staff" of the substantial sum
of Rs332 million. A responsible bank official could not immediately be
reached to confirm whether the amount represented 'thank you bonus' or a
'golden handshake' to some or all of its employees. Just before the
proceedings for takeover began in June, Emirates was understood to have
514 employees on its rolls. Of those, 69 fell in the executive cadre,
285 comprised senior and junior officers and staff and the remaining 160
were contractual employees. At the end of June, Union Bank held Rs30
billion in total assets; Rs21 billion in deposits and Rs14 billion in
advances. The Bank has 32 branches in 17 cities and employees 858
PIA EYES RS100BN ANNUAL INCOME: 10-YEAR PLAN
The Pakistan International Airline plans to take its
annual income to Rs100 billion from the present Rs45 billion during the
next 10 years.
PIA Managing Director Ahmad Saeed said on Saturday
while talking to a group of businessmen that the national carrier had
chalked out a comprehensive 10-year plan in this regard. During the
period, three new Boeing 777 aircraft would be purchased and Fokkers
would be replaced with other modern aircraft.
The MD claimed that the PIA has already come out of
dire straits during the last 15 months; its Rs2.6 billion loss is
converted into Rs900 million profit that, according to him, was a big
achievement given the chequered past of the carrier.
LIVESTOCK SHORTAGE PUSHES MEAT PRICES UP
Beef prices have started crawling up in the local
market following a shortage of supply of livestock. The livestock supply
from across the border has come to a suspension since January this year,
because of the deployment of armies of Pakistan and India on the border.
Around 40-50 per cent of meat demand is met through
animals smuggled from India. "Even today the supplies of smuggled
livestock from border has been put on hold," claims meat retailers
while talking on Tuesday.
The Governor of the State Bank of Pakistan, Dr Ishrat
Hussain has suggested to the government to appoint central bank chief
for one term of five years period with no provision of renewal.
PROVINCES TO GET MORE IN NFC AWARD
The federal government has agreed, in principle, to
increase the revenue share of the provinces from 37.5 per cent to about
42 per cent in the new National Finance Commission (NFC) award.
Official sources told on Wednesday that certain
"benchmarks" have been agreed upon between the centre and the
provinces to increase the revenue share of the provinces.
NHA FACES CLAIMS OF RS35 BILLION
The National Highway Authority (NHA) is facing
litigation claims and penalties to the tune of Rs35.5 billion which if
not contested properly would have to be paid out of the national
When contacted, NHA Chairman Maj-Gen Furrukh Javed
confirmed that the authority was currently facing liabilities of Rs35.5
billion in the form of litigation claims.
Most of these claims remain about disputes over
contractual obligations, non-payment of dues to private construction
firms on time and other related issues.
AZERBAIJAN, PAKISTAN FORM BUSINESS COUNCIL
Pakistan and Azerbaijan on Tuesday signed a protocol
to enhance and strengthen the existing trade and economic relations
between the two countries after comprehensive deliberations at the 2nd
session of Joint Ministerial Commission.
Deputy Prime Minister of Azerbaijan, Yagub Eyyubov
and Minister for Privatization, Altaf M. Saleem signed the protocol on
behalf of their respective countries at a signing ceremony at
Secretary Economic Affairs Division, Dr. Waqar Masood
was also present at the signing ceremony.
The NWFP government wants of the Water and Power
Development Authority (Wapda) and Federal Government to resolve the
impending net hydel profit issue during the current financial year,
according to sources.
The provincial government had requested Islamabad to
help it resolve the contentious net hydel profit issue during the
current financial year as non-resolution of the impending issue had been
seriously distorting the provincial budget over the years in addition to
making difficult preparation and implementation of the NWFP budget.