The State Bank said in a statement that gross home
remittances stood at $699.85 million in July-August 2002, up from
$181.63 million in July-August 2001.
Gross home remittances include i.e. money sent back
home by overseas Pakistanis plus encashment of foreign exchange bearer
certificates and foreign currency bearer certificates; Haj remittances
and remittances from Iraq-Kuwait war victims.
The central bank said that in August 2002 gross
remittances rose to $286.07 million up from $87.91 million in August
The phenomenal rise in home remittances through
official channels can be attributed to the fact that the gap between the
official and open market exchange rates was almost negligible in
July-August: At times the US dollar was dearer in the kerb market. This
encouraged overseas Pakistanis to channelize their remittances through
Besides, the golden and silver cards scheme initiated
by the government for those sending money back home through official
channels also helped raise the remittances level.
Money changers say one of the reason for the
levelling out of official and kerb market exchange rates was that the
State Bank stopped dollar buying from money changers from July this
In fiscal July-June 2001-02 gross home remittances
totalled around $2.39 billion up from about $1.09 billion a year
TEN-YEAR FDI IMPROVES MARGINALLY
Pakistan's potential to attract foreign direct
investment (FDI) has improved marginally from 141 points in 1990 to 159
points in 2000, but its relative performance to secure FDI has reduced
significantly from six points to two points.
This was the gist of "World Investment Report
2002" of the United Nations Conference on Trade and Development (UNCTAD),
released by secretary, Board of Investment (BoI), Shuja Shah, on
The report revealed that FDI to Pakistan reduced from
$530 million in 1999 to $305 million in 2000 and improved to $385
million in 2001. As percentage of gross capital formation, the $530
million FDI was 6.7 per cent, which has reduced to 3.9 per cent in 2000.
PETROLEUM PRICES RAISED BY 34 PAISA
The Oil Companies Advisory Committee (OCAC) on
Thursday increased the prices of oil products by 20 to 34 paisa per
litre after putting on hold the price revision for four days.
The PSO and Shell also raised the price of diesel by
1.4 per cent, thus making a total increase of 3.5 per cent since Sept 1,
2002. The PSO's new diesel price is Rs19.76 per litre, up 28 paisa from
the previous rate of Rs19.48 per litre.
Shell has fixed the diesel price at Rs19.75, higher
by 28 paisa when compared with the just-revised price of Rs19.47.
Caltex has set the rate at Rs19.76 per litre, up 27
paisa from Rs19.49 per litre.
Kerosene will now carry new price of Rs18.61 per
litre as compared to Rs18.41 per litre, showing a rise of 20 paisa per
litre. Light diesel oil (LDO) price was increased by 28 paisa per litre
to Rs16.93 per litre.
PAKSAUDI FERTILIZER GOES TO FFC
The Privatization Commission on Thursday transferred
the remaining 10 per cent shares (6 million) of Paksaudi Fertilizer
Limited to the Consortium led by Fauji Fertilizer Company Limited at the
rate of Rs135.85 per share.
CUT IN MARKUP ON LMM FINANCING
The State Bank has reduced the markup rate from 11 to
10 per cent for the borrowers availing of part-A of Locally Manufactured
Machinery (LMM) scheme which relates to the local sales.
The State Bank's markup rate for providing refinance
to banks and development financial institutions against LMM has also
been reduced from 9 to 8 per cent.
SBP AGAIN SUCKS IN RS26.3BN
The State Bank on Wednesday had to suck in Rs26.3
billion from the inter-bank market against the target of Rs16 billion to
avoid reduction in cut-off yield on six-month treasury bills. On Monday
and Tuesday also the SBP had siphoned off Rs9.8 billion and Rs7.1
billion, respectively, through its open market operations from a highly
liquid inter-bank market.
The State Bank of Pakistan (SBP) is now working on
bank deposit insurance scheme to assure small depositors that their
funds are secure. The bulk of the bank deposits come from small savings.
Sources said that with the United Bank sell-off, more
than 50 per cent of the assets of the banking system would be in the
private sector as against well over 90 per cent in state sector in 1990.
The US dollar that held firm around Rs59.50 till last
month and around Rs59.30 by the weekend fell below the crucial level of
Rs59.20 in the inter-bank market on Tuesday.
SBP MOPS UP RS7.1BN THRU OMO
The State Bank on Tuesday started up to three-month
dollar/rupee swaps with the banks to suck in surplus rupee liquidity
from the inter-bank market.
Senior bankers said the central bank swapped $10-$15
million for rupees thereby mopping up Rs900 million to Rs1.2 billion
from a highly liquid inter-bank market.
JULY-AUG FDI RISES BY 43.3PC
Inflows of foreign direct investment (FDI) during
first two months of the current financial year amounted to $72.8
In July-August last year, the FDI stood at $50.8
million which means that the FDI flow during July-August 2002 is around
43.3 per cent higher than last year, figures compiled by the State Bank
showed. The government has projected a target to fetch $1 billion FDI
during the fiscal 2002-03.